Proctor and Gamble 2015 Annual Report Download - page 4

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Despite the sales and earnings pressures, we continued to generate strong
adjusted free cash flow of $. billion, increased the dividend for the th year
in a row, and returned $. billion to shareowners
—
$. billion in dividends
and $. billion in share repurchase. Over the past five years, we’ve returned
$ billion to shareowners
—
$2 billion a year on average. We have announced
our intention to return up to $70 billion to shareowners over the next four
years through a combination of dividend payments, share retirement and
share repurchase.
Building a Better Company
This year, P&G will be 178 years old. A company does not last for that long if
its management is not willing to change anything and everything, except for its
purpose and core values, to serve consumers and create value for shareowners.
We are leading the most comprehensive series of changes in the Company’s
history. We are putting the strategies and capabilities in place to transform P&G
into a faster-growing, more profitable and far simpler company.
We are recommitting ourselves to putting the consumer at the center of everything
we do. The purpose of any business is to create a consumer and to serve that
consumer better than anyone else can. That’s why we’re investing in capabilities to
understand consumer needs better than ever. That’s why we’re investing in creating
and building brands that consumers prefer. And that’s why we’re investing in
innovative products that deliver better performance, quality, experiences and value.
As we rededicate ourselves to the fundamentals of consumer-preferred brands
and products, what has changed at P&G? What’s different, and how are we
building a better P&G?
A More Focused Business Portfolio
We conducted a comprehensive diagnosis to answer a fundamental strategic
question: Which businesses should P&G be in? We chose 10 business categories
where P&G understands consumers and has leading market positions, strong
brands, differentiated products and business models proven to grow and
create value. These 10 categories have been growing faster, and their operating
margins are higher than those of the total Company. Their sales and profits are
highly concentrated in the top consumer markets around the world. Yet they
have significant growth opportunity in big, developed countries such as the U.S.,
We are putting the strategies and capabilities in place
to transform P&G into a faster-growing, more profitable
and far simpler company.
In response to consumer demand, we
broadened our U.S. portfolio with Tide PODS
Plus Febreze, Tide PODS Free & Gentle and
Tide PODS Original Scent. These offerings
continue to fuel the Unit Dose segment, where
P&G’s global retail sales are over $1.5 billion.
Power Oral Care is an important P&G
business with annual sales over $1 billion,
including our most recent innovation
—
the first power toothbrush with Bluetooth®
technology. Current household penetration is
low, and we have significant growth potential
using our proven model to grow penetration.
2 The Procter & Gamble Company