PG Procter and Gamble Co

 July 30, 2015  Procter & Gamble Earnings Release:Q4 FY 2015 Results 

 Fiscal Year 2015Business Results 

 Fiscal Year 2015 ResultsOrganic Sales Growth  1%  3%  3% 

 Fiscal Year 2015 ResultsCore EPS Growth*  * Excludes Pet Care & Batteries 

 Fiscal Year 2015 ResultsConstant Currency Core EPS Growth*  * Excludes Pet Care & Batteries 

 Returning Value to Shareholders  $ billions  FY 2015  Past 10 FY’s  Dividends  7.3  55.7  Share Repurchase  4.6   55.7*  Value to Shareholders  11.9  111.4  % of Adjusted Net Earnings  105%  94%  * Excludes Gillette repurchases 

 Apr – Jun 2015 (Q4 FY 15)Business Results 

 Apr – Jun 15 (Q4 FY 15) ResultsOrganic Sales Growth*  Organic sales were flat with 3 of 5 reporting segments growing versus prior year.  2%  * Restated for Batteries & PetCare  0%  2%  

 Apr – Jun 15 (Q4 FY 15) ResultsMarket Share   Global value share ~21% % of Sales Holding/Growing Share ~45% 

 Apr – Jun 15 (Q4 FY 15) ResultsCore EPS Growth*  Core EPS includes 90 basis points of operating margin improvement driven by productivity savings.  * Restated for Batteries & Pet Care  -8%  3%  22%  8% 

 Apr – Jun 15 (Q4 FY 15) ResultsCurrency Neutral Core EPS Growth*  Excluding the impact of foreign exchange, currency-neutral core earnings per share increased 22% for the quarter.   * Restated for Batteries & Pet Care  28% 

 Results To-DateNon-Core Restructuring Spending*  * Restated for Pet Care & Batteries    FY 15          ($MM Before Tax)  JAS  OND  JFM  AMJ  FY  Cost of Goods Sold  93  77  161  202  533  SG&A   2  18   92  79  191  Total Non-Core Restructuring  95  95  253  281  724 

 

 Estimated Restated FY ‘15 Core EPS  FY ‘15 Core EPS – As Reported $4.02Adjustments: Results* Restated to Disc Ops (0.25) FY ‘15 Core EPS - Estimated Restated $3.77  * Includes results for the Salon Professional, Fragrance, Cosmetics and Hair Color categories 

 Business Segments 

 Apr – Jun 15 (Q4 FY 15) ResultsBeauty, Hair & Personal Care Segment  +5% Pricing, -1% MixOrganic Sales: h Low single digits in Developed markets, i Mid-single digits in Developing marketsGlobal value share declined 0.7 points versus year agoNet Earnings: Productivity improvements and pricing were more than offset by volume decline, mix hurts and currency headwinds.  Organic Sales  Organic Volume  Net Earnings  -1%  -5%  -1% 

 By Category  Organic Sales Growth IYA        Global  Developed  Developing  Hair Care  ~=  ~=  ~=  Skin Care  -  -  -  Personal Cleansing  -  ~=  -  Deodorants  +  +  -  Cosmetics  ~=  +  -  Prestige  -  +  -  Salon Professional  +  +  +  Apr – Jun 15 (Q4 FY 15) ResultsBeauty, Hair & Personal Care – Organic Sales   + represents growth above 1%, ~= represents growth of 1% to decline of 1%; - represents decline greater than1%. 

 Hair Care organic sales were in-line with year ago. Globally, growth on Head & Shoulders was off-set by declines in smaller Hair Care and Color brands. For FY ‘15, U.S. Pantene grew sales mid-single digits, and P3M value share was up nearly 1 point.Skin Care organic sales declined due to competitive challenges across regions. Antiperspirants and deodorants organic sales were up high single digits. Developed market sales increased double digits with continued strength in Old Spice and were partially off set by Developing market sales decline due to a high base period from the Old Spice expansion.Personal Cleansing organic sales were down due to declines in Developing markets largely behind impacts from trade inventory corrections in China.Cosmetics organic sales were down low single digits. Mid-single digit sales growth in Developed markets behind a focus on higher tier products and lower trade investments was more than offset by declines in Developing markets due to negative geographic mix.Organic sales in Prestige decreased low single digits. Strong sales growth in SKII was more than offset by declining sales in Fragrances due to lower levels of product innovation versus the base period.Salon Professional organic sales were up mid-single digits driven by pricing, innovation and a low base period.  Apr – Jun 15 (Q4 FY 15) ResultsGlobal Beauty, Hair & Personal Care Highlights 

 Apr – Jun 15 (Q4 FY 15) ResultsGrooming Segment  +4% Pricing, -4% MixOrganic Sales: i High singles in Developed markets, i Mid-singles in Developing marketsGlobal value share declined 0.3 points versus year agoNet Earnings: Price increases and productivity savings were more than offset by volume declines, mix hurts and currency headwinds.  -7%  -34%  Organic Sales  Organic Volume  Net Earnings  -7% 

 By Category  Organic Sales Growth IYA        Global  Developed  Developing  Blades & Razors  -  -  -  Pre & Post Shave  +  ~=  +  Braun & Appliances  ~=  ~=  ~=  Apr – Jun 15 (Q4 FY 15) ResultsGrooming – Organic Sales   + represents growth above 1%, ~= represents growth of 1% to decline of 1%; - represents decline greater than1%. 

 Global Blades & Razors organic sales declined in Developed and Developing markets driven by a high base period from the FlexBall launch in North America and FIFA World Cup innovation across regions, prior quarter inventory builds for the FlexBall launch in Europe, increased competitive activities in North America, and inventory adjustments after recent devaluation price increases in Russia, Brazil and Japan.Appliances organic sales were up slightly as growth from recent innovation, like the launch of Series 9 shavers was off set by promotional investments.  Apr – Jun 15 (Q4 FY 15) ResultsGlobal Grooming Highlights 

 Apr – Jun 15 (Q4 FY 15) ResultsHealth Care Segment   +4% Pricing, +3% MixOrganic Sales: h Mid-singles in Developed markets, h Mid-singles in Developing markets Global value share declined 0.5 points versus year agoNet Earnings: Price increases, mix helps, and productivity savings were more than offset by volume declines and currency headwinds.  Organic Sales  Organic Volume  Net Earnings  -3%  -1%  4% 

 By Category  Organic Sales Growth IYA        Global  Developed  Developing  Oral Care  +  +  +  Personal Health Care  +  ~=  +  Apr – Jun 15 (Q4 FY 15) ResultsHealth Care – Organic Sales   + represents growth above 1%, ~= represents growth of 1% to decline of 1%; - represents decline greater than1%. 

 Oral Care organic sales increased mid-single digits. Developed market sales were up mid-singles due to premium innovation and Developing markets grew low single digits behind premium innovation and pricing.Personal Health Care sales increased low single digits with Developing market sales up high singles behind price increases. Developed market sales were flat as growth in the U.S. from innovation and the end of a strong cough/cold season was offset by declines in Prilosec due to a new market entrant.  Apr – Jun 15 (Q4 FY 15) ResultsGlobal Health Care Highlights 

 Apr – Jun 15 (Q4 FY 15) ResultsFabric & Home Care Segment  +2% Pricing, Flat MixOrganic Sales: h Mid-singles in Developed markets, i Low singles in Developing marketsGlobal value share declined 0.3 points versus year agoNet Earnings: Productivity savings, pricing and commodity improvements were offset by currency headwinds and negative mix.  Organic Sales  Organic Volume  0%   3%   1%   Net Earnings 

 By Category  Organic Sales Growth IYA        Global  Developed  Developing  Fabric Care  +  +  -  Home Care  +  +  +  P&G Professional  +  +  -  Apr – Jun 15 (Q4 FY 15) ResultsFabric & Home Care – Organic Sales   + represents growth above 1%, ~= represents growth of 1% to decline of 1%; - represents decline greater than1%. 

 Fabric Care organic sales increased low single digits. Developed market sales were up mid-single digits with solid growth in the U.S. behind innovation and in Japan due to a low base period due to the VAT tax increase. Developing market sales declined behind competitive activity, inventory corrections from devaluation pricing, minor brand divestitures and the deprioritization of non-strategic forms such as bars.U.S. Fabric Care value share grew nearly 1 point behind the launch of our innovation bundle in the March quarter and additional investments.Home Care organic sales grew mid-single digits. Developed market sales were up mid-singles driven by growth from premium innovation in the U.S. and Developing market sales increased low single digits due to pricing and strong growth of dish care.  Apr – Jun 15 (Q4 FY 15) ResultsGlobal Fabric & Home Care Highlights 

 Apr – Jun 15 (Q4 FY 15) ResultsBaby, Feminine & Family Care Segment  +3% Pricing, +2% MixOrganic Sales: h Mid-singles in Developed markets, i Mid-singles in DevelopingGlobal value share declined 1.0 points versus year agoNet Earnings: Pricing, lower commodity costs and productivity savings were more than offset by currency headwinds and marketing investments.  Organic Sales  Organic Volume 

 By Category  Organic Sales Growth IYA        Global  Developed  Developing  Baby Care  ~=  +  -  Feminine Care  ~=  +  -  Family Care  +  +  -  Apr – Jun 15 (Q4 FY 15) ResultsBaby, Feminine & Family Care – Organic Sales   + represents growth above 1%, ~= represents growth of 1% to decline of 1%; - represents decline greater than1%. 

 Baby Care organic sales were in line with year ago as solid growth in the U.S was partially offset by inventory adjustments and consumer demand reductions due to pricing for currency devaluation and trade terms changes in developing markets. In the U.S., baby care value share was up over 1 point versus year ago behind innovation driven up-tiering, with Swaddlers growing value share over 2 points versus last year.Feminine Care organic sales were in-line with year ago. Mid-single digit sales growth in Developed markets due to the Adult Incontinence launch in 10 markets, including North America, U.K., France, Netherlands, Belgium and Germany, and new innovation on the base business in the U.S. was off set by volume reductions due to devaluation pricing in Developing markets.Family Care organic sales were up mid-single digits as growth in the U.S. behind value interventions was partially off set by declines in Mexico as we focus the portfolio on the top tier.  Apr – Jun 15 (Q4 FY 15) ResultsGlobal Baby, Feminine & Family Care Highlights 

 Fiscal Year 2016 Guidance 

 FY 2016 Guidance*Organic Sales    FY’16  Organic Sales Growth  In-line to Up Low Single Digits  Currency  -4% to -5%  Minor brand divestitures  Modest Drag  All-in Sales Growth  Down Low to Mid-Single Digits  * Guidance assumes that Batteries & transitioning Beauty businesses are accounted for as discontinued operations 

 FY 2016 Guidance*EPS Growth    FY’16  Core Operating Income Growth  Up Mid to High Single Digits  Core Earnings Per Share Growth  Down Slightly to Up Mid-Single Digits  All-in Earnings Per Share Growth  +53% to 63%      Other Items:    Venezuela Deconsolidation  $(0.05) to (0.06)  Beauty deal transition costs  $(0.02) to (0.03)  Non Operating income  $(0.09) to (0.10)  Tax Rate  $(0.16)  Foreign Exchange  $(0.12) to (0.15)  Commodities  Modest Benefit  * Guidance assumes that Batteries & transitioning Beauty businesses are accounted for as discontinued operations 

 FY 2016 GuidanceCash Generation & Usage  Free Cash Flow Productivity: 90-100%Capital Spending, % Sales: 5% to 6%Dividends: $7B+Share Retirement/Repurchases: $8B to $9B  * Shares retired at the close of the Duracell transaction. 

 Forward Looking Statements  Certain statements in this release or presentation, other than purely historical information, including estimates, projections, statements relating to our business plans, objectives and expected operating results, and the assumptions upon which those statements are based, are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements generally are identified by the words "believe," "project," "anticipate," "estimate," "expect," "intend," "strategy," "future," "opportunity," "plan," "may," "should," "will," "would," "will be," "will continue," "will likely result," and similar expressions. Forward-looking statements are based on current expectations and assumptions, which are subject to risks and uncertainties that may cause results to differ materially from those expressed or implied in the forward-looking statements. We undertake no obligation to update or revise publicly any forward-looking statements, whether because of new information, future events or otherwise. Risks and uncertainties to which our forward-looking statements are subject include, without limitation: (1) the ability to successfully manage global financial, operational and manufacturing risks, including, among others, (a) an increasingly volatile economic environment, with potentially significant disruptions and reduced market growth rates, (b) foreign currency fluctuations, (c) significant credit or liquidity issues, (d) debt, currency exposure and repatriation issues in countries with currency exchange, import authorization or pricing controls (such as Venezuela, Argentina, China, India and Egypt), (e) maintaining key manufacturing and supply sources (including sole supplier and sole manufacturing plant arrangements), and (f) managing disruption of business due to factors outside of our control, such as natural disasters and acts of war or terrorism; (2) the ability to successfully manage cost fluctuations and pressures, including commodity prices, raw materials, labor costs, energy costs and pension and health care costs, and achieve cost savings described in our announced productivity plan; (3) the ability to stay on the leading edge of innovation, obtain necessary intellectual property protections and successfully respond to technological advances attained by, and patents granted to, competitors; (4) the ability to compete with our local and global competitors by successfully responding to competitive factors, including prices, promotional incentives and trade terms for products; (5) the ability to manage and maintain key customer relationships; (6) the ability to protect our reputation and brand equity by successfully managing real or perceived issues, including concerns about safety, quality, efficacy or similar matters that may arise; (7) the ability to successfully manage the financial, legal, reputational and operational risk associated with third party relationships, such as our suppliers, contractors and external business partners; (8) the ability to rely on and maintain key information technology systems and networks (including Company and third-party systems and networks) and maintain the security and functionality of such systems and networks and the data contained therein; (9) the ability to successfully manage regulatory, tax and legal requirements and matters (including, without limitation, product liability, intellectual property, price controls, import restrictions, accounting standards and environmental and tax policy) and to resolve pending matters within current estimates; (10) the ability to successfully manage our portfolio optimization strategy, as well as ongoing acquisition, divestiture and joint venture activities, to achieve the Company's overall business strategy, without impacting the delivery of base business objectives; (11) the ability to successfully achieve productivity improvements and manage ongoing organizational changes, while successfully identifying, developing and retaining particularly key employees, especially in key growth markets where the availability of skilled or experienced employees may be limited; and (12) the ability to generate sufficient income and cash flow to allow the Company to effect the expected share repurchases and dividend payments. For additional information concerning factors that could cause actual results to materially differ from those projected herein, please refer to our most recent 10-K, 10-Q and 8-K reports.