pg p&g procter gamble sept 2013 investor slide deck powerpoint ppt pdf
TRANSCRIPT
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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