Trian Partners Activist Presentation Deck
Shareholders Have Heard The Same Promises Before
What They Said Then (2011-2013)
"End-To-End"
"We are radically simplifying our end-to-end organization design so there are
now only three handoffs going from global concept to regional tailoring to local
execution... This gives us better line of sight from design to execution with clearer
responsibilities, fewer internal transactions, fewer roles and stronger results."
- P&G at CAGNY, 2/21/2013
Portfolio Simplification
Following announced sale of Folgers, Pringles and Pharmaceuticals from '08-'11,
representing ~8% of 2011 operating profit
"We continue to take steps to strengthen P&G's portfolio of businesses, which
enables us to focus on our greatest growth opportunities... we believe that our
current portfolio is the strongest it has been in many years and provides a
highly strategic platform for market leadership and sustainable growth."
- P&G Annual Report, August 2011
Leverage Scale While Acting like a Smaller Company
"We want to have all the benefits of an $80 bn company, and the agility and
speed of a $10 bn company. To do this, we've spent the last 18 months putting
the work processes, decision-making structures, and data systems in place to
enable P&G to truly operate as an integrated company. Again, all of these efforts
are aimed at two important outcomes - cost advantage and faster growth... I
really do think it is game changing for the way we operate."
- P&G at CAGNY, 2/24/2011
Culture / Accountability
"We are emphasizing that culture [of execution]. I won't say that it didn't exist
before but we are emphasizing that as we get smaller and as we behave like a
smaller company, taking personal responsibility and having that personal
accountability for excellence and execution becomes critical. So we are
measuring it. We are rewarding it and we are obviously providing sanctions
where it doesn't occur." - P&G at CAGNY, 2/21/2013
Source: Investor call transcripts and annual reports.
What They Say Now (2017)
"In large markets, we're implementing what we call an End-to-End ownership and
accountability approach. This new model gives regional category business leaders
who own full profit and loss possibilities holistic decision-making authority, starting
with the front end of innovation all the way through to the consumer."
- P&G Earnings Call, 7/27/2017
Following announced sale of ~100 mostly small brands from '14-'16 (including to
Coty), representing ~6% of operating profit
"We streamlined our portfolio for faster growth and higher profitability. We now
have a much stronger, more focused portfolio that is better positioned to win."
- P&G at Deutsche Bank Conference, 6/15/2017
"We're leveraging this talent and mastery in an organization designed to get the best
of both: focus and agility at the point of competition in categories and markets;
along with the benefits of P&G scale and cost advantages in areas like global
business services, purchasing, tax, treasury and supply network efficiency,
advantages that none of our individual businesses or sectors could achieve on their
own."
- P&G Earnings Call, 7/27/2017
"We're further strengthening our organization design, culture and
accountability. Deeper mastery, closer to consumers and customers, more agile,
more accountable, more efficient and more effective... We're putting more
granular incentives in place to match the increased End-to-End responsibility
we're asking leaders to assume."
- P&G at Deutsche Bank Conference, 6/15/2017
- 38 -View entire presentation