We are focused on strategies that we believe are right for the long-term health of the Company with the objective of delivering total shareholder return in the top one-third of our peer group.
We are focusing our resources on our leading, most profitable categories and markets.
- We will focus on our core markets, such as the U.S., to strengthen and grow these businesses.
- We will focus our developing market investments on the categories and countries with the largest size of prize and highest likelihood of winning.
- We will focus the portfolio, allocating resources to businesses where we can create disproportionate value.
To create flexibility to fund our growth efforts and deliver our financial commitments, we are working to make productivity a core strength for P&G. We have taken significant steps to accelerate cost savings, including a five year cost savings initiative which was announced in February 2012. The cost savings program covers all elements of costs including cost of goods sold, marketing expense and non-manufacturing overhead.
Innovation has always been - and continues to be - P&G's lifeblood. To consistently win with consumers around the world across price tiers and preferences and to consistently win versus our best competitors, each P&G product category needs a full portfolio of innovation, including a mix of commercial programs, product improvements and game changing innovations.
Finally, we are focused on improving operating discipline in everything we do. Executing better than our competitors is how we win with customers and consumers and generate leadership returns for our shareholders.
Given current market growth rates, the Company expects the consistent delivery of the following annual financial targets will result in total shareholder returns in the top third of the competitive peer group:
- Grow organic sales modestly above market growth rates in the categories and geographies in which we compete,
- Deliver Core EPS growth of high single digits, and
- Generate free cash flow productivity of 90% or greater.