The Quaker Oats Company Presented by: Maria Cabarrus Scott Holmes Richard Ramos David Seid

Overview History Leadership Products Financial performance Social responsibility Outlook and future goals

History 1901 : The Quaker Oats Co. 1856 : Akron, OH 1877 : Ravenna, OH Ferdinand Schumacher 1901 : The Quaker Oats Co. 1877 : Ravenna, OH Henry Parsons Crowell

A Few Highlights 1983 – Gatorade acquired 1987 – Brookstone divested 1991 – Fisher-Price spun off 1994 – Snapple acquired 1997 – Snapple divested 2001 – merger with PepsiCo, Inc.

Leadership Robert S. Morrison Chairman, President and CEO

Thirst Quencher Gatorade #1 sports beverage worldwide

Athletes They Fuel

Hot Cereals Record high sales 124-year-old brand

Ready-to-eat Cereals

On-the-go Snacks Fastest growing New flavors Top-selling

Golden Grain

International U.S. and Canada Latin America Europe and Asia/Pacific

Another Great Year Year ended December 31 $ in millions (except per share data) 2000 1999 Net sales $5,041.0 $4,725.2 Net income $360.6 $455.0 Number of employees 11,858 11,666 Per common share $2.71 $3.36 Dividends declared $1.14 Average number of common shares outstanding 131,689 134,027 Source: The Quaker Oats Company 2000 Annual Report (page 18)

Financial Performance Annual Sales 15% - 3% 12% - 5% 6% Source: The Quaker Oats Company 2000 Annual Report (page 25)

International Sales Source: The Quaker Oats Company 2000 Annual Report (page 25)

Mega-brand Sales $2.1 billion $1.4 billion Source: www.quakeroats.com

Top U.S. Food & Beverage Companies in 2000 Company Total Sales in 2000 (In millions of dollars) 1. Kraft 34,679 2. ConAgra Foods Inc. 25,386 3. PepsiCo Inc. 20,144 4. Cargill Inc. 22,200 5. The Coca-Cola Co. 20,458 10. Sara Lee Corp. 7,915 12. Kellogg Co. 6,954 19. The Quaker Oats Co. 5,041 Source: Standard and Poor’s Industry Surveys (July 2001)

How They Compare (In millions of dollars) Source: Standard and Poor’s Industry Surveys (July 2001)

How They Compare Source: Standard and Poor’s Industry Surveys (July 2001)

Social Responsibility Literacy and education Nutrition Hunger relief

Community Involvement

Goal Simplicity Innovation Passion

A Winning Formula For Value Top-line Growth Profitable Growth Brand Building Cost Savings / Efficiency Innovation

References The Quaker Oats Company Annual Report 2000 Standard and Poor’s Industry Survey (July 2001) www.quakeroats.com www.kraft.com

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