Sustainable Farming & PepsiCo Digital Farming – the next Agricultural Revolution London July 2013

PepsiCo depends on a sustainable agriculture 1,3 million tonnes of potatoes 32,500 HA 120,000 tonnes of oats 20,000 HA 80,000 tonnes of corn 9,000 HA 7,200 tonnes of peanuts 1,800 HA 35,000 tonnes of apples 1,000 HA

The challenge for farmers is increasing Baseline 2030s By the 2030s, the area of land that is currently well or moderately suited for rain fed production will decline significantly (approx 75%)

Our response: 50 in 5 Reduce the carbon and water footprints of our core crops by 50% in 5 years

Delivering 50 in 5: Four Key Platforms New Varieties Better yield, solids, lower defects Some require less fertilizer and drought tolerant icrop Precision Agronomy How and where to grow our crops Modified Agronomy: Irrigation & Fertilizers Drip-irrigation; low carbon / organic fertilizers and application Cool Farm Tool Measures results, engages growers in “what if” scenarios Process engineers in R&D Need to make it very clear what the content is Give advice on which people should attend

icrop – using science & technology for better decision making What do I need to build sustainability What sustainability? Not sure about Global Warming? Is it all Green Wash? Are we really a Leading company in this area? Want more facts about Environmental Sustainability to make up your own mind?    - Environmental Sustainability - explore and discuss the facts and how this may impact everyone in the future ENVIRONMENTAL SUSTAINABILITY: EXPLORE AND DISCUSS THE FACTS AND Continuous improvement to zero base design spec – minimum usage Process engineering and project managers to sustainable design, plan to do...helping them to build sustainable thinking into projects.

Example of icrop data

Potential for Satellite technology Parameter: Moisture (Growth, Yield, Minerals also available) Evaporation deficiency: This figure indicates the difference between potential and actual evaporation. Measured in the amount of water that could have evaporated more than actually happened. Evaporation: This figure indicates the daily loss of moisture from the soil, and thus the necessary complement to maintain the necessary moisture level in the soil. Evaporation is the change of water from the liquid phase to the gas phase. Evaporation takes place through the leafs of the crop (transpiration) and directly from the soil surface (evaporation). Precipiation surplus: This figure indicates the difference between precipitation and actual evaporation. It is an indication of the wetness of the soil. Reference evaporation: This figure indicates how much water would evaporate if there was grass that could maximally grow. PepsiCo Confidential PepsiCo Confidential 8

CFT – Cool Farm Tool The Cool Farm Tool (CFT) was developed as a Microsoft Excel spreadsheet by Unilever and the University of Aberdeen and the Sustainable Food Lab to help growers measure and understand on-farm greenhouse gas emissions. The tool is designed to be simple to use, but scientifically robust. The CFT has been tested by PepsiCo andv we are using it to work with our suppliers to measure, manage, and reduce greenhouse gas emissions in the effort to mitigate global climate change

Our progress towards 50 in 5 We have completed 2 years out of the 5-year journey on precision agronomy in UK towards out target of “50-in-5” – 50% reductions in carbon and water over 5 years At end of Crop 12 ADAS interim report shows we are currently at 12% Carbon reduction, and 65% water reduction This is despite Crop 12 being 20% lower yielding than Crop 10. Had yield been parity to Crop 2010, we would be closer to a 29% carbon reduction so far. Water figure is very low – but distorted significantly by the torrential Crop 12 season Yield T/Ha Carbon Kg/T Water m3/T 2010 Baseline 46 123 21 2011 53 107 14 2012 37 108 7 Reported Status -20% -12% -65% Status with a “Normal” Yield - -29% -73%