PepsiCo 2009 Annual Report

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Top Line

1. In 2009–a year in which global Gross Domestic Product (GDP) declined–we grew international revenues. Over the last three years, we grew international revenues at a 13.6 percent Compounded Annual Growth Rate (CAGR), well ahead of our goal of growing at double the rate of real global GDP growth.

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Top Line

1. Pepsi Max was the fastest growing beverage internationally with a "no sugar" trademark (based on the universe of 25 markets where Max competes), following significant product launches across the Middle East and China.
2. We expanded our juice footprint and market share growth in Asia, Middle East, Africa (AMEA) following the launches of Tropicana Juice Drinks and Pulpy Sacs across India and China.
3. In Russia, we grew our beverage business by adding more than 3 points of relative market share (RMS) to the Pepsi-Cola brand.
4. We continue to build on our momentum in Russia, growing our share of savory snacks by 3.3 points. In particular, Lay's has grown 4.4 share points of savory snacks.
5. We grew our share of savory snacks in Brazil and Argentina–with the Doritos brand share of salty snacks growing by 1.4 points in Brazil.

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Top Line

1. The Pepsi-Cola brand continues to build its key taste driver of equity in over 70 percent of our core global markets, including the U.S., Canada, Thailand, South Africa and Pakistan.
2. In the U.S., top of mind awareness of our Gatorade brand continues to grow, driven by the strong resonance of the G campaign.
3. In the U.S., Doritos is now rated as the best/most preferred brand on key taste driver of equity (among 51 snack brands evaluated).
4. In Russia, the Lay's brand communication and innovation efforts are positively influencing consumers with six percent more consumers thinking of the Lay's brand before any other snack brand.
5. In the UK, awareness of the Walkers brand has grown by 3 points over an already-high leadership position following breakthrough consumer promotions such as 'Do Us a Flavor.'

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Top Line

1. Please view Cannondale Associates rankings.

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Bottom Line

1. We expanded our operating margins by 30 basis points in 2009.

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Bottom Line

1. Over the past three years, we grew management operating cash flow, excluding certain items, 250 basis points faster than core net income.*

* Core results and core results on a constant currency basis are non-GAAP measures that exclude certain items. Please refer to pages 91 and 92 of the 2009 annual report for reconciliation to the most directly comparable financial measure in accordance to GAAP.

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Corporate Governance and Values

1. PepsiCo is committed to strong corporate governance and operates pursuant to PepsiCo's Articles of Incorporation, By-Laws and Corporate Governance Guidelines, all of which are publicly available on our website at www.PepsiCo.com/Company/Corporate-Governance. In addition, all members of PepsiCo's Board of Directors are elected annually, and 11 out of 12 of our Directors are independent.
2. PepsiCo's high standards of corporate governance continue to be widely recognized. In 2009, PepsiCo was named as one of the world's most ethical companies by Ethisphere magazine.
3. PepsiCo has been included for numerous years in the Dow Jones Sustainability Index with a "best in class" score in Corporate Governance in 2009.

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Corporate Governance and Values

1. PepsiCo annually conducts global training on our code of conduct, which incorporates our statement of values. In 2009, 44,000 associates worldwide participated in code of conduct training, which was conducted in 24 languages. This number of employees trained in 2009 was 49 percent higher than in 2008.
2. Around the world, our teams bring PepsiCo's values to life in myriad ways that engage our associates. The initiatives reflect the creativity of our associates and their commitment to building trust with our stakeholders. The initiatives include: online training created by PepsiCo Americas Beverages; a "Speed of Trust" training program at Frito-Lay North America; a "Speak with Truth & Candor" program at Lebedyansky in Russia; and a dedicated values website by our Business Information Services function.