Procter & Gamble Company (the) · NYSE:PG
Procter & Gamble Company (the) — Q2 FY2015 Earnings Presentation
31 slides from Procter & Gamble Company (the)'s earnings presentation, Jan 27, 2015
Slide 1: Procter & Gamble Earnings Release: Q2 FY 2015 Results
January 27, 2015 Procter & Gamble Earnings Release:Q2 FY 2015 Results
Slide 2: Oct – Dec 2014 (Q2 FY 15) Business Results
Oct – Dec 2014 (Q2 FY 15)Business Results
Slide 3: Organic Sales Growth
Oct – Dec 14 (Q2 FY 15) ResultsOrganic Sales Growth* Organic sales grew 2% with 4 of 5 reporting segments growing versus prior year. 2% 3% * Restated for Batteries & PetCare 2% 2% 3%
Slide 4: Market Share
Oct – Dec 14 (Q2 FY 15) ResultsMarket Share Global value share ~20% % of Sales Holding/Growing Share ~50%
Slide 5: Core EPS Growth
Oct – Dec 14 (Q2 FY 15) ResultsCore EPS Growth* Core EPS includes 330 basis points of operating margin improvement driven by productivity savings. * Restated for Batteries & Pet Care -8% 3% 22%
Slide 6: Currency Neutral Core EPS Growth
Oct – Dec 14 (Q2 FY 15) ResultsCurrency Neutral Core EPS Growth* Excluding the impact of foreign exchange, currency-neutral core earnings per share increased 6% for the quarter. * Restated for Batteries & Pet Care 28%
Slide 7: Non-Core Restructuring Spending
Results To-DateNon-Core Restructuring Spending* * Restated for Pet Care & Batteries FY 15 FY 15 ($MM Before Tax) JAS OND Cost of Goods Sold 93 77 SG&A 2 18 Total Non-Core Restructuring 95 95
Slide 8: Business Segments
Business Segments
Slide 9: Beauty, Hair & Personal Care Segment
Oct – Dec 14 (Q2 FY 15) ResultsBeauty, Hair & Personal Care Segment +1% Pricing, Flat MixOrganic Sales: i Low singles in Developed markets, Flat in DevelopingGlobal value share declined 0.4 points versus year agoNet Earnings: Productivity improvements and pricing were more than offset by volume decl
Slide 10: Beauty, Hair & Personal Care – Organic Sales by Category
By Category Organic Sales Growth IYA Global Developed Developing Hair Care ~= - + Skin Care - - - Personal Cleansing - + - Deodorants + ~= + Cosmetics ~= - + Prestige - - - Salon Professional + + + Oct – Dec 14 (Q2 FY 15) ResultsBeauty, Hair & Personal Care – Organic Sales + represents growth above
Slide 11: Global Beauty, Hair & Personal Care Highlights
Hair Care organic sales in Developing markets were up driven by pricing across all regions. This growth was more than offset by declines in Japan due to competitive activity. Pantene US organic sales grew low single digits with share up 0.4 points behind innovation and marketing improvements. Skin C
Slide 12: Grooming Segment
Oct – Dec 14 (Q2 FY 15) ResultsGrooming Segment +4% Pricing, Flat MixOrganic Sales: i Low singles in Developed markets, h Mid-singles in DevelopingGlobal value share declined 0.3 points versus year agoNet Earnings: Pricing and productivity savings in COGS and marketing spending were more than offset
Slide 13: Grooming – Organic Sales by Category
By Category Organic Sales Growth IYA Global Developed Developing Blades & Razors + ~= + Pre & Post Shave - - ~= Braun & Appliances + + + Oct – Dec 14 (Q2 FY 15) ResultsGrooming – Organic Sales + represents growth above 1%, ~= represents growth of 1% to decline of 1%; - represents decline greater tha
Slide 14: Global Grooming Highlights
Global Blades & Razors organic sales were up low-single digits driven by innovation and pricing, more than offsetting market volume decline in Developed regions. Appliances organic sales increased mid-single digits driven by innovation like the launch of Series 9 shavers (DACH) and market growth in
Slide 15: Health Care Segment
Oct – Dec 14 (Q2 FY 15) ResultsHealth Care Segment Flat Pricing, +3% MixOrganic Sales: h Low singles in Developed markets, Flat in Developing Global value share declined 0.1 points versus year agoNet Earnings: Mix helps and productivity savings were more than offset by currency headwinds. Organic Sa
Slide 16: Health Care – Organic Sales by Category
By Category Organic Sales Growth IYA Global Developed Developing Oral Care + + ~= Personal Health Care ~= ~= ~= Oct – Dec 14 (Q2 FY 15) ResultsHealth Care – Organic Sales + represents growth above 1%, ~= represents growth of 1% to decline of 1%; - represents decline greater than1%.
Slide 17: Global Health Care Highlights
Oral Care organic sales increased low single digits driven by innovation including the new Sensi-Stop Strips in the U.S., growth in recent toothpaste expansion markets and pricing. Personal Health Care sales are slightly down vs. YA. In the U.S., growth from innovation behind Vicks Severe and Metamu
Slide 18: Fabric & Home Care Segment
Oct – Dec 14 (Q2 FY 15) ResultsFabric & Home Care Segment +1% Pricing, Flat MixOrganic Sales: Flat in Developed markets, h High singles in DevelopingGlobal value share declined 0.1 points versus year agoNet Earnings: Productivity savings in COGS and marketing spending were more than offset by curren
Slide 19: Fabric & Home Care – Organic Sales by Category
By Category Organic Sales Growth IYA Global Developed Developing Fabric Care + ~= + Home Care ~= - + P&G Professional + + + Oct – Dec 14 (Q2 FY 15) ResultsFabric & Home Care – Organic Sales + represents growth above 1%, ~= represents growth of 1% to decline of 1%; - represents decline greater than1%
Slide 20: Global Fabric & Home Care Highlights
Fabric Care organic sales increased low single digits. Developing regions grew mid-single digits largely behind innovation, like compact liquids expansion in Middle East & Africa. Organic sales grew low single digits in Developed Markets behind unit-dose and Unstopable innovation and value investmen
Slide 21: Baby, Feminine & Family Care Segment
Oct – Dec 14 (Q2 FY 15) ResultsBaby, Feminine & Family Care Segment +1% Pricing, +3% MixOrganic Sales: h Low singles in Developed markets, h Mid-singles in DevelopingGlobal value share declined 0.7 points versus year agoNet Earnings: Pricing, mix and productivity savings were more than offset by cur
Slide 22: Baby, Feminine & Family Care – Organic Sales by Category
By Category Organic Sales Growth IYA Global Developed Developing Baby Care + + + Feminine Care + ~= + Family Care - - - Oct – Dec 14 (Q2 FY 15) ResultsBaby, Feminine & Family Care – Organic Sales + represents growth above 1%, ~= represents growth of 1% to decline of 1%; - represents decline greater
Slide 23: Global Baby, Feminine & Family Care Highlights
Baby Care organic sales increased high single digits driven by strong volume growth in the U.S and pricing to offset currency devaluation. In the U.S., value share was up 1.6 points versus year ago behind innovation driven up-tiering, with Swaddlers being the highlight, growing value share 2.8 point
Slide 24: Fiscal Year 2015 Guidance
Fiscal Year 2015 Guidance
Slide 25: FY 2015 Guidance: Organic Sales & EPS Growth
FY 2015 GuidanceOrganic Sales & EPS Growth FY’15 Organic Sales Growth Up Low to Mid-Single-Digits Currency -5% Minor brand divestitures -1% All-in Sales Growth -3% to -4% Core Earnings Per Share Growth In-Line to Down Low-Single-Digits All-in Earnings Per Share Growth Down Mid-Teens Constant $ Earni
Slide 26: FY 2015 Guidance: Cash Generation & Usage
FY 2015 GuidanceCash Generation & Usage Free Cash Flow Productivity: 90%+Capital Spending, % Sales: 4% to 5%Dividends: ~$7BShare Repurchase: $5-7B
Slide 27: Potential Headwinds Not Included in Guidance
FY 2015 GuidancePotential Headwinds Not Included in Guidance Further currency weaknessUnrest in the Middle East and Eastern EuropeFurther pricing controls and import restrictionsAny unannounced, significant portfolio movesFurther market size contraction
Slide 28: Potential Tailwinds Not Included in Guidance
FY 2015 GuidancePotential Tailwinds Not Included in Guidance Strengthening of currencies Expansion of marketsEasing in political tensionImproved consumer confidence, particularly in the U.S.
Slide 29: Reference for Batteries restatement
Reference for Batteries restatement Please refer to the press release published January 27, 2015, 7am which provides GAAP and Core (NON-GAAP) income statements and margin details related to the Batteries restatement for the below periods:Quarter ending September 30, 2013Quarter ending December 31, 2
Slide 30: P&G
P&G
Slide 31: 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,