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 citizenbut our opportunity is something far greater, and is embodied in our Purpose. P&Gs 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 worlds 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 Childrens 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 worldthe 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&Gs 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 fatherin 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 testmarketed 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 Companys 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&Gs businesses in the Philippines, Japan and Korea, including responsibility for P&Gs Hair Care business in Asia and the P&G Beauty business in Japan. Bob led Global Fabric & Home Care, the Companys 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&Gs market development organizations and was a member of the team that created the Companys 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&Gs global brand-building capability. He also played a pivotal role in the integration of Gillette and led P&Gs game-changing go-to-market reinvention. Bobs strategy for P&Gs growth in the decade ahead is linked tightly to the Companys Purpose. He has committed to build P&Gs business by touching and improving more consumers lives in more parts of the worldmore completelya 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 WellBeing 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&Gs 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&Gs North America Market Development Organization (MDO). Rob was appointed Vice President of the North America MDO, P&Gs 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&Gs 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. Josephs 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, Chinas highest award for foreign experts who have made outstanding contributions to Chinas 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 Gillettes Papermate and Oral-B Divisions. Ed spent the early 1990s leading Gillettes North American Oral-B business, competing against the worlds biggest consumer goods companies, including P&G. In the late 90s, he moved to Germany to run Brauns European and Global Selling organizations. Following this, Ed led the redesign and transformation of Gillettes 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 Gillettes 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 Gillettes 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 Gillettes International Commercial Operations, which represented more than 60% of the Companys sales. During Gillettes 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&Gs largest region, North America, delivering share growth while driving the implementation of P&Gs 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&Gs 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 Segment % of Net Sales* % of Net Earnings*Key Products

GBU

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

Beauty Grooming

23% 9%

22% Cosmetics, Deodorants, Hair Care, Personal Cleansing, Prestige Fragrances, Skin Care 13% Blades and Razors, Electric Hair Removal Devices, Face and Shave Products, Home Appliances 21% Feminine Care, Oral Care, Personal Health Care, Pharmaceuticals 2% Pet Food, Snacks 26% Air Care, Batteries, Dish Care, Fabric Care, Surface Care 16% Baby Wipes, Bath Tissue, Diapers, Facial Tissue, Paper Towels

Head & Shoulders, Olay, Pantene, Wella Braun, Fusion, Gillette, Mach3 Actonel, Always, Crest, Oral-B Iams, Pringles Ariel, Dawn, Downy, Duracell, Gain, Tide Bounty, Charmin, Pampers

HEALTH AND WELL-BEING Health and Well-Being HOUSEHOLD CARE

Health Care Snacks and Pet Care Fabric Care and Home Care Baby Care and Family Care

17% 4% 29%

Household Care

18%

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 Companys 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 Companys long-term financial targets are:

y o o   y y y

Organic sales growth of 4% to 6%. This is comprised of: 3% to 4% of market growth, plus 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). 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 worlds 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, realtime, future-focused organization.

P&G Products Beauty & Grooming

Always Always, the worlds leader in feminine protection, is dedicated to helping women embrace womanhood positivelyfrom 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 womens 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 womens 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 Everyones favorite Detroit-born dollybird, Suis always been boho to the bone, but in a way thats more glam than granola. Think Biba-era London, rock-and-roll Victoriana, floppy hats, Empire-line flou, and peacock feathersall 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. Its a true lifestyle brand, and business continues to boom: Shes got a Soho flagship, 32 boutiques, international cult status (particularly in Asia), a successful beauty line, and the pice 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 momentsdelightful 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 beautyand innovative products that are simply irresistibleCOVERGIRL 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

y y y y

shaving performance. Gillettes 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 mens 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 mans 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 moneythey dont 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, inexpensivesmelling 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 todays 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, todays 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 grandmothers 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 Naomis beauty is natural and bedazzling. The wild Pearl Fragrance brings alive Naomis 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 coveragein 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 worldrenowned 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 youre 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 theres a Goddess in every woman. Who that Goddess is can be totally up to you. But Venus helps you reveal it. Your inner Goddess isnt about what you wear or how you look. Its about how you feel. How you act. Its 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 worlda 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 cleanit 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 everyones 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 brandand 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: Were committed to quality. Its 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 sweatshirtor 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 worlds 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 pets immune system. Iams Healthy Naturals strengthens the pets 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 dont 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 babys 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 dayand rest at nightwithout concern that your frequent heartburn will flare up. Thats because Prilosec OTC fights heartburn day and night by shutting down many of the acid pumps in your stomach. Its 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 lifes 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 confidentno matter what youre wearing. Vicks For cold, flu, and cough symptom relief and advice, Vicks has everything you need when youre sick to make every day and night worth holding onto.

P&Gs 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 AmericaP&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 teambuilding 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 Obamas 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 Childrens 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 Childrens 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 tetanusa 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 retailersalong with more than 100 million shoppers annuallyto 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 worlds 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 dont 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 enoughusing 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. Thats 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 Citys 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 Escudos endorsement by the Mexican Red Crossmaking 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 programs 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&Gs 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 effortsboth immediate and long-termare 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 programssuch as Childrens Safe Drinking Water, Always/Tampax Protecting Futures, and Hope Schoolsa 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 programs 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 programs 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 Loge 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 Companys 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 C ur. One branch of the association is the Restos-Bbs du C ur, 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 Bbs du C ur 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&Gs 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 Childrens 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 productsbrands 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&Gs 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&Gs 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 childrens 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 Targwek, 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&Gs 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 childrens 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 educationphysical 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 Childrens 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&Gs 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:
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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&Gs 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 Strategyimproving the lives of more consumers, in more parts of the world, more completelyrequires us to continue to grow responsibly. And it also requires us to accelerate our commitment to helping solve some of the worlds 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.

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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

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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-toenergy, 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 worlds 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 CO2 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 CO2. 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-toenergy, 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).