23 slides from Procter & Gamble Company (the)'s earnings presentation, Oct 25, 2016
Slide 1: Procter and Gamble Earnings Release: Q1 FY 2017 Results
Procter and Gamble Earnings Release:Q1 FY 2017 ResultsOctober 25, 2016
Slide 2: Business Results Q1 FY 2017
Business ResultsQ1 FY 2017
Slide 3: Jul – Sept (Q1 FY17) Results: Organic Sales Growth
Jul — Sept 16 (Q1 FY 17) Results Organic Sales Growth 9 3%, Sales growth was volume driven, with organic 3% volume growing +3%. 2% 2% 2% 4 1% 4 he 1% I 0% DD -1% 4 JAS 15 OND 15 JFM 16 AMJ 16 JAS 16
Slide 4: Jul – Sept (Q1 FY17) Results: Core EPS Growth
Jul - Sept 16 (Q1 FY 17) Results Core EPS Growth 20% 5 Q1 Core operating margin was up 20 basis points due to improvementin core © gross margin driven by cost savings and volume growth leverage partially offset by marketing investments and currency headwinds. 10% + 9% ES] -1% -3% -15% 0% ———— i -10%
Slide 5: Jul – Sept (Q1 FY17) Results: Currency-Neutral Core EPS Growth
Jul – Sept 16 (Q1 FY17) ResultsCurrency-Neutral Core EPS Growth
Slide 6: Business Segment Results and Highlights Q1 FY 2017
Business Segment Results and HighlightsQ1 FY 2017
Slide 7: Beauty Segment Results
+1% Pricing, +1% MixOrganic Sales: h Low single digits in Developed markets, h Mid-single digits in Developing marketsGlobal value share declined 0.7 points versus year agoNet Earnings: Productivity improvements and pricing benefits were more than offset by marketing and overhead investments and cur
Slide 8: Beauty Highlights
Hair Care organic sales grew low single digits versus year ago. Developing markets were up low single digits driven by LA growth partially offset by competitive activity and Rejoice brand softness in other developing markets. Developed markets were flat with Pantene and Head and Shoulders growth off
Slide 9: Grooming Segment Results
+1% Pricing, flat Mix Organic Sales: i Low single digits in Developed markets, h Double digits in Developing marketsGlobal value share declined 0.1 points versus year agoNet Earnings: Pricing and productivity improvements were partially offset by marketing investments and currency headwinds. Jul – S
Slide 10: Grooming Highlights
Grooming organic sales grew low single digits driven by pricing, innovation-driven volume growth from Mach3 upgrade and Fusion ProShield, premium product mix in Appliances and pricing. Developing market sales grew double digits driven by premium innovation and price increases. Developed market sales
Slide 11: Health Care Segment Results
+1% Pricing, +1% MixOrganic Sales: h Mid-single digits in Developed markets, h Double digits in Developing marketsGlobal value share declined 0.3 points versus year agoNet Earnings: Strong volume growth, productivity improvements, and pricing were partially offset by currency headwinds and a base pe
Slide 12: Health Care Highlights
Oral Care organic sales were up mid-single digits versus year ago. Developed market sales increased low single digits driven by growth in power toothbrushes as well as favorable form mix. Developing markets increased high single digits behind volume growth and mix help across Power, Paste and Manual
Slide 13: Fabric & Home Care Segment Results
-1% Pricing, +1% MixOrganic Sales: h Mid-single digits in Developed markets, h Low single digits in Developing marketsGlobal value share was flat versus year agoNet Earnings: Productivity improvements, volume growth and mix help were more than offset by currency headwinds, pricing, marketing investm
Slide 14: Fabric & Home Care Highlights
Fabric Care organic sales grew mid-single digits. Developed markets increased high single digits driven by increased marketing support and strong innovation in the U.S. across laundry and FE. Developing markets were flat as price increases and new compact liquid detergent launches were offset by com
Slide 15: Baby, Feminine & Family Care Segment Results
-1% Pricing, -1% MixOrganic Sales: Flat in Developed markets, h High single digits in Developing marketsGlobal value share declined 0.5 points versus year agoNet Earnings: Productivity improvements, lower commodity costs and volume increases were more than offset by pricing, currency headwinds and m
Slide 16: Baby, Feminine & Family Care Highlights
Baby Care organic sales increased low single digits. Developed markets were down low single digits as strong growth on Pampers was more than offset by challenges on Luvs in NA and strong volume in Europe was offset by pricing competitiveness investments. Developing markets grew high single digits le
Slide 17: FY 2017 Guidance
FY 2017 Guidance
Slide 18: FY 2017 Guidance: Sales
FY ‘17 Organic Sales Growth Around 2% Currency & minor brand divestitures ~1% All-in Sales Growth Around 1% Expecting organic sales growth of around 2%.Expect all-in sales growth to be about 1% versus FY 2016. FY 2017 GuidanceSales
Slide 19: FY 2017 Guidance: Earnings Per Share
FY ‘17 Core EPS Growth Up Mid-Single Digits All-in EPS Growth +45% to +50% * The Beauty businesses recently divested to Coty are accounted for as discontinued operations. All-in guidance includes a substantial gain estimate for the divestiture of 41 beauty brands to Coty Inc. Expect Core EPS growth
Slide 20: FY 2017 Guidance: Cash Generation & Usage
Adjusted Free Cash Flow Productivity: 90%+Capital Spending, % Sales: 5% to 5.5%Dividends: $7B+Share reduction from Coty Transaction: $9.4BDirect Share Repurchase: $5B+ FY 2017 GuidanceCash Generation & Usage
Slide 21: FY 2017 Guidance: Potential Headwinds Not Included in Guidance
FY 2017 GuidancePotential Headwinds Not Included in Guidance Significant deceleration of market growth rates Further political and economic volatilityFurther foreign currency weaknessFurther commodity cost increases
Slide 22: P&G
P&G
Slide 23: 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,