Procter & Gamble Company (the) · NYSE:PG
Procter & Gamble Company (the) — CAGNY Conference 2006
12 slides from Procter & Gamble Company (the)'s conference presentation, Feb 23, 2006
Slide 1: CAGNY Conference February 23, 2006
CAGNY Conference February 23, 2006 1
Slide 2: Forward Looking Statement
Forward Looking Statement 2 All statements, other than statements of historical fact included in this release, are forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995. In addition to the risks and uncertainties noted in this release, there are
Slide 3: Regulation G Disclosure
Regulation G Disclosure For full reconciliation, visit: www.pg.com/investors 3
Slide 4: High Quality Earnings Growth
High Quality Earnings Growth P&G base business tracking to ~10% Op. Income Growth and 10%+ EPS Growth Q1 '03 Q2 '03 East 0.113 0.12 0.089 0.103 1H FY'05 2H FY'05 1H FY'06 2H FY'06- E Operating Income ex. Gillette Impacts
Slide 5: Strong Cash Results
5 FY'02 FY'03 FY'04 FY'05 FY '06-E 1.55 1.51 1.19 0.94 0.9 Strong Cash Results Target 90%+ *Calculation: (Operating Cash Flow - Capital Spending)/ Net Earnings Free Cash Flow Productivity*
Slide 6: Better Business Mix Driving Growth
1 2 3 East 14 50 36 1 2 3 East 14 50 36 Better Business Mix Driving Growth FY '98 36% Health & Beauty Care Balance of Company 51% FY '06 +15% pts $ Sales 6
Slide 7: Integration Update
Integration Update Good progress on revenue and cost synergies On track with integration On track with financial targets
Slide 8: Growth Synergies
Growth Synergies $4-5 billion of value 3 yr. goal - $750 MM Achieved 1st quarter revenue synergies
Slide 9: Gillette Integration Milestones
4/06 7/06 10/06 10/05 1/06 Complete staffing decisions. All employees know their future in combined company Right Guard Divestiture Sales organization finalizes Go-To-Market Reinvention - including new "integrated" trade terms 1st wave of systems integration: 15% to 25% 2nd wave of systems integrati
Slide 10: EPS Impact on P&G
EPS Impact on P&G Cents per Share Impact FY05/06 FY06/07 FY07/08 Initial EPS dilution guidance - Current FY '06 estimate Of Which, One time Items Dilution excl. One time Items (20-26) (19-23) (9-11) (10-12) (12-18) (3-7) (9-11) ~Neutral (1-3) Accretive 10
Slide 11: EPS Impact on P&G
EPS Impact on P&G Cents per Share Impact FY05/06 FY06/07 FY07/08 Initial EPS dilution guidance - Updated FY '06 Non-cash charges Dilution excl. non-cash charges (20-26) (19-23) (8-10) (11-13) (12-18) (7-9) (5-9) ~Neutral (6-8) +6-8 11
Slide 12: Upside to Sustainable Growth Model through the End of the Decade
Upside to Sustainable Growth Model through the End of the Decade Upside Sales Growth Base Organic: +3% to +5% Gillette acceleration: +1% Tack-on acquisition: +1% All-in sales growth: +5% to +7% 2010 Operating Margin of about 24% * * Adjusted for expensing of stock options 1 Double Digit EPS Growth