{
  "docId": "019dd923-622c-750b-8b9b-7b0c6b27c958",
  "docSlug": "650ed2b9854a",
  "documentTitle": "The Procter & Gamble Company (PG)",
  "authorId": "01_Pershing_Square",
  "authorName": "William Ackman",
  "documentKindSlug": "conference-presentation",
  "documentKindLabel": "Conference presentation",
  "sourceTypeSlug": "activist_investor",
  "sourceTypeLabel": "Activist investor",
  "presentationDate": "2013-05-08 00:00:00",
  "orientation": "landscape",
  "aspectRatio": 1.2941177,
  "pageNumber": 23,
  "pageCount": 45,
  "prevPage": 22,
  "nextPage": 24,
  "slideType": "valuation_table",
  "function": "show_valuation_bridge",
  "density": "overcrowded",
  "nDataPoints": 5,
  "notes": "The slide uses a bridge calculation to justify a margin expansion target.",
  "elementsJson": [
    "headline_text",
    "callout_box",
    "data_table",
    "footnote"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b9b-7b0c6b27c958/23",
  "deckHref": "/decks/019dd923-622c-750b-8b9b-7b0c6b27c958",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b9b-7b0c6b27c958.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b9b-7b0c6b27c958#slide-23",
  "components": [
    {
      "bbox": {
        "h": 0.12,
        "w": 0.86,
        "x": 0.07,
        "y": 0.23
      },
      "kind": "callout",
      "text": "If P&G could achieve 3.5% annual COGS productivity over the course of its restructuring program from FY 2011 to 2016, we believe the Company would easily generate 51.5% gross margins",
      "attrs": null,
      "subkind": "primary",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "4dde0105-4957-4124-a64e-d7ecdd0a5a50",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "metric",
      "text": "gross margin: 51.5%",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
      "confidence": null,
      "componentId": "019dd953-0934-771a-b7ac-84c41a20071d",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.13,
        "w": 0.58,
        "x": 0.21,
        "y": 0.67
      },
      "kind": "paragraph",
      "text": "We estimate that P&G can utilize more than 90% of its COGS savings to reinvest in pricing, offset commodity inflation, counterbalance negative product and geographic mix and still achieve our gross margin estimate",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "2572687d-2bab-4017-91c8-5f4a13bcb7a3",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.07,
        "w": 0.88,
        "x": 0.06,
        "y": 0.86
      },
      "kind": "source-note",
      "text": "Note: FY 2011 gross margin of 50.9% represents the fiscal year prior to P&G's restructuring program. FY 2012 gross margin of 49.6% declined 130bps from FY 2011 as the negative impact of reinvestment more than offset the positive impact of COGS productivity. Estimate of 750bps of total COGS productivity based on a 5-year total of COGS savings of more than $7.2bn and FY 2016E Revenue of $97bn.",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "772ba522-c5d4-4827-8d37-98b6b7e65c37",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.25,
        "w": 0.76,
        "x": 0.12,
        "y": 0.38
      },
      "kind": "table",
      "text": "FY 2011 Gross Margin (Start of Restructuring) 50.9% Plus: 3.5% Annual COGS Productivity ~750bps Less: Reinvestment, Inflation, Negative Mix Shift ~(690)bps FY 2016E Gross Margin 51.5%",
      "attrs": null,
      "subkind": "valuation",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "48c0bcfa-02cb-421c-bfdb-c1d2fba855e5",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.04,
        "w": 0.72,
        "x": 0.04,
        "y": 0.16
      },
      "kind": "title",
      "text": "Gross Margins – COGS Productivity at 3.5%",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "95ad4a0f-3b2c-4cc6-93be-fa6723c10f06",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [
    {
      "name": "Waterfall chart",
      "slug": "waterfall-chart",
      "agent": null,
      "layer": "slide",
      "matchId": "656b0851-7357-4d66-a5d9-afde96fe69f3",
      "evidence": "table/valuation: FY 2011 Gross Margin (Start of Restructuring) 50.9% Plus: 3.5% Annual COGS Productivity ~750bps Less: Reinvestment, Inflation, Negative Mix Shift ~(690)bps FY 2016E Gross Margin 51.5%",
      "confidence": 0.7
    }
  ],
  "frameworks": [
    {
      "name": "bridge-analysis",
      "slug": null,
      "matchId": "a645b509-32f8-48d0-a432-37d9e1473071",
      "evidence": "The table structure shows a starting value, additions, subtractions, and a final result.",
      "confidence": 0.9
    }
  ],
  "arcBeats": [
    {
      "to": 27,
      "from": 14,
      "beatId": "e7a8710b-30fc-45c9-8a0a-d31adc103ebd",
      "arcName": "The Consultant's Gambit",
      "arcSlug": "consultants-gambit",
      "beatName": "Evidence & Proof",
      "beatSlug": "consultants-gambit-evidence-proof",
      "evidence": "The presentation provides data and benchmarks to support its claims",
      "position": 2,
      "confidence": 0.8,
      "parentBeatName": "Evidence",
      "parentBeatSlug": "evidence"
    }
  ],
  "loops": [],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}