Talent Sustainability and Manager Quality in PepsiCo

1. Talent Sustainability and Manager Quality in PepsiCo October 1st 2010

2. PepsiCoWorldwide • Worldsecond largest food and beverage producer • Main business directions: soft drinks, juices, snacks, cereals • The most popular brands: Pepsi-Cola, Diet Pepsi, Mountain Dew, Gatorade, Lay’s, Tropicana, Doritos, Lipton Ice Tea*, Quaker, Cheetos, 7Up, Ruffles, Aquafina**, Mirinda, Tostitos, Sierra Mist, Walkers, Fritos • Company works in 200 countries • Employees285 000 associates • Turnover around$60 billion *Unilever brand **Aqua Minerale in Russia

3. Brands-millionaires Pepsi-cola Mountain Dew Lay’s Potato Chips Gatorade (Thirst Quencher, G2, Propel) Diet Pepsi Tropicana Beverages 7UP (outside U.S.) Doritos Tortilla Chips Lipton Teas (PepsiCo/Unilever Partnership) Quaker Foods and Snacks Cheetos Cheese Flavored Snacks Mirinda Ruffles Potato Chips Aquafina Bottled Water Pepsi Max Tostitos Tortilla Chips Sierra Mist Fritos Corn Chips Walkers Potato Crisps

4. PepsiCoin Russia and the CIS • # 1 among juice & snacks manufacturersin the CIS, # 2 among soft drinks manufacturers • PepsiCo production facilities: 9 plants in Russia + 2 in Ukraine, incl.Lebedyansky (№ 1 on Russian juice market) and «Sandora» (№ 1 on Ukrainian juice market)

5. Global and Local Brands portfolio

6. Performance with Purpose • We are focused on three key areas: our products, the environment and people. • Products: We are committed to building a fully balanced portfolio, making our treats more healthy and providing our customers with a full range • of nutritious products, through the acquisition of brands like Tropicana, • Gatorade, Quaker Oats, the reformulation of existing products and the introduction of new products and through joint venture alliances • Environment: We are committed to respecting and preserving the natural environment and its relationship with our business. We’re focusing our • environmental sustainability efforts on water, energy and packaging – the areas in which we can make the biggest impact • People: We must inspire, challenge and cherish our employees by attracting, developing, rewarding and retaining the best people. We fully support • diversity and inclusion and are equally committed to a diverse range of suppliers, in particular women and minority-owned suppliers

7. PepsiCo Talent sustainability strategy

8. Manager Quality is the single most important element of a compelling EVP offer Compensation & Benefits Work Environment Work-Life Balance Organizational Environment Compensation, as a category, is most highly valued Manager quality is the single most highly valued attribute; employees are least willing to trade it off 3.82 Average Category Importance 3.33 Average Importance for all Attributes 3.40 Average Category Importance Importance Rating (Mean) 3.06 Average Category Importance 3.03 Average Category Importance

9. Manager Quality Touchpoints Your contribution to our employees and candidates experiencing PepsiCo as an employer of choice The difference you make to motivating employees through R&R How we measure how you’re doing in delivering our promise to employees How you create an inspiring and effective onboarding experience from day 1 through to the first 12 months How you enable employees to get the best out of their individual performance How you engage with our current and future employees through effective communication How you can ensure an optimal development at every stage of an employees’ career development journey

10. Driving Manager Quality – explaining managers their role via set of seminars incl. First Time Manager Use the resources available on PepsiCo University and the Manager Quality microsite Understand the huge impact you have on employee engagement every day in every interaction Embrace the MQPI process and share your development plans with your teams Role model those behaviours that are consistent with Manager Quality Utilise our new Recruiting and On-boarding systems to secure the best talent & set them up to succeed Communicate the importance of Manager Quality to your teams and link it to business success

11. Driving Manager Quality – support via Manager Quality Microsite “One stop shop” of all Manager Quality tips, tools and processes for each of the Manager Quality touch points

12. Driving Manager Quality – via selected focused initiatives 2009-10 Focus

13. Key features: external selection Attraction Selection RE-launch Global careers website Robust job analysis and clear job description Correctly briefed recruitment agencies/ search firms & recruitment advertising reflective of Employer Brand Robust selection methodology and tools /upskilled line managers

14. Our New On-Boarding Approach LINE MANAGER OWNERSHIP Manages and takes full responsibility for the process from day 1 DRIVING ACCOUNTABILITY Measuring the effectiveness of the on-boarding process ON-BOARDING COACH Trained on-boarding coaches for new starters A Multi-Faceted Approach to On-boarding in PepsiCo Europe ON-BOARDING PLAN Guiding new starters on what they need to know and when ON-BOARDING PROGRAMME A face-to-face meeting Introducing key business messages and processes WELCOME PACK USB tool History of our Brands On-boarding Coach On-boarding Plan Our Products

15. MQPI overview • This process provides employees with the opportunity to rate their manager on his/her people management behaviors. • The following 12 behaviors are used to assess manager quality: • Opportunity to provide open ended comments to your manager. • Keeps people focused on the right priorities • Sets challenging but attainable performance goals • Constructively addresses performance issues • Balances a concern for results with a concern for the needs of individuals in his/her group • Effectively manages and works with people who are different from him/herself • Provides timely and direct feedback to others regarding performance or workplace issues • Engages in candid discussions with others regarding their career opportunities • Provides others with challenging assignments and training experiences to promote their development • Recognizes and celebrates the significant achievement of others • Effectively uses different rewards and incentives to drive performance • Gives others full credit for their ideas and contributions • Treats others’ concerns and issues fairly and with sensitivity and confidentiality

16. D&I Annual Operating Plan Recruitment: • Establish/implement 50/50 gender candidate slates to ensure diversity of choice • Establish Regional Monitoring mechanism of hires/Promos to instill female Representation Mindset Culture/Environment: • Establish D&I Council scope/deliverables/roles • Build D&I Awareness to the Senior Leaders Talent Development • Execute Internal and external Focus Group to understand Mfg/Sales poor female representation • Execute Plan for Finance Female bench building and Senior Leadership female developmental experiences Female representation target for 2010: 30%

17. Driving Talent Sustainability agenda via Annual People objective (50% of Overall Performance Rating) Electronic system already has People Objective categories included for employees

18. 2010 People agenda EER