Proctor and Gamble 2008 Annual Report Download - page 4
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Chairman of the Board and
Chief Executive Officer
1.2001EPSexcludes$0.61pershareofcostsfromtheOrganization2005restructuring
programandamortizationofgoodwillandindenite-livedintangibleassets.
Note:Anexplanationandreconciliationoffreecashowandorganicsalesfor2008
isprovidedonpage55.
AttheheartofP&G’sdesignforgrowthisourcapabilityto
innovate—broadly,reliably,andsuccessfully,yearafteryear,in
everypartofourbusiness.Weinnovateacrossmorecategories
andonmoreleadingbrandsthananyotherconsumerproducts
company.Wehaveabroaderrangeofscienceandtechnology
thananyofourcompetitors.Weinvestmoreininnovationand
marketingsupportthananyotherconsumerproductscompany.
Wedeliveranunrelentingstreamofinnovationwithsystematic
discipline.AndP&G’sbusinessesarerunbywomenandmen
whoarenotonlygloballyexperiencedgeneralmanagersbut
alsohighlyskilledinnovationleaders.
ThishelpsP&Gdeliverconsistent,reliableinnovationandreliable,
sustainablegrowth.Innovationdrivesgrowth.
Wesawthisinscal2008,asP&Gdeliveredanotheryearof
innovation-drivengrowthatorabovetheCompany’starget
levelsforsales,earnings-per-shareandcashgeneration.
Netsalesincreased9%,to$83.5billion.Organicsales•
increased5%.
Dilutedearningspershareincreased20%,to$3.64pershare.
•
Freecashowfromoperatingactivitieswas$12.8billion,
•
or106%ofnetearnings,wellaheadofthe90%cash
productivitytarget.
Fiscal2008wasP&G’sseventhconsecutiveyearoforganicsales
growthatoraheadofthelong-termtargetrange;brandand
newproductinnovations,particularlyindevelopingmarkets,
accountedforvirtuallyallthissalesgrowth.Overthesameperiod,
dilutedearningspersharehavegrownatacompoundaverage
growthrateof13%,(1)wellaheadofourlong-termtarget.
We’vegeneratedmorethan$60billioninfreecashowsince
thebeginningofthedecade.Mostimportantly,we’vedelivered
consistentlystrongtotalshareholderreturnoverthepastten-,
ve-,three-andone-yearperiods,abovetheDowJones
IndustrialAverage.
&
Inlastyear’sannualreport,IexplainedhowP&Gisdesignedtogrow.
We’vedesignedaglobal,diversiedbusinessportfoliothatenablesP&Gto
growconsistentlyandreliably.We’vedevelopedthecorestrengths—consumer
understanding,brand-building,innovation,go-to-marketcapability,andscale—
thatareneededtowinintheconsumerproductsindustry.Wemanagethe
businesswithrigorousstrategic,nancialandoperatingdiscipline.We’vebuilt
themostdiverse,globallyexperiencedteamofbusinessleadersinP&G’s
171-yearhistory.TheseelementsworkincombinationtoensureP&Gcan
meetorexceeditsgrowthtargetsreliablyyearafteryear.
2 TheProcter&GambleCompany