Slide 1: Even Faster, Even Stronger, Even Better
RAMON LAGUARTA HUGH JOHNSTON CHAIRMAN & CHIEF VICE CHAIRMAN & CHIEF EXECUTIVE OFFICER FINANCIAL OFFICER Even Faster Even Stronger Even Better CAGNY 2022 0
Slide 2: Safe Harbor Statement & Non-GAAP Information
SAFE HARBOR STATEMENT & NON-GAAP INFORMATION Safe Harbor Statement Statements in this communication that are “forward-looking statements,” including our long-term targets, are based on currently available information, operating plans and projections about future events and trends. Terminology such a
Slide 3: Agenda
AGENDA: WHO WE ARE STRATEGIC FRAMEWORK DELIVERING RESULTS PRIORITIES AND VALUE CREATION 2
Slide 4: A global beverage and convenient food company with a portfolio of trusted brands
WE ARE A GLOBAL BEVERAGE AND CONVENIENT FOOD COMPANY WITH A PORTFOLIO OF TRUSTED BRANDS Net Revenue Operating Profit Iconic Purposeful More than More than billion-dollar $79 billion $11 billion brands sold in over in 2021 in 2021 200+ countries and Creating growth territories and value 3
Slide 5: Well positioned in large, fast-growing categories across the world
THAT ARE WELL POSITIONED IN LARGE, FAST- GROWING CATEGORIES ACROSS THE WORLD Strong Positions In Attractive Categories Diverse Geographic Presence #1 Convenient Foods #2 Beverages 60% 40% North International America • Market leader • Strong #2 position • Leadership in globally savory snacks 55% 45%
Slide 6: Brought to our customers with a set of powerhouse businesses
BROUGHT TO OUR CUSTOMERS WITH A SET OF POWERHOUSE BUSINESSES FLNA PBNA 58% 42% QFNA Our Geographic Mix: Geographic Mix: NCB Geographic Mix: 93% 7% 93% 7% 90% 10% Divisions 25% Of Total Net Revenue 32% Of Total Net Revenue CSD 3% Of Total Net Revenue 43% Of Core Division NOPBT 19% Of Core Division NO
Slide 7: Agenda
AGENDA: WHO WE ARE STRATEGIC FRAMEWORK DELIVERING RESULTS PRIORITIES AND VALUE CREATION 6
Slide 8: Clear mission and vision to become faster, stronger, and better
WE ESTABLISHED A CLEAR MISSION AND VISION TO BECOME FASTER, STRONGER, AND BETTER MISSION Create more smiles with every sip and every bite Be the global leader in beverages and VISION convenient foods by winning with FA S T E R STRONGER BETTER Winning in the marketplace, being Transforming our capabi
Slide 9: Cultural framework that empowers employees to act with purpose
ALONG WITH A CULTURAL FRAMEWORK THAT EMPOWERS EMPLOYEES TO ACT WITH PURPOSE Empowering Our Employees Transforming With Purpose be consumer act as focus and centric owners get things done fast voice raise the bar celebrate act with Positive Positive Positive opinions on talent success integrity Agric
Slide 10: Actions to drive agility and execution in the marketplace
AND TOOK ACTIONS TO DRIVE AGILITY AND EXECUTION IN THE MARKETPLACE Priorities Actions Outcomes PBNA local division Reorganized NAB Speed structure in U.S. Precision Created PFNA QFNA and FLNA are under the same leadership Innovation Agility Realigned AMENA Separated into AMESA & APAC Shifted resourc
Slide 11: Clear priorities to accelerate growth and build competitive advantages
WITH CLEAR PRIORITIES TO ACCELERATE GROWTH AND BUILD COMPETITIVE ADVANTAGES FASTER STRONGER BETTER Investing to fortify our Investing to modernize Charting a new course to global brands and and digitize our drive growth and positive businesses capabilities action for the planet and Investing
Slide 12: Investing to fortify our global brands and businesses
INVESTING TO FORTIFY OUR GLOBAL BRANDS AND BUSINESSES Brands ROI focused A&M Investments U.S. Net Revenue Growth Supply Chain Manufacturing Capacity Reducing bottlenecks Increasing capacity for brands and packages +11% +11% +11% Variety Pack +10% +27% +8% Go-To-Market Systems People Growing our dire
Slide 13: Investing behind meaningful consumer-centric innovation
INVESTING BEHIND MEANINGFUL CONSUMER- CENTRIC INNOVATION Sustainable Nutritious Snacking Packaging & Variety Energy Flavor Innovation Zero-Sugar Beverages Coffee 12
Slide 14: Extending our brands and capabilities within beverages and convenient foods
EXTENDING OUR BRANDS AND CAPABILITIES WITHIN BEVERAGES AND CONVENIENT FOODS Convenient Beverages Foods 13
Slide 15: Reshaping the composition of our portfolio
RESHAPING THE COMPOSITION OF OUR PORTFOLIO New Business Acquisitions Divestitures Ventures 14
Slide 16: Investing to modernize and digitize our capabilities
INVESTING TO MODERNIZE AND DIGITIZE OUR CAPABILITIES Digitalization IT Harmonization Data & Analytics Sustaining market performance requires continuous transformation of our capabilities and cost management. 15
Slide 17: Investing in omnichannel capabilities and emerging consumer engagement models
INVESTING IN OMNICHANNEL CAPABILITIES AND EMERGING CONSUMER ENGAGEMENT MODELS Omnichannel Capabilities Emerging Engagement Models Flexible atorade.com Manufacturing Platforms End-to-End Inventory, Assets and Order Visibility Customization and Variety Multi-source Fulfillment Network Transportation a
Slide 18: Focusing on holistic cost management
FOCUSING ON HOLISTIC COST MANAGEMENT Pursue Savings Across The Entire Business Building new Holistic Cost Management Global business services capabilities looking end-to-end to identify and act on opportunities Marketplace execution Technology utilization Waste reduction Reduce Redesign Rethink G&A
Slide 19: Charting a new course to drive growth and positive action for the planet
AND CHARTING A NEW COURSE TO DRIVE GROWTH AND POSITIVE ACTION FOR THE PLANET AND PEOPLE Positive Agriculture Positive Value Chain Positive Choices Sourcing crops and Making our foods and ingredients sustainably, beverages in a way that Inspiring people through in ways that accelerates builds a circu
Slide 20: Positive agenda embedded across our strategy and organization
WITH NOW EMBEDDED ACROSS OUR STRATEGY AND ORGANIZATION POSITIVE AGRICULTURE POSITIVE VALUE CHAIN POSITIVE CHOICES Spread regenerative Sustainably source Evolve our portfolio of products so they 7 agriculture across are better for the planet + people, by: million Net Achieve Diversifying ingredients
Slide 21: Agenda
AGENDA: WHO WE ARE STRATEGIC FRAMEWORK DELIVERING RESULTS PRIORITIES AND VALUE CREATION 20
Slide 22: Our strategy and investments have fortified our businesses and growth has accelerated
OUR STRATEGY AND INVESTMENTS HAVE FORTIFIED OUR BUSINESSES AND GROWTH HAS ACCELERATED Organic Revenue Growth & Core CC EPS Growth 12% 9% 9% 9.5% Organic Revenue Growth Core Constant Currency 4.5% 4.3% 3.7% EPS Growth 2.3% 2% (1%) 2017 2018 2019 2020 2021 2-Year Organic Revenue Growth 3.0% 3.0% 4.1%
Slide 23: Across both our North America and international markets
ACROSS BOTH OUR NORTH AMERICA AND INTERNATIONAL MARKETS North America Held / Gain International Held / Gain Organic Revenue Growth Share Organic Revenue Growth Share Savory 5.3% 7.5% Salty 6.2% CSDs RTD 1.5% Tea 2016 - 2018 2019 - 2021 U.S. Share 2016 - 2018 2019 - 2021 2021 Average Average 2021 Ave
Slide 24: Global beverage and convenient food businesses
AS WELL AS OUR GLOBAL BEVERAGE AND CONVENIENT FOOD BUSINESSES Global Key Highlights Organic Revenue Growth Organic Revenue Growth 2016 - 2018 Average 2019 - 2021 Average 2016 - 2018 Average 2019 - 2021 Average 6.7% 8.7% 5.4% 7.4% 4.7% 5.9% 5.0% 3.4% 1.6% 0.3% Global Convenient Foods Global Beverages
Slide 25: Aided by our people and positive portfolio evolution
AIDED BY OUR PEOPLE AND POSITIVE PORTFOLIO EVOLUTION Creating A Collaborative & Equitable Workplace Expanding Positive Product Choices On track towards achieving 88% 85% As of 2020… 50% women in managerial Of our Are 48% employees confident in roles by 2025. As of 2021: are proud to PepsiCo’s Of our
Slide 26: Acknowledged by recent awards and accomplishments
AND ACKNOWLEDGED BY RECENT AWARDS AND ACCOMPLISHMENTS #1 MANUFACTURER 6 Years In A Row Best ESG Reporting & #1 Food, Beverage Corporate Governance & Tobacco Just Company Team of the Year 25
Slide 27: Agenda
AGENDA: WHO WE ARE STRATEGIC FRAMEWORK DELIVERING RESULTS PRIORITIES AND VALUE CREATION 26
Slide 28: We compete in fast growing categories with a long runway for growth
WE COMPETE IN FAST GROWING CATEGORIES THAT HAVE A LONG RUNWAY FOR FUTURE GROWTH Global Convenient Foods Opportunity Global Beverages Opportunity 5-YR Estimated 5-YR Estimated CAGR: +4-5% 8% share CAGR: +4-5% 9% share ~$573 ~$579 Billion Billion Note: PepsiCo defined convenient foods includes total s
Slide 29: Clear priorities that align with our strategic framework
WITH CLEAR PRIORITIES THAT ALIGN WITH OUR STRATEGIC FRAMEWORK Omnichannel Consumer- capabilities centric Improve innovation profitability of PepsiCo Beverages Drive Building North America Productivity indispensable brands Outpace Build category advantaged Data & growth capabilities Analytics Win in
Slide 30: Disciplined approach with our allocation of capital
AND EMPLOY A DISCIPLINED APPROACH WITH OUR ALLOCATION OF CAPITAL 1 2 3 4 Invest Appropriately Pay And Grow Selectively Consider Share Repurchases In Our Business Our Dividend Acquisitions, Partnerships While maintaining access to Capital spending to drive Increased dividend for & Divestitures debt c
Slide 31: Emphasis on supporting the growth needs of our business
WITH AN EMPHASIS ON SUPPORTING THE GROWTH NEEDS OF OUR BUSINESS Net Capital Spending As % of Net Revenue Where Are We Investing? 6.0% 2021 5.9% 5.6% 4.7% 4.9% 4.4% Sustainable plastics and packaging Productivity & Other Decarbonization of our operations & supply chain Growth Water Sustainability Pro
Slide 32: Ample cash returns to shareholders through dividends and buybacks
WHILE PROVIDING AMPLE CASH RETURNS TO OUR SHAREHOLDERS THROUGH DIVIDENDS AND BUYBACKS Cash Dividends Paid Per Share 50 $4.53 $4.25 $4.02 $3.59 $3.79 $3.17 $2.76 $2.96 $2.53 $2.13 $2.24 $1.89 $2.03 Consecutive years of dividend hikes 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022E S
Slide 33: Aiming to deliver durable results and long-term value creation
AS WE AIM TO DELIVER DURABLE RESULTS AND LONG-TERM VALUE CREATION Long-Term Targets Income Organic Core Core Operating Current Revenue Constant Dividend Growth Margin Currency EPS Expansion Yield Growth +4 – 6% +20-30 bps annually +HSD% 2.5% Value Creation Note: PepsiCo provides guidance on a non-GA