2025_Mid-Year_Briefing_Global_Leaders_Strategy
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Key Themes from Global Leaders Across Industries
An Economy in Transition
The 2025 Mid-Year Briefing:
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By harnessing the transformative power of Artificial Intelligence across all functions, executing deep strategic business model transformations, and maintaining a bedrock of financial discipline to deliver superior shareholder returns.
Answer
How are leading companies navigating this complexity to drive growth and create value?
Core Question
%
However, they face persistent headwinds from geopolitica tensions, tariff uncertainty, and volatile consumer sentiment, creating a complex operating landscape.
Complication
Global corporations are operating in a dynamic environment marked by significant technological opportunity.
Situation
The State of Global Business: Navigating Headwinds Through Transformation
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-Jon Moeller, CEO,Procter & Gamble
We're pleased with the performance PNG people delivered last fiscal year in the face of a very dynamic, difficult, and volatile environment... despite heightened consumer anxiety with tariffs, inflation, interest rates, political and social divisiveness.."
Acknowledging a Landscape of Volatility and Uncertainty
Navigating the Crosscurrents
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-Berkshire Hathaway
'The pace of changes in these events, including tensions from developing international trade policies and tariffs, accelerated through the first six months of 2025."
Consumer behavior remains unpredictable, forcing companies to stay agile.
Volatile Consumer Dynamics
The recent EU-US tariff agreement is described as "manageable" but still a notable factor, with price increases considered to "offset at least part of the tariff impact."
Manageable
P&G projects a pre-tax headwind from tariffs in fiscal 2026.
$1billion
The direct financial impact of tariffs is a significant planning variable for consumer-facing multinationals.
The Tariff Effect
-ICBC
"rigid and complex external environment," highlighting the challenges in Asia.
-L'Oréal
"ongoing economic and geopolitical tensions" as a key factor in its operating context."
Leaders across sectors acknowledge a complex external environment, from geopolitical conflicts to shifting trade policies.
Geopolitical & Macroeconomic Pressures
Global Headwinds Are a Shared Reality
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Satya Nadella, CEO, Microsoft
Cloud and Al are the essential inputs for every business to expand output, reduce costs, and accelerate growth."
Reshaping Every Industry, from Cloud Infrastructure to Consumer Goods
The Al Imperative
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Key Takeaway: Demand for core Al infrastructure is surging, forming the bedrock of the new economy.
Digital natives and enterprises are choosing GitHub Copilot to equip their developers.
Total Azure Growth
Non-Al Growth
TARGET
HPE
CISCO
twilio
Customer Adoption
Hundreds of thousands of customers Up 3x
M365 Copilot
GitHub Copilot 15 million+ users Up >4x
+16 p.p. from Al Services
+35%
Microsoft Platform Adoption (YoY)
Azure's Q3 revenue growth at constant currency
The AI Platform Layer is Experiencing Hyper-Growth
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Ramping up investment in GPUs and servers to build Al capabilities.
Integrating Al into WeChat with features like Al- powered citations and Yamba, an Al-native app.
Upgraded advertising foundation model is leading to better ad performance and rapid revenue growth.
"We are striving to bring further benefits of Al to consumers and enterprises..." - Pony Ma, CEO, Tencent
Tencent is leveraging Al to enhance its flagship platforms, driving both user engagement and commercial performance.
Consumer & Social AI
Tencent
Cloud ERP Suite revenue grew at constant currencies.
+33%
Successful execution of its 2024 transformation program is enabling further investment into its cloud and Al offerings.
SAP is positioning itself as a leader in "business Al," uniting critical operations from finance to supply chain.
Enterprise & Business AI
SAP
Al is Becoming the Co-Pilot for Business and Life
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Swiffer's history.
to create the superior "Mop Smarter' campaign, making it the largest product launch in
Al studios
For the Swiffer Power Mop launch, content from TikTok creators was tested with P&G's proprietary
P&G uses Al to test and refine its marketing campaigns for maximum impact before launch.
Procter & Gamble: AI-Driven Consumer Insight
Named Fortune's Most Innovative Company in Europe, validating its strategy of
"innovation fueled by science, technology, and creativity."
Innovation:
"significantly reducing time and cost."
Using the Omniverse platform to create detailed 3D product models,
Nvidia Partnership:
An "AMP optimization tool" being rolled out globally to improve media efficiency.
Beta IQ:
L'Oréal leverages Al to optimize marketing spend and accelerate innovation.
L'OREAL
L'Oréal: AI-Powered Beauty Tech
AI Moves from the Cloud to the Consumer
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- Jon Moeller, CEO, Procter & Gamble
Our strategy is working. Our bench is strong... it's a good time to transition to the next generation to lead the P&G team through its next chapter of top and bottom line growth and of course value creation."
How Leaders Are Actively Remaking Their Business Models for Future Growth
The Response: Deep Strategic Transformation
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This is a clear example of a legacy company successfully pivoting to a new growth engine.
in U.S. net revenues for ZYN.
~$2 billion
users of PMl's smoke-free products.
38.6 million+
advantage in Smoke-Free gross profit margin vs. combustibles in 2024, a reversal from a (28.8) p.p. deficit in 2018.
+2.7p.p.
of total net revenues from Smoke-Free products, with a goal of >2/3 by 2030.
~39%
2024
2023
2022
2021
2020
2019
2018
2017
2016
2015
IQOS Net Revenues
Inflection Point
Marlboro Net Revenues
PMI Net Revenues (In $ Billions)-2015 to 2024
PMI is executing one of the most significant transformations in consumer goods,building a multi-billion dollar business around smoke-free alternatives.
Case Study: Philip Morris International's Smoke-Free Revolution
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first half alone, up over 50% YoY, indicating massive digital engagement.
beauty searches on TikTok in the
6.5billion
(+23% YoY)
in Zelle®transactions
$130 billion
of total sales were digitally-enabled
65%
A record
twice as fast as the overall market.
low teens
Online channels grew in the
digital logins (+17% YoY)
4.0 billion
E-commerce now accounts for almost total sales.
active digital banking users
(+1.9M YoY)
of
29%
49 million
E-commerce metrics, H1 2025
Digital metrics, Q1 2025
L'Oreal has successfully pivoted to a digital-first commerce model, capturing growth in the fastest- growing channel.
BofA has built a powerful digital platform that now handles the majority of customer interactions and sales, driving efficiency and engagement.
L'Oréal: Mastering Digital Commerce
L'OREAL
Bank of America: Engineering Digital Trust
BAHS CFANESCA
Digitizing the Customer Relationship
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- Alastair Borthwick, CFO, Bank of America
We run our business in a manner intended to withstand volatility for the long-term. And through our capabilities, relationships and financial flexibility, we believe we are well-positioned to continue delivering for our clients and shareholders."
Translating Strategy into Financial Resilience and Shareholder Value
Bedrock of Strength
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All Other lOCs Combined
ExxonMobil: $13.5B
Debt-to-capital ratio of 13%.
Cumulative structural cost savings delivered since 2019.
$13.5B
Net-debt-to-capital ratio, reflecting a highly conservative capital structure.
8%
Structural Cost Savings (ExxonMobil)
ExonMobil
Industry-Leading Leverage (ExxonMobil)
ExconMobil
Financial strength and redundant liquidity are of "paramount importance."
Seven consecutive quarters of average deposit growth, reaching nearly $2 trillion.
Massive liquidity position in cash and U.S. Treasury Bills as of June 30,2025.
$339.8B
CET1 Capital Ratio, well above the 10.7% regulatory minimum.
11.8%
Unmatched Liquidity (Berkshire Hathaway)
BERXSHIRE HATHAWAY
(Bank of America)
Capital Strength
SSNNCFANEENCA
Fortified Balance Sheets and Disciplined Operations Provide a Stable Core
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Increase in Smoke-Free Gross Margin (Q1'25, Organic), showcasing the superior profitability of its transformation
+670 bps
PHILIP MORRIS INTERNATIONAL
Increase in Core Operating Margin (FY'25), enabled by nearly $2.7 billion in productivity improvements.
+50 bps
Procter&Gamble
A new first-half record for Operating Profit Margin, reflecting cost control and operational efficiencies.
Increase in Non-IFRS Operating Margin (Q1'25 YoY), driven by operational efficiencies from its transformation program.
21.1%
+8.2pp
L'OREAL
SAP
Profitable Growth is the Outcome of Strategic Execution
Repurchased ~40% of shares issued to acquire Pioneer Natural Resources since May 2024.
dividends and share repurchases.
Returned to shareholders in Q1 2025 through
$6.5 Billion
in share repurchases.
$5.0 billion
including
Total shareholder distributions in Q2 2025 alone,
$9.2 Billion
BANK OF AMERICA
ExonMobil
In a volatile environment, the ability to generate and return capital is the ultimate measure of a successful strategy.
The Ultimate Payoff: Delivering Billions in Shareholder Value
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The throughline for global leaders in 2025 is clear: Harness disruption, execute bold transformations, and maintain financial discipline. This is the formula for navigating complexity and creating enduring value.