Slide 1: Presentation to CAGNY
Pala . ah! Presentationito CAGNY 3 | Pipers February20, 2019 @ QT ie oe ye is hi: : u Bohnston fe airman & CF
Slide 2: Safe Harbor Statement & Non-GAAP Information
Safe Harbor Statement & Non-GAAP Information This presentation should be viewed in conjunction with PepsiCo’s webcast presentation at the Consumer Analyst Group of New York Conference on February 20, 2019. Safe Harbor Statement Statements in this communication that are “forward-looking statements,”
Slide 3: Today's Discussion: Good to Great
Today’s Discussion: Good to Great Long-Term Goals Consumer- centric company +4-6% Accelerated Organic revenue growth investment Integrate Purpose into our business +20-30 bps strategy One PepsiCo, Core operating Accelerated topline winning growth and locally and margin expansion globally unleashed p
Slide 4: Strong Foundation
Strong Foundation Compete in Leading brands Well-developed attractive and broad product geographic categories portfolio footprint Strong, relevant Large scale Highly engaged capabilities that enables efficient associates operations and a winning culture 4
Slide 5: Strong Financial Performance
Strong Financial Performance Since 2012… 3.8% avg. +160 bps 9% avg. Organic revenue growth Core operating margin Core constant currency expansion EPS growth +9.5 pps. 9% CAGR $45B to 24.8% Dividends per Cumulative cash returned share to shareholders Core net ROIC Six-year average reported net revenu
Slide 6: Priorities
Priorities 6
Slide 7: Priorities: Faster
Priorities Faster by being more consumer-centric and accelerating investment for topline growth and winning in the marketplace Broaden our portfolios Fortify our Accelerate international to win locally in North American expansion, convenient foods and businesses with disciplined focus on beverages ‘
Slide 8: Clear Value Creation Model
Clear Value Creation Model Deliver Four Key Benefits Variety Ubiquity “What I want” “Where I want it” Consumer– Centricity Desirability Value “With benefits or affordability “From a brand I trust” that appeal to me” 8
Slide 9: Expand Our Core Savory Snacks Portfolio
Expand Our Core Savory Snacks Portfolio INDULGENT MORE NUTRITIOUS 9
Slide 10: Expand Our Core LRB Portfolio
Expand Our Core LRB Portfolio INDULGENT MORE NUTRITIOUS 10
Slide 11: Accelerate Growth in Our Markets
Accelerate Growth in Our Markets Fortify North America Invest to sustain FLNA growth and leadership Strengthen NAB to grow with the market Accelerate International Deploy FLNA playbook in developed markets Invest in Stronghold and Battleground markets Scale key D&E markets Compete ‘smartly’ in Chall
Slide 12: Accelerating Investments
Accelerating Investments Manufacturing Capacity Digitalization Supply Chain Agility Sustainability Advertising & Marketing GTM/Routes 12
Slide 13: Priorities: Stronger
Priorities Stronger by transforming our costs, capabilities and culture Drive savings through Develop and scale core Build differentiated talent holistic cost capabilities globally through and culture management to reinvest technology to win in the marketplace 13
Slide 14: Transforming Cost, Capabilities and Culture
Transforming Cost, Capabilities and Culture LEANER, MORE-EFFICIENT Win in the Marketplace STRONGER Talent-, Data-, and MORE-AGILE, Technology-Enabled IN KEY FASTER TO CAPABILITIES ADAPT 14
Slide 15: Holistic Cost Approach, Consistent Framework and Philosophies
Holistic Cost Approach, Consistent Framework and Philosophies Cost Framework Cost Philosophies • Local affordability first Redesign work Reduce non-labor costs • Simplify and standardize • Multi-functional collaboration • Not all capabilities / costs are equal Increase ROI Increase utilization of co
Slide 16: Pursue Savings Across the Entire Business
Pursue Savings Across the Entire Business Operating Model Global Business Services Marketplace Execution Technology Utilization Optimized Network Real Estate 16
Slide 17: New Capabilities, Enabled by Technology
New Capabilities, Enabled by Technology • Consumer Intimacy • Indispensable Brand-Building • Impactful Science- and Design-Led Innovation • Omni-Channel Point-of-Choice Excellence • End-to-End Supply Chain Agility 17
Slide 18: Example: Building Consumer Intimacy Capabilities in the U.S.
Example: Building Consumer Intimacy Capabilities in the U.S. Integrated Consumer Data 1 Platform + More-targeted, effective consumer-facing execution Individual-Based Media/ 2 Marketing Approach + More personalized communication 3 Iterative ROI Engine + Real-time optimization decisions 4 Omni-channe
Slide 19: Example: Utilizing End-to-End Value Chain Approach in FLNA
Example: Utilizing End-to-End Value Chain Approach in FLNA Consumer Intimacy creates requirements based on personal snacking & shopping needs Marketplace Advantage services those needs precisely and Integrated Planning profitably across points of choice Agile Network supplies that marketplace effici
Slide 20: Become a Stronger, More-Agile and More-Capable Company
Become a Stronger, More-Agile and More-Capable Company Build Differentiated Change the Organization Change the Culture Talent and Capabilities 20
Slide 21: Priorities: Better
Priorities Better by continuing to integrate purpose into our business strategy and doing even more for the planet and our people Agriculture Water Packaging Product 21
Slide 22: 2019 Guidance
2019 Guidance 4% -1% $4.5B Organic Revenue Core Constant Net Capital Growth Currency EPS Spending Performance Considerations Higher Core Effective Tax Rate Lapping 2018 Strategic Asset Sale and Refranchising Gains Incremental/Accelerated Investment PepsiCo provides guidance on a non-GAAP basis as th
Slide 23: Summary: Good to Great
Summary: Good to Great Faster Stronger Better Long-Term Goals +4-6% +20-30 BPS HSD Increasing Organic revenue growth Core operating Core constant currency Core net ROIC margin expansion EPS growth PepsiCo provides guidance on a non-GAAP basis as the Company cannot predict certain elements which are
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