Assuring a Solid Foundation & Building Lasting Partnerships Herriot Moise PepsiCo Latin America Beverages Manufacturing Capability & Environmental Sustainability

Sustainability Drivers “Business cannot succeed in a society that fails” --Bjorn Stigson President of the WBCSD “Our Responsibility as a company is to leave all aspects of the world – environment, social and economic – in the same state as, or better than, we found them.” --Steve Reinemund PepsiCo Chairman

PEP Foot Print in LAR Bottling Network Favorite Brands Provide consumers easy access to our products by ensuring a dominant position and win-win relationships with our customers We make, sell and distribute our products through a wide network of factories and distribution centers

Solid Waste Water Contamination Sub - Products Chemical Waste All the Resources Consumed are being liberated Out with some kind of direct or indirect risk to the society, to the environment & to the planet … Products Gas Electricity Water Ingredients Chemicals Spare Parts Air Pollution We are aware of the impact of our footprint on Our environment

PepsiCo’s responsibility is to continually improve all aspects of the world in which we operate – environment, social, economic – creating a better tomorrow than today. Social Products and services Employees Health and wellness Diversity and Inclusion Safety Community Environmental Materials Energy and water Emissions, effluents and waste Products, packages and services Supply chain Transportation Economic  Customers  Suppliers  Employees  Capital and taxes  Governance  Community and contributions Strategic Planks

This is what is intended We have specific plans for Solid waste in Latin America That is what we got

PepsiCo & Bottling Partners Distribution & Trade Partners With the Consumer & Beyond Sustainability Strategy From Supplier Partners A four-phased journey “from cradle to cradle” At the Source In Process At Discharge In The Community Sustainability Strategy Environmental Sustainability on the ground

Reduce our footprint by focusing on 3 of the 5 R’s Packaging guidelines and innovation filter for LAB 1. Remove: Restrict new PET colors and support migration from PVC labels 2. Reduce: Light-weighting Bottles 3. Recycle: Post-consumption recovery & recycle initiatives Focus on Mexico, Honduras, Venezuela Packaging index reduction by YE09: 3% Recovery: Re-apply Co-op model in Chile, Argentina, Honduras, Dom Rep, Colombia Recycling: Support Bottle-to-bottle initiatives in Argentina (Cabelma) and Guatemala (Erema) our Agenda has a strong component Packaging to reduce impact on the environment :

We have the solutions in our hands. All we need is the will. Main Applications of recycled PET Other Industries Cradle to Cradle

Most Recyclers are loking to Export Missing an opportunity for further job Creation

PET Recycling Model Pet Bottle Distribution Consumption Selection Flake Pellets Recovery Preforms 1.76 Kg Recovery Model varies from Country to country, city to city, municipality to municipality Export Local Transformation

PET Value Chain How do we insure it is sustainable? The deeper we are willing go, the more sustainable the proposition becomes Recovery Sorting Compacting Recycler Material Sales Bulk Purchase $0.15 US/Kg $0.30 US/Kg $0.40 US/Kg $0.40 US/Kg + Tax Recover 50% of Tax 80% Export & Recover Tax Designated sites- All materials weighed at site Local Transformation Various modes of Transportation Solve For

BRAZIL MODEL CEMPRE – biz association Model based on co-operatives for power of one Added value to trash Strengthening waste pickers Personal development LAR Post-consumption Recycling models COSTA RICA MODEL Florida Bedidas – company’s business unit Picks up 50% of what it sends to the market – CSR Company owned recycling plant – Borderline profitable Sells to intermediaries

PERU MODEL Partners: Ciudad Saludable & IDB Model based on micro-business creation Associations for recyclers Personal & technical development LAR Post-consumption Recycling models GUATEMALA PILOT Bottler’s program with indigenous women - Mariposa Innovative solutions Partner with recycling plant to buy materials and produce resin for bottles

Key factors for success Environmental component: aimed at developing a sustainable waste management & recycling system Economic component: aimed at improving the income and enhancing the quality of life of recyclers Social component: stressing the human dignity of recyclers through capacity building and social inclusion Political component: working with governments to enhance national waste management systems Sustainable recycling program Environmental component Political component Economic component Social component Legal framework Market Government Society Partnerships are our success strategy! We realize we can not do this alone and we work with partners to leverage our capabilities and achieve a lasting impact.

LAR Post-consumption Recycling programs Brazil Costa Rica El Salvador Guatemala Mexico Peru Fully functional programs Pilots started in 2008 Other waste collection efforts Jamaica Puerto Rico Venezuela Argentina Colombia Chile Dominican Republic Haiti Honduras Pilots to be started in 2009

Our Values Our Know How Our Willingness Our Strong Partnership Our Commitment to Tomorrow Thank you!!! Our Right to succeed