Trian Partners Activist Presentation Deck
Confidential-Not for Reproduction or Distribution
The Procter & Gamble Company ("P&G") Case Study
P&G
• P&G is a +185-year-old global consumer products company with a portfolio of iconic brands and
leading scale and market share across categories
. However, P&G had underperformed over an extended period of time:
- Total shareholder return underperformed both its peers and the S&P 500 Total Return Index in
the previous decade(1)
Lost market share across categories and geographies
Flat EBIT and EPS growth
• Trian believed that P&G was struggling to adapt to a changing industry and needed to address the
following factors to fix its underperformance:
- Market share erosion and low organic sales growth
-
Dismantle the "matrix" structure-increase accountability, reduce bureaucracy and excessive
costs
Inability to leverage scale in existing organizational structure
Aging brands and a lack of breakthrough innovation
Insular culture that rejected external perspectives and ideas
.
In July 2017, Trian nominated Nelson Peltz for election to the P&G Board
•
In December 2017, after a contested proxy contest where Trian received the support of leading
proxy advisory services, ISS and Glass Lewis, P&G announced that Nelson Peltz would be
appointed to its Board
Source SEC fings, company presentations and press releases. While Nelson Peltz is a former director of The Procter & Gamble Company, none of the information contained in this presentation or otherwise
provided to you is derived from non-public information of such company
Note: EBIT defined as Eamings before interest and Taxes; EPS defned as Earnings Per Share (1) The S&P 500 Total Retum Index includes the price changes of all underlying stocks and all dividends
reinvested. S&P 500 data was obtained from Bloomberg using the SPX ticker with the inclusion of dividend re-investment. Trian considers P&O's peers to include Beiersdorf Church & Dwight Clorox, Colgate
Edgewel Personal Care. Henkel Kimberly-Clark, L'Oreal Reckitt Benckiser and Univer
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