Procter & Gamble Presents at Barclays Global Consumer Staples Conference

Highlights Strong Results and Plan that is Working

Improvements in Portfolio, Cost and Productivity, Innovation, and
Organization and Culture are Driving Continued Growth and Shareholder
Value Creation

CINCINNATI–(BUSINESS WIRE)–The Procter & Gamble Company (NYSE:PG) today will highlight the strong
results and progress the Company is achieving through its winning
strategy at the Barclays Global Consumer Staples Conference.

David S. Taylor, Chairman of the Board, President and Chief Executive
Officer and Jon R. Moeller, Vice Chairman and Chief Financial Officer
will present today at 8:15 a.m. ET. A live audio webcast and replay is
available at

Additional materials regarding P&G Board and Management’s
recommendations for the 2017 Annual Meeting of Shareholders can be found

Highlights of the presentation will include:

  • P&G’s Plan is Working and Delivering Results: P&G delivered
    strong fiscal year 2017 results demonstrating the Company’s strategy
    and plan are working.

    • The Company met or exceeded its objectives despite slowing market
      growth and volatile currency and commodity environments around the

      • Achieved 2% organic sales growth— with gains driven by volume
        improvements, and accelerated organic sales growth by more
        than a percentage point in a market that decelerated by more
        than a percentage point.
      • Entered fiscal year 2017 targeting mid-single-digit core
        earnings per share growth, and exceeded this objective by
        delivering a 7% increase in core earnings per share versus
        last year, an 11% increase on a constant currency basis.
      • Achieved adjusted free cash flow productivity of 94%, against
        a 90% objective.
    • Increased both core gross and operating profit margins while
      continuing to make prudent investments in its brands to support
      sustainable long-term growth.
  • The P&G of Today is a Profoundly Different Company: As a
    result of portfolio transformation efforts, massive productivity
    improvements and organization and culture changes, the P&G of today
    has significantly enhanced growth and value creation opportunities,

    • Strengthened product portfolio over the past two years. Today P&G
      competes in ten core categories with leadership brands that offer
      meaningful benefits to consumers:

      • Divested, discontinued or consolidated more than 100 brands –
        while at the same time building the Company’s market
    • Delivered significant cost savings and productivity improvements:

      • Executed a $10 billion cost and cash productivity program –
        and making meaningful headway on the next $10 billion cost
        savings program
      • Reduced total roles by 32% including divestitures.
      • Improved profit per employee by 45%.
    • Strengthened organization design and culture to create a more
      focused, agile and accountable company:

      • Aligned P&G around one organizing principle – running the
        business by product category.
      • Created a culture of appropriate risk-taking, and aligned
        incentives at a greater level of granularity to better match
        responsibilities and to increase accountability.
  • P&G is Raising the Bar to a New Standard of Excellence: To
    meet consumer demand and create competitive advantage, P&G is raising
    the bar to a new standard of excellence with superiority across
    products, packaging, brand communications, in-store and online
    execution, and value.

    • Examples of noticeably superior product innovation include:

      • Tide PODS and Gain Flings which have driven 90% of U.S.
        laundry detergent category growth since they were introduced.
      • Always Radiant which is meeting the higher standard of
        excellence as P&G’s best performing feminine pad, driving
        market growth of the super premium segment to +7%.
      • Scent beads, including Unstopables, are the fastest growing
        segment in the Fabric Care category, and P&G’s scent bead
        offerings are growing over 30%.
      • Always #Likeagirl Advertising has been viewed over 550 million
        times, generated over 25 billion impressions and won over 240
        industry awards since initially aired during Super Bowl 2015.
    • e-Commerce sales grew at roughly a 30% rate last fiscal year,
      significantly outpacing offline sales growth:

      • e-Commerce sales are over $3 billion dollars – larger than our
        top two peer competitors combined.
  • P&G has the Right Team and the Right Plan to Continue to Win: The
    Company’s ongoing transformation, led by the committed P&G team and
    supported by the P&G Board of Directors, is delivering results.

    • P&G’s ability to deliver on its financial goals has translated
      into value for shareholders:

      • Since the CEO transition on November 1, 2015, the P&G team has
        delivered total shareholder return (“TSR”) of 28% through
        August 18, 2017 – well above the vast majority of peers
        selected by Trian Fund Management (“Trian”) throughout that
        same time period1.
    • P&G has a rigorous selection criteria for Board membership, which
      has produced a highly diverse Board specifically designed to
      oversee the Company’s strategy and with expertise in key areas
      that P&G needs to continue to win:

      • Diverse team of Directors who bring a wealth of experience in
        running and transforming large global enterprises, as well as
        in other areas that are key to the Company’s long-term
        strategic priorities, like digital, ecommerce, and retail.
      • The Board regularly reviews the skills and abilities of its
        Directors to make sure that the Board is appropriately
        equipped to provide the necessary oversight to the Company.

1 The peers selected by Trian in its July 17, 2017
Introductory Presentation are as follows: Beiersdorf, Church & Dwight,
Clorox, Colgate-Palmolive, Edgewell Personal Care, Henkel,
Kimberly-Clark, L’Oreal, Reckitt Benckiser, Unilever. Source: Market
data as of August 18, 2017. The TSR for “P&G Peers Per Trian” is a
simple average, which follows the same methodology utilized by Trian in
its measurement of the same peer constituency in its presentation filed
with the SEC on July 17, 2017.

The P&G Board of Directors and management team remind shareholders that
they face an important decision regarding the future of their investment
in P&G. Trian Fund Management, a New York hedge fund, has nominated
Nelson Peltz to stand for election to the P&G Board at the Company’s
upcoming Annual Meeting of Shareholders on October 10, 2017.
Shareholders are being asked to choose between a Board and management
team that are successfully executing a proven plan to build a better and
more valuable company, and Mr. Peltz, who P&G believes would derail the
work that is delivering returns to all P&G shareholders.

P&G strongly recommends that shareholders vote to support the P&G Board
by voting the BLUE Proxy Card “FOR” ALL P&G highly qualified
Director nominees.

About Procter & Gamble

P&G serves consumers around the world with one of the strongest
portfolios of trusted, quality, leadership brands, including Always®,
Ambi Pur®, Ariel®, Bounty®, Charmin®, Crest®, Dawn®, Downy®, Fairy®,
Febreze®, Gain®, Gillette®, Head & Shoulders®, Lenor®, Olay®, Oral-B®,
Pampers®, Pantene®, SK-II®, Tide®, Vicks®, and Whisper®. The P&G
community includes operations in approximately 70 countries worldwide.
Please visit
for the latest news and information about P&G and its brands.

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,” “expect,” “anticipate,” “estimate,” “intend,”
“strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,”
“would,” “will be,” “will continue,” “will likely result,” and similar
expressions. Forward-looking statements are based on current
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 risks, including foreign currency fluctuations,
currency exchange or pricing controls and localized volatility; (2) the
ability to successfully manage local, regional or global economic
volatility, including reduced market growth rates, and to generate
sufficient income and cash flow to allow the Company to affect the
expected share repurchases and dividend payments; (3) the ability to
manage disruptions in credit markets or changes to our credit rating;
(4) the ability to maintain key manufacturing and supply arrangements
(including execution of supply chain optimizations, and sole supplier
and sole manufacturing plant arrangements) and to manage disruption of
business due to factors outside of our control, such as natural
disasters and acts of war or terrorism; (5) the ability to successfully
manage cost fluctuations and pressures, including prices of commodity
and raw materials, and costs of labor, transportation, energy, pension
and healthcare; (6) the ability to stay on the leading edge of
innovation, obtain necessary intellectual property protections and
successfully respond to changing consumer habits and technological
advances attained by, and patents granted to, competitors; (7) the
ability to compete with our local and global competitors in new and
existing sales channels, including by successfully responding to
competitive factors such as prices, promotional incentives and trade
terms for products; (8) the ability to manage and maintain key customer
relationships; (9) the ability to protect our reputation and brand
equity by successfully managing real or perceived issues, including
concerns about safety, quality, ingredients, efficacy or similar matters
that may arise; (10) the ability to successfully manage the financial,
legal, reputational and operational risk associated with third party
relationships, such as our suppliers, distributors, contractors and
external business partners; (11) the ability to rely on and maintain key
company and third party information technology systems, networks and
services, and maintain the security and functionality of such systems,
networks and services and the data contained therein; (12) the ability
to successfully manage uncertainties related to changing political
conditions (including the United Kingdom’s decision to leave the
European Union) and potential implications such as exchange rate
fluctuations and market contraction; (13) the ability to successfully
manage regulatory and legal requirements and matters (including, without
limitation, those laws and regulations involving product liability,
intellectual property, antitrust, privacy, tax, environmental, and
accounting and financial reporting) and to resolve pending matters
within current estimates; (14) the ability to manage changes in
applicable tax laws and regulations including maintaining our intended
tax treatment of divestiture transactions; (15) the ability to
successfully manage our ongoing acquisition, divestiture and joint
venture activities, in each case to achieve the Company’s overall
business strategy and financial objectives, without impacting the
delivery of base business objectives; and (16) the ability to
successfully achieve productivity improvements and cost savings and
manage ongoing organizational changes, while successfully identifying,
developing and retaining key employees, including in key growth markets
where the availability of skilled or experienced employees may be
limited. For additional information concerning factors that could cause
actual results and events to differ materially from those projected
herein, please refer to our most recent 10-K, 10-Q and 8-K reports.

Important Additional Information and Where to Find It

The Company has filed a definitive proxy statement on Schedule 14A and
form of associated BLUE Proxy Card with the Securities and Exchange
Commission (“SEC”) in connection with the solicitation of proxies for
its 2017 Annual Meeting of Shareholders (the “Definitive Proxy
Statement”). The Company, its directors and certain of its executive
officers will be participants in the solicitation of proxies from
shareholders in respect of the 2017 Annual Meeting. Information
regarding the names of the Company’s directors and executive officers
and their respective interests in the Company by security holdings or
otherwise is set forth in the Definitive Proxy Statement. Details
concerning the nominees of the Company’s Board of Directors for election
at the 2017 Annual Meeting are included in the Definitive Proxy
copy of the Definitive Proxy Statement and other relevant documents that
the Company files with the SEC from the SEC’s website at
or the Company’s website at
as soon as reasonably practicable after such materials are
electronically filed with, or furnished to, the SEC.

Non-GAAP Reconciliation

This release contains certain non-GAAP measurements that management
believes are meaningful to investors because they provide useful
perspective on underlying business trends (i.e. trends excluding
non-recurring or unusual items) and results, provide a supplemental
measure of year-on-year results, and provide a view of our business
results through the eyes of management. These measures are also a factor
in determining senior management’s at-risk compensation. These non-GAAP
measures are not intended to be considered in place of the related GAAP
measure and may not be the same as similar measures used by other
companies. This data should be read in conjunction with previously
published company reports on Forms 10-K, 10-Q, and 8-K, which are
available on
under Financial Reporting. Reconciliations of non-GAAP measures to GAAP
are provided below.

The Core earnings measures included in the following reconciliation
tables refer to the equivalent GAAP measures adjusted as applicable for
the following items:

  • Incremental restructuring: The Company has had and continues to have
    an ongoing level of restructuring activities. Such activities have
    resulted in ongoing annual restructuring related charges of
    approximately $250 – $500 million before tax. Beginning in 2012
    Procter & Gamble began a $10 billion strategic productivity and cost
    savings initiative that includes incremental restructuring activities.
    In 2017, the company announced elements of an additional multi-year
    productivity and cost savings plan. These plans result in incremental
    restructuring charges to accelerate productivity efforts and cost
    savings. The adjustment to Core earnings includes only the
    restructuring costs above what we believe are the normal recurring
    level of restructuring costs.
  • Early debt extinguishment charges: During the three months ended
    December 31, 2016, the Company recorded a charge of $345 million after
    tax due to the early extinguishment of certain long-term debt. This
    charge represents the difference between the reacquisition price and
    the par value of the debt extinguished. Management does not view this
    charge as indicative of the Company’s operating performance or
    underlying business results.

We do not view the above items to be part of our sustainable results,
and their exclusion from core earnings measures provides a more
comparable measure of year-on-year results.

Organic sales growth: Organic sales growth
is a non-GAAP measure of sales growth excluding the impacts of
acquisitions, divestitures and foreign exchange from year-over-year

Core EPS and currency-neutral Core EPS:
Core earnings per share, or Core EPS, is a measure of the Company’s
diluted net earnings per share from continuing operations adjusted as
indicated. Currency-neutral Core EPS is a measure of the Company’s Core
EPS excluding the incremental current year impact of foreign exchange.

Adjusted free cash flow: Adjusted free cash
flow is defined as operating cash flow less capital spending and
excluding tax payments related to the Beauty Brands divestiture, which
are non-recurring and not considered indicative of underlying cash flow
performance. Adjusted free cash flow represents the cash that the
Company is able to generate after taking into account planned
maintenance and asset expansion. Management views adjusted free cash
flow as an important measure because it is one factor used in
determining the amount of cash available for dividends and discretionary

Adjusted free cash flow productivity:
Adjusted free cash flow productivity is defined as the ratio of adjusted
free cash flow to net earnings excluding the loss on early debt
extinguishment and gain on the sale of the Beauty Brands, which are
non-recurring and not considered indicative of underlying earnings
performance. Management views adjusted free cash flow productivity as a
useful measure to help investors understand P&G’s ability to generate
cash. Adjusted free cash flow productivity is used by management in
making operating decisions, allocating financial resources and for
budget planning purposes. The Company’s long-term target is to generate
annual adjusted free cash flow productivity at or above 90 percent.

Organic sales growth:

    Foreign   Acquisition/   Organic
Net Sales Exchange Divestiture Sales
Total Company   Growth   Impact   Impact*   Growth
FY 2017   -%   2%   -%   2%

*Acquisition/Divestiture Impact includes mix impacts of acquired and
divested businesses and rounding impacts necessary to reconcile net
sales to organic sales.

Core EPS and currency-neutral Core EPS:

  Twelve Months Ended
June 30
2017   2016
Diluted Net Earnings Per Share from Continuing Operations $3.69 $3.49
Incremental Restructuring 0.10 0.18
Early Debt Extinguishment Charges 0.13
Core EPS $3.92 $3.67
Percentage change vs. prior period 7%
Currency Impact to Earnings 0.15
Currency-Neutral Core EPS $4.07
Percentage change vs. prior period Core EPS   11%    

Note – All reconciling items are presented net of tax. Tax effects are
calculated consistent with the nature of the underlying transaction.

Adjusted free cash flow (dollars in millions):

Twelve Months Ended June 30, 2017
Operating Cash   Capital   Free Cash   Cash Tax Payment –   Adjusted Free
Flow   Spending   Flow   Beauty Sale   Cash Flow
$12,753   $(3,384)   $9,369   $418   $9,787

Adjusted free cash flow productivity (dollars in

Twelve Months Ended June 30, 2017


      Gain on    



Loss on Early

Sale of


Free Cash













$9,787   $15,411   $345   $(5,335)   $10,421  



P&G Media:
Damon Jones, 513-983-0190
Investor Relations:
John Chevalier, 513-983-9974