Trian Partners Activist Presentation Deck
Trian Strategic Initiative: Fix the Innovation Machine
P&G spends $1.9bn on R&D per year, more than Henkel, Kimberly-Clark, Colgate-Palmolive, Beiersdorf,
Reckitt Benckiser, Clorox, Church & Dwight and Edgewell combined
M
▪ While there have been successes (e.g., Tide Pods in 2012), P&G has not driven consistent growth via
breakthrough product or brand innovation / renovation for years - as exemplified by continued market
share losses
Organic
Growth CAGR:
2011-2017
P&G R&D Expense vs. Peer Group - Last Fiscal Year End ($mm)
$1,874
P&G
2.3%
Source: SEC filings and annual reports.
$1,082
Unilever
6.3%
$941
I Trian is NOT advocating that P&G reduce R&D, but rather that the
Company address the root-cause issues driving continued market
share losses. At Heinz and Mondelez, R&D increased as a
percentage of sales while Nelson Peltz was on the Board
$509
$328 $289
L'ORÉAL (Henkel) Kimberly-Clark
COLGATE-PALMOLIVE
$208
Beiersdorf
3.5% 3.7% 3.5% 4.9% 4.3%
$202
Reckitt
Benckiser
$135
CLOROX
$72
Edgewell
PERSONAL CARE
4.2% 3.4% -0.2%
$63
RCH
CO
DWIG
INC
3.6%
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