Indra NooyiChairman and Chief Executive Officer

Hugh JohnstonChief Financial Officer

Indra NooyiChairman and Chief Executive Officer

Hugh JohnstonChief Financial Officer

PepsiCo Second Quarter 2012 Earnings CallJuly 25, 2012PepsiCo Second Quarter 2012 Earnings CallJuly 25, 2012

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Safe Harbor Statement of Terms & Non-GAAP Information

Note: This presentation should be viewed in conjunction with PepsiCo’s Q2 2012 earnings call

Safe Harbor Statement• Statements in this communication that are "forward-looking statements,” including PepsiCo’s 2012 guidance, are based on currently available information, operating plans and

projections about future events and trends. Terminology such as “believe,” “expect,” “intend,” “estimate,” “project,” “anticipate,” “will” or similar statements or variations of such termsare intended to identify forward-looking statements, although not all forward-looking statements contain such terms. Forward-looking statements inherently involve risks anduncertainties that could cause actual results to differ materially from those predicted in such forward-looking statements. Such risks and uncertainties include, but are not limited to:changes in demand for PepsiCo’s products, as a result of changes in consumer preferences and tastes or otherwise; PepsiCo’s ability to compete effectively; unfavorable economicconditions in the countries in which PepsiCo operates; damage to PepsiCo’s reputation; PepsiCo’s ability to grow its business in developing and emerging markets or unstablepolitical conditions, civil unrest or other developments and risks in the countries where PepsiCo operates; trade consolidation or the loss of any key customer; changes in the legaland regulatory environment; PepsiCo’s ability to build and sustain proper information technology infrastructure, successfully implement its ongoing business transformation initiativeor outsource certain functions effectively; fluctuations in foreign exchange rates; increased costs, disruption of supply or shortages of raw materials and other supplies; disruption ofPepsiCo’s supply chain; climate change, or legal, regulatory or market measures to address climate change; PepsiCo’s ability to hire or retain key employees or a highly skilled anddiverse workforce; failure to successfully renew collective bargaining agreements or strikes or work stoppages; failure to successfully complete or integrate acquisitions and jointventures into PepsiCo’s existing operations; failure to successfully implement PepsiCo’s global operating model; failure to realize anticipated benefits from our productivity plan; anydowngrade of our credit ratings; and any infringement of or challenge to PepsiCo’s intellectual property rights.

• For additional information on these and other factors that could cause PepsiCo’s actual results to materially differ from those set forth herein, please see PepsiCo’s filings with theSEC, including its most recent annual report on Form 10-K and subsequent reports on Forms 10-Q and 8-K. Investors are cautioned not to place undue reliance on any suchforward-looking statements, which speak only as of the date they are made. PepsiCo undertakes no obligation to update any forward-looking statements, whether as a result of newinformation, future events or otherwise.

Non-GAAP Information• Please refer to the “Investors” section of PepsiCo’s web site at www.pepsico.com under the heading “Investor Presentations” to find disclosure and a reconciliation of any non-GAAP

financial measures contained herein.

Glossary• Please refer to the Glossary and attachments to our July 25, 2012 earnings release for the definitions of core, constant currency, organic and certain other terms used

herein. Beginning with the second quarter of 2012, organic results exclude the impact of foreign exchange translation.

Indra NooyiChairman and Chief Executive OfficerIndra NooyiChairman and Chief Executive Officer

PepsiCo Second Quarter 2012 Earnings CallPepsiCo Second Quarter 2012 Earnings Call

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• Consumer Behavior, Competitive Landscape, and Commodities In-line With Expectations

• Balanced Revenue Management Led to 5 Percent Organic Net Revenue Growth1

Q2 Results In-Line with Expectations

1. Represents a Non-GAAP financial measure that excludes certain items. For a description of these items, please refer to “Reconciliation of GAAP and Non-GAAP Information” in the “Investors” section of PepsiCo’s website at www.pepsico.com

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• Reported Net Revenue Impacted by Structural Changes and Foreign Exchange

• Strategic Benefits of Refranchising Transactions

‐ Strengthen Operations

‐ Improve Operating Margins and Key Efficiency Metrics

‐ Improve Returns on Capital

Reported Results Impacted by Transactions

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• Core EPS of $1.121

• 5 Percent Organic Net Revenue Growth1

• 4 Percent Global Effective Net Pricing

• Grew Organic Net Revenue1 in Global Snacks & Global Beverages

• 9 Percent Organic Net Revenue Growth1 in Emerging and Developing Markets

Financial Highlights for Q2

1. Represents Non-GAAP financial measures that exclude certain items. For a description of these items, please refer to “Reconciliation of GAAP and Non-GAAP Information” in the “Investors” section of PepsiCo’s website at www.pepsico.com

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We Remain Focused on 5 Key Initiatives

Innovation

21Brand

Building

3Execution

4Productivity

5Driving Cash

Returns

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• On Track to Increase Advertising and Marketing to 5.7 Percent of Net Revenue in 2012‐ Focusing on 12 Global Mega Brands‐ Greater Global Coordination to Leverage Creative and Production Activities Across

Multiple Geographies‐ Consistency in Brand Messaging, Cost Leverage

• US Media Spend Up Over 40 Percent in Q2 and Over 30 Percent Year to Date

• Brand Equity Scores Stabilizing and Expect to See Progress Over the Course of the Year

Brand Building

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Targeted Innovation with Particular Focus on Mega Brands

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FLNA Innovation Drove Incremental Sales All Across the Portfolio

Doritos JackedUltimate Extreme

Snacks

Doritos Locos TacosPartnerships in Other Channels

Ruffles UltimateContinues to gain distribution,

helped drive mid-single-digit sales growth for trademark Ruffles

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Growth Ventures Driving Premium and Value Innovation

Stacy’s & Smartfood SelectsDouble-Digit Gains

Lay’s Stax & Taqueros Del SurDriving Value Innovation

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Pepsi Next Launching New Flavors

Pepsi Next

Pepsi Next Off To A Strong Start

Launching Two New Flavors –Pepsi Next Cherry Vanilla and Pepsi Next Paradise Mango

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Gatorade Product Innovation and Differentiated Packaging

Gatorade

Recent Introduction of Gatorade Prime Chews (in 3 Flavors)

Introduction of Differentiated Packaging

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Quaker Innovation Driving Sales Growth and Share Gains

Quaker Real MedleysPremium Single Serve Cup of

Hearty Rolled Oats & Whole Grains With Chunks of Real Fruits and Nuts

Quaker Yogurt Bars Granola Bars with Yogurt

Flavored Coating

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Driving Execution Across Our Businesses

Power of One“Rock Your Summer”

Campaign

Strong Growth in Emerging Markets

#1 Contributor to C-Store Revenue Growth in the U.S.

Source: IRI

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On-Track To Deliver 2012 Productivity

Expect ~$1.1 Billion in Productivity in 2012 and $3 Billion in Total Over the Next 3 Years

Executing Restructuring

Program

Reducing Capital Intensity & Improving Working

Capital Efficiency

Leveraging Global Capability

& Know-How

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Returning Cash to Shareholders

• Returned $2.8 Billion to Shareholders in First Half of 2012 and Expect to Return More Than $6 Billion for the Full Year 2012

• 40th Consecutive Year of Dividend Increases

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Innovation

21Brand

Building

3Execution

4Productivity

5Driving Cash

Returns

Making Good Progress And Confident in Achieving Our 2012 Goals in These 5 Initiatives

Hugh JohnstonChief Financial OfficerHugh JohnstonChief Financial Officer

PepsiCo Second Quarter 2012 Earnings CallPepsiCo Second Quarter 2012 Earnings Call

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Brand Strength and Innovation

81%

85%

Q1 Q2

2012

Brand Equity Holding or Gaining1

Brand Strength

~7%

2012 Q2 YTD

% of Net Revenue2

Innovation

1. Source: Millward Brown. Data is for Key Brands in Strategic Markets

2. Measured on a Constant Currency Basis Based on Internal Company Estimates

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Execution and Value Share

• Gaining/Holding LRB Share3 Versus Primary Competitor in Majority of Strategic Markets

• Savory Share Results3

Mixed But Improving

1.00.6

Q1 Q2 -0.6

0.5

5963

Other PEP

3235

Other PEP

Q1 Q2

When Salty IsWhen CSD Is

PEP Share of CSD Purchases with Salty Snack

PEP Share of Salty Purchases with a CSD

SaltyCSDChange in Share of U.S. Inventory on Display – 2012 vs. PY1

Execution Value Share

Co-Incidence of Purchase2

1. Source: IRI (Grocery Channel)2. Source: IRI Household Panel, 12 Months Ending June 3, 20123. For Q2 YTD Versus Prior Year

+2ptAdvantage

Improvementvs. PY

+1ptAdvantage

Improvementvs. PY

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Financial Metrics

Cost and capex• Capex as percent of net revenue 4.4% on rolling 4-quarter basis, improvement

of more than 100 bps over prior rolling 4 quarters

• YTD operating cost reduction as % of net revenue on target

EPS • On target to deliver expected (5)% core constant currency EPS for full year ’121

Net ROIC• NOPAT and capital investment performance on target for 2012

• Expect Net ROIC to improve by 50+ bps/year beginning in 2013

Operating cash flow • On target to deliver $6 billion+ in core management operating cash flow for ‘12

Focus Area 2012 Update

1. From PepsiCo’s fiscal 2011 core EPS of $4.40. Based on current forex market consensus, FX translation would have an unfavorable impact of ~(3)pts on 2012 core EPSNote: Certain of the above represent Non-GAAP financial measures that exclude certain items. For a description of these items, please refer to “Reconciliation of GAAP and Non-GAAP Information” in the “Investors” section of PepsiCo’s website at www.pepsico.com

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As Expected, Below the Line Deleverage in Q2

Core Corporate Unallocated1 Increased in the Quarter

Higher Net Interest Expense of ~$30 Million Year Over Year Driven by Lower Interest Income and Higher Average Net Debt

Core Effective Tax Rate Of 27.8%1, 180 Basis Points Increase Year Over Year

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Drove ~3 Points of Deleverage Below the Line

1. Represents a Non-GAAP financial measure that excludes certain items. For a description of these items, please refer to “Reconciliation of GAAP and Non-GAAP Information” in the “Investors” section of PepsiCo’s website at www.pepsico.com

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2012 Guidance

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Core Constant Currency EPS Growth

Commodity Inflation

2012 Productivity

A&M % of Sales YoY Increase

Corporate Unallocated Expenses

Net Interest Expense

Core Tax Rate

Foreign Exchange Impact on Core EPS

~(5)%1

~$1.5B

~$1.1B

50 Basis Points

Increase

Increase

~27%

~(3)%2

1. From PepsiCo’s fiscal 2011 core EPS of $4.402. Based on current forex market consensusNote: Certain of the above represent Non-GAAP financial measures that exclude certain items. For a description of these items, please refer to “Reconciliation of GAAP and Non-GAAP Information” in the “Investors” section of PepsiCo’s website at www.pepsico.com

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Structural Changes Impacting 2012 Reported Revenue

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Expected to Reduce Reported Net Revenue by ~5pp in Q3, and by ~3pp in Q4

Mexico Beverage Refranchising

Change IDJ Joint Venture

Tingyi Alliance

Q4 2011

Q2 2012

Q2 2012

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Returning Cash to Shareholders

• Net Capital Spending Down 100 Basis Points as % of Net Revenue on Rolling Four Quarter Basis

• Improving Working Capital Efficiency

• Returned $2.8 billion to Shareholders Year to Date

• Continue to Expect More than $6 billion in Cash Returns to Shareholders in 2012

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Earnings Expectations Consistent with Previous Outlook

• Continue to Expect Core Constant Currency EPS to Decline by 5% in 20121

• Brand Building, Innovation, and Productivity Remain Our Investment Priorities

271. From PepsiCo’s fiscal 2011 core EPS of $4.40. Based on current forex market consensus, FX translation would have an unfavorable impact of ~(3)pts on 2012 core EPSNote: Certain of the above represent Non-GAAP financial measures that exclude certain items. For a description of these items, please refer to “Reconciliation of GAAP and Non-GAAP Information” in the “Investors” section of PepsiCo’s website at www.pepsico.com

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