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Hoover's Online Report BuilderPepsiCo, Inc. (NYSE: PEP)

Copyright 2004, Hoover's, Inc.

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Table of ContentsThe Basics...............................................................................................................................................................................1

Key Numbers.............................................................................................................................................................1Financial Overview....................................................................................................................................................1Officers & Employees................................................................................................................................................1Board Members..........................................................................................................................................................3Industry Information..................................................................................................................................................4SIC Codes...................................................................................................................................................................4NAICS Codes.............................................................................................................................................................4Top Competitors.........................................................................................................................................................4All Competitors..........................................................................................................................................................4Rankings.....................................................................................................................................................................5Subsidiaries/Affiliates Covered By Hoover's Online.................................................................................................5

Biographies............................................................................................................................................................................6 Steven S. Reinemund, Age 55...................................................................................................................................6 Indra K. Nooyi, Age 48.............................................................................................................................................6 Robert S. (Bob) Morrison, Age 62............................................................................................................................6 Abelardo E. (Al) Bru, Age 55...................................................................................................................................7 Gary M. Rodkin, Age 51...........................................................................................................................................7 Michael D. White, Age 52........................................................................................................................................8 Lionel L. Nowell III, Age 49....................................................................................................................................8 Peter A. Bridgman, Age 51.......................................................................................................................................9 Dave Burwick, Age 40..............................................................................................................................................9 Brian Cornell, Age 43...............................................................................................................................................9 Matthew M. (Matt) McKenna, Age 53...................................................................................................................10 Paula Banks.............................................................................................................................................................10 David R. Andrews, Age 62.....................................................................................................................................10 Margaret D. (Peggy) Moore, Age 56......................................................................................................................11 Charles I. Maniscalco..............................................................................................................................................11 Dawn E. Hudson.....................................................................................................................................................11 Polly B. Kawalek, Age 49.......................................................................................................................................12 Albert P. (Al) Carey, Age 51..................................................................................................................................12 Rebecca Madeira.....................................................................................................................................................13 Katie Lacey.............................................................................................................................................................13 Andre Hawaux........................................................................................................................................................14 Steve Sears..............................................................................................................................................................14 Frank Cooper...........................................................................................................................................................14 Cie Nicholson, Age 39............................................................................................................................................14 Brian Cornell, Age 43.............................................................................................................................................15 John Delpino...........................................................................................................................................................15 Mike Dillon.............................................................................................................................................................15 Joan Pertak..............................................................................................................................................................15 Brock H. Leach, Age 43..........................................................................................................................................16 John F. Akers, Age 69.............................................................................................................................................16 Robert E. Allen, Age 68..........................................................................................................................................16 Peter Foy, Age 62....................................................................................................................................................17 Ray L. Hunt, Age 60...............................................................................................................................................17 Arthur C. Martinez, Age 63....................................................................................................................................18 Franklin D. Raines, Age 55.....................................................................................................................................18

Report Builder − PepsiCo, Inc. − Hoover's Online

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Table of ContentsBiographies

Sharon Percy Rockefeller........................................................................................................................................19 James J. (Jim) Schiro, Age 57.................................................................................................................................19 Franklin A. Thomas, Age 69...................................................................................................................................19 Cynthia M. Trudell, Age 50....................................................................................................................................20 Solomon D. Trujillo, Age 51...................................................................................................................................21

Overview..............................................................................................................................................................................22

History..................................................................................................................................................................................23

Products/Operations...........................................................................................................................................................24

Other Resources Available On Hoover's Online..............................................................................................................28Other Resources.......................................................................................................................................................28Related Products From Our Trusted Partners..........................................................................................................28

Annual Financials................................................................................................................................................................29

Quarterly Financials...........................................................................................................................................................31

Historical Financials & Employees....................................................................................................................................34

Market Data.........................................................................................................................................................................36

Comparison Data.................................................................................................................................................................37

Competitive Landscape.......................................................................................................................................................39

Report Builder − PepsiCo, Inc. − Hoover's Online

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The Basics

700 Anderson Hill Rd.Purchase, NY 10577−1444 (Map)http://www.pepsico.com

Phone: 914−253−2000Fax: 914−253−2070

The PepsiCo challenge −− to keep up with archrival The Coca−Cola Company −− never ends for the world's #2soft−drink maker. PepsiCo's soft drinks (including Pepsi, Mountain Dew, Slice) make up about one−quarter of its sales.(Bottling operations are run independently.) PepsiCo also owns Frito−Lay, the world's #1 maker of snacks such as cornchips (Doritos, Fritos) and potato chips (Lay's, Ruffles, WOW!). PepsiCo sells its Gatorade sports drink and Tropicanaorange juice brands through other divisions. The company also sells Aquafina bottled water, Dole juices (licensed), Liptonready−to−drink tea, and Rold Gold pretzels.

Key Numbers

Company Type Public (NYSE: PEP)

Fiscal Year−End December

2003 Sales (mil.) $26,971.0

1−Year Sales Growth 7.4%

2003 Net Income (mil.) $3,568.0

1−Year Net Income Growth 7.7%

2002 Employees 142,000

1−Year Employee Growth (0.7%)

Auditor KPMG LLP

Financial Overview

Last Close 10−Mar−2004 $52.24

52−Week High $53.00

52−Week Low $38.06

Basic EPS $2.05

Price/Earnings Ratio 25.48

Current Ratio 1.08

R&D Expenditures (mil.) −−

Ad Expenditures (mil.) −−

% Owned by Institutions 66.10%

Officers & Employees

Title Name Age Salary Bonus

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Chairman and CEO Steven S. Reinemund 55 $1,000,000 $3,150,000

President, CFO, and Director Indra K. Nooyi 48 $700,000 $1,350,000

Vice Chairman; Chairman,President, and CEO, The QuakerOats Company

Robert S. (Bob) Morrison 62 $1,017,959 $2,000,000

Chairman and CEO, Frito−LayNorth America

Abelardo E. (Al) Bru 55

Chairman and CEO, PepsiCoBeverages and Foods NorthAmerica

Gary M. Rodkin 51 $673,076 $1,057,470

Chairman and CEO, PepsiCoInternational

Michael D. White 52

SVP and Treasurer Lionel L. Nowell III 49

SVP and Controller Peter A. Bridgman 51

SVP and Chief MarketingOfficer, Pepsi−Cola NorthAmerica

Dave Burwick 40

SVP and President, Pepsi−ColaNorth America Foodservice

Brian Cornell 43

SVP, Finance Matthew M. (Matt) McKenna 53 $366,938 $261,540

SVP, Finance, Investor Relations Jack F. Callahan Jr.

SVP, Global Diversity andOrganization Partnerships

Paula Banks

SVP, Government Affairs,General Counsel, and Secretary

David R. Andrews 62

SVP, Human Resources Margaret D. (Peggy) Moore 56

VP, Sales Foodservice andVending

Jane Sumner

President, Pepsi Canada (Effective

in 2004)Thomas L. Bené

President, Gatorade Charles I. Maniscalco

President, PepsiCo SharedServices (CIO, CTO)

Shauna King

President, Pepsi−Cola NorthAmerica

Dawn E. Hudson

President, Quaker U.S. Foods Polly B. Kawalek 49

President, Sales Albert P. (Al) Carey 51

SVP, Public Affairs, Pepsi−ColaNorth America

Rebecca Madeira

VP, Colas and Media, Pepsi−ColaNorth America

Katie Lacey


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VP, Industry Relations,Pepsi−Cola North America andPepsiCo Sales

Steve Caldeira

VP, Finance and CFO,Pepsi−Cola North America

Andre Hawaux

VP, Marketing, Flavors,Pepsi−Cola North America

Steve Sears

VP, Multicultural Marketing,Pepsi−Cola North America

Frank Cooper

VP, Noncarbonated Beverages,Pepsi−Cola North America

Cie Nicholson 39

President, Food Service Division,Pepsi−Cola North America

Brian Cornell 43

Director, Human Resources,Pepsi−Cola North America

John Delpino

Director, Packaging Innovation,Pepsi−Cola North America

Mike Dillon

Divisional CIO, Pepsi−ColaNorth America

Joan Pertak

Special Development Projects Brock H. Leach 43

Director, Alternative Beverages Robin Kaminsky

Chief Personnel Officer Lucien Alziari

Board Members

Title Name Age

Chairman and CEO Steven S. Reinemund 55

President, CFO, and Director Indra K. Nooyi 48

Director John F. Akers 69

Director Robert E. Allen 68

Director Peter Foy 62

Director Ray L. Hunt 60

Director Arthur C. Martinez 63

Director Franklin D. Raines 55

Director Sharon Percy Rockefeller

Director James J. (Jim) Schiro 57

Director Franklin A. Thomas 69

Director Cynthia M. Trudell 50

Director Solomon D. Trujillo 51

Director Daniel L. Vasella 50

























Industry Information

BeveragesNonalcoholic Beverages

Carbonated Beverages (primary)◊ Coffee & Tea◊ Energy, Sports, Health & Nutritional Drinks◊ Juice◊ Water & Ice◊

♦ •

FoodGrains

Milled Grains, Flours & Baking Mixes◊ Pastas & Cereals◊

♦

Snack Foods♦ Sugar & Sweeteners♦

•

SIC Codes

2043 Cereal breakfast foods

2045 Prepared flour mixes and doughs

2086 Bottled and canned soft drinks

2095 Roasted coffee

2096 Potato chips and similar snacks

NAICS Codes

311230 Breakfast Cereal Manufacturing

311411 Frozen Fruit, Juice, and Vegetable Manufacturing

311822 Flour Mixes and Dough Manufacturing from Purchased Flour

311919 Other Snack Food Manufacturing

311920 Coffee and Tea Manufacturing

312111 Soft Drink Manufacturing

312112 Bottled Water Manufacturing

Top Competitors

Cadbury Schweppes• Coca−Cola• Kraft Foods•

All Competitors

Bimbo• Cadbury Schweppes• Campbell Soup• Chiquita Brands• Coca−Cola• ConAgra•


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Cott• Danone• Ferolito, Vultaggio• Florida's Natural• General Mills• Golden Enterprises• Kellogg Snacks• Kraft Foods• Lance• Naked Juice• National Beverage• National Grape Cooperative• Nestlé• Nestlé Waters North America• Northland Cranberries• Ocean Spray• Procter & Gamble• Suntory• Virgin Group•

Rankings

#62 in FORTUNE 500 • S&P 500• Dow Jones Global Titans • #33 in FT Global 500 •

Subsidiaries/Affiliates Covered By Hoover's Online

Frito−Lay, Inc.• Gatorade/Tropicana North America• The Pepsi Bottling Group, Inc.

Pepsi Bottling Co. of Knoxville♦ •

Pepsi Bottling Ventures, LLC• Pepsi−Cola North America• PepsiCo International• Pepsi−Cola Bottling Company of NY, Inc.• South Beach Beverage Company•





















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Biographies

Steven S. Reinemund, Age 55

Chairman and CEO, $1,000,000 salary, $3,150,000 bonus

Other Company Affiliations

Company Title Salary Bonus

Johnson & Johnson DirectorBiography

Steven S Reinemund has been PepsiCo's Chairman and Chief Executive Officer since May 2001. He was elected adirector of PepsiCo in 1996 and before assuming his current position, served as President and Chief Operating Officerfrom September 1999 until May 2001. Mr. Reinemund began his career with PepsiCo in 1984 as a senior operating officerof Pizza Hut, Inc. He became President and Chief Executive Officer of Pizza Hut in 1986, and President and ChiefExecutive Officer of Pizza Hut Worldwide in 1991. In 1992, Mr. Reinemund became President and Chief ExecutiveOfficer of Frito−Lay, Inc., and Chairman and Chief Executive Officer of the Frito−Lay Company in 1996. Mr.Reinemund is also a director of Johnson & Johnson.

Source: 10K, March 4, 2004

Indra K. Nooyi, Age 48

President, CFO, and Director, $700,000 salary, $1,350,000 bonus



Motorola, Inc. DirectorBiography

Indra K. Nooyi was elected to PepsiCo's Board and became President and Chief Financial Officer in May 2001, afterserving as Senior Vice President and Chief Financial Officer since February 2000. Ms. Nooyi also served as Senior VicePresident, Strategic Planning and Senior Vice President, Corporate Strategy and Development from 1994 until 2000. Priorto joining PepsiCo, Ms. Nooyi spent four years as Senior Vice President of Strategy, Planning and Strategic Marketing forAsea Brown Boveri, Inc. She was also Vice President and Director of Corporate Strategy and Planning at Motorola, Inc.Ms. Nooyi is also a director of Motorola, Inc.

Source: S−1, March 4, 2004

Robert S. (Bob) Morrison, Age 62

Vice Chairman; Chairman, President, and CEO, The Quaker Oats Company, $1,017,959 salary, $2,000,000 bonus






Aon Corporation Director

Tribune Company DirectorRecent Work Highlights

The Quaker Oats CompanyLast position held, Chairman, President and CEO♦

•

Biography

Robert S. Morrison is Vice Chairman of PepsiCo and Chairman, President and Chief Executive Officer of The QuakerOats Company. Mr. Morrison became Vice Chairman of PepsiCo in August 2001, upon completion of the merger withQuaker. He was elected Quaker's Chairman, President and Chief Executive Officer in 1997. Prior to joining Quaker, Mr.Morrison was Chief Executive Officer of Kraft, Inc. from 1994 to 1997. Previously, he served as President of KraftRefrigerated Products Group, President of Kraft General Foods Canada and President of General Foods U.S.A.


Abelardo E. (Al) Bru, Age 55

Chairman and CEO, Frito−Lay North America

Biography

Abelardo E. Bru was appointed Chairman and Chief Executive Officer of Frito−Lay North America in February 2003.Mr. Bru served as President and Chief Executive Officer of Frito−Lay North America from 1999 to 2003 and as Presidentand General Manager of PepsiCo's Sabritas snack unit from 1992 to 1999. Mr. Bru has served in various seniorinternational positions with PepsiCo Foods International since joining PepsiCo in 1976.


Gary M. Rodkin, Age 51

Chairman and CEO, PepsiCo Beverages and Foods North America, $673,076 salary, $1,057,470 bonus

Biography

Gary M. Rodkin was appointed Chairman and Chief Executive Officer of PepsiCo Beverages and Foods North Americain February 2003. Mr. Rodkin became President and Chief Executive Officer of PepsiCo Beverages and Foods NorthAmerica in 2002. He served as President and Chief Executive Officer of Pepsi−Cola North America from 1999 to 2002.Mr. Rodkin was President of Tropicana North America from 1995 to 1998, and became President and Chief ExecutiveOfficer of Tropicana when PepsiCo acquired it in 1998.





Michael D. White, Age 52

Chairman and CEO, PepsiCo International



PepsiCo International Chairman and CEO, PepsiCo InternationalRecent Work Highlights

PepsiCo, Inc.Title held until 2003: President and CEO, Frito−Lay Europe, Africa, and Middle East and Quaker FoodsEurope

♦ •

Biography

Michael D. White was appointed Chairman and Chief Executive Officer of PepsiCo International in February 2003, afterserving as President and Chief Executive Officer of Frito−Lay's Europe/Africa/Middle East division since 2000. From1998 to 2000, Mr. White was Senior Vice President and Chief Financial Officer of PepsiCo. Mr. White has also served asExecutive Vice President and Chief Financial Officer of PepsiCo Foods International and Chief Financial Officer ofFrito−Lay North America. He joined Frito−Lay in 1990 as Vice President of Planning.


Lionel L. Nowell III, Age 49

SVP and Treasurer



Church & Dwight Co., Inc. Director

PepsiAmericas, Inc. DirectorBiography

Lionel L. Nowell III has been our Senior Vice President and Treasurer since August 2001. Mr. Nowell joined PepsiCo asSenior Vice President and Controller in 1999 and then became Senior Vice President and Chief Financial Officer of ThePepsi Bottling Group. Prior to joining PepsiCo, he was Senior Vice President, Strategy and Business Development forRJR Nabisco, Inc. From 1991 to 1998, he served as Chief Financial Officer of Pillsbury North America, and its PillsburyFoodservice and Haagen Dazs units, serving as Vice President and Controller of the Pillsbury Company, Vice President ofFood and International Retailing Audit, and Director of Internal Audit.






Peter A. Bridgman, Age 51

SVP and Controller

Biography

Peter A. Bridgman has been our Senior Vice President and Controller since August 2000. Mr. Bridgman began his careerwith PepsiCo at Pepsi−Cola International in 1985 and became Chief Financial Officer for Central Europe in 1990. Hebecame Senior Vice President and Controller for Pepsi−Cola North America in 1992 and Senior Vice President andController for The Pepsi Bottling Group, Inc. in 1999.


Dave Burwick, Age 40

SVP and Chief Marketing Officer, Pepsi−Cola North America



Pepsi−Cola North America Chief Marketing OfficerBiography

Dave Burwick was named senior vice president and chief marketing officer of Pepsi−Cola North America. Burwick −formerly senior vice president, marketing, carbonated soft drink brands − will broaden his reach to oversee bothcarbonated and non−carbonated brand marketing, product innovation, marketplace initiatives and consumer insights. Hewill report to Dawn Hudson, who was named president of Pepsi−Cola North America in early June.

Source: Company Press Release, June 20, 2002

Brian Cornell, Age 43

SVP and President, Pepsi−Cola North America Foodservice

Recent Work Highlights

PepsiCo, Inc.Title held until 2004: President, Food Service Division, Pepsi−Cola North America♦

•

Biography

Cornell was regional president of Europe for PepsiCo Beverages International, another unit of Purchase, New York−basedPepsiCo. He has been with PepsiCo since 1998 and joined Tropicana, now part of PepsiCo, in 1991, the company said. Hehad also been responsible for noncarbonated drinks marketing at PepsiCo Beverages International.

Source: Company Press Release, August 12, 2002



Matthew M. (Matt) McKenna, Age 53

SVP, Finance, $366,938 salary, $261,540 bonus



PepsiAmericas, Inc. DirectorBiography

Matthew M. McKenna has been our Senior Vice President of Finance since August 2001. Mr. McKenna began his careerat PepsiCo as Vice President, Taxes in 1993. In 1998, he became Senior Vice President, Taxes and served as Senior VicePresident and Treasurer from 1998 until 2001. Prior to joining PepsiCo, he was a partner with the law firm of Winthrop,Stimson, Putnam & Roberts in New York.


Paula Banks

SVP, Global Diversity and Organization Partnerships

Biography

Ms. Banks, who reports to Chairman and Chief Executive Officer Steve Reinemund, joined PepsiCo from BP Amoco, theworld's second largest transnational oil company. From 1999 to 2003 she worked at the company's London headquartersas senior vice president, social strategy and policy and as president of the BP Foundation, in which she was charged withbuilding stronger relationships between BP and the communities in which it operates around the world. Previously sheworked in Chicago as president of the Amoco Foundation and director of corporate affairs for Amoco. Earlier she spent24 years at Sears Roebuck and Co. in a variety of positions including retail management, human resources, external affairsand public relations and served as president of the Sears Roebuck Foundation.


David R. Andrews, Age 62

SVP, Government Affairs, General Counsel, and Secretary



PG&E Corporation Director

UnionBanCal Corporation Director





Biography

David R. Andrews became PepsiCo's Senior Vice President, Government Affairs, General Counsel and Secretary inFebruary 2002. Before joining PepsiCo, Mr. Andrews was a partner in the law firm of McCutchen, Doyle, Brown &Enersen, LLP, a position he held from 2000 to 2002 and from 1981 to 1997. From 1997 to 2000, he served as the legaladviser to the U.S. Department of State and former Secretary of State Madeleine Albright.


Margaret D. (Peggy) Moore, Age 56

SVP, Human Resources



The Pepsi Bottling Group, Inc. DirectorBiography

Margaret D. Moore is our Senior Vice President, Human Resources, a position she assumed at the end of 1999. FromNovember 1998 to December 1999, she was Senior Vice President and Treasurer of The Pepsi Bottling Group, Inc.(PBG). Prior to joining PBG, Ms. Moore spent 25 years with PepsiCo in a number of senior financial and humanresources positions.


Charles I. Maniscalco

President, Gatorade


The Quaker Oats CompanyLast position held, SVP; President, US Beverages♦

•

Biography

Charles I. Maniscalco, a 21−year Quaker veteran, will succeed Wellington as President of U.S. Beverages withresponsibility for Gatorade. Maniscalco joined Quaker in 1980 and has held a succession of key marketing and generalmanagement positions involving Gatorade and other Quaker brands. Maniscalco served as president of Quaker's snackbusiness from 1998 until the present, a period that saw strong growth.

Source: Company Press Release, February 6, 2002

Dawn E. Hudson

President, Pepsi−Cola North America





Pepsi−Cola North America PresidentBiography

Dawn Hudson became president of Pepsi−Cola North America (PCNA) in June 2002. Having served most recently assenior vice president, strategy and marketing for PCNA, Hudson is a preeminent marketer with more than 20 years ofexperience building some of the world's best−known consumer brands. At PCNA, she has led brand strategy andmarketing, channel strategy, product innovation, research and development and joint ventures. Since 1998, Hudson hasbeen responsible for developing creative advertising, packaging, merchandising and promotional programs which havebeen highly effective in driving volume growth. Driven largely by innovation, PCNA was the industry's fastest−growingtotal beverage company in 2001, outpacing its primary competitor in volume and share gains. In 1999, Hudson launchedPepsi's popular "Joy of Cola" campaign and guided Pepsi into its largest summer promotion ever, a tie−in with "StarWars, Episode I − The Phantom Menace." In 2000, she helped revitalize the Pepsi Challenge after a 17−year hiatus. And,in 2001, she launched new "Joy of Pepsi" advertising featuring Britney Spears and oversaw the hugely successfulintroductions of Mountain Dew Code Red and Pepsi Twist. Hudson joined PepsiCo in 1996 as executive vice president ofsales and marketing for Frito−Lay. She was previously managing director at D'Arcy Masius Benton & Bowles in NewYork. Prior to that, she was a managing partner in the New York/Chicago offices of DDB Needham, where she also wasdirector of account management and integrated marketing. In the early 1980s, Hudson was a partner at TLK in Chicagoand a brand manager for Bristol Myers.


Polly B. Kawalek, Age 49

President, Quaker U.S. Foods



Kimball International, Inc. DirectorRecent Work Highlights

The Quaker Oats CompanyLast position held, SVP; President, US Foods♦

•

Albert P. (Al) Carey, Age 51

President, Sales


PepsiCo, Inc.Title held until 2003: COO, PepsiCo Beverages and Foods North America♦

•

The Quaker Oats Company•




Last position held, Sales Team Leader♦

Biography

The company named Al Carey President of PepsiCo sales, a position from which he will lead a cross−divisional drive topresent a "unified PepsiCo message" to customers. Carey was named chief operating officer of PepsiCo Beverages andFoods North America in June 2002 with the sales teams for Quaker, Tropicana and PCNA reporting to him. Carey willoversee all sales, customer strategies and go− to−market initiatives for the combined PCNA, Gatorade, Tropicana andQuaker businesses. He worked closely with the presidents of each of those units. Carey led "Power of One" initiatives toleverage the combined strength of PepsiCo's beverage and snack divisions worldwide. At PCNA, since the 1999 spin−offof company−owned bottling operations into The Pepsi Bottling Group, Carey has played a key role in realigning the salesorganization to work more closely and effectively with its bottlers and retail customers. He has overseen all channeldevelopment, including small− and large−format, foodservice and a new sales force dedicated to non−carbonated brands,the fastest−growing part of the business. Under his stewardship, PCNA has continued to win new accounts and createsignificant new business alliances, including United Airlines, Blimpie International, Bob's Big Boy and several regionalfountain accounts. After seven years in sales at Procter & Gamble, Carey joined Frito−Lay as director of tradedevelopment in 1981. Subsequent positions with Frito−Lay included vice president of national sales, vicepresident/general manager of direct sales and division president of Frito−Lay West. Prior to assuming his current roleswith PCNA and PepsiCo, Carey served as chief operating officer of Frito−Lay North America, where he was responsiblefor day−to−day retail and foodservice operations.

Source: Company Press Release, February 6, 2003

Rebecca Madeira

SVP, Public Affairs, Pepsi−Cola North America



Pepsi−Cola North America SVP, Public Affairs

Katie Lacey

VP, Colas and Media, Pepsi−Cola North America



Pepsi−Cola North America VP, Marketing, Colas and MediaBiography

Katie Lacey has been named vice president−colas and media. Previously, Lacey was responsible for all brands under thePepsi trademark, and worked on the launch of Pepsi Twist and the development of Pepsi Blue, a blue, berry−flavored colathat will begin selling later in 2002.





Andre Hawaux

VP, Finance and CFO, Pepsi−Cola North America



Pepsi−Cola North America VP, Finance and CFO

Steve Sears

VP, Marketing, Flavors, Pepsi−Cola North America



Pepsi−Cola North America VP, Marketing, FlavorsRecent Work Highlights

Pepsi−Cola North AmericaTitle held until 2004: VP, Marketing, Noncarbonated Beverages♦

•

Frank Cooper

VP, Multicultural Marketing, Pepsi−Cola North America



Pepsi−Cola North America Multicultural Marketing

Cie Nicholson, Age 39

VP, Noncarbonated Beverages, Pepsi−Cola North America



Pepsi−Cola North America VP, Noncarbonated Beverages








Pepsi−Cola North AmericaTitle held until 2004: VP, Flavors♦

•

Brian Cornell, Age 43

President, Food Service Division, Pepsi−Cola North America



Pepsi−Cola North America SVP Sales and President, Food Service Division

John Delpino

Director, Human Resources, Pepsi−Cola North America



Pepsi−Cola North America Director, Human Resources

Mike Dillon

Director, Packaging Innovation, Pepsi−Cola North America



Pepsi−Cola North America Director, Packaging Innovation

Joan Pertak

Divisional CIO, Pepsi−Cola North America



Pepsi−Cola North America Divisional CIO







Brock H. Leach, Age 43

Special Development Projects

Biography

Brock Leach, who now leads new special development projects at PepsiCo, reports to Chairman and CEO SteveReinemund. Among other responsibilities, Leach will direct the company's strategic focus on health and well−being, inpartnership with Dr. Ken Cooper, the renowned Cooper Clinic and other experts, to broaden PepsiCo's offerings ofnutritious products and encourage physical fitness.


John F. Akers, Age 69

Director



Lehman Brothers Holdings Inc. Director

The New York Times Company Director

W. R. Grace & Co. DirectorBiography

JOHN F. AKERS former Chairman of the Board and Chief Executive Officer of International Business MachinesCorporation, has been a member of PepsiCo's Board since 1991 and is Chairman of its Compensation Committee. Mr.Akers joined IBM in 1960 and was Chairman and Chief Executive Officer from 1986 until 1993. He is also a director ofHallmark Cards, Inc., Lehman Brothers Holdings, Inc., The New York Times Company, and W.R. Grace & Co.

Source: Proxy, March 24, 2003

Robert E. Allen, Age 68

Director



Bristol−Myers Squibb Company DirectorBiography

ROBERT E. ALLEN former Chairman of the Board and Chief Executive Officer of AT&T Corp., has been a member ofPepsiCo's Board since 1990 and is Chairman of its Nominating and Corporate Governance Committee. He began hiscareer at AT&T in 1957 when he joined Indiana Bell. He was elected President and Chief Operating Officer of AT&T in






1986, and was Chairman and Chief Executive Officer from 1988 until 1997. He is also a director of Bristol−Myers SquibbCompany and WhisperWire, and a Trustee of The Mayo Foundation and Wabash College.


Peter Foy, Age 62

Director

Biography

PETER FOY is Chairman of Whitehead Mann Group, an executive search firm based in London, a position he has heldsince January 1, 2001. He was elected to PepsiCo's Board in 1997. He is the former Chairman of Baring BrothersInternational Ltd., the corporate finance section of ING Group's investment bank. Mr. Foy joined McKinsey & Co., Inc. in1968, became a director and head of its U.K. Consumer Goods Practice in 1980, the managing director of McKinsey U.K.in 1983, and was Senior Partner from 1990 until 1996. In 1996, he became Chairman of Baring Brothers, a position heheld until he retired in December 1998. Mr. Foy is also a director of P&O Princess Cruises plc and Safeway plc.


Ray L. Hunt, Age 60

Director



Electronic Data Systems Corporation Director

Halliburton Company Director

Hunt Consolidated Inc. Chairman, President, and CEO

Hunt Oil Company Chairman and CEORecent Work Highlights

Security Capital Group IncorporatedLast position held, Director♦

•

Biography

RAY L. HUNT Chairman and Chief Executive Officer of Hunt Oil Company and Chairman, Chief Executive Officer andPresident, Hunt Consolidated, Inc., was elected to PepsiCo's Board in 1996. Mr. Hunt began his association with Hunt OilCompany in 1958 and has held his current position since 1976. He is also a director of Halliburton Company, ElectronicData Systems Corporation, King Ranch, Inc., and Chairman of the Board of Directors of the Federal Reserve Bank ofDallas.







Arthur C. Martinez, Age 63

Director



International Flavors & Fragrances Inc. Director

Liz Claiborne, Inc. Director

Martha Stewart Living Omnimedia Inc. Lead DirectorBiography

ARTHUR C. MARTINEZ former Chairman of the Board, President and Chief Executive Officer of Sears, Roebuck andCo., was elected to PepsiCo's Board in 1999. Mr. Martinez was Chairman and Chief Executive Officer of the former SearsMerchandise Group from 1992 to 1995 and served as Chairman of the Board, President and Chief Executive Officer ofSears, Roebuck and Co. from 1995 until 2000. He served as Vice Chairman and a director of Saks Fifth Avenue from1990 to 1992. He is also a director of Liz Claiborne, Inc., International Flavors and Fragrances, Inc. and Martha StewartLiving Omnimedia, Inc. Mr. Martinez is a member of the Supervisory Board of ABN AMRO Holding, N.V.


Franklin D. Raines, Age 55

Director



Fannie Mae Chairman and CEO $992,250 $3,300,000

Pfizer Inc Director

Time Warner Inc. DirectorRecent Work Highlights

Fannie Mae2000: Chairman and CEO, $945,000 salary, $1,890,000 bonus♦

•

Biography

FRANKLIN D. RAINES was elected to PepsiCo's Board in 1999, and is Chairman of its Audit Committee. Mr. Raineshas been Chairman of the Board and Chief Executive Officer of Fannie Mae since January 1999. He was Director of theU.S. Office of Management and Budget from 1996 to 1998. From 1991 to 1996, he was Vice Chairman of Fannie Maeand in 1998 he became Chairman and CEO−Designate. Prior to joining Fannie Mae, Mr. Raines was a general partner atLazard Freres & Co., an investment banking firm. Mr. Raines is also a director of AOL Time Warner Inc. and Pfizer Inc.










Sharon Percy Rockefeller

Director



Greater Washington Educational Telecommunication Association President and CEOBiography

SHARON PERCY ROCKEFELLER was elected a director of PepsiCo in 1986. She is President and Chief ExecutiveOfficer of WETA public stations in Washington, D.C., a position she has held since 1989, and was a member of the Boardof Directors of WETA from 1985 to 1989. She is a member of the Board of Directors of Public Broadcasting Service,Washington, D.C. and was a member of the Board of Directors of the Corporation for Public Broadcasting until 1992.Mrs. Rockefeller is also a director of Sotheby's Holdings, Inc.


James J. (Jim) Schiro, Age 57

Director



Zurich Financial Services CEORecent Work Highlights

Price WaterhouseLast position held, CEO; Chairman and Senior Partner, Price Waterhouse LLP (US)♦

•

Biography

JAMES J. SCHIRO was elected to PepsiCo's Board in January 2003. Mr. Schiro became Chief Executive Officer ofZurich Financial Services in May 2002, after serving as Chief Operating Officer−Group Finance since March 2002. Hejoined Price Waterhouse in 1967, where he held various management positions. In 1994 he was elected Chairman andsenior partner of Price Waterhouse, and in 1998 became Chief Executive Officer of PricewaterhouseCoopers, after themerger of Price Waterhouse and Coopers & Lybrand.


Franklin A. Thomas, Age 69

Director






Alcoa Inc. Director

Citigroup Inc. Director

Lucent Technologies Inc. DirectorRecent Work Highlights

Conoco Inc.Last position held, Director♦

•

Biography

FRANKLIN A. THOMAS was elected to PepsiCo's Board in 1994. From 1967 to 1977, he was President and ChiefExecutive Officer of the Bedford−Stuyvesant Restoration Corporation. From 1977 to 1979 Mr. Thomas had a private lawpractice in New York City. Mr. Thomas was President of the Ford Foundation from 1979 to April 1996 and is currently aconsultant to the TFF Study Group, a non−profit organization assisting development in southern Africa. He is also adirector of ALCOA Inc., Citigroup Inc., Cummins, Inc. and Lucent Technologies.


Cynthia M. Trudell, Age 50

Director



Brunswick Corporation VP; President, Sea Ray $430,000 $1,010,500

Sea Ray Boats, Inc. PresidentRecent Work Highlights

Brunswick CorporationTitle held until 2004: VP; President, Sea Ray♦

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Biography

CYNTHIA M. TRUDELL President of Sea Ray Group since 2001, was elected to PepsiCo's Board in January 2000. From1999 until 2001, Ms. Trudell served as General Motors' Vice President and Chairman and President of SaturnCorporation, a wholly owned subsidiary of GM. Ms. Trudell began her career with the Ford Motor Co. as a chemicalprocess engineer. In 1981, she joined GM and held various engineering and manufacturing supervisory positions. In 1995,she became plant manager at GM's Wilmington Assembly Center in Delaware. In 1996, she became President of IBCVehicles in Luton, England, a joint venture between General Motors and Isuzu.









Solomon D. Trujillo, Age 51

Director



France Telecom SA SEVP; Chairman and CEO, Orange SA

Gannett Co., Inc. Director

Orange SA Chairman and CEO

Target Corporation DirectorRecent Work Highlights

Graviton, Inc.Last position held, Chairman, President, and CEO♦

•

U S WEST, Inc.Last position held, Chairman, President and CEO♦

•

Biography

SOLOMON D. TRUJILLO Chief Executive Officer of Orange SA since March 2003, was elected to PepsiCo's Board inJanuary 2000. Previously, Mr. Trujillo was Chairman, Chief Executive Officer and President of Graviton, Inc. fromNovember 2000, Chairman of US WEST from May 1999, and President and Chief Executive Officer of US WESTbeginning in 1998. He served as President and Chief Executive Officer of US WEST Communications Group andExecutive Vice President of US WEST from 1995 until 1998 and President and Chief Executive Officer of US WESTDex, Inc. from 1992 to 1995. Mr. Trujillo is also a director of Gannett Company, Inc., Orange SA and Target Corporation.







Overview

The PepsiCo challenge −− to keep up with archrival The Coca−Cola Company −− never ends for the world's #2soft−drink maker. PepsiCo's soft drinks (including Pepsi, Mountain Dew, Slice) make up about one−quarter of its sales.(Bottling operations are run independently.) PepsiCo also owns Frito−Lay, the world's #1 maker of snacks such as cornchips (Doritos, Fritos) and potato chips (Lay's, Ruffles, WOW!). PepsiCo sells its Gatorade sports drink and Tropicanaorange juice brands through other divisions. The company also sells Aquafina bottled water, Dole juices (licensed), Liptonready−to−drink tea, and Rold Gold pretzels.

PepsiCo may be vying for more Pepsi−drinking teenagers, but rising snacks and juice sales are helping to quench thecompany's thirst for growth. Frito−Lay's salty snacks rule more than half of the US market; the snack division contributesmore than 50% of company sales.

PepsiCo's soft−drink business is the longtime runner−up to The Coca−Cola Company, and its market share still lagsbehind its rival's. PepsiCo will launch a joint venture with Unilever in early 2004 to sell Lipton ready−to−drink tea intargeted markets worldwide. The company will be called Pepsi Lipton International.

Back in the US, PepsiCo has announced a restructuring of its PepsiCo Beverages & Foods division. The restructuringcreates five subdivisions: Pepsi−Cola North America, Juices, Gatorade, Quaker Foods, and Canada. PepsiCo will cut 275jobs as part of this streamlining. Pepsi expects to hand out pink slips to an additional 330 employees in early 2004 when itcloses a Frito−Lay plant in Kentucky and manufacturing lines in Arkansas and Maryland. An additional 145 people willlose their jobs in unspecificed areas.

PepsiCo hopes to make a splash in the low−calorie market with Edge, a full−flavored cola that contains sugar substituteSplenda and has 50% less sugar than regular Pepsi.

Retailing giant Wal−Mart accounts for about 10% of Pepsi's domestic sales.







History

Pharmacist Caleb Bradham invented Pepsi in 1898 in New Bern, North Carolina. He named his new drink Pepsi−Cola(claiming it cured dyspepsia, or indigestion) and registered the trademark in 1903. Following The Coca−Cola Company'sexample, Bradham developed a bottling franchise system. By WWI, 300 bottlers had signed up. After the war, Bradhamstockpiled sugar to safeguard against rising costs, but in 1920 sugar prices plunged, forcing him into bankruptcy in 1923.

Pepsi existed on the brink of ruin under various owners until Loft Candy bought it in 1931. Its fortunes improved in 1933when, in the midst of the Depression, it doubled the size of its bottles to 12 ounces without raising the five−cent price. In1939 Pepsi introduced the world's first radio jingle. Two years later Loft Candy merged with its Pepsi subsidiary andbecame The Pepsi−Cola Company.

Donald Kendall, who became Pepsi−Cola's president in 1963, turned the firm's attention to young people ("The PepsiGeneration"). It acquired Mountain Dew in 1964 and became PepsiCo in 1965, when it acquired Frito−Lay.

In 1972 PepsiCo agreed to distribute Stolichnaya vodka in the US in exchange for being the only Western firm allowed tobottle soft drinks in the USSR. With the purchases of Pizza Hut (1977), Taco Bell (1978), and Kentucky Fried Chicken(1986), it became a major force in the fast−food industry.

When Coca−Cola changed its formula in 1985, Pepsi had a short−lived victory in the cola wars (until the splashy return ofCoca−Cola classic). The rivalry was extended to ready−to−drink tea in 1991 when, in response to Coca−Cola's Nesteaventure with Nestlé, PepsiCo teamed up with Lipton (they now lead the market).

Between 1991 and 1996 PepsiCo aggressively expanded its overseas bottling operations. However, its efforts contrastedmarkedly with Coca−Cola's well−oiled international distribution machine. The firm then shifted its attention to theorganization of its overseas network. Roger Enrico became CEO in 1996.

A year later PepsiCo spun off its $10 billion fast−food unit as TRICON Global Restaurants (now known as YUM!Brands, Inc.), putting itself in a better position to sell its soft drinks at other restaurants. Also in 1997 it bought Borden'sCracker Jack snack and Smith's snacks from the UK's United Biscuits.

In 1998 it bought Seagram's market−leading Tropicana juices (rival of Coca−Cola's Minute Maid) for $3.3 billion. Thefirm sold a 65% stake in its new Pepsi Bottling Group to the public in 1999.

Its more than $13 billion purchase of The Quaker Oats Company in 2001 added the dominant Gatorade sports drink brand(80% market share in the US) to its lineup. To make room for Gatorade, PepsiCo sold its competing All Sport energydrink to The Monarch Company, an Atlanta−based beverage company, later that year.

Also in 2001, PepsiCo bought a majority of South Beach Beverage Co., maker of SoBe drinks (fruit blends, energydrinks, teas, sports drinks). Later that year the company named president and COO Steve Reinemund as chairman andCEO, Enrico as VC (where he remained through 2002), and CFO Indra Nooyi as president.

In 2002 the company combined Pepsi−Cola North America with the Gatorade, Tropicana, and Quaker businesses to formPepsiCo Beverages and Foods North America. The company launched Pepsi Blue, a new berry−flavored cola, in 2002,and Pepsi Vanilla in 2003, targeting thirsty teenagers in an attempt to energize the flat fizzy−drinks segment.

Like its rival Coca−Cola, PepsiCo found opportunities for growth overseas in 2003. However, claims surfaced that yearthat both Coke and Pepsi bottled in India contained traces of DDT, malathion, and other pesticides that exceededgovernment limits. Both Coke and Pepsi denied the reports in a joint press conference. Government labs cleared the colas,saying the drinks were safe, but not before both soft drink companies saw sales dip by as much as 50% in a two−weekperiod.



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Products/Operations

PepsiCo's soft drinks and snacks are sold in nearly 200 countries.

2003 Sales

$ mil. % of total

United States 17.4 64

Mexico 2.6 10

United Kingdom 1.5 6

Canada 1.1 4

Others 4.3 16

Total 26.9 100

2003 Sales

$ mil. % of total

Frito−Lay North America 9.0 34

PepsiCo International 8.7 32

PepsiCo Beverages North America7.7 29

Quaker Foods North America 1.5 5

Total 26.9 100

Selected Products and Brands:

Frito−Lay Snacks

Cheese−flavored chips• Cheetos• Cookies• Gamesa, Mexico; Grandma's• Corn chips• 3D's, Fritos• Dips and salsa• Frito−Lay• Fried pork skins• Baken−ets• Onion−flavored rings• Funyuns• Popcorn• Chester's• Smartfood• Potato chips• Baked Lay's• Lay's• Munchos• Ruffles• Sabritas• WOW!• Potato crisps• Smith's,• Australia•


Walkers• UK• Pretzels• Rold Gold• Sweet snacks• Alegro• Mexico• Tortilla chips• Doritos• Santitas• Tostitos• WOW!• Other• Cracker Jack• SunChips•

Juices

Copella• Dole, licensed• Fruivita• Hitchcock• Loóza• Tropicana• Pure Premium• Pure Tropics• Season's Best• South Beach Beverage (SoBe)• Twister• Nectars (Loóza)•

Gatorade

Sports drinks• Gatorade• Propel• Other• Cranston & Vale• Juice Bowl•

Pepsi−Cola

Bottled water• Aquafina• Caffeinated citrus−flavored soda• Mountain Dew• Citrus−flavored soda• Sierra Mist• Coffee drinks• Frappuccino, distributed• Colas• Diet Pepsi•


Pepsi Blue• Pepsi Max• Pepsi One• Pepsi−Cola,• Pepsi Twist• Fruit−flavored soda• Slice• Root Beer• Mug• Teas• Lipton Brisk• Lipton Iced• Unilever joint venture• Other• Mirinda•

Quaker

Cereals• Cap'n Crunch• Cruesli• Honey Monster• Life• Quaker 100%• Natural• Quaker Instant• Grits• Quaker Oatmeal Squares• Pancake Mix• Aunt Jemima• Pasta• Golden Grain• Mission• Pasta Roni• Snacks• Quaker Chewy Granola Bars• Quaker Rice Cakes• Syrup• Aunt Jemima•

Archived Charts

2002 Sales $ mil. % of totalNorth America 17,256 68Other regions 7,749 31Divested businesses 107 1

Total 25,112 100

2002 Sales $ mil. % of totalFrito−Lay North America 8,565 34Frito−Lay International 5,713 23Gatorade/Tropicana North America 3,835 15


Pepsi−Cola North America 3,365 13PepsiCo Beverages International 2,036 8Quaker Foods North America 1,491 6Divested businesses 107 1

Total 25,112 100

2002 Sales $ mil. % of totalNorth America 17,256 68Other regions 7,749 31Divested businesses 107 1

Total 25,112 100

2001 Sales $ mil. % of totalFrito−Lay North America 9,374 35Frito−Lay International 5,130 19Gatorade/Tropicana North America 4,016 15Pepsi−Cola North America 3,842 14PepsiCo Beverages International 2,582 10Quaker Foods North America 1,991 7

Total 26,935 100

2001 Sales $ mil. % of totalNorth America 18,215 68International 8,720 32

Total 26,935 100


Other Resources Available On Hoover's Online

News for PepsiCo (last 90 days)

Company Press Release Archive

Other Resources

Headquarters Map• SEC Filings

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Related Products From Our Trusted Partners

Buy Reports and Books

D&B Business/Credit Reports: PepsiCo, Inc.(D&B, Feb 1, 2004, Business Reports)

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PepsiCo Inc Branch Report(Harris Company Reports, Aug 12, 2003, Business Reports)

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Quantitative Report for PEP(ValuEngine, Inc., Jan 1, 2004, Business Reports)

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Bread & Cereal Production Deluxe Set(Harris Industry Reports, Aug 12, 2003, Business Reports)

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Carbonated Beverages: Financial Analysis Profiles(BizMiner, Dec 23, 2003, Business Reports)

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Breakfast Cereal Manufacturing in the US(IBISWorld, Dec 6, 2003, Business Reports)

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Future Innovations In Snacking: Convergence and Competition(Reuters Business Insight, Dec 1, 2001, Business Reports)

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Plunkett's Food Industry Almanac(Plunkett Research, Ltd., May 6, 2003, Books)

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Additional 3rd Party Libraries

Additional Research On PepsiCo

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Annual Financials

All amounts in millions of US Dollars

Income Statement Dec 03 Dec 02 Dec 01

Revenue 26,971.0 25,112.0 26,935.0

Cost of Goods Sold 11,303.0 10,523.0 9,837.0

Gross Profit 15,668.0 14,589.0 17,098.0

Gross Profit Margin 58.1% 58.1% 63.5%

SG&A Expense 9,460.0 8,523.0 11,608.0

Depreciation & Amortization 1,221.0 1,112.0 1,082.0

Operating Income 4,987.0 4,954.0 4,408.0

Operating Margin 18.5% 19.7% 16.4%

Nonoperating Income 374.0 316.0 227.0

Nonoperating Expenses 163.0 178.0 219.0

Income Before Taxes 4,992.0 4,868.0 4,029.0

Income Taxes 1,424.0 1,555.0 1,367.0

Net Income After Taxes 3,568.0 3,313.0 2,662.0

Continuing Operations 3,568.0 3,313.0 2,662.0

Discontinued Operations 0.0 0.0 0.0

Total Operations 3,568.0 3,313.0 2,662.0

Total Net Income 3,568.0 3,313.0 2,662.0

Net Profit Margin 13.2% 13.2% 9.9%

Diluted EPS from Continuing Operations ($) 2.05 1.85 1.47

Diluted EPS from Discontinued Operations ($) 0.00 0.00 0.00

Diluted EPS from Total Operations ($) 2.05 1.85 1.47

Diluted EPS from Total Net Income ($)

Dividends per Share 0.62 0.59 0.57

Balance Sheet Dec 03 Dec 02 Dec 01

Assets

Current Assets

Cash 820.0 1,638.0 683.0

Net Receivables 2,830.0 2,531.0 2,142.0

Inventories 1,412.0 1,342.0 1,310.0


Other Current Assets 1,868.0 902.0 1,718.0

Total Current Assets 6,930.0 6,413.0 5,853.0

Net Fixed Assets 7,828.0 7,390.0 6,876.0

Other Noncurrent Assets 10,569.0 9,671.0 8,966.0

Total Assets 25,327.0 23,474.0 21,695.0

Liabilities and Shareholders' Equity Dec 03 Dec 02 Dec 01

Current Liabilities

Accounts Payable 5,213.0 4,998.0 4,461.0

Short−Term Debt 591.0 562.0 354.0

Other Current Liabilities 611.0 492.0 183.0

Total Current Liabilities 6,415.0 6,052.0 4,998.0

Long−Term Debt 1,702.0 2,187.0 2,651.0

Other Noncurrent Liabilities 4,075.0 4,226.0 3,876.0

Total Liabilities 13,431.0 14,176.0 13,047.0

Shareholders' Equity

Preferred Stock Equity 0.0 0.0 0.0

Common Stock Equity 11,896.0 9,298.0 8,648.0

Total Equity 11,896.0 9,298.0 8,648.0

Shares Outstanding (mil.) 1,705.0 1,722.0 1,756.0

Cash Flow Statement Dec 03 Dec 02 Dec 01

Net Operating Cash Flow 4,328.0 4,627.0 4,201.0

Net Investing Cash Flow (2,271.0) (527.0) (2,637.0)

Net Financing Cash Flow (2,902.0) (3,179.0) (1,919.0)

Net Change in Cash (818.0) 955.0 (355.0)

Depreciation & Amortization 1,221.0 1,112.0 1,082.0

Capital Expenditures (1,345.0) (1,788.0) (1,756.0)

Cash Dividends Paid (1,070.0) (1,041.0) (994.0)

Data Definitions

Some financial information provided by Media General Financial Services, Inc. , Richmond, Virginia


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Quarterly Financials

All amounts in millions of US Dollars except per share amounts.

Income StatementQuarter

Ending Dec 03Quarter

Ending Sep 03Quarter

Ending Jun 03Quarter Ending

Mar 03Quarter

Ending Dec 02

Revenue 8,073.0 6,830.0 6,538.0 5,530.0 7,457.0

Cost of Goods Sold 3,378.0 2,870.0 2,747.0 2,308.0 3,141.0

Gross Profit 4,695.0 3,960.0 3,791.0 3,222.0 4,316.0

Gross Profit Margin 58.2% 58.0% 58.0% 58.3% 57.9%

SG&A Expense 3,304.0 2,218.0 2,119.0 1,819.0 2,647.0

Depreciation & Amortization 405.0 280.0 280.0 256.0 360.0

Operating Income 986.0 1,462.0 1,392.0 1,147.0 1,309.0

Operating Margin 12.2% 21.4% 21.3% 20.7% 17.6%

Nonoperating Income 98.0 144.0 110.0 22.0 42.0

Nonoperating Expenses 51.0 38.0 37.0 37.0 62.0

Income Before Taxes 858.0 1,559.0 1,454.0 1,121.0 1,199.0

Income Taxes 153.0 482.0 445.0 344.0 394.0

Net Income After Taxes 705.0 1,077.0 1,009.0 777.0 805.0

Continuing Operations 705.0 1,077.0 1,009.0 777.0 805.0

Discontinued Operations 0.0 0.0 0.0 0.0 0.0

Total Operations 705.0 1,077.0 1,009.0 777.0 805.0

Total Net Income 705.0 1,077.0 1,009.0 777.0 805.0

Net Profit Margin 8.7% 15.8% 15.4% 14.1% 10.8%

Diluted EPS from ContinuingOperations ($)

0.41 0.62 0.58 0.45 0.46

Diluted EPS fromDiscontinued Operations ($)

0.00 0.00 0.00 0.00 0.00

Diluted EPS from TotalOperations ($)

0.41 0.62 0.58 0.45 0.46

Diluted EPS from Total NetIncome ($)

Dividends per Share 0.00 0.16 0.16 0.30 0.00

Balance SheetQuarter

Ending Dec 03Quarter

Ending Sep 03Quarter

Ending Jun 03Quarter Ending

Mar 03Quarter

Ending Dec 02

Assets


Current Assets

Cash 820.0 2,251.0 838.0 926.0 1,638.0

Net Receivables 2,830.0 3,176.0 3,084.0 2,823.0 2,531.0

Inventories 1,412.0 1,440.0 1,640.0 1,446.0 1,342.0

Other Current Assets 1,868.0 1,054.0 1,672.0 992.0 902.0

Total Current Assets 6,930.0 7,921.0 7,234.0 6,187.0 6,413.0

Net Fixed Assets 7,828.0 7,600.0 7,646.0 7,443.0 7,390.0

Other Noncurrent Assets 10,569.0 9,760.0 9,866.0 9,608.0 9,671.0

Total Assets 25,327.0 25,281.0 24,746.0 23,238.0 23,474.0

Liabilities andShareholders' Equity

QuarterEnding Dec 03

QuarterEnding Sep 03

QuarterEnding Jun 03

Quarter EndingMar 03


Current Liabilities

Accounts Payable 5,213.0 4,878.0 4,870.0 4,587.0 4,998.0

Short−Term Debt 591.0 197.0 262.0 241.0 562.0

Other Current Liabilities 611.0 891.0 907.0 689.0 492.0

Total Current Liabilities 6,415.0 5,966.0 6,039.0 5,517.0 6,052.0

Long−Term Debt 1,702.0 2,080.0 2,049.0 2,202.0 2,187.0

Other Noncurrent Liabilities 4,075.0 4,421.0 4,347.0 4,283.0 4,226.0

Total Liabilities 13,431.0 14,361.0 14,109.0 13,702.0 14,176.0

Shareholders' Equity

Preferred Stock Equity 0.0 0.0 0.0 0.0 0.0

Common Stock Equity 11,896.0 10,920.0 10,637.0 9,536.0 9,298.0

Total Equity 11,896.0 10,920.0 10,637.0 9,536.0 9,298.0

Shares Outstanding (mil.) 1,705.0 1,717.0 1,722.0 1,718.0 1,722.0

Cumulative Cash FlowStatement


QuarterEnding Sep 03

QuarterEnding Jun 03

Quarter EndingMar 03


Net Operating Cash Flow 4,328.0 3,527.0 1,699.0 422.0 4,627.0

Net Investing Cash Flow (2,271.0) (992.0) (1,289.0) (347.0) (527.0)

Net Financing Cash Flow (2,902.0) (1,907.0) (1,235.0) (796.0) (3,179.0)

Net Change in Cash (818.0) 613.0 (800.0) (712.0) 955.0

Depreciation & Amortization 405.0 280.0 280.0 256.0 360.0

Capital Expenditures (1,345.0) (885.0) (594.0) (315.0) (1,788.0)


Cash Dividends Paid (1,070.0) (795.0) (518.0) (260.0) (1,041.0)

Data Definitions



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Historical Financials & Employees

Income Statement

YearRevenue

($ mil.)Net Income

($ mil.)Net Profit

MarginEmployees

Dec 03 26,971.0 3,568.0 13.2% −−

Dec 02 25,112.0 3,313.0 13.2% 142,000

Dec 01 26,935.0 2,662.0 9.9% 143,000

Dec 00 20,438.0 2,183.0 10.7% 124,000

Dec 99 20,367.0 2,050.0 10.1% 118,000

Dec 98 22,348.0 1,993.0 8.9% 150,000

Dec 97 20,917.0 2,142.0 10.2% 142,000

Dec 96 31,645.0 1,149.0 3.6% 486,000

Dec 95 30,421.0 1,606.0 5.3% 480,000

Dec 94 28,472.4 1,752.0 6.2% 471,000

Stock History

YearStock Price ($) P/E Per Share ($)

FYHigh

FYLow

FYClose

High Low Earns. Div.BookValue

Dec 03 48.9 36.2 46.6 23.8 17.7 2.0 0.6 7.0

Dec 02 53.5 34.0 42.2 28.9 18.4 1.9 0.6 5.4

Dec 01 50.5 40.2 48.7 34.3 27.4 1.5 0.6 4.9

Dec 00 49.9 29.7 49.6 33.7 20.1 1.5 0.6 5.0

Dec 99 42.6 30.1 35.2 31.1 22.0 1.4 0.5 4.7

Dec 98 44.8 27.6 40.9 34.2 21.0 1.3 0.5 4.4

Dec 97 41.3 28.6 36.2 30.4 21.1 1.4 0.5 4.6

Dec 96 35.9 27.2 29.2 49.8 37.8 0.7 0.4 4.2

Dec 95 29.4 16.9 27.9 29.4 16.9 1.0 0.4 4.6

Dec 94 20.6 14.6 18.1 24.2 17.2 0.9 0.3 4.3

2003 Year−End Financials

Debt ratio 14.3%

Return on equity 30.0%

Cash ($ mil.) 820.0

Current ratio 1.08

Long−term debt ($ mil.) 1,702.0


Shares Outstanding (mil.) 1,705.0

Dividend yield 1.3%

Dividend payout 30.2%

Market value ($ mil.) 79,487.1

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Market Data

Current Information

Last Close 10−Mar−2004 $52.24 Price/Sales Ratio 3.31

52−Week High $53.00 Price/Book Ratio 7.51

52−Week Low $38.06 Price/Earnings Ratio 25.48

60−Month Beta 0.4 Price/Cash Flow Ratio 18.66

Market Value (mil.) $89,343.3Return on Assets 14.1%

Shares Outstanding (mil.) 1,710.2 Return on Equity 30.0%

Dividend Rate 0.64 Current Ratio 1.08

Dividend Yield 1.2% Long−Term Debt/Equity 0.14

# of Institutional Holders 2,895 % Owned by Institutions 66.1%

Latest Short Interest Ratio 1.90 Latest Net Insider Transactions 0.00

Growth Rates 12 Month 36 Month 60 Month

Revenue Growth 7.4% 7.9% 5.4%

EPS Growth 10.8% 12.8% 9.3%

Dividend Growth 5.1% 4.0% 3.8%

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Comparison Data

Profitability Company Industry 1 Market 2

Gross Profit Margin 58.09% 54.56% 47.92%

Pre−Tax Profit Margin 18.51% 15.00% 5.80%

Net Profit Margin 13.23% 10.87% 2.87%

Return on Equity 30.0% 24.6% 5.7%

Return on Assets 14.1% 9.1% 0.9%

Return on Invested Capital 26.2% 15.2% 2.8%

Valuation Company Industry 1 Market 2

Price/Sales Ratio 3.31 2.76 1.43

Price/Earnings Ratio 25.48 25.60 50.09

Price/Book Ratio 7.51 6.25 2.84

Price/Cash Flow Ratio 18.66 17.45 15.76

Operations Company Industry 1 Market 2

Days of Sales Outstanding 37.77 38.57 59.48

Inventory Turnover 8.2 8.0 7.5

Days Cost of Goods Sold in Inventory 44 45 48

Asset Turnover 1.1 0.9 0.3

Net Receivables Turnover Flow 10.1 9.5 6.2

Effective Tax Rate 28.5% 26.6% −−

Financial Company Industry 1 Market 2

Current Ratio 1.08 1.02 1.39

Quick Ratio 0.8 0.7 1.0

Leverage Ratio 2.13 2.71 6.02

Total Debt/Equity 0.19 0.78 1.43

Interest Coverage 31.60 9.10 2.00

Per Share Data ($) Company Industry 1 Market 2

Revenue Per Share 15.77 15.50 19.61

Fully Diluted Earnings Per Sharefrom Total Operations

2.05 1.67 0.56

Dividends Per Share 0.62 0.62 0.42

Cash Flow Per Share 2.80 2.45 1.78

Working Capital Per Share 0.30 0.07 2.14

Long−Term Debt Per Share 1.00 4.25 10.17

Book Value Per Share 6.96 6.84 9.89


Total Assets Per Share 14.81 18.55 59.58

Growth Company Industry 1 Market 2

12−Month Revenue Growth 7.4% 3.6% 4.3%

12−Month Net Income Growth 7.7% 6.4% 70.2%

12−Month EPS Growth 10.8% 7.7% 75.0%

12−Month Dividend Growth 5.1% 6.9% 2.4%

36−Month Revenue Growth 7.9% 5.5% 1.7%

36−Month Net Income Growth 18.4% 20.9% (18.9%)

36−Month EPS Growth 12.8% 18.1% (19.7%)

36−Month Dividend Growth 4.0% 7.2% 1.5%1Industry: Beverages−Soft DrinksIndustry classifications are from Media General Financial Services, Inc. .

2 Public companies trading on the New York Stock Exchange, the American Stock Exchange, and the NASDAQ National Market.

Data Definitions



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Competitive Landscape

KEY: Best of Group. Companies listed are Top Competitors.

Key Numbers PepsiCoCadbury

SchweppesCoca−Cola Kraft Foods

Annual Sales ($mil.) 26,971.0 111,487.0 21,044.0 31,010.0

Employees −− −− 49,000 −−

Market Value ($mil.) 89,343.3 16,515.3 122,018.7 59,002.1

Profitability PepsiCoCadbury

SchweppesCoca−Cola Kraft Foods Industry 2 Market 3

Gross Profit Margin 58.09% −− 67.15% 43.13% 54.56% 47.92%

Pre−Tax Profit Margin 18.51% −− 26.11% 17.64% 15.00% 5.80%

Net Profit Margin 13.23% 1.03% 20.66% 11.21% 10.87% 2.87%

Return on Equity 30.0% 22.2% 30.9% 12.5% 24.6% 5.7%

Return on Assets 14.1% 6.4% 15.9% 6.0% 9.1% 0.9%

Return on Invested Capital 26.2% 12.4% 26.2% 8.8% 15.2% 2.8%

Valuation PepsiCoCadbury


Price/Sales Ratio 3.31 0.15 5.80 1.90 2.76 1.43

Price/Earnings Ratio 25.48 14.41 28.19 16.99 25.60 50.09

Price/Book Ratio 7.51 3.20 8.66 2.13 6.25 2.84

Price/Cash Flow Ratio 18.66 −− 23.43 13.66 17.45 15.76

Operations PepsiCoCadbury


Days of Sales Outstanding 37.77 7.39 35.77 35.76 38.57 59.48

Inventory Turnover 8.2 −− 5.4 4.9 8.0 7.5

Days Cost of Goods Sold inInventory

44 −− 66 73 45 48

Asset Turnover 1.1 7.6 0.8 0.5 0.9 0.3

Net Receivables Turnover Flow 10.1 56.9 10.0 10.0 9.5 6.2

Effective Tax Rate 28.5% −− 20.9% 35.2% 26.6% −−

Financial PepsiCoCadbury


Current Ratio 1.08 0.55 1.06 1.03 1.02 1.39

Quick Ratio 0.8 0.4 0.7 0.5 0.7 1.0

Leverage Ratio 2.13 3.48 1.94 2.10 2.71 6.02

Total Debt/Equity 0.19 1.66 0.38 0.49 0.78 1.43






















Interest Coverage 31.60 −− 31.90 8.90 9.10 2.00

Per Share Data ($) PepsiCoCadbury


Revenue Per Share 15.77 221.64 8.61 17.95 15.50 19.61

Fully Diluted Earnings Per Sharefrom Total Operations

2.05 2.28 1.77 2.01 1.67 0.56

Dividends Per Share 0.62 0.82 0.88 0.63 0.62 0.42

Cash Flow Per Share 2.80 −− 2.13 2.50 2.45 1.78

Working Capital Per Share 0.30 (6.78) 0.21 0.12 0.07 2.14

Long−Term Debt Per Share 1.00 8.09 1.03 6.74 4.25 10.17

Book Value Per Share 6.96 10.27 5.76 16.06 6.84 9.89

Total Assets Per Share 14.81 35.71 11.18 33.70 18.55 59.58

Growth PepsiCoCadbury


12−Month Revenue Growth 7.4% 1,205.8% 7.6% 4.3% 3.6% 4.3%

12−Month Net Income Growth 7.7% 29.9% 9.3% 2.4% 6.4% 70.2%

12−Month EPS Growth 10.8% 30.3% 10.6% 2.6% 7.7% 75.0%

12−Month Dividend Growth 5.1% 12.3% 10.0% 16.7% 6.9% 2.4%

36−Month Revenue Growth 7.9% 132.4% 0.6% 3.4% 5.5% 1.7%

36−Month Net Income Growth 18.4% 15.2% 23.1% 25.2% 20.9% (18.9%)

36−Month EPS Growth 12.8% 15.5% 23.3% 17.9% 18.1% (19.7%)

36−Month Dividend Growth 4.0% 5.0% 9.2% −− 7.2% 1.5%

1 Data unavailable.2 Industry: Beverages−Soft DrinksIndustry classifications are from Media General Financial Services, Inc. .3 Public companies trading on the New York Stock Exchange, the American Stock Exchange, and the NASDAQ National Market.

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