Driving Business Results with Oracle Comprehensive Trade Management Bob Ashford, Massimo Zanetti Beverage Boyd Smythe, PepsiCo Victor Espinoza, Chicken of the Sea Herbert Klein, Oracle Linda Peel, Oracle

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 of the corporate presentation template 2 Program Agenda Introductions Customer Profiles Interactive Discussions Q & A

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 of the corporate presentation template 3 What is Comprehensive Trade Management? Category Management Consumer Insights Trade Insights Financial Planning Fund Planning Volume Planning Promotion Planning Promotion Optimization Price Planning Calendar Optimization Sales Forecasting Promotion Tracking and Analysis Liability Estimating and Reconciling Funds Management Claims Management Strategic Objective Planning Coverage (Territory/Route) Planning Tactical Objectives Planning Visit Prioritization Visit Scheduling Visit and Activity Execution CategoryManagementCategoryManagement Account Planning RetailExecutionRetailExecution Promotion Management High Performance Infrastructure Unified Reporting Layer

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 of the corporate presentation template 4 Customer Profiles

5 Who Is PepsiCo? Global Beverages Global Snacks Global Nutrition Brands 22 billion-dollar brands Performance More than $65 billion revenue Scale >200 countries & territories People ~280,000 employees PepsiCo is a global food and beverage powerhouse. Our broad range of more than 3,000 delicious products offers consumers convenient, nutritious and affordable options in nearly every country around the world.

6 Our Trade Solution: TPO with Indirects This Week Tostitos Doritos Ruffles Sunchips Last Week Fritos Cheetos 20 Count Sunchips Baked

7 How the Business Uses It Review Event Performance Standardized Methodology Includes Cannibalization Sales & Profit Retailer Impact Every Event Timely Reporting Assess Proposed Trade Calendars Scenarios Created by Sales & Finance Teams Scenario Planning Incents Risk-Taking Automated Forecasting Analyze Promotions Nationally Set National Strategies & Forecast Impact Identify Broad Opportunities Enable Discussions of Account-Specific Opportunities

8 Future Plans & Objectives Roll Out to New Account Teams Continue Improving Inputs & Accuracy Embed Fully into Processes Develop Additional Tools

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 of the corporate presentation template 9 Massimo Zanetti Beverage USA We are a privately owned vertically integrated Coffee Company – Part of a Global Coffee group based in Italy with over 100 years of coffee experience. – Serving the At-home and Away from home Coffee market with Branded and Private Label coffee products. – We grow, harvest, mill, roast, grind, package, and drink Coffee! – One of the Largest Coffee companies in North America 7 Locations, ~1,000 MZB associates in North America WE MAKE COFFEE!!!! Bob Ashford, VP IT and Single Serve

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 of the corporate presentation template 10 Massimo Zanetti Beverage USA Distinguished Brands of Coffee and Espresso

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 of the corporate presentation template 11 Corporate Brand Customers Massimo Zanetti Beverage USA

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 of the corporate presentation template 12 TPM Solution – One system, Three functions Promotion Planning and Management – (~3,500 annual promotions) Deduction Management – (~12,000 annual trade based deductions ) Integrated Forecast engine – Significant improvements in forecasting – Improved efficiency

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 of the corporate presentation template 13 Trade Management Enter and manage Promotional activity at multiple aggregation levels Compare promotion alternatives Determine most profitable plan View trade-fund balances in real-time Plan the Trade Promotions with Statistical Information Control of discretionary spending Manage trade spending with promotional lifts and what-if analysis Trade Promotion Management

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 of the corporate presentation template 14 Promotions entered by Sales reps, Brokers, or Sales support team Statistical Lift generated using the Analytic Engine Promotion Lifts reviewed and modified by Sales reps, Sales Support, and Planning group via overrides Promo Lift values synchronized to DM module for Planned promotions Promo Approval process executed Approved Promotions set to Committed status Shipments loaded weekly into Demantra from ERP Accruals calculated based on shipments Accruals posted to ERP(GL) (Based on Accrual report) Deduction Settlement process executed (see DSM Process) Promotion Planning Process Promotions entered by Sales reps Statistical Lift generated by Engine Promo Lift values synchronized to DM module Promo Approval process executed Promo Lifts reviewed / modified via overrides Approved Promotions set to Committed status Accruals calculated based on shipments Accruals posted to ERP (GL) DSM process executed (see DSM Process) Shipments loaded into TPM/forecasting software from ERP Massimo Zanetti – Promotion Planning Process

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 of the corporate presentation template 15 Deduction Settlement Provide single system access to Deductions and Promotions allowing for an efficient settlement process Provide real-time management of trade spending based on all phases (projection, execution, reconciliation) Settle deductions with in promotion planning system Integrated Deduction Settlement Process Enable real-time collaboration of promotional and deduction settlement activities Deduction Settlement Management

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 of the corporate presentation template 16 Fund management Budget allocation with trade- fund execution capabilities Control of discretionary spending by product, group, customer, etc. Track trade spending based on Promotion Plans Detailed Trade Spend Management Provide real-time views of projected and actual trade spending based on promotional activity and deduction settlement process Trade Spending

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 of the corporate presentation template 17 Future Journey Current Focus Advanced Forecasting and Modeling Additional focus on AFDM Possible additional engine tuning Trade Promotion Optimization Further organizational focus Production Scheduling Product sequencing Changeover minimization Future Focus Supply Planning Advanced Supply Chain Planning / Constraint based optimization (ASCP) Rapid Planning (RP)

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 of the corporate presentation template 18 Changes and Benefits Benefits 20% increase forecast accuracy improvement 20% increase inventory turns 30% less total inventory on increased sales volume – while maintaining 98% customer fills rates Stronger order fulfillment Shorter cash-to-cash cycle times Process change enabled by People, Organization, and technology Changes Combined unified system for Forecasting and Promotions Management Reviews Key Learnings Business and IT resource requirements Project needs to be driven by the Business and IT Strong leadership requirement Future support resources should be available from the project start Choose the right implementation partner - Project was on time and on budget

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 of the corporate presentation template 19 Summary Selection Process Workshops and presentations Requirements analysis with agreed scope Budget approval Business Challenge Very competitive market Extreme aggressive timeline Business Case Statistical forecast Manage trade spending Measure and optimize the promotional lift Compare promotion alternatives Replacement of an existing TPM - (no forecasting) Footprint JD Edwards E1 Demantra DM, PTP, DSM

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 of the corporate presentation template 20 Questions ?

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 of the corporate presentation template 21 Graphic Section Divider