Trian Partners Activist Presentation Deck
We Believe Current Structure Has Led to Near Worst-In-Class
International Margins
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P&G's international margins are meaningfully lower than peer averages despite scale
advantage
We believe this may be indicative of the downside of a highly matrixed and globally-led GBU
structure
Unilever, P&G's largest peer internationally, currently has a 15% international operating
margin despite a higher mix of low margin commoditized businesses, and is targeting
~360bps of margin improvement across the business by 2020
International Sales ($ in billions)
International Operating Margins vs. Peers(¹)
Implied Operating Profit
Opportunity
$37.8
3x larger than
peers
$12.3
Peer
Average
Achieve Peer Margin: $1.5bn
Achieve Top Third: $4.1bn
12.9%
16.9%
P&G
P&G
Source: SEC filings.
(1) Peer international margins are as comparable as disclosure allows. Excludes the U.S. for Clorox and Church & Dwight; excludes all of N. America for Henkel, Reckitt Benckiser, L'Oreal,
Kimberly-Clark, and Colgate-Palmolive; and excludes Americas for Beiersdorf and Unilever. Edgewell does not disclose international margins and is excluded from peer average.
(2) P&G's international margin is calculated as company disclosed international pre-tax income (from Form 10-K) plus non-recurring items and interest expense, divided by international sales.
Non-core items and interest expense are allocated to the international segment based on sales contribution.
23.7%
Peer Average
Top Third
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