2014 Analyst Meeting

November 13, 2014

Agenda
Results & Outlook
Strategic Focus Areas
Break
Investor Questions
Q&A

Fiscal Year 2014 Results

Organic Sales Growth*
4%
3%

3%

3%

FY 2012

FY 2013

FY 2014

3%
2%
1%
0%
* Restated
Care
* Restated
for for
PetPet
Care

Fiscal Year 2014 Results

Core EPS Growth*
8%
6%

6%

5%

4%
2%
-1%

0%
-2%
FY 2012

FY 2013

FY 2014

* Restated for Pet Care

Fiscal Year 2014 Results

Core EPS Growth*
14%
12%
10%
8%
6%
4%
2%
0%
-2%

14%

Currency Neutral Core EPS

Core EPS

10%
6%

-1%

5%

Flat

FY 2012

FY 2013

FY 2014

* Restated for Pet Care

Fiscal Year 2014 Results

Cash Productivity
FY 2014
Free Cash Flow

$10bn+

Free Cash Flow Productivity

86%

Free Cash Flow Productivity excl.

Voluntary Pension Contribution

94%

Fiscal Year 2014 Results

Returning Value to Shareholders
$ Billions

FY 2014

Share Repurchase

6.0

Dividends

6.9

Value to Shareholders

12.9

% of Net Earnings

110%

FY 2015 Q1 Results
Organic Sales & EPS Growth
FY 15 vs FY 14
Organic Sales Growth
Currency & Divestiture Impacts
All-In Sales Growth

+2%
-2%
In-Line

Core Earning Per Share Growth

+2%

Currency Neutral Core EPS Growth

+9%

FY 2015 Q1 Results
Cash
Q1 FY 2015
Operating Cash Flow

$3.6bn

Free Cash Flow

$2.8bn

Adjusted Free Cash Flow Productivity

96%

FY 2015 Q1 Results
Returning Value to Shareholders
$ Billions

Q1 FY 2015

Share Repurchase

2.4

Dividends

1.8

Value to Shareholders

4.2

FY 2015 Guidance
Duracell Exit
No impact on FY15 organic sales growth
or core EPS growth

FY 2015 Guidance No Change

Organic Sales & EPS Growth
FY 2015
Organic Sales Growth

Low to Mid-Single Digits

Currency
All-In Sales Growth

~2%
In-Line to Low Single Digits

Core Earning Per Share Growth

Currency Neutral Core EPS Growth

Mid-Single Digits
Double Digit

FY 2015 Guidance
Risks Not Included in Guidance
Further currency weakness
Further market size contraction
Unrest in the Middle East
& Eastern Europe
Further pricing controls
& import restrictions
Business disruptions in Latin America
Any major portfolio moves

FY 2015 Guidance
Potential Tailwinds Not in Guidance
Currency & commodities ease
Market size expansion
Easing political tensions and
improved consumer confidence

FY 2015 Guidance
Top-line comps more difficult
in Q2 vs. Back-Half
Pricing benefits build through FY
Expect significant top & bottom-line
FX headwinds in Q2
Productivity savings build through FY

FY 2015 Guidance
Adjusted Free Cash Flow Productivity
120%
Stretch Objective of 95-100%

105%
90%
75%
60%
45%
30%
15%
0%
FY 06

FY 07

FY 08

FY 09

FY 10

FY 11

FY 12

FY 13

FY 14

FY 15e

FY 2015 Guidance
Returning Value to Shareholders
$ Billions

FY 2015

Share Repurchase

5-7

Dividends

~7

Value to Shareholders

Purpose,
Vision &
Values
Culture

Leadership

Sustainable
Growth & Value
Creation Drivers

~12 - 14

Goals

Sustainable
Growth
& Value
Creation

Systems

Strategies

Structure

Vision
To be the leading consumer products company
with consumer preferred brands and products
that are winning value creators in their industry.

Objectives
Superior Value for Consumers
Superior Value for Shareholders

Consumer, Customer &

Shareowner Value Creation
Sales
Growth
Profit
Growth
Total
Shareholder
Return

Margin
Improvement
Cash Flow
Growth
Asset
Efficiency

Strategic Balance
O-TSR Drivers
Developed & Developing Markets
Category & Brand Portfolio
Short, Medium & Long Term
Innovation & Productivity
Scale & Focus

TSR

Where to Play
Core
categories, segments, brands
countries, channels, customers

Focused, Strengthened Portfolio

simplify, strengthen current portfolio
selectively, strategically address new categories
new, fast-growing channels

Developing Markets

How to Win
Winning Consumer Moments of Truth
Leading Innovation and Productivity
Execute with Excellence

Recommitment to the Consumer

Zero

First

Second

Win the Three Moments of Truth

Strategic Focus Areas

Portfolio
Innovation
Productivity
Execution

Strategic Step Forward

to Accelerate Performance
70 to 80 leadership brands
~12 businesses / categories
4 industry-based sectors

Focused, Strengthened Portfolio

Core 70 to 80 brands are
leaders in their industries,
categories, or segments
Generate ~90% of sales
and more than 95% of profit

Leading Brands
Brands that
Shoppers buy
Consumers use
Customers support

Leaders in
equity, awareness, trial, purchase
and loyalty
product performance, product innovation
growth and value creation

Focused Portfolio
Top Market Impact
Scale Retained in Top Markets
U.S.
Greater China
UK/Ireland
Russia
Germany
Japan

Focused Portfolio
Disciplined Process, Minimal Distraction
Timing driven by ability to create value
90-100 brands, NOT 90-100 transactions

10

Portfolio Progress
To date, 28 brands divested,
discontinued or plans to consolidate

Pet Care Exit

Duracell Exit
Goals:
Maximize value to P&G shareowners
Minimize EPS dilution
Transaction 1: Sale of interest in Nanfu
battery joint venture
Transaction 2: Exit of Duracell business

11

Duracell Exit
Step 2: Exit Duracell business
Berkshire Hathaway to acquire Duracell in
split in exchange for P&G stock
~$1.8 billion cash infusion
Tax efficient transaction for P&G shareholders
Valued at ~7X EBITDA
Cash sale equivalent value of ~9X EBITDA

Duracell Exit
Goals:
Maximize value to P&G shareowners
Minimize EPS dilution

Portfolio Progress
To date, 28 brands reduced
10 additional brands in hands of prospective buyers

12

Strategic Step Forward

to Accelerate Performance

More agile & responsive

More flexible & faster
Faster growing
More profitable
Simpler to operate

Innovation
Consumer needs and wants
Brand promise
Consumer-preferred
product and packaging
Sustained growth
and value creation

7 of Top Ten
2013 IRI Pacesetters

Innovation Drives
Value Creation

Creates value for consumers

Combats commoditization
Stimulates category growth
Builds cumulative advantage
for our brands
Creates value for shareowners

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# of
Buyers

Consumer-Driven TSR

How Often
They Buy

Sales
OTSR
Growth

How Much
They Buy

Margin
Improvement

Price
They
Pay

Asset
Efficiency

Profit
Growth
Total
Shareholder
Return
Cash Flow
Growth

Driven by Innovation
Consumer needs and wants
Brand promise
Consumer-preferred
product and packaging
Sustained growth
and value creation

7 of Top Ten
2013 IRI Pacesetters

Consumer-Inspired Innovation

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Fabric & Home Care

Fiscal Year 2014:
Sales = $26.1bn
Net Earnings = $3.0bn
Global Market Size ~$140bn

Fabric Care
Innovation History
$9

$7

Tide Pods
Tide
2x Compaction

Tide Liquid
w/Bleach
Alternative

Tide
Simply
Tide & Downy
Scent Line
Extensions

Tide
Value Adds

$5

Unstopables
Gain Liquid

$3
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014

Unit Dose Detergents

Consumer Safety Education
On-pack reminders
TV campaign

15

Unit Dose Detergents

Consumer Safety Education
On-pack reminders
TV campaign
Digital campaign

Baby, Feminine, & Family Care

Fiscal Year 2014:
Sales = $21.0bn
Net Earnings = $2.9bn
Global Market Size ~$99bn

Health & Grooming

Fiscal Year 2014:

Sales = $15.8bn
Net Earnings = $3.0bn
Gross Market Size* ~$86bn

* Where P&G competes

16

Beauty, Hair & Personal Care

Fiscal Year 2014:
Sales = $19.5bn
Net Earnings = $2.7bn
Global Market Size ~$300bn

Beauty Care

Cost Productivity Drivers

Cost of
Goods
Sold

Sales
OTSR
Growth

Marketing

Margin
Improvement

Profit
Growth
Total
Shareholder
Return
Cash Flow
Growth
Overhead

Asset
Efficiency

17

Productivity
Cost of Goods Savings ($bn)

$1.2

FY 12

$1.6

~$1.6

FY 14

FY 15e

$1.3

FY 13

Productivity
Marketing Expense
Non-Working
Marketing
~$4bn
Advertising
~$9bn

Marketing Efficiency
Targeted Investments
Marketing % Sales
(FY14 vs. FY13)
U.S. Tide

+ 60bps

U.S. Pampers

+230bps

18

Productivity
Overhead
Non-mfg enrollment
down >16% (vs. 6/30/11)
Down in Q1-FY15

Productivity
Organization Design Choices

4 Sectors / 5 SMOs
SMOs focused on selling
BUs focused on brands
Single Brand Management function
Leveraging Service Centers
Flow-to-the-Work Designs

Productivity
Top Management Efficiency
Fiscal Corporate
Year
Officers
2000
33
2007
2014
Target

44
39
~33

Sales
$39.9 bn
$76.5 bn
$83.1 bn
>$80.0 bn

19

Productivity
Organization Capability Investments

Research & Development

Sales Coverage
Quality
Tax
Legal

Core SG&A Overhead % Sales

18%

14%

10%
FY 06 FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17

Cash Productivity

Supply Chain Financing

Best-in-Class Receivables
Inventory Reduction
Capital Efficiency

20

Execution
Branding
Trial Rates
Tide Pods
Gain Flings
Fusion ProGlide
Swiffer Sweeper
Metamucil

11%
4%
14%
10%
4%

Execution
Selling
Retail Account, Wholesaler
and Distributor Strategies
Distribution, Shelving
and Merchandising In-Store
Pricing Execution

Recommitment to the Consumer

Zero

First

Second

Win the Three Moments of Truth

21

Culture

Purpose,
Vision &
Values

Sustainable
Growth & Value
Creation Drivers

Goals

Sustainable
Growth
& Value
Creation

Leadership

Systems

Strategies

Structure

Recent Gross Margin Progress

Productivity Savings
FY
2015

FY 2014
Savings
Core

Q1

Q2

Q3

Q4

FY

+200 +230 +335 +345 +270

Q1
+260

Recent Gross Margin Progress

Core Gross Margin Change
Core Gross
Margin Change
All In
Excluding FX &
Commodities

FY 2014
Q1

Q2

Q3

Q4

(130)

(90)

(120)

(50)

+10

+30

+30

+110

22

Recent Gross Margin Progress

Core Gross Margin Change
Core Gross
Margin Change Q1
All In
Excluding FX
& Commodities

FY 2014
Q2

FY 2015
Q4

Q1

(130) (90) (120) (50)

+20

+120

+10 +30

Q3

+30 +110

FYe

Enablers for Gross Margin Growth

Cost savings

Enablers for Gross Margin Growth

Cost savings
Pricing to off-set foreign exchange

23

Enablers for Gross Margin Growth

Cost savings
Pricing to off-set foreign exchange
Stabilization in commodity prices

Enablers for Gross Margin Growth

Cost savings
Pricing to off-set foreign exchange
Stabilization in commodity prices
Innovation

Enablers for Gross Margin Growth

Cost savings
Pricing to off-set foreign exchange
Stabilization in commodity prices
Innovation
Developing Market Margins

24

Developing Market Margins

Fiscal Year 14
% of Sales

Developing

Gross Margin

44%

Operating Margin

14%

AT Margin

11%

Developing Market Margins

Fiscal Year 14
After-tax Margin
Global Average ~14%

Saudi Arabia

China

Philippines

Russia

Premiumization
Growth by Price Tier - Brazil
Market Value Split Across
Tiers (%)

P&G
Share

Growth Rate IYA

Super-premium

116

30

Premium

41

117

32

Mid

28

115

25

Value

26

109

22

25

Premiumization
Growth by Price Tier - China
Market Value Split Across
Tiers (%)

P&G
Share

Growth Rate IYA

Super-premium

20

111

23

Premium

33

111

34

Mid

29

99

28

Value

18

97

18

Premiumization
Growth by Price Tier - Russia
Market Value Split Across
Tiers (%)

P&G
Share

Growth Rate IYA

Super-premium

97

Premium

10

109

33

High

33

103

56

Mid

47

96

48

Value

102

12

Developing Markets Opportunity

Localizing Manufacturing

Reduced transportation & warehousing costs

Lower duties and indirect taxes
Less volatility from Foreign Exchange
Improved response time for
customers & consumers

26

Developing Markets
Margin Optimization
@ constant $

FY13

FY14

FY15e

Sales growth

6%

7%

7%

AT Profit growth vs.

Sales growth

~2x

~4x

~2x

Achieving Our Objectives

Sales
Organic Sales Growth
FY 2014

3%
Growing Premium segment
Entering, creating and growing new categories
Improving brand building and selling execution
Strengthening presence in faster growing channels
Focusing portfolio

Long-Term
Objectives

Ahead of
Underlying Market

Achieving Our Objectives

Earnings Per Share
Core EPS Growth
FY 2014

5%
Top line Drivers
PLUS
Productivity Savings

Long-Term
Objectives

High Single Digit

27

Achieving Our Objectives

Adjusted Free Cash Flow Productivity
Free Cash Flow Productivity
93%

P3Y Average

Supply Chain Redesign

Supply Chain Financing
Manufacturing Platform Standardization
Long-Term
Objectives

90%+

Long-Term Objective
Sales
OTSR
Growth
Profit
Growth
Total
Shareholder
Return

Margin
Improvement
Cash Flow
Growth
Asset
Efficiency

Free Cash Flow

Companies Comparison
Revenue
($bn)

Net Income
($bn)

Free Cash Flow

($bn)

Walmart

476.3

16.0

10.1

General Motors

152.1

5.3

2.8

United Health Group

122.5

5.6

5.7

Nestle

92.4

10.0

10.1

P&G

83.1

11.7

10.1

Johnson & Johnson

73.1

13.8

13.8

PepsiCo

66.4

6.7

6.9

Coca-Cola

46.9

8.6

8.0

28

Strategic Step Forward

to Accelerate Performance
70 to 80 leadership brands
~12 businesses / categories
4 industry-based sectors

Value Eroding Pressure

Category Birth Rates

Category $ Sales (MM)

$1,550

101.1

HHs Buying on Deal

50.0

$1,500
45.0

25%

$1,450
40.0

$1,400

98.5
$1,350
$1,300

35.0
30.0

Point of Market Entry

Introduce Brand

Build Relationship Create Preference

29

Pampers
US Diapers Market Share
46
44
42
40
38
36
34
32
30

Pampers

Huggies

01/31/09

09/27/14

Take responsibility
for category growth
& value creation
Play to P&G strengths

US Fabric Care Challenges

Larger Machines = Fewer Loads

Hi-Lo
Escalation

Average Capacity of
Machine Sold

30

Trade In
HH Penetration, Verticalize Portfolio

Trade Up
Superior Products, New Forms

Trade Across
Regimen

31

Tide
US Laundry Market Share
65.0

~62

60.0
55.0
50.0
P&G Laundry

Tide

~42

45.0
40.0
35.0
'09

'10

'11

'12

'13

'14

Note: 14 share is FYTD US AOS through Sep 2014

Evolving Gillette
Business Model
1. Shift from Shaving to Grooming
2. Drive big, obvious innovations
3. Transform POME
4. Drive Gillette shave club
and subscription

H&S vs Pantene
$ MM NOS
3,500
3,300
3,100
2,900
2,700
2,500
2,300
2,100
1,900
1,700
1,500
07/08

08/09

09/10

10/11

11/12

12/13

13/14

14/15

32

Always Discreet Consumer Testimonials

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and grateful for such a great product. Not only does it hold the wetness, it

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with confidence from now on.
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made in this type of product !! I absolutely am liking very very much the thinness and
length of them.

Forward Looking Statements

Certain statements in this release or presentation, other than purely historical information, including estimates, projections, statements relating to our business plans, objectives,
and expected operating results, and the assumptions upon which those statements are based, are forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements generally
are identified by the words believe, project, anticipate, estimate, intend, strategy, future, opportunity, plan, may, should, will, would, will be, will continue,
will likely result, and similar expressions. Forward-looking statements are based on current expectation and assumptions that are subject to risks and uncertainties which may
cause results to differ materially from the forward-looking statements. We undertake no obligation to update or revise publicly any forward-looking statements, whether because
of new information, future events or otherwise. Risks and uncertainties to which our forward-looking statements are subject include: (1) the ability to achieve business plans,
including growing existing sales and volume profitably and maintaining and improving margins and market share, despite high levels of competitive activity, an increasingly
volatile economic environment, lower than expected market growth rates, especially with respect to the product categories and geographical markets (including developing
markets) in which the Company has chosen to focus, and/or increasing competition from mid- and lower tier value products in both developed and developing markets; (2) the
ability to successfully manage ongoing acquisition, divestiture and joint venture activities to achieve the cost and growth synergies in accordance with the stated goals of these
transactions without impacting the delivery of base business objectives; (3) the ability to successfully manage ongoing organizational changes and achieve productivity
improvements designed to support our growth strategies, while successfully identifying, developing and retaining particularly key employees, especially in key growth markets
where the availability of skilled employees is limited; (4) the ability to manage and maintain key customer relationships; (5) the ability to maintain key manufacturing and supply
sources (including sole supplier and plant manufacturing sources); (6) the ability to successfully manage regulatory, tax and legal requirements and matters (including product
liability, patent, intellectual property, price controls, import restrictions, environmental and tax policy), and to resolve pending matters within current estimates; (7) the ability to
resolve the pending competition law inquiries in Europe within current estimates; (8) the ability to successfully implement, achieve and sustain cost improvement plans and
efficiencies in manufacturing and overhead areas, including the Company's outsourcing projects; (9) the ability to successfully manage volatility in foreign exchange rates, as well
as our debt and currency exposure (especially in certain countries with currency exchange controls, such as Venezuela, Argentina, China, India and Egypt); (10) the ability to
maintain our current credit rating and to manage fluctuations in interest rate, increases in pension and healthcare expense, and any significant credit or liquidity issues; (11) the
ability to manage continued global political and/or economic uncertainty and disruptions, especially in the Company's significant geographical markets, due to a wide variety of
factors, including but not limited to, terrorist and other hostile activities, natural disasters and/or disruptions to credit markets, resulting from a global, regional or national credit
crisis; (12) the ability to successfully manage competitive factors, including prices, promotional incentives and trade terms for products; (13) the ability to obtain patents and
respond to technological advances attained by competitors and patents granted to competitors; (14) the ability to successfully manage increases in the prices of commodities, raw
materials and energy, including the ability to offset these increases through pricing actions; (15) the ability to develop effective sales, advertising and marketing programs; (16) the
ability to stay on the leading edge of innovation, maintain a positive reputation on our brands and ensure trademark protection; and (17) the ability to rely on and maintain key
information technology systems and networks (including Company and third-party systems and networks), the security over such systems and networks, and the data contained
therein. For additional information concerning factors that could cause actual results to materially differ from those projected herein, please refer to our most recent 10-K, 10-Q
and 8-K reports.

Regulations FD and G Disclosure

For a full reconciliation, please visit:

www.pg.com/investors

33