REPORTING FIRST QUARTER 2022 EARNINGS

Tuesday, April 26, 2022

On April 26, 2022, we reported our first quarter 2022 results.

"We delivered strong top-line results in our first quarter, driven by higher pricing and strong volume growth. Our chocolate and biscuit businesses continue to power our virtuous cycle of attractive revenue growth, strong profitability and robust cash flow," said Dirk Van de Put, Chairman and Chief Executive Officer. "Demand remains strong across both developed and emerging markets, with all our regions posting growth. We expect elevated levels of input cost inflation to continue through the remainder of the year, and we will continue to take necessary actions to offset this dynamic - including a broader revenue growth management agenda, ongoing cost discipline, and further simplification within our business. We remain confident in our strategy and ability to create long-term value, while recognizing the need to stay agile to navigate the dynamic economic and geopolitical environment. We are also excited about our recently announced agreement to acquire Ricolino that will step-change our presence in the priority market of Mexico -- adding to our portfolio some of the country's most beloved chocolate and candy brands, while broadening our distribution footprint with more than 2,100 direct store delivery routes reaching 440,000 traditional trade outlets."

First quarter highlights:

• Net revenues increased +7.3% driven by Organic Net Revenue¹ growth of +8.6%
• Diluted EPS was $0.61, down -10.3%; Adjusted EPS¹ was $0.84, up +13.9% on a constant-currency basis
• Cash provided by operating activities was $1.1 billion, an increase of +$0.2 billion versus prior year; Free Cash Flow¹ was $1.0 billion, +$0.3 billion
• Return of capital to shareholders was $1.2 billion
• Announced agreement to acquire Ricolino, Mexico's leading confectionery company with iconic brands and strong distribution capabilities, doubling the size of our Mexico business
• Appointed Mariano Lozano to the role of EVP and President, Latin America

For more information, see our press release here.

1. Organic Net Revenue, Adjusted Gross Profit (and Adjusted Gross Profit margin), Adjusted Operating Income (and Adjusted Operating Income margin), Adjusted EPS, Free Cash Flow and presentation of amounts in constant currency are non-GAAP financial measures. Please see discussion of non-GAAP financial measures at the end of the press release for more information.