Procter & Gamble Company (the) · NYSE:PG
Procter & Gamble Company (the) — Q1 2015 Earnings Presentation
29 slides from Procter & Gamble Company (the)'s earnings presentation, Oct 24, 2014
Slide 1: Procter & Gamble Earnings Release: Q1 FY 2015 Results
October 24, 2014 Procter & Gamble Earnings Release:Q1 FY 2015 Results
Slide 2: Jul – Sept 2014 (Q1 FY 15) Business Results
Jul – Sept 2014 (Q1 FY 15)Business Results
Slide 3: Organic Sales Growth
Jul – Sept 14 (Q1 FY 15) ResultsOrganic Sales Growth* Organic sales grew 2% and were in-line or ahead of year ago in all reporting segments. 4% 3% 4% * Restated for Pet Care 2% 2%
Slide 4: Market Share
Jul – Sept 14 (Q1 FY 15) ResultsMarket Share Global value share ~20% % of Sales Holding/Growing Share ~50%
Slide 5: Core EPS Growth
Jul – Sept 14 (Q1 FY 15) ResultsCore EPS Growth* Core EPS growth includes 260 basis points of operating margin improvement driven by productivity savings. * Restated for Pet Care
Slide 6: Currency Neutral Core EPS Growth
Jul – Sept 14 (Q1 FY 15) ResultsCurrency Neutral Core EPS Growth* Excluding the impact of foreign exchange, currency-neutral core earnings per share increased 9% for the quarter. * Restated for Pet Care
Slide 7: Non-Core Restructuring Spending
Results To-DateNon-Core Restructuring Spending* * Restated for Pet Care FY 15 ($MM Before Tax) JAS Cost of Goods Sold 94 SG&A 3 Total Non-Core Restructuring 97
Slide 8: Business Segments
Business Segments
Slide 9: Beauty, Hair & Personal Care Segment
Jul – Sept 14 (Q1 FY 15) Results Beauty, Hair & Personal Care Segment +1% Pricing, Flat MixOrganic Sales: Flat Developed, Flat DevelopingP&G global value share declined 0.5 points versus year agoNet Earnings: Productivity improvements and pricing were partly offset by currency headwinds. Organic Sal
Slide 10: Beauty, Hair & Personal Care – Organic Sales by Category
By Category Organic Sales Growth IYA Organic Sales Growth IYA Organic Sales Growth IYA By Category Global Developed Developing Hair Care + ~= + Skin Care - - - Personal Cleansing + - + Deodorants + + ~= Cosmetics + - + Prestige - - - Salon Professional + + + Jul – Sept 14 (Q1 FY 15) ResultsBeauty, H
Slide 11: Global Beauty, Hair & Personal Care Highlights
Hair Care organic sales were up low single digits behind growth in North America, Latin America and China. Pantene US organic sales grew mid-single digits with share about flat in the quarter and up 0.6 points in September behind the product & packaging innovation launched last January supported by
Slide 12: Grooming Segment
Jul – Sept 14 (Q1 FY 15) ResultsGrooming Segment +4% Pricing, -2% MixOrganic Sales: i Low singles Developed, h Mid-singles DevelopingP&G global value share flat versus year agoNet Earnings: Pricing and productivity improvements were partially offset by mix and FX headwinds. Flat -2% 3% Organic Sales
Slide 13: Grooming – Organic Sales by Category
By Category Organic Sales Growth IYA Organic Sales Growth IYA Organic Sales Growth IYA By Category Global Developed Developing Blades & Razors ~= - + Pre & Post Shave - - - Braun & Appliances + + ~= Jul – Sept 14 (Q1 FY 15) ResultsGrooming – Organic Sales + represents growth above 1%, ~= represents
Slide 14: Global Grooming Highlights
Blades & Razors global value share was up 0.6 points versus year ago. Organic sales growth behind innovation and pricing was offset by market volume decline in Developed regions.Appliances shipments increased due to continued leverage of key innovation like Cooltec (Japan/US) and the launch of Serie
Slide 15: Health Care Segment
Jul – Sept 14 (Q1 FY 15) ResultsHealth Care Segment +1% Pricing, +1% MixOrganic Sales: h Mid-singles Developed, h High singles Developing P&G global value share declined 0.1 points versus year agoNet Earnings grew ahead of sales behind productivity savings. Organic Sales Organic Volume Net Earnings
Slide 16: Health Care – Organic Sales by Category
By Category Organic Sales Growth IYA Organic Sales Growth IYA Organic Sales Growth IYA By Category Global Developed Developing Oral Care + + + Personal Health Care + ~= + Jul – Sept 14 (Q1 FY 15) ResultsHealth Care – Organic Sales + represents growth above 1%, ~= represents growth of 1% to decline o
Slide 17: Global Health Care Highlights
Oral Care organic sales increased high single digits driven by innovation including the new Sensi-Stop Strips in the U.S., and growth in recent toothpaste expansion markets globally.Personal Health Care sales grew versus year ago. In the U.S., volume increased behind the launch and pipeline fill of
Slide 18: Fabric & Home Care Segment
Jul – Sept 14 (Q1 FY 15) ResultsFabric & Home Care Segment -1% Pricing, Flat MixOrganic Sales: i Low singles Developed, h Mid-singles DevelopingP&G global value share increased 0.3 points versus year agoNet Earnings: Productivity savings were more than offset by pricing, mix, commodities and currenc
Slide 19: Fabric & Home Care – Organic Sales by Category
By Category Organic Sales Growth IYA Organic Sales Growth IYA Organic Sales Growth IYA By Category Global Developed Developing Fabric Care ~= - + Home Care ~= ~= + Batteries - - ~= P&G Professional + + + Jul – Sept 14 (Q1 FY 15) ResultsFabric & Home Care – Organic Sales + represents growth above 1%,
Slide 20: Global Fabric & Home Care Highlights
Fabric Care volume increased low single digits, and organic sales were flat. Value share is up 0.4 points. Europe and Asia grew mid-single digits largely behind the expansion of unit-dose and Unstopable innovations, while organic sales declined in Developed Markets due to market contraction and pric
Slide 21: Baby, Feminine & Family Care Segment
Jul – Sept 14 (Q1 FY 15) ResultsBaby, Feminine & Family Care Segment +2% Pricing, +2% MixOrganic Sales: h Low singles Developed, h High singles DevelopingP&G global value share declined 0.4 points versus year agoNet Earnings: Productivity savings and pricing more than offset currency headwinds and c
Slide 22: Baby, Feminine & Family Care – Organic Sales by Category
By Category Organic Sales Growth IYA Organic Sales Growth IYA Organic Sales Growth IYA By Category Global Developed Developing Baby Care + + + Feminine Care + + + Family Care - - - Jul – Sept 14 (Q1 FY 15) ResultsBaby, Feminine & Family Care – Organic Sales + represents growth above 1%, ~= represent
Slide 23: Global Baby, Feminine & Family Care Highlights
Baby Care organic sales increased mid-single digits behind pricing to offset devaluation in Developing regions. In the U.S., value share was up 3 points versus year ago behind continued momentum from the innovation implemented in last year’s September quarter.Feminine Care organic sales increased do
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 Low to Mid-Single Digits Currency -2% All-in Sales Growth In-line to Low Single Digits Core Earnings Per Share Growth Mid-Single Digits All-in Earnings Per Share Growth -2% to -5% Constant $ Earnings Per Share Growth Double digit
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: FY 2015 Guidance: Risks Not Included in Guidance
FY 2015 GuidanceRisks Not Included in Guidance Further currency weaknessUnrest in the Middle East and Eastern EuropeFurther pricing controls and import restrictionsAny major portfolio moves (incl. Nanfu battery JV sale)Further market size contraction
Slide 28: P&G
P&G
Slide 29: 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,