PG P&G Procter Gamble Sept 2013 Investor Slide Deck Powerpoint PPT PDF

7/29/2019 PG P&G Procter Gamble Sept 2013 Investor Slide Deck Powerpoint PPT PDF

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September 4, 2013

Barclays Back-to-School Conference 2013


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Agenda

Results and Outlook

Key Strategies and Focus Areas

Frequently Asked Questions

Q&A


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4%

5%

6%

4%

FY 2013 ResultsOrganic Sales Growth

-1%

0%

1%

2%

3%

FY 10 FY 11 FY 12 FY 13

3% 3%3%


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FY 2013 Results% of Sales In-Line or Growing Value Share

50%

60%

70%

0%

10%

20%

30%

40%

AMJ 12 JAS 12 OND 12 JFM 13 AMJ 13

Market share data is value basis, constant currency.


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8%

10%

7%

FY 2013 ResultsCore EPS Growth

-2%

0%

2%

4%

FY 10 FY 11 FY 12 FY 13

-1%

* History adjusted for Snacks moving to Discontinued Operations.


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FY 2013 ResultsProductivity & Cost Savings

Delivering Productivity GoalsInitial

TargetsActual Difference

COGS Savings $1.2B $1.2B+ +

Manufacturing Productivity 5% 7% +2 points

Non-Manufacturing

Overhead Role Reduction

5,700 7,000

(as of 6/30/13)

+1,300


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FY 2013 ResultsAdjusted Free Cash Flow Productivity

100%

125%

98%

Target= 90%

0%

25%

50%

75%

FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 FY 13


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FY 2013 ResultsReturning Value to Shareholders

$ billions FY 13Dividends $6.5

.

Value to Shareholders $12.5

% of Net Earnings 110%


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FY 2014 GuidanceTailwinds and Headwinds

Tailwinds

Positive market share momentum New innovations

Productivity and Cost Savings

Headwinds

Weaker underlying market growth

Currency Rapidly developing policy environment


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FY 2014 GuidanceOrganic Sales & EPS Growth

FY14Organic Sales Growth +3% to +4%

Currenc -2%

All-in Sales Growth +1% to +2%

Core Earnings Per Share +5% to +7%

All-in Earnings Per Share +7% to +9%


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FY 2014 GuidanceFront-Half vs. Back-Half

Front-Half Back-Half

Currency Headwind Significant Uncertain

Manufacturing Start-up Costs Relatively high Annualized

Venezuelan Bolivar devaluation Not in base Annualized

Productivity Savings Builds throughout the yearWestern Europe Bleach Divestiture In base period


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FY 2014 GuidanceForeign Exchange

2 point top-linegrowth headwind

~ po n earn ngsgrowth headwind


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FY 2014 GuidanceProductivity

Cost of Goods

~$1.4 billion in savings ~6% manufacturing productivity improvement

Overheads

Reductions ahead of initial targets Will look to accelerate FY15 reductions into FY14

Marketing

Expect spending to increase in absolute dollars,but decrease modestly as a % of sales


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FY 2014 GuidanceReturning Value to Shareholders

$ billions FY 14Dividends $6.5+

Value to Shareholders $11.5 to $13.5

Free Cash Flow Productivity ~90%

Shareholder Yield*% of market cap

5% to 6%

*Shareholder Yield calculated based on market cap of about $215 billion.


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FY 2014 GuidanceRisks Not Included in Guidance

Unrest in Egypt

Venezuela price controls,,

devaluation

Incremental currency headwinds


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Guidance Approach

Balanced, realistic

Transparent

ocuse on ong- ermshareholder value creation


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Value creation for consumers and shareholders

is our clear priority

SalesGrowth

Value Creation

Cash FlowGrowth

ProfitGrowth

MarginImprovement

AssetEfficiency

TotalShareholder

Return


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Value CreationFocused Strategies and Operating Plans

Core businesses

Prioritized developing markets

TSR


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Shareholder Value Co-Drivers

Innovation + Productivity

=

Growth and Value Creation

TSR


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ProductivityStrengthening and Accelerating

Opportunities in all

elements of cost

Parallel processing on

short cycle times


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ProductivityCost of Goods Sold

Further localization

in developing markets

in developed markets


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ProductivityNon-Manufacturing Overheads

Regional go-to-market designs

Leaner central staff


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ProductivityMarketing

Improve Marketing ROI:

1. Message clarity

. p m ze me a m x

3. Efficient non-mediaspending


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Operating Discipline

Better Execution

More consistently and reliably

,


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Strategic Investments

R&D / Innovation Go-to-Market


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FY 2014 Priorities and Focus Areas

Value creation

Invest in innovationand go-to-market capabilities

Productivity savings Operating discipline

TSR


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Key Themes

Balanced shareholder and


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Balanced Value Creation Drivers

Sales EarningsCash


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Balanced Time Horizons

Shortterm

Midterm

Longterm


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Balanced Market Strategies & Plans

Developed Developing


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4%

5%

6%

Consumer Value

Pricing Contribution to Sales Growth

0%

1%

2%

3%

FY 05 FY 06 FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 FY 13


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Consumer Value Equations


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Consumer Value Equations


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Regulations FD and G Disclosures

For a full reconciliation, please visit:www.pg.com/investors

Documents

PG P&G Procter Gamble Sept 2013 Investor Slide Deck Powerpoint PPT PDF