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IndraNooyi
Chairman and Chief Executive Officer
JohnCompton
Chief Executive Officer, PepsiCo Americas Foods & Global Snacks Group
TomGreco
President, Frito-Lay North America
Investing For Growth
CAGNY February 23, 2012
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Safe Harbor Statement
Statements in this communication that are "forward-looking statements, including PepsiCos 2012 guidance and long-term growth targets,
are based on currently available information, operating plans and projections about future events and trends. Terminology such as believe,
expect, intend, estimate, project, anticipate, will or similar statements or variations of such terms are intended to identify forward-
looking statements, although not all forward-looking statements contain such terms. Forward-looking statements inherently involve risks and
uncertainties that could cause actual results to differ materially from those predicted in such forward-looking statements. Such risks and
uncertainties include, but are not limited to: changes in demand for PepsiCos products, as a result of changes in consumer preferences and
tastes or otherwise; PepsiCos ability to compete effectively; unfavorable economic conditions in the countries in which PepsiCo operates;
damage to PepsiCos reputation; PepsiCos ability to grow its business in developing and emerging markets or unstable political conditions,
civil unrest or other developments and risks in the countries where PepsiCo operates; trade consolidation or the loss of any key customer;
changes in the legal and regulatory environment; PepsiCos ability to build and sustain proper information technology infrastructure,
successfully implement its ongoing business transformation initiative or outsource certain functions effectively; fluctuations in foreign
exchange rates; increased costs, disruption of supply or shortages of raw materials and other supplies; disruption of PepsiCos supply chain;
climate change, or legal, regulatory or market measures to address climate change; PepsiCos ability to hire or retain key employees or a
highly skilled and diverse workforce; failure to successfully renew collective bargaining agreements or strikes or work stoppages; failure to
successfully complete or integrate acquisitions and joint ventures into PepsiCos existing operations; failure to successfully implement
PepsiCos global operating model; failure to realize anticipated benefits from our productivity plan; any downgrade of our credit ratings; and
any infringement of or challenge to PepsiCos intellectual property rights.
For additional information on these and other factors that could cause PepsiCos actual results to materially differ from those set forth herein,
please see PepsiCos filings with the SEC, including its most recent annual report on Form 10-K and subsequent reports on Forms 10-Q and
8-K. Investors are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date they are
made. PepsiCo undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or
otherwise.
Non-GAAP Information
Unless otherwise indicated herein, all references to revenue and division operating profit growth in this slide presentation are on a core basis.
Volume growth measures reflect an adjustment to the base year (2010) for divestitures that occurred in 2011 and exclude the impact of the
extra week of results in 2011. In addition, all comparisons are on a year-over-year basis unless otherwise noted. Please refer to the
Investors section of PepsiCos web site at www.pepsico.com under the heading Investor Presentations to find disclosure and a
reconciliation of any non-GAAP financial measures contained herein.
SafeHarborStatementofTermsandNonGAAPInformation
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2
AllnumbersabovearereflectedonacorebasisandrepresentNonGAAPfinancialmeasuresthatexcludecertainitems.Pleaserefertothe"PepsiCoQ4and
FullYear2011Earnings"GAAP/NonGAAPReconciliationattachmentpostedonFebruary9,2012underthe"Investors InvestorPresentationssectionon
PepsiCoswebsiteatwww.pepsico.comtofinddisclosureandareconciliationoftheabovenonGAAPfinancialmeasures.
PepsiCoToday
Revenue
OperatingMargin
NetROIC
ROE
$66B
16%
17%
31%
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3
Positioninattractivecategories
Complementaryontrendbusinesses
Broadbrandportfolio
Globalfootprint
Tremendousreachinkeymarkets Both Snacksonly Beveragesonly Nopresence
PepsiCoToday SignificantPortfolioAdvantages
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4
Allnumbersabovearereflectedonacorebasis.RepresentNonGAAPfinancialmeasuresthatexcludecertainitems.Foradescriptionoftheseitems,please
referto"ReconciliationofGAAPandnonGAAPInformation"intheInvestorssectionofPepsiCoswebsiteatwww.pepsico.com
PepsiCoPortfolioEvolution
Developed
66%
2011
$66B
2016
~$80B
2021
~$110B
D&E
50%
Developed
50%
Beverages
52%
Snacks
48%
Beverages
45%
Snacks
55%
GFY: 20% 25% 30%
Category:
D&E
34%
D&E
41%
Developed
59%
Geography:
Beverages
48%
Snacks
52%
NetRevenue
5
5
WorldClassBrandBuildingandInnovation
ExcellenceinExecution
OptimalCostStructureandCapitalAllocation
BestPlacetoWork
EPSHSD
OperatingMargin
+3050bps/year
ROIC50+bps/year
CoreMOCFgrowth
=NetIncomegrowth
Strongreturnsto
shareholders
(dividendsandshare
repurchases)
Supporting
Fundamentals:
TopTierTSR
RevenueGrowthMSD,
mostlyOrganic
Balancedofferings
betweenFFY,BFY,GFY
IncreasedEmerging&
DvpgMarketFootprint
CertainoftheaboveitemsareNonGAAPfinancialmeasuresthatexcludecertainitems.Pleaserefertothe"PepsiCoQ4andFull Year2011Earnings"GAAP/Non
GAAPReconciliationattachmentpostedonFebruary9,2012underthe"Investors InvestorPresentationssectiononPepsiCoswebsiteatwww.pepsico.comto
finddisclosureandareconciliationoftheabovenonGAAPfinancialmeasures.
LongTermGoalsandSupportingFundamentals
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6
OurStrategicPriorities
1
BuildandextendMacrosnacksglobally
2
SustainablyandprofitablygrowourBeverage
businessworldwide
3
LeverageGFYbrands/Health&Wellness
categorymomentumtogrowourNutritionBusiness
4
Capitalizeoncrosscategorypresencetogrow
countrypositions
5
Ensureprudentandresponsiblefinancialmanagement
John Compton
CEO, PepsiCo Americas Foods & Global Snacks Group
Investing For Growth
CAGNY February 23, 2012
8
1
BuildandextendMacrosnacksglobally
2
SustainablyandprofitablygrowourBeverage
businessworldwide
3
LeverageGFYbrands/Health&Wellness
categorymomentumtogrowourNutritionBusiness
4
Capitalizeoncrosscategorypresencetogrow
countrypositions
5
Ensureprudentandresponsiblefinancialmanagement
OurStrategicPriorities
9
$400Bcategory
6%annualdollargrowth
Allmarkettypesgrowing
GlobalMacrosnacks
ConsumersAroundtheWorldLovetoSnack
10
MacrosnacksRevenue
($BRetailSales,2010)
Diamond
$1.1
$2.3
Kelloggs
$5.5
Nestl
$16.2
Kraft
$30.5
PEP
Snacks
$32.0
Source:Euromonitor
General
Mills
SavorySnacksRevenue
($BRetailSales,2010)
Diamond
$1.1
$0.8
Kelloggs
$1.5
Nestl
$0.5
Kraft
$5.3
PEP
Snacks
$29.9
General
Mills
PepsiCoistheLargestGlobalMacrosnacksPlayer
11 11
PepsiCoTotalWorldwideSnacks
Developed Developing Emerging
7of10keygrowthmarketsforPEPsnacksarealsofocusmarkets
forPEPBeveragesprovidingleverageacrossportfolio
Grew global
macrosnacks value
share in 2011
Note:Valuesharecalculatedvs.globalEuromonitormacrosnacksgrowth2011vs.2010;
WWsnacksexcludesQFNAandWimmBillDann,incoreUSD
PepsiCosGlobalSnackshadStrong2011
PerformancewithAllMarketsGrowingVolume
Volume Revenue
Volume Revenue Volume Revenue Volume Revenue
Volumegrowthmeasuresreflectanadjustmenttothebaseyear(2010)fordivestituresthatoccurredin
2011.Theabovemetricsexcludetheimpactoftheextraweekofresults,QuakerFoodsNorthAmericaand
WimmBillDann.Foradescriptionoftheseitems,pleaserefertoReconciliationofGAAPandNonGAAP
InformationintheInvestorssectionofPepsiCoswebsiteatwww.pepsico.com.
12
Innovation
Productivity Execution
BrandBuilding
OurLongTermGrowth
ModelWillDriveCompetitiveAdvantage
13
WeHave7SnacksBrands
ThatConsumersLoveAroundtheGlobe
LargestPEPsnackbrands MegabrandLays
Sun 0.7
Fritos
Tostitos
Ruffles
Cheetos
Doritos
Lays/
BannerSun
11.7
2011GlobalRetailSales(US$Bn)
TheWorlds
FavoriteFoodBrand
#1GlobalFoodBrand
800millionbrandloversglobally
Strongequitygrowthinlargest
emergingmarkets:
- India,China,Russia,Turkey
Provenpricingpowerindeveloped
markets
14
GlobalSnacksA&MSpend BuildingMegaFoodsBrands
WeWillStepChangeOurBrandSupportin2012
2012 2011
+20%
15
Lays Doritos Cheetos
InnovatingforGrowth InCoreBrands
Doritos
Jacked
LaysDoUsAFlavor
Doritos
Dinamitas
CheetosSweetos
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PremiumSegment ValueSegment
InnovatingforGrowth AcrossConsumerTypes
Smartfood &OliveCoast(US)
RedRockDeli
(Australia)
Lucky
(Brazil)
Taqueros
delSur(US)
Lehar
(India)
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InnovatingforGrowth WithNewPlatforms
Note;BakedGrainsincludessavorycrackersandbakedbreadandricesnacks
Source:Euromonitor,2010RetailSales
Baked Grain Snacks Total Current Business: ~$425MM
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ExecutingwithExcellence
AdvantagedGoToMarketandInStoreCapabilities
DistributionandGTMModels InStoreCapabilities
Ubiquitousdistributionglobally
Sharedbeveragesnacksdistribution
Speedandcashconversionfrominventory
turning2xfasterthanwarehousebusinesses
100%distributionwithin6weeks
ofproductlaunch
Brazil Russia
Tailoredinstoreproductassortment
Presenceincategoriesspanningmultiple
storeaisles
Worldclassrevenuemanagement
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GES/distributionnetworksavings
AdvantagedAgropractices
Leansixsigma
G&Asavings
RaisingReturnsthroughProductivity
Make Move Sell
Productivity
Opportunities
20
GlobalSnacksGoals
LowSDvolume;
MidSDrevenue;Valuesharegrowth
OurGlobalSnacksBusinessis
AdvantagedwithClearStrategicPriorities
Innovation
Productivity Execution
BrandBuilding
Positionedinattractive,
growingcategory
Broadportfolioofpowerbrands
withincreasedsupport
Worldclassinnovationcapabilities
Globalfootprintwithdiverse
distributioncapabilities
Heightenedproductivityfocus
KeyTakeaways
21
Note:TotalWorldwideSnacksexclude$2.6BQFNAnetrevenueand$0.8BWBDnetrevenue
FritoLayRemainsCriticalto
OurGlobalMacrosnacksPowerhouse
TotalWorldwideSnacks
(2011NetRevenue)
2011FLNAPerformance
Volumegrowthexcludestheimpactoftheextraweekofresultsin2011.RevenueanddivisionoperatingprofitareonacorebasisandrepresentNonGAAPfinancial
measuresthatexcludecertainitems.Pleaserefertothe"PepsiCoQ4andFullYear2011Earnings"Q42011EarningsReleaseattachmentpostedonFebruary9,2012under
the"Investors InvestorPresentationssectiononPepsiCoswebsiteatwww.pepsico.comtofinddisclosureandareconciliation oftheabovenonGAAPfinancialmeasures.
+7
+4
+1
Profit
Revenue
Volume
$13B
Other
WW
Snacks
$15B
22
Tom Greco
President, Frito-Lay North America
Investing For Growth
CAGNY February 23, 2012
23
2011Performance 4ofTop20USFoodBrands*
*Quakerisalsoatop20USfoodbrand
Source:IRIGDMxC
FLNAisBuildingfromaPositionofStrength
Volumegrowthexcludestheimpactoftheextraweekofresultsin2011.RevenueanddivisionoperatingprofitareonacorebasisandrepresentNonGAAPfinancial
measuresthatexcludecertainitems.Pleaserefertothe"PepsiCoQ4andFullYear2011Earnings"Q42011EarningsReleaseattachmentpostedonFebruary9,2012under
the"Investors InvestorPresentationssectiononPepsiCoswebsiteatwww.pepsico.comtofinddisclosureandareconciliation oftheabovenonGAAPfinancialmeasures.
+7
+4
+1
Profit
Revenue
Volume
FLNAhas#1Share
ofMacrosnacks
24
WeCompeteinaLargeMacrosnacksUniverse
thatContinuestoOutpaceTotalFood&Beverage
Source:BCGSnackConsumptionSurvey MarchApril2011,ITRACdatabase
Q1Q2Q32010,EuromonitorInternationalPackagedFood:2010data,2010
IRIdatabase,BCGanalysis
Source:IRITotalDollarSales,GDMxC
$14B
100%=$102B
AllOtherSalty
$8B
25
Value Mainstream Premium
Source:IRIGDMxC
WithValueandPremiumSegmentsasClear
Opportunities
Opportunity
FLNA
Strength
Opportunity
12% 79% 9%
ofCategory
Volume
ofCategory
Volume
ofCategory
Volume
26
Innovation
Productivity Execution
BrandBuilding
OurGrowthPlanks
27
WeveDefinedaConsumer
FrameworkFocusedonDemandSegments
28
WeGoDeeponDemandDriversinEachSegment
SnackFanatic
Personalfavorite
Eatonthego
Iliketochoosethebest
Gomyownway
Carefreeindividuals,
snackingalone,lookingfor:
VIDEO
DoritosCTSBAds(2)
30
USAToday/Facebook#1
USATodayPanel#1
DeliveringGreatResults
*Measuredchannels;Source:IRIGDMxC2011
GrowthSource:Internaldata,4weeksendingFebruary,4th,2012
DoubleDigit
Growth!
3%shareofU.S.
Macrosnacks*
31
AcceleratedInvestmentinBrandBuilding
2012Target:
TotalA&M
Increase35%
32
2012Target
5%ofSales
BrandBuildingInvestment
isSupportedwithStrongInnovation
33
AndBrandSynergiesAcrossthePepsiCoPortfolio
34
Partnership
Mainstream
Innovation
PremiumandValue
Innovation
GrowthVenturesEstablished
toCaptureHighlyIncrementalOpportunities
35
Note:TwistosisapremiuminnovationinCanadaonly;segmentsizingforsaltysnacksonly
Source:BCGSnackConsumptionSurvey MarchApril2011,ITRACdatabaseQ1Q2Q32010
GrowthVentures
InitiallyFocusedonPremiumSegment
PremiumSegment
$2.0BOpportunity
36
Note:Segmentsizingforsaltysnacksonly
Source:BCGSnackConsumptionSurvey MarchApril2011,ITRACdatabaseQ1Q2Q32010
ButWeSeeLarge
PotentialinValueSegmentasWell
ValueSegment
$2.7BOpportunity
37
AnExciting2012PipelineofInnovationforLaysStax
Core Hispanic
38
LaysStaxisWellPositionedinStackedPC,
withStrongRecentPerformance
StackedPCPerformance(FY2011) StackedPCPerformance(2012YTD)
Source:IRIGDMxCYTD12/25/2011
Source:IRIPanelLatest52wksthrough12/25/2011
Source:IRIGDMxCYTD2/12/2012
Source:IRIPanelYTDthrough1/22/2012
39
WhileintheLastThreeYears,
PringlesU.S.SaleshaveDeclined
Source:IRIGDMxC
PringlesSalesPerformance
US$MM,Retail
2011
$382
2008
$401
ShareofSalty 3.3% 2.8%
Lost 0.5
share points
40
2011 2008
~215MM
~400MM
Source:IRIGDMxexcludingC;includes100%ofSabrasales
2012Target
~$500MM
GrowthVenturesEstablished
toDeliver+2ptsNetReportedSalesGrowth
41
DSD Warehouse Foodservice
ToEnableExecution,OurGTMPortfolioisUnmatched
42
ChooseAnyTwo ImmediateConsumption Localization
DSDEnablesReach
andtheAbilitytoCustomizeAssortment
43
TopekaKS DenverCO PerryGA
GESExpandsOurCapabilitiesinDSD
Inventory ~1weekremoved
Growth Higherthancontrol
Costs ClosesDSDvs.Warehousegap
SKUflexibility 4x
Productquality Improvedfreshness 1week
Perry,GA
GESPilot
44
OurProductivityAgendaisMoreRobustthanEver
SupplyChainAdvantage ManufacturingAutomation
45
FLNAGoals
LowSDvolume;MidSDrevenue;Valuesharegrowth
Innovation
5%NetSales
Productivity
Accelerated
Execution
#1CustomerService
BrandBuilding
Lays,Doritos,Cheetos,Tostitos
UndeniableStrengths...UnlimitedOpportunities
46
1
BuildandextendMacrosnacksglobally
2
SustainablyandprofitablygrowourBeverage
businessworldwide
3
LeverageGFYbrands/Health&Wellness
categorymomentumtogrowourNutritionBusiness
4
Capitalizeoncrosscategorypresencetogrow
countrypositions
5
Ensureprudentandresponsiblefinancialmanagement
OurStrategicPriorities
47
ThereareManyOverlaps
BetweenOurBeveragesandSnacksBusinesses
PlannedTogether
BoughtTogether
ConsumedTogether
48
Source:IRIHouseholdPanel
DrivingCoPurchase
ofSnacksandBeveragesisLargeOpportunity
DistributionandGTMModels
GrowthOpportunity
CSD/SnacksCoPurchaseTrips&Sales
54%
26%
20%
PEP Bev. and
PEP Snack
1 pt incremental
share gain:
~$120MM
PEP Bev. or
Snack
All others
CoPurchaseTrips USExample
CSDs
Salty
Snacks
~$12B
CoPurchase
~27%
CoPurchase
~30%
49
CustomerTeams PricePromotions ConsumerPromotions
WeBeganThisJourney13YearsAgo
50
OURGOAL
CREATEDISTINCTION
THROUGHACOMMON
PO1IDENTITY
In2012,WeCreatedOnePowerfulConsumerIdentity
51
LaunchedPO1IdentityinIndianapolis
52
AnIdentityThatCanBeExtendedAcrossOccasions,
CohortsandMedia
Occasions Cohorts Media
53
BySummer,ThisNewIdentity
WillBeReflectedAcrossInStoreTouchpoints
Joint
Merchandising
Everyday
Merchandising
Promotional
Merchandising
54
AndwithPartnershipsinOtherChannels
VIDEO
TacoBell
56
Finally,WeWillAlsoContinuetoInvestin
NewGrowthPlatformsLikeMomentstoSave
4Eventsin2012
$100Value
57
WeAreWellPositionedto
Extend#1GlobalSnacksLeadershipPosition
1
BuildandextendMacrosnacksglobally
2
SustainablyandprofitablygrowourBeverage
businessworldwide
3
LeverageGFYbrands/Health&Wellness
categorymomentumtogrowourNutritionBusiness
4
Capitalizeoncrosscategorypresencetogrow
countrypositions
5
Ensureprudentandresponsiblefinancialmanagement
58
58