Proctor and Gamble 2005 Annual Report Download - page 5

•฀ We฀increased฀dividends฀per฀share฀11%,฀the฀49th฀consecutive฀
fiscal฀year฀in฀which฀P&G฀has฀increased฀dividends.
Growth฀was฀broad-based.
•฀ Every฀Global฀Business฀Unit฀delivered฀volume฀growth.฀P&G฀
Household฀Care฀and฀P&G฀Family฀Health฀both฀grew฀volume฀
8%,฀and฀P&G฀Beauty฀increased฀volume฀12%.฀
•฀ The฀17฀billion-dollar฀brands฀delivered฀high฀single-digit฀
volume฀growth฀this฀past฀fiscal฀year.฀
•฀ Every฀Market฀Development฀Organization฀grew฀volume.฀
Developed฀markets฀delivered฀mid-single-digit฀volume฀
growth,฀and฀developing฀markets฀were฀up฀high฀teens.
•฀ We฀grew฀volume฀7%฀on฀average฀across฀P&G’s฀top฀10฀retail฀
customers.฀The฀balance฀of฀customers฀grew฀฀
double-digit.฀
These฀results฀demonstrate฀that฀P&G’s฀goals฀are฀achievable฀฀
and฀its฀strategies฀are฀working.฀
Strategies,฀Strengths,฀Balance,฀and฀Leadership
Four฀drivers฀have฀enabled฀P&G฀to฀deliver฀this฀consistent฀
growth:฀clear฀strategies,฀core฀strengths,฀balance,฀and฀
leadership.฀
P&G’s฀strategies฀remain฀unchanged.฀We฀are฀continuing฀to฀
focus฀on฀core฀businesses฀and฀on฀P&G’s฀leading฀brands,฀
countries,฀and฀customers.฀We฀are฀continuing฀to฀build฀P&G฀
leadership฀in฀the฀faster-growing,฀higher-margin฀beauty฀and฀
health฀care฀businesses.฀We฀are฀continuing฀to฀invest฀in฀฀
growth฀with฀lower-income฀consumers฀in฀developing฀฀
markets.฀I’m฀confident฀these฀remain฀the฀right฀choices฀for฀
sustained฀growth.฀
P&G’s฀core฀strengths฀–฀branding,฀innovation,฀go-to-฀
market,฀and฀scale฀–฀continue฀to฀set฀our฀Company฀apart฀฀
from฀competition.฀
I฀have฀discussed฀P&G’s฀strategies฀and฀strengths฀in฀detail฀in฀
previous฀letters.฀This฀year,฀I฀want฀to฀focus฀on฀balance฀and฀
leadership฀to฀provide฀a฀more฀complete฀picture฀of฀the฀drivers฀
enabling฀P&G’s฀sustained,฀long-term฀growth.
Balance฀Creates฀Flexibility฀to฀Achieve฀Goals
P&G฀has฀become฀a฀more฀balanced฀company.฀This฀is฀
important.฀A฀balanced฀approach฀to฀growth฀and฀a฀balanced฀
mix฀of฀businesses,฀brands,฀markets,฀and฀customers฀provide฀
flexibility฀to฀deliver฀results฀reliably,฀in฀good฀times฀and฀
challenging฀times฀alike.฀
3

Build฀existing฀core฀businesses฀into฀stronger฀฀
global฀leaders
฀฀P&G฀grew฀market฀share฀in฀all฀four฀core฀categories
Grow฀leading฀brands,฀big฀countries,฀winning฀
customers
฀฀Volume฀up฀7%,฀on฀average,฀for฀P&G’s฀17฀billion-dollar฀brands฀
฀฀Volume฀up฀6%,฀on฀average,฀for฀P&G’s฀top฀16฀countries
฀฀Volume฀up฀7%,฀on฀average,฀for฀P&G’s฀top฀10฀retail฀customers
Develop฀faster-growing,฀higher-margin,฀฀
more฀asset-efficient฀businesses฀with฀global฀
leadership฀potential
฀฀Beauty฀sales฀nearly฀doubled฀to฀$19.5฀billion;฀profit฀more฀than฀
doubled฀to฀$2.9฀billion
฀฀Health฀Care฀sales฀doubled฀to฀$7.8฀billion;฀profit฀more฀than฀
tripled฀to฀$1฀billion
฀฀P&G฀Beauty฀and฀Health฀now฀are฀47%฀of฀P&G฀sales฀and฀
50%฀of฀profit
Regain฀growth฀momentum฀and฀leadership฀in฀
Western฀Europe฀
฀฀Western฀Europe฀volume฀up฀mid-single฀digit,฀on฀average฀–฀
twice฀the฀rate฀of฀Western฀Europe฀GDP฀growth
฀฀P&G฀brands฀growing฀share฀in฀categories฀accounting฀for฀more฀
than฀half฀of฀Western฀Europe฀sales
Drive฀growth฀among฀lower-income฀consumers฀in฀
developing฀markets
฀฀Lower-income฀strategy฀has฀delivered฀mid-teens฀volume฀
growth,฀on฀average,฀in฀developing฀markets
1฀ Excluding฀foreign฀exchange฀of฀less฀than฀1%.
2฀ Excludes฀amortization฀of฀goodwill฀and฀indefinite-lived฀intangibles,฀no฀longer฀
required฀under฀accounting฀rules฀beginning฀in฀2002,฀and฀Organization฀2005฀
restructuring฀charges฀per฀share฀of฀$0.32฀in฀2000,฀$0.61฀in฀2001,฀$0.26฀in฀2002,฀
and฀$0.19฀in฀2003.

Progress฀Against฀P&G’s฀Long-Term฀
Goals฀and฀Strategies,฀2001–2005
  
Sales฀Growth    1
Earnings-per-Share฀
Growth 2
Free฀Cash฀Flow฀
Productivity 