PepsiCo is a global food and beverage company headquartered in Purchase, New York. It has three core businesses: soft drinks, snack foods, and restaurants. In 2008, PepsiCo reported $43 billion in revenue and employed 198,000 people worldwide. It has a portfolio of brands like Pepsi, Fritos, Gatorade, and Quaker Foods. PepsiCo's mission is to produce financial returns for investors while providing opportunities for employees and communities.

1. PepsiCo

3. VISION Focus on environmental stewardship, activities that benefit society, and a commitment to build shareholder value by making PepsiCo a truly sustainable company.

6. BRANDS

7. BRANDS

8. FINANCIAL HIGHLIGHTS 2008 2007 Chg Summary of Operations Total net revenue $ 43,251 $ 39,474 10 % Core division operating profit $ 8,475 $ 8,025 6 % Core total operating profit $ 7,824 $ 7,253 8 % Core net income $ 5,887 $ 5,587 5 % Core earnings per share $ 3.68 $ 3.37 9 % Other Data Management operating cash flow $ 4,651 $ 4,551 2 % Net cash provided by operating activities $ 6,999 $ 6,934 1 % Capital spending $ 2,446 $ 2,430 1 % Common share repurchases $ 4,720 $ 4,300 10 % Dividends paid $ 2,541 $ 2,204 15 % Long-term debt $ 7,858 $ 4,203 87 %

9. INCOME STATEMENT Period Ending 12/27/2008 12/29/2007 12/30/2006 12/31/2005 Total Revenue $43,251,000 $39,474,000 $35,137,000 $32,562,000 Cost of Revenue $20,351,000 $18,038,000 $15,762,000 $14,176,000 Gross Profit $22,900,000 $21,436,000 $19,375,000 $18,386,000 Operating Expenses Sales, General and Admin. $15,901,000 $14,208,000 $12,774,000 $12,314,000 Other Operating Items $64,000 $58,000 $162,000 $150,000 Operating Income $6,935,000 $7,170,000 $6,439,000 $5,922,000 Add'l income/expense items $41,000 $685,000 $173,000 $716,000 Earnings Before Interest and Tax $7,350,000 $7,855,000 $7,228,000 $6,638,000 Interest Expense $329,000 $224,000 $239,000 $256,000 Earnings Before Tax $7,021,000 $7,631,000 $6,989,000 $6,382,000 Income Tax $1,879,000 $1,973,000 $1,347,000 $2,304,000 Equity Earnings Unconsolidated Subsidiary $374,000 $0 $616,000 $0 Net Income-Cont. Operations $5,142,000 $5,658,000 $5,642,000 $4,078,000 Net Income $5,142,000 $5,658,000 $5,642,000 $4,078,000 Net Income Applicable to Common Shareholders $5,142,000 $5,658,000 $5,642,000 $4,078,000

10. STATEMENT OF CASH FLOWS Management Operating Cash Flow** Period Ending: 12/27/2008 12/29/2007 12/30/2006 12/31/2005 Net Income $5,142,000 $5,658,000 $5,642,000 $4,078,000 Cash Flows-Operating Activities Depreciation $1,543,000 $1,426,000 $1,406,000 $1,308,000 Net Income Adjustments $1,105,000 ($46,000) ($408,000) $50,000 Changes in Operating Activities Accounts Receivable ($549,000) ($405,000) ($330,000) ($272,000) Inventory ($345,000) ($204,000) ($186,000) ($132,000) Other Operating Activities ($435,000) ($123,000) $32,000 $23,000 Liabilities $538,000 $628,000 ($72,000) $797,000 Net Cash Flow-Operating $6,999,000 $6,934,000 $6,084,000 $5,852,000 Cash Flows-Investing Activities Capital Expenditures ($2,446,000) ($2,430,000) ($2,068,000) ($1,736,000) Investments $1,282,000 ($356,000) $2,017,000 ($991,000) Other Investing Activities ($1,503,000) ($958,000) ($143,000) ($790,000) Net Cash Flows-Investing ($2,667,000) ($3,744,000) ($194,000) ($3,517,000) Cash Flows-Financing Activities Dividends Paid ($2,541,000) ($2,204,000) ($1,854,000) ($1,642,000) Sale and Purchase of Stock ($4,106,000) ($3,204,000) ($1,816,000) ($1,932,000) Net Borrowings $3,515,000 $1,194,000 ($2,447,000) $1,696,000 Other Financing Activities $107,000 $208,000 $134,000 $0 Net Cash Flows-Financing ($3,025,000) ($4,006,000) ($5,983,000) ($1,878,000) Effect of Exchange Rate ($153,000) $75,000 $28,000 ($21,000) Net Cash Flow $1,154,000 ($741,000) ($65,000) $436,000

11. PERFORMANCE CHART

14. FIVE FORCE MODEL