Pepsi 2011 Annual Report Download - page 4

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The greatest challenge in business today
isto renew a successful company — positioning
it for long-term growth and protability while
performing in the current marketplace. This is
achallenge we embrace.
In late 2006, we recognized that our consumers
and the competitive environment were chang-
ing,and that PepsiCo faced a dual challenge
toperform in the short term while making some
bold, transformative moves to realize future
growth opportunities and create long-term
shareholder value.
Starting in 2007, we began our journey of renewal.
We stepped up our investments in emerging and
developing markets. We continued to build our
portfolio of billion-dollar brands. We boosted
our investment in research and development to
build long-term, dierentiated platforms and
signicantly expand our healthier oerings within
our snacks and beverages portfolios. We focused
on making our business more ecient, and we
began to align our global operating structure to
fully leverage the scale of PepsiCo.
I am pleased to report that we have made
strongprogress. In 20, despite a still-dicult
macroeconomic environment, we delivered
solid results.
t 0OBDPSFCBTJTOFUSFWFOVF1 was up 14percent
to $66billion.
t $PSFEJWJTJPOPQFSBUJOHQSPöU1 rose 7percent
with core operating margins1 of 16percent.
t $PSFFBSOJOHTQFSTIBSF2 (EPS) grew 7percent.
t 0OBDPSFCBTJTXFBDIJFWFEBOFUSFUVSOPO
invested capital130*$PG̓QFSDFOUBOESFUVSO
on equity130&PG̓QFSDFOU
t .BOBHFNFOUPQFSBUJOHDBTIøPX excluding
certain items, reached $6.1billion.
t ̓CJMMJPOXBTSFUVSOFEUPPVSTIBSFIPMEFST
through share repurchases and dividends.
Equally important, 20 capped a ve-year
performance that delivered, on a core basis,
compounded growth rates for net revenue1 of
̓QFSDFOUPQFSBUJOHQSPöUHSPXUI1 of 9percent
and EPS growth1 of 8percent. We also delivered
impressive cash returns: not only have dividends
per share grown at 12percent annually, but since
2007, through share repurchases and dividends,
XFIBWFSFUVSOFE̓CJMMJPOUPPVSTIBSFIPMEFST
Dear Fellow Shareholders,
PepsiCo, Inc.  Annual Report