Procter & Gamble Company (the) · NYSE:PG
Procter & Gamble Company (the) — Q4 FY2017 Earnings Presentation
30 slides from Procter & Gamble Company (the)'s earnings presentation, Jul 27, 2017
Slide 1: Procter & Gamble Earnings Release: Q4 and Fiscal Year Results
* Procter & Gamble Earnings Release:Q4 and Fiscal Year ResultsJuly 27, 2017
Slide 2: Business Results Fiscal Year 2017
* Business ResultsFiscal Year 2017
Slide 3: Fiscal Year 2017 Results: Met or Exceeded Going-in Targets
* Fiscal Year 2017 ResultsMet or Exceeded Going-in Targets Measure Going-in Targets Results Delivered Organic Sales About 2% +2% Core EPS Mid-single Digits +7% Adj. Free Cash Flow Productivity 90% or better 94% Core Operating Profit Margin Small improvement +60bps Share Performance Reduce P&G growth
Slide 4: Fiscal Year 2017 Results: Organic Sales Growth
* Fiscal Year 2017 ResultsOrganic Sales Growth FY 2017 sales growth was volume driven, with organic volume growing +2%.
Slide 5: Fiscal Year 2017 Results: Core EPS Growth
* Fiscal Year 2017 ResultsCore EPS Growth FY Core operating margin was +60bps versus prior year. Productivity cost savings contributed 270 basis points of margin benefit.
Slide 6: Fiscal Year 2017 Results: Currency-Neutral Core EPS Growth
* Fiscal Year 2017 ResultsCurrency-Neutral Core EPS Growth Delivered high-single to double-digit constant currency core EPS growth in each of the last 5 years – averaging 11%.
Slide 7: Productivity Constant Currency Results
* Productivity Constant Currency Results Constant Currency 2012/13 2013/14 2014/15 2015/16 2016/17 Core EPS Growth +10% +14% +11% +7% +11% Core Gross Margin +50 bps +10 bps +90 bps +290 bps +60 bps Core Op. Margin +50 bps +150 bps +130 bps +240 bps +90 bps
Slide 8: P&G Margin Improvement FY '13 to FY '17
* P&G Margin Improvement FY ‘13 FY ‘17 Core Gross Margin 48.8% 50.8% Versus 2012/13 Constant Currency +2.0%+4.5% Core Op. Margin 19.4% 22.1% Versus 2012/13 Constant Currency +2.7%+6.1%
Slide 9: Business Results Q4 FY 2017
* Business ResultsQ4 FY 2017
Slide 10: Results: Organic Sales Growth
* Apr – Jun 17 (Q4 FY 17) ResultsOrganic Sales Growth Sales growth was volume driven, with organic volume growing +2%.
Slide 11: Results: Core EPS Growth
* Apr – Jun 17 (Q4 FY 17) ResultsCore EPS Growth Q4 Core operating margin was +210bps versus prior year including FX impact of approximately 40bps. Productivity improvements contributed 350 basis points of margin benefit.
Slide 12: Results: Currency-Neutral Core EPS Growth
* Apr – Jun 17 (Q4 FY 17) ResultsCurrency-Neutral Core EPS Growth
Slide 13: Business Segment Results and Highlights Q4 FY 2017
* Business Segment Results and HighlightsQ4 FY 2017
Slide 14: Results: Beauty Segment
* +2% Pricing, +2% MixOrganic Sales: h Low single digits in Developed markets, h High single digits in Developing marketsGlobal value share declined 0.3 points versus year agoNet Earnings: Productivity improvements, pricing and volume growth were partially offset by currency headwinds. Apr – Jun 17
Slide 15: Results: Beauty Highlights
* Hair Care organic sales grew low single digits versus year ago. Developing markets were up mid-single digits driven by pricing and growth in LA region. Developed markets were down low single digits with growth in Europe offset by competitive promotional activity in the U.S. market.Skin & Personal
Slide 16: Results: Grooming Segment
* -4% Pricing, Flat Mix Organic Sales: h Low single digits in Developed markets, i Low single digits in Developing marketsGlobal value share declined 1.3 points versus year ago. Net Earnings: Volume growth and productivity savings on COGS and marketing were more than offset by the pricing investment
Slide 17: Results: Grooming Highlights
* Grooming organic sales declined low single digits due to softness in Shave Care partially offset by double digit growth in Appliances led by innovation. Developing market sales declined low single digits versus a difficult base period comparison with growth in the high-teens. Developed market sale
Slide 18: Results: Health Care Segment
* -1% Pricing, -1% MixOrganic Sales: i Low single digits in Developed markets, h Low single digits in Developing marketsGlobal value share declined 0.4 points versus year agoNet Earnings: Volume growth and productivity improvements were more than offset by unfavorable geographic/product mix and cons
Slide 19: Results: Health Care Highlights
* Oral Care organic sales were down low single digits versus year ago. Strong growth on Power toothbrush behind premium innovation was more than offset by consumer value investments and unfavorable mix. Developed market sales decreased low single digits due to competitive activity on Paste and Devel
Slide 20: Results: Fabric & Home Care Segment
* +1% Pricing, Flat MixOrganic Sales: h Mid-single digits in Developed markets, h Mid-single digits in Developing marketsGlobal value share was in-line with year agoNet Earnings: Productivity improvements, pricing and volume growth were partially offset by currency/commodity headwinds and product mi
Slide 21: Results: Fabric & Home Care Highlights
* Fabric Care organic sales grew mid-single digits versus year ago. Developed markets increased mid-single digits behind innovation driven volume growth across Laundry and Fabric Enhancers. Developing markets increased mid-single digits driven by price increases and favorable mix. Home Care organic
Slide 22: Results: Baby, Feminine & Family Care Segment
* -2% Pricing, +1% MixOrganic Sales: Flat in Developed markets, i Low single digits in Developing marketsGlobal value share declined 0.5 points versus year agoNet Earnings: Volume growth and productivity savings were more than offset by commodity headwinds and value investments. Apr – Jun 17 (Q4 FY
Slide 23: Results: Baby, Feminine & Family Care Highlights
* Baby Care organic sales declined low single digits versus year ago. Developed markets were down low single digits with consumer value investments on Taped Diapers partially offset by strong growth on Pants across markets. Developing markets were down mid-single digits with growth in LA and India o
Slide 24: FY 2018 Guidance
* FY 2018 Guidance
Slide 25: FY 2018 Guidance: Sales
* FY ‘18 Organic Sales Growth +2% to +3% Currency, acquisitions & divestitures and India Goods & Services Tax Implementation 0% to 0.5% All-in Sales Growth Around 3% Organic sales up 2% to 3%Expect all-in sales of around 3% FY 2018 GuidanceSales
Slide 26: FY 2018 Guidance: Core EPS
* FY ‘18 Core EPS Growth 5% to 7% All-in EPS Growth -26% to -28% Core EPS growth of 5% to 7%Core operating profit growth of 5% to 6%Expect net impact of interest expense, interest income, and other non-operating income to be a 1 to 2 point headwind on core EPS growth. Core effective tax rate roughly
Slide 27: FY 2018 Guidance: Cash Generation & Usage
* Adjusted Free Cash Flow Productivity: 90%+Capital Spending, % Sales: 5% to 5.5%Dividends: ~$7.5BDirect Share Repurchase: $4 to $7B FY 2018 GuidanceCash Generation & Usage
Slide 28: FY 2018 Guidance: Potential Headwinds Not Included in Guidance
* Significant deceleration of market growth rates Further political and economic volatilitySignificant foreign currency weaknessFurther commodity cost increases FY 2018 GuidancePotential Headwinds Not Included in Guidance
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 base