PepsiCo, Inc. · NASDAQ:PEP

PepsiCo — Consumer Analyst Group of New York Conference 2014

36 slides from PepsiCo's conference presentation, Feb 20, 2014

  1. Slide 1: Winning in North America

    Winning in North America February 20, 2014 Brian Cornell Chief Executive Officer, PepsiCo Americas Foods

  2. Slide 2: Safe Harbor Statement of Terms & Non-GAAP Information

    Safe Harbor Statement of Terms & Non-GAAP Information Safe Harbor Statement • Statements in this communication that are “forward-looking statements,” including our 2014 guidance, are based on currently available information, operating plans and projections about future events and trends. Terminology

  3. Slide 3: Our presenters represent experiences across snacks and beverages

    Our presenters represent experiences across snacks and beverages Brian Cornell Tom Greco Current CEO, PepsiCo Americas Foods President, Current Frito-Lay North America 2009 – 2012 CEO, Sam’s Club Chief Commercial Officer, 2009 – 2011 PepsiCo Americas Beverages 2007 – 2009 CEO, Michaels 2006 – 2009 P

  4. Slide 4: North America is a critical driver of PepsiCo revenue, with significant scale advantage

    North America is a critical driver of PepsiCo revenue, with significant scale advantage US Contribution to Significant Scale Advantage PepsiCo Net Revenues (Retail Sales Indexed to PepsiCo) PepsiCo 100 Kraft Foods 51 Nestle 50 Coca Cola 47 Rest of U.S. Anheuser Busch Inbev 38 World 49% 51% General M

  5. Slide 5: The industry is seeing significant changes in the consumer and retail landscape

    The industry is seeing significant changes in the consumer and retail landscape Consumers Customers • Changing demographics • Shifting channels • Shifting needs • Growing new formats 5

  6. Slide 6: Our playbook in this environment balances focus with scale

    Our playbook in this environment balances focus with scale Focus Scale Leverage Procurement IT / Back Office + Customer Teams R&D Go deep on key category priorities Drive growth and margins from scale 6

  7. Slide 7: Playbook anchored on key priorities

    Playbook anchored on 4 key priorities Brand Building Innovation Productivity Execution 7

  8. Slide 8: Retailers value PepsiCo's outstanding brand portfolio across snacks and beverages

    Retailers value PepsiCo’s outstanding brand portfolio across snacks and beverages 19 $1 Billion Dollar Global Brands Sold in the US *PepsiCo’s 22 billion dollar brands globally include Walker’s, Mirinda and 7-UP outside the U.S. Lipton and Starbucks are sold through partnerships with Unilever and St

  9. Slide 9: Demand spaces insights highlight significant brand interactions between snacks and beverages

    Demand spaces insights highlights significant brand interactions between snacks and beverages Total US Snacks, Breakfast & Beverages Retail Sales 35% Common / Different Complementary Needs Needs 65% Source: Company research 9

  10. Slide 10: Common demand space insights highlight opportunities across our portfolio

    Common demand space insights highlight opportunities across our portfolio Common & Adjacent Demand Spaces Prepare Perform Reform Connect Office / School Fun Times Jump Start Young & Hungry Break Together 10

  11. Slide 11: Example: Successful insights-driven gaming promotion

    Example: Successful insights-driven gaming promotion Doritos Gamer Pack Mountain Dew Game Fuel • Limited Edition • Electrifying Berry • Citrus Cherry 11

  12. Slide 12: Insights driving innovation across snacks and beverages

    Insights driving innovation across snacks and beverages Nine PepsiCo F&B innovations Recent food & beverage in top 50 win in foodservice Source: IRI US MULOC based on estimated launch year sales for innovations launched through June 2013 12

  13. Slide 13: Joint Customer Teams

    We execute both at the customer’s headquarters and in each and every store Joint Customer Teams At the customer’s headquarters In each and every store 13

  14. Slide 14: Video: Walmart Game Time

    VIDEO Walmart Game Time 14

  15. Slide 15: Our strong brand activation was highly visible at the Super Bowl

    Our strong brand activation was highly visible at the Super Bowl From Insights to Media to Shelf Ad Week January 26, 2014 15

  16. Slide 16: We leverage common engines, tools and a global transportation system to deliver productivity

    We leverage common engines, tools and a global transportation system to deliver productivity Common Engines Common Tools Global Transportation Management System 16

  17. Slide 17: We've rewired the company to gain global scale leverage

    We’ve rewired the company to gain global scale leverage Procurement Information Customer R&D Talent Systems Teams Innovation Management Collaborative Global Integrated Global Cross-Sector Account Procurement Systems and Innovation Experiences and Management Function Handhelds Approach Capabilities A

  18. Slide 18: In sum, our focus going forward is executing this playbook

    In sum, our focus going forward is executing this playbook Brand Building Innovation Productivity Execution 18

  19. Slide 19: Winning in North America

    Winning in North America February 20, 2014 Tom Greco President, Frito-Lay North America

  20. Slide 20: FLNA delivering balanced growth

    FLNA delivering balanced growth 2013 FLNA % Growth Held Value Share and 6 Grew Volume Share 4 3 Volume Net Revenue Profit 20

  21. Slide 21: Our long term growth model

    Our long term growth model Brand Building Innovation Productivity Execution 21

  22. Slide 22: Frito-Lay has significant headroom for growth

    Frito-Lay has significant headroom for growth Monthly Snack Occasions 67 Total Snack Occasions Per Month 21 Unpackaged Snacks 46 46 8 Macro Macro FL Snacks Snacks Snacks Source: TNS Itrac, FY Ending 2013 22

  23. Slide 23: We've defined a consumer framework focused on demand spaces

    We’ve defined a consumer framework focused on demand spaces 23

  24. Slide 24: Lay's "Do Us a Flavor"

    Lay’s “Do Us a Flavor” S PEPSICO nih thee winner is. CHEESY GARLIC BREAD aren WeberMendham

  25. Slide 25: Video: Lay's Yummy

    VIDEO Lay’s Yummy 25

  26. Slide 26: Doritos Crash the Super Bowl

    Doritos Crash the Super Bowl #2 Cowboy Kid #4 Time Machine Source: USA Today Ad Meter 26

  27. Slide 27: Video: Doritos Time Machine

    VIDEO Doritos Time Machine 27

  28. Slide 28: Video: Doritos Cowboy Kid

    VIDEO Doritos Cowboy Kid 28

  29. Slide 29: 2013 Innovation

    2 2013 Innovation S PEPSICO

  30. Slide 30: Building on Foodservice partnerships through innovation

    Building on Foodservice partnerships through innovation 30

  31. Slide 31: We won't stop innovating

    2 We won’t stop innovating S PEPSICO ED thins r pretyel FAJITA | ~— : = t aos 31

  32. Slide 32: Lay's execution

    ) o] rT a. ui a. cs i= fe) s >} is) o x< o vn) Lay @y! @g | @% @p) OF Oy ©

  33. Slide 33: Winning with Hispanic consumers

    Winning with Hispanic consumers Juntos Disfrutamos Mas Las Posadas Día De Los Muertos Fiestas Patrias 33

  34. Slide 34: GES driving benefits where launched

    GES driving benefits where launched Perry GA Topeka KS • Lower Inventory • Faster Growth • Lower Costs Denver CO Rosenberg TX • More SKUs • Improved Freshness 34

  35. Slide 35: Sustainable growth

    Sustainable growth • Attractive Category Brand Building Innovation • Runway to Grow • Competitive Advantage Productivity Execution • Strength of PepsiCo 35

  36. Slide 36: S PEPSICO

    S PEPSICO

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