Procter & Gamble Company (the) · NYSE:PG
Procter & Gamble Company (the) — FY2021 Earnings Presentation
34 slides from Procter & Gamble Company (the)'s earnings presentation, Jul 30, 2021
Slide 1: Earnings Release FY & Q4 2021 Results
Earnings Release FY & Q4 2021 ResultsJuly 30, 2021
Slide 2: Strategic Priorities
StrategicPriorities
Slide 3: Immediate Priorities
IMMEDIATE PRIORITIES Ensuring the health and safety of our P&G colleagues around the world.Maximizing the availability of products we produce to help people and their families with their cleaning, health and hygiene needs.Supporting communities, relief agencies and people who are on the front lines
Slide 4: Strategic Focus Areas
SUPERIORITYTO WIN WITH CONSUMERS LEADING CONSTRUCTIVE DISRUPTION FOCUSED & AGILE ORGANIZATION STRATEGIC FOCUS AREAS PORTFOLIO: DAILY USE, PERFORMANCE DRIVES BRAND CHOICE PRODUCTIVITY TO FUEL INVESTMENTS Products Packaging Value New StandardOf Excellence Communication Retail Execution
Slide 5: Business Results Fiscal Year 2021
Business ResultsFiscal Year 2021
Slide 6: FY 2021 Highlights
FY 2021 HIGHLIGHTS Exceeded each of our going-in targets for the year, organic sales ‘growth core EPS growth, free cash flow productivity & cash return: to ‘shareowners Organic sales grew +6% driven by volume, pricing and mix. f Each of our 10 product categories grew or held eer sales: Aggregate mar
Slide 7: Fiscal Year 2021 Results
Organic Sales Growth Organic Volume Growth Core EPS Growth Free CashFlow Productivity FY ‘21 +6% +3% +11% 107% Currency Neutral Core EPS Growth +11% Fiscal Year 2021 RESULTS
Slide 8: Organic Sales Growth Annual Progression
ORGANIC SALES GROWTHANNUAL PROGRESSION FY ‘21 organic sales were driven by volume, pricing & mix.Organic volume +3%, pricing +1% and mix +2%.
Slide 9: Core EPS Growth Annual Progression
CORE EPS GROWTHANNUAL PROGRESSION Core gross margin +20 basis pointsCore operating margin +80 basis pointsTotal productivity savings +250 basis points
Slide 10: Currency Neutral Core EPS Growth Annual Progression
Core gross margin ex-FX +60 basis pointsCore operating margin ex-FX +130 basis points CURRENCY NEUTRAL CORE EPS GROWTHANNUAL PROGRESSION
Slide 11: Business Results Q4 FY 2021
Business ResultsQ4 FY 2021
Slide 12: Q4 FY 2021 Results
Organic Sales Growth Organic Volume Growth Core EPS Growth Free CashFlow Productivity Q4 FY ‘21 +4% +1% -3% 117% Currency Neutral Core EPS Growth -4% Q4 FY 2021 RESULTS
Slide 13: Organic Sales Growth Q4 FY 2021
Organic volume, pricing and mix each contributed more than one-point organic sales. ORGANIC SALES GROWTHQ4 FY 2021 RESULTS
Slide 14: Core EPS Growth Q4 FY 2021
Core gross margin -260 basis pointsCore operating margin -230 basis pointsTotal productivity savings +320 basis points CORE EPS GROWTHQ4 FY 2021 RESULTS
Slide 15: Currency Neutral Core EPS Growth Q4 FY 2021
Core gross margin ex-FX -260 basis pointsCore operating margin ex-FX -210 basis points CURRENCY NEUTRAL CORE EPS GROWTHQ4 FY 2021 RESULTS
Slide 16: Global Market Shares
GLOBAL MARKET SHARES Top 50 Category/Country Combinations # Grew/Held Value Share 17 23 26 33 30 33
Slide 17: Returning Value to Shareowners
65 YEARS Of dividend increases 131 YEARS Of dividend payments 10% INCREASE In quarterly dividendApril 2021 Dividend per share over time: RETURNING VALUE TO SHAREOWNERS
Slide 18: Business Segment Results and Highlights Q4 FY 2021
Business Segment Results and HighlightsQ4 FY 2021
Slide 19: Beauty Segment
+4% Pricing, +1% MixGlobal value share was flat versus year ago. Skin & Personal Care share increased 0.3 points and Hair Care share decreased 0.6 points versus year ago.Net Earnings: Driven by pricing, productivity savings and foreign exchange. Q4 FY 2021 RESULTSBEAUTY SEGMENT
Slide 20: Beauty Highlights
Beauty Segment has delivered 23 consecutive quarters of organic sales growth through Q4.Hair Care organic sales increased low single digits versus year ago. Greater China and Latin America growth was driven by premium innovation and pricing. This was more than offset by North America due to the impa
Slide 21: Grooming Segment
Q4 FY 2021 RESULTSGROOMING SEGMENT +2% Pricing, flat Mix Global value share was flat versus year ago. Global Shave share increased 0.5 points versus year ago. Global Appliances share decreased 0.5 points versus year ago.Net Earnings: Volume, productivity savings, increased pricing and foreign exchan
Slide 22: Grooming Highlights
Shave Care organic sales grew mid-single digits, with positive organic sales in each region, as COVID related consumption declines are now reflected in the base period and behind premium innovation. Male Blades & Razors grew mid-single digits and Female Blades & Razors grew double digits. Appliances
Slide 23: Health Care Segment
+1% Pricing, flat MixGlobal value share increased 2 points versus year ago, with over one point of share growth in both Oral Care and Personal Health Care.Net Earnings: Volume and productivity savings were partially offset by mix and investments in brand communication. Q4 FY 2021 RESULTSHEALTH CARE
Slide 24: Health Care Highlights
Oral Care organic sales increased mid-teens versus year ago behind strong business momentum. North America organic sales grew double digits, led by growth over 40% in Power Brush and Whitening behind premium innovation. Europe organic sales grew mid-teens driven by strong business momentum on Power
Slide 25: Fabric & Home Segment
Flat Pricing, +1% MixGlobal value share increased 1.5 points versus year ago, with share growth in both Fabric Care and Home Care.Net Earnings: Modest topline growth due to COVID-consumption increases in the base period was more than offset by increased commodity and freight costs and negative produ
Slide 26: Fabric & Home Highlights
Fabric Care organic sales grew mid-single digits versus year ago. Growth continues to be driven by premium innovation, with global Laundry Unit-Dose growing double digits and Fabric Enhancer Beads growing 30%. Fabric Enhancer Beads surpassed one billion dollars in sales in Fiscal Year 2021. Topline
Slide 27: Baby, Feminine, and Family Care Segment
+1% Pricing, +1% MixGlobal value share for the Baby, Feminine, and Family Care segment increased 0.2 points versus year ago.Net Earnings declined due to commodities and freight headwinds, negative mix and volume decline driven by significant COVID-consumption increases in the base period, particular
Slide 28: Baby, Feminine, and Family Care Highlights
Baby Care organic sales increased mid-single digits. North America grew mid-single digits and Europe grew double digits, more than offsetting a double-digit decline in Greater China.Feminine Care organic sales grew mid-single digits, driven by double digit growth in Adult Incontinence behind premium
Slide 29: FY 2022 Guidance
FY 2022 Guidance
Slide 30: FY 2022 Guidance: Sales
FY ‘22 Organic Sales Growth +2% to +4% All-in Sales Growth +2% to +4% FY 2022 GuidanceSALES Organic sales growth +2% to +4%All-in sales growth +2% to +4%FX is expected to be neutral to modestly positive to sales for the year
Slide 31: FY 2022 Guidance: Earnings Per Share
FY ‘22 FY ’21 BasePeriod EPS Core EPS Growth +3% to +6% $5.66 All-in EPS Growth +6% to +9% $5.50 FY 2022 GuidanceEARNINGS PER SHARE Core EPS growth +3% to +6% All-in EPS growth +6% to +9%Core effective tax rate 18% to 19%
Slide 32: FY 2022 Guidance: Cash Generation and Usage
FY 2022 GuidanceCASH GENERATION AND USAGE Adjusted Free Cash Flow Productivity: 90% Capital Spending, % Sales: 4% to 5%Dividends: >$8BDirect Share Repurchase: $7 to $9B
Slide 33: Potential Headwinds Not Included in Guidance
Significant deceleration of market growth ratesSignificant currency weaknessSignificant commodity cost increasesAdditional geo-political disruptions and economic volatility FY 2022 GuidancePOTENTIAL HEADWINDS NOT INCLUDED IN GUIDANCE
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,