Revitalize P&G Together slide image

Revitalize P&G Together

APPENDIX: Material Data Errors and Misrepresentations in P&G's Presentation Unless otherwise noted, all information is sourced from Bloomberg, Capital IQ, and applicable SEC filings or company reports I. Data Errors Pages 76 - 78 of P&G's presentation (Trian's Investments' Equity Return Performance) Page 83 (Mondelēz Operating Performance vs. Peers) Trian's median performance across all of the listed investments beat the S&P 500 by +490bps annually - more than triple the +140bps the Company erroneously reported on page 78. As noted in our White Paper, Trian's consumer investments where Nelson Peltz's served on the board have outperformed the S&P 500 by +880bps annually. ■ ■ DuPont equity returns were calculated incorrectly, apparently due to exclusion of the Chemours spin and incorrect "announcement" date used. Calculated correctly, page 78 should report that DuPont's annual outperformance vs. the S&P 500 was 5%, not 1% Ingersoll Rand equity returns were calculated incorrectly, apparently due to exclusion of the Allegion spin, and further miscalculations which we are unable to reconcile. Calculated correctly, page 78 should report that Ingersoll Rand's annual outperformance vs. the S&P 500 was 7%, not -5% ■ Mondelēz (2nd Investment) equity returns were calculated incorrectly due to exclusion of the special dividend received in the Kraft-Heinz transaction (which accounted for a material portion of the transaction value). Calculated correctly, page 78 should report that Mondelēz's annual outperformance vs. the S&P 500 was 3%, not -1% State Street equity returns were calculated incorrectly due to miscalculations which we are unable to reconcile. Calculated correctly, page 78 should report that State Street's annual outperformance vs. the S&P 500 was 7%, not 2% (our figure verified on Bloomberg and Capital IQ) Tiffany & Co. equity returns were calculated incorrectly due to miscalculations which we are unable to reconcile. Calculated correctly, page 78 should report that Tiffany's annual outperformance vs. the S&P 500 was 7%, not 0% (our figure verified on Bloomberg and Capital IQ) Wendy's (Post Merger) equity returns were calculated incorrectly due to miscalculations which we are unable to reconcile. Calculated correctly, page 78 should report that Wendy's annual outperformance vs. the S&P 500 was 4%, not 2% (our figure verified on Bloomberg and Capital IQ) Wendy's (Pre-Merger) equity returns were calculated incorrectly due to exclusion of the Tim Horton's spin. Calculated correctly, page 78 should report that Wendy's annual outperformance vs. the S&P 500 was 10%, not -3% Significant data errors allowed P&G to grossly overstate both the peer median and the expansion of peer margins. The reality is that Mondelēz had best-in- class margin expansion from 2013 to 2016. P&G states that peers on average have achieved greater margin improvement than Mondelēz. However, The 2013 figures for Mondelez, Hershey and Nestle are EBIT margins. The 2016 figures for Hershey and Nestle are EBITDA margins, while Mondelez's is EBIT. Comparing EBIT margins in one period to EBITDA margins in another period, TRIAN PARTNERS 2
View entire presentation