Touching & Improving Lives

Transcription

1 Touching & Improving Lives Media Kit FY a

2 What's Inside P&G at a Glance 2 Purpose-inspired Growth Strategy 4 Corporate Structure 5 Global Operations 6 P&G Innovation 8 Company Leadership 9 Leadership Brands 14 Sustainability Environmental and Social Causes 15 P&G's History 22 Recognition 23 Media Contacts 24 1

3 At a Glance P&G is a global, publicly traded Fortune 500 company, and the largest consumer packaged goods company in the world. P&G s work is driven by a Purpose of providing branded products and services of superior quality and value to improve the lives of the world s consumers now and for generations to come. P&G s growth strategy, inspired by our Purpose, is to touch and improve more consumers lives in more parts of the world, more completely. HQ: Cincinnati, OH Operations in: About 80 countries Employees: Approximately 127,000 worldwide Sales: $78.9 Billion (2010) Established: 1837 Leadership P&G is led by the Company's Chairman, President & Chief Executive Officer and an 10-member Board. Chairman of the Board, President and CEO: Bob McDonald Board Members: Elected to a one-year term Business Units P&G s business is segmented into two key areas, or Global Business Units: Beauty and Grooming Household Care Brands: 50 Leadership Brands, which are among the world's best known household names and which account for 90% of P&G sales and more than 90% of profits. Leadership Brands include 23 Billion-Dollar Brands (each generating more than $1 billion in annual sales) Four billion times a day, P&G brands touch the lives of people around the world Consistently one of the world s top advertisers, investing more than $8 billion in 2010 P&G has one of the largest and strongest portfolios of trusted brands, including Pampers, Tide, Ariel, Always, Pantene, Bounty, Pringles, Charmin, Downy, Iams, Crest, and Olay 2

4 At a Glance Reportable Segment 2010 Net Sales by Reportable Segment (1) (in billions) Categories Billion-Dollar Brands Beauty $19.5 Cosmetics, Female Antiperspirant and Deodorant, Female Personal Cleansing, Female Shave Care, Hair Care, Hair Color, Hair Styling, Pharmacy Channel, Prestige Products, Salon Professional, Skin Care Grooming $7.6 Beauty Electronics, Home Small Appliances, Male Blades and Razors, Male Personal Care Health Care $11.5 Feminine Care, Gastrointestinal, Incontinence, Rapid Diagnostics, Respiratory, Toothbrush, Toothpaste, Water Filtration, Other Oral Care Head & Shoulders, Olay, Pantene, Wella Braun, Fusion, Gillette, Mach3 Always, Crest, Oral-B Snacks and Pet Care $3.1 Pet Care, Snacks Iams, Pringles Fabric Care and Home Care Baby Care and Family Care $23.8 Additives, Air Care, Batteries, Dish Care, Fabric Enhancers, Laundry, Surface Care $14.7 Baby Wipes, Diapers, Paper Towels, Tissues, Toilet Paper Ace, Ariel, Dawn, Downy, Duracell, Gain, Tide Bounty, Charmin, Pampers (1) These results exclude net sales in Corporate. By business segment (% of total business segments) By geographic region By market maturity 30% 48% 24% 14% 4% 10% Beauty Grooming Health Care Snacks and Pet Care Fabric Care and Home Care Baby Care and Family Care 15% 9% 13% 21% 42% North America Western Europe Central & Eastern Europe, Middle East & Africa Latin America Asia 34% 66% Developed Developing These results exclude net sales in Corporate. 3

5 Purpose-Inspired Growth Strategy P&G serves more than four billion people in the world today. And P&G people work to make sure the Company's brands live up to their promise to make everyday life just a little bit better, now and for generations to come. MORE CONSUMERS, with innovative products that expand our category portfolios vertically up and down value tiers delivering the right combination of performance and value to every consumer Learn More Learn More more consumers more parts of the world more completely P&G's single, unifying growth strategy is rooted in our enduring Purpose: We will grow by touching and improving more consumers' lives in more parts of the world...more completely. This strategy is working. We're carrying it out across all of our businesses, and around the world. It guides our decisions, our innovations, our investments and our everyday actions. IN MORE PARTS OF THE WORLD, by innovating and expanding our business into new geographies where we didn't previously compete Learn More Learn More MORE COMPLETELY, by innovating to enhance the performance of existing products, by creating or entering adjacent categories, and by driving regimen use that broadens our product portfolios and improves consumers' experiences with our brands Learn More Learn More 4

6 Corporate Structure We have made P&G's organization structure an important part of our capability to grow. It combines the scale benefits of a global company and the local focus to win with consumers and retail customers in each country where P&G products are sold. P&G's structure has removed many of the overlaps and inefficiencies that exist in many large companies. Global Business Units (GBUs) Our two GBUs are Beauty & Grooming and Household Care. The primary responsibility of the GBUs is to develop the overall strategy for our brands. They identify common consumer needs, develop new product innovations and upgrades, and build our brands through effective commercial innovations and marketing plans. Market Development Organization (MDO) The MDO is charged with knowing consumers and retailers in each market where P&G competes and integrating the innovations flowing from the GBUs into business plans that work in each country. The MDO includes dedicated retail customer, trade channel, and country-specific teams. It is organized along five geographic units: North America, Western Europe, Central & Eastern Europe/Middle East/Africa (CEEMEA), Latin America, and Asia. Global Business Services (GBS) GBS provides technology, processes and standard data tools to enable the GBUs and the MDO to better understand the business and better serve consumers and customers. The GBS organization is responsible for providing world-class solutions at a low cost and with minimal capital investment. Beauty & Grooming Market Development Organizations Household Care Global Business Services Shared Services Corporate Functions Governance, Capability, Functional Innovation Using this structure, we continue to see faster global expansion of new innovations, better in-market execution, and increased savings from purchasing scale and outsourcing partnerships. 5

7 Global Operations P&G's well-known, trusted brands touch and improve the lives of consumers in more than 180 countries, with operations in about 80 countries. P&G's global operations are led by Vice Chairman Werner Geissler, and comprised of our Market Development Organization (MDO), responsible for developing go-to-market plans at the local level. The MDO includes dedicated retail customer, trade channel and country-specific teams. It is organized into five geographic units: North America, Western Europe, Central & Eastern Europe.Middle East. Africa (CEEMEA), Latin America, and Asia, which is comprised of Japan, Greater China and ASEAN/Australia/India/Korea (AAIK).* This structure delivers the benefits of scale while leveraging local focus, letting the company respond with agility to local consumer needs and dynamic market demands. By integrating across our businesses and markets consistently operating as one Company we can better serve more consumers in more parts of the world, more completely. 15% 9% 13% 21% 42% 15% 9% 13% 42% 21% Asia One of the fastest growing economies in the world, Asia is home to more than three billion consumers, more than half the world's population. Asia's population is economically and demographically diverse, from lower income to affluent, young to old. With more young people than any other continent, Asia is also home to more than half the world's population of adults aged 50+. Regional Headquarters: Singapore Group President: Deborah A. Henretta Region Includes: China, Japan, Hong Kong, India, Australia, New Zealand, Indonesia, Philippines, Singapore, Taiwan, Vietnam, Thailand, Sri Lanka, Malaysia, Bangladesh CEEMEA CEEMEA is P&G's largest geographic region, stretching from the western edges of Poland to the far eastern regions of Russia and including all of the Middle East, Pakistan, and Africa. It is also a highly diverse region, with both developed and developing markets, a variety of consumer profiles, and more than 150 different languages. Regional Headquarters: Geneva, Switzerland Group President: Laurent Philippe Region Includes: The Balkans, Central Europe, Eastern Europe, Middle East, Africa, Turkey/Caucasia, and the Central Asian Republics * P&G defines developing markets as the aggregate of CEEMEA, Latin America, AAIK and Greater China, and developed markets as the aggregate of North America, Western Europe, and Japan. 6

8 Global Operations 15% 9% 13% 42% 15% 9% 13% 42% 21% 21% Latin America Procter and Gamble's presence in Latin America dates back more than 60 years with the opening of the Mexican subsidiary in Regional Headquarters: Panama City, Panama Group President: Jorge A. Uribe Region Includes: Central America, South America, Mexico, and nearly all of the Caribbean region Western Europe P&G's Western Europe business dates back to 1930 when the Company opened a subsidiary in the U.K. Regional Headquarters: Geneva, Switzerland Group President: Giovanni Ciserani Region Includes: P&G has a presence in every country in Western Europe. 9% 13% 15% 42% 21% North America North America is P&G's largest region on a net sales basis. The average American consumer spends $110 per year on P&G products. Nearly every family in the U.S. has at least one P&G product in their home. Regional Headquarters: Cincinnati, Ohio, U.S.A. Group President: Melanie A. Healey Region Includes: Canada, Puerto Rico, and the United States 7

9 P&G Innovation Innovation is and has always been the heart of P&G's success. It is the primary way our Company and our brands touch and improve lives and, as a result, grow our business. Today we have a strong global, multiyear innovation program that is driving profitable share growth around the world. Visit for the most up-to-date highlights of innovations coming from P&G across virtually every product category. 8

10 Company Leadership Bob McDonald Chairman of the Board, President and Chief Executive Officer Jon Moeller Chief Financial Officer Ed Shirley Vice Chair Global Beauty and Grooming Dimitri Panayotopoulos Vice Chair Global Household Care Werner Geissler Vice Chair Global Operations 9

11 Bob McDonald Chairman of the Board President and Chief Executive Officer, P&G Bob has lived and worked on nearly every continent and has experience in virtually every part of P&G's business. He is the most broadly and globally experienced CEO in P&G history. Residence: Cincinnati, Ohio, USA Date of Birth: June 20, 1953 Place: Gary, Indiana, USA Education: U.S. Military Academy B.S., 1975 University of Utah M.B.A., 1978 Business Affiliations Prior to Joining P&G: U.S. Army Captain, Date Joined P&G: June 4, 1980 Bob McDonald is Chairman of the Board, President and Chief Executive Officer of Procter & Gamble. With more than 30 years of brandbuilding, market development, global business unit and global operations leadership experience across the Company and throughout the world, he is the most broadly experienced CEO in P&G history. Bob was born in Gary, Indiana, and raised in the Chicago area. In 1975, he graduated from West Point in the top 2% of his class with a Bachelor of Science degree in Engineering. After graduation, he served in the U.S. Army as Captain, Infantry, Airborne Ranger, 82nd Airborne Division. He joined Procter & Gamble in 1980, where he began his career working on prominent brands such as Dawn, Cascade and Tide. He spent most of the 1990s leading P&G s businesses in the Philippines, Japan and Korea, including responsibility for P&G s Hair Care business in Asia and the P&G Beauty business in Japan. Bob led Global Fabric & Home Care, the Company s largest and most mature business, which delivered strong sales growth and record-setting profits during his tenure. As Vice Chair, Global Operations, he led P&G s market development organizations and was a member of the team that created the Company s winning Low-Cost Business Model, which has helped accelerate the growth of P&G businesses in emerging markets. As Chief Operating Officer, Bob worked closely with P&G leaders to champion the integration of P&G s global brand-building capability. He also played a pivotal role in the integration of Gillette and led P&G s game-changing go-to-market reinvention. Since becoming CEO in July 2009, Bob has led P&G to steadily improving growth with a strategy inspired by the Company s Purpose to touch and improve lives, now and for generations to come. His strategy is focused on leveraging P&G innovation to improve more consumers lives in more parts of the world, more completely. For Bob McDonald's full bio, click here 10

12 Jon Moeller Chief Financial Officer Jon R. Moeller is Chief Financial Officer of Procter & Gamble. Based in Cincinnati, Ohio, he has been an integral part of P&G's leadership team for nearly a decade and has a 20-year track record of strong business and financial results. Residence: Covington, Kentucky, USA Date of Birth: June 11, 1964 Place: Chicago, Illinois, USA Education: Cornell University B.S. Biology, 1986 M.B.A., 1988 Date Joined P&G: September 1, 1988 Jon has diverse experience across virtually all P&G businesses and finance disciplines. He has worked in nearly every part of P&G's business - from Laundry and Cleaning in China to Beauty and Health globally. He has led major merger and acquisition operations, including the large and complex Wella acquisition and the divestiture of Folgers. In his previous role as Vice President & Treasurer, to which he was appointed in 2007, Jon led P&G Investor Relations and established the capital structure, cash management and AA-credit rating that put P&G in a strong financial position for the near- and long-term. Jon joined P&G in 1988 and has worked in various financial roles throughout the Company, including Vice President-Finance, P&G Beauty & Health, several assignments in Finance for Global Beauty, Corporate Forecasting & Analysis, and in China where he was Finance Director, Laundry and Personal Cleansing as well as Asia Food & Beverage. He has also worked in an array of posts within Procter & Gamble s Food & Beverage businesses. Jon received his MBA in Finance and a BS in Biology from Cornell University, where he has also served as a visiting lecturer at the Johnson Graduate School of Management. He serves on a number of local advisory boards, including the Executive Board of the Visiting Nurses Association, and the City of Covington Ethics Board. He is a member of the Cincinnati Business Advisory Council of the Federal Reserve Bank of Cleveland, and a member of The Conference Board s Council of Financial Executives. For Jon Moeller's full bio, click here 11

13 Ed Shirley Dimitri Panayotopoulos Vice Chair Global Beauty and Grooming Vice Chair Global Household Care Ed Shirley is Vice Chair of the Global Beauty and Grooming Business of P&G. Ed has nearly 32 years of experience in nearly every facet of business throughout the world, making him one of the most well-rounded executives at P&G. During his 32-year career, Ed Shirley has gained deep experience in nearly every facet of business, including Finance and Accounting, Sales, Brand-Building, Product Supply and General Management, across a variety of roles throughout the world, making him one of the most well-rounded executives at P&G. He joined The Gillette Company in 1978, beginning his career in Boston in what was then known as the Safety Razor Division and worked throughout the business. He spent the 1990s transforming Gillette s North American Oral-B business, Braun s European and Global Selling Organizations, Gillette s European Operations, and led the Gillette, Duracell, Braun, Oral-B and Stationery Products businesses. In 2006, Ed assumed responsibility for P&G s largest region, North America, delivering share growth while driving the implementation of P&G s new go-to-market capabilities behind a primary focus on excellent in-store execution. As Vice Chair of Global Beauty & Grooming, Ed is leading an organizational and cultural breakthrough designed to better serve women and men throughout the world through holistic beauty and grooming solutions that better meet the needs of more of the world s women and men. For Ed Shirley's full bio, click here Dimitri, a global business leader with vast international experience, is Vice Chairman of Procter & Gamble Global Household Care. In his current role, Dimitri is responsible for 35,000 people driving about $38 billion in sales and about $5 billion in profit. He manages roughly half the global sales of Procter & Gamble, overseeing wellknown household brands such as Tide, Charmin, Gain, Bounty, Ariel, Downy/Lenor, Dawn, Duracell and Pampers. As a career P&G executive, Dimitri has built a reputation as an in-touch leader who works closely with his team and customers to grow businesses globally using a deep belief in the power of collaboration paired with a deep passion for winning. Born in Dar-Es-Salaam, Tanzania, Dimitri began his career with P&G in 1977 as a Salesman in the United Kingdom, then became Sales Manager in Switzerland followed by various advertising and brand management positions in Germany. It was his first country assignments in Egypt and China where his talent of building and expanding sustained unified brands, businesses and organizations in third-world environments was honed and perfected. His eight-year tenure in China grew the business from disjointed franchises and joint ventures to a wholly owned business. In 2001, Dimitri left China to establish the current global business unit and market development organization known as CEEMEA or Central Eastern Europe, Middle East and Africa, which consists of over 110 different countries. As Group President of Global Fabric Care in 2004, Dimitri increased the pace of innovation and scale using processes such as RAMP and established Fabric Care as The Heartbeat of P&G while leading the growth of Downy, Lenor and Gain to become billion-dollar brands. In his current role as Vice Chair Global Household Care, he drove Global Household Care to become the fastest-growing business within P&G by leveraging business strengths globally, driving scale and fasttracking innovation across all categories and markets. He is committed to unifying people with hands-on passion and purpose toward the bigger goal, all the while remembering his commitment to the unique individual, whether he or she is a Consumer, Customer or Employee. For Dimitri Panayotopoulos' full bio, click here 12

14 Werner Geissler Vice Chair Global Operations Werner is Vice Chair, Global Operations, overseeing business operations around the world including P&G offices in about 80 countries, and a network of 500+ distributors to serve over 4 million retail outlets every month. A native of Germany, Werner spent 2 years with the German Air Force before graduating with an MBA from the University of Cologne. He joined Procter & Gamble in 1979 as Brand Assistant in the Marketing department. During his 30 years with the Company, Werner has lived and worked in Frankfurt, Germany; Rotterdam, Holland; Santa Monica, USA; Istanbul, Turkey; Kobe, Japan; Geneva, Switzerland; and in Cincinnati, USA since mid He has held positions of increasing responsibility in Brand and General Management and worked in several of our categories including Household Care, Cosmetics and Fragrances, Baby Care, Tissue Towels, and Hair Care. He has led operations in Germany; Turkey/Caucasian and Central Asian Republics; Northeast Asia/ Japan; and Central & Eastern Europe, Middle East and Africa. He has helped integrate several acquired businesses during his career. He regularly engages in the communities in which he has lived and holds an honorary doctorate from the International University in Geneva, as well as an honorary ambassadorship from Hyogo Prefecture and Kobe City, Japan for which he developed a marketing strategy to attract more foreign direct investments. He serves on the Executive Board of Lausanne-based IMD, the leading global institution for senior management education. For Werner Geissler's full bio, click here 13

15 Leadership Brands 50 leadership brands These brands are some of the world s most well-known household names including innovative new products that comprised five of the top ten most successful new introductions in 2009.* 173 years P&G brands have helped to make everyday life a little better for 173 years. 90 % of sales These 50 leadership brands account for 90% of P&G sales. 23 brands Number of P&G brands that each generate more than one billion dollars in annual sales. 90 % of profits These 50 leadership brands account for more than 90% of P&G profits. 125 innovations Over the past 15 years, 125 P&G innovations have earned a spot on SymphonyIRI Group s list of each year s 25 most successful new products more than our six largest competitors combined.* P&G's 23 billion-dollar brands, which each generate more than $1 billion in annual sales. * Source: SymphonyIRI Group New Product Pacesetters report (non-food brands), March 22, 2010 (measured as total year-one dollar sales across food, drug, and mass channels, excluding Walmart). 14

16 Sustainability Environmental and Social Causes For P&G, sustainability is a responsibility and an opportunity to make improvements that matter, and to make life better for the greatest number of lives. Our commitment begins with our Purpose, Values and Principles, in which sustainability is the driving force. Our Purpose is to improve lives, now and for generations to come. P&G does this through the products and services we offer, making these products in an environmentally responsible manner, and through our social responsibility programs that improve lives for those in need around the world. We define sustainability broadly at P&G to include both environmental sustainability and social responsibility. Our Programs Social Responsibility Social Responsibility Our Enablers Employees Stakeholders 15

17 Environmental Sustainability Sustainability Environmental and Social Causes P&G is the largest consumer packaged goods company in the world today. This very fact, coupled with our Purpose-inspired Growth Strategy improving the lives of more consumers, in more parts of the world, more completely requires us to continue to grow responsibly. And it also requires us to accelerate our commitment to helping solve some of the world's sustainability challenges. Last September, P&G announced a new long-term environmental sustainability vision. We developed this vision over the course of a year, partnering with external experts and soliciting input from hundreds of P&G employees at all levels and functions. As part of P&G's strategy to grow responsibly, we will work towards a longterm environmental sustainability vision that includes: Long-term Operational End-Points Powering our plants with 100% renewable energy. Renewable energy sources include those based on sunlight, wind, biomass, tides, and geothermal heat rather than fossil fuels. Our vision is that all energy powering our plants will be sourced from on-site renewable sources, or power from the grid that is generated by renewable sources. Emitting no fossil-based CO 2 or toxic emissions. P&G is not an energy intensive company, so our CO 2 emissions today are relatively small. However, by moving to 100% renewable energy to power our plants, we will drive this number even lower by eliminating petroleum-based CO 2. In the future end state, what little CO 2 emissions we will have can be expected to come only from renewable biomass. In addition, we envision an end state where all other reportable emissions are driven to zero. Delivering effluent water quality that is as good as or better than influent water quality with no contribution to water scarcity. P&G continually improves our operations to preserve the quality of water in the communities in which we operate. We will also ensure sustainable water management by both our operations and consumer use of our products. This commitment includes water reduction goals, use of new technologies, product innovation using a Life Cycle Assessment, and siting decisions using a watershed approach, which looks holistically at water supply where a plant could be built. Having zero manufacturing waste go to landfills. Our manufacturing waste can be disposed of in four ways: recycling, repurposing, waste-to-energy, and landfills. The first three give value to the waste, whereas waste that ends up in landfills has no value. Our vision is to have all manufacturing waste end up in a valued waste stream (e.g., recycling, repurposing, waste-to-energy without toxic emissions). Long-term Product End-Points Using 100% renewable or recycled materials for all products and packaging. A renewable resource is simply defined as one that is produced by natural processes at a rate comparable to its rate of consumption. P&G already uses significant amounts of renewable materials in our products and packaging. However, we still use many nonrenewable materials, such as those derived from petroleum and other fossil fuels. Our vision is to use materials that are renewably sourced. Materials will come from traditional sources such as biomass and agricultural products, and research is also ongoing to understand how raw materials can be derived from biological processes such as fermentation. In addition to being renewably sourced, these materials will also be sustainable, meaning their production will not result in the destruction of critical ecosystems, loss of habitat for endangered species, or other detrimental impacts on the environment or human communities. Having zero consumer waste go to landfills. In the developed world, waste can be disposed of in four ways: recycling, composting, waste-to-energy, and landfills. The first three give value to the waste, whereas waste that ends up in landfills has no value. In the developing world, waste is primarily disposed in uncontrolled dumps, where it also has no value. Our vision is to have all waste end up in a valued waste stream (e.g., recycling, composting, waste-to-energy without toxic emissions). Designing products to delight consumers while maximizing the conservation of resources. Life Cycle Assessment (LCA) has shown that for some major P&G products, the largest environmental impact occurs when consumers use our products. As the world s largest consumer packaged goods company, this represents a significant and unique opportunity for P&G to have a meaningful impact in sustainability. We will continue to enable consumers to reduce their environmental footprint by designing products that meet their needs relative to value and performance and, in addition, allow them to conserve resources. Our cold water laundry detergents (Tide Coldwater, Ariel) are examples. In those instances where consumer habit changes are required to deliver the environmental benefit, consumer education will be part of the solution. 16

18 Social Responsibility Sustainability Environmental and Social Causes For more than 170 years, P&G brands and people have touched and improved consumers' lives. This commitment extends to our social investments. Our people and our brands are our greatest assets, and together, they are a tremendous force that can make an impact that matters. Live, Learn and Thrive is P&G's corporate cause, focusing on helping children in need around the world. The programs enable children to get off to a healthy start, receive acces to education and build skills for life. Since 2007, P&G has improved the lives of over 210 million children. In addition to helping improve lives in the communities where we operate, we are reaching out to people and communities across Asia, Latin America and Africa where we do not have operations or sell P&G brands. These remote parts of the world with profound social needs have often become opportunities for us to extend our first moment of touch through our social investments. Social Responsibility for Generations to Come Saving a Life Every Hour P&G is making a new commitment to save a life every hour in the developing world by providing more than 2 billion liters of clean drinking water each year by the year 2020*. This bold commitment will challenge us to accomplish each year what we accomplished in total our first six years of Children s Safe Drinking Water. We are confident that we can accomplish this through a number of opportunities. Several P&G brands are launching their own programs to raise awareness about the global water crisis. Programs such as Cover Girl s Make-Up for Clean Water, SKII s Clear for Life and Pantene s Healthy Hair for Healthy Water will continue to drive the needed awareness of the world clean water crisis. A new plant under construction in Singapore, set for completion in 2012, will have the capacity to produce the PUR Packets needed to fulfill this new annual commitment. Plans are in place to scale up our number of partners in more countries to help us reach more people who need clean water in some of the most remote parts of the world. Disaster Relief at P&G P&G's commitment to help rebuild lives after widespread disasters is a natural expression of our Purpose to improve lives. Through our people, our products, and our partners, we rely on our strengths and our disciplined process to ensure that all of our efforts both immediate and long-term are making a meaningful difference. Our global disaster response approach allows us to respond quickly and effectively. Our first concern is for the safety and welfare of our employees. Within hours, we are also in contact with our humanitarian partners to understand the scope and impact of the crisis, and how best to respond. The most immediate way we often help is to provide PŪR Purifier of Water packets. Natural disasters can leave places that typically have safe drinking water suddenly without it. These packets transform dirty, unsafe water into clean drinking water in 30 minutes, so they can be very useful in times of crisis. We have worked closely with several of our partners to strategically place depots of PŪR packets around the world, making them more readily available when needed. In addition to cash donations, we often provide products. From our soap and personal hygiene products to our laundry, diaper, and cleaning products, our brands can help restore a sense of normalcy to the disrupted lives of those caught in the aftermath of a disaster. *Details on how saving a life totals are calculated are provided in the full 2010 Sustainability Report found at 17

19 Employee Engagement Sustainability Environmental and Social Causes Empowering Employees to Lead the Way P&G employees are critical enablers of the Company s sustainability efforts. We have programs around the world designed to embed a sustainability mindset into everyday work, and we foster and encourage passionate employees to create Green Teams and integrate sustainability into their work and their workplace. 120 global sites participating in Earth Day Passionate Employees A Global Celebration of Earth Day On Earth Day every year, employees across the world participate in sustainability activities. The 2010 theme was Put Green To Work. Messages highlighted how employees could integrate sustainability into P&G products and operations. Events included sustainability fairs, bike-to-work events, community service days, print strikes, external speakers and more. Additionally, employees were asked to make a personal pledge of how they would put green to work in the upcoming year. Russ Speiller teaches colleagues about sustainable product innovation. P&G Home Care employee Pat Soll waters the raised-bed vegetable garden at Fabric and Home Care Innovation Center in Cincinnati, Ohio. 18

20 Stakeholder Engagement Sustainability Environmental and Social Causes While we are proud of the progress we have made, we know that we could not have come this far without the help of many external partners. We recognize that continued partnerships will be key to future success. Working with WWF to Renew Our Renewables WWF and P&G recently announced a Global Partnership aimed at encouraging sustainable production and consumption. This partnership brings together the world s largest global environmental NGO and the world s largest consumer goods company, both committed to improving sustainability. The three-year partnership will focus initially on sustainable production, including energy and water conservation in P&G plants, and on sustainable sourcing of materials for P&G products, including renewable forest products and palm oil. As we move to using more renewable materials, particularly materials such as pulp and palm oil, we need to ensure that production does not lead to loss of natural ecosystems, with associated loss of biodiversity. Our sustainable forestry policy already requires us to source pulp only from certified sustainable operations. P&G s Family Care business has been a member of WWF s Global Forest & Trade Network North America for over a year, and we plan to extend and broaden our joint work in this area. In addition, we are working to ensure that we source palm oil and derivatives only from confirmed responsible and sustainable sources by This partnership is helping us accelerate progress in innovation as well, as evidenced by the plan to introduce sugarcane-derived plastic into some of our Beauty packaging. " P&G's commitment to use renewable sugarcane-derived plastic in its leading global beauty product packaging is an important step forward in its efforts to improve the environmental profile of its products. We applaud this announcement as part of their leadership in finding innovative solutions to the sustainability challenges facing the world today." Jason Clay, Senior Vice-President of Market Transformation, WWF-US A Global Approach to Sustainable Packaging The Global Packaging Project (GPP), spearheaded by the newly gounded Consumer Goods Forum (CGF), brings together global manufacturers and retailers to improve collaboration across the consumer goods industry. By developing a common language and sustainability metrics, the project will improve communication about the sustainability attributes of packaging, both between companies and with consumers. P&G has been actively involved in this project, testing its metrics through pilots with our customers, including Kroger. The project report, entitled A Global Language for Packaging and Sustainability, was launched in June 2010 at a Summit in London. 19

21 Being Accountable As this vision will take decades to achieve, we have also announced new 10-year goals, which we will reach by 2020, that will set us on an incremental path toward our long-term vision. These goals will help us focus on efforts where we can make the most meaningful difference in environmental sustainability. the 2020 sustainability goals are in addition to our existing 2012 goals Environmental Sustainability Goals P&G Report Card 2012 Sustainability Goals These goals, originally set in 2007, were increased in March The goal for P&G Children s Safe Drinking Water (CSDW) program was again increased in September Strategy 1: Products GOAL Develop and market at least $50 billion in cumulative sales of sustainable innovation products, which are products that have an improved environmental profile. (1) PROGRESS (in billions of U.S. dollars) Cumulative Sales since July 2007 Cumulative sales of sustainable innovation products $ 26.5 Products Replace Petroleum-Based Materials with Sustainably Sourced Renewable Materials Cold Water Washing Packaging Reduction Consumer Solid Waste 25%* 70% of total washing machine loads Scorecard 20% (per consumer use)* Pilot studies in both developed and developing markets to understand how to eliminate landfilled/dumped consumer solid waste Strategy 2: Operations GOAL Deliver an additional 20% reduction (per unit production) in CO 2 emissions, energy consumption, water consumption and disposed waste from P&G plants, leading to a total reduction over the decade of at least 50%. PROGRESS (percent reduction per unit production) Since July 2007 Strategy 3: Social Responsibility Since July 2002 Energy Usage -14% -50% CO 2 Emissions-11% -53% Waste Disposal-50% -55% Water Usage-16%-55% Operations Renewable Energy Powering Our Plants Manufacturing Waste Truck Transportation Reduction *vs baseline 30% <0.5% (disposed) 20% (km/unit of volume)* GOAL Enable 300 million children to Live, Learn and Thrive. (2) Prevent 160 million days of disease and save 20,000 lives by delivering 4 billion liters of clean water in our P&G Children s Safe Drinking Water program. (3) PROGRESS LIVE, LEARN AND THRIVE Since July 2007 Number of Children Reached210 million CHILDREN S SAFE DRINKING WATER Liters of Clean Water Delivered1.5 billion Days of Disease Prevented 60 million Lives Saved7,450 (1) Sustainable Innovation Products are included if they have launched in market since July 1, 2007, and have a >10% reduction in one or more of the following indicators without negatively impacting the overall sustainability profile of the product: A. Energy, B. Water, C. Transportation, D. Amount of material used in packaging or products, E. Substitution of nonrenewable energy or materials with renewable sources. (2) Live, Learn and Thrive (LLT) is P&G s global cause that focuses our social investments on efforts that improve the lives of children in need ages (3) Within Live, Learn and Thrive, our signature program is Children s Safe Drinking Water. Methodology for calculating diarrheal days and mortality was developed with Population Services International and Aquaya Institute. Details are provided in the 2010 Sustainability Report found at 20

22 Sustainable Innovation Products Products that have a significantly reduced (>10%) environmental footprint versus previous or alternative products without negatively impacting the overall sustainability profile of the product. PRODUCT REGION INNOVATION Pampers with Dry Max North America, Western Europe Reduction in material usage Duracell Global Reduction in material usage Nice 'n Easy Perfect 10 North America, Western Europe Packaging reduction Cascade ActionPacs North America Packaging reduction Crest Pro-Health Rinse North America Packaging reduction Oral-B Professional Care (power toothbrush) Alldays North America, Western Europe Europe, Middle East, and Africa Packaging reduction Packaging reduction Scope Outlast North America Dose compaction, packaging reduction To learn more about Sustainability at P&G or download our 2010 Sustainability Report, please visit 21

23 P&G History What began as a small family-run candle and soap business, grew through innovation, creative marketing and partnerships to become the largest consumer goods company in the world. P&G was founded in 1837 by two men who met by chance. William Procter, emigrating from England, established himself as a candle maker in Cincinnati, which was a busy center of commerce and industry in the early nineteenth century. And James Gamble, arriving from Ireland, apprenticed himself to a soap maker. The two might never have met had they not married sisters Olivia and Elizabeth Norris, whose father convinced his new sons-in-law to become business partners. As a result, a bold new enterprise was born: Procter & Gamble. 173 years old ~ 127,000 Employees $78.9 Billion in Sales (FY 2010) Operations in ~ 80 Countries William Procter was born in 1801 in England. As a boy, he worked as general store apprentice, learning to "dip candles" a skill that would later lead to both fame and fortune. His first entrepreneurial venture, however, met with disaster. The day after opening, his dry goods shop in London was robbed, leaving Procter $8,000 in debt a huge sum in Determined to rebuild, he and his wife decided to immigrate to the United States. While traveling down the Ohio River, Mrs. Procter became ill and died a few months after their arrival in Cincinnati. Procter first worked in a bank. He then decided to use his past experience as a candle maker to earn extra income and help pay off his debt. He took advantage of the fat and oil by-products from Cincinnati's large meatpacking industry. Procter began as a oneperson operation manufacturing, selling, and delivering candles to his customers in the area. During his time, he also met and proposed to Olivia Norris, the daughter of a prominent candle maker in town, Alexander Norris. Meanwhile, James Gamble was born in 1803 in Ireland. He immigrated with his family to America in 1819 as part of a mass exodus from Northern Ireland. They were headed for Illinois, but during the trip, James Gamble, then 16, became ill; his parents took him ashore in Cincinnati. By the time James recovered, the family had decided to stay. At 18, James began an apprenticeship with a local soap maker, then years later, opened his own soap and candle shop with a friend. Before long, Gamble met and married Elizabeth Ann Norris, the second daughter of Alexander Norris. The Creation of the Procter & Gamble Company Father-in-law Alexander Norris noted that his new sons were competing for the same raw materials. He suggested a joint venture. After several years, the sons agreed and on October 31, 1837, they signed the partnership agreement that ounded the Procter & Gamble Company. Their total assets were $7, The business began during nationwide panic and depression. But the struggling young firm survived. Cincinnati proved a sound business base because, as a meatpacking center, it offered plenty of fat and oil for soap and candle making. The Procters' eldest son, William A. Procter, was the first P&G President in 1890 Son Harley T. was the company's first Advertising and Sales Manager. He named Ivory Soap. The Gambles' eldest son, James N. Gamble, invented Ivory Soap and founded the first laboratory in P&G history. 22

24 Recognition Innovation Talent Development #1 Most Innovative Recognized by SymphonyIRI Group as the most innovative manufacturer in the consumer packaged goods industry for the last decade with its "Outstanding Achievement in Innovation" award. World's Most Innovative Companies Awarded a #12 ranking on Bloomberg Businessweek's list of "World's Most Innovative Companies." Most Admired Awarded a consistent #1 ranking within our industry on Fortune's Most Admired list for 25 or 26 total years and for 13 years in a row, and a #6 ranking on Fortune's "Global Most Admired Companies." A Top Company for Leaders Recognized with the #2 ranking on Fortune's "Top Companies for Leaders" survey and a ranking among Bloomberg Businessweek/ Hay Group's Twenty Best Companies for Leadership. Committed to Diversity P&G's commitment to creating a diverse workplace has been recognized by the National Association for Female Executives (top 50 Companies for Executive Women), Working Mother magazine (Top 20 Best Companies for Multicultural Women), Black Enterprise magazine (40 Best Companies for Diversity), and Diversity Inc. (#18 ranking on the Top 50 Companies for Diversity and #6 ranking on the Top 10 Companies for Global Diversity). Top Employer for Working Mothers Rated among the 100 Best Companies for Working Mothers in Working Mother magazine's annual survey. Sustainability Dow Jones Sustainability Index P&G has received top rankings on the Dow Jones Sustainability Index from 2000 to Corporate Citizen P&G was awarded a #15 ranking on Corporate Responsibility Magazine's 100 Best Corporate Citizens List. Innovating Sustainability P&G recognized as a "Gold Winner" in the Innovation and Sustainability category and a "Silver Winner" in the Innovation and Cost/Waste Reduction category in the 2010 DuPont Awards for Packaging Innovation. 23

25 Media Contacts Paul Fox Global Operations ER & Corporate Media Relationships (office) (after hours) Jennifer Chelune Corporate Financial Communications (office) (after hours) Mandy Wagner Corporate Media Relationships (office) (after hours) Mary Ralles Corporate Media Relationships (office) (after hours) Jeff LeRoy Corporate Media Relationships (office) (after hours) 24

26 2011 Procter & Gamble