pepsico acc 500 presentation

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“Performance with Purpose” Jennifer Hauser & Naz Farhad

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Page 1: Pepsico Acc 500 Presentation

“Performance with Purpose”

Jennifer Hauser & Naz Farhad

Page 2: Pepsico Acc 500 Presentation

Product Portfolio

PepsiCo

PAB-Pepsico American Beverages

Pepsico Europe

AMEA Pepsico Asia, Africa, and Middle East

LAF-Latin America

Food and Snack

QFNA-Quaker

Foods North America

FLNA-Frito Lay North America

Page 3: Pepsico Acc 500 Presentation

Product Revenues

U.S. Outside U.S.

Food Beverage

Mix of Net Revenue

Mix of Net Revenue

PepsiCo AMEA10%PepsiCo Europe20%PepsiCo Amer. Bev33%PepsiCo Amer. Food37%

Division Operating Profit

PepsiCo AMEA 7%PepsiCo Europe 13%PepsiCo Amer Bev 28%PepsiCo Amer Food 52%

Page 4: Pepsico Acc 500 Presentation

Major Financial Figures

% Of Growth 5% Organic Growth Read more:

Cash Balance 6.3B

Earnings Per Share $4.10

Net Income past 3 YearsDecember 31, 2010

6.32BDecember 31, 2011

6.443BDecember 31, 2012

6.178 B18.941

Billion

Page 5: Pepsico Acc 500 Presentation

Financial Highlights

A/R TurnoverNet Revenue ÷ Accounts & Notes receivables 65,492 ÷ 7,041 = 9.30

*Compared to industry 10.85

Inventory Turnover 8.45 *Compared to industry 9.75

Total (current)& Fixed Assets C=18.63B F=74.64B18.63B

Major Liabilities 52.12B

Tax Rate A25.2% 26.8% a 1.6 % decrease

Page 6: Pepsico Acc 500 Presentation

Stock Performance

Current $79.24 Last 5 day change 2.78

2012 Yearly Range $58. 50 - $72.95 On December 31, 2012 $67.78

Comparison w/KO Coke Current $37.18

On December 31, 2012 $35.88

Comparison with (PEP) S & P 500 (Standard & Poor)

1,851.75

Earning Per Share-Current Current PEP-4.32

Dividend Aristocrat = Pays it dividend each year

Pepsico, Inc. (PEP) -NYSE

Page 7: Pepsico Acc 500 Presentation
Page 8: Pepsico Acc 500 Presentation

Auditor’s Opinion

“In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of PepsiCo, Inc. as of December 29, 2012 and December 31, 2011, and the results of its operations and its cash flows for each of the fiscal years in the three- year period ended December 29,

2012, in conformity with U.S. generally accepted accounting principles. Also in our opinion, PepsiCo, Inc. maintained, in all material respects, effective internal control over financial reporting as of December 29,

2012, based on criteria established in Internal Control — Integrated Framework issued by COSO”

Page 9: Pepsico Acc 500 Presentation

Competitive AdvantageStrengthGlobal Brand NameProduct diversification

“Fun For You” “Better for You”“Good for You”

Strong distribution channelsCEO Indra NooyiQuality Conscious

WeaknessesHealth RisksSoft Drink market share

OpportunitiesIncrease Global presenceSustainability GrowthNew innovated products New distribution channels

ThreatsHealthier trendsNew Comers to MarketCompetitorsGovernment regulations

Coke-Snapple/Dr. Pepper-Kraft-Nestle

Page 10: Pepsico Acc 500 Presentation

Growth & Global Market

Global Flavor – 200 countries Investments Developed over Developing North America Market Size VS Global Globally untouched markets Health Craze Governmental Regulations Positions in every key global market-position

In 2006, emerging and developing markets accounted for 24 percent of PepsiCo net revenue; in 2012, they represented 35 percent

PERCENTAGE OF NET REVENUE FROM EMERGING & DEVELOPING MARKETS

Page 11: Pepsico Acc 500 Presentation

Sales Comparison to Industry

Coca Cola (KO)The greatest rivalry Sales 47.07B

Snapple and Dr. Pepper (DPS)Sales 6B

Hansen Natural (HANS)Changed to MNST (Monster)Sales 2.06B

Page 12: Pepsico Acc 500 Presentation

“The actions we took in 2012 were all designed to take us one step further on the transformation journey of our company.”

Indra K. Nooyi