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Chief Executive Officer
2
3
4
10%
Salty Snacks %
of 2023 Revenue
2019 - 2023
2019 - 2023
$1.4B
Capex
+25%
Capacity
+7.6%
Net Sales CAGR
+9pts
Segment
Margin Chg.
+5.7%
Net Sales
CAGR
2019 - 2023
Source: Company Financials and Information. 5
$3.1B $2.4B $715M $710M $580M $500M $390M $385M $360M $340M
Source: 1. Circana Calendar Year w/e 12/31/23. 2. Circana 5-Year CAGR from 01/06/19 to 12/31/23. 6
2023 Retail Sales1
5-Year CAGR2:
7
8
Enhanced Integration
and Visibility
Greater Automation
Embedding Tech
Teams into Operations
Augmenting with
Artificial Intelligence
Our New Digital Infrastructure and CTO
Chief Technology
Officer
9
Increase innovation
Expand media reach
Optimize price points
Improve market share
Reimagine innovation
Deploy holistic commercial
investment model
Enhance price ladders
and pack architecture
Grow snacking leadership
10
U.S. CMG Leadership
Salty Snacks Scale
Profitable International
Growth
M&A for Incrementality
11
Competitive
Cost Structure
ERP Upgrade
Automation & Digital
Connectivity Across Org.
12
Innovation and
Research & Development
Holistic Commercial
Management
Business and
Workforce Planning
13
Less waste and
increased traceability
Optimized scheduling
and maintenance to increase
efficiency and unlock capacity
Robotics to improve safety,
productivity, and staffing
14
Optimized Workforce Planning
Enhanced Total Rewards
Dynamic Pay Equity Adjustments
Real Time Continuous Learning
15
16
17
20092010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
‘09 ‘23
CAGR
Expandable
Consumption
High
Frequency
Impulsive
18
Source: Euromonitor Retail Sales Value 2009-23.
Crackers Snack
Nuts
Pudding Popcorn Snack
Bars
Fruit
Snacks
Other
Snacks
Bakery
Snacks
Cookies CMG
19
Source: 1: Circana MULO+C L52 w/e 01/28/24.
20
North America Confectionery
~30%
more lbs vs. 20181
~40%
higher vs. 20231
21
Source: 1: Company Financials and Information.
Queuing Solutions
to Increase
Engagement
and Conversion
Gold Standard
Planogram
Implemented at
>85% of retailers
71% Household
Participation1
Enhancing the
Experience Online
and at Pickup
Source: Company Financials and Information. 1. National Retail Federation, 2022, Average % of US consumer planned participation in seasons. 22
North America Confectionery
Hard Novelty Chewy Rope Gummy
by
Supporting a record year of innovation
New
Forms
New
Flavors
New
Partnerships
New
Campaigns
23
Source: 1. Company Financials and Information, capacity in lbs. 2: Circana, 3-Year CAGR w/e 10/29/23.
North America Confectionery
24
North America Confectionery
26
RTE Popcorn Pretzels Total Snacking Edibles
5-Year CAGR1
in RTE Popcorn2 in Pretzels2
+12.5%
5-Yr Retail Sales CAGR1
+65.4%
5-Yr Retail Sales CAGR1
27
Source: 1. Circana, Retail Sales 5-Year CAGR from 01/06/19 to 12/31/23. 2. Circana, Dollar Share Calendar Year w/e 12/31/23.
28
Source: Circana, Calendar Year w/e 12/31/23, Notes: Ranked versus top 20 brands, Velocity is retail sales value (RSV) divided by total distribution points (TDPs).
North America Salty Snacks
SkinnyPop
29
30
Source: Circana, Calendar Year w/e 12/31/23.
2020 2023 2026E
Ambition 2020 2023 Ambition
North America Salty Snacks
2019 2024E
Marketing Investment
% of Net Sales1
Campaign (sent in
email?) should be
main focus
Partnerships
secondary focus for
Michele
31
Source: 1: Company Financials and Information
North America Salty Snacks
32
North America Salty Snacks
Maximize display velocities
with even more scale brands
33
North America Salty Snacks
34
35
Source: 1. Euromonitor, Nominal RSV. 2. Company Financials and Information.
India Brazil Mexico W. Europe
Chocolate Category Retail Value Growth1
2013 – 23 2023 – 26E
’19-’23 CAGR2
’19-’23 CAGR2
36
International
Fastest growing brand in the
UK for 3 straight years
Increase distribution and
merchandizing behind relevant
consumer occasions
Selective regional expansion
to other markets
37
International
Distribution expansion
in India and Brazil
New occasions with innovation
Locally relevant media
38
International
New marketing campaign
Distribution expansion
Value pack opportunities
39
40
To Accelerate Growth
41
Net Sales Growth Adj. EPS Growth
42
Chief Financial Officer
43
44
Source: 1. Company Financials and Information 2014-23. 2: Bloomberg Finance L.P, Free Cash Flow defined as CFO minus Capex. 3: Bloomberg Finance L.P. Annualized 10-Year TSR.
See appendix for GAAP/Non-GAAP reconciliations.
•
•
•
•
•
•
•
45
46
Source: Company Financials and Information.
Within Target
Range
2021 2022 2023 2024E 2025E Long term
Core confection capacity
Snacking scale
and optimization
Supply Chain resilience
& technology
Source: Company Financials and Information. 47
Harmonized business processes
End-to-end supply chain visibility
Faster M&A integration
AI- and automation-enabled data strategies
Enhanced collaboration with suppliers and customers
Support for new and emerging commercial strategies
48
49
Digitize and automate
Optimize procurement
and manufacturing
Capture capability synergies
across segments
Accelerate capability investments
in innovation, R&D, and planning
Increase organizational effectiveness
2024E Run Rate 2026+
Supply Chain
SG&A
Source: Company Financials and Information.
50
Adjusted Earnings Per Share Growth
Reported Net Sales Growth
Reported Earnings Per Share Growth
Organic, Constant Currency Net Sales Growth
Reconciliation of GAAP and Non-GAAP Information
For the year ended December 31, 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Components of Net Sales Growth
Percentage Change as Reported 3.9% -0.5% 0.7% 1.0% 3.7% 2.5% 2.0% 10.1% 16.1% 7.2%
Impact of Foreign Currency Exchange -0.7% -1.6% -0.7% 0.2% -0.2% -0.3% -0.5% 0.4% -0.2% 0.2%
Impact of Acquisitions/Divestitures 0.8% 1.0% 0.6% 0.3% 3.6% 1.0% 0.5% 1.0% 4.3% 0.0%
Percentage Change on Organic Constant Currency Basis 3.9% 0.1% 0.8% 0.5% 0.3% 1.8% 2.0% 8.7% 12.0% 7.0%
52
Year-ending: December 31, 2023
In Millions of Dollars Except Per
Share Amounts
Gross Profit Operating Profit
Interest-
Expense, Net
Net Income
Income
Per Share-
Diluted
GAAP results $ 4,997.8 $2,560.9 $151.8 $1,861.8 $9.06
Adjustments:
Derivative mark-to-market losses 58.9 58.9 - 48.7 0.29
Business realignment activities 0.5 3.4 - 2.7 0.01
Acquisition and integration-related activities (1.7) 75.9 - 57.6 0.37
Other miscellaneous losses - - - - -
Tax effect of all adjustments reflected above - - - - (0.14)
Non-GAAP results $5,055.5 $2,699.1 $151.8 $1,970.8 $9.59
53
In Millions of Dollars Except Per
Share Amounts
Gross Profit Operating Profit
Interest-
Expense, Net
Net Income
Income
Per Share-
Diluted
GAAP results $ 4,498.8 $ 2,260.8 $ 137.6 $ 1,644.8 $ 7.96
Adjustments:
Derivative mark-to-market losses 78.8 78.2 - 64.7 0.38
Business realignment activities - 4.4 - 3.3 0.02
Acquisition and integration-related activities 4.0 48.5 - 37.0 0.24
Other miscellaneous losses - 13.6 - 10.3 0.07
Tax effect of all adjustments reflected above - - - - (0.15)
Non-GAAP results $ 4,581.6 $ 2,405.4 $ 137.6 $ 1,760.1 $ 8.52
Year-ending: December 31, 2022
54
In Millions of Dollars Except Per
Share Amounts
Gross Profit Operating Profit
Interest-
Expense, Net
Net Income
Income
Per Share-
Diluted
GAAP results $ 4,048.6 $ 2,043.7 $ 127.4 $ 1,477.5 $ 7.11
Adjustments:
Derivative mark-to-market gains (24.4) (24.4) - (15.2) (0.12)
Business realignment activities 5.2 16.6 - 13.5 0.09
Acquisition and integration-related activities 2.7 33.1 - 25.5 0.16
Noncontrolling interest share of business realignment
and impairment charges
- - - 5.3 0.03
Other miscellaneous benefits - (15.2) - (13.7) (0.07)
Tax effect of all adjustments reflected above - - - - (0.01)
Non-GAAP results $ 4,032.1 $ 2,053.9 $ 127.4 $ 1,492.8 $ 7.19
Year-ending: December 31, 2021
55
In Millions of Dollars Except Per
Share Amounts
Gross Profit Operating Profit
Interest-
Expense, Net
Net Income
Income
Per Share-
Diluted
GAAP results $ 3,701.3 $ 1,782.7 $ 149.4 $ 1,278.7 $ 6.11
Adjustments:
Derivative mark-to-market losses 6.4 6.4 - 5.1 0.03
Business realignment activities 2.2 31.5 - 24.0 0.15
Acquisition-related costs - 3.6 - 2.8 0.03
Pension settlement charges relating to Company-
directed initiatives
- - - 2.6 0.02
Long-lived asset impairment charges - 9.1 - 8.8 0.04
Noncontrolling interest share of business realignment
and impairment charges
- - - (3.4) (0.02)
Other miscellaneous benefits - (3.2) - (2.4) (0.01)
Tax effect of all adjustments reflected above - - - - (0.06)
Non-GAAP results $ 3,709.9 $ 1,830.2 $ 149.4 $ 1,316.2 $ 6.29
Year-ending: December 31, 2020
56
In Millions of Dollars Except Per
Share Amounts
Gross Profit Operating Profit
Interest-
Expense, Net
Net Income
Income
Per Share-
Diluted
GAAP results $ 3,622.5 $ 1,596.0 $ 144.1 $ 1,149.7 $ 5.46
Adjustments:
Derivative mark-to-market gains (28.7) (28.7) (25.2) (0.14)
Business realignment activities - 9.2 7.3 0.04
Acquisition-related costs 2.0 10.2 7.7 0.05
Pension settlement charges relating to Company-
directed initiatives
1.8 0.01
Long-lived and intangible asset impairment charges 112.5 88.5 0.53
Noncontrolling interest share of business realignment
and impairment charges
(2.8) (0.01)
Gain on sale of other assets (11.3) (8.5) (0.05)
Tax effect of all adjustments reflected above (0.11)
Non-GAAP results $ 3,595.8 $ 1,687.9 $ 144.1 $ 1,218.4 $ 5.78
Year-ending: December 31, 2019
57
In Millions of Dollars Except Per
Share Amounts
Gross Profit Operating Profit
Interest-
Expense, Net
Net Income
Income
Per Share-
Diluted
GAAP results $ 3,575.3 $ 1,623.7 $ 138.8 $ 1,177.6 $ 5.58
Adjustments:
Derivative mark-to-market gains (168.3) (168.3) - (152.5) (0.80)
Business realignment activities 11.3 51.8 - 38.9 0.25
Acquisition-related costs 6.2 44.8 - 35.7 0.21
Pension settlement charges
relating to Company-directed initiatives
- - - 4.1 0.03
Long-lived and intangible asset impairment charges - 57.7 - 41.9 0.27
Impact of U.S. tax reform - - - (7.8) -
Noncontrolling interest share of business realignment
and impairment charges
- - - (6.3) (0.03)
Gain on sale of licensing rights - (2.7) - (1.5) (0.01)
Tax effect of all adjustments reflected above - - - - (0.14)
Non-GAAP results $ 3,424.6 $ 1,607.1 $ 138.8 $ 1,130.1 $ 5.36
Year-ending: December 31, 2018
58
In Millions of Dollars Except Per
Share Amounts
Gross Profit Operating Profit
Interest-
Expense, Net
Net Income
Income
Per Share-
Diluted
GAAP results $ 3,455.4 $ 1,313.4 $ 98.3 $ 783.0 $ 3.66
Adjustments:
Derivative mark-to-market gains (35.3) (35.3) (30.5) (0.16)
Business realignment activities 5.1 69.4 51.0 0.33
Acquisition-related costs 0.3 0.2
Pension settlement charges relating to Company-
directed initiatives
6.8 0.05
Long-lived and intangible asset impairment charges 208.7 185.4 0.98
Impact of U.S. tax reform 32.5
Noncontrolling interest share of business realignment
and impairment charges
(26.8) (0.13)
Tax effect of all adjustments reflected above (0.04)
Non-GAAP results $ 3,425.2 $ 1,556.5 $ 98.3 $ 1,001.5 $ 4.69
Year-ending: December 31, 2017
59
Year-ending: December 31, 2016
In Millions of Dollars Except Per
Share Amounts
Gross Profit Operating Profit
Interest-
Expense, Net
Net Income
Income
Per Share-
Diluted
GAAP results $ 3,169.5 $1,255.2 $90.1 $720.0 $3.34
Adjustments:
Derivative mark-to-market gains 163.2 142.7 0.76
Acquisition and integration costs 6.5 4.0 0.03
Business realignment activities 93.9 79.9
Pension settlement charges relating to Company-
directed initiatives
8.5 0.06
Goodwill and other intangible asset impairment 4.2 3.0 0.02
Settlement of Shanghai Golden Monkey Liability (26.7)
Tax effect of all adjustments reflected above
Non-GAAP results $ 3,390.9 $1,523.0 $90.1 $931.6
60
Year-ending: December 31, 2015
In Millions of Dollars Except Per
Share Amounts
Gross Profit Operating Profit
Interest-
Expense, Net
Net Income
Income
Per Share-
Diluted
GAAP results $ 3,386.6 $1,075.8 $105.8 $513.0 $2.32
Adjustments:
Acquisition and integration costs 20.9 14.2 0.05
Business realignment activities 110.8 73.0
Pension settlement charges relating to Company-
directed initiatives
6.3 0.03
Goodwill and other intangible asset impairment 280.8 1.28
Loss on early extinguishment of debt 17.6
Gain on sale of trademark
Non-GAAP results $3,402.7 $1,488.3 $135.7 $898.6
61
Year-ending: December 31, 2014
In Millions of Dollars Except Per
Share Amounts
Gross Profit Operating Profit
Interest-
Expense, Net
Net Income
Income
Per Share-
Diluted
GAAP results $ 3,336.2 $1,392.3 $(83.5) $846.9 $3.77
Adjustments:
Acquisition and integration costs 14.9 10.3 0.05
Business realignment, including PNC 12.0
NSRPE(1) (1.3) (0.01)
India impairment 14.3 0.06
Loss on anticipated Mauna Loa divestiture 17.4
Non-GAAP results $3,335.1 $1,455.5 $(85.1) $895.9
62
Year-ending: December 31, 2013
In Millions of Dollars Except Per
Share Amounts
Gross Profit Operating Profit
Interest-
Expense, Net
Net Income
Income
Per Share-
Diluted
GAAP results $ 3,280.8 $1,338.1 $(88.4) $820.5 $3.61
Adjustments:
Acquisition and integration costs 4.0 5.4 0.03
Business realignment, including PNC 19.1
NSRPE(1) 6.6 0.03
Non-GAAP results $3,286.9 $1,372.1 $(88.4) $844.3
63

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Hershey Presentation at 2024 CAGY Conference

  • 1.
  • 3. 3
  • 4. 4
  • 5. 10% Salty Snacks % of 2023 Revenue 2019 - 2023 2019 - 2023 $1.4B Capex +25% Capacity +7.6% Net Sales CAGR +9pts Segment Margin Chg. +5.7% Net Sales CAGR 2019 - 2023 Source: Company Financials and Information. 5
  • 6. $3.1B $2.4B $715M $710M $580M $500M $390M $385M $360M $340M Source: 1. Circana Calendar Year w/e 12/31/23. 2. Circana 5-Year CAGR from 01/06/19 to 12/31/23. 6 2023 Retail Sales1 5-Year CAGR2:
  • 7. 7
  • 8. 8
  • 9. Enhanced Integration and Visibility Greater Automation Embedding Tech Teams into Operations Augmenting with Artificial Intelligence Our New Digital Infrastructure and CTO Chief Technology Officer 9
  • 10. Increase innovation Expand media reach Optimize price points Improve market share Reimagine innovation Deploy holistic commercial investment model Enhance price ladders and pack architecture Grow snacking leadership 10
  • 11. U.S. CMG Leadership Salty Snacks Scale Profitable International Growth M&A for Incrementality 11
  • 12. Competitive Cost Structure ERP Upgrade Automation & Digital Connectivity Across Org. 12
  • 13. Innovation and Research & Development Holistic Commercial Management Business and Workforce Planning 13
  • 14. Less waste and increased traceability Optimized scheduling and maintenance to increase efficiency and unlock capacity Robotics to improve safety, productivity, and staffing 14
  • 15. Optimized Workforce Planning Enhanced Total Rewards Dynamic Pay Equity Adjustments Real Time Continuous Learning 15
  • 16. 16
  • 17. 17
  • 18. 20092010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 ‘09 ‘23 CAGR Expandable Consumption High Frequency Impulsive 18 Source: Euromonitor Retail Sales Value 2009-23.
  • 19. Crackers Snack Nuts Pudding Popcorn Snack Bars Fruit Snacks Other Snacks Bakery Snacks Cookies CMG 19 Source: 1: Circana MULO+C L52 w/e 01/28/24.
  • 20. 20
  • 21. North America Confectionery ~30% more lbs vs. 20181 ~40% higher vs. 20231 21 Source: 1: Company Financials and Information.
  • 22. Queuing Solutions to Increase Engagement and Conversion Gold Standard Planogram Implemented at >85% of retailers 71% Household Participation1 Enhancing the Experience Online and at Pickup Source: Company Financials and Information. 1. National Retail Federation, 2022, Average % of US consumer planned participation in seasons. 22 North America Confectionery
  • 23. Hard Novelty Chewy Rope Gummy by Supporting a record year of innovation New Forms New Flavors New Partnerships New Campaigns 23 Source: 1. Company Financials and Information, capacity in lbs. 2: Circana, 3-Year CAGR w/e 10/29/23. North America Confectionery
  • 25.
  • 26. 26
  • 27. RTE Popcorn Pretzels Total Snacking Edibles 5-Year CAGR1 in RTE Popcorn2 in Pretzels2 +12.5% 5-Yr Retail Sales CAGR1 +65.4% 5-Yr Retail Sales CAGR1 27 Source: 1. Circana, Retail Sales 5-Year CAGR from 01/06/19 to 12/31/23. 2. Circana, Dollar Share Calendar Year w/e 12/31/23.
  • 28. 28
  • 29. Source: Circana, Calendar Year w/e 12/31/23, Notes: Ranked versus top 20 brands, Velocity is retail sales value (RSV) divided by total distribution points (TDPs). North America Salty Snacks SkinnyPop 29
  • 30. 30 Source: Circana, Calendar Year w/e 12/31/23. 2020 2023 2026E Ambition 2020 2023 Ambition North America Salty Snacks
  • 31. 2019 2024E Marketing Investment % of Net Sales1 Campaign (sent in email?) should be main focus Partnerships secondary focus for Michele 31 Source: 1: Company Financials and Information North America Salty Snacks
  • 33. Maximize display velocities with even more scale brands 33 North America Salty Snacks
  • 34. 34
  • 35. 35 Source: 1. Euromonitor, Nominal RSV. 2. Company Financials and Information. India Brazil Mexico W. Europe Chocolate Category Retail Value Growth1 2013 – 23 2023 – 26E ’19-’23 CAGR2 ’19-’23 CAGR2
  • 36. 36
  • 37. International Fastest growing brand in the UK for 3 straight years Increase distribution and merchandizing behind relevant consumer occasions Selective regional expansion to other markets 37
  • 38. International Distribution expansion in India and Brazil New occasions with innovation Locally relevant media 38
  • 39. International New marketing campaign Distribution expansion Value pack opportunities 39
  • 40. 40
  • 42. Net Sales Growth Adj. EPS Growth 42
  • 44. 44 Source: 1. Company Financials and Information 2014-23. 2: Bloomberg Finance L.P, Free Cash Flow defined as CFO minus Capex. 3: Bloomberg Finance L.P. Annualized 10-Year TSR. See appendix for GAAP/Non-GAAP reconciliations.
  • 46. 46 Source: Company Financials and Information.
  • 47. Within Target Range 2021 2022 2023 2024E 2025E Long term Core confection capacity Snacking scale and optimization Supply Chain resilience & technology Source: Company Financials and Information. 47
  • 48. Harmonized business processes End-to-end supply chain visibility Faster M&A integration AI- and automation-enabled data strategies Enhanced collaboration with suppliers and customers Support for new and emerging commercial strategies 48
  • 49. 49 Digitize and automate Optimize procurement and manufacturing Capture capability synergies across segments Accelerate capability investments in innovation, R&D, and planning Increase organizational effectiveness 2024E Run Rate 2026+ Supply Chain SG&A Source: Company Financials and Information.
  • 50. 50 Adjusted Earnings Per Share Growth Reported Net Sales Growth Reported Earnings Per Share Growth
  • 51.
  • 52. Organic, Constant Currency Net Sales Growth Reconciliation of GAAP and Non-GAAP Information For the year ended December 31, 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Components of Net Sales Growth Percentage Change as Reported 3.9% -0.5% 0.7% 1.0% 3.7% 2.5% 2.0% 10.1% 16.1% 7.2% Impact of Foreign Currency Exchange -0.7% -1.6% -0.7% 0.2% -0.2% -0.3% -0.5% 0.4% -0.2% 0.2% Impact of Acquisitions/Divestitures 0.8% 1.0% 0.6% 0.3% 3.6% 1.0% 0.5% 1.0% 4.3% 0.0% Percentage Change on Organic Constant Currency Basis 3.9% 0.1% 0.8% 0.5% 0.3% 1.8% 2.0% 8.7% 12.0% 7.0% 52
  • 53. Year-ending: December 31, 2023 In Millions of Dollars Except Per Share Amounts Gross Profit Operating Profit Interest- Expense, Net Net Income Income Per Share- Diluted GAAP results $ 4,997.8 $2,560.9 $151.8 $1,861.8 $9.06 Adjustments: Derivative mark-to-market losses 58.9 58.9 - 48.7 0.29 Business realignment activities 0.5 3.4 - 2.7 0.01 Acquisition and integration-related activities (1.7) 75.9 - 57.6 0.37 Other miscellaneous losses - - - - - Tax effect of all adjustments reflected above - - - - (0.14) Non-GAAP results $5,055.5 $2,699.1 $151.8 $1,970.8 $9.59 53
  • 54. In Millions of Dollars Except Per Share Amounts Gross Profit Operating Profit Interest- Expense, Net Net Income Income Per Share- Diluted GAAP results $ 4,498.8 $ 2,260.8 $ 137.6 $ 1,644.8 $ 7.96 Adjustments: Derivative mark-to-market losses 78.8 78.2 - 64.7 0.38 Business realignment activities - 4.4 - 3.3 0.02 Acquisition and integration-related activities 4.0 48.5 - 37.0 0.24 Other miscellaneous losses - 13.6 - 10.3 0.07 Tax effect of all adjustments reflected above - - - - (0.15) Non-GAAP results $ 4,581.6 $ 2,405.4 $ 137.6 $ 1,760.1 $ 8.52 Year-ending: December 31, 2022 54
  • 55. In Millions of Dollars Except Per Share Amounts Gross Profit Operating Profit Interest- Expense, Net Net Income Income Per Share- Diluted GAAP results $ 4,048.6 $ 2,043.7 $ 127.4 $ 1,477.5 $ 7.11 Adjustments: Derivative mark-to-market gains (24.4) (24.4) - (15.2) (0.12) Business realignment activities 5.2 16.6 - 13.5 0.09 Acquisition and integration-related activities 2.7 33.1 - 25.5 0.16 Noncontrolling interest share of business realignment and impairment charges - - - 5.3 0.03 Other miscellaneous benefits - (15.2) - (13.7) (0.07) Tax effect of all adjustments reflected above - - - - (0.01) Non-GAAP results $ 4,032.1 $ 2,053.9 $ 127.4 $ 1,492.8 $ 7.19 Year-ending: December 31, 2021 55
  • 56. In Millions of Dollars Except Per Share Amounts Gross Profit Operating Profit Interest- Expense, Net Net Income Income Per Share- Diluted GAAP results $ 3,701.3 $ 1,782.7 $ 149.4 $ 1,278.7 $ 6.11 Adjustments: Derivative mark-to-market losses 6.4 6.4 - 5.1 0.03 Business realignment activities 2.2 31.5 - 24.0 0.15 Acquisition-related costs - 3.6 - 2.8 0.03 Pension settlement charges relating to Company- directed initiatives - - - 2.6 0.02 Long-lived asset impairment charges - 9.1 - 8.8 0.04 Noncontrolling interest share of business realignment and impairment charges - - - (3.4) (0.02) Other miscellaneous benefits - (3.2) - (2.4) (0.01) Tax effect of all adjustments reflected above - - - - (0.06) Non-GAAP results $ 3,709.9 $ 1,830.2 $ 149.4 $ 1,316.2 $ 6.29 Year-ending: December 31, 2020 56
  • 57. In Millions of Dollars Except Per Share Amounts Gross Profit Operating Profit Interest- Expense, Net Net Income Income Per Share- Diluted GAAP results $ 3,622.5 $ 1,596.0 $ 144.1 $ 1,149.7 $ 5.46 Adjustments: Derivative mark-to-market gains (28.7) (28.7) (25.2) (0.14) Business realignment activities - 9.2 7.3 0.04 Acquisition-related costs 2.0 10.2 7.7 0.05 Pension settlement charges relating to Company- directed initiatives 1.8 0.01 Long-lived and intangible asset impairment charges 112.5 88.5 0.53 Noncontrolling interest share of business realignment and impairment charges (2.8) (0.01) Gain on sale of other assets (11.3) (8.5) (0.05) Tax effect of all adjustments reflected above (0.11) Non-GAAP results $ 3,595.8 $ 1,687.9 $ 144.1 $ 1,218.4 $ 5.78 Year-ending: December 31, 2019 57
  • 58. In Millions of Dollars Except Per Share Amounts Gross Profit Operating Profit Interest- Expense, Net Net Income Income Per Share- Diluted GAAP results $ 3,575.3 $ 1,623.7 $ 138.8 $ 1,177.6 $ 5.58 Adjustments: Derivative mark-to-market gains (168.3) (168.3) - (152.5) (0.80) Business realignment activities 11.3 51.8 - 38.9 0.25 Acquisition-related costs 6.2 44.8 - 35.7 0.21 Pension settlement charges relating to Company-directed initiatives - - - 4.1 0.03 Long-lived and intangible asset impairment charges - 57.7 - 41.9 0.27 Impact of U.S. tax reform - - - (7.8) - Noncontrolling interest share of business realignment and impairment charges - - - (6.3) (0.03) Gain on sale of licensing rights - (2.7) - (1.5) (0.01) Tax effect of all adjustments reflected above - - - - (0.14) Non-GAAP results $ 3,424.6 $ 1,607.1 $ 138.8 $ 1,130.1 $ 5.36 Year-ending: December 31, 2018 58
  • 59. In Millions of Dollars Except Per Share Amounts Gross Profit Operating Profit Interest- Expense, Net Net Income Income Per Share- Diluted GAAP results $ 3,455.4 $ 1,313.4 $ 98.3 $ 783.0 $ 3.66 Adjustments: Derivative mark-to-market gains (35.3) (35.3) (30.5) (0.16) Business realignment activities 5.1 69.4 51.0 0.33 Acquisition-related costs 0.3 0.2 Pension settlement charges relating to Company- directed initiatives 6.8 0.05 Long-lived and intangible asset impairment charges 208.7 185.4 0.98 Impact of U.S. tax reform 32.5 Noncontrolling interest share of business realignment and impairment charges (26.8) (0.13) Tax effect of all adjustments reflected above (0.04) Non-GAAP results $ 3,425.2 $ 1,556.5 $ 98.3 $ 1,001.5 $ 4.69 Year-ending: December 31, 2017 59
  • 60. Year-ending: December 31, 2016 In Millions of Dollars Except Per Share Amounts Gross Profit Operating Profit Interest- Expense, Net Net Income Income Per Share- Diluted GAAP results $ 3,169.5 $1,255.2 $90.1 $720.0 $3.34 Adjustments: Derivative mark-to-market gains 163.2 142.7 0.76 Acquisition and integration costs 6.5 4.0 0.03 Business realignment activities 93.9 79.9 Pension settlement charges relating to Company- directed initiatives 8.5 0.06 Goodwill and other intangible asset impairment 4.2 3.0 0.02 Settlement of Shanghai Golden Monkey Liability (26.7) Tax effect of all adjustments reflected above Non-GAAP results $ 3,390.9 $1,523.0 $90.1 $931.6 60
  • 61. Year-ending: December 31, 2015 In Millions of Dollars Except Per Share Amounts Gross Profit Operating Profit Interest- Expense, Net Net Income Income Per Share- Diluted GAAP results $ 3,386.6 $1,075.8 $105.8 $513.0 $2.32 Adjustments: Acquisition and integration costs 20.9 14.2 0.05 Business realignment activities 110.8 73.0 Pension settlement charges relating to Company- directed initiatives 6.3 0.03 Goodwill and other intangible asset impairment 280.8 1.28 Loss on early extinguishment of debt 17.6 Gain on sale of trademark Non-GAAP results $3,402.7 $1,488.3 $135.7 $898.6 61
  • 62. Year-ending: December 31, 2014 In Millions of Dollars Except Per Share Amounts Gross Profit Operating Profit Interest- Expense, Net Net Income Income Per Share- Diluted GAAP results $ 3,336.2 $1,392.3 $(83.5) $846.9 $3.77 Adjustments: Acquisition and integration costs 14.9 10.3 0.05 Business realignment, including PNC 12.0 NSRPE(1) (1.3) (0.01) India impairment 14.3 0.06 Loss on anticipated Mauna Loa divestiture 17.4 Non-GAAP results $3,335.1 $1,455.5 $(85.1) $895.9 62
  • 63. Year-ending: December 31, 2013 In Millions of Dollars Except Per Share Amounts Gross Profit Operating Profit Interest- Expense, Net Net Income Income Per Share- Diluted GAAP results $ 3,280.8 $1,338.1 $(88.4) $820.5 $3.61 Adjustments: Acquisition and integration costs 4.0 5.4 0.03 Business realignment, including PNC 19.1 NSRPE(1) 6.6 0.03 Non-GAAP results $3,286.9 $1,372.1 $(88.4) $844.3 63