Pepsi 2014 Annual Report Download - page 3

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2014 ANNUAL REPORT  1
PepsiCo delivered another year of
strong performance in 2014, resulting
in double-digit total shareholder
returns. As 2015 heralds our company’s
50th anniversary, I want to take
thisopportunity to share my thoughts
on what has made PepsiCo one of
thetop-performing food and beverage
companies of the past 50years, and
thesteps we are taking to extend this
legacy of success for decades to come.
Looking Back:
Our Half-Century Journey
As we prepare to celebrate PepsiCo’s
50th year in June, we look back atour
journey with pride. In 1965, when
thePepsi-Cola Company and Frito-Lay,
Inc. merged to create PepsiCo, our
revenue was $510million. Today,
it stands at more than $66billion.
Our market capitalization, which
was $842million at the end of 1965,
grew to $141billion at the end of
2014, putting us in the top 10% of
the S&P500 by market value. If you
invested $100 in PepsiCo stock at
the end of 1965, it was worth nearly
$43,000 at the end of 2014, a 13.2%
annualized return. A $100 investment
in the S&P500 over the same time
period was worth nearly $10,000 at the
end of2014, a 9.8% annualized return.
Two core attributes of PepsiCo
underlie our strong outperformance:
• Adaptability: We anticipated major
shifts in the consumer landscape and
business environment and met them
head-on by preemptively retooling the
company for advantage and growth.
• Performance: At the same time
that we have been driving sometimes
radical change, we have managed
todeliver strong financial results over
the long term.
I am confident that these attributes
will continue to define our company
for the next 50 years.
The “Adaptable” Corporation
Throughout the past half-century,
PepsiCo has made bold moves to
reshape our portfolio, build new
capabilities and invest in new geog-
raphies. I’d like to share with you four
major trends and how we adapted
inorder to thrive.
Indra K. Nooyi
PepsiCo Chairman of the Board
and Chief Executive Ocer
Dear Fellow
Shareholders,
1. For further information, please see pages 2 and 3.