Procter & Gamble Company (the) · NYSE:PG
Procter & Gamble Company (the) — Q4 2020 Earnings Presentation
30 slides from Procter & Gamble Company (the)'s earnings presentation, Jul 30, 2020
Slide 1: Earnings Release FY 2020 & Q4 2020 Results
Earnings Release FY 2020 & Q4 2020 ResultsJuly 30, 2020
Slide 2: Business Results Fiscal Year 2020
Business ResultsFiscal Year 2020
Slide 3: Immediate Priorities
IMMEDIATE PRIORITIES Ensuring the health and safety of the men and women of P&G around the world.Maximizing the availability of products that help people and their families with their health, hygiene and cleaning needs.Helping society meet and overcome the challenges they face.
Slide 4: Strategic Focus Areas
SUPERIORITYTO WIN WITH CONSUMERS LEADING CONSTRUCTIVE DISRUPTION FOCUSED & AGILE ORGANIZATION STRATEGIC FOCUS AREAS PORTFOLIO: DAILY USE, PERFORMANCE DRIVES BRAND CHOICE PRODUCTIVITY TO FUEL INVESTMENTS Products Packaging Value New StandardOf Excellence Communication Retail Execution
Slide 5: FY 2020 Highlights
FY 2020 HIGHLIGHTS Met or exceeded on each of the going-in targets growth, core EPS growth, free cash flow produci shareowners. Organic sales grew +6% driven by volume, pri 9 of 10 global product categories grew orgal Built aggregate value share. Focus remains on executing our strategies to deliv bo
Slide 6: Fiscal Year 2020 Organic Sales, EPS and Free Cash Flow
Fiscal Year 2020 Organic Sales Growth Organic Volume Growth Core EPS Growth Free Cash Flow Productivity FY ‘20 +6% +4% +13% 114% Currency Neutral Core EPS Growth +17%
Slide 7: Organic Sales Growth Annual Progression
ORGANIC SALES GROWTHANNUAL PROGRESSION
Slide 8: Core EPS Growth Annual Progression
CORE EPS GROWTHANNUAL PROGRESSION
Slide 9: Currency-Neutral Core EPS Growth Annual Progression
CURRENCY-NEUTRAL CORE EPS GROWTHANNUAL PROGRESSION
Slide 10: Business Results
Business ResultsQ4 FY 2020
Slide 11: Results: Organic Sales Growth
Q4 FY 2020 RESULTSORGANIC SALES GROWTH Q4 Organic sales were driven by volume, pricing and mix. Organic volume up +3%, pricing +2% and mix +1%.
Slide 12: Results: Core EPS Growth
Q4 FY 2020 RESULTSCORE EPS GROWTH Core gross margin +210 basis pointsCore operating margin +140 basis pointsTotal productivity savings +440 basis points
Slide 13: Results: Currency-Neutral Core EPS Growth
Q4 FY 2020 RESULTSCURRENCY-NEUTRAL CORE EPS GROWTH Core gross margin ex-FX +250 basis pointsCore operating margin ex-FX +190 basis points
Slide 14: Business Segment Results and Highlights
Business Segment Results and HighlightsQ4 FY 2020
Slide 15: Results: Beauty Segment
+2% Pricing, flat MixGlobal value share flat versus year agoNet Earnings: Volume growth, pricing, productivity savings and commodity tailwinds were partially offset by negative mix from volume loss on premium SK-II brand and currency headwinds. Q4 FY 2020 RESULTSBEAUTY SEGMENT
Slide 16: Beauty Segment Highlights
Beauty Segment has delivered 19 consecutive quarters of organic sales growth through Q4 FY ’20. FY ’20 organic sales grew mid-single digits versus year ago.In Q4, Hair Care organic sales increased high single digits versus year ago. North America grew double digits driven by premium product innovati
Slide 17: Results: Grooming Segment
+2% Pricing, +1% Mix Global value share decreased 1.2 points versus year ago. Net Earnings: Pricing and productivity savings were more than offset by the Boston real estate sale gain in base year period, volume decline and currency headwinds. Q4 FY 2020 RESULTSGROOMING SEGMENT
Slide 18: Results: Grooming Highlights
In FY ’20, Grooming delivered its second year of low single digit organic sales growth. In Q4, Grooming organic sales declined low single digits versus year ago. In Q4, Shave Care organic sales declined mid-single digits driven primarily by continued softness in Europe with a reduction in shaving in
Slide 19: Results: Health Care Segment
+1% Pricing, +2% MixGlobal value share increased 0.2 points versus year agoNet Earnings: Pricing and productivity savings were more than offset by small brand divestiture gains in the base period, volume decline, currency headwinds and brand communication investments. Q4 FY 2020 RESULTSHEALTH CARE S
Slide 20: Health Care Segment Highlights
Global Oral Care grew FY ‘20 organic sales mid-single digits with growth across all regions and segments.In Q4, Oral Care organic sales declined low single digits versus year ago. North America sales declined low single digits with strong growth in premium paste more than offset by continued softnes
Slide 21: Results: Fabric & Home Segment
+2% Pricing, +4% MixGlobal value share increased 0.6 points versus year agoNet Earnings: Strong volume growth, pricing, productivity savings and commodity tailwinds were partially offset by investments in brand communication and currency headwinds. Q4 FY 2020 RESULTSFABRIC & HOME SEGMENT
Slide 22: Fabric & Home Segment Highlights
Global Fabric Care grew FY ’20 organic sales high single digits with mid-to-high single digit sales growth across all four quarters driving market growth and P&G share growth. Fabric Care organic sales grew high single digits versus year ago. North America delivered double digit organic sales growth
Slide 23: Results: Baby, Feminine and Family Care Segment
+3% Pricing, +1% MixGlobal value share increased 0.1 points versus year agoNet Earnings: Volume growth, pricing, productivity savings and commodity tailwinds were partially offset by lower margin product mix hurt and currency headwinds. Q4 FY 2020 RESULTSBABY, FEMININE and FAMILY CARE SEGMENT
Slide 24: Baby, Feminine and Family Care Highlights
Baby Care organic sales declined low single digits in FY ’20 with growth in the U.S. and Greater China offset by declines in other markets. Baby Care declined high single digits in Q4. North America grew mid-single digits driven by increased demand for premium products and wipes. Greater China grew
Slide 25: FY 2021 Guidance
FY 2021 Guidance
Slide 26: FY 2021 Guidance: Sales
FY ‘21 Organic Sales Growth +2% to +4% All-in Sales Growth +1% to +3% Organic sales growth guidance +2% to +4%All-in sales growth to +1% to +3%Includes a one percent negative impact from foreign exchange. FY 2021 GuidanceSALES
Slide 27: FY 2021 Guidance: Earnings Per Share
FY ‘21 FY ’20 Base EPS used for growth rates Core EPS Growth +3% to +7% $5.12 All-in EPS Growth +6% to +10% $4.96 Core EPS growth to +3% to +7% All-in EPS of +6% to +10%Effective tax rate range of 18% to 19% FY 2021 GuidanceEARNINGS PER SHARE
Slide 28: FY 2021 Guidance: Cash Generation and Usage
Adjusted Free Cash Flow Productivity: 90% Capital Spending, % Sales: 4% to 5%Dividends: $8BDirect Share Repurchase: $6 to $8B FY 2021 GuidanceCASH GENERATION AND USAGE
Slide 29: Potential Headwinds Not Included in Guidance
Significant deceleration of market growth ratesSignificant currency weaknessSignificant commodity cost increasesAdditional geo-political disruptions and economic volatility FY 2021 GuidancePOTENTIAL HEADWINDS NOT INCLUDED IN GUIDANCE
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,