30 slides from Procter & Gamble Company (the)'s earnings presentation, Aug 2, 2016
Slide 1: Procter & Gamble Earnings Release: Q4 FY 2016 Results
Procter & GambleEarnings Release:Q4 FY 2016 Results August 2, 2016
Slide 2: Business Results Q4 FY 2016
Business ResultsQ4 FY 2016
Slide 3: Organic Sales Growth: Apr-Jun 16 (Q4 FY16) Results
Apr — Jun 16 (Q4 FY 16) Results Organic Sales Growth* Sales growth was volume driven, with organic volume 3% 4 growing +2% 2% 2% 2% 4 1% 1% 1% | “1% 0% Ll -1% J AMJ 15 JAS 15 OND 15 JFM 16 AMJ 16 * Restated for Batteries, Beauty category exits & Venezuela deconsolidation
Slide 4: Core EPS Growth: Apr-Jun 16 Results
Apr — Jun 16 (Q4 FY 16) Results Core EPS Growth* 20% 10% 4 9% 4% _ | -1% -3% -15% Q4 core operating margin was down 150 basis points due to -10% 4 foreign exchange headwinds and a significant increase in advertising support versus the prior year. -20% - AMJ 15 JAS 15 OND 15 JFM 16 AMJ 16 * Restated
Slide 5: Currency Neutral Core EPS Growth
Apr – Jun 16 (Q4 FY 16) ResultsCurrency Neutral Core EPS Growth* * Restated for Batteries & Beauty category exits
Slide 6: Business Segments Q4 FY 2016
Business SegmentsQ4 FY 2016
Slide 7: Beauty Segment
Apr — Jun 16 (Q4 FY 16) Results Beauty Segment aus as -32% -27% =z . . , Organic Sales Organic Volume Co + +1% Pricing, Flat Mix * Organic Sales: J Low single digits in Developed markets, T Low single digits in Developing markets + Global value share declined 0.8 points versus year ago + Net Earning
Slide 8: Grooming Segment
Apr – Jun 16 (Q4 FY 16) ResultsGrooming Segment +4% Pricing, Flat MixOrganic Sales: Flat in Developed markets, h Double digits in Developing marketsGlobal value share declined 0.7 points versus year agoNet Earnings: Pricing and productivity improvements were partially offset by marketing investments
Slide 9: Health Care Segment
Apr – Jun 16 (Q4 FY 16) ResultsHealth Care Segment +2% Pricing, +1% MixOrganic Sales: h High single digits in Developed markets, h High single digits in Developing marketsGlobal value share declined 0.4 points versus year agoNet Earnings: Strong volume growth, mix help, productivity improvements, an
Slide 10: Fabric & Home Care Segment
Apr – Jun16 (Q4 FY 16) ResultsFabric & Home Care Segment -1% Pricing, -1% MixOrganic Sales: h Low single digits in Developed markets, i Low single digits in Developing marketsGlobal value share increased 0.1 versus year agoNet Earnings: Productivity improvements and lower commodity costs were more t
Slide 11: Baby, Feminine & Family Care Segment
Apr – Jun 16 (Q4 FY 16) ResultsBaby, Feminine & Family Care Segment -2% Pricing, Flat MixOrganic Sales: Flat in Developed markets, h Low single digits in Developing marketsGlobal value share declined 0.7 points versus year agoNet Earnings: Productivity improvements, lower commodity costs and volume
Slide 12: Category Highlights Q4 FY 2016
Category HighlightsQ4 FY 2016
Slide 13: Beauty Highlights
Apr – Jun 16 (Q4 FY 16) ResultsBeauty Highlights Hair Care organic sales were flat versus year ago. Developing markets were flat as low single digit organic sales growth in China and Russia were offset by declining volume and investments in other developing markets. Developed markets were flat as gr
Slide 14: Grooming Highlights
Apr – Jun 16 (Q4 FY 16) ResultsGrooming Highlights Grooming organic sales grew high single digits driven by pricing, growth from innovation including Fusion Flexball and Fusion ProShield and Braun. Developing market sales grew high double digits driven by premium innovation and price increases. Deve
Slide 15: Health Care Highlights
Apr – Jun 16 (Q4 FY 16) ResultsHealth Care Highlights Oral Care organic sales were up high single digits versus year ago. Developed market sales increased high single digits driven by growth in paste and power toothbrushes. Developing markets increased high single digits with strong growth in China,
Slide 16: Fabric & Home Care Highlights
Apr – Jun 16 (Q4 FY 16) ResultsFabric & Home Care Highlights Fabric Care organic sales were flat versus year ago. Developed markets increased mid-single digits driven by increased marketing support and strong innovation in the U.S, where Fabric Care value share grew more than half a point in the Jun
Slide 17: Baby, Feminine & Family Care Highlights
Apr – Jun 16 (Q4 FY 16) ResultsBaby, Feminine & Family Care Highlights Baby Care organic sales increased low single digits versus year ago as strong growth on Pampers in the U.S was partially offset by challenges on Luvs and mixed results in Europe. In the U.S., Pampers value share was up over half
Slide 18: Business Results Fiscal Year 2016
Business ResultsFiscal Year 2016
Slide 19: Organic Sales Growth: Fiscal Year 2016 Results
Fiscal Year 2016 Results Organic Sales Growth* 4% 5 a%. | 3% sag. | 2% 1% 4 es 0% 4 FY 2014 FY 2015 FY 2016 * Restated for Batteries, Beauty category exits & Venezuela deconsolidation
Slide 20: Core EPS Growth: Fiscal Year 2016 Results
Fiscal Year 2016 Results Core EPS Growth* 6% 4 5% 3% 4 * | | | | -2% -2% -3% - FY 2014 FY 2015 FY 2016 * Restated for Batteries, Beauty category exits & Venezuela deconsolidation
Slide 21: Constant Currency Core EPS Growth
Fiscal Year 2016 ResultsConstant Currency Core EPS Growth* * Restated for Batteries, Beauty category exits & Venezuela deconsolidation
Slide 22: Returning Value to Shareholders
Returning Value to Shareholders $ billions FY 2016 Dividends 7.4 Share Repurchase & Exchanges 8.2 Value to Shareholders 15.6 % of Adjusted Net Earnings 149%
Slide 23: FY 2017 Guidance
FY 2017 Guidance
Slide 24: FY 2017 Guidance: Sales
FY 2017 Guidance*Sales FY ‘17 Organic Sales Growth Around 2% Currency & minor brand divestitures ~1% All-in Sales Growth Around 1% * Guidance assumes that Beauty businesses are accounted for as discontinued operations Expecting organic sales growth of around 2%.Expect all-in sales growth to be about
Slide 25: FY 2017 Guidance: Earnings Per Share
FY 2017 Guidance*Earnings Per Share FY ‘17 Core EPS Growth Up Mid-Single Digits All-in EPS Growth +45% to +55% * Guidance assumes that Beauty businesses are accounted for as discontinued operations. All-in guidance includes a substantial gain estimate for the divestiture of 41 beauty brands to Coty
Slide 26: FY 2017 Guidance: Cash Generation & Usage
FY 2017 GuidanceCash Generation & Usage Adjusted Free Cash Flow Productivity: 90%+Capital Spending, % Sales: 5% to 5.5%Dividends: $7B+Share Repurchases/Exchanges*: ~$15B * Combination of direct share repurchases and shares that will be exchanged in the beauty transaction.
Slide 27: Potential Headwinds Not Included in Guidance
FY 2017 GuidancePotential Headwinds Not Included in Guidance Change in market growth rates Further political and economic volatilityFurther foreign currency weakness
Slide 28: Potential Tailwinds Not Included in Guidance
FY 2017 GuidancePotential Tailwinds Not Included in Guidance Strengthening of foreign currencies Expansion of markets
Slide 29: Slide 29
Slide 30: Forward Looking Statements
Forward Looking Statements Certain statements in this release or presentation, other than purely historical information, including estimates, projections, statements relating to our business plans, objectives, and expected operating results, and the assumptions upon which those statements are based,