39 slides from Procter & Gamble Company (the)'s earnings presentation, Aug 1, 2014
Slide 1: Procter & Gamble Earnings Release: FY 2014 & Q4 FY 2014 Results
August 1, 2014 Procter & Gamble Earnings Release:FY 2014 & Q4 FY 2014 Results
Slide 2: Fiscal Year 2014 Business Results
Fiscal Year 2014Business Results
Slide 3: Fiscal Year 2014 Results: Organic Sales Growth
Fiscal Year 2014 ResultsOrganic Sales Growth* 3% 3% 3% * Restated for Pet Care
Slide 4: Fiscal Year 2014 Results: Core EPS Growth
Fiscal Year 2014 ResultsCore EPS Growth* * Restated for Pet Care
Slide 5: Returning Value to Shareholders
Returning Value to Shareholders $ billions FY 2014 Past 10 FY’s Dividends 6.9 51.1 Share Repurchase 6.0 52.9* Value to Shareholders 12.9 104.0 % of Net Earnings 110% 97% * Excludes Gillette repurchases
Slide 6: Apr - Jun 2014 (Q4 FY 14) Business Results
Apr - Jun 2014 (Q4 FY 14)Business Results
Slide 7: Results: Organic Sales Growth
Apr – Jun 14 (Q4 FY 14) ResultsOrganic Sales Growth* Organic sales grew 2% in a very challenging macro environment. 2% 4% 4% 4% 3% * Restated for Pet Care
Slide 8: Results: Core EPS Growth
Apr – Jun 14 (Q4 FY 14) ResultsCore EPS Growth* Core EPS growth includes 170 basis points of operating margin improvement driven by productivity savings. * Restated for Pet Care
Slide 9: Results: Currency Neutral Core EPS Growth
Apr – Jun 14 (Q4 FY 14) ResultsCurrency Neutral Core EPS Growth* Excluding the impact of foreign exchange, currency-neutral core earnings per share increased 25% for the quarter. * Restated for Pet Care
Slide 10: Fiscal Year 2014 Non-Core Restructuring Spending
Fiscal Year 2014Non-Core Restructuring Spending* FY 14 FY 14 FY 14 FY 14 FY 14 ($MM Before Tax) JAS OND JFM AMJ TOTAL Cost of Goods Sold 62 52 90 100 304 SG&A 4 34 45 53 136 Total Non-Core Restructuring 66 86 135 153 440 * Restated for Pet Care
Slide 11: Business Segments
Business Segments
Slide 12: Results: Beauty Segment
Apr – Jun 14 (Q4 FY 14) ResultsBeauty Segment Flat Pricing, Flat MixOrganic Volume: i Mid-singles Developed, i Low singles DevelopingP&G global value share declined 0.4 points versus year agoNet Earnings include the the sale of the Latin American Pert business. Salon and Prestige grew above segment
Slide 13: Beauty Segment: Organic Volume Growth by Category
By Category Organic Volume Growth IYA Organic Volume Growth IYA Organic Volume Growth IYA By Category Global Developed Developing Hair Care - - - Skin Care - - - Personal Cleansing - - - Deodorants ++ - ++ Cosmetics ~= + - Prestige + ~= ++ Salon Professional - - - Apr – June 14 (Q4 FY 14) ResultsBea
Slide 14: Beauty Category Highlights
Hair Care organic sales were down slightly with growth in Head & Shoulders behind the Fresh Scent technology innovation mainly off-set by declines in Rejoice and Nice N Easy. Pantene organic global sales were flat.Skin Care volume declined as U.S. shipments growth behind the Q3 launches of Olay Rege
Slide 15: Results: Grooming Segment
Apr – Jun 14 (Q4 FY 14) ResultsGrooming Segment +6% Pricing, -1% MixOrganic Volume: Flat Developed, h Low singles DevelopingP&G global value share declined 0.1 points versus year agoStrong sales growth and productivity improvements drove Net Earnings. 7% 2% 19%
Slide 16: Grooming Segment: Organic Volume Growth by Category
By Category Organic Volume Growth IYA Organic Volume Growth IYA Organic Volume Growth IYA By Category Global Developed Developing Blades & Razors + ~= + Pre & Post Shave - - ~= Braun & Appliances ~= ~= ++ Apr – Jun 14 (Q4 FY 14) ResultsGrooming Segment ++ represents growth above 3%, + represents gro
Slide 17: Global Grooming Highlights
Blades & Razors volume, sales and global value share were up versus year ago. Shipments were strong in Western Europe, Central & Eastern Europe the Middle East & Africa and Latin America largely due to marketing and product innovation supporting the FIFA World Cup. North America Blades & Razors volu
Slide 18: Results: Health Care Segment
Apr – Jun 14 (Q4 FY 14) ResultsHealth Care Segment Flat Pricing, +1% Mix Organic Volume: i Low singles Developed, Flat Developing P&G global value share increased 0.3 points versus year agoNet Earnings: Productivity savings were more than offset by end of year partnership true up expenses. Organic S
Slide 19: Health Care: Organic Volume Growth by Category
By Category Organic Volume Growth IYA Organic Volume Growth IYA Organic Volume Growth IYA By Category Global Developed Developing Oral Care ~= ~= ~= Personal Health Care - - - Apr – Jun 14 (Q4 FY 14) ResultsHealth Care ++ represents growth above 3%, + represents growth of 2-3%, ~= represents growth
Slide 20: Global Health Care Highlights
Oral Care shipments increased low single digits, and global value share was up nearly 0.5 points. Strong growth in Western Europe and in Central & Eastern Europe, Middle East & Africa from the expansion markets was partially off-set by continued challenges in China.Personal Health Care volume declin
Slide 21: Results: Fabric & Home Care Segment
Apr – Jun 14 (Q4 FY 14) ResultsFabric & Home Care Segment -1% Pricing, Flat MixOrganic Volume: Flat Developed, h Mid-singles DevelopingP&G global value share increased 0.1 points versus year agoNet Earnings: Productivity savings were more than offset by currency headwinds. Organic Sales Organic Volu
Slide 22: Fabric & Home Care: Organic Volume Growth by Category
By Category Organic Volume Growth IYA Organic Volume Growth IYA Organic Volume Growth IYA By Category Global Developed Developing Fabric Care + - ++ Home Care ~= ~= + Batteries ++ ++ ~= P&G Professional ++ ++ ++ Apr – Jun 14 (Q4 FY 14) ResultsFabric & Home Care ++ represents growth above 3%, + repre
Slide 23: Global Fabric & Home Care Highlights
Fabric Care volume increased low single digits led by strong volume and share growth in Greater China behind the launch of the single-chamber unit dose and Ariel powder and liquid detergent focused growth plans. U.S. Fabric Care value share grew for the month of June with Tide up nearly 1.5 share po
Slide 24: Results: Baby, Feminine & Family Care Segment
Apr – Jun 14 (Q4 FY 14) ResultsBaby, Feminine & Family Care Segment +3% Pricing, Flat MixOrganic Volume: i Low singles Developed, h Mid-singles DevelopingP&G global value share declined 0.4 points versus year agoNet Earnings: Productivity savings were more than offset by currency headwinds. Organic
Slide 25: Baby, Feminine & Family Care: Organic Volume Growth by Category
By Category Organic Volume Growth IYA Organic Volume Growth IYA Organic Volume Growth IYA By Category Global Developed Developing Baby Care + ~= + Feminine Care ~= - ++ Family Care - - ++ Apr – Jun 14 (Q4 FY 14) ResultsBaby, Feminine & Family Care ++ represents growth above 3%, + represents growth o
Slide 26: Global Baby, Feminine & Family Care Highlights
Baby Care organic sales were up high single digits with the fastest growth in the U.S. and Latin America. In the U.S., value share was up 1.5 points versus year ago behind continued momentum from the innovation and pricing implemented across the line-up in the September quarter.Feminine Care volume
Slide 27: Fiscal Year 2015 Guidance
Fiscal Year 2015 Guidance
Slide 28: FY 2015 Key Drivers of Value Creation
FY 2015 Key Drivers of Value Creation: InnovationProductivityFocus TSR
Slide 29: FY 2015 Guidance: Organic Sales & EPS Growth
FY 2015 GuidanceOrganic Sales & EPS Growth – No Change FY’15 Organic Sales Growth Low to Mid-Single Digits Currency -1% All-in Sales Growth Low Single Digits Core Earnings Per Share Growth Mid-Single Digits All-in Earnings Per Share Growth Mid-Single Digits
Slide 30: 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 31: 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 movesFurther market size contraction
Slide 32: Reference: Selected Financial Information, Restatement for Pet Care
ReferenceSelected Financial InformationRestatement for Pet Care
Slide 33: Selected Financial Information: Q1
Reference Selected Financial InformationRestatement for Pet Care Q1 Amounts in Millions Except Per Share Amounts Three Months Ending September 30 Three Months Ending September 30 Three Months Ending September 30 Three Months Ending September 30 Amounts in Millions Except Per Share Amounts GAAP GAAP
Slide 34: Selected Financial Information: Q2
Reference Selected Financial InformationRestatement for Pet Care Q2 Amounts in Millions Except Per Share Amounts Three Months Ending December 31 Three Months Ending December 31 Three Months Ending December 31 Three Months Ending December 31 Amounts in Millions Except Per Share Amounts GAAP GAAP CORE
Slide 35: Selected Financial Information: Q3
Reference Selected Financial InformationRestatement for Pet Care Q3 Amounts in Millions Except Per Share Amounts Three Months Ending March 31 Three Months Ending March 31 Three Months Ending March 31 Three Months Ending March 31 Amounts in Millions Except Per Share Amounts GAAP GAAP CORE (NON-GAAP)
Slide 36: Selected Financial Information: Q4
Reference Selected Financial InformationRestatement for Pet Care Q4 Amounts in Millions Except Per Share Amounts Three Months Ending June 30 Three Months Ending June 30 Three Months Ending June 30 Three Months Ending June 30 Amounts in Millions Except Per Share Amounts GAAP GAAP CORE (NON-GAAP) CORE
Slide 37: Selected Financial Information: FY
Reference Selected Financial InformationRestatement for Pet Care FY Amounts in Millions Except Per Share Amounts Twelve Months Ending June 30 Twelve Months Ending June 30 Twelve Months Ending June 30 Twelve Months Ending June 30 Amounts in Millions Except Per Share Amounts GAAP GAAP CORE (NON-GAAP)
Slide 38: P&G
P&G
Slide 39: 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,