百事 (PEP) 2016 Q2 法說會逐字稿

Good morning and welcome to PepsiCo's second-quarter 2016 earnings conference call. (Operator Instructions). Today's call is being recorded and will be archived at www.pepsico.com. It is now my pleasure to introduce Mr. Jamie Caulfield, Senior Vice President of Investor Relations. Mr. Caulfield, you may begin.

早安，歡迎參加百事公司（PepsiCo）2016 年第二季財報電話會議。（接線員指示）。今天的電話會議將被錄音，並存檔於 www.pepsico.com。現在很榮幸為各位介紹投資人關係資深副總裁 Jamie Caulfield 先生。Caulfield 先生，請開始。

Thank you, operator. With me today are Indra Nooyi, PepsiCo's Chairman and CEO and Hugh Johnston, PepsiCo's CFO. We will lead off today's call with a review of our second-quarter 2016 performance and full-year outlook and then we will move on to Q&A. We've kept our comments brief this morning and intend to conclude the call by 8:45.

謝謝，接線員。今天與我一同出席的有百事公司董事長暨執行長 Indra Nooyi，以及百事公司財務長 Hugh Johnston。我們將先回顧 2016 年第二季表現與全年展望，接著進入問答。我們今天早上的發言會保持精簡，並預計在 8:45 前結束本次電話會議。

Before we begin, please take note of our cautionary statement. This conference call includes forward-looking statements, including statements regarding 2016 guidance based on currently available information. Forward-looking statements inherently involve risks and uncertainties that could cause our actual results to differ materially from those prediction in such forward-looking statements.

在開始之前，請留意我們的警示性聲明。本次電話會議包含前瞻性陳述，包括基於目前可得資訊所作出的 2016 年指引相關陳述。前瞻性陳述本質上涉及風險與不確定性，可能導致我們的實際結果與該等前瞻性陳述中的預測存在重大差異。

Statements made on this conference call should be considered together with cautionary statements and other information contained in today's earnings release and in our most recent periodic reports filed with the SEC. References to organic revenue results exclude the impact of acquisitions and divestitures, structural changes, foreign exchange translation and for full-year 2016 the impact of a 53rd week.

本次電話會議中的陳述，應與今日財報新聞稿以及我們最近向美國證券交易委員會（SEC）提交的定期報告中所載的警示性聲明與其他資訊一併考量。提及的有機營收結果不包含併購與處分、結構性變動、外匯換算影響，以及就 2016 全年而言不包含第 53 週的影響。

To find disclosures and reconciliations of non-GAAP measures that we use when discussing PepsiCo's financial results, you should refer to the glossary and other attachments to this morning's earnings release and to the investors section of PepsiCo's website under the events and presentations.

若要查閱我們在討論百事公司財務結果時所使用的非 GAAP 指標之揭露與調節表，請參考今早財報新聞稿中的詞彙表與其他附件，以及百事公司網站投資人專區中「活動與簡報」項下的相關資料。

As we discuss today's results, please keep in mind that our second-quarter comprises the 12 weeks ended June 11 for our North American operations and the three months of March through May for most of our operations outside of North America. And now it is my pleasure to introduce Indra Nooyi.

在討論今日結果時，請記得我們的第二季：北美業務涵蓋截至 6 月 11 日止的 12 週；而北美以外多數業務則涵蓋 3 月至 5 月的三個月。現在很榮幸介紹 Indra Nooyi。

Thanks, Jamie. I'm pleased to report that our businesses continued to perform well in the second quarter. We had more than 2% organic volume growth in both global snacks and global beverages. While foreign exchange translations continue to pressure our reported revenue results, we delivered more than 3% organic revenue growth led by Frito-Lay North America, AMENA and Latin America. ESSA delivered operating margin expansion together with increased A&M investment.

謝謝你，Jamie。我很高興報告，我們的業務在第二季持續表現良好。我們的全球零食與全球飲料兩大業務，有機銷量成長皆超過 2%。雖然外匯換算持續對我們的報告營收造成壓力，但在北美菲多利（Frito-Lay North America）、AMENA 與拉丁美洲的帶動下，我們仍實現超過 3% 的有機營收成長。ESSA 在增加 A&M（廣告與行銷）投資的同時，也帶來營業利益率擴張。

North American Beverages delivered solid net price realization and margin expansion. And Quaker Foods North America had very strong net revenue and operating profit growth. And positive net pricing and continued execution of our productivity agenda, including the implementation of our Smart Spending program drove 80 basis points of core operating margin expansion.

北美飲料（North American Beverages）實現穩健的淨價格實現（net price realization）與利潤率擴張。北美桂格食品（Quaker Foods North America）的淨營收與營業利益成長也非常強勁。此外，正向的淨定價，以及我們生產力議程的持續落實（包括推行 Smart Spending 計畫），帶動核心營業利益率擴張 80 個基點。

At the same time, we continue to invest in advertising and marketing, which increased 50 basis points as a percentage of sales in the second quarter. And our performance is well-balanced by market type. Our developing and emerging markets businesses grew organic revenue almost 7% for the quarter with double-digit organic revenue growth in China, Mexico, (technical difficulty) and Egypt.

同時，我們持續投資於廣告與行銷，第二季 A&M 佔銷售額比重提高 50 個基點。我們的表現也在不同市場類型間保持均衡。開發中與新興市場業務本季有機營收成長接近 7%，其中中國、墨西哥、（技術問題）以及埃及的有機營收皆呈現兩位數成長。

And our developed markets growth was led by the United States where we grew revenue more than 2%. In fact, on a standalone basis, Frito-Lay was the largest contributor to growth at retail and gained value share in both salty and macro snacks.

已開發市場的成長則由美國帶動，我們在美國的營收成長超過 2%。事實上，若以單一事業體來看，菲多利（Frito-Lay）是零售端成長的最大貢獻者，並在鹹味零食與大型零食（macro snacks）兩個品類中皆提升了價值市佔率。

North American Beverages maintained its value share leadership and possesses 5 of the 10 top beverage trademarks based on dollar sales -- Pepsi, Mountain Dew, Gatorade, Lipton and Starbucks. And Quaker gained almost 1.5 value share points in hot cereal while accounting for 100% of category retail sales growth.

北美飲料維持其價值市佔領先地位，並擁有以美元銷售額計算的前十大飲料商標中的 5 個——Pepsi、Mountain Dew、Gatorade、Lipton 與 Starbucks。桂格（Quaker）在熱穀物（hot cereal）品類的價值市佔率提升近 1.5 個百分點，同時貢獻了該品類零售銷售成長的 100%。

Year-to-date our results are equally strong. Organic revenue grew 3.4%; core constant currency operating profit grew 7% and up 9%, excluding the impact of deconsolidating Venezuela; and core constant currency EPS grew 8%, but up 10% excluding the Venezuela impact.

截至目前（year-to-date），我們的結果同樣強勁。有機營收成長 3.4%；核心固定匯率（core constant currency）營業利益成長 7%，若排除委內瑞拉去合併（deconsolidating Venezuela）的影響則成長 9%；核心固定匯率每股盈餘（EPS）成長 8%，若排除委內瑞拉影響則成長 10%。

On the strength of our year-to-date results and our outlook for the balance of the year, we have increased our full-year core EPS target to $4.71 from our previous target of $4.66, driven by the expectations and factors set out in this morning's press release.

基於截至目前的強勁表現以及對今年剩餘期間的展望，我們將全年核心 EPS 目標由先前的 4.66 美元上調至 4.71 美元，主要驅動因素與假設已載於今早的新聞稿。

Specifically, there are five things we have focused on to deliver in what continues to be a challenging macro environment -- first, consumer-centric relentless innovation; second, connecting with digital age consumers in new ways; third, being a true growth partner to our customers; fourth, flawless end-to-end execution; and fifth, a maniacal focus on productivity.

具體而言，在宏觀環境仍具挑戰的情況下，我們聚焦於五件事以交付成果——第一，以消費者為中心、永不止息的創新；第二，以新方式與數位時代消費者連結；第三，成為客戶真正的成長夥伴；第四，端到端的零缺陷執行；第五，對生產力的極致專注。

Let me touch on each briefly. Product innovation and portfolio transformation are enabling us to provide consumers the delicious and convenient products they want and to satisfy their constantly evolving demands across a broad spectrum of occasions and need states. We have ramped up our innovation engine and as a result, new products comprise approximately 9% of sales or over $5 billion. We've achieved this by leveraging our global scale while simultaneously tailoring products to appeal to local tastes; addressing consumers' evolving demands for convenience, taste and variety from the occasional treat to nutrition by transforming our product portfolio.

我簡要說明每一項。產品創新與產品組合轉型，使我們能提供消費者想要的美味且便利的產品，並在廣泛的使用情境與需求狀態下，滿足其不斷演變的需求。我們已加速推進創新引擎，因此新產品約占銷售額的 9%，或超過 50 億美元。我們透過運用全球規模優勢，同時依在地口味調整產品；並藉由轉型產品組合，從偶爾享受的零食到營養需求，回應消費者對便利、口味與多樣性的演進需求，從而達成上述成果。

So today, what we refer to as guilt-free products generates approximately 45% of our net revenue. And we are now recognizing consumers' interests in craft, niche and premium products. So for example in beverages, Gatorade continues to innovate in the new areas of sports hydration with the introduction of the G Frost flavor lineup, while Propel, by the makers of Gatorade, drove more than 40% of the enhanced water category volume growth year-to-date.

因此，今天我們所稱的「無負擔（guilt-free）」產品約貢獻我們淨營收的 45%。我們也正在辨識消費者對手作（craft）、利基（niche）與高端（premium）產品的興趣。例如在飲料方面，Gatorade 持續在運動補水的新領域創新，推出 G Frost 口味系列；而由 Gatorade 團隊打造的 Propel，截至目前帶動強化水（enhanced water）品類銷量成長超過 40%。

Following on the success of Mountain Dew Kickstart, we've introduced Mountain Dew Black Label, a deeper darker Dew, made with real sugar and crafted with dark berry flavor and herbal bitters. Mountain Dew Black Label is for those times when Dew Nation wants to live it up with a touch of class. Dew Black Label was initially released exclusively at approximately 600 colleges and universities, giving students a first taste of the unique beverage and demand for the product built as word quickly spread across social media.

延續 Mountain Dew Kickstart 的成功，我們推出了 Mountain Dew Black Label——更深、更暗的 Dew，使用真正的糖製作，並以深色莓果風味與草本苦味調製而成。Mountain Dew Black Label 適合在 Dew Nation 想要帶點品味、盡情享受的時刻。Dew Black Label 最初在約 600 所大學與學院獨家上市，讓學生率先品嚐這款獨特飲料；隨著社群媒體迅速口耳相傳，產品需求也逐步建立。

Along with the nationwide release of Mountain Dew Black Label, the brand is extending its Boldly Refined campaign. It started with activation during the South By Southwest Music Conference and Festival in Austin, which included the Mountain Dew Black Label parlor, a South by Southwest takeover concert and product seeding at local bars and venues. The campaign continued with a release of a new digital sport called Gentlemen of the Jacket. The content showcases different gentlemen skaters, including Dew athlete and pro skateboarder Theotis Beasley, mixologists and gamers, all crossing over to the classier side of Dew with the help of putting on a unique jacket, transforming worlds they are in to become a more refined version of itself, yet still getting at the heart of all things Dew.

隨著 Mountain Dew Black Label 在全美上市，品牌也延伸其「Boldly Refined」行銷活動。活動起點是在德州奧斯汀的 South By Southwest 音樂會議與藝術節期間進行啟動，內容包括 Mountain Dew Black Label 沙龍、South by Southwest 接管式演唱會，以及在當地酒吧與場館進行產品投放。接著，活動推出一項新的數位運動內容《Gentlemen of the Jacket》。該內容呈現不同的「紳士」滑板手（包括 Dew 運動員、職業滑板選手 Theotis Beasley）、調酒師與玩家；他們透過穿上一件獨特外套，跨入更具格調的 Dew 世界，將其所處的世界轉化為更精緻的版本，同時仍緊扣 Dew 的核心精神。

In the second quarter, we also launched Aquafina Sparkling, a new line of flavored sparkling water that provides a light and naturally sweetened hydration option. Aquafina Sparkling is offered in three delicious fruit flavors -- black cherry dragon fruit, lemon lime and orange grapefruit. Each sleek single serve 12 ounce can contains just 10 calories and the tiniest pinch of fair-trade certified sugar for a smooth crisp finish. Aquafina Sparkling will also be available in a multipack containing two flavors.

在第二季，我們也推出 Aquafina Sparkling——一個新的風味氣泡水產品線，提供清爽、自然甜味的補水選擇。Aquafina Sparkling 提供三種美味果香口味——黑櫻桃火龍果、檸檬萊姆，以及柳橙葡萄柚。每一罐流線型單罐 12 盎司僅含 10 卡路里，並僅加入極少量通過公平貿易認證的糖，帶來順口清脆的尾韻。Aquafina Sparkling 也將推出包含兩種口味的綜合多入裝。

We are also appealing to consumers' desire for discovery and more premium experiences. Naked Juice launched a line of cold-pressed juices branded Naked Pressed. It provides a new take on fresh taste, and the line comes in five varieties. It's sourced from cold-pressed whole fruits and vegetables and is non-GMO project verified.

我們也在迎合消費者對探索與更高端體驗的渴望。Naked Juice 推出一系列冷壓果汁，品牌名為 Naked Pressed。它以全新的方式呈現新鮮口感，該系列共有五種口味。產品採用冷壓的整顆水果與蔬菜製成，並通過非基改（Non-GMO Project）驗證。

And Pepsi has introduced 1893 From the Makers of Pepsi-Cola. It capitalizes on the cultural food revolution and is inspired by consumer interest in bold and interesting taste combinations. 1893 is packaged in sleek and premium 12 ounce cans and brings together premium ingredients and more than 100 years of cola-making expertise to present a great-tasting, unexpectedly bold experience.

此外，百事推出了 1893 From the Makers of Pepsi-Cola。它把握文化飲食革命的趨勢，靈感來自消費者對大膽且有趣的風味組合的興趣。1893 採用俐落且高端的 12 盎司罐裝包裝，結合優質原料與逾 100 年的可樂製作專業，帶來口感絕佳、出乎意料地大膽的體驗。

1893 is a brand of premium cola nut extract, real sugar and sparkling water available in two delicious flavors -- original and ginger cola. 1893 can be enjoyed as a delicious standalone beverage, and it's also the perfect complement for cocktails.

1893 是一款高端可樂品牌，採用優質可樂果萃取物、真糖與氣泡水，提供兩種美味口味——原味與薑味可樂。1893 可作為美味的單獨飲品享用，也非常適合搭配雞尾酒。

In the Quaker business, because consumers are increasingly seeking greater convenience, portability and nutrition in their breakfast, we have introduced Quaker Breakfast Flats, crispy baked snack bars that contain delicious ingredients that you can see like oats, real pieces of fruit, crunchy nuts, flax and sunflower seeds. Each serving contains 18 grams of whole grain with less than 200 calories and no artificial flavors or added colors. Quaker Breakfast Flats comes in three delicious flavors, including cranberry almond, banana honey nut and golden raisin cinnamon.

在桂格（Quaker）業務方面，由於消費者在早餐上愈來愈追求更高的便利性、可攜性與營養，我們推出了 Quaker Breakfast Flats——酥脆烘焙的點心棒，含有你看得見的美味食材，例如燕麥、真實果粒、香脆堅果、亞麻籽與葵花籽。每份含 18 克全穀，熱量低於 200 卡，且不含人工香料或添加色素。Quaker Breakfast Flats 共有三種美味口味，包括蔓越莓杏仁、香蕉蜂蜜堅果與金葡萄乾肉桂。

Turning to Frito-Lay, we continue to expand our portfolio with a particular focus on premium offerings and healthy snacking options. So for example, we've expanded our Simply line with the introduction of Simply Tostitos Black Bean chips made from real black beans. It's non-GMO project verified and Simply Tostitos Black Bean chips offer consumers an excellent source of fiber with 5 grams per 1 ounce serving.

談到 Frito-Lay，我們持續擴充產品組合，特別聚焦於高端產品與健康零食選擇。例如，我們擴展了 Simply 系列，推出以真正黑豆製成的 Simply Tostitos Black Bean 玉米片。該產品通過非基改（Non-GMO Project）驗證；Simply Tostitos Black Bean 玉米片每 1 盎司份量含 5 克膳食纖維，是極佳的纖維來源。

And this Simply line has also introduced Simply Tostitos organic chunky medium salsa and Simply Tostitos organic black bean and corn mild salsa, and both salsa varieties are USDA-certified organic.

此外，Simply 系列也推出了 Simply Tostitos 有機粗粒中辣莎莎醬，以及 Simply Tostitos 有機黑豆玉米溫和莎莎醬；兩款莎莎醬皆通過美國農業部（USDA）有機認證。

SunChips has introduced Veggie Harvest farmhouse ranch flavored veggie and whole grain and Veggie Harvest tomato, basil and cheese flavored veggie and whole grain, and both are made with real veggies and whole grains.

SunChips 推出了 Veggie Harvest 鄉村牧場風味蔬菜全穀片，以及 Veggie Harvest 番茄、羅勒與起司風味蔬菜全穀片；兩者皆以真正蔬菜與全穀製成。

And Smartfood has introduced Smartfood Delights sea-salted caramel-flavored popcorn, which offers 50% less fat when compared to regular Smartfood white cheddar popcorn. It offers 100% whole grains and 35 calories per cup.

Smartfood 推出了 Smartfood Delights 海鹽焦糖風味爆米花，與一般 Smartfood 白切達起司爆米花相比，脂肪含量減少 50%。它提供 100% 全穀，每杯 35 卡路里。

So as a result of initiatives like this year-to-date, our Frito-Lay US premium portfolio growth is outpacing the growth in the balance of the portfolio by a factor of more than 4 times, and we are extending our value shared leadership position in premium salty snacks. So that's innovation.

因此，受惠於今年迄今這類舉措，我們 Frito-Lay 美國高端產品組合的成長速度，已超過其餘產品組合成長的 4 倍以上；我們也正在延伸在高端鹹味零食領域的價值共享領導地位。這就是創新。

The second capability I mentioned is connecting with consumers in the age of social and digital media and the purpose-driven consumer. So this summer, Gatorade is running For the Love of Sports, a national campaign that encourages athletes to think about and hold onto that moment when they were younger and (technical difficulty) in love with sport. The multifaceted campaign features a national retail promotion, TV commercials and a unique cause initiative that encourages consumers to vote for deserving sports-focused organizations to which Gatorade will donate on their behalf.

我提到的第二項能力，是在社群與數位媒體時代，以及目的導向型消費者崛起的背景下，與消費者建立連結。因此今年夏天，佳得樂（Gatorade）推出「For the Love of Sports」全國性活動，鼓勵運動員回想並牢記自己年少時（技術問題）愛上運動的那一刻。這項多面向活動包含全國零售促銷、電視廣告，以及一項獨特的公益倡議，鼓勵消費者投票支持值得肯定的運動相關組織，佳得樂將代表消費者向其捐款。

The retail component includes limited-time-only bottles featuring athletes such as Usain Bolt, Serena Williams, Paul George and April Ross, with a special callout of the For the Love of Sports cause initiative. Gatorade has partnered with a total of 19 sports-focused non-profit organizations, five of which were selected by [roster] athletes featured on the limited-time offer bottles. For the remaining 14 organizations, consumers will have the opportunity to vote for their favorite online to receive donations that will help athletes pursue their love of sport.

零售端的活動包含限時推出的瓶身，印有烏塞恩・博爾特（Usain Bolt）、瑟琳娜・威廉斯（Serena Williams）、保羅・喬治（Paul George）與艾普莉・羅斯（April Ross）等運動員，並特別標示「For the Love of Sports」公益倡議。佳得樂與共 19 家以運動為主的非營利組織合作，其中 5 家由出現在限時瓶身上的[名單]運動員選出。其餘 14 家組織則讓消費者可在線上投票選出最喜愛者以獲得捐款，協助運動員追求對運動的熱愛。

We are also driving greater consumption of Quaker oats in the warmer shoulder season by promoting the concept of overnight oats. We have collaborated with influential foodies to bring consumers quick and easy online tutorials on how to make delicious and nutritious jars of chilled overnight oats, perfect for days when you just need a simple, no cook recipe.

我們也透過推廣「隔夜燕麥」（overnight oats）的概念，在較溫暖的換季時段帶動桂格燕麥的更多食用。我們與具影響力的美食達人合作，為消費者提供快速且簡單的線上教學，教大家如何製作美味又營養的冷藏隔夜燕麥罐，非常適合在你只需要一個簡單、免烹煮食譜的日子。

And earlier this year, we kicked off Quaker's very first Bring Your Best Bowl Contest, a nationwide search for the next Quaker oatmeal flavor. The Bring Your Best Bowl Contest highlights the endless ways to enjoy oatmeal and invited fans across the country to submit their oatmeal creation using two to five ingredients, along with their inspiration for a chance to win $250,000 and have their combination brought to life as Quaker's newest oatmeal flavor.

而在今年稍早，我們啟動了桂格史上第一個「Bring Your Best Bowl Contest」，在全國尋找下一款桂格燕麥粥口味。「Bring Your Best Bowl Contest」凸顯享用燕麥粥的無限方式，並邀請全美粉絲以 2 到 5 種食材提交他們的燕麥粥創作，以及其靈感來源，爭取贏得 25 萬美元，並讓其組合成為桂格最新的燕麥粥口味。

Millions of consumers submitted creations using two to five ingredients along with the inspiration behind their idea. Three finalists' flavors are now being developed by Quaker and will be revealed on around National Oatmeal Day, which is October 29. The selected flavors will then be made available in stores across the country for consumers to taste. Then it's up to America to vote online before the winning flavor is revealed in February of 2017. The grand prize winner will take home the cash prize along with a chance to have his or her oatmeal combination debut on shelves nationwide.

數百萬名消費者提交了使用 2 到 5 種食材的創作，以及其構想背後的靈感。三位決賽入圍者的口味目前正由桂格開發，並將在接近「全國燕麥粥日」（10 月 29 日）時揭曉。入選口味之後將在全國各地門市上架供消費者品嚐。接著將由全美在 2017 年 2 月揭曉得獎口味前進行線上投票。總冠軍得主將獲得現金大獎，並有機會讓其燕麥粥組合在全國貨架上首次亮相。

At the same time, Frito-Lay drove greater consumer engagement with the Lay's brand by asking America to help decide which Lay's flavors stay and which ones go. The Lay's Flavor Swap Campaign asked Americans to unleash the power of their pallets and allow their voices and their taste buds to be heard. Consumers were invited to visit flavorswap.com to vote for their favorite flavor, each of the four Flavor Swap matchups. We received millions of customer votes, drove tremendous social media buzz and consumer engagement and strengthened Lay's brand awareness in regard.

同時，Frito-Lay 也透過請全美消費者協助決定哪些樂事（Lay's）口味保留、哪些淘汰，來提升消費者與樂事品牌的互動。「Lay's Flavor Swap」活動邀請美國人釋放味蕾的力量，讓他們的聲音與味覺被聽見。消費者受邀造訪 flavorswap.com，針對四組 Flavor Swap 對決投票選出最喜愛的口味。我們收到數百萬張消費者投票，帶動大量社群媒體討論與消費者互動，並進一步強化樂事品牌知名度。

To support trademark Pepsi this summer, we are taking the world's global language, emojis, we are taking it offline in a visually striking and socially shareable campaign inviting consumers to Save [the] Pepsi. From a smile, to a kiss, to a wink, this initiative connects cola lovers around the world through a common language that is uniquely and definably Pepsi.

為了在今年夏天支持百事（Pepsi）主品牌，我們把全球共通語言——表情符號（emojis）——帶到線下，推出視覺吸睛且適合社群分享的活動，邀請消費者「Save [the] Pepsi」。從微笑、親吻到眨眼，這項倡議透過一種獨特且明確屬於百事的共同語言，將全球可樂愛好者連結在一起。

The PepsiCo Design and Innovation Center created more than 600 Pepsi emoji designs all incorporating the essence of Pepsi, including the brand's iconic globe shape and the colors of blue, red and white. Both globally relevant and locally significant Pepsi emoji designs come to life across the full Pepsi portfolio and also beyond packaging in unexpected ways such as a fashion collaboration with designer Jeremy Scott. The limited-edition Pepsi with Jeremy Scott capsule collection includes six styles of emoji-inspired sunglasses featuring Pepsi emoji designs.

百事可樂設計與創新中心（PepsiCo Design and Innovation Center）創作了超過 600 款百事表情符號設計，皆融入百事的精髓，包括品牌具代表性的地球圖形，以及藍、紅、白三色。這些兼具全球相關性與在地意義的百事表情符號設計，遍及整個百事產品組合，並且也以出乎意料的方式延伸到包裝之外，例如與設計師 Jeremy Scott 的時尚合作。限量版「Pepsi with Jeremy Scott」膠囊系列包含六款受表情符號啟發的太陽眼鏡款式，採用百事表情符號設計。

We have partnerships with famed photographer Ben Watts, as well as Daniel Arnold, a street photographer with one of today's most enviable Instagram followings. Their work shares a story of #pepsiemoji in the same non-verbal way as emojis themselves with a quirky, candid and playful tone. We also have localized experiential content from vending machines in India that dispense Pepsi product adorned with the Pepsi emoji design that matches a user's current state of mind to online engagement in Argentina where consumers can create a personalized Pepsi emoji design or use Pepsi emoji accessories to fashion their selfies. And we also have a free Pepsi emoji keyboard app that can be downloaded at the Apple app or Google Play stores.

我們與知名攝影師 Ben Watts 合作，也與 Daniel Arnold 合作；Daniel Arnold 是街頭攝影師，擁有當今最令人稱羨的 Instagram 追蹤者之一。他們的作品以與表情符號本身相同的非語言方式，透過古怪、真實且俏皮的語氣，講述 #pepsiemoji 的故事。我們也有在地化的體驗式內容：例如在印度，販賣機會依使用者當下心情發放貼有相符百事表情符號設計的百事產品；在阿根廷，消費者可線上互動創作個人化百事表情符號設計，或使用百事表情符號配件來打造自拍。此外，我們也推出可免費下載的百事表情符號鍵盤 App，可於 Apple App 或 Google Play 商店下載。

Global television and original digital creative also showcase how communicating through Pepsi emoji icons can lead to unpredictable and memorable adventures and experiences and consumers around the world have already begun to experience #pepsiemoji in the US, Australia, Canada, India, Mexico, Russia and Thailand. A global campaign is being featured in more than 100 markets around the world in 2016.

全球電視與原創數位創意內容也展示了：透過百事表情符號圖示進行溝通，如何引發難以預測且令人難忘的冒險與體驗；全球消費者已開始在美國、澳洲、加拿大、印度、墨西哥、俄羅斯與泰國體驗 #pepsiemoji。這項全球活動於 2016 年在全球超過 100 個市場推出。

We are also capitalizing on our partnership with the UEFA Champions League with global activation. Every year, the UEFA Champions League brings together the best teams across Europe to compete in the game's biggest club competition. Fans of the tournament extend far and wide around the world. That's why in more than 100 markets around the globe, PepsiCo-executed programs realize the benefits of our official sponsorship of the UEFA Champions League.

我們也正透過全球性啟動活動，充分運用與歐洲冠軍聯賽（UEFA Champions League）的合作夥伴關係。每年，歐洲冠軍聯賽匯聚歐洲各地最頂尖的球隊，角逐這項足球界規模最大的俱樂部賽事。該賽事的球迷遍布全球各地。正因如此，在全球超過100個市場，由百事公司（PepsiCo）執行的各項計畫，得以實現我們作為歐洲冠軍聯賽官方贊助商所帶來的效益。

From Argentina to Zambia, we have football fans covered with exciting media (inaudible) campaigns tailored to the local market. For example, in South Africa, Lays and Pepsi launched a national #PerfectMatch campaign, reinforcing Lay's and Pepsi as the snack and beverage combination of choice.

從阿根廷到尚比亞，我們透過為當地市場量身打造、令人振奮的媒體（聽不清）活動，全面覆蓋足球迷。例如在南非，樂事（Lay's）與百事可樂（Pepsi）推出全國性的 #PerfectMatch 活動，強化樂事與百事可樂作為首選零食與飲料搭配的定位。

In Mexico, we ran the Power of One campaign promoting the concept, Pepsi and Sabritas take you to the UEFA Champions League final. And in Chile, we leveraged the UEFA Champions League partnership with unique packaging and promotions across our Gatorade, Pepsi and Lay's brands. And we delivered a phenomenal experience in the UEFA Champions League final opening ceremony presented by Pepsi, where Alicia Keys gave an incredible performance, ushering a new live entertainment era at the soccer final.

在墨西哥，我們推出「Power of One」活動，宣傳「百事可樂與 Sabritas 帶你前往歐洲冠軍聯賽決賽」的概念。而在智利，我們透過佳得樂（Gatorade）、百事可樂（Pepsi）與樂事（Lay's）品牌的獨特包裝與促銷活動，深化歐洲冠軍聯賽合作夥伴關係。我們也在由百事呈獻的歐洲冠軍聯賽決賽開幕典禮上打造了非凡體驗，Alicia Keys 帶來精彩演出，為足球決賽揭開全新現場娛樂時代。

The third capability is being a valued growth partner with retailers and we've done this by continuing to drive traffic and basket size through investing in and leveraging consumer and shopper insights, constantly finding new ways to become more efficient and coordinated with our retail partners' supply chains and integrating our marketing initiatives with our retailer strategies, including tailored execution of sports, music and other properties.

第三項能力是成為零售商珍視的成長夥伴；我們透過持續投資並運用消費者與購物者洞察，推動來客數與客單價成長，同時不斷尋找新方法，與零售夥伴的供應鏈更有效率且更協同地運作，並將我們的行銷倡議與零售商策略整合，包括針對運動、音樂及其他資產的客製化執行。

As a consequence, we tend to be among the top drivers of our customers' growth. In fact, in the United States, which is our largest market, in the second quarter, we were once again the largest contributor to food and beverage retail growth in the United States, accounting for more growth at retail than all other $5 billion plus food and beverage manufacturers combined.

因此，我們往往是客戶成長的主要推動者之一。事實上，在我們最大的市場美國，第二季我們再次成為美國食品與飲料零售成長的最大貢獻者；我們在零售端所帶來的成長，超過所有其他年營收50億美元以上的食品與飲料製造商合計的成長。

The next capability is dialing up end-to-end execution from seed to shelf making sure our products are fresh and ubiquitously available. We are doing this by using advanced data and analytics to capture more precise demand signals to inform our supply chain and retooling our supply chain and go-to-market systems to improve service, eliminate out-of-stocks and reduce the cycle time from raw material to product on the shelf. Our initiatives in this area now include expanding our successful GES program from Frito-Lay North America to our beverage businesses.

下一項能力是強化從源頭到貨架的端到端執行，確保我們的產品新鮮且隨處可得。我們透過先進資料與分析，捕捉更精準的需求訊號以指引供應鏈，並改造供應鏈與上市（go-to-market）系統，以提升服務水準、消除缺貨並縮短從原料到產品上架的週期時間。我們在此領域的措施目前也包括將成功的 GES 計畫從 Frito-Lay 北美擴展至我們的飲料業務。

And the fifth and final focus is fueling margin expansion and capability investments with productivity. Year-to-date, core gross margins expanded 100 basis points and core operating margin expanded 115 basis points even as we continue to invest in A&M, which is up 55 basis points as a percentage of sales.

第五項也是最後一項重點，是以生產力推動毛利率擴張與能力投資。截至目前為止，核心毛利率擴大100個基點，核心營業利益率擴大115個基點，即使我們持續投資於 A&M（廣告與行銷），其占銷售額比重也上升了55個基點。

In addition to marketing, we will also continue to invest in critical capabilities like R&D, the establishment of our Global Design Center and the creation of our Global eCommerce Group. To capture productivity, we are increasingly leveraging automation and advanced technology, as well as the development and deployment of global best practices all to make our supply chain more efficient.

除了行銷之外，我們也將持續投資於關鍵能力，例如研發（R&D）、成立全球設計中心（Global Design Center），以及建立全球電子商務團隊（Global eCommerce Group）。為了取得生產力，我們正日益運用自動化與先進技術，並發展與推行全球最佳實務，以提升供應鏈效率。

Let me just give you a few examples from the hundreds of supply chain productivity projects that are currently in flight. We are implementing automated high-speed packaging lines across the globe, increasing packaging line speeds by up to 50% while at the same time eliminating the bottleneck to total production lines and significantly reducing labor costs.

我僅舉幾個例子，這些只是目前正在推進的數百個供應鏈生產力專案中的一部分。我們正在全球導入自動化高速包裝產線，將包裝線速度提升最高達50%，同時消除整體生產線的瓶頸，並大幅降低人力成本。

To improve our water use efficiency, we have developed and are implementing technology and processes that capture sugar and starch from wastewater streams. The waste sugars and starches are then sold as byproduct. The resulting water stream can then be repurposed for secondary manufacturing uses such as sanitation. This normally generates incremental cash flow and saves money and also reduces our water usage to advance our sustainability agenda.

為提升用水效率，我們已開發並正在導入可從廢水流中回收糖與澱粉的技術與流程。這些廢糖與澱粉隨後會作為副產品出售。處理後的水流則可再利用於次級製造用途，例如清潔消毒。這通常能帶來額外現金流、節省成本，並降低用水量，以推進我們的永續發展議程。

Our Global Operations Group is identifying and then lifting and shifting best practices developed by our manufacturing teams around the world. For example, our manufacturing team in Romania developed a refinement to our potato-cutting process that can reduce raw potato waste by up to 2%. We are now implementing this process improvement in other plants around the globe.

我們的全球營運團隊（Global Operations Group）正在辨識並複製、移轉由全球各地製造團隊所建立的最佳實務。例如，我們在羅馬尼亞的製造團隊對馬鈴薯切割流程進行了改良，可將原料馬鈴薯浪費降低最多達2%。我們目前正於全球其他工廠導入這項流程改善。

We are capturing significant savings by using advanced logistics planning processes and tools, which enable us to optimize both the mode and routing of material transport. These tools, initially developed and deployed in North America, have been expanded to nine more countries and are generating 3% to 4% savings in transportation costs, and in key markets, we have also advanced our third-party transportation procurement process by consolidating all transport origin destination pairs across our food and beverage businesses to present to the market for competitive bids. And we have the opportunity to expand this process to many more markets.

我們透過先進的物流規劃流程與工具取得可觀節省，這些工具使我們能同時最佳化物料運輸的方式與路線。這些工具最初在北美開發並部署，現已擴展至另外九個國家，帶來3%至4%的運輸成本節省。此外，在關鍵市場，我們也透過整合食品與飲料業務中所有運輸起訖配對，向市場提出以進行競標，進一步提升第三方運輸採購流程。我們也有機會將此流程擴展至更多市場。

Productivity is also being captured through the implementation of our Smart Spending program, which is driving meaningful reductions in key discretionary spending areas like travel, facilities and consulting. We are attacking spending on both rate and volume dimensions. So for example, in travel, we've adopted much more stringent policies governing mode and class of travel, hotel rate and per diem meal limits, all of which have reduced the rate element of the cost. But we've also mandated and encouraged working in ways that reduce the volume element of costs.

我們也透過導入「Smart Spending」計畫來取得生產力，該計畫正推動在差旅、設施與顧問等主要可自由裁量支出領域的大幅削減。我們同時從費率與用量兩個面向著手。因此，例如在差旅方面，我們採用更嚴格的政策，規範交通方式與艙等、飯店房價以及每日餐費上限，這些措施降低了成本中的費率要素。但我們也強制並鼓勵以能降低成本用量要素的方式工作。

So for example, we've reduced meeting-related travel by insisting on the use of teleconferencing in place of physical meetings in many instances. And as a result of all of our productivity efforts, we are capturing significant savings that are delivering meaningful margin improvement and also providing the funding necessary to invest in the long-term health of the business.

例如，我們在許多情況下要求以電話／視訊會議取代實體會議，因而降低與會議相關的差旅。由於我們所有的生產力努力，我們正取得可觀節省，帶來實質的利潤率改善，同時也提供必要資金，以投資於企業長期健康發展。

Taken together, our top line driving commercial activities and our robust productivity agenda are helping us to deliver our financial targets despite continuing macro challenges. We are aggressively driving innovation, marketing, marketplace execution productivity to deliver balanced and sustainable performance. We are confident we have the right plans in place and believe we are well-positioned to achieve our 2016 targets, including our increased core constant currency EPS outlook, which we announced this morning.

綜合而言，我們推動營收成長的商業活動與強健的生產力議程，正協助我們在宏觀挑戰持續存在的情況下，仍能達成財務目標。我們正積極推動創新、行銷、市場執行與生產力，以交付均衡且可持續的表現。我們有信心已具備正確的計畫，並相信我們已處於有利位置以達成2016年目標，包括我們今早宣布上調的核心固定匯率每股盈餘（EPS）展望。

Just as important, we continue to invest in capabilities and to transform our portfolio to succeed in the dynamic customer and consumer landscapes with a singular goal of generating sustainable shareholder value for the long term. With that, let me turn the call over to Hugh Johnston. Hugh.

同樣重要的是，我們持續投資能力並轉型我們的產品組合，以在動態變化的客戶與消費者環境中取得成功；我們唯一的目標是長期創造可持續的股東價值。接下來，我把電話交給 Hugh Johnston。Hugh。

Thank you, Indra and good morning, everyone. As Indra mentioned, we are pleased with the financial results for the first half and we have a positive outlook for our performance for the balance of year, and so as you saw in this morning's release, we've raised our full-year core EPS target to $4.71, which incorporates the following -- underlying core constant currency growth of 9%, excluding the impact of deconsolidating Venezuela; a negative 2 percentage point impact of the Venezuela deconsolidation; and a negative 4 percentage point impact from foreign exchange translation based on current market consensus.

謝謝你，Indra，各位早安。正如 Indra 提到的，我們對上半年財務結果感到滿意，並對今年剩餘期間的表現持正面展望。因此，如同你們在今早的新聞稿中所見，我們將全年核心 EPS 目標上調至 4.71 美元，其中包含以下因素——在排除委內瑞拉去合併（deconsolidating Venezuela）影響後，核心固定匯率的內生成長為9%；委內瑞拉去合併帶來負2個百分點影響；以及依據目前市場共識，外匯換算（foreign exchange translation）帶來負4個百分點影響。

Our outlooks on the other metrics we provide remain unchanged and are set out in this morning's release. Our efforts to improve working capital continue to yield positive results. Over the past year, we have improved our working capital cash conversion cycle by more than 10 days.

我們對其他所提供指標的展望維持不變，並已列於今早的新聞稿中。我們改善營運資金的努力持續帶來正面成果。過去一年，我們已將營運資金現金轉換週期改善超過10天。

For analysts on the call, as you update your models, I ask that you consider the following factors. Foreign exchange translation continues to be a headwind more heavily skewed to Q3 than Q4. We have more difficult core constant currency operating profit growth comparisons in the second half at Frito-Lay North America. North America Beverages has particularly difficult revenue and operating profit lapse in Q3. We expect low single-digit raw material inflation, including the impacts of foreign exchange translation, in the second half compared to modest deflation in the first half.

對於參與本次電話會議的分析師，在你們更新模型時，我請你們考量以下因素。外匯換算仍將是逆風，且對第三季（Q3）的影響明顯大於第四季（Q4）。Frito-Lay 北美在下半年將面臨更具挑戰性的核心固定匯率營業利益成長比較基期。北美飲料（North America Beverages）在第三季的營收與營業利益比較基期尤其艱難。我們預期下半年原物料將出現低個位數通膨（包含外匯換算影響），相較於上半年溫和的通縮。

We will continue to invest in our business to drive sustainable long-term growth, including an expected increase in advertising and marketing expense as a percentage of sales for the full year. And finally, we will be lapping Venezuela core earnings of approximately $0.06 per share in Q3. Taken together, we expect the balance-of-year core EPS growth to be generated entirely in the fourth quarter. And with that, operator, we will take the first question.

我們將持續投資於業務，以推動可持續的長期成長，其中包括預期全年廣告與行銷費用占銷售額的比重將上升。最後，我們在第三季將面臨委內瑞拉核心盈餘約每股0.06美元的比較基期。綜合以上因素，我們預期今年剩餘期間的核心每股盈餘（core EPS）成長將完全在第四季實現。那麼，接線員，我們將開始第一個問題。

Thank you. (Operator Instructions). Bill Schmitz, Deutsche Bank.

謝謝。（接線員指示）。德意志銀行的 Bill Schmitz。

Can you guys just talk about the sustainability of the great organic growth at Frito and then also the margins, which are pretty close to peak? Maybe I'm wrong on this assumption, but I think Frito disproportionally benefited from GES and I just wondered what inning we are in baseball terminology on that front and if you still think there's room for margins to go up there.

你們能否談談 Frito 優異的有機成長的可持續性，另外還有利潤率，目前已相當接近高峰？也許我這個假設不對，但我認為 Frito 在 GES 上受益相對更大；我只是想用棒球術語問一下，我們在這方面大概進行到第幾局？以及你們是否仍認為那裡的利潤率還有上升空間。

Let's talk about the organic growth first, Bill, and then, Hugh, maybe you can chip in on the margin expansion. Look, the macro snack category is a big category and we are only playing in the salty snack category expanding into savory snacks and our goal -- if you go back maybe 15 years ago, and we've been consistent in this strategy, we've always said grow the core and add more. (inaudible) the core, we've used these words, and that's what Frito-Lay has been doing -- solidify our position in salty snacks and start to step out of the core into other savory snacks and then start to take on other locations from the overall macro snack category.

Bill，我們先談有機成長，然後 Hugh 也許可以補充談談利潤率擴張。你看，整體零食大類是一個很大的品類，而我們目前主要在鹹味零食品類競爭，並正擴展到更多鹹香（savoury）零食；我們的目標——如果你回顧大約15年前，我們在這個策略上一直很一致——我們一直說要「做大核心、再加更多」。 （聽不清）核心，我們用過這些說法，而這正是 Frito-Lay 一直在做的——鞏固我們在鹹味零食的地位，並開始從核心走出去，進入其他鹹香零食，然後再從整體零食大類中切入其他領域。

So all the work we've done in demand spaces says that there's huge opportunity as the world starts to [stream] more and more towards a liking for savory products. So savory is in and we see amazing opportunities ahead for Frito-Lay to grow its business.

因此，我們在需求領域所做的所有工作都顯示，隨著全球越來越偏好鹹香產品，機會非常巨大。所以鹹香正當道，我們看到 Frito-Lay 未來在業務成長上有令人驚豔的機會。

Secondly, Frito-Lay has been a mainstream competitor. We haven't played as much in the premium part of the portfolio and now we've gotten our game together in the premium side and we are seeing growth, and as I mentioned in the script, the premium part of the portfolio grew 4 times faster. And we are just getting started, so we see tremendous opportunities for Frito-Lay to grow in the premium side.

第二，Frito-Lay 一直是主流市場的競爭者。我們在產品組合的高端（premium）部分涉入相對較少，但現在我們已把高端端的布局做好並看到成長；正如我在講稿中提到的，高端產品組合的成長速度快了4倍。而我們才剛開始，所以我們看到 Frito-Lay 在高端領域有巨大的成長機會。

And I will make one final comment, Bill, before Hugh will talk about productivity. The great thing about Frito-Lay is that we've got great brands, we've got great innovation capability, but we've got an amazing pipeline to the customer and consumer. Our DSG system is a well-oiled machine and we can keep expanding the diameter of that pipeline, and it's really our imagination in terms of what products we can innovate with to put through that pipeline. So with that, Hugh, (technical difficulty) talk about the margins in Frito?

在 Hugh 談生產力之前，Bill，我再補充最後一點。Frito-Lay 的優勢在於我們有很強的品牌、很強的創新能力，而且我們擁有通往客戶與消費者的驚人管道。我們的 DSG 系統是一部運轉良好的機器，我們可以持續擴大這條管道的「直徑」；真正的限制在於我們的想像力——能創新出哪些產品放進這條管道。因此，Hugh，（技術問題）請談談 Frito 的利潤率？

Yes, happy to. Good morning, Bill. A couple comments on margins. And the short answer is I think Frito-Lay still has lots of margin expansion left in it and can do so in a very defendable, sustainable way. Why do I say that? Number one, it's to build on the commentary that Indra just made. While we are the market leaders in premium, we are relatively underpenetrated compared to where we are in mainstream, and premium does offer very, very attractive margins, particularly as you scale it over time. So I think there is a significant margin uplift there.

好的，很樂意。早安，Bill。關於利潤率我有幾點看法。簡短的答案是：我認為 Frito-Lay 的利潤率仍有很大的擴張空間，而且可以用非常可防禦、可持續的方式做到。為什麼這麼說？第一，延續 Indra 剛才的評論。雖然我們在高端市場是領導者，但相較於我們在主流市場的滲透率，高端的滲透仍偏低；而高端確實提供非常、非常有吸引力的利潤率，尤其是隨著時間推進、規模擴大之後。因此我認為那裡有顯著的利潤率上行空間。

Number two is in the area of GES that the initiative that we've been working on for a number of years where we shorten the supply chain, deliver product to the customer and ultimately to the consumer much more quickly by going essentially direct from plant to store, or going from plant to cross-dock to store. The benefit of that is we obviously eliminate a lot of excess cost in the system and as we take that excess cost out, we are reinvesting some back in premium and we are delivering some to the bottom line.

第二是在 GES 這個領域——這是我們推動了好幾年的計畫，透過縮短供應鏈，讓產品更快送達客戶並最終到達消費者，基本上是從工廠直接到門市，或從工廠到轉運中心（cross-dock）再到門市。其好處是我們顯然能消除系統中大量的多餘成本；在拿掉這些多餘成本的同時，我們會把一部分再投回高端業務，另一部分則反映到最終利潤。

To use the baseball metaphor that you used earlier, we are really only in about the fourth or fifth inning on GES. GES has a number of years to run in effect. I think the GES impact on the financials are likely to be more profound in the future than they have in the past.

用你先前的棒球比喻來說，我們在 GES 上大概才進行到第四或第五局。GES 還會持續好幾年。我認為 GES 對財務表現的影響，未來很可能會比過去更為顯著。

And then the third element to this is this whole area of Smart Spending. Frito-Lay has absolutely taken the ball and run with Smart Spending as they always do, but we are really only right now exploding fourth out of what could potentially be about 30 categories in Smart Spending. So I think Smart Spending also offers us years of runway to deliver additional productivity.

第三個要素是「Smart Spending」這整個領域。Frito-Lay 一如既往地把 Smart Spending 做得非常到位、全力推進，但我們目前其實才剛在 Smart Spending 可能約30個類別中的第4個類別上大幅展開。因此我認為 Smart Spending 也將為我們提供多年跑道，以交付額外的生產力提升。

So if you put all of that together, premium plus GES plus Smart Spending and combine that with the fact that Frito-Lay's strong market position gives it the ability to scale things in ways that none of its competitors can, I think we have many years of margin improvement to come and frankly significant margin improvement to come in Frito.

所以把這些因素放在一起：高端（premium）加上 GES 加上 Smart Spending，再結合 Frito-Lay 強勢的市場地位，使其能以競爭對手無法做到的方式擴大規模，我認為我們未來還有很多年的利潤率改善空間，而且坦白說，Frito 的利潤率改善幅度會相當可觀。

I think we should add that the way we've executed Smart Spending, make sure that we create the breathing room, but reinvest back in capabilities to keep this virtuous circle going. That's what's important with our productivity programs.

我想我們也應該補充一點：我們執行 Smart Spending 的方式，是確保創造出喘息空間，同時再投資回能力建設，讓這個良性循環得以持續。這正是我們生產力計畫的重要之處。

Dara Mohsenian, Morgan Stanley.

摩根士丹利的 Dara Mohsenian。

So maybe building on that Frito-Lay margin commentary there, you've seen very strong SG&A leverage if you exclude the increases in A&M spending over the last couple of quarters here, Hugh. As we think about that going forward, is that sustainable going forward and what's driving that because it is different than what we've generally seen over the past few years?

那麼也許延續剛才對 Frito-Lay 利潤率的評論，Hugh，若排除過去幾季廣告與行銷（A&M）支出增加的影響，你們看到 SG&A 的槓桿效益非常強。展望未來，這樣的趨勢是否可持續？其驅動因素是什麼？因為這與我們過去幾年一般看到的情況不同。

Yes, happy to answer that, Dara. To me, number one, it is absolutely sustainable. We are able to continue to drive that. Why are we able to continue to drive it? We have invested significantly in streamlining our supply chains, and remember with PepsiCo the supply chain doesn't just have cost in cost of goods; there's also a significant piece of it in the selling systems, which fall into SG&A. That's primarily the DSD system. We've got lots of room to be more efficient on that. We are really very much in the early innings on that.

好的，很樂意回答，Dara。對我而言，第一，這絕對是可持續的，我們能持續推動。為什麼能持續推動？我們已在精簡供應鏈方面投入很多；而且要記得，對百事公司而言，供應鏈的成本不只體現在銷貨成本（cost of goods）裡，銷售系統中也有相當大的一部分成本，這些會落在 SG&A 裡，主要就是 DSD 系統。我們在那方面仍有很大的效率提升空間；我們其實還在非常早期的局數。

Number two, we do continue to streamline the organization, and number three, Smart Spending is having a significant impact on our SG&A spending. So put together the combination of making DSD more efficient, making the organization more efficient and leveraging Smart Spending, you are seeing improvements in the non-A&M portion of SG&A that are likely to continue to deliver for a number of years.

第二，我們也持續精簡組織；第三，Smart Spending 正對我們的 SG&A 支出產生顯著影響。因此，把 DSD 更有效率、組織更有效率，以及運用 Smart Spending 這三者結合起來，你會看到 SG&A 中非 A&M 的部分出現改善，而這些改善很可能在未來多年持續貢獻。

I want to add something to what Hugh said. You know, Dara, we spend a lot of effort, time, money on putting in an ERP system when we invested in SAP. And we started that way back in 2000 and we have been doing that for the last 10 or 15 years and putting in an ERP system takes time, takes money and now we are beginning to see some of the benefits from that ERP implementation. And as we complete a lot of those implementations, we are able to take out the costs from those implementations and start to realize the benefits. So it's streamline the supply chain, the organization, Smart Spending and now the increased leverage from the SAP investment.

我想補充 Hugh 所說的。你知道，Dara，我們在導入 ERP 系統、投資 SAP 上投入了大量的精力、時間與資金。我們早在2000年就開始，過去10到15年一直在做；導入 ERP 系統需要時間、需要資金，而現在我們開始看到這些 ERP 導入的一些效益。隨著我們完成許多導入工作，我們就能移除這些導入所帶來的成本，並開始實現效益。所以這包括精簡供應鏈、精簡組織、Smart Spending，以及現在 SAP 投資帶來的更高槓桿效益。

Ali Dibadj, Bernstein.

Ali Dibadj，Bernstein。

I have two questions. One is just trying to get a little bit of a better handle on your earnings guidance raise today. I know last quarter a lot of people were kind of thinking about it going up, but this quarter you raised it from 8% to 9%. The top line isn't any different; the productivity is roughly the same. Commodity looks the same, taxes look unchanged versus last guidance.

我有兩個問題。第一個是想更清楚了解你們今天上調獲利指引的原因。我知道上季很多人原本就覺得可能會上調，但這一季你們把它從 8% 提高到 9%。營收端沒有任何不同；生產力大致相同。大宗商品看起來也一樣，稅率相較於上次指引看起來也沒有變。

So you are assuming an acceleration of about 2 points for the back half of the year. Just trying to get a better sense of what gives you that confidence that it's going to go up to 10% for H2. It is clearly not macros. You knew the Q4 compare, so trying to get a sense there. That is question one.

所以你們等於是假設下半年會加速大約 2 個百分點。只是想更了解，是什麼讓你們有信心下半年會上升到 10%。這顯然不是總體環境。你們也知道第四季的比較基期，所以想請你們談談。這是第一個問題。

Question two, and, Indra, don't take this the wrong way at all; in fact, take it very positively, but there continues to be a real thoughtful set of questions from important investors about your future at Pepsi versus for example any future presidential administration. And these are real questions; people are really thinking about it. So can you in any way give us some help in clarifying your future interest between business and politics? You have done such an incredible job at Pepsi. People are really asking those selfish questions. So anyway you can help clarify that debate, whether you know it or not is out there, would be helpful. Thanks.

第二個問題，Indra，請不要誤會；其實請正面看待，但重要投資人一直對你在百事（Pepsi）未來的去向提出一系列非常深思熟慮的問題，例如你是否會在未來的總統政府中任職。這些都是真實的問題；大家真的在思考。所以你能否在某種程度上協助我們釐清，你未來在商業與政治之間的興趣取向？你在百事做得非常出色。大家確實在問那些比較自私的問題。無論你是否知道，這個討論確實存在；若你能協助澄清，會很有幫助。謝謝。

So Hugh, go ahead and answer the first question.

那 Hugh，你先回答第一個問題。

Yes, happy to, Ali. Thank you for the question. We always start the year with a perspective on the macros and on the world that tends to be conservative. When we give guidance, our intention is always to hit it and perhaps beat it. Now that we are halfway through the year, I think we have seen two things. One, the macros are operating in a consistent, steady way so there has not been a deterioration, which obviously is to our benefit relative to our expectations. And number two, we do see significant innovation launching in the back half of the year that we are quite optimistic about.

好的，Ali，我很樂意。謝謝你的問題。我們每年一開始對總體環境與世界局勢的看法通常都偏保守。當我們給出指引時，我們的意圖一向是達成它，並且可能超越它。現在我們已經走到年中，我想我們看到兩件事。第一，總體環境以一致、穩定的方式運作，並沒有惡化，這顯然相對於我們原先的預期對我們有利。第二，我們確實看到下半年將推出大量創新產品，我們對此相當樂觀。

Some of the things you've seen more recently that Indra mentioned, whether it is Mountain Dew Black Label, Aquafina Sparkling, 1893, the Simply line at Tostitos down at Frito or Quaker breakfast flats, which are doing terrifically well and in it coming out of Quaker as well.

一些你最近看到、Indra 也提到的項目，不論是 Mountain Dew Black Label、Aquafina Sparkling、1893、Frito 旗下 Tostitos 的 Simply 系列，或是桂格（Quaker）的早餐薄餅（breakfast flats），表現非常出色，而且也是由桂格推出的。

When you put together all of that innovation, it will have a disproportionate impact in the back half of the year, which is really our cause for optimism in the balance of the year. So that's the driver behind the raise at this point.

把所有這些創新加總起來，它們在下半年會產生不成比例的影響，這正是我們對今年剩餘期間保持樂觀的原因。因此，這就是目前上調指引背後的驅動因素。

Ali, on question number two, in the foreseeable future, the next several years, I see myself running PepsiCo.

Ali，關於第二個問題，在可預見的未來、接下來幾年，我會繼續經營百事可樂公司（PepsiCo）。

Mark Swartzberg, Stifel.

Mark Swartzberg，Stifel。

Two questions on Latin America, if I could, Indra or Hugh. One is in the quarter advertising and marketing in the region was up. I believe for the half it's flat or maybe even down a bit just by the omission of the reference to being up for the first half. So question one is do you intend for it to be up for the full year and then question two is if you take these two large markets of Brazil and Mexico, could you give us a bit of an update on your outlook for each of those two regions because, of course, the conditions and your performance there are quite diverged. I'm just looking for how you are looking at your future performance in those two markets?

如果可以的話，我有兩個關於拉丁美洲的問題，Indra 或 Hugh。第一個是，本季該地區的廣告與行銷支出（A&M）是增加的。我相信上半年是持平，或甚至可能略降，因為你們沒有再提到上半年增加。第一個問題是：你們是否打算讓全年 A&M 成長？第二個問題是：如果看巴西與墨西哥這兩個大型市場，你們能否分別更新一下對這兩個地區的展望？當然，那裡的環境與你們的表現差異很大。我想了解你們如何看待在這兩個市場的未來表現？

Yes, I will just talk about the second, then, Hugh, you can talk about the A&M issue. Brazil, all of us have read the news on Brazil. Brazil is going through a very difficult time politically and socially, so they have to work through their issues. Mexico is actually doing well. The strength of the dollar, the increased (inaudible) into Mexico are doing well. The country actually is one of the brightest stars in the whole Latin American economy. So we feel good about our business in Mexico.

好的，我先談第二個問題，然後 Hugh 你可以談 A&M 的議題。巴西方面，我們都看過巴西的新聞。巴西在政治與社會層面正經歷非常艱難的時期，所以他們必須把這些問題處理好。墨西哥其實表現不錯。美元走強、增加的（聽不清）流入墨西哥，表現良好。這個國家其實是整個拉丁美洲經濟中最亮眼的明星之一。所以我們對墨西哥的業務感覺良好。

Our teams are performing very well in Brazil in a very difficult environment and I think what we are focused on right now is stepped-up execution, making sure we have the right value equation and trying to gain share in a difficult environment and that's really what we are focused on right now. So a tale of two cities.

我們的團隊在巴西這樣艱困的環境中仍然表現得非常好。我認為我們目前聚焦的是加強執行力，確保我們有正確的價值方程式，並在艱難環境中努力提升市占；這就是我們現在的重點。所以這是兩個市場、兩種情境。

Happy to jump in on your question regarding A&M, Mark. We are actually up 80 basis points on A&M year-to-date, so happy to close the loop with you on how you are calculating the number that you came up with, but the number is actually up 80 basis points year-to-date. We're not going to get into A&M guidance for the full year, but given that we are up 80 basis points year-to-date, I'd certainly expect it to be up for the year and I think that's a reasonable expectation for you and all the investors to run with as well.

Mark，關於你提到的 A&M 問題，我很樂意補充說明。我們年初至今的 A&M 其實增加了 80 個基點，所以也很樂意跟你對一下你是怎麼計算出你剛才那個數字的；但實際上年初至今是增加 80 個基點。我們不會提供全年 A&M 的指引，不過既然年初至今增加了 80 個基點，我當然預期全年會是增加的，我認為這對你以及所有投資人來說都是合理的預期。

Judy Hong, Goldman Sachs.

Judy Hong，Goldman Sachs。

I have two questions. One is, obviously, you guys have been very disciplined on the capital allocation front and particularly on the M&A side and I know that your business is obviously performing pretty well right now, but how you are assessing that as it relates to maybe even volatile macroenvironment, change in consumer environment and given some of the robust multiples that some of these assets are getting fetched for, do you have any views on looking at divesting some of your assets in this kind of environment?

我有兩個問題。第一個是，很明顯你們在資本配置方面一直非常自律，尤其是在併購（M&A）方面。我知道你們目前的業務表現相當不錯，但在可能更波動的總體環境、消費者環境變化之下，再加上某些資產的估值倍數相當高，你們如何評估這些因素？在這樣的環境下，你們對於出售（divest）部分資產是否有任何看法？

And then completely unrelated, so you are bringing back Diet Pepsi with aspartame, so just wanted to get your perspective on lessons learned and then as you think about your diet portfolio, the risk of maybe fragmenting the portfolio even further with different kind of offerings and how you manage that.

第二個問題完全不相關：你們要把含阿斯巴甜（aspartame）的健怡百事（Diet Pepsi）帶回來，所以想請教你們從中學到的教訓。以及當你們思考健怡產品組合時，是否會有進一步用不同產品選項把組合切得更碎的風險，你們又如何管理？

I am going to talk about the second one and I can also talk about the first, but I would like Hugh to talk about this because Hugh is my right hand and left hand when it comes to disciplined capital allocation and so I'd like Hugh to talk about that.

我會談第二個問題；第一個我也可以談，但我希望 Hugh 來談，因為在自律的資本配置方面，Hugh 是我的右手也是左手，所以我想請 Hugh 來回答。

Let me talk about Diet Pepsi, Judy. You know what's interesting? If you go and poll consumers today and read all the social media reports, there's still trepidation about aspartame. There's no scientific reason for that, but people are somehow worried about aspartame and when we launched Diet Pepsi aspartame-free, it's because there was a huge consumer need for that product.

Judy，我先談健怡百事。你知道有趣的是？如果你今天去做消費者民調、或閱讀所有社群媒體的報導，大家對阿斯巴甜仍然有疑慮。科學上沒有理由如此，但人們不知為何就是擔心阿斯巴甜。我們推出不含阿斯巴甜的健怡百事，是因為消費者對那個產品有很大的需求。

What we did not anticipate is that there's a group of consumers that absolutely loved the original Diet Pepsi and in the cola category in particular, because it's been optimized over years, people get incredibly fastidious about their products and don't want to have any changes.

我們沒有預期到的是，有一群消費者非常喜愛原本的健怡百事，尤其在可樂品類，因為配方多年來已經被最佳化，人們對自己的產品會變得非常挑剔，不希望有任何改變。

So rather than remove the aspartame-free, which is still loved by a lot of people -- in fact, I'll tell you when we announced that we were bringing back the old Diet Pepsi, the few people that thought aspartame-free was going away wrote me some pretty tough emails. So there is a very loyal group that is thrilled that we have an aspartame-free following. So we brought back the original Diet Pepsi in addition to keeping the aspartame-free product so we could serve all consumers the products that they love. I think that's going to be a net positive for us.

所以我們不是把不含阿斯巴甜的版本拿掉——它仍然被很多人喜愛。事實上，我告訴你，當我們宣布要把舊版健怡百事帶回來時，那些以為不含阿斯巴甜版本要被取消的人，寫了幾封相當嚴厲的電子郵件給我。所以確實有一群非常忠誠的消費者，很高興我們提供不含阿斯巴甜的選擇。因此，我們在保留不含阿斯巴甜產品的同時，也把原本的健怡百事帶回來，讓所有消費者都能買到他們喜愛的產品。我認為這對我們會是淨正面影響。

Now let me just say the marketplace is fragmenting. Forget Pepsi or Diet Pepsi or the cola category. Any new category that is expanding is becoming more niche, more fragmented and that's why it was important for us to own the distribution system because once you have control of the distribution system, you can pump a lot of niche products through it. All our craft products, all of those are low-volume products. So we have to learn how to handle complexity, not walk away from it. So Hugh, talk about the capital allocation in the portfolio.

現在我只想說，市場正在分化。別再只看百事可樂或健怡百事或可樂這個品類。任何正在擴張的新類別都變得更利基、更分散，這也是為什麼我們必須擁有配送系統很重要，因為一旦你掌控了配送系統，就能透過它推動大量利基產品。我們所有的精釀產品，這些都是低銷量產品。所以我們必須學會如何處理複雜性，而不是逃避它。所以，Hugh，談談投資組合中的資本配置。

Sure, happy to, Judy. Let me just start with a bit of historical perspective on this because obviously there's lots of activity in terms of people trying to reshape their portfolios right now. Again, as a reminder, we have about a little over a quarter of our portfolio in nutrition and if you add in the better-for-you products, it's really -- it gets upwards to almost half of our portfolio in terms of the balance that we have right now.

當然，Judy，很樂意。先從一點歷史觀點談起，因為顯然目前有很多人正試圖重塑他們的投資組合，活動非常多。再提醒一下，我們的投資組合中大約略高於四分之一是在營養領域；如果再加上更健康（better-for-you）的產品，以我們目前的組合平衡來看，比例其實接近一半。

We are also, from a developing and emerging markets perspective, about a third exposed to developing and emerging markets. All of that is a result of transactions that we've executed really over the last decade or even more. Whether it's Quaker, Gatorade, Tropicana, Naked Juice, Wimm-Bill-Dann, Izze, we've executed a variety of transactions over the last 10 plus years in order to get the portfolio into a place where it could consistently deliver performance.

另外，從已開發與新興市場的角度來看，我們約有三分之一曝險於開發中與新興市場。這些都是我們在過去十年甚至更久所執行交易的結果。不論是桂格（Quaker）、佳得樂（Gatorade）、純果樂（Tropicana）、Naked Juice、Wimm-Bill-Dann、Izze，我們在過去10多年執行了各式各樣的交易，目的是把投資組合調整到能夠持續交出績效的狀態。

Frankly that's what you've seen is this portfolio now, regardless of economic cycle, regardless of consumer sentiment, regardless of consumer trends and shifts, seems to be capable and has been capable of delivering good strong performance throughout all of those shifts.

坦白說，你們看到的就是這個投資組合如今不論經濟循環如何、不論消費者情緒如何、不論消費者趨勢與轉變如何，似乎都能夠、而且也一直能夠在所有這些變化中交出良好且強勁的表現。

As we look at things going forward, what we've said is we intend to spend something on the order of $500 million a year in tuck-in acquisitions. As those good opportunities emerge, we look at them and we look at them through two lenses. One is a strategic lens around does it make sense relative to where we think the consumer is going and second is obviously a financial lens, is this good for our shareholders. And you can count on us to continue to do that because we think that's the right way to think about M&A on a go-forward basis.

展望未來，我們說過我們打算每年投入約5億美元進行補強型（tuck-in）併購。當好的機會出現時，我們會從兩個角度來看：第一是策略面，這是否符合我們對消費者走向的判斷；第二當然是財務面，這是否對股東有利。你們可以相信我們會持續這麼做，因為我們認為這是未來思考併購（M&A）的正確方式。

I will also tell you that we look at everything. We've looked at everything that has transacted and probably every company that hasn't transacted and if something transacts and we are not a part of it, you can very reasonably assume it's because we didn't want to be.

我也要告訴各位，我們什麼都看。我們看過所有已成交的案子，也可能看過每一家尚未成交的公司；如果某個案子成交了而我們沒有參與，你們完全可以合理地推斷：那是因為我們不想參與。

So the result of that is we feel like we are operating from a position of strength. We feel like we are in a position right now where we will continue to look at things. We will do things if they make sense, but the guidance that we've given right now is the guidance that makes sense and that's the way we are thinking about it going forward.

因此，我們覺得自己是在強勢位置上運作。我們覺得目前我們會持續看各種機會；如果合理我們就會做，但我們現在給出的指引就是合理的指引，而這也是我們未來的思考方式。

Some investors talk about the notion of sell when everyone is buying and buy when everyone is selling. We tend to be good stewards of capital and we follow that maxim fairly closely.

有些投資人談到「大家都在買時賣出、大家都在賣時買進」這個概念。我們一向是資本的良好管理者，也相當貼近地遵循這個準則。

Caroline Levy, CLSA.

Caroline Levy，CLSA。

Actually just to follow up on what you said, Hugh, for clarification. I guess Judy's question had been around a willingness to sell anything and I think you said that when prices are high, you are a potential seller. Is that right?

其實我只是想針對你剛才說的再追問一下，Hugh，做個釐清。我想Judy的問題是關於是否願意出售任何資產，而我理解你說的是當價格很高時，你們可能會成為賣方。是這樣嗎？

Only if it makes sense to the portfolio, Judy -- or Caroline, I'm sorry. Only if it makes sense to the portfolio.

只有在對投資組合有意義的情況下，Judy——或Caroline，抱歉。只有在對投資組合有意義的情況下。

Okay. So then my question was around Diet Pepsi and the Pepsi franchise overall because, Indra, you gave this stunning number that you drive more growth for retailers than the next five companies, large companies combined. In the case of Pepsi and Diet Pepsi, that has not been the case from what I can see, so how do you maintain your shelf space, how do you think about strategically moving those in a different direction? Is it through fragmentation or is there something else you need to do because that seems to be one area where you are really losing share?

好。那我的問題是關於健怡百事以及整體百事品牌系列，因為Indra，你給了一個驚人的數字，說你們為零售商帶來的成長比接下來五家大型公司加總還多。但就百事與健怡百事而言，從我看到的情況並非如此；那你們如何維持貨架空間？你們如何從策略上思考把它們導向不同方向？是透過分化（fragmentation）嗎？還是你們需要做其他事情？因為那似乎是你們確實正在流失市占的一個領域。

I think, Caroline, and we talked about it in the Q1 earnings call. It is critically important that all of you change your frame of reference on the beverage market from cola to CSDs to LRB. 30 years ago, it was colas; 25 years ago, it was CSDs; 15 years ago, it was CSDs. It has been LRB for the last decade or so. And I think the sooner we can shift our frame of reference, the better it is because just beating a category that isn't secular decline, just beating that all the time is not a game to play, that's not a game that's going to guarantee good results.

我想，Caroline，我們在第一季財報電話會議上也談過。非常重要的是，你們所有人都要把對飲料市場的參考框架，從可樂（cola）轉到碳酸軟性飲料（CSDs）再到即飲飲料（LRB）。30年前是可樂；25年前是CSDs；15年前仍是CSDs。過去大約十年左右一直是LRB。我認為我們越快轉換參考框架越好，因為一直去打敗一個正在結構性下滑的品類，永遠只是在那裡打，這不是一個值得玩的遊戲，也不是能保證好結果的遊戲。

If we play this rich LRB game, multi-category, placing the bets where the growth is and where the consumer is going, I think we are better off. So my request to you and all of you who are tracking the Company in this category expand your aperture. LRB is the game to play, that's the game we are playing and we watch LRB share very, very carefully. That's the right strategy for any company.

如果我們玩的是這個豐富的LRB遊戲、跨多品類，把賭注下在成長所在以及消費者走向所在，我認為我們會更有利。所以我對你以及所有追蹤公司在此類別的人提出的請求是：擴大視野。LRB才是要玩的遊戲，這也是我們正在玩的遊戲；我們非常、非常仔細地看LRB市占。對任何公司而言，這都是正確的策略。

Rob Ottenstein, Evercore.

Rob Ottenstein，Evercore。

Could you give us a little bit more sense on the North American beverage business? It looks like you've got about 2% price mix. Can you give us a little sense about how much of that is headline pricing, how much is channel mix, category mix just so we have a better idea of what's going on there?

你能否讓我們更了解一些北美飲料業務？看起來你們大約有2%的價格/組合（price mix）。你能否說明其中有多少是表面上的定價（headline pricing），有多少是通路組合、品類組合，讓我們更清楚那邊到底發生了什麼？

Yes, a couple of things on that, Rob. This is Hugh. Number one, there was more pricing in CSDs than there was in non-carbs; not a surprise on that. Number two, about half and half split between rate and mix; so very comfortable from that perspective. Obviously our single strategy has been working particularly well and it's getting us what we think is sustainable mix [risk] benefit with lots of runway left to go on it. So really the pricing environment right now is very good, it's very healthy. We feel terrific about where pricing is in North America.

可以，Rob，這裡有幾點。Hugh回答。第一，CSDs的定價幅度高於非碳酸飲料；這不令人意外。第二，大約是一半一半分別來自價格（rate）與組合（mix）；所以從這個角度我們很放心。顯然我們的單一策略（single strategy）運作得特別好，並且為我們帶來我們認為可持續的組合[風險]效益，而且還有很長的跑道可以繼續推進。所以目前的定價環境非常好、非常健康。我們對北美的定價狀況感到非常滿意。

So thank you all for your questions and in closing, I just want to say to you that we are pleased with our results for the first half of the year. We believe we have the plans in place to deliver our targets for 2016. We appreciate the trust you have placed in us with your investment. We are absolutely committed to increasing the value of your investment. Thank you.

所以謝謝各位的提問。最後我只想說，我們對上半年業績感到滿意。我們相信我們已經有計畫來達成2016年的目標。我們感謝各位以投資對我們的信任。我們絕對致力於提升各位投資的價值。謝謝。

Thank you. That does conclude today's PepsiCo's second-quarter 2016 earnings conference call. You may now disconnect.

謝謝。今天百事公司（PepsiCo）2016年第二季財報電話會議到此結束。各位現在可以掛線。