A successful integration

1. A successful integration

2. KEY CHALLENGES • 1 new category: 136 M€, representing 17% of total PCF business • A brand in a structural decreasing trend since 3 years, in both Modern Trade and Out Of Home • 40 new people, representing 10% of PepsiCo staff • 15 new production sites

3. KEY CHALLENGES • 3 stake-holders : Pepsico, Unilever, PLI • 3 different corporate cultures • 1 tight retroplanning : • 6 months: Beginning of September - End March • No additional human resources to implement Lipton integration

4. A BUSINESS SUCCESS • Outstanding financial performances : Lipton is expected to exceed the CAPEX forecast by 10 M€ thanks to: • Net Revenue management (pricing & promotions) • Maximization of synergies between existing beverage platforms • Economies of scale achieved

5. A BUSINESS SUCCESS • Lipton good business results: • Back to growth in 2008: +2.2% vs. yago (sell-in volumes) • Lipton is a strong leader on both Modern Trade and OOH • Modern Trade: • Value MS = 61.6% (+2.5pts vs. yago) • Thanks to a growing standard core business(+11.5% on 2L Peach, +13.5% on 1.5L Peach, +4% on 2L mango) • OOH: • Value MS = 71.9% (+1.3pts vs. yago) • A business now accounting for 40% of Lipton Ice Tea total volumes (+5pts vs. yago) • An outstanding growth: +12.8% after 2 years on a negative trend • Thanks to: • An impressive growth at Mc Do (50% of the growth), where Lipton Ice Tea is the 2nd beverage, with a growth x4 higher than Mc Do’s growth. • New listing (YUM, Lina’s, Brasseries Blanc) • Selectivity at contract caterers • Growth on independents Source: Intern volumes –IRI YTD P12 – GIRA – Millward Brown

6. A BUSINESS SUCCESS • A growth on key brand items • Naturality (+2pts) • Health (+4pts) • Lively (+3pts) • Trust (+4pts) • Successful logistic integration (Power of 1) • Better customer service : 99.79 % of service rate • Drastic reduction of stocks : from 54 days to 22 days • Major cost savings :1.1 M€ on repacking via transfer of re-packing activity, creation of Saint Alban hub and closure of several warehouses • Power Of One being currently implemented in Out Of Home

7. A PEOPLE SUCCESS • From Sept. 2007 to Jan. 2008: tight collaboration between PI and Lipton • Develop Power of One culture on “Liptonian” side • Increase brand knowledge on Pepsico’s side • Integration: respect of Work/Life Balance • Move to Colombes to ensure more services and more comfort • No radical change of salesforce field area to favor teams’ stability. • 2008: A successful integration within all services: • Fair share of management positions between PepsiCo and ex-Unilever managers • Out Of Home Channel : • Only 5.3 % turn-over after Lipton Ice Tea integration representing 1/3 of total staff • Ex-Unilever represent 50% of internal promotions in 2008 • Finance/Planning/Supply : • Complete re-organization of staff to increase efficiency. • Quick understanding of P&L algorithms and key performance drivers • Business now up to speed with the other categories: • Integration of all the existing data within IT systems in order to provide consistent history • Ability to highlight the most profitable SKU’s and to carry out performance analysis • In-depth analysis and understanding of customer agreements • Solid business partner for other functional teams

8. REASONS OF SUCCESS A clear business strategy A habit of acquisitions Team working driven by business • Full integration • Fast implementation • Immediate synergy with CSDs :1+1=3 • Power of One • Experience effect • Flexible information systems • Only one planning to coordinate all stakeholders • Diversity • Flexible human organization • Empowerment • Strong information sharing