Trian Partners Activist Presentation Deck
As a Board Member, Nelson Will Seek to Ensure that Productivity
Delivers Improved Operating Results
Current Productivity Plan Not Driving Differentiated Results
Despite $12-$13bn of claimed productivity, management is still targeting market share losses through
2019, and bottom-quartile EPS growth vs. peers
Targeting 2.8% organic sales growth vs. expected market growth of 3-4%
Targeting 6.0% EPS growth vs. peer average of 8.0% and best-in-class of 9-11%
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With Nelson on the Board
Nelson will seek to ensure that P&G actually delivers on its $12-$13bn of productivity savings, and
that these savings:
i.
Are reinvested into volume generating investments (marketing, pricing, promotion, R&D)
ii. These investments actually grow operating profit
With $12-$13bn of productivity identified, there is no reason, in our mind, that P&G should not be
targeting:
i.
ii.
Sales growth at least as fast as the market
Best-in-class EPS growth
Source: SEC filings.
(1) Expected market growth for P&G categories per P&G management (3-3.5% as of November 2016 Analyst Day near the time targets were set) and recent Wall Street research (~4%).
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