Performance with Purpose The Promise of PepsiCo PepsiCo, Inc. 2010 Annual Report Annual Inc. 2010 PepsiCo, 2010 Annual Report WorldReginfo - 6198c595-0444-46eb-bb8a-5c699d6c5157 Shareholder Services Corporate Headquarters All of the inks used in this annual report were PepsiCo, Inc. formulated with soy-based products. Soy ink BuyDIRECT Plan 700 Anderson Hill Road is naturally low in VOCs (volatile organic com- Interested investors can make their initial pur- Purchase, NY 10577 pounds, chemical compounds that evaporate chase directly through BNY Mellon Shareowner Telephone: 914-253-2000 and react to sunlight) and its usage can reduce Services, transfer agent for PepsiCo and emissions causing air pollution. PepsiCo Website Administrator for the Plan. A brochure detailing www.pepsico.com PepsiCo continues to reduce the costs and envi- the Plan is available on our website ronmental impact of annual report printing and www.pepsico.com or from our transfer agent: © 2011 PepsiCo, Inc. mailing by utilizing a distribution model that Good for PepsiCo, Inc. PepsiCo’s annual report contains many of the drives increased online readership and fewer c/o BNY Mellon Shareowner Services valuable trademarks owned and/or used by printed copies. P.O. Box 358015 PepsiCo and its subsidiaries and affiliates in the We hope you can agree that this is truly Pittsburgh, PA 15252-8015 United States and internationally to distinguish Performance with Purpose in action. You can Telephone: 800-226-0083 products and services of outstanding quality. learn more about our environmental efforts at 800-231-5469 (TDD for hearing impaired) All other trademarks featured herein are the www.pepsico.com. property of their respective owners. all... pf Photography 201-680-6685 (Outside the U.S.) 201-680-6610 (TDD outside the U.S.) E-mail: [email protected] Website: www.bnymellon.com/ PepsiCo Values shareowner/equityaccess Our commitment: Other services include dividend reinvestment, To deliver Sustained Growth direct deposit of dividends, optional cash through Empowered PEOPLE QR Codes investments by electronic funds transfer or acting with Responsibility A QR (Quick Response) code is a two-dimensional check drawn on a U.S. bank, sale of shares, and building Trust. code that directs users to a specific web des- online account access and electronic delivery tination, video or application. Readers should of shareholder materials. Guiding Principles scan the code using the camera on their Financial and Other Information smartphone and an application specific to the We must always strive to: PepsiCo’s 2011 quarterly earnings releases are phone’s operating system. Here are a few Care for customers, consumers and the world expected to be issued the weeks of April 25, July QR code readers we recommend: we live in. 18, October 10, 2011 and February 6, 2012. www.scanlife.com, www.i-nigma.com, Sell only products we can be proud of. www.neoreader.com. The URLs that are coded Copies of PepsiCo’s SEC filings, earnings and Speak with truth and candor. into the four QR codes are: other financial releases, corporate news and Balance short term and long term. additional company information are available Win with diversity and inclusion. Walkers “Do Us a Flavour” Campaign on our website www.pepsico.com. Respect others and succeed together. www.tinyurl.com/pepsico1 PepsiCo’s CEO and CFO Certifications required under Sarbanes-Oxley Section 302 were filed as Frito-Lay All-Natural Ingredients an exhibit to our Form 10-K filed with the SEC www.tinyurl.com/pepsico2 on February 18, 2011. PepsiCo’s 2010 Domestic Company Section 303A CEO Certification was PepsiCo India filed with the New York Stock Exchange www.tinyurl.com/pepsico3 (NYSE). In addition, we have a written state- ment of Management’s Report on Internal Environmental Profile PepsiCo Talent Sustainability Control over Financial Reporting on page 103 of www.tinyurl.com/pepsico4 Photography: Four Square Studio, Bobby Fisher, Victor Borisov, David Goldman/AP Images for Frito-Lay North America, James Schne this annual report. If you have questions regard- This annual report paper is Forest Stewardship ing PepsiCo’s financial performance contact: Council (FSC) certified, which promotes envi- ronmentally appropriate, socially beneficial Independent Auditors and economically viable management of the KPMG LLP world’s forests. This report was printed with 345 Park Avenue the use of 100 percent certified renewable wind New York, NY 10154-1002 power resources, preventing approximately Telephone: 212-758-9700 Printing: Sandy Alexander Inc. 14,000 pounds of carbon dioxide greenhouse gas emissions from reaching the environment. This amount of wind-generated electricity is equivalent to approximately 12,000 miles not driven in an automobile or approximately 1,000 trees being planted. Design: Addison www.addison.com WorldReginfo - 6198c595-0444-46eb-bb8a-5c699d6c5157 is good for business. At PepsiCo, Performance with Purpose means delivering sustainable growth by investing in a healthier future for people and our planet. As a global food and beverage company with brands that stand for quality and are respected household names — Pepsi-Cola, Lay’s, Quaker Oats, Tropicana and Gatorade, to name but a few — we will continue to build a portfolio of enjoyable and healthier foods and beverages, find innovative ways to reduce the use of energy, water and packaging, and provide a great workplace for our associates. Additionally, we respect, support and invest in the local communities where we operate, by hiring local people, creating products designed for local tastes and partnering with local farmers, governments and community groups. Because a healthier future for all people and our planet means a more successful future for PepsiCo. This is our promise. 1 WorldReginfo - 6198c595-0444-46eb-bb8a-5c699d6c5157 Human Sustainability Providing people with choices... At PepsiCo, our promise is to encourage education and compelling programs to people to live balanced and healthier lives. encourage physical activity. But choice is We’re committed to offering balance in the key. By 2020, we intend to triple our portfolio for consumers to have a our portfolio of wholesome and enjoyable range of enjoyable and wholesome foods offerings, while staying committed to and beverages. We believe it’s about the great taste and convenience that are providing people with choices, options to expected of our great brands. manage their portions, better nutrition 2 PepsiCo, Inc. 2010 Annual Report WorldReginfo - 6198c595-0444-46eb-bb8a-5c699d6c5157 is good for business. Health-conscious consumers who with an unparalleled distribution system, seek more wholesome food and beverage we are uniquely situated to lead the way choices are increasingly a large and in these changing market dynamics. powerful force in the marketplace. At the We believe the expansion of our Good- same time, the changing global economy for-You portfolio will help PepsiCo attain has deepened the demand for both a competitive advantage in a global quality and value. As the world’s second- packaged-nutrition market valued today largest food and beverage business at $500 billion — and growing. 3 WorldReginfo - 6198c595-0444-46eb-bb8a-5c699d6c5157 Environmental Sustainability Supporting our planet... Respecting humanity’s right to water and with global non-governmental organizations, other natural resources is a priority for national governments, local farmers and PepsiCo. That’s why we have invested in agronomists to pursue more sustainable research, systems and facilities improvements. growing practices, improve crop yields and All of which decrease waste to landfills, support local growing collaboratives. create more sustainable packaging, reduce These initiatives are simply the right thing to our carbon footprint, lower our energy and do, and they also demonstrate PepsiCo’s water use and improve the efficiency of our interest in the development of the agricul- operations. It’s also why we continue to work tural supply chain in emerging markets. 4 PepsiCo, Inc. 2010 Annual Report WorldReginfo - 6198c595-0444-46eb-bb8a-5c699d6c5157 is good for business. Being a “good company” is good for use, so we may continue to minimize society and the communities where we waste and move toward significant operate, and it is an imperative for environmental goals. These actions are increasing our profitability. Environmental helping to protect the communities initiatives help us identify business syner- where we operate, while strategically gies and cut our operating costs. Equally transforming our operations for long- important is improving efficiencies in term efficiency and sustainable growth. packaging materials, water and energy 5 WorldReginfo - 6198c595-0444-46eb-bb8a-5c699d6c5157 Talent Sustainability Investing in our people... Helping our associates succeed and supporting our associates, their families acquire the skills that enable growth also and the communities where they live and will help to sustain PepsiCo’s long-term we operate through local job creation, growth. A key component is attracting wellness initiatives and matching charitable and developing the best people and contributions. We do all of this because empowering them to be innovative, take we care about our associates, and on new responsibilities and pursue because PepsiCo is successful when our exciting opportunities for themselves and people are empowered to develop their the company. We’re also committed to skills and lead healthier lives.