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8 2012 PEPSICO ANNUAL REPORT
sion cycle by nine days in 2012 and
also found ways to reduce our net
capital spending from 5.5 percent
of net revenue in 2010 to 4 percent
of net revenue in 2012, which is
consistent with our long-term capi-
tal spending target of less than or
equal to 5 percent of net revenue.
Going forward, we are well on our
way to harmonizing our global pro-
cesses, master data and IT systems
to increase visibility across the
company, ensure compliance with
all our initiatives, easily measure
our progress and speed up decision
making. We intend to be one of the
most ecient food and beverage
companies in the world.
5. We Are Building a Second-to-
None Team and Culture
In recent years, with our transfor-
mation actions, we truly have asked
a lot of all our associates. It is their
passion, resilience and talent that
have made our progress possible.
To nurture and grow our associates,
enabling them to lead PepsiCo into
the future, we have implemented
award-winning talent and leader-
ship development initiatives. We
also have been recruiting executives
from outside our industry to infuse
fresh thinking and bring new capa-
bilities to our team. I’m especially
proud of the work we have done
as a company to build a strong
team of current and future female
leaders. As we continue to focus on
developing world-class talent and
teams, PepsiCo was recognized in
2012 by the Great Place to Work
Institute, which ranked us as one
of the “World’s Best Multinational
Workplaces.” In addition, Chief
Executive magazine ranked PepsiCo
as one of the “Best Companies for
Leaders” in 2012.
One area that deserves mention
is the great courage and humanity
demonstrated by our associates.
In 2012, whether it was in response
to Hurricane Sandy in the U.S., the
ooding in the Philippines, political
unrest and transition in Egypt or
other country-specic events, our
teams have demonstrated an
unwavering commitment to our
consumers, customers and com-
munities while delivering our
performance goals. There are
countless stories, and I wish I could
tell them all in tribute, because I am
truly proud of our associates and
humbled to be their leader.
6.We Are Delivering on the
Promise of Performance with
Purpose
There is a great deal of activity
in PepsiCo today, all focused on
delivering sustained value. We
have seen what happens when
corporate executives chase short-
term rewards to the exclusion of
the long term. No company can
see itself as simply an engine for
short-term growth and nothing
more. A company operates under
a license from society. Its products
are regulated by public authorities.
The work of modern business
encompasses partnerships with
the public and non-prot sectors.
We were one of the rst contempo-
rary companies to recognize the im-
portant interdependence between
corporations and society when we
articulated our Performance with
Purpose direction back in 2007.
Performance with Purpose is our
goal to deliver sustained nancial
performance by providing a wide
range of foods and beverages from
treats to healthy eats; nding inno-
vative ways to minimize our impact
on the environment and lower our
costs through energy and water
conservation, as well as reduced
use of packaging material; provid-
ing a safe and inclusive workplace
for our employees globally; and by
respecting, supporting and investing
in the local communities in which
we operate.
The progress we have made over
the last six years—and in 2012 in
particular—is heartening indeed.
We continued to grow our Good-for-
You oerings, demonstrated leader-
ship in water conservation that was
recognized with the Stockholm
Industry Water Award and the U.S.
Water Prize, and reduced our Lost
Time Injury Rate by 32 percent in
2012. These are but a few examples
of the progress we have made,
progress that has led to our selec-
tion as one of the “World’s Most Ad-
mired Companies” by Fortune, one
of its most respected by Barron’s and
one of its most ethical by Ethisphere.
2013 and Beyond: Our
Transformation Journey
Continues
I am proud of what we have
achieved in the last several years.
We anticipated many of the envi-
ronmental changes early on and
uniquely and necessarily trans-
formed ourselves while still deliver-
ing strong results. We have accom-
plished a great deal and are on the
right track.
We have clear and decisive plans to
continue to reshape the business
while delivering results. Our key
initiatives have not changed. We will
continue to drive protable growth
in our developed markets while
continuing to migrate our portfo-