Trian Partners Activist Presentation Deck
Context on Key Assumptions, Peer Group & Time Frames
P&G peer group
▪ We believe the relevant peer group is comprised of companies domiciled in the U.S. and Europe larger than
US$4bn in market capitalization that generate at least half of their sales in similar health and personal care
categories
Throughout this presentation, we use the following companies as peers: Beiersdorf, Church & Dwight, Clorox,
Colgate-Palmolive, Edgewell Personal Care, Henkel, Kimberly-Clark, L'Oreal, Reckitt Benckiser and Unilever
Relevant time frame to measure performance
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▪ We measure total shareholder returns over 1, 2, 3, 4, 5 and 10-year periods to highlight shorter term and longer
term underperformance through June 15, 2017, one day before rumors surfaced of Trian seeking Board
representation.(1) We also show TSR during David Taylor's tenure on page 10
▪ We measure business performance over the last 6 years from fiscal year 2011 through fiscal year 2017. We
believe this time frame is most relevant as fiscal year 2011 represents one year prior to the launch of P&G's 5-
year, $10 billion productivity program, which was meant to drive both stronger earnings growth and organic sales
growth via reinvestment. P&G's future results are largely contingent on a new $12-13 billion productivity program
beginning in fiscal year 2017 that will last through 2021
▪ Unless otherwise noted, we have adjusted peers' results to match P&G's June fiscal year end
▪ For market share data from third party sources where only annual data is available, we measure performance
through December 2016
Core EPS growth and the impact of recent divestitures
P&G often presents Core EPS on a continuing operations basis, which backs out the earnings from recently
divested businesses in historical periods. This methodology would restate FY 2011 Core EPS from $3.95 (as
reported) to ~$3.48
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However, we believe that Core EPS growth should be measured from FY 2011 as originally reported ($3.95) to
compare real earnings power of one share of P&G at the beginning and end of this time frame. P&G is comparing
apples and oranges by subtracting earnings of discontinued operations for historical periods while showing a
benefit from share count reduction or cash proceeds from the sale or exchange of such divested businesses (e.g.,
Duracell and Coty)
(1) P&G's stock outperformed the Consumer Staples Select Sector SPDR Fund by 130bps that day.
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