Slide 1: Performing to Potential
Performing to Potential February 21, 2024 Ramon Jamie Laguarta Caulfield Chairman & CEO EVP & CFO
Slide 2: Safe Harbor Statement & Non-GAAP Information
Safe Harbor Statement & Non-GAAP Information Safe Harbor Statement packaging, transportation, labor and other input costs; laws and regulations; and potential liabilities and costs Statements in this communication that are “forward- political, social or geopolitical conditions in the markets from li
Slide 3: Who We Are / Where We Are Going / Capital Allocation & Financial Targets
1 WHO WE ARE WHERE WE ARE WHERE WE ARE CAPITAL ALLOCATION GOING & FINANCIAL TARGETS 3
Slide 4: We are a global beverage and convenient food company
We are a global beverage and NET REVENUE ICONIC GLOBAL CORE OPERATING convenient food BRANDS PROFIT company with large, iconic and trusted brands More than Sold in Nearly $91 OVER $14 BILLION 200 BILLION in 2023 countries and in 2023 territories 4 2023 reported operating profit was $12.0 billion. Co
Slide 5: Well-positioned in large, attractive categories
That are well- CONVENIENT positioned in large, attractive FOOD categories $53B 59% Net Revenue 41% $38B $91B Leader in Strong position in savory snacks all LRB categories Expanding into other Expanding across convenient food occasions beverage occasions 5 PepsiCo data based on 2023 reported net reve
Slide 6: Divisional structure designed to operate with a local focus on the consumer
INCLUDING A DIVISIONAL STRUCTURE DESIGNED TO OPERATE WITH A LOCAL FOCUS ON THE CONSUMER APAC Europe QFNA 5% 3% North 14% America International 61% 39% $55B $36B $91B FLNA PBNA AMESA LatAm 27% 30% 7% 13% Division / Geography Net Revenue Breakdown PepsiCo data based on 2023 reported net revenue. Perce
Slide 7: Diverse portfolio of trusted brands in North America
LED BY A DIVERSE PORTFOLIO OF TRUSTED BRANDS LOVED BY CONSUMERS IN NORTH AMERICA PEPSICO BEVERAGES FRITO LAY QUAKER FOODS NORTH AMERICA NORTH AMERICA NORTH AMERICA Broad presence across LRB Brands that span across Salty, Strong presence in Breakfast including CSD, Sports/Hydration, Savory and Macros
Slide 8: Expansive reach across international markets
AND AN EXPANSIVE REACH ACROSS INTERNATIONAL MARKETS EUROPE LATIN AMERICA AMESA APAC Net Revenue Net Revenue Net Revenue Net Revenue ~$13B ~$12B ~$6B ~$5B Food / Beverage % Food / Beverage % Food / Beverage % Food / Beverage % 52% / 48% 91% / 9% 71% / 29% 77% / 23% South U.K. Turkey France Mexico Bra
Slide 9: Strategic framework and culture: The PepsiCo Way
SHARING A STRATEGIC FRAMEWORK AND CULTURE THAT EMPHASIZES PERFORMANCE, OWNERSHIP AND INCLUSIVITY MISSION Create more smiles with every sip and every bite VISION Be the global leader in beverages and convenient foods by winning with FASTER STRONGER BETTER Winning in the marketplace, Transforming our
Slide 10: Who We Are / Where We Are Going / Capital Allocation & Financial Targets
2 WHO WE ARE WHERE WE ARE WHERE WE ARE CAPITAL ALLOCATION GOING & FINANCIAL TARGETS 10
Slide 11: Since 2019, prioritized investments to become Faster, Stronger, Better
SINCE 2019, WE HAVE PRIORITIZED INVESTMENTS FASTER STRONGER BETTER INVESTED ELEVATED ADVANCED AND BUILT CAPABILITIES Brands & Holistic Cost Integrate TO BECOME Innovation Management Purpose into Strategy FASTER, STRONGER Manufacturing Digitization Positive Capacity Agriculture AND BETTER Go to Marke
Slide 12: Investments to accelerate growth and build for the future
INCLUDING INVESTMENTS TO ACCELERATE GROWTH AND BUILD FOR THE FUTURE ADVERTISING & MARKETING NET CAPEX FASTER $5.7B $5.3B $4.2B +36% STRONGER +69% $3.1B BETTER 2018 2023 2018 2023 12 Net capex is capital spending less cash proceeds from sales of property, plant and equipment which is a non-GAAP finan
Slide 13: Consumer-centric innovation that drives consumption
AS WE ELEVATED OUR FOCUS ON CONSUMER-CENTRIC INNOVATION THAT DRIVES CONSUMPTION FUNCTIONAL Expanding our presence to meet PACKAGE Expansive set of portion control FASTER AND consumer preferences SIZES HYDRATION options >$6B >$11B >$3B Energy Gatorade + Variety Propel Multipack & Canisters STRONGER P
Slide 14: Strong revenue growth across global categories and brands
WHICH HAS RESULTED IN STRONG REVENUE GROWTH ACROSS OUR GLOBAL CATEGORIES AND BRANDS ORGANIC REVENUE GROWTH NET REVENUE GROWTH FASTER BY CATEGORY BY BRAND (2021-’23 CAGR) 10% +12% +16% 7% STRONGER 5% +10% +14% 2% +8% +13% BETTER Global Beverage Global Convenient Food 2016-18 Average 2019-23 Average 2
Slide 15: Growth across geographies and markets
AS WELL AS ACROSS GEOGRAPHIES AND MARKETS NET REVENUE ORGANIC REVENUE GROWTH FASTER BY GEOGRAPHY BY GEOGRAPHY North America International $91B Net 10% Revenue $65B +$26B $36B 7% STRONGER 6% INTERNATIONAL $25B NORTH AMERICA $40B $55B 1.5% BETTER 2018 2023 2016-18 Average 2019-23 Average 2016 –2018 av
Slide 16: Significant growth within North America businesses
LED BY SIGNIFICANT GROWTH WITHIN OUR NORTH AMERICA BUSINESSES NORTH AMERICA NET REVENUE FLNA PBNA FASTER $55B Net Revenue Net Revenue QFNA >$8B SINCE 2018 >$6B SINCE 2018 $40B • Gained Savory share • Expanded packaging • Expanded presence across LRB while delivering FLNA STRONGER optionality profita
Slide 17: Building and expanding international businesses
WHICH WE LEVERAGE TO BUILD AND EXPAND OUR INTERNATIONAL BUSINESSES INTERNATIONAL NET REVENUE BUILDING SCALE IN KEY D&E MARKETS FASTER 2023 CUMULATIVE PER CAPITA $36B 2 NET REVENUE (in USD$) VALUE SHARE GAIN CONSUMPTION INCREASE South Africa Brazil United Kingdom Mexico $7B $25B China China ~$3B STRO
Slide 18: Productivity initiatives fund investments and improve profitability
WITH A BROAD SET OF PRODUCTIVITY INITIATIVES THAT HELP FUND INVESTMENTS AND IMPROVE GLOBAL PROFITABILITY DRIVING EXCELLENCE AT THE BASICS FASTER KEY INITIATIVES DIVISION PROFIT Network & Route Simplified and harmonized route design and aligned products with $16B Optimization optimal GTM system $12B
Slide 19: Progress against our goals
AS WE CONTINUE TO MAKE PROGRESS AGAINST OUR GOALS POSITIVE AGRICULTURE POSITIVE VALUE CHAIN POSITIVE CHOICES FASTER Acre collaboration with Walmart that aims to 23% Reduction in Scope 1 56% Of beverages portfolio meeting added sugars and Scope 2 emissions3 2M+ adopt regenerative agriculture reductio
Slide 20: Financial performance exceeded long-term targets
WHICH HAS RESULTED IN FINANCIAL PERFORMANCE THAT HAS EXCEEDED OUR LONG-TERM TARGETS IN RECENT YEARS ORGANIC REVENUE GROWTH CORE CONSTANT CURRENCY EPS 12% 11% +HSD +4-6% 2021-23 Average Long Term Target 2021-23 Average Long Term Target 2021-23 average reported net revenue growth was 9.2% and 2021-23
Slide 21: Favorable recognition by partners and stakeholders
AND FAVORABLE RECOGNITION BY PARTNERS AND STAKEHOLDERS #1 Manufacturer 8th Consecutive Year 21
Slide 22: Who We Are / Where We Are Going / Capital Allocation & Financial Targets
3 WHO WE ARE WHERE WE ARE WHERE WE ARE CAPITAL ALLOCATION GOING & FINANCIAL TARGETS 22
Slide 23: Large, global categories with attractive growth profile
WE CONTINUE TO OPERATE IN LARGE, GLOBAL CATEGORIES WITH AN ATTRACTIVE GROWTH PROFILE GLOBAL BEVERAGE & CONVENIENT FOOD OPPORTUNITY >$1.2 Trillion CSD Salty Opportunity Savory +MSD% Estimated Long-Term CONVENIENT Growth FOODS LRB HSD% PEP Share ALL DRINKING ALL EATING of Global Beverage & OCCASIONS O
Slide 24: Grow our global presence across key categories
AND WILL AIM TO GROW OUR GLOBAL PRESENCE ACROSS OUR KEY CATEGORIES GLOBAL PRESENCE PER CAPITA CONSUMPTION OPPORTUNITIES Multiple opportunities to build our international presence where population trends are favorable LRB Savory 1.7x INTERNATIONAL 3.0x NORTH AMERICA PepsiCo Net Revenue Population INT
Slide 25: Clear set of priorities across categories and geographies
WITH A CLEAR SET OF PRIORITIES WITHIN OUR CATEGORIES AND GEOGRAPHIES GLOBAL BEVERAGES GLOBAL CONVENIENT FOODS North America North America • Drive profitable growth by addressing consumer trends • Accelerate growth by capturing new needs and occasions, across all LRB categories innovation and precisi
Slide 26: Evolving consumer preferences and environment
AS CONSUMER PREFERENCES AND THE ENVIRONMENT CONTINUE TO EVOLVE EVOLVING SHIFTING MACROECONOMIC CONSUMER LANDSCAPE BEHAVIORS INTEREST RATES INFLATION HOUSEHOLD SAVINGS CHOICEFUL AND VALUE ON-THE-GO: DEMANDING SEEKING WORK, SCHOOL, TRAVEL GEOPOLITICS FISCAL/ GLOBAL MONETARY TENSIONS POLICIES ACTIVE EX
Slide 27: Advance consumer-centric innovation capabilities
WE WILL ADVANCE OUR CONSUMER-CENTRIC INNOVATION CAPABILITIES INNOVATIVE SOLUTIONS FASTER POSITIVE CHOICES CROSS SELL EXCITING EXPAND OUR PRODUCTS ACROSS BRANDS INTO PORTFOLIO MEAL OCCASIONS STRONGER NEW OCCASIONS MAKE MY OWN EXTEND TO BEVERAGES OTHER CATEGORIES BETTER CONSUMER-CENTRICITY 27
Slide 28: Expand the scope and scale of our brands
AND EXPAND THE SCOPE AND SCALE OF OUR BRANDS FASTER STRONGER BETTER LEVERAGE OUR BRANDS 28
Slide 29: Widening our reach across channels
WHILE ALSO WIDENING OUR REACH ACROSS CHANNELS AT HOME E-COMMERCE AWAY FROM HOME FASTER STRONGER Meaningful BETTER F&B experiences ENSURING OUR PRODUCTS ARE EVERYWHERE 29
Slide 30: Brands spanning multiple occasions and destinations
WITH BRANDS THAT CAN SPAN ACROSS MULTIPLE OCCASIONS AND DESTINATIONS FASTER STRONGER Experiential Ecosystem BETTER ALWAYS EVERYWHERE 30
Slide 31: Elevate our productivity initiatives
WE WILL ALSO ELEVATE OUR PRODUCTIVITY INITIATIVES THAT WILL HELP FUND OUR INVESTMENTS FOR GROWTH KEY INITIATIVES FASTER Accelerating Network Expanding the Optimization & Scope of Global Automation at Plants & Business Services Warehouses Scale Model Productivity STRONGER Efficiency Advancing Design
Slide 32: Digitalize our company and build capabilities
WHICH INCLUDE FOCUSED EFFORTS TO DIGITALIZE OUR COMPANY AND BUILD CAPABILITIES DIGITAL, DATA, AND AI TRANSFORMATION ACROSS END-TO-END VALUE CHAIN FASTER Digital & AI Capabilities Outcomes • Leverage AI models to capture consumer INNOVATE + MARKET preferences and trends • Personalization, direct to c
Slide 33: Advance our bold and ambitious agenda
AND ADVANCE OUR BOLD AND AMBITIOUS AGENDA THROUGHOUT OUR ORGANIZATION POSITIVE POSITIVE POSITIVE AGRICULTURE VALUE CHAIN CHOICES FASTER Evolve our portfolio of products so they are Spread regenerative Sustainably source better for the planet + people, by: agriculture across 7 million Diversifying in
Slide 34: Who We Are / Where We Are Going / Capital Allocation & Financial Targets
4 WHO WE ARE WHERE WE ARE WHERE WE ARE CAPITAL ALLOCATION GOING & FINANCIAL TARGETS 34
Slide 35: Disciplined capital allocation priorities
WE WILL REMAIN DISCIPLINED WITH OUR CAPITAL ALLOCATION PRIORITIES Committed to a strong financial foundation and maintaining an appropriate capital structure While creating shareholder value by prioritizing capital spending and dividends: 1 INVESTING IN 2 RETURNING CASH TO 3 SELECTIVELY CONSIDER 4 S
Slide 36: Investing for growth and elevating productivity initiatives
WITH A FOCUS ON INVESTING FOR GROWTH AND ELEVATING OUR PRODUCTIVITY INITIATIVES NET CAPITAL SPENDING (% NR) 2023 CAPITAL SPENDING BREAKDOWN Sustainability 6.0% 5.9% 5.6% 5.7% 5.8% ▪ Agriculture ▪ Climate 4.9% ▪ Packaging 4.4% ▪ IT Harmonization ▪ Automation ▪ Logistics ▪ Digitalization ▪ Maintenance
Slide 37: 52nd consecutive annual dividend increase
AND RETURNING CASH TO SHAREHOLDERS WITH OUR 52ND CONSECUTIVE ANNUAL DIVIDEND INCREASE CASH DIVIDENDS PAID PER SHARE $5.33 $4.95 CAGR $4.53 52 7.7% $4.02 $4.25 $3.79 $3.59 $3.17 $2.96 $2.76 $2.53 $2.24 $2.03 $2.13 $1.89 Consecutive years of dividend increases 2010 2011 2012 2013 2014 2015 2016 2017 2
Slide 38: Delivering on long-term targets to create shareholder value
AS WE AIM TO DELIVER ON OUR LONG-TERM TARGETS TO CREATE VALUE FOR SHAREHOLDERS PEPSICO LONG-TERM TARGETS Organic Revenue Growth +4-6% Core Operating Margin Expansion +20-30bps Core Constant Currency +HSD Earnings Per Share Growth CREATE SHAREHOLDER VALUE Dividend ~3% Yield 38 Organic revenue growth,
Slide 39: Q&A
Q&A February 21, 2024 Ramon Jamie Laguarta Caulfield Chairman & CEO EVP & CFO