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Pepsico Acc 500 Presentation
- 1. “Performance with Purpose” JenniferHauser & Naz Farhad
- 2. PepsiCo PAB-Pepsico American Beverages Pepsico Europe AMEA Pepsico Asia, Africa, and MiddleEast LAF-Latin America Food and Snack QFNA- Quaker Foods North America FLNA-Frito Lay North America
- 3. U.S. Outside U.S. FoodBeverage Mix of Net Revenue Mix of Net Revenue PepsiCo AMEA 10% PepsiCo Europe 20% PepsiCo Amer. Bev 33% PepsiCo Amer. Food 37% Division Operating Profit PepsiCo AMEA 7% PepsiCo Europe 13% PepsiCo Amer Bev 28% PepsiCo Amer Food 52%
- 4. % OfGrowth 5% Organic Growth Read more: Cash Balance 6.3B Earnings Per Share $4.10 Net Income past 3 Years December 31, 2010 6.32B December 31, 2011 6.443B December 31, 2012 6.178 B 18.941 Billion
- 5. A/R Turnover NetRevenue ÷ Accounts & Notes receivables 65,492 ÷ 7,041 = 9.30 *Compared to industry 10.85 Inventory Turnover 8.45 *Compared to industry 9.75 Total (current)& Fixed Assets C=18.63B F=74.64B18.63B Major Liabilities 52.12B Tax Rate A 25.2% 26.8% a 1.6 % decrease
- 6. Current $79.24 Last 5day change 2.78 2012 Yearly Range $58. 50 - $72.95 On December 31, 2012 $67.78 Comparison w/KO Coke Current $37.18 On December 31, 2012 $35.88 Comparison with (PEP) S & P 500 (Standard & Poor) 1,851.75 Earning Per Share-Current Current PEP-4.32 Dividend Aristocrat = Pays it dividend each year Pepsico, Inc. (PEP) -NYSE
- 8. “In our opinion,the consolidated financial statements referred to above present fairly, in all material respects, the financial position of PepsiCo, Inc. as of December 29, 2012 and December 31, 2011, and the results of its operations and its cash flows for each of the fiscal years in the three- year period ended December 29, 2012, in conformity with U.S. generally accepted accounting principles. Also in our opinion, PepsiCo, Inc. maintained, in all material respects, effective internal control over financial reporting as of December 29, 2012, based on criteria established in Internal Control — Integrated Framework issued by COSO”
- 9. Strength Global Brand Name Productdiversification “Fun For You” “Better for You” “Good for You” Strong distribution channels CEO Indra Nooyi Quality Conscious Weaknesses Health Risks Soft Drink market share Opportunities Increase Global presence Sustainability Growth New innovated products New distribution channels Threats Healthier trends New Comers to Market Competitors Government regulations Coke-Snapple/Dr. Pepper-Kraft-Nestle
- 10. Global Flavor– 200 countries Investments Developed over Developing North America Market Size VS Global Globally untouched markets Health Craze Governmental Regulations Positions in every key global market-position In 2006, emerging and developing markets accounted for 24 percent of PepsiCo net revenue; in 2012, they represented 35 percent PERCENTAGE OF NET REVENUE FROM EMERGING & DEVELOPING MARKETS
- 11. Coca Cola (KO) Thegreatest rivalry Sales 47.07B Snapple and Dr. Pepper (DPS) Sales 6B Hansen Natural (HANS) Changed to MNST (Monster) Sales 2.06B
- 12. “The actions wetook in 2012 were all designed to take us one step further on the transformation journey of our company.” Indra K. Nooyi
Editor's Notes
- #2 How to conduct business
- #3 Continue to broaden the range of our product portfolio, including expanding our offerings of more nutritious products. We anticipate that the consumer shift to convenient, functional nutrition, local and natural ingredients, and better-for-you snacking options will continue to accelerate. To address this shift, we plan to continue to grow our portfolio of more nutritious products by reducing added sugar, sodium and saturated fat in certain key brands. Further enhance our digital tools and data protection capabilities. The importance of digital technology continues to grow from both a consumer and business capability standpoint. We plan to invest in digital tools and technologies that will allow us to reach our consumers differently, continue to adapt our advertising and marketing model to harness the power of social media and enhance the efficiency of our sales force. We also expect that these investments will improve our analytical capabilities and enhance food safety and quality. In addition, cybersecurity requires focused investment and constant diligence against threats and we will continue to work to strengthen our information systems and improve our digital capabilities. Protect our supply chain and our people. Our ability to make, manufacture, distribute and sell products is critical to our success. Geopolitical and social tensions and conflict are expected to continue to pose risks to doing business in many countries around the world. We will continue to make investments to keep our people safe and protect our supply chain against potential threats. Develop new ways to manage volatility in commodities. Extreme weather patterns are expected to persist and intensify as a result of climate change, which may result in decreased availability or less-favorable pricing for certain commodities that are necessary for our products. In addition to managing this volatility through the use of fixed-price contracts and purchase orders, pricing agreements and derivatives, we plan to leverage our research and development teams to work to create multiple formulations while delivering on taste and quality to cope with fluctuations in raw material availability and price. Deliver on the promise of Performance with Purpose. Performance with Purpose is our goal to deliver sustained value by providing a wide range of foods and beverages, from treats to healthy eats; finding innovative ways to minimize our impact on the environment and lower our costs through energy and water conservation as well as reduce use of packaging material; providing a safe and inclusive workplace for our employees globally; and respecting, supporting and investing in the local communities in which we operate. PepsiCo was again recognized for its leadership in this area in 2013 by earning a place on the prestigious Dow Jones Sustainability World Index for the seventh consecutive year and on the North America Index for the eighth consecutive year.
- #6 http://www.stock-analysis-on.net/NYSE/Company/PepsiCo-Inc/Ratios/Short-term-Operating-Activity#Inventory-Turnover
- #7 We returned $6.5 billion to shareholders in 2012 through a combination of share repurchases and dividends 3% Tax on Sugary Drinks? 150 million in revenue loss if law is to pass
- #9 WHAT THIS MEANS
- #10 We believe that concentrating our insights, marketing and innovation resources behind our most significant brands in key markets will enable us to reinforce our existing competitive advantages resulting from our go-to- market systems and strong brands, particularly with respect to snacks, and continue to grow demand and market share. To be successful in an increasingly competitive environment, we must effectively implement our global operating model and aggressively build out new capabilities. We are leveraging the expertise of our marketing and innovation teams across the Company. We plan to increase the use of global marketing campaigns for our iconic global brands, such as the “Live for Now” campaign for Pepsi to create a more consistent brand experience for consumers around the world. We also expect to continue to increase our investment behind sweeteners and other research and development initiatives. In addition, we are investing in packaging and other innovations, includ- ing through the creation of a new design group. Other global processes, such as master data and information technology systems, are also being harmonized to increase efficiency across the Company and speed decision-making.
- #11 Lastly, the global retail environment is transforming. In emerging and developing markets, the growth of organized modern trade is beginning to slowly replace traditional mom and pop stores, and in developed markets, new discount channels like hard discounters and dollar stores are rapidly growing. Additionally, online retailing is beginning to make inroads into our categories while social media amplifies positive messages and rumors in the blink of an eye. We are now the #1 food and beverage business in Russia, India and the Middle East. We are the #2 food and beverage business in Mexico, where we have a strong position in macrosnacks and have increased the scale of our Mexican beverage business under a new joint venture. We are also among the top 5 food and beverage businesses in Brazil, Turkey and many other markets.