The Procter & Gamble Company (NYSE:PG) Q4 2015 Earnings Conference Call - Final Transcript
Jul 30, 2015 • 08:30 am ET
strong cash productivity will include continued improvement of payables, including continued progress on our supply chain financing program and continued steady improvement in inventory levels. These improvements should offset an increase in capital spending as we invest in the supply chain transformation A.G. and I discussed earlier. We expect CapEx to be between 5% and 6% of sales for the fiscal year.
We'll continue to build on our strong track record of cash and overall value return to shareholders. In addition to the $8 billion to $9 billion of shares we expect to retire, we expect dividend payments of more than $7 billion. In total, $15 billion to $16 billion in dividend payments, share exchanges and share repurchase.
To briefly recap the key assumptions underpinning our fiscal 2016 outlook, this guidance assumes mid-July foreign exchange rates and commodity prices. Further significant currency weakness is not anticipated within our guidance. Like 2015 then, we're setting up fiscal 2016 as a year, given all of the market and FX volatility and pricing, of modest top line growth, solid core operating income growth, relatively robust constant currency core earnings per share growth and strong 90% to 100% free cash flow productivity.
We'll continue to tighten and implement our strategy on the core business, investing where appropriate to build capabilities for long-term success. We'll continue to drive meaningful productivity opportunities. We'll invest in sales coverage, innovation and the supply chain and we'll substantially complete the execution of our portfolio redesign.
That concludes our prepared remarks for this morning. As a reminder, business segment information is provided in our press release and will be available in slides, which will be posted on our website www.pg.com following the call.
Now A.G. and I would be happy to take questions.