Financial Data and Key Metrics Changes - In 2025, net sales increased by almost 9%, with approximately 5 percentage points of growth from the base business and nearly 4 points from GHOST contributions [6][25] - EPS grew by 7% for the year, while Q4 EPS increased by 2% [6][25] - Operating income for Q4 grew by 4.8%, despite headwinds from interest expense and a slightly higher tax rate [25] Business Line Data and Key Metrics Changes - U.S. Refreshment Beverages showed strong performance with net sales growth of 11.5% in Q4, driven by volume mix and net price realization [26][27] - U.S. Coffee segment revenue increased by 4%, but operating income declined by a high single-digit rate due to cost pressures [13][29] - International segment net sales grew by 16% in constant currency, with a 20% increase in operating income [18][30] Market Data and Key Metrics Changes - The U.S. retail sales growth among top food and beverage manufacturers was the fastest for KDP, with market share gains across its portfolio [3] - The carbonated soft drink category remains strong, with KDP gaining market share in Dr Pepper for the ninth consecutive year [6][9] - The energy drink category is projected to continue growing, with KDP's multi-branded energy platform gaining nearly 1.5 points in market share [11][54] Company Strategy and Development Direction - KDP is focused on three objectives for 2026: delivering low double-digit EPS growth, integrating JDE Peet's, and establishing two standalone businesses [4][22] - The company is advancing its operational readiness for separation by the end of 2026, with significant progress on integration planning for the JDE Peet's acquisition [5][22] - KDP plans to enhance its portfolio through innovation, including new product launches and marketing strategies [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving low double-digit EPS growth in 2026, despite anticipated cost pressures in the first half of the year [34][36] - The company is navigating a dynamic operating environment while laying the groundwork for long-term success [3][5] - Management acknowledged the challenges posed by inflation and cost pressures but remains committed to investing for future growth [15][61] Other Important Information - The company reported free cash flow of $1.519 billion in 2025, with expectations to increase to approximately $2 billion in 2026 [32] - KDP is refining its financing structure for the JDE Peet's acquisition, including an increase in the convertible preferred equity raise to $4.5 billion [32][33] - The board is evolving with new independent directors and a focus on establishing strong governance for the future standalone companies [38][39] Q&A Session Summary Question: Top line performance for standalone KDP - Management expects low double-digit EPS growth, with KDP standalone guidance of 4%-6% top line growth driven by U.S. Refreshment Beverages [45][46] Question: Existing KDP debt allocation - Existing KDP debt will remain with Beverage Company, while Global Coffee Co. will assume $5 billion of JDE Peet's debts [51][52] Question: Energy category growth - Management believes the energy category has multiple growth drivers and expects to gain shelf space without cannibalizing other portfolio segments [54][55] Question: Coffee business commodity headwinds - Cost headwinds are expected to peak in Q1, with relief anticipated in the latter part of the year due to inventory and hedging timing [59][60] Question: Organic sales growth in Q1 - Management anticipates some pressure in Q1 due to retail inventory adjustments, but expects visibility for EPS growth in Q2 and beyond [66][68] Question: Partner brands strategy - KDP aims for a balanced approach between core brand growth and partnerships, with flexibility to capture white space opportunities [70][71]

Q4 and FY 2025 Results February 24, 2026 1 Forward looking statements Certain statements in this Presentation (this "Presentation") of Keurig Dr Pepper Inc. (the "Company" or "KDP"), including statements relating to the Company's contemplated acquisition (the "Acquisition") of JDE Peet's, N.V. ("JDE Peet's"), the structured manufacturing JV with Apollo Management Holdings, L.P. (together with its affiliates, "Apollo") as the lead investor, in partnership with Kohlberg Kravis Roberts & Co., L.P. (together wi ...

Financial Data and Key Metrics Changes - The company reported a strong enterprise growth with net sales increasing by 7% in Q2, driven by both price and volume mix [12][30] - Gross margin contracted by 110 basis points due to inflationary pressures, despite pricing and productivity savings [32] - EPS grew double digits in Q2, contributing to nearly 10% growth in the first half of the year [32] Business Line Data and Key Metrics Changes - U.S. Refreshment Beverages saw net sales grow almost 11%, with strong performance in carbonated soft drinks led by Doctor Pepper, 7UP, and Canada Dry [14][30] - The energy segment, including brands like Ghost and C4, contributed significantly, with Ghost adding four percentage points to the top line [33][19] - U.S. Coffee segment net sales declined modestly by 0.2%, but showed sequential improvement with a strengthening pod category [35][21] Market Data and Key Metrics Changes - International segment net sales increased by 6%, driven by pricing and market share gains in key categories [28][30] - The company gained market share in the U.S. liquid refreshment beverages, with Doctor Pepper on track for its ninth consecutive year of market share growth [51][30] - The energy portfolio achieved a 7% market share, up from below 1% just a few years ago [19][30] Company Strategy and Development Direction - The company is focused on long-term value creation through five strategic pillars, including brand building and portfolio reshaping [6][5] - The acquisition of Diala brands aims to expand presence in the powdered drink mixes and liquid water enhancers category [9][100] - The company is investing in its direct store delivery (DSD) network to enhance distribution efficiency and support growth [75][72] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges from rising cost pressures and consumer caution but remains on track to achieve full-year outlook [5][30] - The company expects some margin pressure in the back half of the year due to inflation and tariffs, but anticipates continued top-line momentum [42][30] - Management expressed confidence in returning the U.S. Coffee segment to consistent long-term growth despite facing challenges [62][21] Other Important Information - The company generated $325 million in free cash flow in Q2, with expectations for further acceleration in the second half [39][30] - The capital allocation strategy remains balanced, focusing on organic and inorganic investments, strengthening the balance sheet, and returning cash to shareholders [40][30] Q&A Session Summary Question: Evolution of U.S. Refreshment Portfolio - Management highlighted strong contributions from both the base business and new partner additions, with expectations for continued robust growth [50][52] Question: Outlook for U.S. Coffee Segment - Management noted sequential improvement in U.S. Coffee but anticipated challenges in the back half due to commodity inflation and tariffs [56][62] Question: Pricing Dynamics in U.S. Liquid Refreshment Beverages - Management confirmed positive contributions from net price realization and emphasized the importance of monitoring consumer behavior in an inflationary environment [79][82] Question: Marketing Changes and ROI - Management discussed a marketing transformation focused on data and digital strategies to enhance consumer engagement and drive demand [90][92] Question: Protein Beverage Space and Diala Acquisition - Management acknowledged the growing consumer interest in health and wellness, including protein beverages, and expressed excitement about the Diala acquisition to penetrate this market [99][100]