Procter & Gamble Company (the) · NYSE:PG
Procter & Gamble Company (the) — Q3 FY2020 Earnings Presentation
27 slides from Procter & Gamble Company (the)'s earnings presentation, Apr 17, 2020
Slide 1: Earnings Release Q3 FY 2020
Earnings Release Q3 FY 2020April 17, 2020
Slide 2: Business Results Q3 FY 2020
Business ResultsQ3 FY 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: Enduring Strategies: Superiority to Win with Consumers
SUPERIORITYTO WIN WITH CONSUMERS LEADING CONSTRUCTIVE DISRUPTION FOCUSED & AGILE ORGANIZATION ENDURING STRATEGIES PORTFOLIO: DAILY USE, PERFORMANCE DRIVES BRAND CHOICE PRODUCTIVITY TO FUEL INVESTMENTS Products Packaging Value New StandardOf Excellence Communication Retail Execution
Slide 5: Q3 FY 2020 Highlights
Oa EY 2020 HIGHLIGHTS Maintaining FY’20 guidance ranges for organic Sal free cash flow productivity. Adjusting all-in sales Organic sales grew +6% driven by volume ant 9 of 10 global categories grew organic sales Built aggregate share, despite temporary out- highest demand items. Focus remains on ex
Slide 6: Q3 Fiscal Year 2020 Results Summary
Q3 Fiscal Year 2020 Organic Sales Growth Organic Volume Growth Core EPS Growth Free Cash Flow Productivity Q3 FY ‘20 +6% +6% +10% 113% Currency Neutral Core EPS Growth +15%
Slide 7: Results: Organic Sales Growth
Q3 FY 2020 RESULTSORGANIC SALES GROWTH Organic sales were driven by volume and pricing. Organic volume up +6%, pricing +1% and mix flat.
Slide 8: Results: Core EPS Growth
Q3 FY 2020 RESULTSCORE EPS GROWTH Core gross margin +120 basis pointsCore operating margin +100 basis pointsTotal productivity savings +240 basis points
Slide 9: Results: Currency-Neutral Core EPS Growth
Q3 FY 2020 RESULTSCURRENCY-NEUTRAL CORE EPS GROWTH Core gross margin ex-FX +130 basis pointsCore operating margin ex-FX +180 basis points
Slide 10: Committed to Returning Value to Our Shareholders
WE’RE COMMITTED TO RETURNING VALUE TO OUR SHAREHOLDERS. 130 64 $135* YEARS YEARS BILLION’ Of dividend Of dividend Value returned to P&G L. payments, increases shareholders (past decade)" PeG Dividend per share over time: $3.03 $1.80 FyIO) FY. soFYI2) FYI3) FYI6 «=FYIS FYI6 =FYIT) ~FYI8 ~FYIS: ~FY20
Slide 11: Business Segment Results and Highlights
Business Segment Results and HighlightsQ3 FY 2020
Slide 12: Results: Beauty Segment
+2% Pricing, -2% MixGlobal value share increased 0.2 versus year agoNet Earnings: Pricing help was more than offset by negative mix from volume loss on premium SK-II brand, brand communication investments and currency headwinds. Q3 FY 2020 RESULTSBEAUTY SEGMENT
Slide 13: Results: Beauty Highlights
Hair Care organic sales increased low single digits versus year ago. North America, Europe, Latin America and APAC regions all grew organic sales mid- to high single digits driven by premium mix and strong retail execution. Greater China organic sales declined double digits primarily due to temporar
Slide 14: Results: Grooming Segment
+2% Pricing, -2% Mix Global value share increased 0.8 points versus year ago. Net Earnings: Pricing and productivity savings were more than offset by tax benefit in base year period, currency headwinds and negative geographic mix. Q3 FY 2020 RESULTSGROOMING SEGMENT
Slide 15: Results: Grooming Highlights
Grooming organic sales declined low single digits versus year ago. Shave Care organic sales declined low single digits driven by negative mix due to volume decline in North America due to limited distribution capacity. Greater China had double digit volume decline related to temporary disruption of
Slide 16: Results: Health Care Segment
+1% Pricing, +1% MixGlobal value share increased 0.8 points versus year agoNet Earnings: Innovation driven volume growth, pricing and productivity savings were partially offset by brand communication investments and currency headwinds. Q3 FY 2020 RESULTSHEALTH CARE SEGMENT
Slide 17: Results: Health Care Highlights
Oral Care organic sales increased mid-single digits versus year ago. North America sales grew mid-single digits driven by Power toothbrushes, premium toothpaste innovation and pricing. Latin America grew strong double digits driven by innovation-driven volume and pricing. Greater China declined doub
Slide 18: Results: Fabric & Home Segment
Flat Pricing, +1% MixGlobal value share increased 0.7 points versus year agoNet Earnings: Innovation-driven volume growth and productivity savings were partially offset by investments in brand communication and lower margin product mix hurt and currency headwinds. Q3 FY 2020 RESULTSFABRIC & HOME SEG
Slide 19: Results: Fabric & Home Highlights
Fabric Care organic sales grew high single digits versus year ago. Broad based growth led by premium innovation-driven volume growth across laundry and fabric enhancers. North America delivered double digit and Europe delivered mid-single digit organic sales growth led by innovation, market growth a
Slide 20: Results: Baby, Feminine and Family Care Segment
Flat Pricing, Flat MixGlobal value share declined 0.3 points versus year agoNet Earnings: Volume growth, productivity savings and commodity tailwinds were partially offset by brand communication investments, lower margin product mix hurt and currency headwinds. Q3 FY 2020 RESULTSBABY, FEMININE and F
Slide 21: Results: Baby, Feminine and Family Care Highlights
Baby Care organic sales increased low single digits with growth of premium products and increased consumer demand due to consumption behaviors and pantry stocking across North America, Europe and Asia Pacific regions partially offset by mid-single digit decline in Greater China related to temporary
Slide 22: FY 2020 Guidance
FY 2020 Guidance
Slide 23: FY 2020 Guidance: Sales
FY ‘20 Organic Sales Growth +4% to +5% All-in Sales Growth (adjusted) +3% to +4% Maintained guidance of organic sales growth guidance +4% to +5%Adjusted all-in sales growth to +3% to +4%Includes a two point negative impact from foreign exchange, partially offset by a modest positive impact from acqu
Slide 24: FY 2020 Guidance: Earnings Per Share
FY ‘20 Core EPS Growth +8% to +11% All-in EPS Growth +235% to +245% Maintained Core EPS growth to +8% to +11% Core effective tax rate range of 17% to 18% Maintained all-in EPS of +235% to +245% with the Gillette Shave Care carrying value adjustment in the base period (Q4). Impact in base is $3.03 on
Slide 25: FY 2020 Guidance: Cash Generation and Usage
Adj. Free Cash Flow Productivity: 100% Capital Spending, % Sales: 4.5% to 5.0%Dividends: Over $7.5BDirect Share Repurchase: $7 to $8B FY 2020 GuidanceCASH GENERATION AND USAGE
Slide 26: FY 2020 Guidance: Potential Headwinds Not Included in Guidance
Significant deceleration of market growth ratesSignificant currency weaknessSignificant commodity cost increasesAdditional geo-political disruptions and economic volatility FY 2020 GuidancePOTENTIAL HEADWINDS NOT INCLUDED IN GUIDANCE
Slide 27: 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,