Proctor and Gamble 2013 Annual Report Download - page 4

We are moving in the right direction. Company performance
is improving in several key measures. We are building on
this momentum. Business plans are more focused. The core
strengths and assets of our Company remain important sources
of competitive advantage and are the primary source of my
confidence in P&G’s future.
But there is more work to do. More business units have to
perform better more consistently. We are making the changes
necessary to improve performance significantly.
P&G’s Priority Is Value Creation
First, we’ve established value creation — for consumers and
shareholders — as our clear priority. This starts with winning the
value equation with the consumer, who is always the boss.
We have to win at the first moment of truth, when the consumer
chooses our product at the store shelf, and the second moment
of truth, when the consumer uses the product at home and
decides whether to buy it again. We also have to win at the
“zero moment of truth,” when the consumer discovers information
about our brands and products before they shop. When P&G
products win the consumer value equation versus competitors,
consumers reward us
— and our shareholders — with their hard-
earned money.
We’ll measure our business performance through operating
total shareholder return. This goal is important because it’s an
integrated measure of value creation at the business unit level.
Strong operating TSR requires sales growth, progress on
gross and operating margins, and strong cash flow productivity.
Business units will be guided by disciplined strategies and
operating plans that focus on the most important choices for
creating value.
P&G Is Driving Value Creation through
Productivity and Innovation
Second, we are significantly strengthening productivity and cost
savings efforts. Innovation and productivity are the two biggest
drivers of value creation. Innovation remains our primary driver
of growth, and we have a strong innovation pipeline, but we
need to increase our focus on productivity. Productivity provides
financial resources to invest in growth, and productivity frees
P&G people to fully utilize their capabilities and make bigger
contributions to the business.
With nearly $500 million in sales in
NorthAmerica this fiscal year, TidePODS
is now expanding globally — starting
with Latin America, Western
and Central Europe, and Africa.
Fusion ProGlide launched in the U.S.
three years ago. It is now in more than
45markets, most recently expanding
to Brazil, Mexico and China. Fusion
has grown global value share for
30straight quarters
— ever since the
first Fusion product launched.
Crest and Oral-B DWhite toothpaste
have grown value share in the U.S. for
13 consecutive quarters
— every quarter since
3DWhite first launched — and are now sold
in more than 40 markets globally.
We are focusing on core businesses, which include the leading,
most profitable categories and countries. Delivering strong results
in our core businesses is the largest contributor to shareholder
value creation. Core businesses are an important contributor to
growth, and an enabler of investments in developing markets
and innovation.
Margin
Improvement
Asset
Efficiency
Sales
Growth
Profit
Growth
Cash Flow
Growth
Total
Shareholder
Return
We’ve established value creation for consumers
and shareholders as our clear priority.
2 The Procter & Gamble Company