Procter & Gamble Company (the) · NYSE:PG
Procter & Gamble Company (the) — Merger or Acquisition (February 2005)
88 slides from Procter & Gamble Company (the)'s merger presentation, Feb 8, 2005
Slide 1: James M. Kilts Associates Meeting
James M. Kilts Associates Meeting February 4,
Slide 2: It's a historic time
It’s a historic time But … it’s also a sad time We’ve been an independent company for 100+ years We have a proud heritage Most of all … it’s an exciting time We are joining a tremendous partner to create the world’s best consumer products company 1 Gillette – Procter & Gamble
Slide 3: Congratulations on a GREAT YEAR
Congratulations on a GREAT YEAR!! 2 Let Me Start By Saying ...
Slide 4: 2004 – Total Year Performance
* Continuing Operations 3 Net Sales +13% Profit from Operations +23% Net Income +23% Earnings per Share +25% 2004 – Total Year Performance
Slide 5: The Gillette Company Performance
Record Results for the Sixth Consecutive Quarter And Second Consecutive Year 4 The Gillette Company Performance
Slide 6: You Can Be Very Proud
Pumped new life into our company … since those dark days of early 2001 Reinvigorated our brands Set the stage for the future success of our business as part of P&G You did all of this professionally … and with great respect for each other and our values 5 The Gillette Company You Can Be Very Proud
Slide 7: The months ahead will bring change
The months ahead will bring change … which is never easy You can view change as a problem or an opportunity For the vast majority of Gillette associates … this merger will mean expanded opportunities in a thriving company Many of you will rise in the management ranks of the combined company 6 Gillet
Slide 8: P&G wants to field the best possible team
P&G wants to field the best possible team … with members from BOTH companies 7 Gillette – Procter & Gamble
Slide 9: There will be job losses
There will be job losses Estimated at approximately 4% of the combined company’s workforce of 140,000 Many will occur at the corporate office … but NO decisions have been made We’ve implemented special severance protection Change of control measures Fully vested stock option plan P&G wants to field
Slide 10: You will receive full communications
You will receive full communications Updates will be given on a regular basis A special employee website will be created I will stay on for at least a year To guide the integration To ensure continued Gillette business momentum We will be forthright and fully supportive in handling the transition in
Slide 11: Associates Meeting
Associates Meeting February 4,
Slide 12: AG Lafley, Chairman, President and CEO
AG Lafley Chairman, President and Chief Executive
Slide 13: (Ee, Pea
(Ee, Pea
Slide 14: Slide 14
Slide 15: Rationale
Rationale This deal makes sense strategically
Slide 16: Rationale: grow faster together
This deal makes sense strategically We can grow faster together Rationale
Slide 17: Rationale: more productive, better value
This deal makes sense strategically We can grow faster together We can be more productive and offer better consumer value together Rationale
Slide 18: Rationale: collaborate and innovate
This deal makes sense strategically We can grow faster together We can be more productive and offer better consumer value together We can collaborate and innovate better and faster together Rationale
Slide 19: Rationale: greater scale
This deal makes sense strategically We can grow faster together We can be more productive and offer better consumer value together We can collaborate and innovate better and faster together We can create greater scale together Rationale
Slide 20: Local Impact
Local Impact
Slide 21: Local Impact
Local Impact • We will do what’s right for:
Slide 22: Local Impact
Local Impact We will do what’s right for: Consumers and customers
Slide 23: Local Impact
Local Impact We will do what’s right for: Consumers and customers Shareholders
Slide 24: Local Impact
Local Impact We will do what’s right for: Consumers and customers Shareholders Employees over the long term
Slide 25: Local Impact
Local Impact We will do what’s right for: Consumers and customers Shareholders Employees over the long term • We will maintain a presence in Boston
Slide 26: Local Impact
Local Impact We will do what’s right for: Consumers and customers Shareholders Employees over the long term We will maintain a presence in Boston We will sustain commitment to community service
Slide 27: Integration Principles
Integration Principles
Slide 28: Integration Principles
Integration Principles We will field the best team
Slide 29: Integration Principles
Integration Principles We will field the best team We will communicate openly
Slide 30: Integration Principles
Integration Principles We will field the best team We will communicate openly We will treat every employee with respect
Slide 31: Gillette and P&G
Gillette and P&G
Slide 32: Gillette and P&G
Gillette and P&G Both improving lives
Slide 33: Gillette and P&G
Gillette and P&G Both improving lives Both brand-builders
Slide 34: Gillette and P&G
Gillette and P&G Both improving lives Both brand-builders Both innovators
Slide 35: Gillette and P&G
Gillette and P&G Both improving lives Both brand-builders Both innovators Both strong retail partners
Slide 36: Gillette and P&G
Gillette and P&G Both improving lives Both brand-builders Both innovators Both strong retail partners Both industry supply chain leaders
Slide 37: Gillette and P&G
Gillette and P&G Both improving lives Both brand-builders Both innovators Both strong retail partners Both industry supply chain leaders Both with values
Slide 38: Gillette and P&G
Gillette and P&G Both improving lives Both brand-builders Both innovators Both strong retail partners Both industry supply chain leaders Both with values Both known for outstanding people
Slide 39: Gillette and P&G
Gillette and P&G Both improving lives Both brand-builders Both innovators Both strong retail partners Both industry supply chain leaders Both with values Both known for outstanding people Both world class companies
Slide 40: Years
168 Years `29
Slide 41: Why Has P&G Endured?
Purpose-driven and values-led Embracing and leading change Power of branding and innovation Long term growth Why Has P&G Endured?
Slide 42: Improving consumers' everyday lives
Improving consumers’ everyday lives
Slide 43: Two Moments of Truth
Two Moments of Truth
Slide 44: P&G Values
33 P&G Values Leadership Ownership Integrity Passion for Winning Trust P&G Values
Slide 45: P&G Purpose and Gillette Vision
34 The Gillette Company’s Vision is to build Total Brand Value by innovating to deliver consumer value and customer leadership faster, better and more completely than our competition. P&G Purpose Gillette Vision We will provide branded products and services of superior quality and value that improve
Slide 46: P&G Values and Gillette Values
35 ACHIEVEMENT We are dedicated to the highest standards of achievement in all areas of our business. We strive to consistently exceed the expectations of both external and internal customers. INTEGRITY Mutual respect and ethical behavior are the basis for our relationships with colleagues, customer
Slide 47: Leading Change
Leading Change
Slide 48: Leading Change
Leading Change
Slide 49: Leading Change: Brand Management
Leading Change Brand Management
Slide 50: Leading Change: Category Management
Leading Change Brand Management Category Management
Slide 51: Leading Change: Customer Business Development
Leading Change Brand Management Category Management Customer Business Development
Slide 52: Leading Change: Product Supply
Leading Change Brand Management Category Management Customer Business Development Product Supply
Slide 53: Leading Change: Global Business Services
Leading Change Brand Management Category Management Customer Business Development Product Supply Global Business Services
Slide 54: Leading Change: Employee Benefits
Leading Change Brand Management Category Management Customer Business Development Product Supply Global Business Services Employee Benefits
Slide 55: Leading Change: Consumer Marketing
Leading Change Brand Management Category Management Customer Business Development Product Supply Global Business Services Employee Benefits Consumer Marketing
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Slide 57: Slide 57
Slide 58: Slide 58
Slide 59: Slide 59
Slide 60: Slide 60
Slide 61: P&G Billion-Dollar Brands
50 P&G Billion-Dollar Brands
Slide 62: VIDEO: P&G Billion Dollar Brands
VIDEO P&G Billion Dollar Brands
Slide 63: P&G Values and Gillette Values
52 ACHIEVEMENT We are dedicated to the highest standards of achievement in all areas of our business. We strive to consistently exceed the expectations of both external and internal customers. INTEGRITY Mutual respect and ethical behavior are the basis for our relationships with colleagues, customer
Slide 64: Gillette Founders, P&G Founders
Gillette Founders P&G Founders
Slide 65: Slide 65
Slide 66: Foundation for Success
Foundation for Success Complementary core strengths
Slide 67: Foundation for Success
Foundation for Success Complementary core strengths “Connect and Develop” capability
Slide 68: Foundation for Success
Foundation for Success Complementary core strengths “Connect and Develop” capability Consumer understanding
Slide 69: Foundation for Success
Foundation for Success Complementary core strengths “Connect and Develop” capability Consumer understanding Customer business development and in-store execution
Slide 70: Greater Scale Advantages
Greater Scale Advantages Growth Scale, Margin Branding, Innovation
Slide 71: P&G Organization Structure
Health, Baby and Family Care Household Corporate Functions (CF) Global Business Services (GBS) 60 Beauty Care P&G Organization Structure Global Business Units (GBUs) Market Development Organizations (MDOs)
Slide 72: Global Business Units: Beauty Care
61 Beauty Care Global Business Units
Slide 73: Global Business Units
Beauty Care Health, Baby and Family Care 62 Global Business Units
Slide 74: Global Business Units
Beauty Care Health, Baby and Family Care Household 63 Global Business Units
Slide 75: Global Business Units
Beauty Care Health, Baby and Family Care Household 64 Global Business Units Long-term global strategy Consumer understanding Brand equity development Product innovation/design Product sourcing and manufacturing New business development
Slide 76: Market Development Organizations (MDOs)
65 Market Development Organizations (MDOs) North America Latin America Western Europe Central and Eastern Europe, Middle East and Africa Greater China Northeast Asia ASEAN, Australasia & India
Slide 77: Global Business Services
66 Accounting Employee benefits Payroll Order management Product logistics Systems operations Global Business Services
Slide 78: Corporate Functions
67 Consumer and Market Knowledge Customer Business Development External Relations Finance Human Resources Information Technology Legal Marketing Product Supply Research & Development Consumer and Market Knowledge Customer Business Development External Relations Finance Human Resources Information Te
Slide 79: P&G Organization Structure
Beauty Care Health, Baby and Family Care Household 68 Global Business Services (GBS) Corporate Functions (CF) P&G Organization Structure Market Development Organizations (MDOs) Global Business Units (GBUs)
Slide 80: (Ee, Pea
(Ee, Pea
Slide 81: Ravi Chaturvedi, President Northeast Asia
Ravi Chaturvedi President Northeast Asia
Slide 82: Shantanu Khosla, Vice President India and Personal Health Care
Shantanu Khosla Vice President India and Personal Health Care ASEAN, Australasia and India
Slide 83: Bill Reina, Global and North America Talent Supply
Bill Reina Global and North America Talent Supply
Slide 84: Carsten Fischer, President Professional Care
Carsten Fischer President Professional Care
Slide 85: Diane Hirakawa, Vice President Research and Development Pet Health and Nutrition
Diane Hirakawa Vice President Research and Development Pet Health and Nutrition
Slide 86: (Ee, Pea
(Ee, Pea
Slide 87: VIDEO: P&G Touching Lives
VIDEO P&G Touching Lives….
Slide 88: Additional Information and Where to Find It
Additional Information and Where to Find it In connection with the proposed merger, The Procter & Gamble Company (“P&G”) and The Gillette Company (“Gillette”) will file a joint proxy statement/prospectus with the Securities and Exchange Commission. INVESTORS AND SECURITY HOLDERS ARE ADVISED TO READ
Procter & Gamble — Merger or Acquisition (February 2005) on 6ix