Strong portfolio of global and local brands, with 34 billion-dollar brands generating more than three-quarters of annual sales. Widespread geographic diversity with solid presence in both mature and emerging markets. Continued investment in research and development (about 2% of sales) to support innovation and future growth. Extensive manufacturing and distribution footprint. Increased focus on portfolio revision to enlarge the weight of higher-growth products and geographies. Between now and 2020, we expect a gradual increase in adjusted leverage to about 2x, driven by the implementation of the recently announced share buyback plans. Strong cash flow generation. Track record of share buybacks and large acquisitions. Dividend policy expected to remain consistent with the historical trend. The stable outlook reflects our expectation that
