PepsiCo Reports Third Quarter 2013 Results

                  PepsiCo Reports Third Quarter 2013 Results

- Core(1) EPS $1.24 and reported EPS $1.23 in the quarter. Core constant
currency(1) EPS and reported EPS each increased 12 percent year to date

- Organic(1) revenue grew 3.3 percent in the quarter. Reported net revenue
increased 1.5 percent in the quarter reflecting the impacts of foreign
currency translation and structural changes

- Core gross margin expanded 70 basis points in the quarter, and reported
gross margin increased 5 basis points in the quarter

- Company expects to return approximately $6.4 billion to shareholders through
dividends and share repurchases in 2013

- Company reaffirms 7 percent core constant currency EPS growth guidance for
2013

PR Newswire

PURCHASE, N.Y., Oct. 16, 2013

PURCHASE, N.Y., Oct. 16, 2013 /PRNewswire/ --PepsiCo, Inc. (NYSE: PEP) today
reported core earnings per share of $1.24 for the third quarter and organic
revenue growth of 3.3 percent for the quarter. Organic revenue grew 3.9
percent year to date and core constant currency EPS increased 12 percent year
to date. Reported net revenue grew 2 percent year to date.

(Logo: http://photos.prnewswire.com/prnh/20120424/NY93895LOGO)

"We're pleased with our performance. PepsiCo has delivered double-digit core
constant currency earnings per share growth year to date, despite ongoing
macro-economic volatility in many markets. We're able to perform well in these
conditions because our brands are strong, our product portfolio is on-trend,
and our geographic footprint is broad and diverse. Importantly, we have
continued to make marketplace investments to strengthen our foundation for
sustainable growth," said Chairman and CEO Indra Nooyi.

"We remain focused on growing our business by building our brands, innovating,
driving marketplace execution, and delivering higher returns on invested
capital through disciplined capital allocation. Our year-to-date results give
us confidence in achieving our 2013 financial goals and we continue to believe
that we have the right strategies in place to create long-term value for our
shareholders."

^(1)Please refer to the Glossary for the definitions of Non-GAAP financial
measures including core, constant currency, organic and management operating
cash flow.

Operating and Marketplace Highlights

  oOrganic revenue increased 3.9 percent year to date and core constant
    currency operating profit increased 8 percent year to date. Reported
    operating profit increased 6 percent year to date.
  oCore gross margin expanded 70 basis points in the quarter reflecting
    implementation of effective revenue management strategies.
  oCore operating margin expanded in the quarter, including an 8 percent
    increase in advertising and marketing expense. Reported operating margin
    declined 35 basis points in the quarter.
  oPepsiCo Americas Foods organic revenue grew 7 percent in the quarter
    driven by mid-single-digit organic revenue growth at Frito-Lay North
    America and double-digit organic revenue growth in Latin America Foods.
    Reported net revenue increased 5 percent in the quarter driven by
    mid-single-digit net revenue growth at Frito-Lay North America and
    high-single-digit net revenue growth at Latin America Foods.
  oIn the U.S., the company's largest market, grew value, volume and unit
    market share in salty snacks in the quarter.
  oDespite a challenging North America LRBcategory, NAB sequentially
    improved both volume and value market share performancein measured
    channelswhile leading the industry in net price realization at retail.
  oAMEA organic revenue grew 6 percent in the quarter reflecting organic
    volume growth in both snacks and beverages, despite political and
    marketplace volatility in certain markets, notably Egypt and India.
    Year-to-date, AMEA organic revenue increased 11 percent. Reported net
    revenue in AMEA declined 3 percent in the quarter and 3 percent year to
    date, reflecting the impact of structural changes and foreign exchange
    translation.
  oDeveloping and emerging market organic revenue grew 9 percent in the
    quarter. On a reported basis, developing and emerging market net revenue
    grew 4 percent in the quarter reflecting structural changes and
    unfavorable foreign exchange translation.
  oOn track to deliver targeted $900 million of productivity savings during
    2013 and $3 billion in productivity savings in 2012 through 2014.
  oManagement operating cash flow (excluding certain items) was $5.5 billion
    year to date, an increase of 12 percent. Cash flow from operations was
    $6.7 billion year to date, an increase of 30 percent.
  oNet capital spending was 4.1 percent of net sales over the past four
    quarters, within our long term objective of at or below 5 percent of net
    sales.
  oOn track to return a total of $6.4 billion to shareholders in 2013 through
    approximately $3.4 billion in dividends and approximately $3.0 billion in
    share repurchases.

Summary of Third Quarter Financial Performance

  oOrganic revenue grew 3.3 percent and reported net revenue grew 1.5
    percent. Structural changes, principally the refranchising of the
    company's beverage operations in Vietnam, negatively impacted reported net
    revenue performance by nearly half a percentage point and foreign exchange
    translation had a more than 1-percentage-point unfavorable impact in the
    quarter.
  oCore constant currency operating profit rose 3 percent reflecting
    increased advertising and marketing expense and $28 million of incremental
    investments. Reported operating profit declined 1 percent and included
    the net impact of mark-to-market losses on commodity hedges, and certain
    restructuring and impairment and merger and integration costs in both 2013
    and 2012. The incremental investments negatively impacted operating
    profit growth by 1 percentage point.
  oThe company's core effective tax rate was 25.5 percent and the reported
    effective tax rate was 25.4 percent, both below the prior year quarter due
    to geographic mix shift in the current year and the lapping of an
    adjustment to international deferred taxes in the prior year, partially
    offset by the lapping of tax benefits from an acquisition in the prior
    year. The reported tax rate was also impacted by lapping net tax expense
    related to gains recognized on commodity hedges in the prior year.
  oCore EPS was $1.24 and reported EPS was $1.23. Core EPS includes a $0.01
    impact from incremental investments. Core EPS excludes a net impact of
    $0.01 per share related to mark-to-market net losses on commodity hedges
    and a nominal impact each from merger and integration charges and
    restructuring and impairment charges. Mark-to-market gains and losses on
    commodity hedges are subsequently reflected in core division results when
    the divisions recognize the cost of the underlying commodity in net
    income.

Summary Third Quarter 2013 Performance (Percent Growth)

                   Reported Core Constant Currency^b Organic^c
Volume^a
 Snacks        3                                 3
 Beverages      1                                 1
Net Revenue        1.5                               3
Operating Profit^d (1)      3
EPS                1.5      5



                                                                Core Constant
               Organic
                        Net Revenue Operating         Organic   Currency
               Volume^a             Profit^d          Revenue^c
                                                                Operating
                                                                Profit^b
PAF            3        5           9                 7         7
 FLNA       3        5           7                 5         6
 LAF        3        9           35                14        24
 QFNA       3        (2)         (11)              (1)       (11)
PAB            (4)      (2)         1                 (1.5)     -
Europe         3/(1)^e  3           3.5               3         5
AMEA           4/7^e    (3)         (7)               6         (7)
Total          3/1 ^ e  1.5         4                 3         3
Divisions
Total PepsiCo  3/1 ^ e  1.5         (1)               3         3



^a All 2013 volume growth measures reflect an adjustment to the base year for
divestitures that occurred in 2012.
^b Core constant currency results are non-GAAP financial measures that exclude
certain items affecting comparability. For more information about our core
constant currency results, see "Reconciliation of GAAP and Non-GAAP
Information" in the attached exhibits. Please refer to the Glossary for
definitions of "Core" and "Constant Currency".
^c Organic results are non-GAAP financial measures that adjust for impacts of
acquisitions, divestitures and other structural changes and foreign exchange
translation. For more information about our organic results, see
"Reconciliation of GAAP and Non-GAAP Information" in the attached exhibits.
Please refer to the Glossary for the definition of "Organic".
^d The reported operating profit performance was impacted by certain items
excluded from our core results in both 2013 and 2012. See "Reconciliation of
GAAP and Non-GAAP Information" in the attached exhibits for more information
about these items. Please refer to the Glossary for the definition of "Core".
^e ^ Snacks/Beverages.

Summary Year to Date 2013 Performance (Percent Growth)

                   Reported Core Constant Currency^b Organic^c
Volume^a
 Snacks        3                                 3
 Beverages      3                                 1
Net Revenue        2                                 4
Operating Profit^d 6        8
EPS                12       12



                                                                Core Constant
               Organic
                         Net Revenue Operating        Organic   Currency
               Volume^a              Profit^d         Revenue^c
                                                                Operating
                                                                Profit^b
PAF            3         5           8                7         7
 FLNA       3         4           7                4.5       6
 LAF        2         9           23               13        21
 QFNA       2         -           (9)              -         (10)
PAB            (3.5)     (2)         4                (1)       2
Europe         3/(0.5)^e 3           -                4         2.5
AMEA           7/9^e     (3)         59               11        29
Total          3/1^e     2           10               4         7
Divisions
Total PepsiCo  3/1^e     2           6                4         8



^a All 2013 volume growth measures reflect an adjustment to the base year for
divestitures that occurred in 2012.
^b Core constant currency results are non-GAAP financial measures that exclude
certain items affecting comparability. For more information about our core
constant currency results, see "Reconciliation of GAAP and Non-GAAP
Information" in the attached exhibits. Please refer to the Glossary for
definitions of "Core" and "Constant Currency".
^c Organic results are non-GAAP financial measures that adjust for impacts of
acquisitions, divestitures and other structural changes and foreign exchange
translation. For more information about our organic results, see
"Reconciliation of GAAP and Non-GAAP Information" in the attached exhibits.
Please refer to the Glossary for the definition of "Organic".
^d The reported operating profit performance was impacted by certain items
excluded from our core results in both 2013 and 2012. See "Reconciliation of
GAAP and Non-GAAP Information" in the attached exhibits for more information
about these items. Please refer to the Glossary for the definition of "Core".
^e ^ Snacks/Beverages.

Division Operating Summaries

PepsiCo Americas Foods (PAF)
Organic revenue grew 7 percent in the quarter driven by 3 percentage points of
organic volume growth and 5 percentage points of effective net pricing.
Reported net revenue increased 5 percent, reflecting a 2-percentage-point
unfavorable impact from foreign exchange translation.

Core constant currency operating profit increased 7 percent, reflecting
organic revenue gains and productivity initiatives, partially offset by
increased advertising and marketing expense.

Frito-Lay North America (FLNA)
Organic and reported net revenue increased 5 percent in the quarter,
reflecting a 3-percentage-point increase in organic volume and 2 percentage
points of effective net pricing.

Core constant currency operating profit grew 6 percent in the quarter,
reflecting organic revenue gains, productivity initiatives, increased
advertising and marketing expense and lower commodity costs.

Latin America Foods (LAF)
Organic revenue grew 14 percent in the quarter, reflecting 3 percentage points
of organic volume growth and 12 percentage points of effective net pricing.
Reported net revenue grew 9 percent in the quarter, reflecting a
6-percentage-point unfavorable foreign exchange translation impact.

Core constant currency operating profit increased 24 percent. These results
reflect revenue growth and productivity gains partially offset by commodity
cost inflation and increased advertising and marketing expense.

Quaker Foods North America (QFNA)
Organic revenue declined 1 percent in the quarter. Reported net revenue
declined 2 percent, reflecting half-a-percentage point of unfavorable foreign
exchange translation impact. Core constant currency operating profit declined
11 percent, driven by operating results of a dairy joint venture, unfavorable
product mix and commodity cost inflation.

PepsiCo Americas Beverages (PAB)
Organic revenue declined 1.5 percent in the quarter reflecting organic volume
that declined 4 percent and the negative impact of concentrate shipment
timing, offset by effective net pricing of 3 percentage points. Latin America
beverage volume increased 0.5 percent. In North America, non-carbonated
beverage volume declined low-single digits, and CSD volume declined mid-single
digits.

Reported net revenue declined 2 percent reflecting a 1-percentage-point impact
of unfavorable foreign exchange translation.

Core constant currency operating profit was even with the prior year quarter,
reflecting the volume decline partially offset by favorable effective net
pricing, lower commodity costs and productivity gains.

Europe
Organic revenue grew 3 percent, primarily reflecting effective net pricing.
Snacks volume rose 3 percent while beverage volume declined 1 percent.
Reported net revenue grew 3 percent in the quarter, including a slight
favorable foreign exchange translation impact.

Core constant currency operating profit rose 5 percent in the quarter,
reflecting effective net pricing and continued productivity initiatives,
partially offset by higher commodity costs.

Asia, Middle East & Africa (AMEA)
Organic revenue grew 6 percent in the quarter driven by effective net
pricing. Ongoing macro-economic volatility negatively impacted our third
quarter results in this region. Reported net revenue declined 3 percent,
reflecting a 5-percentage-point negative impact from the refranchising of
bottling operations in Vietnam, and an unfavorable 4-percentage-point impact
from foreign exchange translation.

Core constant currency operating profit declined 7 percent, reflecting
incremental investments and a significant increase in advertising and
marketing expense, partially offset by effective net pricing. Incremental
investments negatively impacted operating profit by 7 percentage points. The
net impact of divestitures positively impacted operating profit by 3
percentage points.

2013 Guidance and Outlook
Consistent with its previous guidance for 2013, the company expects 7 percent
core constant currency EPS growth versus its fiscal 2012 core EPS of $4.10.
Based on the current foreign exchange market consensus, the company currently
expects that foreign exchange translation will have an unfavorable impact of
at least 2 percentage points on the company's full-year core EPS performance
in 2013.

The company's full year 2013 core constant currency EPS guidance includes the
impact of a gain in the second quarter related to refranchising its Vietnam
beverage operations. The impact of this gain is expected to be offset by the
company's incremental investments in the second, third and fourth quarters of
2013.

Excluding the impact of structural changes and foreign exchange translation,
organic revenue is expected to grow mid-single digits versus 2012, consistent
with the company's long-term guidance. The impact of structural changes,
principally beverage refranchisings, is expected to reduce net revenue growth
by approximately 1 percentage point for the full year. Based on the current
foreign exchange market consensus, the company currently expects foreign
exchange translation to have an unfavorable impact of approximately 2
percentage points on the company's full year net revenue growth.

For 2013, the company expects low-single-digit commodity inflation, and
productivity savings of approximately $900 million. The company expects
advertising and marketing expense to increase at or above the rate of net
revenue growth. The company expects higher interest expense driven by
increased debt balances and a core effective tax rate of approximately 27
percent.

The company is targeting over $9 billion in cash flow from operating
activities and more than $7 billion in management operating cash flow
(excluding certain items) in 2013. Net capital spending is expected to be
approximately $3 billion in 2013, within the company's long-term capital
spending target of less than or equal to 5 percent of net revenue.

The company expects to return a total of $6.4 billion to shareholders in 2013
through dividends of approximately $3.4 billion and share repurchases of
approximately $3.0 billion.

Conference Call
At 8 a.m. (Eastern Time) today, the company will host a conference call with
investors to discuss third-quarter results and the outlook for 2013. Further
details, including a slide presentation accompanying the call, will be
accessible on the company's website at www.pepsico.com/investorsin advance of
the call.



PepsiCo, Inc. and Subsidiaries
Condensed Consolidated Statement of Income
(in millions except per share amounts, unaudited)
                   12 Weeks Ended                 36 Weeks Ended
                   9/7/2013   9/8/2012   Change   9/7/2013   9/8/2012   Change
Net Revenue       $16,909    $16,652    1.5   %  $46,297    $45,538    2    %
Cost of sales      7,946      7,833      1     %  21,678     21,637     -    %
Selling, general
and administrative 6,158      5,992      3     %  17,237     16,920     2    %
expenses
Amortization of    25         27         (4.5) %  75         82         (7)  %
intangible assets
Operating Profit  2,780      2,800      (1)   %  7,307      6,899      6    %
Interest expense  (220)      (204)      7     %  (642)      (611)      5    %
Interest income    17         23         (29)  %  62         47         30   %
and other
Income before      2,577      2,619      (2)   %  6,727      6,335      6    %
income taxes
Provision for      654        706        (7)   %  1,694      1,788      (5)  %
income taxes
Net income        1,923      1,913      0.5   %  5,033      4,547      11   %
Less: Net income
attributable to    10         11         (12)  %  35         30         17   %
noncontrolling
interests
Net Income
Attributable to    $ 1,913   $ 1,902   1     %  $ 4,998   $ 4,517   11   %
PepsiCo
Diluted
 Net Income
Attributable to    $  1.23  $  1.21  1.5   %  $  3.20  $  2.86  12   %
PepsiCo per Common
Share
 Weighted-average
common shares      1,561      1,575               1,564      1,580
outstanding
 Cash dividends
declared per       $0.5675    $0.5375             $1.6725    $  1.59
common share
A - 1





PepsiCo, Inc. and Subsidiaries
Supplemental Financial Information
(in millions, unaudited)
                       12 Weeks Ended               36 Weeks Ended
                       9/7/2013  9/8/2012  Change   9/7/2013  9/8/2012  Change
Net Revenue
Frito-Lay North        $       $       5     %  $       $       4    %
America              3,424    3,269             9,879     9,472
Quaker Foods North     604       615       (2)   %  1,815     1,821     -    %
America
Latin America Foods   2,049     1,883     9     %  5,532     5,066     9    %
PepsiCo Americas       6,077     5,767     5     %  17,226    16,359    5    %
Foods
PepsiCo Americas       5,406     5,530     (2)   %  15,086    15,330    (2)  %
Beverages
Europe                3,818     3,691     3     %  9,413     9,153     3    %
Asia, Middle East &    1,608     1,664     (3)   %  4,572     4,696     (3)  %
Africa
Total Net Revenue     $        $        1.5   %  $        $        2    %
                       16,909   16,652            46,297   45,538
Operating Profit
Frito-Lay North        $      $      7     %  $       $       7    %
America               977      917               2,711     2,532
Quaker Foods North     137       154       (11)  %  450       495       (9)  %
America
Latin America Foods   295       219       35    %  829       673       23   %
PepsiCo Americas       1,409     1,290     9     %  3,990     3,700     8    %
Foods
PepsiCo Americas       843       837       1     %  2,290     2,202     4    %
Beverages
Europe                501       483       3.5   %  1,014     1,017     -    %
Asia, Middle East &    295       317       (7)   %  1,003     630       59   %
Africa
Division Operating     3,048     2,927     4     %  8,297     7,549     10   %
Profit
Corporate Unallocated
Commodity
Mark-to-Market Net     (19)      121       n/m    (74)      126       n/m
Impact
Merger and Integration -         2         n/m    -         -         -    %
Charges
Restructuring and      1         (7)       n/m    (1)       (8)       (86) %
Impairment Charges
Venezuela Currency     -         -         -     %  (124)     -         n/m
Devaluation
Other                 (250)     (243)     3     %  (791)     (768)     3    %
                       (268)     (127)     112   %  (990)     (650)     52   %
Total Operating        $       $       (1)   %  $       $       6    %
Profit                2,780    2,800             7,307     6,899
n/m = not meaningful
A - 2





PepsiCo, Inc. and Subsidiaries
Condensed Consolidated Statement of Cash Flows
(in millions, unaudited)
                                                    36 Weeks Ended
                                                    9/7/2013      9/8/2012
Operating Activities
Net income                                         $   5,033  $   4,547
Depreciation and amortization                       1,815         1,837
Stock-based compensation expense                   219           193
Merger and integration charges                     9             7
Cash payments for merger and integration charges   (21)          (57)
Restructuring and impairment charges               37            193
Cash payments for restructuring charges            (100)         (243)
Restructuring and other charges related to the
transaction
 with Tingyi (Cayman Islands) Holding Corp.       -             163
(Tingyi)
Cash payments for restructuring and other charges
related to the transaction
with Tingyi                                        (26)          (98)
Non-cash foreign exchange loss related to           111           -
Venezuela devaluation
Excess tax benefits from share-based payment        (94)          (89)
arrangements
Pension and retiree medical plan contributions     (208)         (1,253)
Pension and retiree medical plan expenses          462           414
Deferred income taxes and other tax charges and     (66)          283
credits
Change in accounts and notes receivable            (1,262)       (1,300)
Change in inventories                              (337)         (234)
Change in prepaid expenses and other current        (156)         (83)
assets
Change in accounts payable and other current        734           281
liabilities
Change in income taxes payable                     811           736
Other, net                                          (299)         (179)
Net Cash Provided by Operating Activities          6,662         5,118
Investing Activities
Capital spending                                   (1,497)       (1,409)
Sales of property, plant and equipment             51            58
Cash payments related to the transaction with       (3)           (298)
Tingyi
Acquisitions and investments in noncontrolled       (82)          (76)
affiliates
Divestitures                                       174           7
Short-term investments, net                        (8)           (21)
Other investing, net                               (13)          11
Net Cash Used for Investing Activities             (1,378)       (1,728)
Financing Activities
Proceeds from issuances of long-term debt          4,185         5,207
Payments of long-term debt                         (2,954)       (1,357)
Short-term borrowings, net                         188           (2,194)
Cash dividends paid                                (2,558)       (2,470)
Share repurchases – common                         (2,041)       (2,328)
Share repurchases – preferred                      (5)           (5)
Proceeds from exercises of stock options           991           927
Excess tax benefits from share-based payment        94            89
arrangements
Acquisition of noncontrolling interests             (20)          (15)
Other financing                                    (15)          (18)
Net Cash Used for Financing Activities             (2,135)       (2,164)
Effect of exchange rate changes on cash and cash    (242)         16
equivalents
Net Increase in Cash and Cash Equivalents           2,907         1,242
Cash and Cash Equivalents, Beginning of Year       6,297         4,067
Cash and Cash Equivalents, End of Period            $   9,204  $   5,309
A - 3





PepsiCo, Inc. and Subsidiaries
Condensed Consolidated Balance Sheet
(in millions except per share amounts)
                                         9/7/2013           12/29/2012
Assets                                   (unaudited)
Current Assets
Cash and cash equivalents               $      9,204  $      6,297
Short-term investments                  355                322
Accounts and notes receivable, net      8,088              7,041
Inventories
 Raw materials                        1,791              1,875
 Work-in-process                      253                173
 Finished goods                       1,694              1,533
                                         3,738              3,581
Prepaid expenses and other current       1,546              1,479
assets
 Total Current Assets                22,931             18,720
Property, plant and equipment, net      18,072             19,136
Amortizable intangible assets, net      1,662              1,781
Goodwill                                16,534             16,971
Other nonamortizable intangible assets  14,300             14,744
 Nonamortizable Intangible Assets     30,834             31,715
Investments in noncontrolled affiliates 1,823              1,633
Other assets                            1,492              1,653
  Total Assets                      $     76,814   $     74,638
Liabilities and Equity
Current Liabilities
Short-term obligations                  $      5,256  $      4,815
Accounts payable and other current       12,214             11,903
liabilities
Income taxes payable                    998                371
 Total Current Liabilities            18,468             17,089
Long-term debt obligations              24,293             23,544
Other liabilities                       6,604              6,543
Deferred income taxes                   5,047              5,063
 Total Liabilities                    54,412             52,239
Commitments and Contingencies
Preferred stock, no par value           41                 41
Repurchased preferred stock             (169)              (164)
PepsiCo Common Shareholders' Equity
Common stock, par value 1^2/[3]¢ per
share (authorized 3,600 shares, issued,
net
                                         26                 26
 of repurchased common stock at par
value: 1,537 and 1,544 shares,
respectively)
Capital in excess of par value          4,040              4,178
Retained earnings                       45,554             43,158
Accumulated other comprehensive loss    (6,907)            (5,487)
Repurchased common stock, in excess of
par value (329 and 322 shares,           (20,299)           (19,458)
respectively)
 Total PepsiCo Common Shareholders'    22,414             22,417
Equity
Noncontrolling interests                 116                105
 Total Equity                         22,402             22,399
Total Liabilities and Equity            $     76,814   $     74,638
A - 4





PepsiCo, Inc. and Subsidiaries
Supplemental Share and Stock-Based Compensation Data
(in millions except dollar amounts, unaudited)
                                        12 Weeks Ended      36 Weeks Ended
                                        9/7/2013  9/8/2012  9/7/2013  9/8/2012
Beginning Net Shares Outstanding      1,547     1,559     1,544     1,565
Options Exercised/Restricted Stock      2         9         20        22
Units and PEPUnits Converted
Shares Repurchased                    (12)      (16)      (27)      (35)
Ending Net Shares Outstanding          1,537     1,552     1,537     1,552
Weighted Average Basic                 1,542     1,556     1,545     1,562
Dilutive Securities:
Options                              11        12        11        12
Restricted Stock and PEPUnits           7         6         7         5
ESOP Convertible Preferred Stock/Other 1         1         1         1
Weighted Average Diluted               1,561     1,575     1,564     1,580
Average Share Price for the Period     $      $      $      $   
                                        82.40    71.26    79.21    67.64
Growth Versus Prior Year               16%       8%        17%       2%
Options Outstanding                   52        73        56        80
Options in the Money                   52        72        55        66
Dilutive Shares from Options           11        12        11        12
Dilutive Shares from Options as a % of  22%       16%       20%       17%
Options in the Money
Average Exercise Price of Options in    $      $      $      $   
the Money                              61.38    58.37    60.96    55.28
Restricted Stock and PEPUnits           13        13        14        12
Outstanding
Dilutive Shares from Restricted Stock   7         6         7         5
and PEPUnits
Average Intrinsic Value of Restricted   $      $      $      $   
Stock Units Outstanding ^(a)            68.94    65.51    68.60    65.33
Average Intrinsic Value of PEPUnits     $      $      $      $   
Outstanding ^(a)                        66.65    64.87    66.65    64.70
(a) Weighted-average intrinsic value at grant date.
A - 5





PepsiCo, Inc. and Subsidiaries
Reconciliation of GAAP and Non-GAAP Information
Organic Growth
12 Weeks Ended September 7, 2013 and September 8, 2012
(unaudited)
          Percent Impact                                  GAAP      Non-GAAP
                                                          Measure   Measure
                                                          Reported  Organic %
                                                          % Change  Change
                                                                    ^(a)
Net               Effective  Acquisitions   Foreign       12 Weeks  12 Weeks
Revenue                      &                            Ended     Ended
Year over Volume  Net                       Exchange
Year %            Pricing    Divestitures                 9/7/2013  9/7/2013
Change                                      Translation
Frito-Lay
North     3       2          -              -             5         5
America
Quaker
Foods     -       (1)        -              (0.5)         (2)       (1)
North
America
Latin
America   3       12         -              (6)           9         14
Foods

PepsiCo   3       5          -              (2)           5         7
Americas
Foods
PepsiCo
Americas  (5)     3          -              (1)           (2)       (1.5)
Beverages
Europe    -       3          -              -             3         3
Asia,
Middle    (0.5)   6          (5)            (4)           (3)       6
East &
Africa
Total     (1)     4          -              (1)           1.5       3
PepsiCo
          Percent Impact                                  GAAP      Non-GAAP
                                                          Measure   Measure
                                                          Reported  Organic %
                                                          % Change  Change
                                                                    ^(a)
Net               Effective  Acquisitions   Foreign       12 Weeks  12 Weeks
Revenue                      &                            Ended     Ended
Year over Volume  Net                       Exchange
Year %            Pricing    Divestitures                9/8/2012  9/8/2012
Change                                      Translation
Frito-Lay
North     1       2          -              -             3         3
America
Quaker
Foods     2       (1)        -              -             -         1
North
America
Latin
America   4       9          2              (13)          2         13
Foods

PepsiCo   2       4          1              (4)           2.5       6
Americas
Foods
PepsiCo
Americas  (4)     3          (6)            (1)           (7)       -
Beverages
Europe    1       6          -              (12)          (6)       7
Asia,
Middle    10      0.5        (27)           (4)           (21)      10
East &
Africa
Total     1       4          (5)            (5)           (5)       5
PepsiCo
(a) Organic percent change is a financial measure that is not in accordance
with GAAP and is calculated by excluding the impact of acquisitions and
divestitures

 andforeign exchange translation from reported growth.
Note - Certain amounts above may not sum due to rounding.
A - 6





PepsiCo, Inc. and Subsidiaries
Reconciliation of GAAP and Non-GAAP Information (cont.)
Organic Growth
36 Weeks Ended September 7, 2013 and September 8, 2012
(unaudited)
             Percent Impact                                GAAP      Non-GAAP
                                                           Measure   Measure
                                                           Reported  Organic
                                                           % Change  % Change
                                                                     ^(a)
Net Revenue          Effective  Acquisitions  Foreign      36 Weeks  36 Weeks
Year over                       &                          Ended     Ended
Year %       Volume  Net                      Exchange
Change               Pricing    Divestitures               9/7/2013  9/7/2013
                                              Translation
Frito-Lay
North        3       1.5        -             -            4         4.5
America
Quaker Foods
North        1       (1)        -             -            -         -
America
Latin
America      2       11         -             (4)          9         13
Foods
 PepsiCo
Americas     2       4          -             (1)          5         7
Foods
PepsiCo
Americas     (4)     3          -             (0.5)        (2)       (1)
Beverages
Europe       1       3          -             (1)          3         4
Asia, Middle
East &       6       6          (11)          (3)          (3)       11
Africa
Total        -       4          (1)           (1)          2         4
PepsiCo
             Percent Impact                                GAAP      Non-GAAP
                                                           Measure   Measure
                                                           Reported  Organic
                                                           % Change  % Change
                                                                     ^(a)
Net Revenue          Effective  Acquisitions  Foreign      36 Weeks  36 Weeks
Year over                       &                          Ended     Ended
Year %       Volume  Net                      Exchange
Change               Pricing    Divestitures               9/8/2012  9/8/2012
                                              Translation
Frito-Lay
North        (1)     4          -             -            3         4
America
Quaker Foods
North        (1)     1          -             -            (1)       -
America
Latin
America      4       10         2             (10)         7         14
Foods
 PepsiCo
Americas     1       6          1             (3)          4         6
Foods
PepsiCo
Americas     (3)     4          (6)           -            (5)       1
Beverages
Europe       -       5          2             (9)          (2)       5
Asia, Middle
East &       8       3          (16)          (3)          (9)       11
Africa
Total        -       4.5        (3)           (3)          (2)       5
PepsiCo
(a) Organic percent change is a financial measure that is not in accordance
with GAAP and is calculated by excluding the impact of acquisitions and
divestitures

 andforeign exchange translation from reported growth.
Note - Certain amounts above may not sum due to rounding.
A - 7





PepsiCo, Inc. and Subsidiaries
Reconciliation of GAAP and Non-GAAP Information (cont.)
Year over Year Growth Rates
12 Weeks Ended September 7, 2013 and September 8, 2012
(unaudited)
             GAAP                                              Non-GAAP                Non-GAAP

             Measure                                           Measure                 Measure
                                                                                       Core

             Reported                                          Core ^(a)  Percent      Constant
             %         Percent Impact of Non-Core
                       Adjustments                             % Change   Impact of    Currency
             Change                                                                    ^(a)

                                                                                       % Change
                       Commodity               Restructuring
             12 Weeks             Merger and                              Foreign     12 Weeks
Operating              mark-to-                and             12 Weeks
Profit Year  Ended                integration                  Ended      exchange     Ended
over Year %            market                  impairment      9/7/2013
Change       9/7/2013  net        charges                                 translation  9/7/2013
                                               charges
                       impact
Frito-Lay
North        7         -          -            (1)             6          -            6
America
Quaker Foods
North        (11)      -          -            (1)             (12)       -            (11)
America
Latin
America      35        -          -            (15)            20         4            24
Foods
 PepsiCo
Americas     9         -          -            (3)             6          1            7
Foods
PepsiCo
Americas     1         -          -            (3.5)           (3)        3            -
Beverages
Europe       3.5       -          1            0.5             5          -            5
Asia, Middle
East &       (7)       -          -            (2)             (8)        2            (7)
Africa
Division
Operating    4         -          -            (2)             2          1            3
Profit
Impact of
Corporate    (5)       5          -            -               -          -            -
Unallocated
Total
Operating    (1)       5          -            (3)             2          1.5          3
Profit
Net Income
Attributable 1                                                 2          2            4
to PepsiCo
Net Income
Attributable
to PepsiCo   1.5                                               3          2            5
per common
share -
diluted
             GAAP                                              Non-GAAP                Non-GAAP
                                                               Measure                 Measure
             Measure
                                                                                       Core

             Reported                                          Core ^(a)  Percent      Constant
             %         Percent Impact of Non-Core
                       Adjustments                             % Change   Impact of    Currency
             Change                                                                   ^(a)

                                                                                       % Change
                       Commodity               Restructuring
             12 Weeks             Merger and                   12 Weeks   Foreign     12 Weeks
Operating              mark-to-               and
Profit Year  Ended                integration                  Ended     exchange    Ended
over Year %            market                  impairment
Change       9/8/2012  net        charges                      9/8/2012  translation  9/8/2012
                                               charges
                       impact
Frito-Lay
North        -         -          -            1               1          -            1
America
Quaker Foods
North        (13)      -          -            1               (12)       -            (11)
America
Latin
America      (21)      -          -            10              (10)       11           -
Foods
 PepsiCo
Americas     (6)       -          -            3               (3)        2            (1)
Foods
PepsiCo
Americas     (16)      -          (2)          3               (15)       1            (13)
Beverages
Europe       (6)       -          (2)          -               (7)        11           3
Asia, Middle
East &       11        -          -            2               13         1            14
Africa
Division
Operating    (7)       -          (1)          2.5             (6)        3            (3)
Profit
Impact of
Corporate    4         (6)        -            -               (2)        -            (2)
Unallocated
Total
Operating    (4)       (6)        (1.5)        3               (8)        3.5          (5)
Profit
Net Income
Attributable (5)                                               (9)        4            (6)
to PepsiCo
Net Income
Attributable
to PepsiCo   (3)                                               (8)        4            (4)
per common
share -
diluted
(a) Core results and core constant currency results are financial measures that are not in
accordance with GAAP and exclude the above adjustments. See A-17 through A-19 for a discussion of
each of these adjustments.
Note - Certain amounts above may not sum due to rounding.
A - 8





PepsiCo, Inc. and Subsidiaries
Reconciliation of GAAP and Non-GAAP Information (cont.)
Year over Year Growth Rates
36 Weeks Ended September 7, 2013 and September 8, 2012
(unaudited)
             GAAP                                                                         Non-GAAP               Non-GAAP

             Measure                                                                      Measure                Measure
                                                                                                                 Core

             Reported                                                                     Core      Percent      Constant
             %         Percent Impact of Non-Core Adjustments                             ^(a)
                                                                                                    Impact of    Currency
             Change                                                                      % Change               ^(a)

                                                                                                                 % Change
                                                              Restructuring
                                                              and
                       Commodity               Restructuring
             36 Weeks             Merger and                  other charges  Venezuela    36 Weeks  Foreign     36 Weeks
Operating              mark-to-                and
Profit Year  Ended                integration                 related to     currency     Ended     exchange     Ended
over Year %            market                  impairment     the
Change       9/7/2013  net        charges                                    devaluation  9/7/2013  translation  9/7/2013
                                               charges        transaction
                       impact                                 with

                                                              Tingyi
Frito-Lay
North        7         -          -            (1)            -              -            6         -            6
America
Quaker Foods
North        (9)       -          -            (1)            -              -            (10)      -            (10)
America
Latin
America      23        -          -            (6)            -              -            17        4            21
Foods
 PepsiCo
Americas     8         -          -            (2)            -              -            6         1            7
Foods
PepsiCo
Americas     4         -          -            (3)            -              (1)          -         2            2
Beverages
Europe       -         -          -            2              -              -            1         1            2.5
Asia, Middle
East &       59        -          -            (4)            (28)           -            27        2            29
Africa
Division
Operating    10        -          -            (2)            (2)            -            6         1            7
Profit
Impact of
Corporate    (4)       3          -            -              -              2            -         -            -
Unallocated
Total
Operating    6         3          -            (2)            (2)            2            6         1.5          8
Profit
Net Income
Attributable 11                                                                           9         2            11
to PepsiCo
Net Income
Attributable
to PepsiCo   12                                                                           10        2            12
per common
share -
diluted
             GAAP                                                                         Non-GAAP               Non-GAAP

             Measure                                                                     Measure                Measure
                                                                                                                 Core
             Reported                                                                     Core
             %                                                                            ^(a)      Percent      Constant
                       Percent Impact of Non-Core Adjustments                                                    Currency
             Change                                                                      % Change  Impact of    ^(a)

                                                                                                                 % Change
                                                              Restructuring
                                                              and
                       Commodity               Restructuring
             36 Weeks             Merger and                  other charges  Inventory    36 Weeks  Foreign     36 Weeks
Operating              mark-to-                and                           fair
Profit Year  Ended                integration                 related to                  Ended     exchange     Ended
over Year %            market                  impairment     the            value
Change       9/8/2012  net        charges                                                 9/8/2012  translation  9/8/2012
                                               charges        transaction    adjustments
                       impact                                 with

                                                              Tingyi
Frito-Lay
North        (0.5)     -          -            2              -              -            1         -            1
America
Quaker Foods
North        (11)      -          -            1              -              -            (10)      -            (10)
America
Latin
America      (7)       -          -            6              -              -            (1)       10           9
Foods
 PepsiCo
Americas     (3)       -          -            2              -              -            (1)       2            1
Foods
PepsiCo
Americas     (13)      -          (3)          3              -              (1)          (13)      1            (12)
Beverages
Europe       3         -          (1)          -              -              (3)          -         9            8
Asia, Middle
East &       (14)      -          -            3              19             -            8         1            10
Africa
Division
Operating    (6)       -          (1)          2              2              (0.5)        (4)       2.5          (1.5)
Profit
Impact of
Corporate    -         (2)        (1)          -              -              -            (3)       -            (2.5)
Unallocated
Total
Operating    (7)       (2)        (2)          3              2              (1)          (7)       3            (4)
Profit
Net Income
Attributable (10)                                                                         (9)       3            (6)
to PepsiCo
Net Income
Attributable
to PepsiCo   (9)                                                                          (8)       3            (5)
per common
share -
diluted
(a) Core results and core constant currency results are financial measures that are not in accordance with GAAP and
exclude the above adjustments. See A-17 through A-19 for a discussion of each of these adjustments.
Note - Certain amounts above may not sum due to rounding.
A - 9





PepsiCo, Inc. and Subsidiaries
Reconciliation of GAAP and Non-GAAP Information (cont.)
Certain Line Items
12 Weeks Ended September 7, 2013 and September 8, 2012
(in millions except per share amounts, unaudited)
                  GAAP                                                Non-GAAP
                             Non-Core Adjustments
                  Measure                                             Measure
                  Reported   Commodity                                Core
                             mark-       Merger and                   ^(a)
                  12 Weeks                             Restructuring  12 Weeks
                             to-market   integration
                  Ended      net                       and            Ended
                                         charges       impairment
                  9/7/2013   impact                                   9/7/2013
                                                       charges
                  $        $       $        $        $  
Cost of sales     7,946                  -        -        7,913
                             (33)
Selling, general
and               $        $       $        $        $  
administrative    6,158         14     (9)      (7)        6,156
expenses
Operating profit  $        $       $        $        $  
                  2,780         19      9       7         2,815
Provision for     $      $       $        $        $   
income taxes      654                   2       1         666
                             9
Net income        $        $       $        $        $  
attributable to   1,913         10      7       6         1,936
PepsiCo
Net income
attributable to   $       $       $        $        $   
PepsiCo per       1.23        0.01       -        -        1.24
common share -
diluted
Effective tax     25.4%                                               25.5%
rate
                  GAAP                                                Non-GAAP
                             Non-Core Adjustments
                  Measure                                            Measure
                  Reported   Commodity                                Core
                             mark-       Merger and                   ^(a)
                  12 Weeks                             Restructuring  12 Weeks
                             to-market   integration
                  Ended     net                       and            Ended
                                         charges       impairment
                  9/8/2012  impact                                   9/8/2012
                                                       charges
Cost of sales     $        $       $        $        $  
                  7,833         75      -        -        7,908
Selling, general
and               $        $       $        $        $  
administrative    5,992         46     (2)     (83)         5,953
expenses
Operating profit  $        $       $        $        $  
                  2,800       (121)      2      83          2,764
Provision for     $      $       $        $        $   
income taxes      706                     -      24          679
                             (51)
Net income        $        $       $        $        $  
attributable to   1,902                  2      59          1,893
PepsiCo                      (70)
Net income
attributable to   $       $       $        $        $   
PepsiCo per       1.21        (0.05)      -     0.04           1.20
common share -
diluted
Effective tax     26.9%                                               26.3%
rate
(a) Core results are financial measures that are not in accordance with GAAP
and exclude the above adjustments. See A-17 through A-19 for a discussion of
each of these adjustments.
Note - Certain amounts above may not sum due to rounding.
A - 10





PepsiCo, Inc. and Subsidiaries
Reconciliation of GAAP and Non-GAAP Information (cont.)
Certain Line Items
36 Weeks Ended September 7, 2013 and September 8, 2012
(in millions except per share amounts, unaudited)
               GAAP                                                            Non-GAAP
                         Non-Core Adjustments
               Measure                                                         Measure
               Reported  Commodity                                             Core
                         mark-to-   Merger and                                 ^(a)
               36 Weeks                          Restructuring  Venezuela      36 Weeks
                         market     integration
               Ended     net                     and            currency       Ended
                                    charges      impairment
               9/7/2013  impact                                 devaluation    9/7/2013
                                                 charges
               $        $      $       $        $        $ 
Cost of sales  21,678             -         -             -      21,591
                         (87)
Selling,                 $    
general and    $               $       $        $        $ 
administrative 17,237   13          (9)       (37)           (111)       17,093
expenses
Operating      $       $      $       $        $        $  
profit         7,307             9         37             111        7,538
                         74
Provision for  $       $      $       $        $        $  
income taxes   1,694             2          8              -      1,731
                         27
Net income     $       $      $       $        $        $  
attributable   4,998             7         29             111        5,192
to PepsiCo              47
Net income
attributable   $      $      $       $         $        $   
to PepsiCo per 3.20       0.03    -       0.02           0.07        3.32
common share -
diluted
Effective tax  25.2%                                                           24.9%
rate
               GAAP                                                            Non-GAAP
                         Non-Core Adjustments                                  Measure
               Measure
               Reported                                                        Core
                                                                               ^(a)
                                                                Restructuring
                         Commodity                              and
                         mark-to-   Merger and
               36 Weeks                          Restructuring  other charges  36 Weeks
                         market     integration
               Ended     net                     and            related to     Ended
                                    charges      impairment     the
               9/8/2012  impact                                                9/8/2012
                                                 charges        transaction
                                                                with

                                                                Tingyi
               $        $      $       $        $        $ 
Cost of sales  21,637            -         -             -      21,705
                         68
Selling,                 $    
general and    $               $       $         $        $ 
administrative 16,920   58          (7)       (193)          (137)       16,641
expenses
Operating      $       $      $       $        $        $  
profit         6,899               7        193              137        7,110
                         (126)
Provision for  $       $      $       $        $        $  
income taxes   1,788              1         54             (26)      1,766
                         (51)
Net income     $       $      $       $        $        $  
attributable   4,517              6        139              163        4,750
to PepsiCo              (75)
Net income
attributable   $      $      $       $         $        $   
to PepsiCo per 2.86                -       0.09           0.10        3.01
common share -           (0.05)
diluted
Effective tax  28.2%                                                           27.0%
rate
(a) Core results are financial measures that are not in accordance with GAAP and
exclude the above adjustments. See A-17 through A-19 for a discussion of each of these
adjustments.
Note - Certain amounts above may not sum due to rounding.
A - 11





PepsiCo, Inc. and Subsidiaries
Reconciliation of GAAP and Non-GAAP Information (cont.)
Operating Profit by Division
12 Weeks Ended September 7, 2013 and September 8, 2012
(in millions, unaudited)
               GAAP                                                   Non-GAAP
                            Non-Core Adjustments
               Measure                                                Measure
               Reported     Commodity                                 Core
                            mark-                                     ^(a)
               12 Weeks                  Merger and   Restructuring   12 Weeks
Operating                   to-market
Profit         Ended        net          integration  and impairment  Ended

               9/7/2013     impact       charges      charges         9/7/2013
Frito-Lay      $        $       $       $         $   
North America  977              -       -      1          978
Quaker Foods   137          -            -            -               137
North America
Latin America  295          -            -            1               296
Foods
 PepsiCo     1,409        -            -            2               1,411
Americas Foods
PepsiCo
Americas       843          -            -            3               846
Beverages
Europe         501          -            9            2               512
Asia, Middle   295          -            -            1               296
East & Africa
Division
Operating      3,048        -            9            8               3,065
Profit
Corporate      (268)        19           -            (1)             (250)
Unallocated
Total          $          $       $       $         $  
Operating      2,780          19         9       7         2,815
Profit
               GAAP                                                   Non-GAAP
                            Non-Core Adjustments
               Measure                                                Measure
               Reported     Commodity                                 Core
                            mark-                                     ^(a)
               12 Weeks                  Merger and   Restructuring   12 Weeks
Operating                   to-market
Profit         Ended        net          integration  and impairment  Ended

               9/8/2012     impact       charges      charges         9/8/2012
Frito-Lay      $        $       $       $         $   
North America  917              -       -      8          925
Quaker Foods   154          -            -            1               155
North America
Latin America  219          -            -            29              248
Foods
 PepsiCo     1,290        -            -            38              1,328
Americas Foods
PepsiCo
Americas       837          -            -            33              870
Beverages
Europe         483          -            4            (1)             486
Asia, Middle   317          -            -            6               323
East & Africa
Division
Operating      2,927        -            4            76              3,007
Profit
Corporate      (127)        (121)        (2)          7               (243)
Unallocated
Total          $          $       $       $         $  
Operating      2,800        (121)         2      83          2,764
Profit
(a) Core results are financial measures that are not in accordance with GAAP
and exclude the above adjustments. See A-17 through A-19 for a discussion of
each of these adjustments.
A - 12





PepsiCo, Inc. and Subsidiaries
Reconciliation of GAAP and Non-GAAP Information (cont.)
Operating Profit by Division
36 Weeks Ended September 7, 2013 and September 8, 2012
(in millions, unaudited)
            GAAP                                                              Non-GAAP
                       Non-Core Adjustments
            Measure                                                          Measure
            Reported   Commodity                                              Core
                       mark-                                                  ^(a)
            36 Weeks              Merger and    Restructuring  Venezuela      36 Weeks
                       to-market
Operating   Ended      net        integration   and            currency       Ended
Profit                                          impairment
            9/7/2013  impact     charges                      devaluation    9/7/2013
                                                charges
Frito-Lay   $        $      $        $        $        $  
North       2,711             -          5              -      2,716
America                -
Quaker
Foods North 450        -          -             -              -              450
America
Latin
America     829        -          -             6              -              835
Foods
 PepsiCo
Americas    3,990      -          -             11             -              4,001
Foods
PepsiCo
Americas    2,290      -          -             8              (13)           2,285
Beverages
Europe      1,014      -          9             14             -              1,037
Asia,
Middle East 1,003      -          -             3              -              1,006
& Africa
Division
Operating   8,297      -          9             36             (13)           8,329
Profit
Corporate   (990)      74         -             1              124            (791)
Unallocated
Total       $        $      $        $        $        $  
Operating   7,307              9          37             111        7,538
Profit                 74
            GAAP                                                              Non-GAAP
                       Non-Core Adjustments                                   Measure
            Measure
            Reported                                                          Core
                                                                              ^(a)
                                                               Restructuring
                       Commodity                               and
                       mark-
            36 Weeks              Merger and    Restructuring  other charges  36 Weeks
                       to-market
Operating   Ended      net        integration  and            related to     Ended
Profit                                          impairment     the
            9/8/2012   impact     charges                                     9/8/2012
                                                charges        transaction
                                                               with

                                                               Tingyi
Frito-Lay   $        $      $        $        $        $  
North       2,532             -         40               -      2,572
America                -
Quaker
Foods North 495        -          -             7              -              502
America
Latin
America     673        -          -             41             -              714
Foods
 PepsiCo
Americas    3,700      -          -             88             -              3,788
Foods
PepsiCo
Americas    2,202      -          -             76             -              2,278
Beverages
Europe      1,017      -          7             (2)            -              1,022
Asia,
Middle East 630        -          -             23             137            790
& Africa
Division
Operating   7,549      -          7             185            137            7,878
Profit
Corporate   (650)      (126)      -             8              -              (768)
Unallocated
Total       $        $      $        $        $        $  
Operating   6,899                7         193              137        7,110
Profit                 (126)
(a) Core results are financial measures that are not in accordance with GAAP and
exclude the above adjustments. See A-17 through A-19 for a discussion of each of
these adjustments.
A - 13





PepsiCo, Inc. and Subsidiaries
Reconciliation of GAAP and Non-GAAP Information (cont.)
(unaudited)
Gross Margin Growth
Reconciliation
                                 12 Weeks Ended
                                 9/7/2013
Reported Gross Margin            5                     bps
Growth
Commodity Mark-to-Market Net     65
Impact
Core Gross Margin Growth    70                    bps
Developing and Emerging Markets
Net Revenue Growth
Reconciliation
                                 12 Weeks Ended
                                 9/7/2013
Reported Developing and Emerging 4                     %
Markets Net Revenue Growth
Impact of Acquisitions and       1
Divestitures
Impact of Foreign Exchange       4
Translation
Developing and Emerging Markets  9                     %
Organic Revenue Growth
Operating Margin Growth
Reconciliation
                                 12 Weeks Ended
                                 9/7/2013
Reported Operating Margin        (37)                  bps
Growth
Commodity Mark-to-Market Net     84
Impact
Merger and Integration           4
Charges
Restructuring and Impairment     (46)
Charges
Core Operating Margin            5                     bps
Growth
Net Cash Provided by Operating
Activities Reconciliation (in
millions)
                                 36 Weeks Ended
                                 9/7/2013                  9/8/2012   Growth
Net Cash Provided by Operating                             $    
Activities                      $       6,662               30     %
                                                           5,118
Capital Spending                (1,497)                   (1,409)
Sales of Property, Plant and     51                        58
Equipment
Management Operating Cash Flow  5,216                     3,767
Discretionary Pension and
Retiree Medical Contributions    11                        770
(after-tax)
Merger and Integration Payments  18                        44
(after-tax)
Payments Related to
Restructuring Charges            97                        203
(after-tax)
Payments Related to Income Tax   113                       -
Settlements
Capital Investments Related to   -                         8
PBG/PAS integration
Net Capital Investments Related  1                         12
to Restructuring Plan
Payments for Restructuring and
Other Charges Related to

 the Transaction with          26                        98
Tingyi
Management Operating Cash Flow                             $    
excluding above Items           $       5,482               12     %
                                                           4,902
Diluted EPS Reconciliation
                                 Year Ended
                                 12/29/2012
Reported Diluted EPS        $        3.92
Commodity Mark-to-Market Net     (0.03)
Impact
Merger and Integration           0.01
Charges
Restructuring and Impairment     0.14
Charges
Restructuring and Other Charges
Related to the Transaction with  0.11
Tingyi
Pension Lump Sum Settlement      0.08
Charge
Tax Benefit Related to Tax Court (0.14)
Decision
Core Diluted EPS            $        4.10
Net Cash Provided by Operating
Activities Reconciliation (in
billions)
                                 2013 Guidance
Net Cash Provided by Operating   
Activities                      $
                                 ~9
Net Capital Spending            ~(3)
Management Operating Cash Flow  ~6
Certain Other Items ^(a)        ~1
Management Operating Cash Flow   $
excluding Certain Other          ~7
Items
(a) Certain other items include discretionary pension and retiree medical
contributions, merger and integration

 payments, payments related to restructuringcharges, capital
investments related to the bottling integration, net

 capital investments related to restructuring plan and payments related
to income taxsettlements.
Note - Certain amounts above may not sum due to rounding.
A - 14



Cautionary Statement
Statements in this communication that are "forward-looking statements,"
including our 2013 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," "expressed confidence," "position" or similar statements or variations
of such terms are intended to identify forward-looking statements, although
not all forward-looking statements contain such terms. Forward-looking
statements inherently involve risks and uncertainties 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; changes in the legal and regulatory
environment; PepsiCo's ability to compete effectively; PepsiCo's ability to
grow its business in developing and emerging markets or unstable political
conditions, civil unrest or other developments and risks in the markets where
PepsiCo's products are sold; unfavorable economic conditions in the countries
in which PepsiCo operates; increased costs, disruption of supply or shortages
of raw materials and other supplies; failure to realize anticipated benefits
from PepsiCo's productivity plan or global operating model; disruption of
PepsiCo's supply chain; damage to PepsiCo's reputation; failure to
successfully complete or integrate acquisitions and joint ventures into
PepsiCo's existing operations or to complete or manage divestitures or
refranchisings; PepsiCo's ability to hire or retain key employees or a highly
skilled and diverse workforce; trade consolidation or the loss of any key
customer; any downgrade or potential downgrade of PepsiCo's credit ratings;
PepsiCo's ability to build and sustain proper information technology
infrastructure, successfully implement its ongoing business transformation
initiative or outsource certain functions effectively; fluctuations in foreign
exchange rates; climate change, or legal, regulatory or market measures to
address climate change; failure to successfully renew collective bargaining
agreements or strikes or work stoppages; any infringement of or challenge to
PepsiCo's intellectual property rights; and potential liabilities and costs
from litigation or legal proceedings.

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 the Securities and Exchange Commission,
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
such forward-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 new information, future events or
otherwise.

Miscellaneous Disclosures
In discussing financial results and guidance, the company may refer to certain
non-GAAP measures. Reconciliations of any such non-GAAP measures to the most
directly comparable financial measures in accordance with GAAP can be found in
the attached exhibits, as well as on the company's website at www.pepsico.com
in the "Investors" section under "Events & Presentations." Our non-GAAP
measures exclude from reported results those items that management believes
are not indicative of our ongoing performance and reflect how management
evaluates our operating results and trends.

Glossary
Acquisitions and divestitures: All mergers and acquisitions activity,
including the impact of acquisitions, divestitures and changes in ownership or
control in consolidated subsidiaries and nonconsolidated equity investees.

Beverage volume: Volume shipped to retailers and independent distributors from
both PepsiCo and our bottlers.

Constant currency: Financial results assuming constant foreign currency
exchange rates used for translation based on the rates in effect for the
comparable prior-year period. In order to compute our constant currency
results, we multiply or divide, as appropriate, our current year U.S. dollar
results by the current year average foreign exchange rates and then multiply
or divide, as appropriate, those amounts by the prior year average foreign
exchange rates.

Core: Core results are non-GAAP financial measures which exclude certain items
from our historical results. In 2013, core results exclude the commodity
mark-to-market net impact included in corporate unallocated expenses, merger
and integration charges in connection with our acquisition of Wimm-Bill-Dann
Foods OJSC (WBD), restructuring and impairment charges and a charge related to
the Venezuela currency devaluation. In 2012, core results exclude the
commodity mark-to-market net impact included in corporate unallocated
expenses, merger and integration charges in connection with our acquisition of
WBD, restructuring and impairment charges, restructuring and other charges
related to the transaction with Tingyi, a pension lump sum settlement charge
and a tax benefit related to a tax court decision. See "Reconciliation of GAAP
and Non-GAAP Information" for additional information.

Division operating profit: The aggregation of the operating profit for each of
our reportable segments, which excludes the impact of corporate unallocated
expenses.

Effective net pricing: Reflects the year-over-year impact of discrete pricing
actions, sales incentive activities and mix resulting from selling varying
products in different package sizes and in different countries.

Management operating cash flow: Net cash provided by operating activities less
capital spending plus sales of property, plant and equipment. See above for a
reconciliation of this non-GAAP financial measure to the most directly
comparable financial measure in accordance with GAAP (operating cash flow).

Management operating cash flow, excluding certain items: Management operating
cash flow, excluding: (1) discretionary pension and retiree medical
contributions, (2) merger and integration payments in connection with The
Pepsi Bottling Group, Inc. (PBG), PepsiAmericas, Inc. (PAS) and WBD
acquisitions, (3) payments related to restructuring charges, (4) payments
related to income tax settlements, (5) capital investments related to the
bottling integration, (6) net capital investments related to restructuring
plan, (7) payments for restructuring and other charges related to the
transaction with Tingyi and (8) the tax impacts associated with each of these
items, as applicable. This non-GAAP financial measure is our primary measure
used to monitor cash flow performance. See above for a reconciliation of this
non-GAAP financial measure to the most directly comparable financial measure
in accordance with GAAP (operating cash flow). See "Reconciliation of GAAP and
Non-GAAP Information" for additional information. 

Mark-to-market gain or loss or net impact: Change in market value for
commodity contracts that we purchase to mitigate the volatility in costs of
energy and raw materials that we consume. The market value is determined based
on average prices on national exchanges and recently reported transactions in
the marketplace.

Net capital spending: Capital spending less cash proceeds from sales of
property, plant and equipment.

Organic: A measure that adjusts for impacts of acquisitions, divestitures and
other structural changes, and in the case of organic revenue, foreign exchange
translation. In excluding the impact of foreign exchange translation, we
assume constant foreign exchange rates used for translation based on the rates
in effect for the comparable prior-year period. See the definition of
"Constant currency" for additional information.

Reconciliation of GAAP and Non-GAAP Information (unaudited)
Division operating profit, core results, core constant currency results and
organic results are non-GAAP financial measures as they exclude certain items
noted below. However, we believe investors should consider these measures as
they are more indicative of our ongoing performance and reflect how management
evaluates our operational results and trends.

Commodity mark-to-market net impact

In the 12 weeks ended September 7, 2013, we recognized $19 million of
mark-to-market net losses on commodity hedges in corporate unallocated
expenses. In the 36 weeks ended September 7, 2013, we recognized $74 million
of mark-to-market net losses on commodity hedges in corporate unallocated
expenses. In the 12 weeks ended September 8, 2012, we recognized $121 million
of mark-to-market net gains on commodity hedges in corporate unallocated
expenses. In the 36 weeks ended September 8, 2012, we recognized $126 million
of mark-to-market net gains on commodity hedges in corporate unallocated
expenses. In the year ended December 29, 2012, we recognized $65 million of
mark-to-market net gains on commodity hedges in corporate unallocated
expenses. We centrally manage commodity derivatives on behalf of our
divisions. These commodity derivatives include agricultural products, energy
and metals. Certain of these commodity derivatives do not qualify for hedge
accounting treatment and are marked to market with the resulting gains and
losses recognized in corporate unallocated expenses. These gains and losses
are subsequently reflected in division results when the divisions recognize
the cost of the underlying commodity in net income.

Merger and integration charges

In the 12 and 36 weeks ended September 7, 2013, we incurred merger and
integration charges of $9 million related to our acquisition of WBD recorded
in the Europe segment. In the 12 weeks ended September 8, 2012, we incurred
merger and integration charges of $2 million related to our acquisition of
WBD, including $4 million recorded in the Europe segment and income of $2
million recorded in corporate unallocated expenses representing adjustments of
previously recorded amounts. In the 36 weeks ended September 8, 2012, we
incurred merger and integration charges of $7 million related to our
acquisition of WBD recorded in the Europe segment. In the year ended
December29, 2012, we incurred merger and integration charges of $16 million
related to our acquisition of WBD, including $11 million recorded in the
Europe segment and $5 million recorded in interest expense.

Restructuring and impairment charges

In the 12 weeks ended September 7, 2013, we incurred restructuring and
impairment charges of $7 million in conjunction with our Productivity Plan,
including $1 million recorded in the FLNA segment, $1 million recorded in the
LAF segment, $3 million recorded in the PAB segment, $2 million recorded in
the Europe segment, $1 million recorded in the AMEA segment and income of $1
million recorded in corporate unallocated expenses representing adjustments of
previously recorded amounts. In the 36 weeks ended September 7, 2013, we
incurred restructuring and impairment charges of $37 million in conjunction
with our Productivity Plan, including $5 million recorded in the FLNA segment,
$6 million recorded in the LAF segment, $8 million recorded in the PAB
segment, $14 million recorded in the Europe segment, $3 million recorded in
the AMEA segment and $1 million recorded in corporate unallocated expenses. In
the 12 weeks ended September 8, 2012, we incurred restructuring and impairment
charges of $83 million in conjunction with our Productivity Plan, including $8
million recorded in the FLNA segment, $1 million recorded in the QFNA segment,
$29 million recorded in the LAF segment, $33 million recorded in the PAB
segment, $6 million recorded in the AMEA segment, $7 million recorded in
corporate unallocated expenses and income of $1 million recorded in the Europe
segment representing adjustments of previously recorded amounts. In the 36
weeks ended September 8, 2012, we incurred restructuring and impairment
charges of $193 million in conjunction with our Productivity Plan, including
$40 million recorded in the FLNA segment, $7 million recorded in the QFNA
segment, $41 million recorded in the LAF segment, $76 million recorded in the
PAB segment, $23 million recorded in the AMEA segment, $8 million recorded in
corporate unallocated expenses and income of $2 million recorded in the Europe
segment representing adjustments of previously recorded amounts. In the year
ended December29, 2012, we incurred restructuring charges of $279 million in
conjunction with our Productivity Plan, including $38 million recorded in the
FLNA segment, $9 million recorded in the QFNA segment, $50 million recorded in
the LAF segment, $102 million recorded in the PAB segment, $42 million
recorded in the Europe segment, $28 million recorded in the AMEA segment and
$10 million recorded in corporate unallocated expenses. The Productivity Plan
includes actions in every aspect of our business that we believe will
strengthen our complementary food, snack and beverage businesses by leveraging
new technologies and processes across PepsiCo's operations, go-to-market and
information systems; heightening the focus on best practice sharing across the
globe; consolidating manufacturing, warehouse and sales facilities; and
implementing simplified organization structures, with wider spans of control
and fewer layers of management.

Venezuela currency devaluation

In the 36 weeks ended September 7, 2013, we recorded a $111 million net charge
related to the devaluation of the bolivar fuerte for our Venezuela businesses.
$124 million of this charge was recorded in corporate unallocated expenses,
with the balance (equity income of $13 million) recorded in our PAB segment.

Restructuring and other charges related to the transaction with Tingyi

In the 36 weeks ended September 8, 2012, we recorded restructuring and other
charges of $137 million in the AMEA segment related to the transaction with
Tingyi. In the year ended December29, 2012, we recorded restructuring and
other charges of $150 million in the AMEA segment related to the transaction
with Tingyi.

Pension lump sum settlement charge

In the year ended December29, 2012, we recorded a pension lump sum settlement
charge of $195 million in corporate unallocated expenses.

Tax benefit related to tax court decision

In the year ended December29, 2012, we recognized a non-cash tax benefit of
$217 million associated with a favorable tax court decision related to the
classification of financial instruments.

Management operating cash flow (excluding certain items)

Additionally, management operating cash flow (excluding the items noted in the
Net Cash Provided by Operating Activities Reconciliation table) is an
important element in evaluating our performance. This is not a measure defined
by GAAP. Since net capital spending is essential to our product innovation
initiatives and maintaining our operational capabilities, we believe that it
is a recurring and necessary use of cash. As such, we believe investors should
also consider net capital spending when evaluating our cash from operating
activities. Additionally, we consider certain other items (included in the Net
Cash Provided by Operating Activities Reconciliation table) in evaluating
management operating cash flow which we believe investors should consider in
evaluating our management operating cash flow results.

2013 guidance

Our 2013 core tax rate guidance and our 2013 core constant currency EPS
guidance exclude the commodity mark-to-market net impact included in corporate
unallocated expenses, merger and integration charges in connection with our
acquisition of WBD, restructuring and impairment charges and charges related
to the Venezuela currency devaluation. Our 2013 organic revenue guidance
excludes the impact of acquisitions, divestitures and other structural
changes. In addition, our 2013 organic revenue guidance and our 2013 core
constant currency EPS guidance exclude the impact of foreign exchange. We are
not able to reconcile our full-year projected 2013 core tax rate guidance to
our full-year projected 2013 reported tax rate or our 2013 core constant
currency EPS guidance to our full-year projected 2013 reported EPS growth
because we are unable to predict the 2013 impact of foreign exchange or the
mark-to-market net impact on commodity hedges due to the unpredictability of
future changes in foreign exchange rates and commodity prices. We are also
unable to reconcile our full-year projected 2013 organic revenue guidance to
our full-year projected 2013 reported net revenue growth because we are unable
to predict the 2013 impact of foreign exchange due to the unpredictability of
future changes in foreign exchange rates. Therefore, we are unable to provide
a reconciliation of these measures.

SOURCE PepsiCo, Inc.

Website: http://www.pepsico.com
Contact: Investor: Jamie Caulfield, Senior Vice President, Investor Relations,
914-253-3035, jamie.caulfield@pepsico.com; Media: Jeff Dahncke, Senior
Director, Media Bureau, 914-253-3941, jeff.dahncke@pepsico.com
 
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