Procter & Gamble Company (the) · NYSE:PG
Procter & Gamble Company (the) — Q3 FY2015 Earnings Presentation
30 slides from Procter & Gamble Company (the)'s earnings presentation, Apr 23, 2015
Slide 1: Procter & Gamble Earnings Release: Q3 FY 2015 Results
April 23, 2015 Procter & Gamble Earnings Release:Q3 FY 2015 Results
Slide 2: Jan–Mar 2015 (Q3 FY15) Business Results
Jan – Mar 2015 (Q3 FY 15)Business Results
Slide 3: Organic Sales Growth
Jan – Mar 15 (Q3 FY 15) ResultsOrganic Sales Growth* Organic sales grew 1% with 4 of 5 reporting segments in line or growing versus prior year. 2% 3% * Restated for Batteries & PetCare 1% 2% 2%
Slide 4: Market Share
Jan – Mar 15 (Q3 FY 15) ResultsMarket Share Global value share 21% % of Sales Holding/Growing Share ~50%
Slide 5: Core EPS Growth
Jan – Mar 15 (Q3 FY 15) ResultsCore EPS Growth* Core EPS includes 410 basis points of operating margin improvement driven by productivity savings. * Restated for Batteries & Pet Care -8% 3% 22% 4%
Slide 6: Currency Neutral Core EPS Growth
Jan – Mar 15 (Q3 FY 15) ResultsCurrency Neutral Core EPS Growth* Excluding the impact of foreign exchange, currency-neutral core earnings per share increased 10% for the quarter. * Restated for Batteries & Pet Care 28%
Slide 7: Non-Core Restructuring Spending
Results To-DateNon-Core Restructuring Spending* * Restated for Pet Care & Batteries FY 15 FY 15 FY 15 ($MM Before Tax) JAS OND JFM Cost of Goods Sold 93 77 161 SG&A 2 18 92 Total Non-Core Restructuring 95 95 253
Slide 8: Health Care Segment
Business Segments Jan – Mar 15 (Q3 FY 15) ResultsHealth Care Segment +2% Pricing, +5% MixOrganic Sales: h Mid-singles in Developed markets, h Double digits in Developing Global value share declined 0.2 points versus year agoNet Earnings: Pricing, mix helps, productivity savings and a gain from a min
Slide 9: Beauty, Hair & Personal Care Segment
Jan – Mar 15 (Q3 FY 15) ResultsBeauty, Hair & Personal Care Segment +2% Pricing, -1% MixOrganic Sales: i Mid-singles in Developed markets, i Low single digits in DevelopingGlobal value share declined 0.4 points versus year agoNet Earnings: Productivity improvements and pricing were more than offset
Slide 10: Beauty, Hair & Personal Care – Organic Sales by Category
By Category Organic Sales Growth IYA Global Developed Developing Hair Care - - ~= Skin Care - - - Personal Cleansing - + - Deodorants ~= ~= + Cosmetics + + + Prestige - - - Salon Professional ~= + ~= Jan – Mar 15 (Q3 FY 15) ResultsBeauty, Hair & Personal Care – Organic Sales + represents growth abov
Slide 11: Global Beauty, Hair & Personal Care Highlights
Hair Care organic sales in Developing markets were up driven by pricing across all regions. This growth was more than offset by declines in Japan due to pre-buys in anticipation of the consumption tax increase in the base, trade inventory reductions in China and competitive activity in the U.S. Skin
Slide 12: Grooming Segment
Jan – Mar 15 (Q3 FY 15) ResultsGrooming Segment +5% Pricing, +3% MixOrganic Sales: h High singles in Developed markets, h High singles in DevelopingGlobal value share declined 0.3 points versus year agoNet Earnings: Volume growth, pricing, mix helps and productivity savings were more than offset by
Slide 13: Grooming – Organic Sales by Category
By Category Organic Sales Growth IYA Global Developed Developing Blades & Razors + + + Pre & Post Shave + + + Braun & Appliances + + + Jan – Mar 15 (Q3 FY 15) ResultsGrooming – Organic Sales + represents growth above 1%, ~= represents growth of 1% to decline of 1%; - represents decline greater than1
Slide 14: Global Grooming Highlights
Global Blades & Razors organic sales were up high single digits in Developed and Developing markets driven by the successful roll-out of the Flexball innovation, launch of Venus Swirl in the U.S. and pricing. Appliances organic sales increased high single digits driven by innovation, like the launch
Slide 15: Health Care Segment
Jan – Mar 15 (Q3 FY 15) ResultsHealth Care Segment +2% Pricing, +5% MixOrganic Sales: h Mid-singles in Developed markets, h Double digits in Developing Global value share declined 0.2 points versus year agoNet Earnings: Pricing, mix helps and productivity savings more than offset currency headwinds.
Slide 16: Health Care – Organic Sales by Category
By Category Organic Sales Growth IYA Global Developed Developing Oral Care + ~= + Personal Health Care + + + Jan – Mar 15 (Q3 FY 15) ResultsHealth Care – Organic Sales + represents growth above 1%, ~= represents growth of 1% to decline of 1%; - represents decline greater than1%.
Slide 17: Global Health Care Highlights
Oral Care organic sales increased high single digits in Developing markets, due to premium innovation and pricing. Developed markets grew behind premium innovation.Personal Health Care sales are up double digits in Developed and Developing markets behind a stronger cough/cold season than last year a
Slide 18: Fabric & Home Care Segment
Jan – Mar 15 (Q3 FY 15) ResultsFabric & Home Care Segment Flat Pricing, +1% MixOrganic Sales: i Mid-singles in Developed markets, h Mid-singles in DevelopingGlobal value share declined 0.1 points versus year agoNet Earnings: Productivity savings were more than offset by currency headwinds. Organic S
Slide 19: Fabric & Home Care – Organic Sales by Category
By Category Organic Sales Growth IYA Global Developed Developing Fabric Care - - + Home Care + ~= + P&G Professional + + + Jan – Mar 15 (Q3 FY 15) ResultsFabric & Home Care – Organic Sales + represents growth above 1%, ~= represents growth of 1% to decline of 1%; - represents decline greater than1%.
Slide 20: Global Fabric & Home Care Highlights
Fabric Care organic sales decreased low single digits. Developing markets grew mid-single digits largely behind innovation, like compact liquids expansion in the Middle East & Africa. Organic sales declined high single digits in Developed Markets due to innovation pipeline in the base period and red
Slide 21: Baby, Feminine & Family Care Segment
Jan – Mar 15 (Q3 FY 15) ResultsBaby, Feminine & Family Care Segment +2% Pricing, +2% MixOrganic Sales: h Low singles in Developed markets, h Mid-singles in DevelopingGlobal value share declined 0.6 points versus year agoNet Earnings: Pricing and productivity savings were more than offset by currency
Slide 22: Baby, Feminine & Family Care – Organic Sales by Category
By Category Organic Sales Growth IYA Global Developed Developing Baby Care + ~= + Feminine Care + + + Family Care - - - Jan – Mar 15 (Q3 FY 15) ResultsBaby, Feminine & Family Care – Organic Sales + represents growth above 1%, ~= represents growth of 1% to decline of 1%; - represents decline greater
Slide 23: Global Baby, Feminine & Family Care Highlights
Baby Care organic sales increased low single digits driven by strong volume growth in the U.S and pricing to offset currency devaluation. This was partly offset by a high base period due to the pre-buys before the consumption tax increase in Japan. In the U.S., value share was up over 1 point versus
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 Up Low Single-Digits Currency -6% to -7% Minor brand divestitures -1% All-in Sales Growth -5% to -6% Core Earnings Per Share Growth In Line to Down Low Single-Digits All-in Earnings Per Share Growth -21% to -22% Constant $ Earning
Slide 26: FY 2015 Guidance: Cash Generation & Usage
FY 2015 GuidanceCash Generation & Usage Free Cash Flow Productivity: 100%Capital Spending, % Sales: 4% to 5%Dividends: ~$7BShare Repurchase: ~$5B
Slide 27: Potential Headwinds Not Included in Guidance
FY 2015 GuidancePotential Headwinds Not Included in Guidance Further foreign currency weaknessUnrest in the Middle East and Eastern EuropeFurther pricing controls and import restrictions
Slide 28: Potential Tailwinds Not Included in Guidance
FY 2015 GuidancePotential Tailwinds Not Included in Guidance Strengthening of foreign currencies Expansion of marketsImproved consumer confidence, particularly in the U.S.
Slide 29: P&G
P&G
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,