Trian Partners Activist Presentation Deck
The First Cost Program Did Not Create Value (2012-2016)
In 2012, P&G announced
a $10bn productivity plan
Today, P&G claims that they over-
achieved against this target(¹)
Of the $10bn, P&G claims
that $7bn was offset by
foreign exchange (FX)(²)
and the rest was reinvested
However, the remaining
+$3bn of savings did
not drive sales or profit
If the $3bn of remaining
productivity dropped to the
bottom line, operating profit
would have been ~20% higher
in 2016
↓↓
↑
0%
2012
$14.2
2011
$3bn reinvested
in business
2%
2013
$14.0
2012
$7bn lost
to FX
Volume Growth (%)
2013
3%
2014
Operating Profit ($bn)
$14.3
$14.7
2014
(1%)
2015
Source: SEC filings, investor presentations, transcripts, Wall Street research.
(1) Deutsche Bank Global Consumer Conference (June 15, 2017). (2) Deutsche Bank Global Consumer Conference (June 16, 2016).
$13.9
2015
(1%)
2016
$14.0
2016
5-Year CAGR
P&G: 0.6%
Peers: 3.0%
5-Year CAGR
P&G: (0.1%)
Peers: 5.6%
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