Slide 1: PepsiCo: Frito-Lay North America
PepsiCo: Frito-Lay North America Presentation to Consumer Analyst Group of New York February 21, 2018 1
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 21, 2018. Safe Harbor Statement Statements in this presentation that are “forward-looking statements,” a
Slide 3: PepsiCo 2017 financial highlights
PepsiCo 2017 financial highlights Net Revenues Division Operating Profit Frito-Lay North America Frito-Lay North America 42% 25% All Other Sectors All Other Sectors Source: PepsiCo 2017 Financials 3
Slide 4: FLNA has delivered industry-leading growth
FLNA has delivered industry-leading growth 3% 6% #1 Average 3-year Average 3-year Contributor to net revenue operating profit 3- year total F&B growth growth dollar growth Source: IRI, MULOC L52W ending 2015-2017 for F&B growth 4
Slide 5: We are retail customers' most preferred supplier
We are retail customers’ most preferred supplier Kantar Rankings (1) #1 Named top manufacturer for second - Clearest Company Strategy year in a row - Most Important Brands - Best Combination of Growth & Profitability - Best Sales Force / Customer Teams - Most Innovative Marketing Approach Earned
Slide 6: Our momentum is strong
Our momentum is strong …fueled by innovation and Strong performance… portfolio breadth +48 bps 3-year Salty snack share gain Source: IRI, MULOC 2015-2017 growth rates and share data. 6
Slide 7: Agenda focused on four levers
Agenda focused on four levers 1 Brand Building Innovation 2 Productivity Execution 4 3 7
Slide 8: #1: Brand Building
Priority #1: Brand Building A&M behind global Strong brands Iconic campaigns brands Top 7 brands in Salty Snacks ~90% of retail sales from brands with #1 or #2 sub-category share position Source: IRI, MULOC 2017 8
Slide 9: #2: Innovation in the Core
Priority #2: Innovation in the Core 2017 2018 Source: Company Data 9
Slide 10: #2: Innovation in BFY
Priority #2: Innovation in BFY Growth in BFY Categories Portfolio Transformation 2025 PepsiCo Goals # 1 RTE Popcorn Reducing Sodium At least 75% of our global foods portfolio volume will not exceed 1.3 mg per calorie Reducing Saturated Fat At least 75% of our global foods portfolio volume will not e
Slide 11: #3: Execution – Precision DSD
Priority #3: Execution – Precision DSD Scale and Reach Differentiated Capabilities ~500,000 service calls/week • Computer Aided Ordering ~300,000 • • Merchandising with precision Advanced technology retail stores served weekly • Labor efficiency Source: Company Data 11
Slide 12: #3: Execution – eCommerce
Priority #3: Execution – eCommerce Investments in Capabilities, Talent, and Culture Brand Brand Building Building Brand New Occasions Building Marketing Supply Chain Brand Portfolio breadth Building Data Analytics Team/Values Delivering Growth 12 Source: Company Data
Slide 13: #4: Productivity
Priority #4: Productivity Digital GES Automation Sustainability Capabilities Enabling greater Unlocking Streamlining via Generating efficiency and zero-touch office automation, additional portfolio breadth supply chain machine learning cost savings Source: Company Data 13
Slide 14: Our Business Agenda is Delivering
Our Business Agenda is Delivering 1 Brand Building Innovation 2 Productivity Execution 4 3 14
Slide 15: PEPSICO
3 PEPSICO