1. Purpose
   1. Overview
   2. Performance
      1. Financial Highlights
      2. In the words of CEO Indra Nooyi
      3. Our Business & Brands
      4. Operations
   3. Human Sustainability
   4. Environmental Sustainability
   5. Talent Sustainability
   6. Responsible & Sustainable Sourcing
   7. PepsiCo Foundation
   8. PepsiCo Contributions
   9. Reporting

Financial Highlights

PepsiCo's performance and purpose are not separate—they each are linked inextricably with the other.

Significant increase in growth of the mega-brand portfolio (from 11 $1 billion brands in 2000 to 19 in 2010, all of which increased estimated worldwide retail revenues in 2010):

• Our brand/product portfolio is balanced and offers consumers choices, from "treats to healthy eats"
• The future: innovation across all categories with a focus on maintaining/growing core businesses, while delivering a robust pipeline of new products outside the core

Our strategies for growth position PepsiCo well for the future:

• Build and extend our macro-snacks portfolio
• Sustainably and profitably grow our beverage business worldwide
• Unleash the power of the Power of One
• Expand our nutrition businesses
• Cherish our PepsiCo associates
• Ensure excellent financial performance

Our businesses are poised for top-tier operating and financial performance, including cash returns, enabled by:

• Geographic flexibility
• Portfolio flexibility
• Go-to-Market flexibility
• Importance to retail customers
• Management strength

*Core results and core results on a constant currency basis are non-GAAP measures that exclude certain items. Please see pages 64 and 108 in our 2010 Annual Report for a reconciliation to the most directly comparable financial measures in accordance with GAAP.

2010 GLOBAL NET REVENUE MIX

Good-For-You

These are foods and beverages that deliver positive nutrition through the inclusion of whole grains, fruits, vegetables, low-fat dairy, nuts and seeds or significant amounts of important nutrients, while moderating total fat, saturated fat, sodium and/or added sugar. We also include products that have been specifically formulated to provide a functional benefit, such as addressing the performance needs of athletes.

Better-For-You

These are foods and beverages that have levels of total fat, saturated fat, sodium and/or added sugar that are in line with global dietary intake recommendations. Included in this category are products such as baked snacks with lower-fat content and beverages with fewer or no calories and less added sugar than traditional soft drinks.

Fun-For-You

These pleasurable products are part of PepsiCo's core food and beverage businesses, delighting consumers with great-tasting and convenient foods and drinks, often developed locally to meet local taste preferences.

Case In Point

PepsiCo's business in the Philippines is an example of a PepsiCo market broadening its portfolio of products to offer consumers a wider choice of healthier products. The business has shifted its business model with the development of a bigger portfolio of noncarbonated beverages (Tropicana, Gatorade and Lipton) and Quaker products (i.e., Quaker Ready-To-Eat brands). It has entered new categories through a range of Better-For-You and Good-For-You products that are relevant, affordable and accessible to more Filipino consumers.

By delivering better nutrition through product innovation and consumer education programs, the business has achieved market-leading status in several categories, including number-one positions in sports drinks, value-added water and hot cereals, and number two and three in energy drinks and juice, respectively.

And in doing so, it has achieved incremental volume, channel distribution and improved profitability, positioning the company for long-term sustainable and profitable growth.