Académique Documents
Professionnel Documents
Culture Documents
Agenda
Results & Outlook
Strategic Focus Areas
Break
Investor Questions
Q&A
3%
3%
FY 2012
FY 2013
FY 2014
3%
2%
1%
0%
* Restated
Care
* Restated
for for
PetPet
Care
6%
5%
4%
2%
-1%
0%
-2%
FY 2012
FY 2013
FY 2014
14%
10%
6%
-1%
5%
Flat
FY 2012
FY 2013
FY 2014
$10bn+
86%
94%
FY 2014
Share Repurchase
6.0
Dividends
6.9
Value to Shareholders
12.9
% of Net Earnings
110%
FY 2015 Q1 Results
Organic Sales & EPS Growth
FY 15 vs FY 14
Organic Sales Growth
Currency & Divestiture Impacts
All-In Sales Growth
+2%
-2%
In-Line
+2%
+9%
FY 2015 Q1 Results
Cash
Q1 FY 2015
Operating Cash Flow
$3.6bn
$2.8bn
96%
FY 2015 Q1 Results
Returning Value to Shareholders
$ Billions
Q1 FY 2015
Share Repurchase
2.4
Dividends
1.8
Value to Shareholders
4.2
FY 2015 Guidance
Duracell Exit
No impact on FY15 organic sales growth
or core EPS growth
Currency
All-In Sales Growth
~2%
In-Line to Low Single Digits
Mid-Single Digits
Double Digit
FY 2015 Guidance
Risks Not Included in Guidance
Further currency weakness
Further market size contraction
Unrest in the Middle East
& Eastern Europe
Further pricing controls
& import restrictions
Business disruptions in Latin America
Any major portfolio moves
FY 2015 Guidance
Potential Tailwinds Not in Guidance
Currency & commodities ease
Market size expansion
Easing political tensions and
improved consumer confidence
FY 2015 Guidance
Top-line comps more difficult
in Q2 vs. Back-Half
Pricing benefits build through FY
Expect significant top & bottom-line
FX headwinds in Q2
Productivity savings build through FY
FY 2015 Guidance
Adjusted Free Cash Flow Productivity
120%
Stretch Objective of 95-100%
105%
90%
75%
60%
45%
30%
15%
0%
FY 06
FY 07
FY 08
FY 09
FY 10
FY 11
FY 12
FY 13
FY 14
FY 15e
FY 2015 Guidance
Returning Value to Shareholders
$ Billions
FY 2015
Share Repurchase
5-7
Dividends
~7
Value to Shareholders
Purpose,
Vision &
Values
Culture
Leadership
Sustainable
Growth & Value
Creation Drivers
~12 - 14
Goals
Sustainable
Growth
& Value
Creation
Systems
Strategies
Structure
Vision
To be the leading consumer products company
with consumer preferred brands and products
that are winning value creators in their industry.
Objectives
Superior Value for Consumers
Superior Value for Shareholders
Margin
Improvement
Cash Flow
Growth
Asset
Efficiency
Strategic Balance
O-TSR Drivers
Developed & Developing Markets
Category & Brand Portfolio
Short, Medium & Long Term
Innovation & Productivity
Scale & Focus
TSR
Where to Play
Core
categories, segments, brands
countries, channels, customers
Developing Markets
How to Win
Winning Consumer Moments of Truth
Leading Innovation and Productivity
Execute with Excellence
Zero
First
Second
Leading Brands
Brands that
Shoppers buy
Consumers use
Customers support
Leaders in
equity, awareness, trial, purchase
and loyalty
product performance, product innovation
growth and value creation
Focused Portfolio
Top Market Impact
Scale Retained in Top Markets
U.S.
Greater China
UK/Ireland
Russia
Germany
Japan
Focused Portfolio
Disciplined Process, Minimal Distraction
Timing driven by ability to create value
90-100 brands, NOT 90-100 transactions
10
Portfolio Progress
To date, 28 brands divested,
discontinued or plans to consolidate
Duracell Exit
Goals:
Maximize value to P&G shareowners
Minimize EPS dilution
Transaction 1: Sale of interest in Nanfu
battery joint venture
Transaction 2: Exit of Duracell business
11
Duracell Exit
Step 2: Exit Duracell business
Berkshire Hathaway to acquire Duracell in
split in exchange for P&G stock
~$1.8 billion cash infusion
Tax efficient transaction for P&G shareholders
Valued at ~7X EBITDA
Cash sale equivalent value of ~9X EBITDA
Duracell Exit
Goals:
Maximize value to P&G shareowners
Minimize EPS dilution
Portfolio Progress
To date, 28 brands reduced
10 additional brands in hands of prospective buyers
12
Innovation
Consumer needs and wants
Brand promise
Consumer-preferred
product and packaging
Sustained growth
and value creation
7 of Top Ten
2013 IRI Pacesetters
Innovation Drives
Value Creation
13
# of
Buyers
Consumer-Driven TSR
How Often
They Buy
Sales
OTSR
Growth
How Much
They Buy
Margin
Improvement
Price
They
Pay
Asset
Efficiency
Profit
Growth
Total
Shareholder
Return
Cash Flow
Growth
Driven by Innovation
Consumer needs and wants
Brand promise
Consumer-preferred
product and packaging
Sustained growth
and value creation
7 of Top Ten
2013 IRI Pacesetters
Consumer-Inspired Innovation
14
Fabric Care
Innovation History
$9
$7
Tide Pods
Tide
2x Compaction
Tide Liquid
w/Bleach
Alternative
Tide
Simply
Tide & Downy
Scent Line
Extensions
Tide
Value Adds
$5
Unstopables
Gain Liquid
$3
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014
15
16
Beauty Care
Sales
OTSR
Growth
Marketing
Margin
Improvement
Profit
Growth
Total
Shareholder
Return
Cash Flow
Growth
Overhead
Asset
Efficiency
17
Productivity
Cost of Goods Savings ($bn)
$1.2
FY 12
$1.6
~$1.6
FY 14
FY 15e
$1.3
FY 13
Productivity
Marketing Expense
Non-Working
Marketing
~$4bn
Advertising
~$9bn
Marketing Efficiency
Targeted Investments
Marketing % Sales
(FY14 vs. FY13)
U.S. Tide
+ 60bps
U.S. Pampers
+230bps
18
Productivity
Overhead
Non-mfg enrollment
down >16% (vs. 6/30/11)
Down in Q1-FY15
Productivity
Organization Design Choices
4 Sectors / 5 SMOs
SMOs focused on selling
BUs focused on brands
Single Brand Management function
Leveraging Service Centers
Flow-to-the-Work Designs
Productivity
Top Management Efficiency
Fiscal Corporate
Year
Officers
2000
33
2007
2014
Target
44
39
~33
Sales
$39.9 bn
$76.5 bn
$83.1 bn
>$80.0 bn
19
Productivity
Organization Capability Investments
14%
10%
FY 06 FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17
Cash Productivity
20
Execution
Branding
Trial Rates
Tide Pods
Gain Flings
Fusion ProGlide
Swiffer Sweeper
Metamucil
11%
4%
14%
10%
4%
Execution
Selling
Retail Account, Wholesaler
and Distributor Strategies
Distribution, Shelving
and Merchandising In-Store
Pricing Execution
Zero
First
Second
21
Culture
Purpose,
Vision &
Values
Sustainable
Growth & Value
Creation Drivers
Goals
Sustainable
Growth
& Value
Creation
Leadership
Systems
Strategies
Structure
FY 2014
Savings
Core
Q1
Q2
Q3
Q4
FY
Q1
+260
FY 2014
Q1
Q2
Q3
Q4
(130)
(90)
(120)
(50)
+10
+30
+30
+110
22
FY 2014
Q2
FY 2015
Q4
Q1
+20
+120
+10 +30
Q3
+30 +110
FYe
23
24
Developing
Gross Margin
44%
Operating Margin
14%
AT Margin
11%
Saudi Arabia
China
Philippines
Russia
Premiumization
Growth by Price Tier - Brazil
Market Value Split Across
Tiers (%)
P&G
Share
Super-premium
116
30
Premium
41
117
32
Mid
28
115
25
Value
26
109
22
25
Premiumization
Growth by Price Tier - China
Market Value Split Across
Tiers (%)
P&G
Share
Super-premium
20
111
23
Premium
33
111
34
Mid
29
99
28
Value
18
97
18
Premiumization
Growth by Price Tier - Russia
Market Value Split Across
Tiers (%)
P&G
Share
Super-premium
97
Premium
10
109
33
High
33
103
56
Mid
47
96
48
Value
102
12
26
Developing Markets
Margin Optimization
@ constant $
FY13
FY14
FY15e
Sales growth
6%
7%
7%
~2x
~4x
~2x
3%
Growing Premium segment
Entering, creating and growing new categories
Improving brand building and selling execution
Strengthening presence in faster growing channels
Focusing portfolio
Long-Term
Objectives
Ahead of
Underlying Market
5%
Top line Drivers
PLUS
Productivity Savings
Long-Term
Objectives
27
P3Y Average
90%+
Long-Term Objective
Sales
OTSR
Growth
Profit
Growth
Total
Shareholder
Return
Margin
Improvement
Cash Flow
Growth
Asset
Efficiency
Net Income
($bn)
Walmart
476.3
16.0
10.1
General Motors
152.1
5.3
2.8
122.5
5.6
5.7
Nestle
92.4
10.0
10.1
P&G
83.1
11.7
10.1
73.1
13.8
13.8
PepsiCo
66.4
6.7
6.9
Coca-Cola
46.9
8.6
8.0
28
101.1
$1,500
45.0
25%
$1,450
40.0
$1,400
98.5
$1,350
$1,300
35.0
30.0
29
Pampers
US Diapers Market Share
46
44
42
40
38
36
34
32
30
Pampers
Huggies
01/31/09
09/27/14
Take responsibility
for category growth
& value creation
Play to P&G strengths
Hi-Lo
Escalation
Average Capacity of
Machine Sold
30
Trade In
HH Penetration, Verticalize Portfolio
Trade Up
Superior Products, New Forms
Trade Across
Regimen
31
Tide
US Laundry Market Share
65.0
~62
60.0
55.0
50.0
P&G Laundry
Tide
~42
45.0
40.0
35.0
'09
'10
'11
'12
'13
'14
Evolving Gillette
Business Model
1. Shift from Shaving to Grooming
2. Drive big, obvious innovations
3. Transform POME
4. Drive Gillette shave club
and subscription
H&S vs Pantene
$ MM NOS
3,500
3,300
3,100
2,900
2,700
2,500
2,300
2,100
1,900
1,700
1,500
07/08
08/09
09/10
10/11
11/12
12/13
13/14
14/15
32
continues to feel dry as I continue to wear it. I am so glad I tried them. I will use them
with confidence from now on.
Always Discreet Bladder Protection pads are the best discovery I have ever
made in this type of product !! I absolutely am liking very very much the thinness and
length of them.
www.pg.com/investors
33