P&G Holds 2022 Investor Day

P&G executives provide a review of our integrated business strategy and how it is being further strengthened through four focus areas.

On November 17, P&G hosted major shareowners and analysts at our Cincinnati headquarters for our 2022 Investor Day. Chairman, President and CEO Jon Moeller began by sharing how P&G has strengthened the execution of our strategic choices to deliver balanced growth and value creation — serving consumers, customers, colleagues, society and, of course, our shareowners.

P&G Integrated growth strategy

The strategic choices driving our integrated growth strategy, elements of which were first discussed in 2012, are:

  • A focused portfolio of daily-use products where performance drives brand choice.

“We worked for several years to focus the Company’s portfolio on faster growing, more profitable, daily use categories…where performance plays a significant role in brand choice... We focused our investment and resources on the categories that best leverage P&G strengths — consumer understanding, branding, product and package innovations and our go to market capabilities...Our 10-category portfolio has historically grown a point faster and is two points more profitable than the old Company. We are global market leaders in 7 of the 10 categories and are #2 in the other three.”
-Jon Moeller, Chairman, President and CEO

Investor Day - focused portfolio
  • Superiority in product, package, communication, retail execution and value.

“First is the One-Use Wow. Instant gratification has become part of how consumers assess performance and value. We observe this behavior as consumers regularly share their experiences through social media and online ratings and reviews, which influences repurchase rates of our products and attracts new users. This requires innovations to be designed with emphasis on in-use delight — immediately after a single use and throughout the life of the product — with consumer benefits, such as superior fragrances and aesthetics.”
-Victor Aguilar, Chief Research & Development Officer

We’re taking four actions to reset the level of superiority needed to even higher standards:

  • One-Use Wow
  • Driving Habit Formation
  • Core & More
  • Sustainable Superiority
One use Wow, Habit Formation
Core and More, That is Sustainable
  • A continued focus on productivity — the ability to be very efficient in all of our operations.

"With Supply Chain 3.0, we are creating the next level of supply: a supply chain that provides greater agility, flexibility, scalability, transparency and resilience. Through a set of forward-looking strategic choices, we are reinventing our supply chain into a superior proposition for consumers, customers and employees…while delivering…productivity."
-Shailesh Jejurikar, Chief Operating Officer

Investor Day - supply chain 3.0
  • Constructive disruption, which we’re leading across the value chain.

"...we’re using data, analytics and digital technology to lead constructive disruption by reinventing brand building — in media, advertising and how we work."
-Marc Pritchard, Chief Brand Officer

Investor Day - pampers

Just one example — to improve ad effectiveness, Pampers uses testing called “AI Studios,” with proprietary algorithms that test ads in one day…versus traditional tests that can take 30 days… [Consumer] feedback is then uploaded to a data network comprised of decades of consumer reactions to advertising. Artificial intelligence then analyzes and interprets the consumer feedback and “scores” the ad against known ads to predict performance in market. Brands can make changes to images, music, copy or text to iterate and improve the ad for the best performance.

  • A highly efficient and effective organization structure — the best organization in the world.

“Our objective was to create a more engaged, agile and accountable organization, which is exactly what we’ve done. The best proof that this organization design is working is the acceleration of growth…”
-Jon Moeller, Chairman, President and CEO

Investor Day - focused & agile

This strategy and its execution by P&G people demonstrated we can drive strong market growth, sales growth, share growth, earnings growth and cash flow. It is why, at the end of our last fiscal year, we were the 12th most valuable U.S. publicly traded company and the 16th most valuable publicly traded company in the world, based on market capitalization.* Over the past four years, P&G people have:

  • Added over $13 billion in annual sales, putting P&G in the 87th percentile of the S&P 500 in terms of dollar sales growth.
  • Generated nearly $5 billion in additional profit, putting P&G in the 92nd percentile of the S&P 500 in terms of dollar profit growth.
  • Delivered 17 straight quarters of strong organic sales growth, including the first quarter of this fiscal year.

None of this is a reason to rest, but a reason we’re confident we can continue to improve.

Four Focus Areas

One of the most important things about our integrated growth strategy is that it is inherently dynamic, not static. It requires being responsive to changing consumer needs and habits. It demands we serve evolving customer needs in rapidly transforming channels.

To further strengthen our integrated strategies, there are four areas where we will be even more intentional and deliberate:

  • Supply, and being the best at it, matters. Historically, our Supply Chain has been a competitive advantage for us, and we are investing significantly to strengthen this advantage. We are reorienting our supply chain to one that provides greater agility, flexibility, scalability, transparency and resilience which is needed to react to, and even anticipate, the opportunities and challenges ahead.

“Using data and machine learning algorithms, we can optimize scheduling to deliver…savings by eliminating idle time for drivers, who spend hours each day waiting to either load or unload their trucks. Data and algorithms can save … in real time optimization of truck loads, and …from dynamic routing and sourcing optimization.”
-Julio Nemeth, Chief Product Supply Officer

  • We’ve integrated Environmental Sustainability into our superiority strategy across product, packaging, communication, go to market, consumer and retailer value. This means developing irresistibly superior offerings for consumers that are better for the environment, without tradeoffs in product performance or convenience. Just one example is cold-water washing with Tide and Ariel. When people turn their wash cycles to cold, they can save up to 90% of the energy used on every load of laundry, while saving money. They also get greater satisfaction because their colors look brighter and their clothes last longer.

“Our goal is to have 100% of our consumer packaging recyclable or reusable by 2030, and we anticipate reaching nearly 80% this year —– keeping us on track to the ultimate goal.”
-Virginie Helias, Chief Sustainability Officer

  • We’re strengthening our Digital Acumen to drive consumer and customer preference, reduce cost and enable rapid and efficient decision making. We are getting more intentional in building our digital acumen across the entire value chain…in how we engage with consumers, how we innovate, how we go to market and how we operate our business. There is significant opportunity in each area.

“In the past, our Sales & Market Research teams would go through a very long process to create a better physical shelf. This included determining which shelf layouts might work, then partnering with our customers to run research, and finally, retailers could adjust the shelf based on the results Today, digital is enabling P&G to automate, elevate and revolutionize retail execution.”
-Mindy Sherwood, President – Global Walmart and Chief Sales Officer

  • A Superior Employee Value Equation for all gender identities, races, ethnicities, sexual orientations, ages and abilities — for all roles — because to deliver superior products, packages, communication, retail execution and value, we need to attract, develop and retain the best talent.

”We’re going beyond the WHAT we offer to the WHY. Making an impact in our daily work — by being empowered and accountable with increasing responsibilities over time.”
-Tracey Grabowski, Chief Human Resources Officer

These four areas are necessary elements in continuing to build superiority, in reducing cost to enable investment and value creation and in strengthening our organization. They are part of the constructive disruption we must continue to lead.

P&G Integrated growth strategy

Tune in to the webcast replay at www.pginvestor.com to hear:

  • Our full discussion of P&G’s integrated growth strategy and how four focus areas are helping strengthen that strategy’s execution.
  • P&G leaders taking a deep dive on the strategy and the four focus areas.
  • And our COO and each of our sector CEOs discussing how our integrated strategy comes to life across the business.

See https://www.pginvestor.com/event for P&G's full 2022 Investor Day presentation, shared November 17, 2022, and definitions of non-GAAP measures and reconciliation to the most closely related GAAP measure, as well as cautionary information on forward-looking statements, which are based on current assumptions and subject to risks and uncertainties that may cause actual results to differ materially.

*As of June 30, 2022, the end of P&G’s 2022 fiscal year.