Fourth Quarter 2008 Conference CallMarch 26, 2009Fourth Quarter 2008 Conference CallFourth Quarter 2008 Conference CallMarch 26, 2009March 26, 2009

Safe Harbor Statement

This release contains forward‐looking statements within the meaning of Section 27A of the 

Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as 

amended, including, in particular, statements about future events, future financial 

performance, plans, strategies, expectations, prospects, competitive environment, regulation, 

and cost and availability of raw materials. Forward‐looking statements include all statements 

that are not historical facts and can be identified by the use of forward‐looking terminology such 

as the words “may,”

“will,”

“expect,”

“anticipate,”

“believe,”

“estimate,”

“plan,”

“intend”

or 

the negative of these terms or similar expressions. These forward‐looking statements have been 

based on our current views with respect to future events and financial performance. Our actual 

financial performance could differ materially from those projected in the forward‐looking 

statements due to the inherent uncertainty of estimates, forecasts and projections, and our 

financial performance may be better or worse than anticipated. Given these uncertainties, you 

should not put undue reliance on any forward‐looking statements.  All of the forward‐looking 

statements are qualified in their entirety by reference to the factors discussed under “Risk 

Factors”

in our Quarterly Report on Form 10Q and “Special Note Regarding Forward‐Looking 

Statements,”

and elsewhere in our Registration Statement on Form 10 filed with the Securities 

and Exchange Commission (“SEC”) on April 22, 2008 and our other filings with the SEC. 

Forward‐looking statements represent our estimates and assumptions only as of the date that 

they were made. We do not undertake any duty to update the forward‐looking statements, and 

the estimates and assumptions associated with them, after the date of this release, except to the 

extent required by applicable securities laws.

This release contains forward‐looking statements within the meaning of Section 27A of the 

Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as 

amended, including, in particular, statements about future events, future financial 

performance, plans, strategies, expectations, prospects, competitive environment, regulation, 

and cost and availability of raw materials. Forward‐looking statements include all statements 

that are not historical facts and can be identified by the use of forward‐looking terminology such 

as the words “may,”

“will,”

“expect,”

“anticipate,”

“believe,”

“estimate,”

“plan,”

“intend”

or 

the negative of these terms or similar expressions. These forward‐looking statements have been 

based on our current views with respect to future events and financial performance. Our actual 

financial performance could differ materially from those projected in the forward‐looking 

statements due to the inherent uncertainty of estimates, forecasts and projections, and our 

financial performance may be better or worse than anticipated. Given these uncertainties, you 

should not put undue reliance on any forward‐looking statements.  All of the forward‐looking 

statements are qualified in their entirety by reference to the factors discussed under “Risk 

Factors”

in our Quarterly Report on Form 10Q and “Special Note Regarding Forward‐Looking 

Statements,”

and elsewhere in our Registration Statement on Form 10 filed with the Securities 

and Exchange Commission (“SEC”) on April 22, 2008 and our other filings with the SEC. 

Forward‐looking statements represent our estimates and assumptions only as of the date that 

they were made. We do not undertake any duty to update the forward‐looking statements, and 

the estimates and assumptions associated with them, after the date of this release, except to the 

extent required by applicable securities laws.

• Consumers under pressure; redefining affordability

• Premium, FX and Mexico still challenging

• CSDs and value-priced juices performing well

• Consumers under pressure; redefining affordability

• Premium, FX and Mexico still challenging

• CSDs and value-priced juices performing well

Macroeconomic and Market Conditions Remain Challenging

• Advantaged portfolio in attractive categories

• Strategic imperatives unchanged:

Build and enhance leading brands

Pursue profitable channels, packages and categories

Leverage our integrated business model

Strengthen our route to market

Improve operating efficiencies

• Talented and experienced leadership team

• Expect 3-5% net sales growth and high single- digit EPS growth over time

• Advantaged portfolio in attractive categories

• Strategic imperatives unchanged:

Build and enhance leading brands

Pursue profitable channels, packages and categories

Leverage our integrated business model

Strengthen our route to market

Improve operating efficiencies

• Talented and experienced leadership team

• Expect 3-5% net sales growth and high single- digit EPS growth over time

DPS Remains Committed to its Long-Term Strategy Which Will Deliver Shareholder Value Over Time

• Investing today to support long-term growth

• Key initiatives:

Brand developmentVictorville platform plantCold drink, single serve and fountain/foodservice

expansion Route to market investments

• Investing today to support long-term growth

• Key initiatives:

Brand developmentVictorville platform plantCold drink, single serve and fountain/foodservice

expansionRoute to market investments

Investing for the Future

• Raised $3.9B of debt and separated from Cadbury

• Relocated R&D facility to Plano, TX

• Delivered $60 million in restructuring savings

• Generated $709 million of cash from operations; repaid $395 million in debt

• Grew U.S. CSD and shelf stable juice dollar share

• Became #1 branded manufacturer in the juice aisle

• Progressive Grocer’s Best in Class Category Captain for Soft Drinks

• Canada Dry Green Tea Ginger Ale named Best Beverage of the Year

• Raised $3.9B of debt and separated from Cadbury

• Relocated R&D facility to Plano, TX

• Delivered $60 million in restructuring savings

• Generated $709 million of cash from operations; repaid $395 million in debt

• Grew U.S. CSD and shelf stable juice dollar share

• Became #1 branded manufacturer in the juice aisle

• Progressive Grocer’s Best in Class Category Captain for Soft Drinks

• Canada Dry Green Tea Ginger Ale named Best Beverage of the Year

Proud of Our Achievements in Our First Year as a Public Company

Volume (BCS) -1% -1%

Net sales +3% +4%

Segment Operating Profit +4% Flat

EPS excluding certain items $0.39 $1.85

Volume (BCS) -1% -1%

Net sales +3% +4%

Segment Operating Profit +4% Flat

EPS excluding certain items $0.39 $1.85

Q4 and Full Year 2008 Performance Overview

Q4 2008 FY 2008As Adjusted1 vs 2007 vs 2007

Q4 2008 FY 2008As Adjusted1 vs 2007 vs 2007

1 Reconciliation of non-GAAP financial measures can be found under the investors section at www.drpeppersnapple.com

• Leverage white space opportunities

• Strong innovation focused on the core

• Increase consumer communications

• Continue to strengthen our route to market

• Build on single serve expansion momentum

• Leverage white space opportunities

• Strong innovation focused on the core

• Increase consumer communications

• Continue to strengthen our route to market

• Build on single serve expansion momentum

2009: Executing Against a Focused Strategic Plan

Strong Innovation, Focused on the Core

CSD Teas/JuicesFunctional

Expanding Crush Through New Bottler Distribution Agreements

Reaching More Consumers Every Day

• Increasing focus on cost containment

• Established productivity office

• Year 1 net investments in $20-$30 million range

• Increasing focus on cost containment

• Established productivity office

• Year 1 net investments in $20-$30 million range

Established Productivity Office to Support Continuous Investment Philosophy

• Net sales and cost of sales restatement

• Impairment charges

Snapple brand intangible $278 million

Bottling group goodwill & intangibles $761 million

• Restructuring costs include $16 million of additional pension expenses

• Tax rate:

$9 million deferred tax charges and unfavorable territory mix

$11 million additional indemnified & separation items

• Net sales and cost of sales restatement

• Impairment charges

Snapple brand intangible $278 million

Bottling group goodwill & intangibles $761 million

• Restructuring costs include $16 million of additional pension expenses

• Tax rate:

$9 million deferred tax charges and unfavorable territory mix

$11 million additional indemnified & separation items

Below the Line and Other Items

• 2008 cash from operations $709 million

• Focus on working capital

• Capex of $304 million, in line with 5% of sales guidance

• Paid down $395 million of debt, covering 2008 and 2009 requirements

• 2008 cash from operations $709 million

• Focus on working capital

• Capex of $304 million, in line with 5% of sales guidance

• Paid down $395 million of debt, covering 2008 and 2009 requirements

Strong Cash Generation Enabling $395 Debt Pay Down

• Comparable currency-neutral net sales up 2-4%• EPS ex-items: $1.59 to $1.67

Hansen losses/co-pack ~$48 million operating profit

Fuel savings ~$35 million -- will be reinvested

Stand-alone and stock-based comp costs $25 million higher

Blended interest rate of 6.6%

Interest income $25 million lower -- 1st half 2009 impact

FX at current spot rates = $0.12 per share

Tax rate 39% to 40%

• Phasing:

H1 comparisons will be harder

Marketing shifts to 1st half

Easter shift to 2nd quarter

• Comparable currency-neutral net sales up 2-4%• EPS ex-items: $1.59 to $1.67

Hansen losses/co-pack ~$48 million operating profit

Fuel savings ~$35 million -- will be reinvested

Stand-alone and stock-based comp costs $25 million higher

Blended interest rate of 6.6%

Interest income $25 million lower -- 1st half 2009 impact

FX at current spot rates = $0.12 per share

Tax rate 39% to 40%

• Phasing:

H1 comparisons will be harder

Marketing shifts to 1st half

Easter shift to 2nd quarter

2009 Guidance – Base Year

Packaging and Ingredients Have No Net Impact on COGS Inflation

Packaging & Ingredients Basket % Cost Change vs 2008Packaging & Ingredients Basket % Cost Change vs 2008

1

2

3

4

5

6

7

8

9

1

2

3

4

5

6

7

8

9

% increase% increase% decrease% decrease

• Continue to expect strong cash from operations

• Continue to pursue working capital improvements

• Cash contributions of $43 million to pension and post retirement benefit plan

• Capex 5% of net sales

• Targeting $400 million of debt prepayments in 2009

• Continue to expect strong cash from operations

• Continue to pursue working capital improvements

• Cash contributions of $43 million to pension and post retirement benefit plan

• Capex 5% of net sales

• Targeting $400 million of debt prepayments in 2009

2009 Cash Priorities and Liquidity

• Provides clarity and transparency

• 3 Segments:• Beverage Concentrates• Packaged Beverages• Latin American Beverages

• Expect to file supplemental information with FY 2006, FY 2007 and 2008 by quarter, by the end of April 2009

• Provides clarity and transparency

• 3 Segments:• Beverage Concentrates• Packaged Beverages• Latin American Beverages

• Expect to file supplemental information with FY 2006, FY 2007 and 2008 by quarter, by the end of April 2009

New Segment Reporting

• CSD, Tea and Juice Categories are large and attractive and we have room to grow

• DPS committed to long term strategy and investing for the future

• Portfolio of leading flavored CSDs and value juices provides affordable treats every day

• Investing behind our brands

• 2009 base year -- off to a solid start

• CSD, Tea and Juice Categories are large and attractive and we have room to grow

• DPS committed to long term strategy and investing for the future

• Portfolio of leading flavored CSDs and value juices provides affordable treats every day

• Investing behind our brands

• 2009 base year -- off to a solid start

Confident Our Strategy is Working