PepsiCo Confidential Talent Sustainability and Manager Quality in PepsiCo October 1 st 2010

2 PepsiCo Worldwide World second largest food and beverage producer Main business directions: soft drinks, juices, snacks, cereals The most popular brands: Pepsi-Cola, Diet Pepsi, Mountain Dew, Gatorade, Lay’s, Tropicana, Doritos, Lipton Ice Tea*, Quaker, Cheetos, 7Up, Ruffles, Aquafina**, Mirinda, Tostitos, Sierra Mist, Walkers, Fritos Company works in 200 countries Employees associates Turnover around $60 billion * Unilever brand **Aqua Minerale in Russia

3 Brands-millionaires Pepsi-cola Mountain Dew Lay’s Potato Chips Gatorade (Thirst Quencher, G2, Propel) Diet Pepsi Tropicana Beverages 7UP (outside U.S.) Doritos Tortilla Chips Lipton Teas (PepsiCo/Unilever Partnership) Quaker Foods and Snacks Cheetos Cheese Flavored Snacks Walkers Potato Crisps Mirinda Ruffles Potato Chips Aquafina Bottled Water Tostitos Tortilla Chips Sierra Mist Fritos Corn Chips Pepsi Max

4 PepsiCo in Russia and the CIS # 1 among juice & snacks manufacturers in the CIS, # 2 among soft drinks manufacturers PepsiCo production facilities: 9 plants in Russia + 2 in Ukraine, incl. Lebedyansky (№ 1 on Russian juice market) and «Sandora» (№ 1 on Ukrainian juice market)

5 Global and Local Brands portfolio

6 We are focused on three key areas: our products, the environment and people. Products: We are committed to building a fully balanced portfolio, making our treats more healthy and providing our customers with a full range of nutritious products, through the acquisition of brands like Tropicana, Gatorade, Quaker Oats, the reformulation of existing products and the introduction of new products and through joint venture alliances Environment: We are committed to respecting and preserving the natural environment and its relationship with our business. We’re focusing our environmental sustainability efforts on water, energy and packaging – the areas in which we can make the biggest impact People: We must inspire, challenge and cherish our employees by attracting, developing, rewarding and retaining the best people. We fully support diversity and inclusion and are equally committed to a diverse range of suppliers, in particular women and minority-owned suppliers Performance with Purpose

7 PepsiCo Talent sustainability strategy

8 Manager Quality is the single most important element of a compelling EVP offer Compensation & BenefitsWork EnvironmentWork-Life BalanceOrganizational Environment 3.82 Average Category Importance 3.40 Average Category Importance 3.06 Average Category Importance 3.03 Average Category Importance Compensation, as a category, is most highly valued Manager quality is the single most highly valued attribute; employees are least willing to trade it off 3.33 Average Importance for all Attributes Importance Rating (Mean)

9 Manager Quality Touchpoints Your contribution to our employees and candidates experiencing PepsiCo as an employer of choice How you create an inspiring and effective onboarding experience from day 1 through to the first 12 months How you enable employees to get the best out of their individual performance The difference you make to motivating employees through R&R How you engage with our current and future employees through effective communication How you can ensure an optimal development at every stage of an employees’ career development journey How we measure how you’re doing in delivering our promise to employees

10 Driving Manager Quality – explaining managers their role via set of seminars incl. First Time Manager Understand the huge impact you have on employee engagement every day in every interaction Role model those behaviours that are consistent with Manager Quality Use the resources available on PepsiCo University and the Manager Quality microsite Embrace the MQPI process and share your development plans with your teams Utilise our new Recruiting and On-boarding systems to secure the best talent & set them up to succeed Communicate the importance of Manager Quality to your teams and link it to business success

11 Driving Manager Quality – support via Manager Quality Microsite “One stop shop” of all Manager Quality tips, tools and processes for each of the Manager Quality touch points

12 Driving Manager Quality – via selected focused initiatives Focus

13 Key features: external selection AttractionSelection RE-launch Global careers website Correctly briefed recruitment agencies/ search firms & recruitment advertising reflective of Employer Brand Robust job analysis and clear job description Robust selection methodology and tools /upskilled line managers

14 A Multi-Faceted Approach to On-boarding in PepsiCo Europe A Multi-Faceted Approach to On-boarding in PepsiCo Europe ON-BOARDING PLAN Guiding new starters on what they need to know and when ON-BOARDING PROGRAMME A face-to-face meeting Introducing key business messages and processes DRIVING ACCOUNTABILITY Measuring the effectiveness of the on-boarding process ON-BOARDING COACH Trained on-boarding coaches for new starters LINE MANAGER OWNERSHIP Manages and takes full responsibility for the process from day 1 Our New On-Boarding Approach WELCOME PACK USB tool History of our Brands On-boarding Coach On-boarding Plan Our Products

15 MQPI overview  This process provides employees with the opportunity to rate their manager on his/her people management behaviors.  The following 12 behaviors are used to assess manager quality:  Opportunity to provide open ended comments to your manager. 1.Keeps people focused on the right priorities 2.Sets challenging but attainable performance goals 3.Constructively addresses performance issues 4.Balances a concern for results with a concern for the needs of individuals in his/her group 5.Effectively manages and works with people who are different from him/herself 6.Provides timely and direct feedback to others regarding performance or workplace issues 7.Engages in candid discussions with others regarding their career opportunities 8.Provides others with challenging assignments and training experiences to promote their development 9.Recognizes and celebrates the significant achievement of others 10.Effectively uses different rewards and incentives to drive performance 11.Gives others full credit for their ideas and contributions 12.Treats others’ concerns and issues fairly and with sensitivity and confidentiality

16 D&I Annual Operating Plan Recruitment:  Establish/implement 50/50 gender candidate slates to ensure diversity of choice  Establish Regional Monitoring mechanism of hires/Promos to instill female Representation Mindset Culture/Environment:  Establish D&I Council scope/deliverables/roles  Build D&I Awareness to the Senior Leaders Talent Development  Execute Internal and external Focus Group to understand Mfg/Sales poor female representation  Execute Plan for Finance Female bench building and Senior Leadership female developmental experiences Female representation target for 2010: 30%

17 Driving Talent Sustainability agenda via Annual People objective (50% of Overall Performance Rating) Electronic system already has People Objective categories included for employees

People agenda EER Key 2010 Regional initiativesKey questions to help define individual contribution KPI’s Manager Quality MQPI  Analyze Manager Quality Performance index 2009 and come up with concrete action steps to improve results in 2010 (All B1+)  How will you personally engage and secure the development of your Manager Quality?  How will you ensure robust MQPI development plans for your teams? (all B1+ to include MQPI objective in their PDRs)  MQPI score improved by X%  Concrete item in MQPI improved by X% On Boarding  New concept will be introduced in EER in  All hiring managers will have their role enhanced in on boarding their new subordinates.  Ensure that every new comer has structured on boarding plan  Meet on the first day and ensure objectives are discussed within first month   Measured by On boarding surveys and input used during PDR evaluation (people rating)