Geared for Growth - PepsiCo
Geared for Growth - PepsiCo
Geared for Growth - PepsiCo
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<strong>PepsiCo</strong> TodayRevenueOrganic Revenue <strong>Growth</strong>Operating MarginNet ROICDividend Yield$65B5%15%15%3%Certain of the above items are reflected on a core basis and represent Non-GAAP financial measures that exclude certain items. Please refer to the“Reconciliation of GAAP and Non-GAAP In<strong>for</strong>mation” attachment posted on February 21, 2013 under the "Investors - Investor Presentations” section on<strong>PepsiCo</strong>’s website at www.pepsico.com to find disclosure and a reconciliation of the above non-GAAP financial measures.3
Powerful Brands22 $1Bn Brands6
<strong>PepsiCo</strong> Has 9 of the Top 40 Trademarks at Retail1 15 292 16 303 17 314 18 325 19 336 20 347 21 358 22 369 23 3710 24 3811 25 3912 26 4013 2714 2852 Weeks Ending Dec 30, 2012, SymphonyIRI Group - Total Store Advantage, Total US – MultiOutletC8
Balanced Geographic FootprintProducts / TerritoriesWe Have Products in More than 200Countries and TerritoriesEmerging & Developing MarketsSignificant Developingand Emerging Markets ExposureEmerging &Developing35%Developed65%Both Snacks Only Beverages Only No PresenceNote: Developed and Emerging & Developing data is based on 2012 net revenue9
Per Capita ConsumptionConsumption Highly Correlated to GDP/CapitaEmergingDevelopedSource: Euromonitor10KGDP / Capita20K10
Lots of <strong>Growth</strong> RunwaySalty Snack Per Capita Consumption(Index to Mexico)Mexico100Brazil39Russia28China11India6Source: Euromonitor11
Recent Actions Have Strengthened Our BusinessIncreased Brand InvestmentStepped Up InnovationStrengthened ExecutionProductivity to Fund Margin Expansion & Future InvestmentCash Flow Productivity & Returns12
Increased Brand Investment: Focus on Mega Brands2012 A&M Up 50bps to 5.7% of Sales13
Crash the SuperbowlHUGE CONSUMERENGAGEMENT22,000ADS SUBMITTEDOVER 7 YEAR HISTORY2OF TOP 10SUPERBOWL SPOTS14
Do Us a Flavor19MILLION SUBMISSIONSGLOBALLYLIFT & SHIFT FROM THEUK TO 17 MARKETSINCLUDING POLAND, EGYPT & INDIA15
<strong>PepsiCo</strong> Sports PropertiesLeaguesPro TeamsColleges16
Stepped Up InnovationInnovation Across the Portfolio17
Doritos Locos Tacos325MILLION UNITSSOLDMOST SUCCESSFULNEW PRODUCT INTACO BELLHISTORY18
Quaker Real MedleysDELICIOUS PREMIUM2012 BREAKFASTOATMEAL PRODUCTWITH REAL FRUIT AND NUTSOF THE YEAR19
Pepsi Next60% LESSCALORIESREAL COLATASTE$150MILLION ATRETAIL20
Starbucks Refreshers60 CALORIESPARKLINGBEVERAGEDELICIOUSBOOST OF ENERGYFROM GREEN COFFEE EXTRACT21
Trop 5050% LESSCALORIESLAUNCHED IN THE UKFOLLOWING SUCCESS INUS & CANADA22
Gatorade Energy ChewsCARB ENERGYTO FUEL ATHLETESPERFORMANCE23
Strengthened ExecutionFrito Share of Salty Purchaseswith a CSD2011 2012+2pts60% 62%59%+4pts63%PEP CSD Share of CSD Purchaseswith Salty2011 2012+2pts+3pts32% 34% 32%35%WhenCSD is:Other PEP Other PEPWhenSalty is:Other PEP Other PEPSource: IRI Household panel, 2012 is rolling 12 months ending December 16, 201224
Delivered Productivity of $1B in 2012ProcurementSustainabilityFleet PortfolioAutomation & TechnologyGTM Strategy25
Balanced ProfileProductsGeographiesSignificant Emerging andDeveloping Markets ExposureSnacks51%Beverages49%GlobalNutritionEmerging &Developing35%Developed65%Note: Data is based on 2012 net revenue27
Portfolio Delivers Balanced <strong>Growth</strong>, ROIC and MarginsEmerging Developing Developed<strong>Growth</strong> Driver Penetration Frequency ExpansionRole in Portfolio<strong>Growth</strong>Absolute Margin/ROICMargin ImprovementROIC ImprovementKey Markets China, India Russia, Mexico, Brazil U.S., U.K., Canada28
How Revenue <strong>Growth</strong> Model WorksCategoryGeography<strong>Growth</strong> Rate% of Revenue% of <strong>Growth</strong><strong>Growth</strong> Rate% of Revenue% of <strong>Growth</strong>LSD-MSD49%~1/3LSD-MSD65%~1/3MSDBeveragesSnacks51%~2/3HSD-LDDDevelopedEmerging &Developing35%~2/3Mid-Single Digit Revenue <strong>Growth</strong>Assumes: 3-5 year timeframe, currency neutral, no structural change29
Long-Term GoalsTop Tier TSR• Revenue <strong>Growth</strong> MSD,mostly Organic• Balanced offerings betweenFFY, BFY, GFY• Increased Emerging &Developing Market Footprint• EPS HSD• Operating Margin+30-50 bps / year• ROIC 50+ bps / year• Core MOCF growth= Net Income growth• Strong returns to shareholders(dividends and sharerepurchases)SupportingFundamentals:• World-Class Brand Building and Innovation• Excellence in Execution• Optimal Cost Structure and Capital Allocation• Best Place to WorkNote - Certain of the above items represent Non‐GAAP financial measures that exclude certain items. Please refer to the “Reconciliation of GAAP and Non‐GAAP In<strong>for</strong>mation” attachmentposted on February 21, 2013 under the "Investors ‐ Investor Presentations” section on <strong>PepsiCo</strong>’s website at www.pepsico.com to find disclosure and a reconciliation of the above non‐GAAPfinancial measures.30
2013: OutlookCore Constant Currency EPS <strong>Growth</strong>Organic Revenue <strong>Growth</strong>2013 Productivity SavingsCommodity InflationA&MCore Tax RateMOCF (excluding certain items)Net Capital ExpendituresShare Repurchases+7% 1+Mid-Single Digits~$900M+Low-Single DigitsAt Least 5.7% of Net Revenue~27%More than $7B~$3B (
PEP Virtuous Circle• Mid-Single-DigitRevenue <strong>Growth</strong>,Mostly Organic• Scale Leverage• AggressiveProductivityProgram• Brand Building• Innovation• Go-to-MarketCapability32
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