Performance with Purpose The Promise of PepsiCo

Rob MeyersDirector

Environmental Sustainability

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What comes to mind when thinking about PepsiCo?

PepsiCo Mega BrandsOur 19 billion dollar brands

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4

3,000 products worldwide

More than $300 MM inretail sales per day

300,000associates

acrossthe globe

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Diverse Portfolio

PepsiCo Overview

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One of the largest agricultural enterprises in the world

PepsiCo Overview

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Scale operating businesses in emerging markets around the world

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Based on 2010 results

Russia

Turkey

Poland

Colombia

Chile

China

India

Saudi Arabia

Egypt

South Africa

Turkey

Poland

Romania

Ukraine

India

Vietnam

Egypt

China

Mexico

Russia Mexico Brazil

PepsiCo Overview

Snacks

> $1

B>

$0.2

B

Beverages

> $1

B>

$0.2

B

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Delivering Performance with Purpose

Delivering Performance with Purpose

Document Title Goes Here 9

Delivering Our Performance with Purpose

• Sustainability is realized in every part of our global business

• Sustainability is woven into the fabric of our brands—guiding how they do business while generating significant sourcing, operational and consumer impacts that benefit our top and bottom lines

Delivering Performance with Purpose

11Encouraging people to live healthier

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Human Sustainability

• Providing people with choices is good for business

• Developing great-tasting, nutritious and convenient food and beverages

• Providing options to manage portions

• Initiating physical activity programs

• Getting insight—local products start with the consumer

Human Sustainability

14Investing in our associates

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Talent Sustainability

• Investing in our people is good for business

• Attracting and developing the best people

• Supporting our associates, their families and the communities where they live

• Creating local jobs• Implementing wellness initiatives• Matching charitable contributions

Talent Sustainability

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17Protecting the Earth’s natural resources

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Environmental Sustainability

• Supporting our planet is good for business

• Investing in research as well as systems and facilities improvements

• Working to eliminate solid waste to landfill

• Reducing carbon footprint• Striving for positive water impact• Pursuing sustainable agriculture

Environmental Sustainability

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Environmental Sustainability Journey

Tropicana Pure Premium orange juice became the first consumer brand in North America to certify

its carbon footprint

1999 2002

2004 2006 2001

2005

PepsiCo formalizes

sustainabilityinitiative

Environmental Task Force formed to

share best practices

Established a goal of 10% PET recycled content in plastic bottles in the US

Sustainability Vision

defined

Awarded LEED Gold Level Certification

for Frito-Lay distribution center

Admitted to Dow Jones Sustainability

World Index

2007

Walkers was the first major food brand in the world to display a carbon footprint reduction logo on

its packaging

2009

PepsiCo, an Energy Star partner since

2007, was awarded the Energy Star Sustained

Excellence Award

2009

2008

PepsiCo India achieves positive

water balance

2009

Dream Machine recycling initiative launched to

help increase US recycling rate

2010

2011

PepsiCo develops world’s first

100% plant-based, renewably sourced

PET bottle

Market-tested our first-ever 100%

compostable snack bag for SunChips

Environmental Sustainability

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3

1

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Synchronize the needs of business & society

2 Secure our supply chain & make more resilient

Sustain the right to operate from our stakeholders

Satisfy consumer demand

Synthesize new productivity opportunities

The “Five S” framework that forms the business case for sustainability within Operations is largely about

minimizing diverse risks to the business…

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Environmental sustainability unleashes significant productivity opportunities across PEP

Bio Mass / Gas High MPG Fleet Beverage Packaging

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Recyclable 

Seasoning Bags

Membrane 

Bioreactors

Heat Recovery Power Partnerships Green Coolers5S

ynth

esiz

e ne

w p

rodu

ctiv

ity o

ppor

tuni

ties

Biomass BoilerSolar Energy

Membrane Bioreactor

Compostable Bags

1% LF, Pkg. & Finish Waste

LEED Gold

Eco Ambassadors

High-MPG Route Trucks

Waste Heat Recovery

Enviro. Compliance

Case Study Casa Grande Near NetZero

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Showcase of our EnvironmentalSustainability Commitment

1. Water Recycling

2. Renewable Steam 3. Renewable Electricity

MBR at 75% Recycling

Water Recycling Systems

MBR Feed(Clarifier Effluent)

BioreactorMixed Liquor

MBRPermeate

NanofilterConcentrate

NanofilterPermeate

Bio Mass Boiler started up June 2011

Biomass Boiler System Basis of Design:Capacity 60,000 Lbs/ Hr.Efficiency >70% Fuel: Wood Chip ~ 7,000 BTU/lb

TDF ~ 10,000 BTU/lbCurrent Plant Steam Demand 22,000- 28,000 lbs/hr% Utilization 37 – 50

System Details•Alpha Saturated Steam Water Tube Boiler•60,000 pph•450 psig (MAWP)•Fixed Incline Grate•Fuel: Wood Chips & TDF (7% Max)•Combustion Air: ID, OFA, & FD Fans•Back-Pass: Economizer & Air Heater•Emission Control: Multicyclone, ESP, & SCR•Bottom Ash and Fly Ash Handling Systems•TDF & Wood Chip Unloading Systems

5 Solar Fields – 3 Types of Technology

36 Acre Agricultural Field

FL 6,244 ModulesAPS / SPP 11,757 ModulesTotal 18,000 Modules ~5MW PeakSuntech/Gloria Modules and Single Axis Ray Trackers

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Innovative Solar Technology

Net Zero Layout

Solar Panels

(FL/SPP)

Parking PV

Office

Undisturbed Land

WHSEBio Mass

Boiler

Solar Concentrators

Sterling Engines

MBR

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Closing Message: Good business is good for all

Performance with Purpose is not a stand-alone initiative. Our sustainability goals across the four planks are woven into the fabric of our brands, and strengthened by our partnerships and the Power of One. Performance with Purpose guides how we do business, while reducing negative sourcing, operational and consumer impacts that simultaneously improve our top and bottom lines.