Operations Midwest North Pride Beloit, WI Operations #1 in All We Do! Mike Stahl Technical Manager Operations Midwest North Pride Frito Lay Beloit Service Area Region Profile: • 45% DC • 55% Bin TCN DC Bloomington DC FVSC Madison MFSC DC ● Beloit • 8 DC’s: TCN, Bloomington, Milwaukee, Omaha, Madison, FVSC, Des Moines, Davenport • 202 Bins • 600MM units Annually • 44.8MM cases in 2008 (Plan) • 1118 Vehicles (2nd Largest Fleet) • 2nd Largest Geography (8 States) • 85% of potatoes sourced from Wisconsin Carol Stream DC Northbrook DC Oak Brook DC Summit DC Davenport DC Des Moines DC Omaha DC Operations Frito Lay Beloit, WI The Pre-Eminent Green Company Midwest North Pride 10 9 Make Move 8 7 6 5 4 3 2 1 16 17 18 19 20 11 12 13 14 Sell Support 15 Technology Practices PepsiCo Confidential External 3 Operations Frito Lay Beloit – A Pre-Eminent Green Company in Wisconsin 51% 700 36% 4800 4600 4400 1.5 21% 650 4200 kwh / Lb 2 BTU / Lb Gal / Lb 2.5 Midwest North Pride 4000 3800 3600 600 550 3400 3200 1 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 3000 Water Tradition of Excellence '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 Natural Gas 500 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 Electricity •2010 Wisconsin Manufacturer of the Year Award Grand Sustainability Award •2010 Business Friend of the Environment Award •2010 EPA Waste Wise Partner of the Year Award •2009 Wisconsin Green Tier Acceptance •2009 Wisconsin DNR Clean Air Award •2009 Governors Award for GHG Emission Reductions •2008 – City of Beloit proclaims FL Eco-Friendly Business Operations People Engagement Processes…. Midwest North Pride Resource Conservation Tracking…gas, water, electrical per pound usage Daily Performance Reviews/Action Planning on the Frontline…… Operations Sustainable Processes…. Midwest North Pride Structured MX Systems Infrared and Ultrasonic Scanning Period ________________ 1st Shift Powerhouse Walk Week Sunday Monday Tuesday Wednesday Thursday ________________ Friday Saturday Team Member Initials: Boiler Room Set point or Status Booster Pumps Range 80 to 100 PSI Booster Pumps Pump A or B Trace Line Skid Return Temperature A B A B A B A B A B A B A B Feed Water Pump A or B A B A B A B A B A B A B A B RO System Running in Auto Yes No Yes No Yes No Yes No Yes No Yes No Yes No Water Meter Usage 1 2 1 2 1 2 1 2 1 2 1 2 1 2 Yes No Yes No Yes No Yes No Yes No Yes No Yes No A B A B A B A B A B A B A B Boiler Running 1 or 2 Boiler 1 usage Boiler 2 usage Softeners Compressed Air System Running Set point or Status Glycol Pressure PSI Glycol Pump Glycol Incoming Temperature < 75 Centac 400, Oil Temperature < 114 deg F Centac 500, Oil Temperature < 120 deg F Site Air Pressure > 88 psi Sullair 450, Interstate Temperature < 225 deg F Dryers range 34-39 deg F Other Resource Conservation Activities Quarterly Combustion Checks and Tuning of Ovens and Heat Exchangers Weekend Load Optimization ….. Compressor shedding, boiler turndown, etc. Operations Long Range Strategic Planning Midwest North Pride Technology Tactics > 150% of Target 2007 2008 2011 - Projected 2010 2009 TC1 Stacks Heat Recovery Air Compressor WHR Compressed Air to C. Blower UVGI Technology in HVAC PC Stack Heat Recovery Phase I Adsorption Chiller Revised SOP in WWT WWT Optimization Biomass Boiler Startup Initiate Air Study Boiler Economizer WH to Electricity Effluent Pump Recycle H2O Demand Expander MPC 50 Broach Mx Schedule High Efficiency Burners Upgrade Compressed Air Optimization PC Stack HR Phase II MPC 50 Broach to dry Starch Wet Cake Electric Generator Air Compressor WHR WWT Blower VFD BioMass Boiler – In Progress Power Correction Capacitors PC50 Stack Heat Recovery Eng. Nitrogen PSA Generation Belt Press Upgrade Bio-Solid Fertilizer Operations Waste Heat Recovery Projects….. GHG Reduction Enabler Midwest North Pride 3000 MT Scope 1 CO2e Emissions Operations Midwest North Pride Frito Lay Beloit, WI – GHG Emissions Combining People, Systems and Technology Blended Approach 30 25 20 24% Reduction 7,100 MT CO2e 15 10 5 0 2005 2006 2007 2008 2009 Operations Beloit “Near Net Zero” Strategy Biomass Boiler Midwest North Pride TC Waste Heat Recovery PC Waste Heat Recovery Electrical Kaizens Beloit MBBR Treatment Sustainability Leadership Waste Heat Kaizens c Zero Landfill (1st site in FLNA) LEED Gold Operations Midwest North Pride Frito Lay Beloit – GHG Flight Plan (scope 1) 30 Continued Waste Heat Recovery and other technologies enable another 40% GHG emission reduction from current day performance….. 25 20 15 Establishes an option for future zero carbon footprint growth…. 10 Beloit remains competitive with sister plants in Topeka, Kansas and Frankfort, Indiana….. 5 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 60% GHG Reduction <10 Years 17,800 MT CO2e Like 3400 vehicles of the road Operations Fleet Resource Conservation Initiatives EPA SmartWay Certified Fleet….. Gap Farings, Auto Tiring Inflation, etc. Midwest North Pride Driver MPG Challenge Contest Every Period Leveraging Idle Free Technology….Wabasto Heaters 30% Idle Reduction 26,000 Gallons YTD 230 MT CO2e Operations Frito Lay Beloit – A Zero Landfill Leader @ <1% Midwest North Pride People, Processes and Technologies in Place Continuing the Journey to Zero Landfill Reduction 140000 120000 Pounds 100000 80000 2008 2009 60000 2010 40000 20000 0 Jan Feb Mar Apr May Jun Jul Aug Months 55% Landfill Reduction Sep Oct Nov Dec Operations Midwest North Pride We have goals aligned to our Pre-Eminent Green Vision 75% Water % GAL / Lb 80 70 60 40 2007 2017 Electricity 100 1999 2007 2017 50% Fuel 45% 100 90 80 90 % GAL % kwh / Lb 50% 90 50 1999 70 60 80 70 50 40 Natural Gas 100 % BTU / Lb 100 90 80 70 60 50 40 30 20 1999 2007 60 2017 PepsiCo Confidential 2004 2007 2017 14