百事 (PEP) 2016 Q3 法說會逐字稿

Good morning and welcome to PepsiCo's third-quarter 2016 earnings conference call. Your lines have been placed on listen-only until the question-and-answer session. (Operator Instructions). Today's call is being recorded and will be archived at www.PepsiCo.com.

早安，歡迎參加百事公司（PepsiCo）2016 年第三季財報電話會議。在問答環節開始前，您的線路將維持僅收聽模式。（接線員指示）。今天的電話會議將被錄音，並將存檔於 www.PepsiCo.com。

It is now my pleasure to introduce Mr. Jamie Caulfield, Senior Vice President of Investor Relations. Mr. Caulfield, you may begin.

現在我很榮幸介紹投資人關係資深副總裁 Jamie Caulfield 先生。Caulfield 先生，您可以開始了。

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 third-quarter 2016 performance and full-year outlook and then we will move on to Q&A. We have 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 年第三季的表現與全年展望，接著進入問答。今天早上的發言我們會保持精簡，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 predicted. 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.

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之 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，可能導致實際結果與預測存在重大差異。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）提交之定期報告中的警示性聲明與其他資訊一併考量。

References to organic revenue results exclude the impact of acquisitions and divestitures, structural changes, foreign exchange translation and for the full-year 2016, the impact of the 53rd week. To find disclosures and reconciliations of non-GAAP measures that we use when discussing our 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 tab.

有關有機營收（organic revenue）之結果，已排除併購與處分、結構性變動、外匯換算影響，以及就 2016 全年而言，第 53 週的影響。如欲查閱我們在討論財務結果時所使用之非 GAAP 指標的揭露與調節表，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」分頁下的相關資料。

As we discuss today's results, please keep in mind that our third-quarter comprises the 12 weeks ended September 3 for our North American operations and the three months of June through August for most of our operations outside North America.

在討論今日結果時，請記得我們的第三季期間：北美業務為截至 9 月 3 日止的 12 週；北美以外多數業務則為 6 月至 8 月的三個月。

Now it is my pleasure to introduce Indra Nooyi.

現在我很榮幸介紹 Indra Nooyi。

Thank you, Jamie. I am pleased to report our businesses continued to perform well in the third quarter. Specifically we had more than 3% organic volume growth in Global Snacks and more than 2% organic volume growth in Global Beverages. While foreign exchange translation continued to pressure our reported revenue results, we delivered more than 4% organic revenue growth which represents an acceleration from the first half.

謝謝你，Jamie。我很高興報告，我們的業務在第三季持續表現良好。具體而言，全球零食（Global Snacks）有機銷量成長超過 3%，全球飲料（Global Beverages）有機銷量成長超過 2%。雖然外匯換算持續對我們的報告營收造成壓力，但我們仍實現超過 4% 的有機營收成長，較上半年有所加速。

We generated positive net price realization in total, we stepped up investment in our brands with A&M up 65 basis points as a percentage of net revenue and made incremental market place investments. We expanded gross and operating margins. We grew core constant currency operating profit 2% and up 6% excluding the impact of deconsolidating Venezuela. And core constant currency EPS grew 7% and up 11% excluding the Venezuela impact.

我們整體實現正向的淨價格實現（net price realization）；我們加大對品牌的投資，A&M（廣告與行銷）占淨營收比重提高 65 個基點，並增加了額外的市場投資。我們擴大了毛利率與營業利益率。核心固定匯率營業利益成長 2%，若排除委內瑞拉去合併（deconsolidating Venezuela）的影響則成長 6%。核心固定匯率每股盈餘（EPS）成長 7%，若排除委內瑞拉影響則成長 11%。

Our performance was well-balanced by market type. Our developing and emerging market businesses grew organic revenue 8% for the quarter with double-digit organic revenue growth in a number of markets including China, Mexico, Brazil and Egypt. Our developed markets grew organic revenue 3% led by Frito-Lay North America and North American beverages.

我們的表現按市場類型而言相當均衡。本季我們的開發中與新興市場業務有機營收成長 8%，多個市場（包括中國、墨西哥、巴西與埃及）達到雙位數有機營收成長。已開發市場有機營收成長 3%，主要由北美菲多利（Frito-Lay North America）與北美飲料業務帶動。

Year-to-date, our results are equally strong. Core constant currency operating profit grew 5% and up 8% excluding the impact of deconsolidating Venezuela. Core constant currency EPS grew 7% and up 11% excluding the Venezuela impact.

年初至今，我們的結果同樣強勁。核心固定匯率營業利益成長 5%，若排除委內瑞拉去合併的影響則成長 8%。核心固定匯率每股盈餘成長 7%，若排除委內瑞拉影響則成長 11%。

On the strength of our year-to-date results and our outlook for the fourth quarter, we have increased our full-year core EPS target to $4.78 from our previous target of $4.71 driven by the expectations and factors set out in this morning's press release.

基於年初至今的強勁表現以及我們對第四季的展望，我們將全年核心 EPS 目標由先前的 4.71 美元上調至 4.78 美元，驅動因素與預期已於今早新聞稿中說明。

In addition to our financial results, we are also delivering on other key performance metrics. Innovation ran at approximately 9% of net revenue in the quarter. Advertising and marketing is up another 60 basis points as a percent of net revenue year to date and execution metrics are improving across the board driving growth for us and our retail partners.

除財務結果外，我們也在其他關鍵績效指標上持續交付成果。本季創新產品約占淨營收的 9%。年初至今，廣告與行銷占淨營收比重再提高 60 個基點，且各項執行指標全面改善，帶動我們與零售夥伴的成長。

For example, the third quarter in the US which is our largest market, we were once again the largest contributor to retail food and beverage sales growth. We generated approximately 37% of all food and beverage retail sales growth, significantly higher than our food and beverage dollar share position of less than 10%. We generated more retail sales growth than all other $5 billion plus food and beverage manufacturers combined.

例如，在我們最大的市場美國，第三季我們再次成為零售食品與飲料銷售成長的最大貢獻者。我們貢獻了約 37% 的食品與飲料零售銷售成長，顯著高於我們不到 10% 的食品與飲料金額市占（dollar share）地位。我們帶來的零售銷售成長，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。

We are on track to deliver $1 billion in productivity savings in 2016 and we are on track to deliver $7 billion in free cash flow excluding certain items.

我們正按計畫在 2016 年實現 10 億美元的生產力節省，並正按計畫在排除特定項目後實現 70 億美元的自由現金流。

Our results reflect our commitment to Performance with Purpose, PepsiCo's vision to deliver top-tier financial performance over the long-term by integrating sustainability into our business strategy. When we launched Performance with Purpose in 2006, we opted not to view sustainability simply through the lens of corporate social responsibility. Instead, we charted a course rooted in the firm belief that in order to meet the changing needs of our consumers, exercise responsible stewardship for the environment and create an environment within our Company where each employee feels valued and can bring their whole selves to work, we had to transform the way we do business weaving sustainability into the way we make money.

我們的結果反映了我們對「以使命驅動績效」（Performance with Purpose）的承諾；這是百事公司的願景：透過將永續發展融入商業策略，在長期交付一流的財務表現。當我們在 2006 年推出「以使命驅動績效」時，我們選擇不僅以企業社會責任的角度來看待永續。相反地，我們基於一項堅定信念而規劃路徑：為了滿足消費者不斷變化的需求、對環境進行負責任的管理，並在公司內部打造一個讓每位員工都感到被重視、能以完整自我投入工作的環境，我們必須改變經營方式，把永續編織進我們創造收益的方式之中。

A decade into our journey, that belief is being validated and is propelling our Company forward as this quarter's financial results demonstrate.

在這段旅程走過十年之際，這項信念正獲得驗證，並如本季財務結果所示，推動公司持續向前。

On the purpose side of Performance with Purpose, our first commitment was human sustainability, transforming our product portfolio with a particular focus on reducing sodium, saturated fats and added sugars while dialing up our nutrition investments and we are pleased with the progress we have made. As compared to 2006, we have reduced the average sodium in our food products by 11% per serving and removed more than 2300 metric tons of sodium from key global food brands in key countries.

在「以使命驅動績效」的使命面向，我們的第一項承諾是人類永續（human sustainability）：轉型我們的產品組合，特別聚焦於降低鈉、飽和脂肪與添加糖，同時加大營養投資；我們對已取得的進展感到欣慰。相較於 2006 年，我們已將食品產品每份的平均鈉含量降低 11%，並在關鍵國家的關鍵全球食品品牌中移除了超過 2,300 公噸的鈉。

We have reduce the average amount of saturated fat per serving by more than 15% in key global brands in a number of our major markets including the United States, United Kingdom, China and Turkey. We are making strides to reduce added sugars in our beverages through reformulation.

在多個主要市場（包括美國、英國、中國與土耳其），我們已將關鍵全球品牌每份的平均飽和脂肪含量降低超過 15%。我們也正透過配方改良（reformulation）在飲料中降低添加糖，並取得進展。

Our transformation efforts to date have resulted in a portfolio where we drive approximately 45% of our net revenue from products that we refer to as guilt free. Those products include diet and other beverages that are below 70 calories per 12 ounces and snacks with low levels of sodium and saturated fat. And a full 27 points of the 45 points is made up of what we refer to as every day nutrition which are products with positive nutrients like grains, fruits and vegetables, protein, unsweetened tea and water.

截至目前，我們的轉型努力已使產品組合中約 45% 的淨營收來自我們稱為「無負擔」（guilt free）的產品。這些產品包括每 12 盎司低於 70 卡路里的無糖／低熱量等飲料，以及低鈉、低飽和脂肪的零食。而在這 45 個百分點中，有足足 27 個百分點來自我們所稱的「每日營養」（every day nutrition）產品，也就是含有正向營養素的產品，例如穀物、水果與蔬菜、蛋白質、無糖茶與水。

Our innovation focus reflects our commitment to portfolio transformation. Just to give you a few examples, recently we launched Quaker Super Goodness porridge sachets in the UK made with whole-grain oats, quinoa, barley and flax seed; introduced Carrot Pineapple Mango Tropicana Farm Stand in the US made with 100% fruit and vegetable juices and no added sugar.

我們對創新的重點，反映了我們對投資組合轉型的承諾。舉幾個例子，近期我們在英國推出了 Quaker Super Goodness 燕麥粥即食包，採用全穀燕麥、藜麥、大麥與亞麻籽製成；並在美國推出 Carrot Pineapple Mango Tropicana Farm Stand，使用 100% 果蔬汁且不添加糖。

Sabra built up the strength of our highly popular hummus and established a range of authentic products that include guacamole, salsa, baba ghanoush, and Greek yogurts dips and spreads. Sabra now generates approximately $800 million in estimated annual retail sales in the United States well on its way to becoming a $1 billion brand.

Sabra 強化了我們極受歡迎的鷹嘴豆泥（hummus）品類實力，並建立了一系列道地產品，包括酪梨醬（guacamole）、莎莎醬（salsa）、茄子泥（baba ghanoush），以及希臘優格蘸醬與抹醬。Sabra 目前在美國的估計年度零售銷售額約為 8 億美元，正穩步邁向成為 10 億美元品牌。

Our Naked superpremium fruit and vegetable juices and coconut waters are loved by consumers for their great flavor, all-natural ingredients and no added sugars or preservatives. We have doubled Naked's net revenue over the last six years and grown estimated annual retail sales to over $1 billion. We recently extended the Naked lineup with the introduction of Naked cold pressed juices.

我們的 Naked 超高端果蔬汁與椰子水，因其絕佳風味、全天然成分，以及不添加糖或防腐劑而深受消費者喜愛。過去六年，我們已將 Naked 的淨營收翻倍，並將估計年度零售銷售額提升至超過 10 億美元。我們近期也透過推出 Naked 冷壓果汁，擴充了 Naked 產品陣容。

Propel Water by the makers of Gatorade, a zero calorie sports hydration beverage enriched with the electrolytes and minerals is enjoying renewed success in North America with year-to-date volume up 6%.

由 Gatorade 團隊推出的 Propel Water，是一款零卡路里的運動補水飲料，富含電解質與礦物質；在北美市場再度展現成功，今年迄今銷量成長 6%。

We have also successfully expanded what we refer to as our guilt free product lineup. Pure Leaf Tea is an example, a premium line of ready-to-drink teas brewed and steeped simply and authentically from leaves picked at their freshest. Since this launch in 2012, Pure Leaf has grown to more than $650 million in estimated annual retail sales. We are now elevating Pure Leaf into a superpremium line under the Tea House collection.

我們也成功擴展了我們所稱的「無負擔」產品陣容。Pure Leaf Tea 就是一個例子，這是一條高端即飲茶產品線，採用最新鮮採摘的茶葉，以簡單且道地的方式沖泡與浸泡而成。自 2012 年推出以來，Pure Leaf 的估計年度零售銷售額已成長至超過 6.5 億美元。我們目前正將 Pure Leaf 提升為 Tea House 系列旗下的超高端產品線。

Our Baked lineup is another example of how we are transforming our portfolio. Spurred by the success of Baked Lays, we have broadened our Baked lineup to include Baked Doritos, Baked Tostitos and Baked Cheetos and have expanded the lineup to nine international markets where there is a lot of opportunity for further growth and market expansion.

我們的 Baked 產品陣容，是我們轉型投資組合的另一個例子。在 Baked Lays 成功的帶動下，我們已將 Baked 產品線擴展至 Baked Doritos、Baked Tostitos 與 Baked Cheetos，並已進入九個海外市場；這些市場仍有大量進一步成長與市場擴張的機會。

We recently launched Stubborn Soda, a new generation of premium crafted sparkling beverage that is just 90 to 100 calories per 12 ounces and is made with fair trade certified cane sugar and Stevia with no high fructose corn syrup.

我們近期推出了 Stubborn Soda，這是一種新世代的高端手工氣泡飲品，每 12 盎司僅 90 至 100 卡路里，使用公平貿易認證蔗糖與甜菊糖（Stevia）製成，且不含高果糖玉米糖漿。

So it is the breadth of our evolving product portfolio and our ability to innovate against it that enables us to generate consistent organic revenue growth.

因此，正是我們不斷演進的產品組合之廣度，以及我們圍繞該組合進行創新的能力，使我們得以持續創造穩健的有機營收成長。

Likewise under Performance with Purpose, our environmental sustainability agendas had positive impacts both on our business results and more broadly on the planet we share. By using fewer resources, water, packaging and energy, we are simultaneously shrinking our environmental footprint and reducing our operating costs. We have improved our water stewardship by adopting new technologies and processes which have steadily reduced our water use by unit of production and we have implemented integrated watership management in water stressed and water scarce areas.

同樣地，在「以使命促績效」（Performance with Purpose）之下，我們的環境永續議程不僅對業務成果，也更廣泛地對我們共同的地球帶來正面影響。透過使用更少的資源——水、包材與能源——我們同時縮小環境足跡並降低營運成本。我們透過採用新技術與流程，持續降低每單位產量的用水量，並在缺水與水資源稀缺地區導入整合式水資源管理。

As a result, today we are using approximately 25% less water per unit of production than we did when we embarked on Performance with Purpose.

因此，與我們啟動「以使命促績效」之初相比，如今我們每單位產量的用水量約減少了 25%。

In addition, we have supported growers in our value chain in their pursuits of better water use management and through the PepsiCo Foundation, we have successfully partnered to provide access to safe water for more than nine million people globally.

此外，我們也支持價值鏈中的種植者追求更佳的用水管理；並透過百事公司基金會（PepsiCo Foundation），成功與夥伴合作，為全球超過九百萬人提供安全用水的取得。

We are also using less packaging and generating less landfill waste. We have successfully reduced packaging weight and size and increased post-consumer recycled content in our packaging. By reducing packaging weight and size, we have removed almost 100 million pounds of packaging materials from the market in 2015 alone.

我們也在使用更少包裝並減少掩埋廢棄物。我們已成功降低包裝重量與尺寸，並提高包裝中消費後回收材料（post-consumer recycled content）的比例。僅在 2015 年，透過降低包裝重量與尺寸，我們就從市場中減少了近 1 億磅的包裝材料。

We have worked to increase the recycling rates of beverage containers among consumers and we have significantly reduced the amount of solid waste generated by our operations at the central landfills, achieving a rate of over 90% solid waste diversion away from landfills in 2015. And we have reduced greenhouse gas emissions by focusing on energy use and renewable energy and by modernizing our fleet with more fuel efficient vehicles, routing and capacity utilization. In fact compared to 2006, we have improved the energy efficiency of our legacy operations by 18%.

我們致力於提升消費者對飲料容器的回收率，並大幅降低我們營運在集中掩埋場產生的固體廢棄物；2015 年我們達成超過 90% 的固體廢棄物轉移率（避免進入掩埋場）。我們也透過聚焦能源使用與再生能源，以及以更省油的車輛、路線規劃與載運效率來現代化車隊，降低溫室氣體排放。事實上，與 2006 年相比，我們已將既有營運的能源效率提升了 18%。

Taken together, our environmental sustainability initiatives have not only had a significant positive impact on our planet but they have also contributed to our productivity savings. Over the past five years, our sustainability initiatives have generated more than $600 million in savings because we are simply using fewer resources in our businesses.

綜合而言，我們的環境永續倡議不僅對地球帶來顯著正面影響，也促進了我們的生產力節省。過去五年，我們的永續倡議已創造超過 6 億美元的節省，原因很簡單：我們在業務中使用了更少的資源。

Combining our environmental sustainability savings with those of our other productivity initiatives, we are generating more than $1 billion in annual productivity savings. These savings are both providing fuel for reinvestment in the business and contributing to consistent margin improvement.

將環境永續節省與其他生產力倡議的節省合併計算，我們每年創造超過 10 億美元的生產力節省。這些節省一方面為再投資業務提供動能，另一方面也促成利潤率的持續改善。

We continue to invest in and promote initiatives to protect and support the safety, health, professional development and human rights for our global workforce. This includes promoting women's equal advancement and fostering a diverse and engaging culture that attracts the talent base needed to grow our high-performing business.

我們持續投資並推動各項倡議，以保護並支持全球員工的安全、健康、專業發展與人權。這包括促進女性平等晉升，並培育多元且具吸引力的文化，以吸引推動我們高績效業務成長所需的人才。

We view our sustained top tier results as a validation of our Performance with Purpose direction where we are balancing short-term results while ensuring PepsiCo remains successful for the long-term.

我們將持續維持頂尖水準的成果，視為對「以使命促績效」方向的驗證——我們在兼顧短期成果的同時，也確保百事公司能在長期持續成功。

In the coming weeks, we will issue our annual sustainability report where we will share with you in much more detail our progress and accomplishments under Performance with Purpose. Just as important, we will lay out our sustainability vision and goals for the coming decade and our pledge to make our products more nutritious, our food system more sustainable and our communities more prosperous. In doing so, we will pave the way for PepsiCo's continued growth.

在接下來幾週，我們將發布年度永續報告，並更詳細地與各位分享我們在「以使命促績效」之下的進展與成果。同樣重要的是，我們將提出未來十年的永續願景與目標，並承諾讓我們的產品更具營養、讓食品系統更永續、讓社區更繁榮。藉此，我們將為百事公司的持續成長鋪路。

So with that, let me turn it over to Hugh Johnston. Hugh?

那麼，接下來我把時間交給 Hugh Johnston。Hugh？

Thank you, Indra, and good morning, everyone. As Indra mentioned, we are very pleased with our year-to-date performance. We are seeing a good mix of revenue and productivity within the P&L, driving the topline and margin results mentioned earlier and we continue to exercise strong cash flow management and capital allocation discipline.

謝謝你，Indra，各位早安。如 Indra 所提到的，我們對今年迄今的表現感到非常滿意。我們在損益表（P&L）中看到營收與生產力的良好組合，推動先前提到的營收端與利潤率成果；同時我們也持續展現強勁的現金流管理與資本配置紀律。

As a result, in the third quarter, we once again shortened our cash conversion cycle in this case by almost 10 days compared to Q3 of 2015 and we maintained our net capital spending on a rolling four-quarter basis well within our target of 5% of net revenue.

因此，在第三季，我們再次縮短了現金轉換週期——相較 2015 年第三季，本次縮短了將近 10 天——並在滾動四季基礎上，將淨資本支出維持在遠低於我們「淨營收 5%」目標的範圍內。

I'm also pleased to report that we remain on track to return approximately $7 billion to shareholders in 2016 through a combination of $3 billion in share repurchases and $4 billion of dividends. During Q3 with the June payment, we increased our annualized dividends per share by 7% which marks our 44th consecutive annualized increase.

我也很高興報告，我們仍按計畫在 2016 年透過 30 億美元的庫藏股回購與 40 億美元的股利發放合計，向股東回饋約 70 億美元。在第三季，隨著 6 月的股利支付，我們將每股年化股利提高 7%，這也標誌著我們連續第 44 年提高年化股利。

Looking to the balance of year as we mentioned, we increased our full-year core EPS target to $4.78 which incorporates the following: underlying core constant currency EPS growth of 10% excluding the impact of Venezuela; an approximate 2 percentage point negative impact from the 2015 Venezuela deconsolidation, and an approximate 3 percentage point negative impact from foreign exchange translation based on current market consensus which is an improvement of approximately 1 percentage point versus our July update.

展望今年剩餘期間，如我們所提到的，我們將全年核心每股盈餘（core EPS）目標上調至 4.78 美元，其中包含以下因素：在排除委內瑞拉影響後，核心固定匯率（constant currency）EPS 的基礎成長為 10%；2015 年委內瑞拉去合併（deconsolidation）帶來約 2 個百分點的負面影響；以及依據目前市場共識、由外匯換算（foreign exchange translation）造成約 3 個百分點的負面影響——相較我們 7 月更新時，改善約 1 個百分點。

Our outlook on the other metrics we provide remain unchanged from July and are set out in this morning's release.

我們對於我們所提供之其他指標的展望，自7月以來維持不變，並已載於今早發布的公告中。

For the analysts on the call as you update your Q4 models, you should consider the following factors, the inclusion of the 53rd week in this fiscal year will benefit our full-year revenue results by approximately 1 percentage point but is not expected to result in any impact to our core earnings per share as we intend to reinvest the benefit back into our business. Our Q4 foreign exchange outlook implies a moderation of the headwind as compared to what we have experienced year to date but this assumption is obviously subject to macro and geopolitical conditions which remain quite volatile.

針對電話會議上的分析師，當你們更新第四季模型時，應考量以下因素：本會計年度納入第53週，將使我們全年營收結果約受益1個百分點，但預期不會對我們的核心每股盈餘造成任何影響，因為我們打算把這項受益再投資回到業務中。我們對第四季外匯的展望顯示，相較於今年迄今所經歷的逆風將有所緩和，但此一假設顯然仍取決於總體與地緣政治情勢，而目前仍相當動盪。

Given the timing of our commodity hedges, we face a difficult year-over-year gross margin expansion comparison in Q4. While we are lapping a large increase in A&M spending as a percentage of net revenue in the quarter, we expect to continue to invest in A&M. And finally, while our full-year tax rate guidance remains unchanged, we will be lapping an unusually low core effective tax rate from Q4 2015.

鑑於我們商品避險的時點，我們在第四季面臨一個艱難的年對年毛利率擴張比較基期。雖然本季我們正逢A&M支出占淨營收比重大幅增加的高基期，但我們預期仍將持續投資於A&M。最後，雖然我們對全年稅率的指引維持不變，但我們在第四季將面臨2015年第四季異常偏低的核心有效稅率比較基期。

So to summarize, our core constant currency earnings per share outlook for 2016 has improved from our last call and we continue our focus on disciplined capital allocation and cash returns to shareholders.

總結而言，我們對2016年核心固定匯率每股盈餘的展望較上次電話會議有所改善，並將持續聚焦於嚴謹的資本配置與對股東的現金回饋。

With that, operator, we will take the first question.

接下來，接線員，我們將開始第一個問題。

(Operator Instructions). Dara Mohsenian, Morgan Stanley.

(接線員指示)。Dara Mohsenian，摩根士丹利。

Good morning. So 10% full-year core EPS growth guidance for this year is really pretty impressive given the type of environment we are in and that even assumes you don't beat again in Q4 like you have been recently. It looks like much greater SG&A leverage is driving this year in particular when compared to the prior few years.

早安。所以，在我們所處的環境下，今年全年核心EPS成長10%的指引確實相當令人印象深刻，而且這甚至假設你們在第四季不會像近期一樣再度超預期。看起來，相較於前幾年，今年特別是更高的SG&A槓桿在驅動表現。

So albeit with one quarter left to go, I guess can you talk about what is driving that greater SG&A leverage particularly given it looks like A&M will be up again solidly this year? I am assuming the answer is productivity perhaps a bit less onerous FX, but on the productivity side, is the ramp up kind of sustainable versus the past years and how should we think about it going forward?

因此，雖然只剩下一季，我想請你們談談是什麼在推動更高的SG&A槓桿，尤其看起來今年A&M仍會再度穩健成長？我猜答案可能是生產力提升以及外匯逆風較不嚴峻；但就生產力而言，這種提升的加速是否相較過去幾年更具可持續性？我們應該如何看待未來的走勢？

And then on the other hand on the gross margin side, obviously very strong expansion the last few years. It did slow a bit sequentially this quarter I am assuming with less favorable commodities. But as we look out to Q4 in 2017, perhaps you can give us some guidance around commodities and how that impacts gross margins? Thanks.

另外在毛利率方面，過去幾年顯然擴張非常強勁。我想本季按季放緩一些，應該是因為商品因素較不利。但當我們展望2017年第四季時，也許你們可以就商品走勢提供一些指引，以及其對毛利率的影響？謝謝。

Dara, we are not going to talk about 2017 today. But let me just take a shot at the first question you asked and then Hugh, you might want to add whatever you want to.

Dara，我們今天不會談2017年。不過我先嘗試回答你提出的第一個問題，接著Hugh你也可以補充你想補充的部分。

On the SG&A leverage, it all starts first with topline growth. The minute you get good topline growth you get leverage on all of the other SG&A costs that we have in the P&L. So this quarter was a very, very good topline growth at 4.2. That is pretty significant and that gives us leverage to start with. Couple that with the fact that many of our productivity programs which we put in place very deliberately, it wasn't a productivity program where we just cut the cost for the sake of cutting the cost, we actually built the underlying capability so when we take out the costs, they come out for good.

關於SG&A槓桿，一切首先從營收成長開始。一旦有良好的營收成長，你就能在損益表中的其他各項SG&A成本上取得槓桿效益。因此本季營收成長4.2%，非常、非常好。這相當顯著，並為我們帶來首先的槓桿。再加上我們非常刻意推動的多項生產力計畫；這不是為了削減成本而削減成本的生產力計畫，我們實際上建立了底層能力，因此當我們移除成本時，這些成本會永久性地移除。

So putting in the ERP systems, putting the right tools to ensure visibility across the Company, all of that took some money. We invested so that we could take out the costs permanently. And slowly by step-by-step, all of these costs are coming out in a very deliberate and a disciplined way. And so the combination of the two gives us the SG&A leverage.

例如導入ERP系統、導入合適的工具以確保全公司層級的可視性，這些都需要一些資金。我們先投資，才能永久性地移除成本。而且我們正一步一步地，以非常審慎且有紀律的方式把這些成本移除。因此兩者結合，帶來了SG&A槓桿。

The key thing to remember is that over a year or two years, the overall P&L works very well. Quarter-to-quarter you might have different aspects of the P&L delivering differently, one quarter might be gross margin, another quarter might be SG&A leverage. But I think over a long period of time, the P&L seems to be working quite well.

要記住的關鍵是，從一年或兩年的期間來看，整體損益表運作得非常好。但就季度對季度而言，損益表的不同面向可能會有不同的貢獻；某一季可能是毛利率，另一季可能是SG&A槓桿。不過我認為，從較長期間來看，損益表的表現似乎相當不錯。

Hugh, do want to add anything to that?

Hugh，你要補充什麼嗎？

I think you covered most of it, Indra. Two small items that I would add that I think are worth mentioning. Number one, the investments we have made in technology are not just making our selling system more productive by putting not just handhelds in the hand of our route salesmen but actually putting iPads in the hands of our district managers enabling them to be more effective and to manage more basically with the same or less resources.

我想你已涵蓋大部分了，Indra。我再補充兩個我認為值得一提的小點。第一，我們在科技上的投資不僅提升了銷售系統的生產力；我們不只是把手持裝置交到路線業務員手上，而是把iPad交到區域經理手上，使他們能更有效率，並且基本上用相同或更少的資源管理更多。

And the same is true of management more broadly in the G&A bucket by virtue of leveraging the technology advancements that are out there, we are making our management frankly more productive and that has enabled us to do more with less.

同樣地，在更廣泛的管理層面、也就是G&A項下，藉由運用現有的科技進展，我們坦白說讓管理更具生產力，這使我們能以更少資源完成更多工作。

The other item that I would point to is we implemented smart spending really late last year and into this year and we are seeing the benefits of that whether it is across travel or consultants or facilities, we have gotten smarter with our spending. And as a result, you are seeing flow through of that productivity into margin improvement.

另一點我想指出的是，我們在去年年底到今年導入了「智慧支出」(smart spending)，而我們正看到其效益，不論是在差旅、顧問或設施等方面，我們在支出上變得更精明。因此，你們看到這些生產力提升轉化為利潤率改善。

I think the part that we all feel good about is that the smart spending program, the emphasis was on smart. We wanted to make sure that we never cut into topline driving initiatives and I think we are succeeding doing that.

我想我們都感到欣慰的一點是，智慧支出計畫的重點在於「智慧」。我們希望確保絕不削減任何能推動營收成長的倡議，而我認為我們正成功做到這一點。

Bryan Spillane, Bank of America

Bryan Spillane，美國銀行

Good morning, everyone. I've got a question I guess just related to if you can talk a little bit and give us some color on how especially developing in emerging markets sort of performed in the quarter and maybe whether or not you are beginning to see maybe some recovery or some stabilization in some markets? With oil prices up in Russia, it seems like we have heard the consumer a little bit better there. And just given the 5% organic sales growth you had in Europe, in sub-Saharan Africa and AMENA and 10% in Latin America, just can you give a little bit more color in terms of some of the performance there and whether you think maybe things have maybe stabilized or begun to bottom out there would be helpful. Thank you.

各位早安。我有個問題，想請你們多談一點並提供一些背景，關於新興市場（尤其是開發中市場）在本季的表現，以及你們是否開始看到某些市場出現復甦或趨於穩定？俄羅斯油價上升，看起來我們聽到那裡的消費者狀況稍微好一些。另外，考量你們在歐洲、撒哈拉以南非洲與AMENA的有機銷售成長達5%，拉丁美洲達10%，能否就當地表現提供更多細節，以及你們是否認為情況已趨於穩定或開始觸底回升？這會很有幫助。謝謝。

We are in a troubled global economic environment but in spite of that, I would say a lot of the emerging developing markets in Q3 showed some signs of improvement. Now whether they last or not we don't know but at this point, they are looking pretty good.

我們正處於艱困的全球經濟環境，但即便如此，我會說許多新興開發中市場在第三季顯示出一些改善跡象。至於這些改善是否能持續，我們還不確定，但就目前而言，看起來相當不錯。

Russia, we did see some improvement. The Pacific Rim, good economies all from the entire -- [ASIAN] world if you want to put it that way. India is looking good. Even China is looking much better than it did in the early part of the year. I am just talking overall economic not just our business.

俄羅斯方面，我們確實看到一些改善。環太平洋地區，整體而言都是不錯的經濟體——如果你想這麼說，涵蓋整個—[ASIAN]—世界。印度看起來不錯。甚至中國也比年初時看起來好得多。我指的是整體經濟狀況，不僅僅是我們的業務。

Then if you come over to Europe, Russia clearly we are seeing signs of improvement and this is even before the oil prices started to stabilize and improve. East Europe still looks all right; Western Europe is not getting worse so that is a good sign.

接著如果你把視角轉到歐洲，俄羅斯很明顯我們看到改善的跡象，而且這甚至是在油價開始趨於穩定並回升之前。東歐看起來仍然不錯；西歐沒有變得更糟，所以這是一個好跡象。

When you come to Latin America, look, we have good businesses there and there is no question Argentina had a troubled year. Brazil is having its share of troubles but I would say that overall the economy seemed to be holding up. But more importantly, our businesses seem to be performing quite well because retailers turn to us to deliver more of the growth because we have high velocity categories and we take labor off the [stool] through our DSD systems. So I think retailers are turning more and more to us to deliver a lot of the growth.

再看拉丁美洲，坦白說，我們在那裡有很好的業務，毫無疑問阿根廷經歷了艱困的一年。巴西也有它的一些麻煩，但我會說整體而言經濟似乎仍撐得住。但更重要的是，我們的業務似乎表現相當好，因為零售商轉向我們來帶動更多成長，因為我們有高周轉的品類，而且我們透過 DSD 系統把勞力從[stool]上移除。所以我認為零售商愈來愈依賴我們來帶動大量成長。

Overall I would say cautiously optimistic about emerging and developing markets.

整體而言，我會說對新興與開發中市場抱持審慎樂觀。

Ali Dibadj, Bernstein.

Ali Dibadj，Bernstein。

So I have a set of questions about the balance between price and mix and volume and then just a question about bottling.

所以我有一組問題，關於價格與組合、銷量之間的平衡，然後還有一個關於裝瓶的問題。

First, on the price mix part, would love to get your sense around North America and AMENA specifically so NAB volumes up which is great but assuming kind of innovation, there is a lot of [pre-innovation] it sounded like and that was good, channel shift for better weather would have suggested to me at least a little bit of a more positive price mix kind of tailwind as well.

首先，在價格/組合這一塊，特別想聽聽你對北美與 AMENA 的看法：NAB 銷量上升，這很棒；但假設是創新帶動，聽起來似乎有很多[pre-innovation]，而那也很好；通路轉移加上更好的天氣，至少在我看來，也應該會帶來一點更正面的價格/組合順風。

But the price mix was only up 1% so I want to get a sense there. Negative price mix in AMENA continues, arguably getting a little bit worse given the easier compares. So just on those two, would love to get a sense of that.

但價格/組合只上升 1%，所以我想了解一下原因。AMENA 的價格/組合持續為負，而且考量到比較基期更容易，似乎還稍微變得更糟。所以就這兩點，想請你分享一下看法。

Separately on bottling, I guess it is sort of related I guess, but on bottling, would love to get a sense of how you are thinking about the right structure from a bottling perspective given ABISAB got approved do you care about blue and red under one roof? Do you even mind?

另外關於裝瓶，我想這也算相關：從裝瓶的角度，你如何看待正確的結構？鑑於 ABISAB 已獲核准，你在意藍與紅是否要在同一個屋簷下嗎？你甚至會介意嗎？

And then if you go to North America specifically, have you seen any kind of competitive disruptions positive or negative in the Coca-Cola re-franchise move of the bottling? Sorry for a lot there, but thank you.

然後如果聚焦北美，你是否看到可口可樂在裝瓶業務再特許經營（re-franchise）過程中，出現任何競爭面的擾動，不論正面或負面？抱歉一次問很多，謝謝。

I'm just going to answer this last question and then toss it to Hugh to talk about price, mix and volume. We aren't going to comment about the ABI deal closing with SAB Miller and the consequences for overall partnership. But let me talk about the North American situation.

我先回答最後這個問題，然後再把價格、組合與銷量的部分交給 Hugh。我們不會評論 ABI 與 SAB Miller 交易完成以及對整體合作關係的影響。但我先談談北美的情況。

We are playing an operating game and we are pretty successful in playing a game where we own a large portion of our bottling system. We leverage part of one. Our retailers seem to be quite happy with the service that we are providing and we are driving a lot of growth for them because we are able to service them exceedingly well. That is our strategy and that is how we are going to continue going forward.

我們是在打一場營運的仗，而且在我們擁有裝瓶系統很大一部分的模式下，我們打得相當成功。我們也運用其中一部分。我們的零售商似乎對我們提供的服務相當滿意，而我們也為他們帶來大量成長，因為我們能提供極佳的服務。這就是我們的策略，也是我們未來會持續前進的方向。

Let me turn it to Hugh to talk about price, mix and volume.

我把時間交給 Hugh 來談價格、組合與銷量。

Happy to. Good morning, Ali. Regarding North America, price mix was one but it was actually a strong one. I think the number was exactly 1.3. And that is as you said a combination of price mix. We are continuing to get good pricing in carbonated soft drinks. A couple of factors I would remind you of is we do have deflationary commodities right now so you are seeing a little bit less of that pricing flow through into retailers as we have deflationary commodities.

很樂意。早安，Ali。關於北美，價格/組合是 1，但其實是很強的 1。我想數字正好是 1.3。而這如你所說，是價格與組合的綜合。我們在碳酸軟性飲料上持續取得不錯的定價。有幾個因素提醒你：目前我們的原物料呈現通縮，所以你會看到因為原物料通縮，傳導到零售端的漲價幅度稍微少一些。

The other is we do have negative water mix going on so on the one hand, non-carbs were quite positive but a portion of that was water which is obviously from a price mix perspective negative.

另外，我們的水品類組合是負向的；一方面，非碳酸品類表現相當正面，但其中一部分是水，從價格/組合的角度來看，水顯然是負向的。

So in total with the 1.3 of price mix that we got along with good productivity, you saw a profit of 10% in the quarter. So we think we've got a very healthy mix of pricing and productivity in that market right now and frankly we see nothing but rational pricing going on in the marketplace.

所以合計來看，價格/組合 1.3 再加上良好的生產力，你看到本季利潤成長 10%。因此我們認為目前在該市場的定價與生產力組合非常健康，而且坦白說，我們在市場上看到的只有理性的定價行為。

Regarding AMENA, a couple of factors there. Number one, we did see some bottlers reducing their concentrate inventories so the volume number that you see relative to the revenue number is in part driven by the fact that volume is driven by bottle a case sales and revenue is driven by concentrate shipments. So the numbers aren't quite as negative as they look in terms of what flows through the balance of the P&L.

至於 AMENA，有幾個因素。第一，我們確實看到一些裝瓶商在降低他們的濃縮液庫存，所以你看到的銷量數字相對於營收數字，部分是因為：銷量是由裝瓶商的箱數銷售所驅動，而營收是由濃縮液出貨所驅動。因此，就損益表其餘部分的傳導而言，這些數字並沒有看起來那麼負面。

In addition to that, the pricing was not particularly high in India both in the snacks and in the beverage businesses and those were both factors in the numbers for the quarter.

此外，印度不論在零食或飲料業務的定價都不是特別高，這兩點都是本季數字的影響因素。

Bill Schmitz, Deutsche Bank

Bill Schmitz，德意志銀行

Can you just talk a little bit more about the sources and sustainability of NAB growth? You are obviously doing a great job with Gatorade. It looks like the whole category is lifting quite a bit so I'm just curious how much of that is really good marketing and good activation versus maybe some favorable weather? And then perhaps September trend since the quarter ended so early this year?

你能否再多談一點 NAB 成長的來源與可持續性？你們在佳得樂（Gatorade）上顯然做得非常好。看起來整個品類都拉升不少，所以我想了解其中有多少是真正好的行銷與良好的推廣執行，還是可能有一些有利的天氣因素？另外，因為今年這一季結束得很早，或許也談談 9 月的趨勢？

I think NAB has been doing a great job in terms of innovation. Very sensible marketing programs and then execution has improved quarter by quarter and so I very proud of the NAB team.

我認為 NAB 在創新方面做得非常好。行銷方案非常合理，而且執行力一季比一季提升，所以我為 NAB 團隊感到非常自豪。

Clearly Gatorade has done very well, marketing programs are good; execution is very, very good. It has been a good summer. All of those together did drive the growth of all beverages and definitely Gatorade.

很明顯佳得樂表現非常好，行銷方案很棒；執行非常、非常到位。這是一個很好的夏天。以上這些因素加在一起，確實帶動了整體飲料的成長，當然也帶動了佳得樂。

As far as the rest of the categories go, we are playing the long game. We want to play the total beverage portfolio because we want to make sure that we go where the consumer is going. So teas are up, coffee is doing well, hydration is doing well, products like Kickstart which are sort of soft energy products, I would say are doing well.

至於其他品類，我們是在打長期戰。我們希望經營整體飲料產品組合，因為我們要確保跟著消費者的走向前進。所以茶在成長、咖啡表現良好、補水類表現良好，像 Kickstart 這類有點像溫和能量飲料的產品，我會說也表現不錯。

I think overall the category is doing -- our business is doing quite well and we are gaining NAB share which is really our focus.

我認為整體品類表現——我們的業務表現相當好，而且我們正在提升 NAB 市占，這才是我們真正的重點。

Lastly, our food service is doing well. It is an area that we underperformed in many years ago with the bottlers coming back and we have reinvested in food service and that is growing too.

最後，我們的餐飲通路（food service）表現良好。這是我們在很多年前因裝瓶商回歸而表現不如預期的領域；我們已重新投資餐飲通路，而它也在成長。

So overall I would say innovation, incredible focus on execution followed by productivity. All three are delivering good results in NAB.

所以整體而言，我會說是創新、對執行的高度聚焦，再加上生產力。這三者都在 NAB 帶來良好成果。

Indra, the only thing I would add to that and Bill you mentioned it specifically, we didn't, but I would not overrate the impact of weather in the summer. While it is undoubtedly true it was a very hot summer, last summer was also a very hot summer so I'm not sure it was a particularly large overlap. You didn't hear us talk about whether in Q2 when it was cool in the spring, you won't hear us talk much about whether right now. We are focused on the things we can control as Indra mentioned in her opening.

Indra，我唯一想補充的是——Bill 你特別提到這點，我們沒有——我不會過度高估夏季天氣的影響。雖然毫無疑問今年夏天非常炎熱，但去年夏天也同樣非常炎熱，所以我不確定這是否帶來特別大的差異。你沒有聽到我們在第二季談到春天偏涼的天氣，你現在也不會聽到我們太多談天氣。我們專注在如 Indra 在開場提到的、我們能控制的事情。

Steven Powers, UBS.

Steven Powers，瑞銀。

Thanks. I was hoping you could help us bridge the margins particularly in your North American businesses which is where we saw the particular strength. Obviously you cited revenue management (inaudible) benefits as key drivers overall and I am assuming that that applies in Frito-Lay and NAB as well offset by those A&P investments.

謝謝。我希望您能協助我們釐清利潤率的銜接，特別是在你們北美業務上，因為我們看到那裡表現特別強勁。顯然你們提到營收管理（聽不清）帶來的效益是整體的關鍵驅動因素，我假設這也適用於 Frito-Lay 和 NAB，同時被那些 A&P 投資所部分抵銷。

But harkening back maybe to Dara's original question, can you size for us also the commodity tailwinds specifically in North American segments? Obviously overall they were inflationary but there they seem to have helped. I am just curious as to how much?

不過回到可能是 Dara 最初的問題，你們也能否幫我們量化一下北美各事業部門中，特別是大宗商品的順風因素？顯然整體而言它們是通膨性的，但在那裡似乎反而有所幫助。我只是好奇大概有多少？

Steve, good morning. This is Hugh. As we disclosed in the release this morning, North America had slightly deflationary commodities so from that perspective it was undoubtedly a tailwind but not a huge tailwind. The bigger drivers were number one, pricing as you saw and as I mentioned earlier, we had 1.3 in North America beverages, and snacks we had about 1.5 points to 2 points of pricing. And then the balance of it was really productivity whether it was continuing to expand our automation programs, continuing to leverage technology in SG&A, continuing to leverage smart spending to manage our non-labor costs and operating expense down, the big drivers were just flow-through off of that productivity to deliver the positive margin result while at the same time investing significantly more money in advertising and marketing to drive all of the product innovation that is enabling the top line.

Steve，早安。我是 Hugh。如同我們今天早上在新聞稿中揭露的，北美的大宗商品成本略為通縮，因此從這個角度看，毫無疑問是順風，但不是很大的順風。更大的驅動因素第一是定價，如你所見、也如我先前提到的，我們北美飲料約有 1.3 的定價，零食約有 1.5 個百分點到 2 個百分點的定價。其餘主要來自生產力提升：不論是持續擴大自動化計畫、持續在 SG&A 中運用科技、持續透過精準支出管理非人力成本並降低營運費用；主要驅動因素就是這些生產力帶來的流轉效益（flow-through），在同時大幅增加廣告與行銷投資、以推動所有產品創新並帶動營收成長的情況下，仍能交出正向的利潤率結果。

So in sum, we really do have this virtuous cycle going that is typically a sign of success in the CPG space.

總結來說，我們確實正在形成這種良性循環，而這通常是 CPG（消費性包裝商品）領域成功的徵兆。

Kevin Grundy, Jefferies.

Kevin Grundy，Jefferies。

Good morning. So two unrelated questions if I may. First, back to NAB, I was hoping you could comment on one specific aspect of the competitive environment and that is Monster's launch of Mutant which will be targeting Mountain Dew. So to the extent you can, expectations there and any specific spending or programs you may have in place behind the Mountain Dew brand.

早安。如果可以的話，我有兩個不相關的問題。第一個回到 NAB，我希望你們能評論競爭環境中的一個具體面向，也就是 Monster 推出 Mutant，將鎖定 Mountain Dew。在你們可分享的範圍內，對此的預期，以及你們是否針對 Mountain Dew 品牌有任何特定的支出或計畫在推進。

Unrelated to that, you guys spoke to productivity and you have done a tremendous job there so we are a couple of years into the $5 billion program that you announced. Is it still your expectation that the remaining $3 billion will be realized fairly ratably through 2019? I know that a tremendous amount of uncertainty with respect to commodities and FX, etc. but how are you thinking today with respect to the flowthrough to earnings relative to advertising and marketing levels?

另外一個不相關的問題，你們談到生產力，而且你們在這方面做得非常出色；我們已經進入你們宣布的 50 億美元計畫的第幾年了。你們是否仍預期剩餘的 30 億美元將在 2019 年前以相對平均的節奏實現？我知道大宗商品與外匯等方面存在大量不確定性，但你們目前如何看待相對於廣告與行銷水準，這些效益流轉到盈餘的情況？

And then as productivity has become a bigger part of the Company's culture, how are you thinking about potentially exceeding that target? Thank you.

另外，隨著生產力已成為公司文化中更重要的一部分，你們如何思考有可能超越該目標？謝謝。

Kevin, I think first of all, we want to deliver on what we promised. So the five-year $5 billion program, that is a big productivity program and we are singularly focused on delivering that five-year $5 billion program and we are pretty confident we will. The first two years has been good and as is typical of us at PepsiCo, as we think about delivering the five-year $5 billion program, we are constantly looking for new ways to deliver more productivity. But at this point, it is five years, $5 billion and we are doing just fine along those lines.

Kevin，我想首先，我們希望兌現我們承諾的內容。所以這個五年 50 億美元的計畫，是一個很大的生產力計畫，我們專注於交付這個五年 50 億美元的計畫，而且我們相當有信心能做到。前兩年表現不錯；而且如同百事公司一貫的作法，當我們思考如何交付這個五年 50 億美元計畫時，我們也持續在尋找新的方式來創造更多生產力。但就目前而言，就是五年、50 億美元，我們在這條路上進展得很好。

In terms of Monster and Mutant, there can only be one Mountain Dew. I think there is only one Mountain Dew and we are focused on growing Mountain Dew and if I were you, I would go buy a Mountain Dew and enjoy it.

至於 Monster 和 Mutant，只會有一個 Mountain Dew。我認為 Mountain Dew 只有一個，而我們專注於成長 Mountain Dew；如果我是你，我會去買一瓶 Mountain Dew 來享受一下。

Robert Ottenstein, Evercore ISI.

Robert Ottenstein，Evercore ISI。

Good morning. This is (inaudible) for Robert. You mentioned on the release incremental investments particularly in Quaker, ESSA and AMENA and I was hoping you could clarify or provide some color around those please? Thank you.

早安。我是（聽不清），代替 Robert 發問。你們在新聞稿中提到增加投資，特別是在 Quaker、ESSA 和 AMENA，我希望你們能澄清或提供一些補充說明？謝謝。

The incremental investments in those markets as well as elsewhere really fall into three categories. Number one is around advertising and marketing to support the innovation that we have launched. Number two is research and development to enable us to accelerate our innovation into 2017 and beyond. And number three is investments that will enable us to continue to drive productivity across the P&L.

在這些市場以及其他地區的增量投資，主要落在三大類。第一是廣告與行銷，用以支持我們已推出的創新。第二是研發，使我們能在 2017 年及之後加速創新。第三是能讓我們持續推動損益表（P&L）各項生產力的投資。

So without getting into the specifics of each of those individual markets, those are the three big buckets in which we are investing.

因此，在不深入各個單一市場細節的情況下，我們投資的三個主要桶（buckets）就是這些。

(inaudible), Credit Suisse

（聽不清），瑞士信貸

Good morning everyone. I do have a question regarding innovation. So you mentioned innovation representing about 9% of your net revenue. Could you give us a bit more color about the split between beverages and snacks or US versus international?

各位早安。我有一個關於創新的問題。你們提到創新約占你們淨營收的 9%。你們能否就飲料與零食之間，或美國與國際之間的拆分，提供更多說明？

I think it is all balanced across the board and I would say in some of the emerging and developing markets, it runs higher than 9% because we take products developed in the developed markets and we send it there. But I would say on balance, it is plus or minus 1% around [9] in terms of emerging, developing and developed markets and then beverages and snacks.

我認為整體而言各方面都相當均衡；我會說在一些新興與發展中市場，比例會高於 9%，因為我們會把在已開發市場開發的產品帶到那裡。但整體來看，無論是新興、發展中與已開發市場，或是飲料與零食，大致都在 [9] 上下正負 1% 的範圍內。

So thank you all for your questions. In closing, let me just say that we are confident we can the right strategies in place and we are executing very well. We are pleased with our results for the quarter and year-to-date. We are on track to deliver our targets for the year and we look forward to sharing with you our sustainability vision and goals for the coming decade and the weeks ahead.

因此，謝謝大家的提問。最後我想說，我們有信心我們已具備正確的策略，而且執行得非常好。我們對本季以及年初至今的表現感到滿意。我們正按計畫達成今年的目標，也期待在未來幾週與接下來的時間，與各位分享我們未來十年的永續願景與目標。

As always, thank you for the trust you have placed in us with your investment. We remain absolutely committed to increasing its value. Thank you.

一如既往，感謝各位以投資對我們所寄予的信任。我們仍然絕對致力於提升其價值。謝謝。