Procter & Gamble Company (the) · NYSE:PG
Procter & Gamble Company (the) — Q4 FY2015 Earnings Presentation
35 slides from Procter & Gamble Company (the)'s earnings presentation, Jul 30, 2015
Slide 1: Procter & Gamble Earnings Release: Q4 FY 2015 Results
July 30, 2015 Procter & Gamble Earnings Release:Q4 FY 2015 Results
Slide 2: Fiscal Year 2015 Business Results
Fiscal Year 2015Business Results
Slide 3: Fiscal Year 2015 Results: Organic Sales Growth
Fiscal Year 2015 ResultsOrganic Sales Growth 1% 3% 3%
Slide 4: Fiscal Year 2015 Results: Core EPS Growth
Fiscal Year 2015 ResultsCore EPS Growth* * Excludes Pet Care & Batteries
Slide 5: Fiscal Year 2015 Results: Constant Currency Core EPS Growth
Fiscal Year 2015 ResultsConstant Currency Core EPS Growth* * Excludes Pet Care & Batteries
Slide 6: Returning Value to Shareholders
Returning Value to Shareholders $ billions FY 2015 Past 10 FY’s Dividends 7.3 55.7 Share Repurchase 4.6 55.7* Value to Shareholders 11.9 111.4 % of Adjusted Net Earnings 105% 94% * Excludes Gillette repurchases
Slide 7: Apr-Jun 2015 (Q4 FY 15) Organic Sales Growth
Apr – Jun 2015 (Q4 FY 15)Business Results Apr – Jun 15 (Q4 FY 15) ResultsOrganic Sales Growth* Organic sales were flat with 3 of 5 reporting segments growing versus prior year. 2% * Restated for Batteries & PetCare 0% 2% 2%
Slide 8: Organic Sales Growth by Segment
Apr – Jun 15 (Q4 FY 15) ResultsOrganic Sales Growth* Organic sales were flat with 3 of 5 reporting segments growing versus prior year. 2% * Restated for Batteries & PetCare 0% 2% 2% Apr – Jun 15 (Q4 FY 15) ResultsOrganic Sales Growth* Organic sales were flat with 3 of 5 reporting segments growing ve
Slide 9: Market Share
Apr – Jun 15 (Q4 FY 15) ResultsMarket Share Global value share ~21% % of Sales Holding/Growing Share ~45%
Slide 10: Core EPS Growth
Apr – Jun 15 (Q4 FY 15) ResultsCore EPS Growth* Core EPS includes 90 basis points of operating margin improvement driven by productivity savings. * Restated for Batteries & Pet Care -8% 3% 22% 8%
Slide 11: Currency Neutral Core EPS Growth
Apr – Jun 15 (Q4 FY 15) ResultsCurrency Neutral Core EPS Growth* Excluding the impact of foreign exchange, currency-neutral core earnings per share increased 22% for the quarter. * Restated for Batteries & Pet Care 28%
Slide 12: Non-Core Restructuring Spending
Results To-DateNon-Core Restructuring Spending* * Restated for Pet Care & Batteries FY 15 ($MM Before Tax) JAS OND JFM AMJ FY Cost of Goods Sold 93 77 161 202 533 SG&A 2 18 92 79 191 Total Non-Core Restructuring 95 95 253 281 724 Estimated Restated FY ‘15 Core EPS FY ‘15 Core EPS – As Reported $4.02
Slide 13: Estimated Restated FY '15 Core EPS
Estimated Restated FY ‘15 Core EPS * Includes results for the Salon Professional, Fragrance, Cosmetics and Hair Color categories Q1 Q2 Q3 Q4 FY 15 As Reported 1.04 1.06 0.92 1.00 4.02 Adjustments for Results* Restated to Disc Ops (0.05) (0.11) (0.03) (0.06) (0.25) Estimated Restated 0.99 0.95 0.89 0
Slide 14: Business Segments
Business Segments
Slide 15: Beauty, Hair & Personal Care Segment
Apr – Jun 15 (Q4 FY 15) ResultsBeauty, Hair & Personal Care Segment +5% Pricing, -1% MixOrganic Sales: h Low single digits in Developed markets, i Mid-single digits in Developing marketsGlobal value share declined 0.7 points versus year agoNet Earnings: Productivity improvements and pricing were mor
Slide 16: Beauty, Hair & Personal Care: Organic Sales by Category
By Category Organic Sales Growth IYA Global Developed Developing Hair Care ~= ~= ~= Skin Care - - - Personal Cleansing - ~= - Deodorants + + - Cosmetics ~= + - Prestige - + - Salon Professional + + + Apr – Jun 15 (Q4 FY 15) ResultsBeauty, Hair & Personal Care – Organic Sales + represents growth abov
Slide 17: Global Beauty, Hair & Personal Care Highlights
Hair Care organic sales were in-line with year ago. Globally, growth on Head & Shoulders was off-set by declines in smaller Hair Care and Color brands. For FY ‘15, U.S. Pantene grew sales mid-single digits, and P3M value share was up nearly 1 point.Skin Care organic sales declined due to competitive
Slide 18: Grooming Segment
Apr – Jun 15 (Q4 FY 15) ResultsGrooming Segment +4% Pricing, -4% MixOrganic Sales: i High singles in Developed markets, i Mid-singles in Developing marketsGlobal value share declined 0.3 points versus year agoNet Earnings: Price increases and productivity savings were more than offset by volume decl
Slide 19: Grooming: Organic Sales by Category
By Category Organic Sales Growth IYA Global Developed Developing Blades & Razors - - - Pre & Post Shave + ~= + Braun & Appliances ~= ~= ~= Apr – Jun 15 (Q4 FY 15) ResultsGrooming – Organic Sales + represents growth above 1%, ~= represents growth of 1% to decline of 1%; - represents decline greater t
Slide 20: Global Grooming Highlights
Global Blades & Razors organic sales declined in Developed and Developing markets driven by a high base period from the FlexBall launch in North America and FIFA World Cup innovation across regions, prior quarter inventory builds for the FlexBall launch in Europe, increased competitive activities in
Slide 21: Health Care Segment
Apr – Jun 15 (Q4 FY 15) ResultsHealth Care Segment +4% Pricing, +3% MixOrganic Sales: h Mid-singles in Developed markets, h Mid-singles in Developing markets Global value share declined 0.5 points versus year agoNet Earnings: Price increases, mix helps, and productivity savings were more than offset
Slide 22: Health Care: Organic Sales by Category
By Category Organic Sales Growth IYA Global Developed Developing Oral Care + + + Personal Health Care + ~= + Apr – Jun 15 (Q4 FY 15) ResultsHealth Care – Organic Sales + represents growth above 1%, ~= represents growth of 1% to decline of 1%; - represents decline greater than1%.
Slide 23: Global Health Care Highlights
Oral Care organic sales increased mid-single digits. Developed market sales were up mid-singles due to premium innovation and Developing markets grew low single digits behind premium innovation and pricing.Personal Health Care sales increased low single digits with Developing market sales up high si
Slide 24: Fabric & Home Care Segment
Apr – Jun 15 (Q4 FY 15) ResultsFabric & Home Care Segment +2% Pricing, Flat MixOrganic Sales: h Mid-singles in Developed markets, i Low singles in Developing marketsGlobal value share declined 0.3 points versus year agoNet Earnings: Productivity savings, pricing and commodity improvements were offse
Slide 25: Fabric & Home Care: Organic Sales by Category
By Category Organic Sales Growth IYA Global Developed Developing Fabric Care + + - Home Care + + + P&G Professional + + - Apr – Jun 15 (Q4 FY 15) ResultsFabric & Home Care – Organic Sales + represents growth above 1%, ~= represents growth of 1% to decline of 1%; - represents decline greater than1%.
Slide 26: Global Fabric & Home Care Highlights
Fabric Care organic sales increased low single digits. Developed market sales were up mid-single digits with solid growth in the U.S. behind innovation and in Japan due to a low base period due to the VAT tax increase. Developing market sales declined behind competitive activity, inventory correctio
Slide 27: Baby, Feminine & Family Care Segment
Apr – Jun 15 (Q4 FY 15) ResultsBaby, Feminine & Family Care Segment +3% Pricing, +2% MixOrganic Sales: h Mid-singles in Developed markets, i Mid-singles in DevelopingGlobal value share declined 1.0 points versus year agoNet Earnings: Pricing, lower commodity costs and productivity savings were more
Slide 28: Baby, Feminine & Family Care: Organic Sales by Category
By Category Organic Sales Growth IYA Global Developed Developing Baby Care ~= + - Feminine Care ~= + - Family Care + + - Apr – Jun 15 (Q4 FY 15) ResultsBaby, Feminine & Family Care – Organic Sales + represents growth above 1%, ~= represents growth of 1% to decline of 1%; - represents decline greater
Slide 29: Global Baby, Feminine & Family Care Highlights
Baby Care organic sales were in line with year ago as solid growth in the U.S was partially offset by inventory adjustments and consumer demand reductions due to pricing for currency devaluation and trade terms changes in developing markets. In the U.S., baby care value share was up over 1 point ver
Slide 30: Fiscal Year 2016 Guidance
Fiscal Year 2016 Guidance
Slide 31: FY 2016 Guidance: Organic Sales
FY 2016 Guidance*Organic Sales FY’16 Organic Sales Growth In-line to Up Low Single Digits Currency -4% to -5% Minor brand divestitures Modest Drag All-in Sales Growth Down Low to Mid-Single Digits * Guidance assumes that Batteries & transitioning Beauty businesses are accounted for as discontinued o
Slide 32: FY 2016 Guidance: EPS Growth
FY 2016 Guidance*EPS Growth FY’16 (vs. restated FY ’15) Core Operating Income Growth Up Mid to High Single Digits Core Earnings Per Share Growth Down Slightly to Up Mid-Single Digits All-in Earnings Per Share Growth +53% to +63% Other Items Impact on Core EPS Venezuela accounting change $(0.05) to (
Slide 33: FY 2016 Guidance: Cash Generation & Usage
FY 2016 GuidanceCash Generation & Usage Free Cash Flow Productivity: 90-100%Capital Spending, % Sales: 5% to 6%Dividends: $7B+Share Retirement/Repurchases: $8B to $9B * Shares retired at the close of the Duracell transaction.
Slide 34: P&G
P&G
Slide 35: 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,