1. PepsiCo... Not Just a Soda and Chip Company Ron Parker Senior Vice President, Human Resources PepsiCo North America October 16, 2007

3. Why Performance with Purpose? PepsiCo has respected history of: – Strong financial performance (Performance) AND – Corporate social responsibility within value-based culture (Purpose) Performance with Purpose combines PepsiCo’s commitments to both Performance and Purpose to better serve the communities in which we live and work. It is only right that our actions and our products reflect and respond to increased social consciousness among our consumers of all ages and across the globe. PepsiCo has respected history of: – Strong financial performance (Performance) AND – Corporate social responsibility within value-based culture (Purpose) Performance with Purpose combines PepsiCo’s commitments to both Performance and Purpose to better serve the communities in which we live and work. It is only right that our actions and our products reflect and respond to increased social consciousness among our consumers of all ages and across the globe.

4. How the best get even better… “Performance with Purpose empowers PepsiCo to do better by doing better.” – Indra Nooyi PepsiCo Chairman and CEO PepsiCo Chairman and CEO “Performance with Purpose empowers PepsiCo to do better by doing better.” – Indra Nooyi PepsiCo Chairman and CEO PepsiCo Chairman and CEO

5. Performance with Purpose is commitment to the people and the places we value as integral to our lives Our PwP Commitments:   Performance dimension: – – Consistent and sustained profitable growth   Purpose dimension: – – Human sustainability — — The products we make – – Environmental sustainability — — The planet we nurture – – Talent sustainability — — The people we cherish Our PwP Commitments:   Performance dimension: – – Consistent and sustained profitable growth   Purpose dimension: – – Human sustainability — — The products we make – – Environmental sustainability — — The planet we nurture – – Talent sustainability — — The people we cherish

6. Performance Builds on the outstanding results PepsiCo has delivered over the past 5 years …

7. 17 Mega-Brands

8. Outperforming the Competition EPS CAGR EPS CAGR (2000-2006) EPS CAGR EPS CAGR (2000-2006) F&B Revenue CAGR F&B Revenue CAGR (2000-2006) F&B Revenue CAGR F&B Revenue CAGR (2000-2006) 6% 10% 8% 13% * Peer Group includes Nestle, Kraft, Unilever, Coca Cola, General Mills. Revenue CAGR is for Food & Beverage only. EPS is total Co. Continuing Operations.

9. Those results are the outcome of 3 categories of Advantages: Structural Advantages Capability Advantages Cultural Advantages Structural Advantages Capability Advantages Cultural Advantages

10. Now we need to build our future Performance … To do that we are focusing on 5 Priorities: – Step Up International Growth Judiciously – Deliver Breakthrough Innovation & "Cut- through" Marketing – Deliver Breakthrough Innovation & "Cut- through" Marketing – Leverage Supply Chain as a Center of Excellence Worldwide – Leverage Supply Chain as a Center of Excellence Worldwide – Make Every Penny a Prisoner through Unmatched Productivity – Recommit to Our Successful Ownership Culture To do that we are focusing on 5 Priorities: – Step Up International Growth Judiciously – Deliver Breakthrough Innovation & "Cut- through" Marketing – Deliver Breakthrough Innovation & "Cut- through" Marketing – Leverage Supply Chain as a Center of Excellence Worldwide – Leverage Supply Chain as a Center of Excellence Worldwide – Make Every Penny a Prisoner through Unmatched Productivity – Recommit to Our Successful Ownership Culture

11. Purpose But we can never reach our fullest potential – personally and professionally – if we only focus on Performance Performance balanced with Purpose is critical … because it's the right thing. It will take PepsiCo's foundation of strength and build on it to create an even more dynamic company that benefits all the communities we serve around the world. But we can never reach our fullest potential – personally and professionally – if we only focus on Performance Performance balanced with Purpose is critical … because it's the right thing. It will take PepsiCo's foundation of strength and build on it to create an even more dynamic company that benefits all the communities we serve around the world.

12. Purpose: Focusing on 3 vital areas Human Sustainability Environmental Sustainability Talent Sustainability Human Sustainability Environmental Sustainability Talent Sustainability

13. Human Sustainability Begins with our products and commitment to nurture the consumer. PepsiCo’s H&W journey more than decade old (Tropicana acquisition, Quaker merger and Smart Spot, to Izze and Naked Juice acquisitions.) Former CSD and salty snack portfolio now spans fun-for-you treats to healthy eats. Must meet and exceed consumers’ changing demands – taste/enjoyment + good-for-you/better-for-you products. Focus on innovation to continually improve portfolio. Begins with our products and commitment to nurture the consumer. PepsiCo’s H&W journey more than decade old (Tropicana acquisition, Quaker merger and Smart Spot, to Izze and Naked Juice acquisitions.) Former CSD and salty snack portfolio now spans fun-for-you treats to healthy eats. Must meet and exceed consumers’ changing demands – taste/enjoyment + good-for-you/better-for-you products. Focus on innovation to continually improve portfolio.

14. Smart Spot Revenues Source: PepsiCo North American Sales “Fun For You” 63% Q2 2007 Smart Spot 44% “Fun For You” 56% +7 pts 2003 Smart Spot 37% 2010 Smart Spot 50%

15. Human Sustainability Grounded On Strong Consumer Need Meet a spectrum of H&W needsDeliver H&W on their terms Get them through the dayNourish their souls

16. Improving Healthfulness of Core Products Commitment To Portfolio Transformation

17. Driving Growth of Better-for-You Brands

18. Commitment To Portfolio Transformation Acquisitions that deliver nutrition

19. Non-Carb Beverage Portfolio

20. A Leading Promotion of Active Lifestyles

21. A Leading Policy to Improve School Offerings

22. Environmental Sustainability Focus on reduction, conservation and replenishment of the precious resources in the communities in which we live and work.

23. Energy & Water Productivity 60 70 80 90 100 '99'00'01'02'03'04'05'06'07 27% Reduction BTU / Lb 40 50 60 70 80 90 100 '99'00'01'02'03'04'05'06'07 Gal / Lb 38% Reduction kwh / Lb 60 70 80 90 100 '99'00'01'02'03'04'05 '06 '07 21% Reduction PepsiCo has continually improved our use of water, fuel and electricity. Focus on Resource Conservation and higher efficiency technologies. Our 2006 conservation efforts correspond to the removal of 195 million pounds of CO2 emissions. In addition we avoided over $14 million in energy and utility costs.

24. Our Goal … Net Zero PepsiCo has demonstrated all the technologies required to virtually eliminate the environmental footprint of our manufacturing plants. Water capture and recycle Heat recovery and reuse Solar steam creation Solar electric generation Biomass steam creation Combining these technologies into a single site could reduce our consumption of natural resources by 80-90% or more.

25. Renewable Energy Credits  What are they? – Support for renewable electric generation by paying generators to create renewable electricity in the same amount that we use in our sites. – 1.1 Billion kilowatt-hours annually for PepsiCo – 628 Million kilowatt-hours annually for the Anchor Bottlers  First-Mover Advantage – Our purchase represents 20-30% of the available market for Green-e certified credits – Generated positive press with announcements – Well positioned for Green Power Leadership Award in October  Center for Resource Solutions Green-E logo – Appearing on SunChips bags in P9 – Verifies to our consumers that our credits are having a positive impact on the environment  What are they? – Support for renewable electric generation by paying generators to create renewable electricity in the same amount that we use in our sites. – 1.1 Billion kilowatt-hours annually for PepsiCo – 628 Million kilowatt-hours annually for the Anchor Bottlers  First-Mover Advantage – Our purchase represents 20-30% of the available market for Green-e certified credits – Generated positive press with announcements – Well positioned for Green Power Leadership Award in October  Center for Resource Solutions Green-E logo – Appearing on SunChips bags in P9 – Verifies to our consumers that our credits are having a positive impact on the environment PepsiCo is the largest purchaser of renewable energy certificates

26. Many Initiatives Are In Process Hybrid Film PVC Elimination Design for Recycle Source Reduction Light Weight Bottle & Finish Technology Performance Metrics Bio-polymer Technology Industry Collaboration Resource Conservation

27. Talent Sustainability Attract, hire, develop, reward and retain best and brightest Continue to enhance our diverse and inclusive workforce Cherish our People

28. The Journey’s Destination In the long term, we are trying to deliver on two key priorities: Shaping PepsiCo to reflect the consumer base we serve… from the front line to the Board room Creating an inclusive culture where every individual feels that their contributions are valued and that they can reach their full potential.... to operationalize our Values and Guiding Principles and position PepsiCo as the defining company of the 21st Century

29. A Multi-dimensional Approach PepsiCo Focuses on Three Constituencies Our Consumers Our global brands appeal to a very diverse array of global customers Our Community We must be socially responsible in every thing we and everyplace we operate Our People We must find better way to cherish each and every employee and what they bring with them

30. Accelerating the D&I Journey DiversityGovernanceCouncil Insights: human capital marketplace Strategy Application: execution metrics Sustainability Our approach begins with human capital and marketplace insights to drive strategy, application and sustainability

31. PHASE 2 2004 – present Living the Business Case Sustainable Progress Establishing an Inclusive Culture Going Global PHASE 3 2006 + Sustainability Best practices Multicultural/ Multigeneration al Full Inclusion/ Organizational Excellence PHASE 1 2000 – 2003 Articulating the Business Case Driving Diversity Groundwork for Inclusion Focusing Domestically PHASE 1 2000 – 2003 Articulating the Business Case Driving Diversity Groundwork for Inclusion Focusing Domestically Moving from compliance… to strategy… to behaviors… A Beginning With No End D&I… Connecting to Our Corporate Values

32. Catalyst Award: 2007 Award for Innovative Initiatives: Advancing Women of Color Working Mother: “A 2007 Best Company for Multicultural Women” Diversity Inc: “2006 Top 50 Co’s for Diversity” Black Enterprise: “2006 40 Best Co’s for Diversity” Hispanic Magazine “100 Co’s Providing the Most Opportunity for Hispanics” National Association for Female Execs: “2005 Top 30 Co’s for Executive Women” LATINA Style: “Top 50 Co’s for Latinas” Human Rights Campaign: “Perfect Score on Corporate Equality Index” Profiles in Diversity Journal: “Innovation in Diversity Award” FORTUNE: “Most Respected Companies” and “Top employers for Minorities” We Are Being Recognized For Our Results. 2007 Distinctions, Awards & Lists

33. Our D&I Strategy To support our long term vision, our strategy has the following 4 key components: Ensuring Sustainability and Organizational Excellence Driving Ownership and Accountability Building Capability Improving Representation

34. PepsiCo... More Than Just a Soda and Chip Company! Thank you!

35. Q&A