Procter and Gamble

Procter & Gamble Co. (P&G, NYSE: PG) is a  Fortune 500 American multinational

corporation headquartered in Downtown Cincinnati, Ohio that manufactures a wide range
of consumer goods. It is 5th in Fortune's Most Admired Companies 2011 list. P&G is credited
with many business innovations including brand management and the soap opera.

Companies like P&G are a force in the world. The market capitalization is greater than
the GDP of many countries, and we serve consumers in more than 180 countries. With this
stature comes both responsibility and opportunity. Our responsibility is to be an ethical corporate
citizen—but our opportunity is something far greater, and is embodied in our Purpose.

P&G’s Purpose Statement articulates a common goal that inspires us daily:

Our Purpose works to unify us in a common cause and growth strategy. It is powerful
because it promotes a simple idea to improve the lives of the world’s consumers every day. P&G
grows by touching and improving more consumers’ lives in more parts of the world...more
completely. While this statement defines our commercial opportunity, our culture reflects the
broader opportunity of improving lives through and beyond our branded products and services.

At P&G, we touch lives in small but meaningful ways. Billions of them. Every day.

The simple, inspiring way to think about this opportunity is that P&G brands serve about
4.2 billion of the 6.5 billion people on the planet today. Before P&G can serve the world's
remaining consumers profitably, we can reach them altruistically. We can improve their lives in
ways that enable them to thrive, to increase their quality of living and, over time, to join the
population of consumers we serve with P&G brands. Through our overall Live, Learn &
Thrive™ cause program, initiatives such as Children’s Safe Drinking Water and Pampers 1 Pack
= 1 Vaccine are examples of how we are improving the lives of millions of people every day.

Our shared Purpose attracts and unites an extraordinary group of people, P&Gers, around
the world—the most diverse workforce in P&G history. Together, we represent around 145
nationalities. Our recruiting and development philosophy to “build from within” fosters a strong
culture of trust and shared experiences. Our diversity, our shared culture and our unified Purpose
are the defining elements that enable P&G to touch lives and improve life every day.
P&G’s History

William Procter, a candle maker, and James Gamble, a soap maker, immigrants from
England and Ireland, respectively, who had settled earlier in Cincinnati, who met as they married
sisters, Olivia and Elizabeth Norris, formed the company initially. Alexander Norris, their father-
in law, called a meeting in which he persuaded his new sons-in-law to become business partners.
On October 31, 1837, as a result of the suggestion, Procter & Gamble was born.

In 1858-1859, sales reached $1 million. By this point, approximately 80 employees

worked for Procter & Gamble. During the American Civil War, the company won contracts to
supply the Union Army with soap and candles. In addition to the increased profits experienced
during the war, the military contracts introduced soldiers from all over the country to Procter &
Gamble's products.

In the 1880s, Procter & Gamble began to market a new product, an inexpensive soap that
floats in water. The company called the soap Ivory. William Arnett Procter, William Procter's
grandson, began a profit-sharing program for the company's workforce in 1887. By giving the
workers a stake in the company, he correctly assumed that they would be less likely to go
on strike.

The company began to build factories in other locations in the United States because the
demand for products had outgrown the capacity of the Cincinnati facilities. The company's
leaders began to diversify its products as well and, in 1911, began producing Crisco,
a shortening made of vegetable oils rather than animal fats. As radio became more popular in the
1920s and 1930s, the company sponsored a number of radio programs. As a result, these shows
often became commonly known as "soap operas".

The company moved into other countries, both in terms of manufacturing and product
sales, becoming an international corporation with its 1930 acquisition of the Thomas Hedley Co.,
based in Newcastle upon Tyne, England. Procter & Gamble maintained a strong link to the North
East of England after this acquisition. Numerous new products and brand names were introduced
over time, and Procter & Gamble began branching out into new areas. The company introduced
"Tide" laundry detergent in 1946 and "Prell" shampoo in 1947. In 1955, Procter & Gamble
began selling the first toothpaste to contain fluoride, known as "Crest". Branching out once again
in 1957, the company purchased Charmin Paper Mills and began manufacturing toilet paper and
other paper products. Once again focusing on laundry, Procter & Gamble began making
"Downy" fabric softener in 1960 and "Bounce" fabric softener sheets in 1972. One of the most
revolutionary products to come out on the market was the company's "Pampers", first test-
marketed in 1961. Prior to this point disposable diapers were not popular, although Johnson &
Johnson had developed a product called "Chux". Babies always wore cloth diapers, which were
leaky and labor intensive to wash. Pampers provided a convenient alternative, albeit at the
environmental cost of more waste requiring landfilling.

Procter & Gamble acquired a number of other companies that diversified its product line
and significantly increased profits. These acquisitions included Folgers Coffee, Norwich Eaton
Pharmaceuticals (the makers of Pepto-Bismol), Richardson-Vicks, Noxell (Noxzema),
Shulton's Old Spice, Max Factor, and the Iams Company, among others. In 1994, the company
made headlines for big losses resulting from leveraged positions in interest rate derivatives, and
subsequently sued Bankers Trust for fraud; this placed their management in the unusual position
of testifying in court that they had entered into transactions that they were not capable of
understanding. In 1996, Procter & Gamble again made headlines when the Food and Drug
Administration approved a new product developed by the company, Olestra. Also known by its
brand name Olean, Olestra is a lower-calorie substitute for fat in cooking potato chips and other
snacks that during its development stages is known to have caused anal leakage and
gastrointestinal difficulties in humans.

Procter & Gamble has dramatically expanded throughout its history, but its headquarters
still remains in Cincinnati.

In January 2005 P&G announced an acquisition of Gillette, forming the largest consumer
goods company and placing Unilever into second place. This added brands such as Gillette
razors, Duracell, Braun, and Oral-B to their stable. The acquisition was approved by
the European Union and the Federal Trade Commission, with conditions to a spinoff of certain
overlapping brands. P&G agreed to sell its SpinBrush battery-operated electric
toothbrush business to Church & Dwight. It also divested Gillette's oral-care toothpaste line,
Rembrandt. The deodorant brands Right Guard, Soft & Dri, and Dry Idea were sold to Dial
Corporation. The companies officially merged on October 1, 2005. Liquid Paper, and Gillette's
stationery division, Paper Mate were sold to Newell Rubbermaid. In 2008, P&G branched into
the record business with its sponsorship of Tag Records, as an endorsement for TAG Body
Spray. P&G's dominance in many categories of consumer products makes its brand
management decisions worthy of study. For example, P&G's corporate strategists must account
for the likelihood of one of their products cannibalizing the sales of another.

On August 24, 2009, the Irish-based pharmaceutical company Warner

Chilcott announced they had bought P&G's prescription-drug business for $3.1 billion.
Heritage
1887
P&G institutes a pioneering profit-sharing program that gives employees an ownership
stake in the Company. This significant innovation helps employees connect their vital roles with
the Company’s success.

1924
P&G becomes the first company to conduct deliberate, data-based market research with
consumers. This forward-thinking approach enables us to improve consumer understanding,
anticipate consumer needs and respond with products that improve their everyday life.

1941
P&G becomes one of the first companies to formally respond to consumer
correspondence by establishing the Consumer Relations department. The addition of toll-free
phone numbers in 1973 and e-mail in the 1980s further enhance consumers’ ability to contact us
and keep the consumer at the heart of all we do.

1955

Crest is co developed with Indiana University. This collaboration delivers a product that
is a breakthrough in the use of fluoride to protect against tooth decay, the second-most prevalent
disease at the time.

2002

P&G develops Naturella feminine pads specifically to meet the needs of low-income
women in Latin America. Based on deep consumer understanding, Naturella responds to
consumers’ desire for freshness with chamomile, a unique ingredient never before used in
feminine care products.

2005

High Frequency Stores common in developing markets emerge as our largest customer
channel. Consisting of nearly 20 million stores across the world, HFS represents a particular
opportunity in fast-growing, low-income markets. Through HFS, we connect to consumers with
affordable products and packaging specially designed for their needs.
 THE EXECUTIVE TEAM

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 as a Captain in the U.S. Army for five years,
before joining 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 drive developing markets to more than 30% of Company sales and company-
average margins.

As Chief Operating Officer, Bob worked closely with the leaders of Marketing, R&D, Product
Supply, Customer Business Development and others and championed 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.

Bob’s strategy for P&G’s growth in the decade ahead is linked tightly to the Company’s
Purpose. He has committed to build P&G’s business by touching and improving more
consumers’ lives in more parts of the world…more completely—a strategy that he expects will
help P&G reach five billion consumers in the decade ahead, which is roughly double the number
of consumers P&G was reaching a decade ago

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-2007.

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.

Rob Steele, Vice Chairman of P&G's global Health and Well-

Being business announced he will retire from P&G, effective
September 1, 2011, after 35 years of service. Effective February 1,
2011, Mr. Steele will serve as Vice Chairman – Health Care
Strategy.

Rob joined P&G in 1976 as a sales representative. He took on new

roles and increasing responsibility in sales until 1986, when he
moved into marketing. For the next eight years, Rob took on a
range of assignments and greater responsibility in marketing,
including Brand Manager for Tide.

In 1994, Rob was appointed General Manager for P&G’s Dishwashing Products business for
North America. He became Vice President in 1997. In the late 1990s, Rob launched several
successful new P&G brands, including Swiffer. He also helped design P&G’s North America
Market Development Organization (MDO).

Rob was appointed Vice President of the North America MDO, P&G’s largest regional business,
in 1999. He was named President of this MDO in 2000, Group President for North America in
2004 and Group President for P&G’s Global Household Care business in 2006.

In 2007, Rob was elected Vice Chairman of P&G's Health and Well-Being global business unit.
Consumer health care, which makes up the bulk of this portfolio, has been designated a "key
growth engine" for P&G.
Rob serves on the Boards of the Kellogg Company, the United Negro College Fund and the St.
Joseph’s Home for Handicapped Children

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 well-known 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 prides himself on

his Greek-African heritage and the pioneering spirit of his
grandparents, who left Greece for Tanzania with nothing in order to build their dreams as they
lived and worked off the land. His first languages are Greek and Swahili, but his schooling in the
United Kingdom later expanded his languages to include English, French, and German, which he
uses naturally in his travels around the world. His relentless travel schedule to offices, technical
centers, manufacturing plants, customer stores and consumer homes is further example of his
drive for being in-touch with deep and immediate engagement of all people at all levels both
externally and internally.

Dimitri began his career with P&G in 1977 as a Salesman in the United Kingdom, where his
natural tendency to engage directly and easily with people helped propel him to Sales Manager
in Switzerland and then various advertising and brand management positions in Germany. It was
his first country assignments in Egypt (Country Manager and General Manager) and China
(General Manager, Regional Vice President and President) 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. For his efforts in China, Dimitri
received the Friendship Award in 1999, China’s highest award for foreign experts who have
made outstanding contributions to China’s economic and social programs.

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 fast-tracking 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.

Ed grew up in Salem, Massachusetts, and holds a BS in Business Administration from the

University of Massachusetts. He joined The Gillette Company in 1978 upon graduation,
beginning his career in Boston in what was then known as the Safety Razor Division and quickly
rising through the financial ranks in Gillette’s Papermate and Oral-B Divisions.

Ed spent the early 1990s leading Gillette’s North American Oral-B business, competing against
the world’s biggest consumer goods companies, including P&G. In the late ’90s, he moved to
Germany to run Braun’s European and Global Selling organizations. Following this, Ed led the
redesign and transformation of Gillette’s European Operations, and was responsible for the
Gillette, Duracell, Braun, Oral-B and Stationery Products businesses. Under his leadership,
market shares grew in more than two-thirds of the business by leveraging the scale of the
portfolio and increasing brand-building investments by reducing overhead costs.

On his return to Boston, Ed created Gillette’s first global marketing team, responsible for
developing common brand-building capabilities across all business units. At the same time, he
also led the creation of the Global Value Chain and led Gillette’s turnaround from one of the
poorest-performing customer supply chains in the industry to best-in-class globally in less than
18 months. Both of these efforts established strategic points of difference and competitive
advantage for Gillette.

Prior to the 2005 acquisition, Ed led Gillette’s International Commercial Operations, which
represented more than 60% of the Company’s sales. During Gillette’s integration into P&G, he
partnered with P&G leaders around the globe in keeping the business on the tracks, while
developing integrated staffing plans and “best of both” go-to-market capabilities.

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 in-store execution. He also led the reorganization and simplification of the
work between the regional business units and the North American Market Development
Organization, driving out overhead costs to increase brand- building funds.

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 more of “Her” and “His” needs.

Stassi Anastassov
President Duracell
Charles V. Bergh
Group President – Global Male Grooming, Beauty & Grooming
Steven D. Bishop
Group President – Global Feminine Care
Bruce Brown
Chief Technology Officer
Giovanni Ciserani
Group President – Western Europe and Global Discounter and Pharmaceutical Channels
Linda W. Clement-Holmes
Chief Diversity Officer & Senior Vice President Global Business Services
Virginia C. Drosos
Group President, Global Female Beauty
Philip J. Duncan
Global Design Officer
Mary Lynn Ferguson-McHugh
Group President – Global Family Care
Thomas M. Finn
President – Global Health Care
Robert L. Fregolle, Jr.
Global Customer Business Development Officer
John P. Goodwin
President – Global Braun, Beauty & Grooming
R. Keith Harrison, Jr.
Global Product Supply Officer
Christopher D. Hassall
Global External Relations Officer
Melanie L. Healey
Group President – North America and Global Hyper, Super, Mass Channel
Deborah A. Henretta
Group President – Asia and Global Specialty Channel
Colleen E. Jay
President – Global Female Beauty, Beauty & Grooming
Robert Jongstra
President – Global Professional Salon, Beauty & Grooming
Joan M. Lewis
Global Consumer & Market Knowledge Officer
Teri L. List
Senior Vice President & Treasurer
Patrice Louvet
President – Global Prestige
Deborah P. Majoras
Chief Legal Officer & Secretary
Jorge S. Mesquita
Group President – Global Fabric Care
Shekhar Mitra
Senior Vice President – Corporate R&D, Materials Science & Technology and Global
Beauty & Grooming
Jon R. Moeller
Chief Financial Officer
Moheet Nagrath
Global Human Resources Officer
Filippo Passerini
President – Global Business Services & Chief Information Officer
Laurent L. Philippe
Group President – CEEMEA and Global High Frequency Store Channel
Charles E. Pierce
Group President – Global Oral Care
Marc S. Pritchard
Global Brand Building Officer
Daniel S. Rajczak
Senior Vice President – Global Snacks & Pet Care
Martin Riant
Group President – Global Baby Care
Jeffrey K. Schomburger
President – Global Wal-Mart Team
Valarie Sheppard
Senior Vice President & Comptroller
Shannan Stevenson
President – Greater China
Nancy K. Swanson
Vice President – Corporate
David S. Taylor
Group President – Global Home Care
Jorge A. Uribe
Group President, Latin America and Global Club, Cash & Carry Channel

P&G’s MANAGEMENT STRUCTURE

 Our organizational structure is comprised of three Global Business Units (GBUs), Global
Operations, Global Business Services (GBS) and Corporate Functions (CF).

Global Business Units

In fiscal year 2009, our three GBUs were Beauty, Health and Well-Being 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.

Under U.S. GAAP, the business units comprising the GBUs were aggregated into six
reportable segments: Beauty; Grooming; Health Care; Snacks and Pet Care; Fabric Care and
Home Care; and Baby Care and Family Care. The following provides additional detail on our
GBUs and reportable segments and the key product and brand composition within each.

Reportable % of Net % of Net

GBU Segment Sales* Earnings*Key Products Billion Dollar Brands

* Percent of net sales and net earnings from continuing operations for the year ended June 30, 2009 (excluding results held in Corporate).
BEAUTY Beauty 23% 22% Cosmetics, Deodorants, Hair Care, Personal Head & Shoulders,
Cleansing, Prestige Fragrances, Skin Care Olay, Pantene, Wella

Beauty Grooming 9% 13% Blades and Razors, Electric Hair Removal Braun, Fusion,
Devices, Face and Shave Products, Home Gillette, Mach3
Appliances

HEALTH AND WELL-BEING Health Care 17% 21% Feminine Care, Oral Care, Personal Health Actonel, Always,
Care, Pharmaceuticals Crest, Oral-B

Health and Well-Being Snacks and 4% 2% Pet Food, Snacks Iams, Pringles
Pet Care

HOUSEHOLD CARE Fabric Care 29% 26% Air Care, Batteries, Dish Care, Fabric Care, Ariel, Dawn, Downy,
and Home Surface Care Duracell, Gain, Tide
Care

Household Care Baby Care 18% 16% Baby Wipes, Bath Tissue, Diapers, Bounty, Charmin,
and Family Facial Tissue, Paper Towels Pampers
Care

Beauty

Beauty: We are a global market leader in the beauty category. Most of the beauty markets
in which we compete are highly fragmented with a large number of global and local competitors.
We are the global market leader in hair care with over 20% of the global market share. In skin
care, our primary brand is Olay, which is the top facial skin care retail brand in the world. We are
also one of the global market leaders in prestige fragrances, primarily behind the Gucci, Hugo
Boss and Dolce & Gabbana fragrance brands.
 Grooming: This segment consists of blades and razors, face and shave preparation
products (such as shaving cream), electric hair removal devices and small household appliances.
We hold leadership market share in the manual blades and razors market on a global basis and in
almost all of the geographies in which we compete. Our global manual blades and razors market
share is approximately 70%, primarily behind the Gillette franchise including Mach3, Fusion and
Venus. Our electric hair removal devices and small home appliances are sold under the Braun
brand in a number of markets around the world, where we compete against both global and
regional competitors. Our primary focus in this area is electric hair removal devices, such as
electric razors and epilators, where we hold approximately 30% and 50% of the male and female
markets, respectively.

Health and Well-Being

Health Care: We compete in oral care, feminine care, pharmaceuticals and personal
health. In oral care, there are several global competitors in the market, and we have the number
two market share position with approximately 20% of the global market. We are the global
market leader in the feminine care category with over 35% of the global market share. We have
approximately 40% of the global bisphosphonates market for the treatment of osteoporosis under
the Actonel pharmaceuticals brand. In personal health, we are the market leader in
nonprescription heartburn medications and in respiratory treatments with Prilosec OTC and
Vicks, respectively.
Snacks and Pet Care: In snacks, we compete against both global and local competitors
and have a global market share of approximately 10% in the potato chips market behind our
Pringles brand. In pet care, we compete in several markets around the globe in the premium pet
care segment, with the Iams and Eukanuba brands. The vast majority of our pet care business is
in North America, where we have approximately a 10% share of the market.

Household Care

Fabric Care and Home Care: This segment is comprised of a variety of fabric care
products, including laundry cleaning products and fabric conditioners; home care products,
including dishwashing liquids and detergents, surface cleaners and air fresheners; and batteries.
In fabric care, we generally have the number one or number two share position in the markets in
which we compete and are the global market leader, with over 30% of the global market share.
Our global home care market share is over 15% across the categories in which we compete. In
batteries, we compete primarily behind the Duracell brand and have over 25% of the global
general purpose battery market share.
Baby Care and Family Care: In baby care, we compete primarily in diapers, training
pants and baby wipes, with approximately 35% of the global market share. We are the number
one or number two baby care competitor in most of the key markets in which we compete,
primarily behind Pampers, the Company’s largest brand, with annual net sales of approximately
$8 billion. Our family care business is predominantly a North American business comprised
primarily of the Bounty paper towel and Charmin toilet tissue brands, with U.S. market shares of
over 45% and 25%, respectively.

Fiscal year 2010 changes to Global Business Unit structure

We recently announced a number of changes to our organization structure for the Beauty
GBU, which resulted in changes to the components of its segment structure. Effective July 1,
2009, the Beauty GBU will become the Beauty and Grooming GBU and reportable segments
under the GBU will move to a new consumer-oriented alignment. The reportable segment
formally known as Beauty will become Female Beauty and the Grooming reportable segment
will change to Male Grooming. As a result, Female blades and razors will transition from Male
Grooming to Female Beauty. In addition, certain male-focused brands and businesses, such as
Old Spice and Gillette personal care, will move from Female Beauty to Male Grooming.

These changes will be reflected in our segment reporting beginning in fiscal year 2010, at
which time our historical segment reporting will also be restated to reflect the new structure. The
GBU and segment discussions in the MD&A and accompanying Consolidated Financial
Statements reflect the organizational structure that existed through June 30, 2009.

Global Operations
Global Operations is comprised of our Market Development Organization (MDO), which
is 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 along 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). Throughout MD&A, we reference business results in
developing markets, which we define as the aggregate of CEEMEA, Latin America, AAIK and
Greater China, and developed markets, which are comprised of North America, Western Europe
and Japan.

Global Business Services

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.

Corporate Functions
CF provides the Company-level strategy and portfolio analysis, corporate accounting,
treasury, external relations, governance, human resources and legal, as well as other centralized
functional support.
 Strategic Focus

P&G is focused on strategies that we believe are right for the long-term health of the Company
and will increase returns for our shareholders. The Company’s long-term financial targets are:

 Organic sales growth of 4% to 6%. This is

comprised of:

o – 3% to 4% of market growth, plus

o – 1% to 2% of share growth
 0% to 1% of mix enhancement and
whitespace expansion, plus
 1% of growth acceleration behind
revenue synergies associated with the Gillette acquisition.
 Operating margin expansion of 50 to 75 basis
points.

 Diluted net earnings per share (EPS) growth of

10%.

 Free cash flow productivity of 90% or greater

(defined as the ratio of operating cash flow less capital expenditures to net earnings).

o – Capital spending at or below 4% of net

sales annually.
As a result of the recent global economic downturn, market growth rates have slowed and for
2010 are expected to be below the range that underpins our long-term financial growth targets.
We are continuing to monitor market growth and may reassess our long-term targets in the
future.

In order to achieve these targets, we will focus on three primary areas:

 Grow our leading, global brands and core categories. Our portfolio includes 23 brands
that generate over $1 billion in annual sales and 20 brands that generate approximately $500
million or more in annual sales. Combined, these 43 brands account for 85% or more of our sales
and profits. These brands are platforms for future innovations that will drive sales growth,
expand categories for retail customers and differentiate brands in the minds of consumers. Our
core categories, Baby Care, Blades and Razors, Fabric Care, Family Care, Feminine Care, Home
Care, Oral Care, Prestige Fragrances, Retail Hair Care and Skin Care, have opportunities for
continued growth. We will focus on profitable share growth across all of our businesses by
leveraging our core strengths in innovation and brand-building.
 Build business with underserved and unserved consumers. We are increasing our
presence in developing markets, where 86% of the world’s population lives. We will increase the
amount of sales from these markets by focusing on affordability, accessibility and awareness of
our brands. We are extending our distribution systems to reach more consumers through
underserved retail channels such as e-commerce and high frequency stores. And, we are creating
a broader and deeper product portfolio. Our initiative pipeline has new and improved products
that extend and strengthen our category and brand portfolios vertically and horizontally.

 Continue to grow and develop faster-growing, structurally attractive businesses with

global leadership potential. We are continually optimizing our portfolio of brands and
businesses with an emphasis on opportunities in Beauty, Health Care and selective portfolio and
geographic acquisitions in Household Care. We will also identify growth opportunities in
services, particularly businesses that can be franchised and expanded rapidly.
To achieve our targets, we will also leverage core strengths that create competitive advantages
and are critical to winning in the consumer products industry: consumer knowledge, innovation,
brand-building, go-to-market capabilities and scale. We are placing particular emphasis on
execution, simplification and scale as key improvement areas that will enable P&G to create the
greatest value and competitive advantage. Finally, we are strengthening the depth, breadth and
quality of leadership at all levels of the Company to make P&G a more demand-driven, real-
time, future-focused organization.

P&G Products

Beauty & Grooming

Always
Always, the world’s leader in feminine protection, is dedicated to helping women embrace
womanhood positively—from the very beginning of puberty through their adult lives.

The Always brand is behind some of the biggest innovations in feminine hygiene history,
including the introduction of winged pads in 1985 and Ultra thin pads in 1990. Continuing its
goal of improving women’s lives across the world, Always recently introduced Always Infinity,
a pad made with a new-to-the-world material that enables women to have the magical
combination of absorbency, amazing softness, and flexibility all in one pad.

Beyond period protection, Always touches women’s lives in other ways as well. A global
puberty education program established by Always helps teach girls around the world about the
important topics of puberty and development. The program reaches approximately 83% of fifth
grade girls in the U.S.

Anna Sui
Everyone’s favorite Detroit-born dollybird, Sui’s always been boho to the bone, but in a way
that’s more glam than granola. Think Biba-era London, rock-and-roll Victoriana, floppy hats,
Empire-line flou, and peacock feathers—all atop the perfect pair of tough-chick boots. Sui
started out in the eighties and debuted on the runway in 1991. Today, her patchwork-boudoir
aesthetic is instantly recognizable in her clothing, her store design, even in her beauty packaging.
It’s a true lifestyle brand, and business continues to boom: She’s got a Soho flagship, 32
boutiques, international cult status (particularly in Asia), a successful beauty line, and the pièce
de resistance: the Anna Sui BoHo Barbie®

Aussie
Aussie offers shampoos, conditioners, treatments and styling products that are formulated with
natural Australian ingredients.
Braun
Consumers all over the world benefit from true “Braun moments”—delightful multi-sensorial
experiences that are based on consumer-centric innovation. Braun combines breakthrough
technologies, distinctive functional design, reliable quality, and superior longevity to make
consumers’ desires become reality. Braun products are designed to make a difference.

Camay
Camay is the name of a scented hand and body soap, made by Procter & Gamble. It was first
introduced in 1926 and marketed as a "white, pure soap for women," as many soaps of the time
were colored to mask impurities. Camay's slogan for many years was "Camay: the soap for
beautiful women." It was later replaced with "For your most beautiful complexion at every age."

Christina Aguilera Perfumes

Christina Aguilera's new perfume is expected in the autumn of 2010. The name of this edition
is Royal Desire, dedicated to women who feel like queens. If you enjoy luxurious things,
seduction and finding yourself in the center of attention, this fragrance was created just for you.
Clairol Professional
Clairol is the quality brand trusted by salons internationally to bring the warmth of real color,
quality and heart into the salon and awaken hair full of life, movement and luxury for everyone.

CoverGirl
They look to COVERGIRL as a fun and feisty beauty expert with the products and attitude to
make them feel confident. COVERGIRL understands the transformative effect makeup can have
not just on the outside, but the inside as well.

Since 1961, COVERGIRL has been an advocate of women rocking their unique kind of
beautiful. Through relatable models not bound by traditional standards of beauty—and
innovative products that are simply irresistible—COVERGIRL makes it easy, breezy, and
beautiful to be yourself.

Crest
Crest is committed to building on its history of developing innovative oral care products that
meet the needs of consumers around the world.

Since Crest introduced the first fluoride toothpaste proven effective in 1955, it is estimated that
Crest has helped prevent more than half a billion cavities in the United States alone. Crest also
was the first toothpaste to secure the ADA Seal of Acceptance.

DDF
In 1991, Dr. Sobel was among the first to pioneer the union of cosmetic dermatology and topical
skin care when he founded HDS Cosmetic Lab, a line of skin-care products that delivered
excellent results without a prescription. The line quickly became popular and was available
through upscale spas, estheticians, and small retail stores.

Dolce & Gabbana

Dolce&Gabbana (spelled without spaces, unlike the name of the company) specializes in luxury
items influenced more by designers and is more formal and 'timeless', responding to long-term
trends rather than seasonal changes. It also sells sunglasses and corrective eyewear, purses, and
watches. In February 2010, it was announced that American singer Madonna would design a
collection of sunglasses set to be released in May of that year. They also have a set of fragrances
for men and women.

Dunhill Fragrances
All fragrances sold under the Alfred Dunhill brand name are manufactured and marketed through
a licensing agreement by Procter and Gamble Prestige Products division. P&G gained the license
as part of their 1995 acquisition of the Wella Corporation.

Escada Fragrances
 Escada is an international luxury fashion group in women's designer clothing. The company has
a presence in about 60 different countries. Its main sales markets are North America, western and
eastern Europe and Asia.

Fekkai
Creating luxurious hair. Capturing a breathtaking image. See what inspires the Fekkai experts.

Fusion

Gillette® Fusion® ProGlide®
 and ProGlide® Power launched in 2010. Engineered with 15% thinner, finer
blades* for less tug and pull and an effortless glide, ProGlide set a new standard in shaving
performance. Gillette’s most comfortable shave ever is the result of extensive research and
development. Other key improvements include:
 an innovative blade suspension system that optimizes blade positioning against your skin.
 an enhanced lubrastrip with more lubricants enables the razor to glide smoothly.
 a redesigned precision trimmer ideal for shaving tricky places like under the nose.
 a more ergonomic handle for better control.

Ghost
GHOST perfumes and colognes are with earliest edition created in 2000 and the newest ones are
from 2010. Some of the bestsellers are Captivating, Ghost Anticipation, Ghost Cherish, Ghost
Deepest Night, Ghost Serenity, Ghost Sheer Summer that are all produced to satisfy the woman
taste.

Gillette
Gillette has been at the heart of men’s grooming for more than 100 years. Across the world,
everyday men prepare to be their best. Gillette understands that when men look good, they feel
good and they perform well. This means that grooming plays an increasingly important role in a
man’s day.

Gucci Fragrances
Gucci has just launched Gucci Guilty Pour Homme in the U.S. I always start my exploration of a
new Gucci fragrance by reading Gucci PR news releases and interviews with Gucci execs; these
mini-manifestos on perfume are guaranteed to prompt laughter (though they possess not a bit of
wit) and a combo of shock and respect (all that Gucci cares about when it comes to a fragrance
and its launch is making money…they don’t even try to convince us they regard perfume as an
aesthetic creation). The pairing of Gucci with Procter & Gamble Co. over the last several years
has produced some bland, inexpensive–smelling “luxury perfumes,” but the cash registers are
humming. Gucci Guilty Pour Homme is expected to bring in $250 million in retail sales
(globally) in its first year on shelves

Head & Shoulders

Introduced in 2007, the proprietary zinc pyrithione (ZPT) formula in Head & Shoulders
effectively targets the source of dandruff so men and women can feel confident that their hair
looks great. With full lines of shampoos and conditioners, Head & Shoulders systems provide the
dual benefits of achieving both a healthy scalp and great-looking hair. Offering ten shampoos
and five corresponding conditioners, Head & Shoulders has a line to fit the needs of all men and
women.

Herbal Essences
Herbal Essences is a brand of shampoo, hair conditioner, and hair coloring by Clairol. Herbal
Essences (and its parent company Procter & Gamble) is subject to an anti-vivisection campaign
by Uncaged Campaigns.

HUGO BOSS Fragrances

BOSS Black, the HUGO BOSS Fragrances core fashion brand, stands for clear-cut contemporary
design, specially selected fabric qualities, and high-quality detail. Inspired by this fashion, BOSS
BOTTLED fragrance was launched in 1998. It has become a classic fragrance while remaining
modern and relevant for today’s successful and ambitious man. The BOSS Black fragrance
family includes both male and female fragrances, such as BOSS Femme, BOSS Soul, and BOSS
Pure.

Ivory
For more than 125 years, Ivory has been bringing timeless values like good, clean fun to
American families. A familiar and trusted part of our past, today’s Ivory now brings you
everything from baby smooth skin in the bath to pure cleansers for the kitchen and laundry. The
same promise of purity and mildness that made Ivory the right choice for your grandmother’s
mother still makes Ivory best for your entire family.

Lacoste Fragrances

MACH3
With its three progressively aligned blades and streamlined DLC™ Comfort Edges, which were
thinner than any other Gillette blade edges at that time, MACH3 represented a quantum leap in
shaving technology and performance. The progressively aligned, spring-mounted blades, DLC™
Comfort Edges and innovative forward pivot action work in concert to provide men with a close
shave in fewer strokes with less irritation.

Naomi Campbell
Naomi’s beauty is natural and bedazzling. The wild Pearl Fragrance brings alive Naomi’s most
remarkable attributes; her classic beauty and her wild, exotic aura that make her shine like a
beautiful pearl.

Natural Instincts

Nice 'n Easy

Get the same gorgeous color in a fabulous new formula.
Only Nice 'n Easy uses Color Blend Technology for rich tones, dimensional color and complete
gray coverage—in a drip-free foam! Find out why Foam Fans everywhere LOVE IT

Nioxin
Eva's mission became the corporate goal for NIOXIN®. Since 1987, we have worked at
unraveling the complex challenge of how best to address, and most importantly, how to provide
a solution for thin-looking hair for the millions who battle this discouraging problem. Our world-
renowned team of researchers have developed one of the most advanced systems to improve the
appearance of thinning hair

Olay
Olay has a promise to women everywhere: “Love the skin you’re in.” It brings healthy, beautiful
skin to more than 80 million women on five continents

Old Spice
Old Spice is a prominent American brand of male grooming products. It is manufactured
by Procter & Gamble, which acquired the brand in 1990 from the Shulton Company.

Oral-B
Part of the Procter & Gamble Company since 2005, the Oral-B brand includes manual and power
toothbrushes for children and adults, oral irrigators, oral care centers, and interdental products,
such as dental floss. Oral-B manual and power toothbrushes are used by more dentists than any
other brand in the U.S. and worldwide.

Pantene
For more than 60 years, Pantene has offered consumers unsurpassed quality in state-of-the-art
products that have exemplified serious hair care and a hands-on approach of achieving beautiful,
healthy hair.

Pert
You want clean, healthy-looking hair without the hassle? Then find your favorite Pert Plus
shower companion and just add water. From Light to Deep to Dandruff Control, there's a
shampoo plus conditioner with your name on it. And here's something else you'll find refreshing:
we've added even more Pert Plus products to the list, so no hair type goes untreated.
Prestobarba/Blue Puma

Rejoice
Known as the expert in smoothness, Rejoice has gained high recognition by Chinese consumers,
and was voted “The Most Popular Foreign Trademark in China” by 250,000 consumers and
experts nationwide.

SK-II
The story of SK-II began at a sake brewery in Japan, where scientists noticed that elderly
workers had wrinkled faces, but extraordinarily soft and youthful-looking hands. These hands
were in constant contact with the sake fermentation process. It took years of research for
scientists to isolate the miracle ingredient: Pitera™, a naturally-derived liquid from the yeast
fermentation process.

Safeguard
Known as the expert in smoothness, Rejoice has gained high recognition by Chinese consumers,
and was voted “The Most Popular Foreign Trademark in China” by 250,000 consumers and
experts nationwide.

Sebastian Professional
The hotly anticipated re-launch of Sebastian Professional has finally arrived! Including some
original best-sellers just re-vamped and improved the new, enhanced range of this world
renowned brand is not to be missed. Known to have blown the lid off creativity for three-plus
decades, fearless styling isn't a limp statement but a style uniquely, fiercely, feverishly and
simply Sebastian.

Secret
Since 1956, Secret has been providing women the protection they need to take on life fearlessly
— to live arms up. Today, we continue in our push to help women live fearlessly through
innovation and inspiration.

Tampax
The story of SK-II began at a sake brewery in Japan, where scientists noticed that elderly
workers had wrinkled faces, but extraordinarily soft and youthful-looking hands. These hands
were in constant contact with the sake fermentation process. It took years of research for
scientists to isolate the miracle ingredient: Pitera™, a naturally-derived liquid from the yeast
fermentation process.

Venus
Venus believes there’s a Goddess in every woman. Who that Goddess is can be totally up to you.
But Venus helps you reveal it. Your inner Goddess isn’t about what you wear or how you look.
It’s about how you feel. How you act. It’s a frame of mind. A confidence that lets you charge
ahead and always put your best foot forward.

Vidal Sassoon
Great hair design begins with the client. We study individual features, characteristics and
personal style, applying each cut and colour with careful consideration and precision, creating
the ultimate individualised look that's effortlessly sophisticated.

Wella
Wella Professionals has a strong heritage of outstanding leadership in the salon industry. For
over 125 years, Wella Professionals has perfected the science and beauty of hair, working with
scientists and colorists worldwide to drive innovation and inspiration for salon professionals.
With extensive experience and a valued reputation worldwide, Wella Professionals redefines the
standard in color and service. It does so with advancing technology that takes professional results
to the next level with the passion and vision to deliver superior results that delight both stylists
and their client.
Household Care

Ace
The Ace brand was launched more than 40 years ago as a bleach, and has since expanded into
the worlds of homecare and detergent.* Ace stands for bleach that is safe to fabrics; its
formulation contains ingredients that help protect fabrics from damage and yellowing.

Ariel
In the late ’60s Ariel was launched to the world*. It was a time when individuals believed they
could make a huge difference in the world—a time of challenge and idealism, of vision
transformed into action. For Ariel, it was about imagination, determination, and technological
empowerment freeing women from their traditional domestic role.

Bold
The Bold 2in1 brand has continually transformed the laundry aisle. Created in 1972 as the first
non-biological powder, it was re-launched in 1982 as the first combined detergent and fabric
conditioner. Bold 2in1 does so much more than just clean—it delivers the perfect balance of
cleaning, softness, and freshness.

Bounce
We've raised the bar on convenience even higher with the Bounce Dryer Bar. It attaches safely to
the inside of your dryer and freshens every load automatically.

Bounty
Bounty offers varieties that match everyone’s needs for a paper towel. The strength and
absorbency of original Bounty provides great value while allowing consumers to clean the mess
with less*. Select-a-Size cleans the not-so-big messes with the same strength you love from
original Bounty. For a cloth-like paper towel, Bounty Extra Soft is tough on messes, soft on
faces. For light duty cleaning, Bounty Basic holds up for everyday clean ups. And for mealtime,
Bounty Quilted Napkins wipe messy hands and faces with a soft touch.

Cascade
In 1953, Cascade entered the automatic dishwashing market, offering “spotless dishes” to the 4%
of households with dishwashers. The brand stayed at the forefront for the next 50 years by
developing a range of automatic dishwashing products perfect for families’ needs and lifestyles.
Now, decades later, Cascade has captured more than 60% of the market.

Charmin
Charmin products are designed for consumers who prefer superior softness and absorbency in
their toilet paper and strive for the most comfortable bathroom experience. Research has also
shown that consumers use two times less Charmin product compared to the leading value brand
—and it still leaves you noticeably clean.

Cheer
Cheer For Darks has a special Colorguard® formula that helps prevent fading and helps keep
your clothes looking their best. Cheer For Darks contains chlorine scavengers that neutralize the
chlorine in your wash water; these scavengers help prevent fading caused by chlorine. Cheer
liquid also contains ingredients that help surround and suspend soils and excess dyes in the water
to prevent them from redepositing on fabric surfaces. Once the soils and excess dyes are
suspended, they can be removed more easily in the wash.

Comet
Comet is a powdered cleaning product sold in North America and distributed in the United
States by Prestige Brands. Scratch Free Comet with Bleach Disinfectant Cleanser contains
1.2% sodium dichloro-s-triazinetrione dihydrate (a derivative of cyanuric acid) and 98.8%
"other" ingredients. The only clues about the other ingredients in the product are disclaimers on
the label that mention that the surfactants in the product are biodegradable and that it contains
no phosphate. 

Dash
On the Italian market since 1966, Dash has been the laundry market leader in Italy for 25 years.
Italian consumers consider Dash to be the brand closest to their needs, the "Brand of the People"
that has always been close to consumers -- listening to their needs, providing innovative
solutions, and building solid trust.

Dawn
With Dawn by your sink, you can be sure: We’re committed to quality. It’s important to us that
we develop powerful formulas for you. In each drop, Ultra Dawn® has 30% more cleaning
ingredients than the leading non-concentrated brand. And many of our products are so effective
that they carry the Good Housekeeping Seal.

Downy
Downy believes that emotions are brought to life through the touch of fabrics, like the moment
you wrap your child in a giant, fluffy beach towel or when your toddler nuzzles his sleepy head
into the folds of your sweatshirt—or even when you put on that old, familiar sweater.

Dreft Laundry
The Dreft® formula is designed to not only help fight tough baby and toddler stains, but also
provide a gentle clean for baby.

Duracell
Duracell is the world’s leading manufacturer of high-performance alkaline batteries. Our
products serve as the heart of devices that keep people connected, protect their families, entertain
them, and simplify their increasingly mobile lifestyles.

Era
2X Ultra Era's concentrated formula gives you Era's stain-fighting power in a small convinient
bottle! Check out all the variants 2X Ultra Era has to offer and get tips from the experts on how
to get your whole wash ultra clean every time.

Eukanuba
Eukanuba is the brand that breeders and experts trust to deliver the best nutrition to their pets.

Febreze
In 1998, Procter & Gamble created a new product category in the laundry aisle by launching
Febreze Fabric Refresher, the first product of its kind to eliminate unwanted household odors
from soft surfaces. Now, twelve years later, Febreze continues to lead the fabric and air care
categories while bringing new product and scent innovations to market.

Gain
Gain covers all of your laundry needs with liquid laundry detergent, powdered laundry detergent,
liquid fabric softener, and dryer sheets. From Original Fresh and Apple Mango Tango to Floral
Fusion and Gain with Febreze Freshness Hawaiian Aloha, Gain offers 13 sniff-tastic scents every
nose will love.

Iams
The Iams Brand offers three types of products for consumers to choose from. Iams ProActive
Health with PreBiotics improves digestion and strengthens the pet’s immune system. Iams
Healthy Naturals strengthens the pet’s immune system by providing natural protein sources
Vitamin E and antioxidants, wholesome grains, and natural fiber found in apples. And Iams
Premium Protection offers the most advanced Iams nutrition available.

Joy dishwashing liquid is a major brand of dish-cleaning detergent product made by U.S.-based

personal and cleaning products manufacturer and marketer Procter & Gamble. Joy is currently
available in several fragrances and varieties, including an anti-bacterial formula, and is available
in both "non-ultra" and "ultra" (concentrated) strengths.

Luvs
Whether you have a newborn baby or an active toddler, Luvs® Ultra Leakguards help lock away
wetness, day and night. These diapers can even help protect against blowouts! And don’t forget
to clean up after big messes with our pillowy Ultra Clean wipes.
Mr. Clean (branded as Flash in the UK) is a brand name fully owned by Procter & Gamble. It is
used for a cleaning solution and related products, and as "Mr. Clean Magic Eraser", for
a melamine foam cleaner.

Pampers
For more than 40 years, Pampers has been helping to improve life for babies, toddlers, and the
parents who care for them through a complete line of diapers, training pants, and wipes designed
for every stage of baby’s development. As many of the researchers at Pampers are parents
themselves, they take great care in developing products that benefit both mom and baby, and are
committed to making a difference in babies’ lives.

Prilosec
With one Prilosec OTC pill a day, you can block frequent heartburn symptoms before they
strike for a full 24 hours of heartburn relief. That way you can power on with your day—and rest
at night—without concern that your frequent heartburn will flare up. That’s because Prilosec
OTC fights heartburn day and night by shutting down many of the acid pumps in your stomach.
It’s the all-day, all-night heartburn protection you need.

Pringles
The love of Pringles has spread around the world with sales in over 140 countries and packaging
produced in 37 languages. Pringles has a broad choice of tantalizing flavors that work across the
globe as well as unique flavors developed to please regional tastes.

Puffs
An everyday tissue for life’s little blows is just as thing for a silly sore nose. To comfort all your
noses in need, a box of Puffs basic is the right choice indeed.

Swiffer
In 1999, Swiffer was launched and revolutionized the way consumers clean. In fact, Good
Housekeeping magazine and its readers recognized the Swiffer Sweeper with its 2010 Very
Innovative Products Hall of Fame Award for helping improve the lives of consumers day-to-day
in a small but ingenious way. Currently Swiffer is partnering with the “Dog Whisperer,” Cesar
Millan, to help pet owners with their unique cleaning challenges

Tide
From Tide w/Bleach to Tide TotalCare to our new Tide Stain Release in-wash booster, Tide
believes in the importance of clean, fresh clothes that make you feel your best and most
confident—no matter what you’re wearing.

Vicks
For cold, flu, and cough symptom relief and advice, Vicks has everything you need when you’re
sick to make every day and night worth holding onto.

P&G’s Corporate Social Responsibility

Live, Learn and Thrive Overview

By focusing our social investments on improving life for disadvantaged children and
youth, P&G and our brands are able to focus our attention on an area that is critically important,
now and for generations to come.

There is tremendous need in this area, as millions of children around the world live in
heartbreaking conditions. By focusing our expertise, technologies, and resources to address these
issues, we can help children get off to a healthy start, receive access to education, and build skills
for life.

There are more than 100 Live, Learn and Thrive programs taking place in over 60
countries every day. From providing life-saving vaccinations and safe water in Africa, to safe
homes across Europe, to educational opportunities in Asia, to essential nutrition in North
America, to early childhood development in Latin America…P&G aims to improve life for
children and youth around the world.

We believe companies can be a force for good in the world, and this is who we are as a
global corporate citizen. Live, Learn and Thrive is woven into our philanthropy, cause
marketing, product donations, disaster relief, and employee engagement. The cause is a
reflection of our Purpose, and it embodies our goal of being closer to consumers from all walks
of life and in touch with the needs of communities around the world.

This commitment goes well beyond the P&G facilities. Every year, thousands of P&G
employees worldwide personally commit to helping children and youth live, learn and thrive in
their communities and beyond. Many employees volunteer their time or work in groups on team-
building projects such as building playgrounds for children, teaching the importance of safe
hygiene, or mentoring tweens and teens. And millions of dollars have been donated by
employees with the goal of improving life for children and youth.

We are humbled and honored to be recognized for the commitment we make through
Live, Learn and Thrive. P&G was included in the prestigious 100 Best Corporate Citizens 2009,
compiled by CRO (Corporate Responsibility Officer) Magazine. The Company won the Asia
Silver Award at the Global CSR Summit Awards and was honored in back-to-back years by
Feeding America as Donor of the Year. Finally, P&G was the only corporation invited to present
its cause to President Obama’s administration.

While we have made progress, there is much work to be done. Millions of children are in
need of a healthy start, access to education, and skills for life. Through P&G Live, Learn and
Thrive, we believe we can make a meaningful difference. If you would like to join in our effort,
consider donating to the Live, Learn and Thrive Fund— your donation will go to improving
life for children in need.
P&G Children’s Safe Drinking Water Program

Almost one billion people in the developing world do not have access to clean drinking
water. As a result, thousands of children die every day. The P&G Children’s Safe Drinking
Water (CSDW) Program reaches these people through PUR packets, a water purifying
technology developed by P&G and the U.S. Centers for Disease Control and Prevention (CDC).

One small PUR packet quickly turns 10 liters of dirty, potentially deadly water into clean,
drinkable water. The packets can be used anywhere in the world, including areas affected by
natural disaster.

This Live, Learn and Thrive program provides PUR packets on a not-for-profit basis.
Since the program began, more than 3 billion liters of purified drinking water in more than 60
countries have prevented an estimated 120 million days of diarrheal illness and helped save more
than 16,000 lives.

CSDW works with over 100 partners to provide PUR packets. The program responds to
emergencies including cholera outbreaks, earthquakes, floods and other natural disasters. CSDW
and its partners provide clean drinking water in schools, outreach to mothers in health clinics,
and clean drinking water for malnourished children, and also help people living with AIDS to
live positively.

Pampers Vaccinations

Every year, 59,000 people die from maternal and neonatal tetanus—a completely
preventable disease. So for the fourth year running, Pampers is teaming up with UNICEF to
deliver the vaccines that vulnerable women and their children need.
 The effort gets our consumers involved. With the purchase of one pack of Pampers, one
dose of the vaccine is donated. Our campaign has created the highest awareness ever for
maternal and neonatal tetanus, helping put the disease back on the agenda of health authorities.

Since 2006, a total of 100 million women and their babies have been protected against
maternal and neonatal tetanus. 

P&G and UNICEF have also teamed up to offer P&G employees in Western Europe the
opportunity to take a three-month paid sabbatical and work with UNICEF. The program is aimed
at employees who have always wanted to undertake humanitarian work but have not had the
chance before.

UNICEF benefits from the diverse backgrounds of P&G employees as they apply such
skills as communications, promotion, leadership training, and supply chain management.
Although resource requirements for UNICEF are ever-changing, three to four assignments are
expected per year.

Protecting Futures

Today, more than 600 million girls

live in the developing world. Many of these
girls miss several days of school each
month because they lack basic sanitary
protection to manage their periods.

Protecting Futures works with

partner organizations to provide puberty
education, sanitary protection, and sanitary
facilities to help vulnerable girls stay in
school. In conjunction with its partners and
other external thought-leading
organizations, Protecting Futures supports research on the issue and the impact of the
interventions the program enables.

Since 2006, Protecting Futures has worked with eight partners in 17 countries, reaching
more than 80,000 girls in the developing
world.

P&G Hope Schools

Thanks to P&G Hope Schools, a

program in partnership with the China Youth
Development Foundation, children now have
better access to education in poverty-stricken rural areas of China. P&G China continued its
long-term commitment to the program this year, founding its 200th P&G Hope School.

To help drive this Live, Learn and Thrive initiative, P&G created innovative partnerships
with retail customers. This has enabled these retailers—along with more than 100 million
shoppers annually—to participate in the cause and make significant commitments to build Hope
Schools with P&G.

P&G Hope Schools have benefited over 100,000 children across China in the last 12
years, and over 5,000 P&G China employees have actively supported its program activities.

P&G and Shiksha: Increasing Access to Education in India

India has the world’s largest population of uneducated children, with nearly half of all
children there not attending school. The Shiksha program (Shiksha - Hindu for "Education") is
dedicated to fighting that trend, helping to provide access to education for more children.

The program funds NGO efforts to address the underlying causes of poor access to
education, such as poverty, health issues, and access to immunization. In cases where schools
don’t exist, the program also funds their construction.

Each time a consumer bought a

large pack of any P&G brand in
India between April and June of
2010, part of the proceeds went
toward leading children on the
path to education.

Shiksha also benefits from the

direct involvement of P&G
employees. Each year,
employees participate in a
Shiksha Walk-a-thon, joining
their families and others in
raising awareness for the cause.

P&G and Feeding America: Fighting Hunger

Every day, 13 million children in the United States risk going hungry. But P&G is
partnering with Feeding America to help change that, providing support through a number of
efforts aligned with our Live, Learn and Thrive cause.
Clean Hands save Lives
Hand washing is one of the most effective and affordable health interventions, representing a
cornerstone of public health. And water alone is not enough
—using soap and water at critical times, such as after using
the toilet and before handling food, can help reduce the
incidence of diarrheal disease by almost half, and cut
respiratory infections by nearly 25%. It is also
recommended as a critical action to prevent the spread of
influenza H1N1.

Establishing good hygiene habits early is essential to

protecting people from disease. That’s why Safeguard, in
partnership with NGOs and key governments around the
world, has embarked on a public health campaign designed to keep people safe and healthy.

Escudo In Mexico
When the H1N1 flu pandemic swept the world, Mexico was hit hard, and the government
closed most of Mexico City’s public facilities to contain the disease. Safeguard, known as
Escudo in Mexico, tapped into the deep human insights that “mom will do anything to protect
the ones she loves,” and that protection was more important than ever with the H1N1 threat.

Escudo partnered with the government, health officials, and the Mexican Red Cross to
launch Global Hand Washing Day. Through a series of in-store displays and TV spots, Escudo
touched and improved the lives of Mexican consumers by spreading the message that “clean
hands save lives.” The campaign enabled Escudo to become the number one antibacterial soap in
Mexico. It also led to Escudo’s endorsement by the Mexican Red Cross—making Escudo the
only commercial brand endorsed by the organization.

Safeguard: Building a Great Wall of Hygiene in China and Beyond

The Safeguard Health Great Wall campaign, which also employs the idea that “clean
hands save lives,” aims to engage schoolchildren in China as effective agents for change. The
effort broadens health hygiene education in schools, as well as building sanitation facilities in
rural areas to encourage hand washing.

The program’s goal is to educate 10 million children by 2018. Consumer purchases of

Safeguard help to fund the program, while volunteer opportunities allow individuals to
experience directly the importance of good hygiene.

In addition to China and Mexico, similar outreach efforts have also been led by P&G in
other countries. In Pakistan, Safeguard will be establishing hand washing facilities in schools and
delivering hand hygiene education to approximately 600,000 school children. And in the
Philippines, Safeguard will help deliver hand hygiene education to one million school children,
while a portion of Safeguard sales go toward building new sanitation facilities
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 PUR 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 PUR 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.

Other Global Programs

Our social investments are focused on improving the lives of children in need through
Live, Learn and Thrive, our far-reaching global cause. Leveraging the scale of our Company and
the passionate, skilled volunteerism of our employees, we are on track to reach more than 300
million children by 2012.

Beyond our signature Live, Learn and Thrive programs—such as Children’s Safe
Drinking Water, Always/Tampax Protecting Futures, and Hope Schools—a number of other
programs are under way to serve the needs of communities throughout the world.

This program contributes to fight against school abandonment in rural areas of Morocco
through a partnership with a local NGO. Operation Velo donates bikes to children in villages far
from the school, helping them continue to go to school and learn.
So far, 1,200 bikes have been provided to students in rural areas. Since then, a very low school
abandonment rate has been reported, children have been educated about the rules of the road, and
safety equipment such as helmets and armbands have been provided.

A widespread consensus has emerged on the importance of early childhood development

(ECD) to the long-term well-being of children, and P&G Latin America has identified this issue
as its top social priority. Since 2004, P&G has promoted ECD through different projects, with a
vision of articulating and evolving those isolated efforts into a single, significant program that
truly makes a difference.
Our vision is to fully establish by 2015 an ongoing, multi-stakeholder program in Latin
America that will enhance the development of children ages zero to six, helping them to learn
and thrive in life.
Since the program’s inception, more than 4,000 children have been accompanied in
Argentina to ensure a healthy start. 40,000 Chilean families have been trained to better stimulate
their children. 18,000 Mexican children have received their birth registrations. And similar
results have been achieved in Brazil, Peru, Venezuela and other Latin American countries.
The Manchay Vive program was created to reduce infantile morbidity in Manchay, Peru. It
offered preventive activities intended to generate a culture of health.
During the program’s duration, clinical histories were compiled for 3,000 children up to
age 10. 1,500 children between ages three and seven benefited from nutritional and parasite
controls. 1,500 parents received parental instruction, and 1,000 mothers experienced preventive
talks and nutritional and medical orientation.
More than six million children are hospitalized each year in the United States, forced to
confront the challenges of overcoming illness while being away from home in an unfamiliar
environment. In order to bring a little comfort and security back to some of these children,
Downy fabric softener, in partnership with Quilts for Kids, Inc., has launched the Downy Touch
of Comfort program to provide quilts to these children while hospitalized.

“SOS Enfance Mal Logée” is a P&G multi-brand charity campaign that has been running
since 2001 to support the housing program of the Fondation de France, one of the largest French
NGOs. The campaign is aimed at raising funds to help families with children suffering from poor
housing conditions. The objective is to create a decent home environment where children can
stay with their parents and live, learn and thrive.
In parallel to the funds raised through the purchase of P&G brands, P&G French employees can
get personally involved in the program. The employees’ effort is led by a team of volunteers who
organize regular events at the P&G offices to increase the Company’s donation.
Since 2001, P&G France and its employees have been donating more than two million euros to
the Fondation de France, benefiting more than 2,500 families.

P&G France supports one of the largest and the most respected NGOs among French
consumers, les Restos du Cœur. One branch of the association is the “Restos-Bébés du Cœur,”
which creates specialized centers to answer the specific needs of underprivileged mothers and
children from 0 to 18 months old who live below the standard of living.
Every week, this association welcomes mothers with their children in their centers, providing
food and basic products for their babies, helping them with administrative forms, guiding them
towards appropriate public social bodies, and giving them advice on hygiene and nutrition for
their children. In short, these are places where mothers can find help and support and places
where children can live, learn and thrive.
Recently, two new Bébés du Cœur centers have opened, P&G employees have been engaged to
volunteer their time, and an in-store campaign collected 285,000 euros’ worth of donations.
 P&G’s Commitment to Haiti Disaster Relief

P&G immediately started working with many disaster relief partners to move PUR
packets into Haiti. Dr. Greg Allgood, Director of our P&G Children’s Safe Drinking Water
program, traveled to Haiti to help train field personnel how to use and deploy PUR. Many of our
employees around the world generously contributed to a special Company-matched fund that
was distributed to these partners for the most urgent needs. We also donated products—brands
like Pampers, Duracell, Always, Crest, Oral-B and Pantene.

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 PUR 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 PUR 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.

P&G’s Commitment to China Earthquake Relief

Some P&G employees worked to provide PUR packets, products and monetary
contributions. Others worked to repair our facilities and get them operational again in just two
weeks. Restoring our operations back to full function helped our employees, suppliers and
customers get back into the rhythm of everyday life.
P&G employees participated in many volunteer activities, including a trip that 56
employees took to Villa Prat, a town located three hours from Santiago. While there, some of our
employees distributed building materials. Others played football, danced and painted with the
local children to give their parents a break from the stress of living in temporary housing.

P&Gers Improving Lives

Another component of our Sustainability involves bringing our efforts to life in the
communities where we live and work. A number of programs give our employees the
opportunity to touch lives directly within their own regions through P&G’s Live, Learn and
Thrive cause.

P&G supports handicapped children in Korea through a program known as “Dreaming

Together for the Future.” The program, funded in part by P&G product purchases, is centered on
enabling children in their self-development.
 These programs are intended to bring children and teenagers access to vocational
education for an otherwise unavailable path to independence. For instance, P&G employees help
develop participants’ skills in areas ranging from baking to journalism.
To expand the children’s exposure to new and interesting experiences, P&G employees
also lead programs to help handicapped children discover their hidden talents in areas such as art,
music, and sports.
Since 2005, the program has touched the lives of over 2,000 handicapped children in
Korea. Their growth and development is seen not only through demonstration of their new skills
but also through the proud and confident smiles they wear on their faces.
The “Seeds of Passion” program focuses on children from economically and socially
unprivileged areas of Targówek, Poland. It provides opportunities for them to develop their skills
and passions and get a better start in adult life. These activities take place after school. In the
past, this was when these children were vulnerable to taking on habits of alcoholism and drug
abuse.
The program now reaches 650 children per year. Annually, more than 600 hours of
educational activities and workshops are led by P&G volunteers and partner organizations. In
fact, one of P&G’s volunteers has helped lead a team of disadvantaged children to win
recognition in the annual youth kite making and flying competition.
The program has been so successful, it is being expanded to reach 50,000 children over the next
two years throughout Poland.
In Latvia, Estonia, and Lithuania, children in P&G-sponsored orphanages benefit from a
program called “One Friend is Worth a Million Dollars.” As a platform for educational, cultural,
and sport activities, 100% of P&G employees in the region participate to help prevent children
from dropping out of school for a life on the streets. Building the children’s self-esteem and
skills for life are essential for helping them achieve their goals.
This objective is achieved through common extracurricular education, sport, and cultural
activities held with P&G employees. Activities range from planting pine trees to educational
programs such as English lessons, sports lessons, and summer camp. The program reaches 145
children each year. In most cases, the interaction with P&G employees is one-on-one, fostering
long-term productive relationships.
Success Camp, a P&G program in Saudi Arabia, helps build self-esteem and life skills
among orphaned children by training them on such success factors as collaboration, knowledge,
and discipline. In addition, P&G employees conduct science and technology training and
workshops that open doors to never before considered career possibilities.
More than 1,500 children have benefited thus far. Not surprisingly, the success of the
participants fosters pride among the many P&G employees who volunteer. This pride is
contagious and helps attract more P&G volunteers who will benefit even more children and
youth.
In Costa Rica, P&G helps provide equal access to education with its program
“Eliminating Barriers.” Launched in conjunction with the start of Live, Learn and Thrive, the
program aims to systemically remove the barriers that prevent disabled children from receiving
an education—physical as well as psychological barriers.
 P&G employees actively participate in renovation projects to eliminate architectural
barriers that limit the access of physically challenged students into their schools through the
construction of ramps and accessible bathrooms and classrooms. The program also works toward
eliminating attitudinal barriers through trainings for teachers and administrative staff, helping to
facilitate optimal attention for physically challenged children.
Approximately 16,000 children in elementary schools throughout the region have
benefited from the program, and more than 600 P&G employees have donated over 2,500 hours
of volunteer work to the Eliminating Barriers schools.
The SOS Children’s Villages program provides safe housing for homeless children in
Greece, Portugal, and Spain. P&G funding supports education and extracurricular activities,
providing children a chance to grow academically, develop their talents, and build their future.
P&G employees regularly visit the villages to serve as mentors to the children.

Employee Engagement

Responsibility Matters

Our objective is to engage and equip all P&Gers to build sustainability thinking and
practices into their everyday work. We are driving efforts to make sustainability top-of-mind for
all P&G employees, keeping personal responsibility relevant both at work and at home.

At P&G, employees often leave a meeting offering to “take the R” (responsibility) for a
next step or action item. Borrowing from this Company vernacular, we frame our engagement
efforts around the “Take the R for Tomorrow” program.

We partner with our suppliers to implement programs that improve the environmental
profile of our facilities and enable employees to work in an environmentally conscious
workplace.

Facilities
Jones Lang LaSalle, P&G’s property management partner at offices and technical
centers, has teams at each location responsible for energy, water and waste reductions. Through
this partnership, we have implemented ongoing efforts aimed at educating employees and
influencing more sustainable workplace behaviors. In addition, sustainability criteria are part of
any future space assessment to ensure new locations meet strict environmental standards.

Here are a few examples of programs:

 Water consumption has been reduced through improved cleaning processes and the use of
steam in place of water, upgrades to specialty water systems and improved controls on building
process equipment
 During the lunch hour at twelve sites across Asia, the lights turn off to conserve energy
 In the U.S. and UK, where night time cleaning had previously been normal business,
work hours for cleaning staff now begin earlier in order to reduce the number of cleaning hours
requiring lighting
 At many sites around the world, reusable acrylic tumblers have replaced disposable cups
for fountain beverages
 In Cincinnati, OH, reusable plastic containers have replaced cardboard moving boxes

Managed Print Services

For the past year, P&G’s Global Business Services has been working with Xerox to
simplify our global printing structure, bringing to life a network of more reliable, better-serviced
and more capable printers. Today we can print anywhere in the P&G print world, scan to email,
print two-sided, eliminate the cover pages, and use smart color. In just one year, P&G has printed
11 million fewer pages, and that number is expected to grow considerably

Environmental Sustainability

New Long-Term Vision

Recently, P&G announced a new long-term environmental sustainability vision.

Why now?
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

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.

Our complete visionary end-points are outlined below. These end-points are long-term in
nature because some of them will take decades to come to fruition.
 Using 100% renewable or recycled materials for all products and packaging
 Having zero consumer waste go to landfills
 Designing products to delight consumers while maximizing the conservation of resources

 Powering our plants with 100% renewable energy

 Emitting no fossil-based CO2 or toxic emissions
 Delivering effluent water quality that is as good as or better than influent water quality
with no contribution to water scarcity
 Having zero manufacturing waste go to landfills

What this means

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.

What this means

In the developed world, waste can be disposed of in four ways: recycling, compost, 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).

What this means

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.

What this means

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.

What this means

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
CO2 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.

What this means

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.

What this means

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).