Procter & Gamble Company (the) · NYSE:PG
Procter & Gamble Company (the) — Deutsche Bank Global Consumer Conference (June 2012)
59 slides from Procter & Gamble Company (the)'s conference presentation, Jun 20, 2012
Slide 1: Deutsche Bank Global Consumer Conference
Deutsche Bank Global Consumer Conference
Slide 2: Agenda
Agenda ¢ “Big Picture” Assessment — External & Internal * Recent Results ¢ Winning Capabilities & Assets ¢ Strategy Adjustments for Focus & Balance ¢ Business Outlook
Slide 3: “Big Picture” Assessment - Results
“Big Picture” Assessment - Results FY'10 —FY'12 ¢ Grown organic sales every year « ~5% average EPS growth ¢ Solid free cash flow productivity ¢ Continued dividend increases ¢ Strong levels of cash returned to shareholders
Slide 4: Recent Results: Organic Sales Growth
Recent Results Organic Sales Growth 6% 4 5% + 4% + 3% + 2% + 1% 5 0% -1% 1% Past 10 Quarter CAGR = 4% AMUtIh
Slide 5: Organic Sales Growth led by Developing Markets
Recent Results Organic Sales Growth led by Developing Markets Past 4 Quarters +12% Developing FY 09 FY 10 FY 11 FY 12E
Slide 6: Top Emerging Markets & P&G Sales Growth
Recent Results Top 11 Emerging Markets & P&G Sales Growth* +8pts +3pts +1pt P3 Yr Yad iis ™P&G Sales Market Value * Market & Sales Growth are on a constant currency basis
Slide 7: Developing Markets: P&G Sales Growth 2000 to 2012
Developing Markets P&G Sales Growth: 2000 to 2012 % of Total Company Sales I Developed 80% 77% Developing 63% 37% 20% ast $8 $13 bn bn FY'00 FY'05
Slide 8: P&G Regional Constant $ Value Share
Recent Results P&G Regional Constant $ Value Share P12M CYA North America 29.2 -0.7 Western Europe 18.1 CEEMEA 21.0 0.0 Asia 14.0 0.4 LA 15.3 0.3 P3M through Mar 12
Slide 9: Adjusted Free Cash Flow Productivity
Recent Results Adjusted Free Cash Flow Productivity 125% - Target = 90%+ 100% + 15% 50% 25% 0% FY 06 Fy 07 FY 08 Fy 09 FY 10 Pett FY 12 est
Slide 10: Core Operating Profit Growth
Recent Results Core Operating Profit Growth 15% 10% 5% 0% 5% -10% JAS 11 OND 11 * History adjusted for Snacks moving to Discontinued Operations. JFM 12
Slide 11: External Dynamics
External Dynamics Slow-to-no GDP growth in developed markets High unemployment levels Significant commodity cost increases Highly volatile foreign exchange rates Difficult policy dynamics (Venezuela, Argentina, etc.) > No Excuses — Need to overcome external challenges and consistently deliver with e
Slide 12: Company Dynamics
Slide 13: Innovation & Branding
Innovation & Branding ...based on deep consumer insights
Slide 14: Slide 14
Slide 15: Go-to-Market
Go-to-Market
Slide 16: Innovation, Consumer Understanding, Go-to-Market
Innovation Consumer __ Go-to- Understanding Market Noe Z% Scale Branding
Slide 17: Where to Play Choices
Where to Play Choices More Focus, Better Balance + Winin the Biggest, Most Profitable Markets (Top 40) * Winon our Biggest Innovations (Top 20) * Winin the Biggest Emerging Countries (Top 10)
Slide 18: Where to Play Choices
Where to Play Choices More Focus, Better Balance ¢ More focus on core businesses * Prioritize resources differently * Consistent execution
Slide 19: Where to Play Choices
Where to Play Choices More Focus, Better Balance * Not exiting markets we have already entered * Not pulling back on investments where we have already entered * Not stopping expansions - will enter new category/country combinations in FY ‘13
Slide 20: Continued Investments
Continued Investments Brazil Oral-B Toothpaste SaaS == eZ ea ~eaa % _ ___, Ssete —@ralB) (Oral B ) P2OSAUDE
Slide 21: New Expansions: Unbeatable Germ Protection Soap
N ew Expa ns i ons Unbeatable Germ Protection Soap” Africa Safeguard ——
Slide 22: New Expansions
New Expansions Eastern Europe Vicks
Slide 23: How to Win Choices
How to Win Choices More Focus, Better Balance * Winwith Innovation (our lifeblood, brought to life with big ideas driving superiority with claims, demos and visuals) ¢ Winwith Productivity (to fuel investment in growth and deliver bottom-line) * Winwith Excellent Execution
Slide 24: Winning Innovation: Our Lifeblood
Winning Innovation Our Lifeblood Area of high focus and investment Increase disruptive (‘change’) innovation pipeline New Business Creation ES Ye Transformative Platform Technologies (TPs) ete : _ \
Slide 25: Slide 25
Slide 26: Winning Innovation: Family Care
Winning Innovation Family Care
Slide 27: Slide 27
Slide 28: fez - squeeze & sniFF + af
fez - squeeze & sniFF + af Downy UN STOPABLES Inswash scent booster fez * squeeze & sniFF « of
Slide 29: Winning Innovation: Oral Care
Winning Innovation Oral Care
Slide 30: Winning Innovation: Oral Care
Winning Innovation Oral Care ) CLINICAL _ — CLINICAL OUR MOST ADVANCED RINSE EVER PRO-HEALTH CLINICAL PROTECTION FLOSS
Slide 31: JIHAN ZENCRI
JIHAN ZENCRI MASTER BALLC [GERONIMOBA PAX RADIANT HELPS KEEP YOUR PERIOD E, SO ALL THAT STANDS OUT.IS YOU. S: S: INVISIBLE PROTECTION mapiant vou.
Slide 32: Winning Innovation: Personal Health Care
Winning Innovation Personal Health Care | — ZzzQui NEW From the makers oi il” ( 2 NEW From the makers of S INyul! . ‘ZzzQuil — ZzzQuil NIGHTTIME SLEEP-AID NIGHTTIME SUS EAID tia Warming Fae toto : Sort erLoziimal ‘Notfortetig Cold or Fla See Warnings
Slide 33: Winning Innovation: Batteries
— DURACELiN: [Pl Bravenanceow fl DURACELL |, I ULTRA POWER {| — DURACELL’ Winning Innovation Batteries
Slide 34: Winning Innovation: Baby Care
Winning Innovation Baby Care #2 hours “of protection for beautiful mornings —
Slide 35: Winning Innovation: Male Blades & Razors
Winning Innovation Male Blades & Razors
Slide 36: Winning Innovation: Female Blades & Razors
Slide 37: OD) PoOw=r
OD) PoOw=r Gillette. Fusion. PROGLIDE
Slide 38: Winning Innovation: Hair Care
Winning Innovation Hair Care heade. o shoulders \ shoulders % Aandatshampen condone MEN a 2icl apple fresh HAIR ENDURANCE
Slide 39: Winning Innovation: Hair Care
Winning Innovation Hair Care = = oN
Slide 40: Winning Innovation: Prestige Fragrances
Winning Innovation Prestige Fragrances
Slide 41: Winning through Productivity
Winning through Productivity ¢ Strategic imperative ¢ $10 billion opportunity over 5 years Non-manufacturing Overhead $3B 10 eee af $6B Billion Goods Marketing Efficiencies
Slide 42: Winning through Focused Execution
Slide 43: The Power of One Cap
my ee THE POWER OF ONE CAP. EL PODER DE UNA TAPA. REMOVES MORE FOOD STAINS- QUITA MAS MANCHAS DE COMIDA. *Based on stain-removal performance of one dose of Tide original quid vs. ' 40aad bottle of the leading quid bargain brand base variant
Slide 44: Focused Execution: Compelling Claims & Demos
Focused Execution Compelling Claims & Demos DURACELL Note: Ad campaign in developing markets only
Slide 45: IKCOVERGIRL SS
IKCOVERGIRL SS Clumperusher by lashblast
Slide 46: Focused Execution: Compelling Claims & Demos
Focused Execution Compelling Claims & Demos 2 SHEETS LEADING ORDINARY BRAND TOWEL
Slide 47: Vertical Portfolio
Vertical Portfolio ¢ Full portfolio...up and down ¢ Each tier... = Supported by innovation = Priced competitively = Merchandised competitively Lo i) BE fe >! SD = 6ooe0e0 Price Index
Slide 48: Better Balance: Developed / Developing Markets
Better Balance Developed / Developing Markets Top 40 Focus Household Beauty & Markets Care Grooming United States 7 6 Other Developed 7 7 China 2. 4 Other Developing 4 3 Total 20 20
Slide 49: Better Balance: Top-/Bottom-line
Better Bala Top-/ Bottom-line Af
Slide 50: Better Balance: Savings / Spending
Better Balance Savings / Spending Savings Spending
Slide 51: Better Balance: Short-term / Long-term Results
Slide 52: April-June 2012 Quarter Guidance
April-June 2012 Quarter Guidance Original Update Organic Sales Growth 4% to 5% 2% to 3% Net Sales Growth 1% to 2% -1% to -2% Core EPS $0.79 to $0.85 | $0.75 to $0.79 All-In EPS $1.21 to $1.32 | $1.17 to $1.26
Slide 53: Preliminary Fiscal Year 2013 Guidance
Preliminary Fiscal Year 2013 Guidance Organic Sales Growth 2 to 4% Core EPS Growth Flat-to-Mid Single-Digits Core EPS Growth ex. FX | Mid-to-High Single-Digits
Slide 54: Preliminary Fiscal Year 2013 Guidance: Key Assumptions
Preliminary Fiscal Year 2013 Guidance Key Assumptions * Underlying market growth rates = recent pace continues * Commodity Prices = early-June spot rates * Foreign Exchange = early-June spot rates * Pension costs of ~$0.06 per share « Argentina — modest provision for disruption * Venezuela — no incr
Slide 55: Fiscal 2013 Capital Allocation
Fiscal 2013 Capital Allocation ¢ Dividends — expect to pay ~$6bn again next year; current yield ~3.5% ¢ Share repurchase — none; maintain AA- rating
Slide 56: Preliminary Fiscal Year 2013 Guidance: Bridge to Long-Term Growth Range
Preliminary Fiscal Year 2013 Guidance “Bridge” Comparison to Long-Term Growth Range Resume Share Carryover | Pricing rune Pension aS Ex. Costs | Full acer A Overhead Savings Sales Growth @Market Ex Foreign exchange +7% me EH FY'13 Long Term Core EPS Growth Mid-Point Algorithm Flexibilit
Slide 57: Leveraging P&G's core strengths
¢ Leveraging P&G's core strengths * Focusing on largest opportunities ¢ Better balanced growth, better balanced results * P&G people committed to WINNING!
Slide 58: Forward Looking Statements
Forward Looking Statements Allstaternents, other than staternents of historical fact included in this release ar presentation, are forward-looking statements, as that termis defined in the Private Securities Litigation Reform Act of 1995. Such statements are based on financial data, market assumptio
Slide 59: 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 the earnings call and slides with the reconciliation to the most closely related GAAP measure. Organic Sales Growth:
PROCTER & GAMBLE — Deutsche Bank Global Consumer Conference (June 2012) on 6ix