ANNUAL MEETING OF SHAREHOLDERS - MARQETA INC

Explicit Guidance:

• No specific financial guidance (revenue, EPS, margins, capex, etc.) for upcoming fiscal years was provided in this transcript.
• The dividend was declared at $1.0885 per share for the upcoming quarter, with payment expected on or after November 16, 2026 (record date: October 23, 2027 for common stockholders).
• The company noted a $250 million pre-tax headwind from tariffs in Fiscal Year 2026, with a total commodity, FX, and interest headwind of $1.2 billion for that period.

Business-Segment Outlook:

• Personal Healthcare: The acquisition of Thorne is expected to deliver "attractive margins and a strong top-line growth profile," complementing the personal healthcare business which has "delivered consistent growth over the past decade."
• Innovation Strategy: Focus remains on strengthening the "stronger core" (e.g., upgraded Tide lines) and "bigger more" (e.g., Tide Evo, Downy Unstoppable) to capture growth sources and attract more users in core categories like Laundry North America.
• AI Integration: AI will be leveraged to accelerate innovation, deepen consumer insights, model brands, and optimize supply chains, with a focus on using AI as an "amplifier of human potential" rather than eliminating jobs.

Market and Competitive Outlook:

• Management acknowledges recent performance has trended below peers and the S&P 500 but attributes this to external factors (media fragmentation, shifting retailer landscape, inflation) rather than a failure of core strategy.
• The company anticipates adjusting its execution framework to identify "superiority gaps" faster and modify product package, communication, presentation, and pricing to "ignite user growth."
• Competitive response involves adapting systems and organizational structure to become the "CPG company of the future" to counter private label and emerging brands.

Macro / Industry Outlook:

• Tariffs & Trade: Tariffs are viewed as a volatile component of the cost structure. Management confirmed the net impact of tariffs in FY2026 was negative ($250M) but indicated future tariff impacts (specifically regarding Canadian imports) will be detailed in an upcoming earnings call.
• Economic Environment: The outlook assumes a dynamic environment where external factors like inflation and commodity costs continue to drive volatility, requiring ongoing mitigation through internal productivity and savings.
• Regulatory Landscape: The Board advised against a shareholder proposal regarding SEC Rule 14AA, noting the rule has not yet been rescinded and changes remain subject to the rulemaking process; management plans to evaluate actual regulatory changes as they occur.

Strategic Initiatives:

• M&A: The acquisition of Thorne is the key strategic move mentioned, targeting the beauty and health expansion to leverage growth potential and regulatory characteristics.
• Sustainability & Packaging: A target of 80% of consumer packaging designed to be recyclable or reusable (up from 55% in 2018) and a 24% reduction in virgin petroleum plastic use. Progress relies on industry coalitions to scale recycling infrastructure beyond P&G's direct control.
• Supply Chain: Commitment to transforming supply chains to be "more agile and cost-effective," with a strategic focus on keeping production close to consumers (e.g., >85% of U.S. products made in the U.S.) to reduce transportation costs.
• Stock Split: Management stated they "do not foresee splitting the stock," citing fractional share availability and the lack of financial benefit relative to administrative costs.

Risks and Headwinds to Outlook:

• Cost Volatility: Exposure to fluctuations in tariffs, commodities, foreign exchange rates, and interest rates remains a significant headwind.
• Infrastructure Dependencies: Achieving sustainability goals (circular economy) is dependent on supply chain and recycling infrastructure progress which is "beyond P&G's direct control."
• External Uncertainty: Future regulatory changes regarding shareholder proposal thresholds (SEC Rule 14AA) are uncertain, though currently pending.

Management Tone on the Future:

• Confidence: Management expressed strong confidence in the company's core competencies, stating, "We are in the right categories... We know how to grow them."
• Outlook: The tone is forward-looking and adaptive, characterizing current market headwinds as "catalysts for P&G to evolve into the CPG company of the future."
• Commitment: Reiterated commitment to long-term value creation, consistent dividend growth (70 consecutive years of increases), and a strategy focused on "delighting consumers and winning with retail partners."

Miscellaneous:

• Shareholder proposals regarding lower thresholds for special meetings, SEC rule-based proposal eligibility, and annual reporting on charitable contributions were all recommended to be voted against and subsequently failed.
• The Board size is set at 12 directors, with director compensation benchmarked around the 44th percentile of peers.