Proctor and Gamble 2005 Annual Report Download - page 3
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Please find page 3 of the 2005 Proctor and Gamble annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.Atthebeginningofthisdecade,wemadeseveralpromises
toP&Gshareholders.
WesaidwewouldgetP&Ggrowingagain.Weset
demandingbutrealisticgrowthgoals:4–6%salesgrowth,1
10%orbetterearnings-per-sharegrowth,andfreecash
flowproductivityequaltoorgreaterthan90%ofearnings.2
P&Ghasmetorexceededthesegrowthgoalsforfour
consecutiveyears.Since2000:
• We’vegrownsalesmorethan40%,to$57billion.We’ve
morethandoubledprofits.We’vegeneratedmorethan
$30billioninfreecashflow.3
• Wehavereturned$11billionincashtoshareholders
throughdividends,andhaveincreasedshareholder
valueanother$60billionbynearlydoublingtheprice
ofP&Gstock.4
WesaidwewouldfocusonbeingthegloballeaderinP&G’s
corecategories,withleadingglobalbrands.
• P&Gisthegloballeaderinallfourcorecategories.Baby
CareandFeminineCarebothhaveglobalsharesabove
35%.FabricCarehasmorethana30%shareglobally.
HairCareisover20%inalargeandfragmentedcategory.
• P&Gisgrowingshareincategoriesthatrepresentmore
thantwo-thirdsofCompanysales.
• Since2000,we’vegrownP&G’sbillion-dollarbrandlineup
from10to17brands.Pampersisnowa$6billionbrand.
Tideisa$3billionbrand.Pantene,Always,andArielare
all$2billionbrands.DawnbecameP&G’s17thbillion-
dollarbrandin2005.
WesaidwewouldtakethestepsnecessarytoensureP&G
brandsprovidethebestconsumervalue.
• BabyCareistheinnovationleaderwithBabyStagesof
Development,PampersFeel‘nLearn,andKandoo
personalcarefortoddlers.
• FabricCareisleadingwithTideColdwaterandTidewitha
touchofDowny.
• TampaxPearlandNaturellaaresettingthestandardfor
performanceandvalueinFeminineCare.
• PantenePro-HealthandColorExpressionsarekeeping
HairCareinthelead.
Ineachofthesecategories,innovationataffordableprice
pointshasresultedinattractivevalueforconsumers.Atthe
FellowShareholders:
ThisAnnualReportcontainsanumberofforward-lookingstatements.
Formoreinformation,pleaseseepage28oftheManagement’sDiscussionandAnalysis.
1 Excludingtheimpactofforeignexchange.Thiswas2%in2005.
2 Freecashflowproductivityisdefinedastheratiooffreecashflowtonetearnings.
Formoreinformation,pleaseseepage34oftheManagement’sDiscussionandAnalysis.
EveryGlobalBusinessUnitandMarketDevelopment
Organizationdeliveredvolumegrowthinfiscal2005.
P&G’slineupof17billion-dollarbrandsdelivered
highsingle-digitvolumegrowthinfiscal2005.
3 Freecashflowisdefinedascashfromoperatingactivitieslesscapitalexpenditures.
4 FromJune30,2000toJune30,2005,theclosingpriceofP&Gstockincreasedfrom
$28.375pershareto$52.75,asadjustedforastocksplit.
+8%Sales1
+15%Earnings
perShare
90%FreeCash
Flow
Productivity2
+11%Dividends
perShare