Procter & Gamble Company (the) · NYSE:PG
Procter & Gamble Company (the) — Barclays Back-to-School Conference 2013
35 slides from Procter & Gamble Company (the)'s conference presentation, Sep 4, 2013
Slide 1: Barclays Back-to-School Conference 2013
Barclays Back-to-School Conference 2013 September 4, 2013 PeG
Slide 2: Agenda
Agenda * Results and Outlook ¢ Key Strategies and Focus Areas * Frequently Asked Questions * Q&A
Slide 3: FY 2013 Results: Organic Sales Growth
FY 2013 Results Organic Sales Growth 6% 4 5% + 4% { 3% | 2% | 1% 5 0% 3% 4% 3% 3% 1% 4 EY AO FY11 Eva FY 13
Slide 4: FY 2013 Results: Share Growth
FY 2013 Results % of Sales In-Line or Growing Value Share 70% 5 60% 5 50% 4 40% 5 AMJ12 JAS 12 OND 12 JFM 13. AMJ13
Slide 5: FY 2013 Results: Core EPS Growth
FY 2013 Results Core EPS Growth 10% - 8% + 6% | 4% 4 2% | 7% 5% 5% 0% 2% FY10 EY 14 * History adjusted for Snacks moving to Discontinued Operations. EY 13
Slide 6: FY 2013 Results: Productivity & Cost Savings
FY 2013 Results Productivity & Cost Savings Delivering Prod uctivity Goals SSE Targets COGS Savings Manufacturing Productivity Y % +2 points Non-Manufacturing Overhead Role Reduction
Slide 7: FY 2013 Results: Adjusted Free Cash Flow Productivity
FY 2013 Results Adjusted Free Cash Flow Productivity 125% 5 98% 100% + Target = 90% 715% 50% 25% 0% FY 07 Fy 08. FY 09 FY 10 Fy 12 FY 13
Slide 8: FY 2013 Results: Returning Value to Shareholders
FY 2013 Results Returning Value to Shareholders $ billions FY 413 Dividends $6.5 Share Repurchase 6.0 Value to Shareholders $12.5 % of Net Earnings 110%
Slide 9: FY 2014 Guidance: Tailwinds and Headwinds
FY 2014 Guidance Tailwinds and Headwinds Tailwinds ¢ Positive market share momentum * New innovations ¢ Productivity and Cost Savings Headwinds ¢ Weaker underlying market growth * Currency * Rapidly developing policy environment
Slide 10: FY 2014 Guidance: Organic Sales & EPS Growth
FY 2014 Guidance Organic Sales & EPS Growth | Organic Sales Growth +3% to +4% Currency -2% j All-in Sales Growth +1% to +2% | Core Earnings Per Share +5% to +7% /All- in Earnings Per Share +7% to +9%
Slide 11: FY 2014 Guidance: Front-Half vs. Back-Half
FY 2014 Guidance Front-Half vs. Back-Half Front-Half Back-Half Currency Headwind Significant Uncertain Manufacturing Start-up Costs Relatively high Annualized Venezuelan Bolivar devaluation Notin base Annualized Productivity Savings Builds throughout the year Western Europe Bleach Divestiture In bas
Slide 12: FY 2014 Guidance: Foreign Exchange
FY 2014 Guidance Foreign Exchange * 2 point top-line growth headwind « ~6 point earnings growth headwind
Slide 13: FY 2014 Guidance: Productivity
FY 2014 Guidance Productivity Cost of Goods * ~$1.4 billion in savings * ~6% manufacturing productivity improvement Overheads ¢ Reductions ahead of initial targets * Willlook to accelerate FY’'15 reductions into FY’14 Marketing * Expect spending to increase in absolute dollars, but decrease modestly
Slide 14: FY 2014 Guidance: Returning Value to Shareholders
FY 2014 Guidance Returning Value to Shareholders $ billions FY ‘14 Dividends $6.5+ Share Repurchase $5 to $7 Value to Shareholders $11.5 to $13.5 Free Cash Flow Productivity ~90% Shareholder Yield* 5% to 6% % of market cap *Shareh older Yield calculated based on market cap of about $215 billion
Slide 15: FY 2014 Guidance: Risks Not Included in Guidance
FY 2014 Guidance Risks Not Included in Guidance ¢ Unrest in Egypt ¢ Venezuela — price controls, access to Dollars for imported products, devaluation ¢ Incremental currency headwinds
Slide 16: Guidance Approach
Guidance Approach ¢ Balanced, realistic ¢ Transparent ¢ Focused on long-term shareholder value creation
Slide 17: Value Creation
Value Creation Value creation — for consumers and shareholders — is our clear priority Sales Growth Margin | Total Improvement } ~ Shareholder | Retum Asset Efficiency
Slide 18: Value Creation: Focused Strategies and Operating Plans
Value Creation Focused Strategies and Operating Plans * Core businesses ¢ Prioritized developing markets ¢« Company Portfolio e € mor |
Slide 19: Shareholder Value Co-Drivers
Shareholder Value Co-Drivers Innovation + Productivity Growth and Value Creation mor |
Slide 20: Productivity: Strengthening and Accelerating
Productivity Strengthening and Accelerating * Opportunities in all elements of cost ¢ Parallel processing on short cycle times
Slide 21: Productivity: Cost of Goods Sold
Slide 22: Productivity: Non-Manufacturing Overheads
Slide 23: Productivity: Marketing
Productivity Marketing Improve Marketing ROI: 1. Message clarity 2. Optimized media mix 3. Efficient non-media spending
Slide 24: Operating Discipline
Operating Discipline a) : * Better Execution ¢ More consistently and reliably ¢ Every day, everywhere
Slide 25: Strategic Investments
Slide 26: FY 2014 Priorities and Focus Areas
FY 2014 Priorities and Focus Areas ¢ Value creation ¢ Investin innovation and go-to-market capabilities ¢ Productivity savings * Operating discipline e € mor |
Slide 27: Key Themes
Key Themes Balanced shareho consumer value equatioi
Slide 28: Balanced Value Creation Drivers
Balanced Value Creation Drivers = y N
Slide 29: Balanced Time Horizons
Balanced Time Horizons aii a a 7 N
Slide 30: Balanced Market Strategies & Plans
Balanced Market Strategies & Plans r y N
Slide 31: Consumer Value: Pricing Contribution to Sales Growth
Consumer Value Pricing Contribution to Sales Growth 6% 4 5% + 4% + 3% + 2% + 1% 5 FY 05 SEV065-Y 07 SFY 0855 09 SEY 10 SEY 11S Y 12 Ey 13
Slide 32: Consumer Value Equations
Consumer Value Equations a z z 8 5 5
Slide 33: Consumer Value Equations
Consumer Value Equations
Slide 34: 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,
Slide 35: Reg G Reconciliation of Non-GAAP measures
The Procter & Gamble Company: Reg G Reconciliation of Non-GAAP measures In accordance with the SEC’s Regulation G, the following provides definitions of the non-GAAP measures used in Procter & Gamble's September 4, 2013 Barclays Back-to-School Conference and associated slides with the reconciliation
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