Pepsico Presentation at 2010 Consumer Goods Analyst Conference

1. Building Europe’s Premier
Food and Beverage Business
Zein Abdalla
CEO – PepsiCo Europe
1

2. Safe harbor statement
Statements in this communication that are “forward‐looking statements” are based on currently available
information, operating plans and projections about future events and trends. They inherently involve risks
and uncertainties that could cause actual results to differ materially from those predicted in such forward‐
looking statements. Such risks and uncertainties include, but are not limited to: PepsiCo’s ability to
consummate the acquisitions of The Pepsi Bottling Group, Inc. (“PBG”) and PepsiAmericas, Inc. (“PAS”) and
to achieve the synergies and value creation contemplated by the proposed acquisitions; PepsiCo’s ability to
promptly and effectively integrate the businesses of PBG, PAS and PepsiCo; the timing to consummate the
proposed acquisitions and any necessary actions to obtain required regulatory approvals; the diversion of
management time on transaction‐related issues; increased indebtedness as a result of the proposed
acquisitions; changes in demand for PepsiCo’s products, as a result of shifts in consumer preferences or
otherwise; increased costs, disruption of supply or shortages of raw materials and other supplies;
unfavorable economic conditions and increased volatility in foreign exchange rates; PepsiCo’s ability to build
and sustain proper information technology infrastructure, successfully implement its ongoing business
process transformation initiative or outsource certain functions effectively; damage to PepsiCo’s reputation;
trade consolidation, the loss of any key customer, or failure to maintain good relationships with PepsiCo’s
bottling partners, including as a result of the proposed acquisitions; PepsiCo’s ability to hire or retain key
employees or a highly skilled and diverse workforce; changes in the legal and regulatory environment;
disruption of PepsiCo’s supply chain; unstable political conditions, civil unrest or other developments and
risks in the countries where PepsiCo operates; and risks that benefits from PepsiCo’s Productivity for Growth
initiative may not be achieved, may take longer to achieve than expected or may cost more than currently
anticipated. For additional information on these and other factors that could cause PepsiCo’s actual results
to materially differ from those set forth herein, please see PepsiCo’s filings with the SEC, including its most
recent annual report on Form 10‐K and subsequent reports on Forms 10‐Q and 8‐K. Investors are cautioned
not to place undue reliance on any such forward‐looking statements, which speak only as of the date they
are made. PepsiCo undertakes no obligation to update any forward‐looking statements, whether as a result
of new information, future events or otherwise.
Please refer to the “Investors” section of PepsiCo’s web site at www.pepsico.com under the heading
“Financial News & Events” to find disclosure and a reconciliation of any non‐GAAP financial measures 2
contained herein.

3. Agenda
1 Overview of PepsiCo in Europe
2 Europe’s growth potential
3 Building Europe’s premier Snackable
Foods business
4 Expanding the #1 Juice business
across Europe
5 Expanding leadership in Ready‐To‐Drink Tea
6 Eastern Europe:
The Russia Power of One case study
3

4. PepsiCo Europe covers 880 Million
consumers, across a diverse range of economies
GDP/Capita >$20K
GDP/Capita $10 to $20K
GDP/Capita <$10K
Russia
UK
Spain
Turkey 4

5. We are one of Europe's
top five Food and Beverage companies
$7Bn
Net Revenue Growth
$4Bn CAGR
11%
2005 2009
M&A
22% Juice
Positioned 30% East Scale in
to Grow in 15% CSDs/ Snacks and
Eastern Europe Other Beverages
2009 Net 70% West 63% Snacks 2009 Net
Revenue Revenue
5

6. Powerful, diverse portfolio in sweetspot
of convenient Food and Beverages
Snacks Juice
#1 #1
#2 #1
6

7. Portfolio enabled us to successfully
navigate recent economic headwinds
Europe 2009 Performance*
13%
10%
3.5%
(1%)
Snacks Beverages Net Division
Revenue Operating Profit
Volume
* The above core constant currency results are non‐GAAP financial measures that exclude certain restructuring actions associated 7
with the company’s Productivity for Growth initiative and costs associated with our proposed mergers with PBG and PAS, and
assume constant foreign currency exchange rates used for translation based on the rates in effect in 2008.

8. By focusing on four performance drivers
• Walkers ‘Do Us a Flavour’
Differentiated
1 Value • Tropicana dine‐out
• Turkey free air‐time units
Revenue • Consumer segmentation
2 Management • Occasion/pack/pricing
Strong • Productivity
3 Cost Control • Procurement
• Working capital management
Cash Flow
4 Generation
• Receivables focus
• Strategic capital expenditure
8

9. … delivering Performance with Purpose is
essential in Europe’s stakeholder environment
Human Sustainability Environmental
Sustainability
Waste Reduction
Now
12% ‐30%
Electricity
from
Salt reduction Renewable
Energy
Talent Sustainability
Top 50
for Women in
Water Use
UK and Ireland Energy Use
#1 company
for career
development
‐11%
in Spain
Top 10
Workplace in ‐20%
France, Greece
and Portugal
9
Use per unit

10. A new division
structure and team, fit for the future
CEO – PepsiCo Europe
Zein Abdalla
14 years
UK/Ireland East Europe West Europe South East Europe Iberia Franchise
Richard Evans Ramon Laguarta Charles Bouaziz Umran Beba Xavi Orriols Andy Williams
15 years 13 years 18 years 14 years 19 years 22 years
Finance HR Commercial Operations R&D
Nick Hampton David Henderson Eugene Willemsen Jeff Malcolm Rob Hargrove
15 years 13 years 15 years 24 years 15 years

11. Europe’s
Growth Potential
11

12. Massive growth potential in Snacks
Significant Growth Opportunities Growing per
in Savory Snacks caps in East Europe
(kg Per Capita)
8
’05‐’09
OPPORTUNITY CAGR
2%
’05‐’09
4
CAGR
Volume Share
7%
PepsiCo
1
East West USA
Europe Europe
Salty Nuts Salty
Biscuits
Other
& Seeds Sticks Crispbreads
Pretzels
Breadsticks 12
Source: AC Nielsen

13. LRB provides tremendous growth opportunities
esp. in East Europe and NCBs in West Europe
LRB Consumption Eastern Europe growing LRB faster
(Liter/Capita) than the West… (’05‐’09 CAGR L/Capita)
359 West
Europe 1%
250 East
4%
Europe
112
NCB growing faster than CSD…
NCB 2%
East West USA
Europe Europe
CSD
1%
13
Source: Canadean + Internal Data 2006‐2009Q3 YTD

14. The integration of PBG/PAS strengthens our
ability to take advantage of LRB growth trends
Beverage Categories Mix Geographic Mix
Europe Net Revenue 2009 Europe Beverage Net Revenue ’09
Juices 60% 39% East 30% 53%
Europe
12%
Other 10%
CSDs 30% 49% West 70% 47%
Europe
PEP Combined PEP Combined
PEP/PBG/PAS PEP/PBG/PAS 14

15. With PBG/PAS we will be a ~$9 Billion
Food and Beverage business in Europe
Europe Net Revenue
~$9Bn
CAGR
11% $7Bn
$4Bn
2004 2009 Combined
PEP/PBG/PAS
…we’ll talk more about the new Europe at
PepsiCo’s Investor Meeting on March 22‐23 15

16. Strategic levers
• Powerful and diversified portfolio
• Leveraging global scale … Driving local relevance
• Advantaged business systems
• Unleashing the power of the “Power of One”
• Diverse and talented team
… Delivering Performance with Purpose
16

17. Building the Premier
“Snackable Foods”
Business in Europe
17

18. PepsiCo Europe is the leading Savory Snack player with
powerful brands and an advantaged business system
Global
brands…
Local
relevance
Go‐To‐
Market
Agro/
Supply
Chain
18

19. We are the #1 Savory Snacks player in Europe
PepsiCo Savory Snacks Share (2009 Value %)
Serbia
Belgium
Poland
Greece
UK
Portugal
Turkey
Netherlands
Spain
Russia
Romania
France
19
0 10 20 30 40 50 60
Source: AC Nielsen and IRI

20. Walkers – The #2 Food brand in the UK
~40% share
UK’s most famous in Savory
advertising £500MM
campaign retail sales in
potato chips
10 million bags 7 out of 10
consumed households
every day 20

21. With award‐winning advertising
1996 ‐ 2005 2006 2007 ‐ 2008
The classic Lineker Addressing health and Striking a balance…
years of “no more wellness concerns in
Mr Nice Guy” potato chips ‐ “Home Grown
“Pure Irresistibility” “permission” Irresistibility” 21

22. Run “Walkers British Potatoes” Video

23. Exciting consumer engagement …
• Massive 360 campaign – winner of Campaign’s media
campaign of the year
• 1.2MM flavour entries & 1MM votes
• Drove highest share performance for 3 years
23

24. Expanding into BFY space
• Total market in UK = £121 million (Chips/Snacks/Nuts/Better‐For‐You)
• Walkers Share = £81 million (67%)
#1 BFY
brand
• First potato chip with 100%
natural ingredients
• 30% Lower fat than core Walkers
• £34 million • £16 million
• Biggest UK potato chip brand
• 28% share of BFY • 13% share of BFY launch since ’07
• 2009 share +2 pp • 2009 share +4 pp • Winner of “The Grocer’s” launch
of the year for bagged snacks 24
Source: AC Nielsen

25. Run “Walkers Baked” Video

26. Across Europe we are extending
our leadership through re‐staging the core
Continuously improving …And addressing
our portfolio consumers’ needs for
(natural) indulgence
Salt
Reduction
26

27. Lifting and shifting
innovation ideas across Europe
Cheetos
Merienda
Do
Us A
Flavour
27

28. Extending beyond core
Potato Chips into Baked and Nuts & Seeds
Doubling down … And accelerating
on Oven Baked Nuts & Seeds
28

29. Developing winning partnerships
with the Organized Trade in Western Europe …
29

30. Leveraging portfolio strength
to accelerate growth in Eastern Europe
Lay’s global scale… … Expanding into
made locally relevant Crispbread
30

31. Poised for growth
as per capita consumption grows with income
Savory per capita consumption (kg) 2008
9 40
Annual disposable income (M €) 2008
6
20
3
0 0
Ukraine Russia Turkey Poland Spain Benelux UK
31
Sources: Euromonitor (income), Nielsen (consumption)

32. Expanding The #1 Juice
Business Across Europe
32

33. PepsiCo is the leading
Fruit Juice company in Europe
Juice/Juice Drink Volume (million case equivalents)
~319
5 Year CAGR
Total +44%
Base + 9%
52
base
2004 2009 33

34. We have built Tropicana into
a real power brand in Western Europe …
34

35. … By building an advantaged,
low cost supply chain from “fruit to shelf”
35

36. Captivating consumers with consistent
brand communication and sponsorships
Building 1‐on‐1
Anchoring the Roland‐Garros Relationships
Breakfast Occasion Sponsorship with Consumers
36

37. Run
“UK Tropicana” Video

38. Run “France Tropicana” Video

39. Expanding into new
fruit experiences and needstates …
Continuously Capturing key health Expanding into
expanding the need‐states with liquid fruit snacks
‘fruitprint’ Essentials with Smoothies
39

40. Extending beyond fruit into veggies …
Alvalle … veggies … Being rolled out
made convenient to multiple markets
40

41. Going forward we will expand the portfolio
Fruit
Juices Smoothies
Liquid
Food
Spreads
Chilled
Soups
41
Vegetable

42. And now with Lebedyansky and Sandora acquisition
we have become Europe’s #1 Juice business
Lebedyansky … Sandora… Ukraine´s
Russia’s #1 Juice Company #1 Juice Company
RUR 30 RUR 70+
2009 2009
+0.9.pp +1.5pp
42

43. Expanding Leadership
in Ready‐to‐Drink Tea
43

44. Leveraging Lipton, the #1 Ready‐to‐Drink
Tea, to extend category leadership in Europe
New Core Accelerate
Brand Product Green Tea
Identity Reformulation
44

45. Run “Hugh Jackman Testimony re Lipton” Video

46. Leveraging Lipton, the #1 Ready‐to‐Drink
Tea, to extend category leadership in Europe
New Core Accelerate
Brand Product Green Tea
Identity Reformulation
46

47. Ready‐To‐Drink Tea need states
expansion opportunities
Tea Relative Footprint vs. All LRBs
HYDRATION RTD Tea
Expanded
Footprint
Expansion
ENJOYMENT
HEALTH
Expansion INDULGENCE
Leaf Tea
Current
Footprint
NOURISHMENT TRANSFORMATION 47
ENERGY
Source: 6Ws, 2007

48. RTD Tea provides significant growth
opportunities for PepsiCo Europe, esp. in Russia
Russia – An explosive growth opportunity
951
752
RTD Tea per caps
Total Tea per caps
422
357
21 29 3 12
China Poland Turkey Russia
48
Source: Euromonitor

49. Building The
#1 Food and Beverage
Business in Eastern Europe
The Russia Power of One Case Study
49

50. We are well positioned in East Europe …
a geography with solid growth potential
490 Million consumers with relatively
low but growing disposable income…
Poised for future growth behind renewed GDP growth
Russia
143MM
GDP: $15.2M
Central Europe
67MM
GDP: $19.1M CIS
133MM
GDP: $6.3M
South‐East Europe
147MM 50
Source: CIA World Factbook (2009E) GDP: $12.4

51. PepsiCo has a long history in Russia … and
we’ve built an absolute powerhouse business
Production facilities
Distribution system
51

52. Winning strategy in Russia to establish
the premier Food and Beverage business
Create a robust portfolio of Russia’s favorite
1 beverage and snack brands
2 Build powerful go‐to‐market capabilities
3 Fortify an advantaged supply chain
4 Attract and develop a world‐class team
52

53. 1 Powerful portfolio with Russia’s
favorite snack and beverage brands
Winning Local Flavors Leading Juice Portfolio
Global Platform with Unleashing Growth
Local Execution Potential in RTD Tea
53

54. Run “Russia Pepsi” Video

55. 2 Utilizing the power of "Power of One" to
strengthen instore presence/captivate consumers
Increase Captivating the
Driving PO1 distribution reach consumer at
Synergies and depth the PoS
55

56. 3 Advantaged, localized Agro program,
behind continued investments in capability
56

57. We aspire to be Russia’s
Premier Food and Beverage company
Premier Snackable Advantaged
#1 in Beverages Foods Business Power of One
Business Model
#1 in Juice #1 in Savory Localized Inputs
Enter New Growth Integrated
#1 in Tea Platforms Logistics, Back
office, Production
Superior Beverage Unparalleled
Capability Go‐To‐Market
Systems
Strong Organizational Capability – Best Place to Work, Best Talent
Socially Responsible: Environment & Communities
Common Systems Platform as Key Enabler 57

58. PepsiCo Europe
• A Portfolio positioned for Growth
– Balanced exposure to Eastern and
Western Europe
– Expanding Categories, Powerful Brands,
Diverse and Locally Relevant Products
• The Power of the Power of One
– Advantaged Business Systems
• A Diverse Team of Talented People
– Business Growth People Growth
58

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