2020 Annual Report FINANCIAL HIGHLIGHTS UNAUDITED 2020 NET SALES BY BUSINESS SEGMENT 3 Amounts in billions, except per share amounts 2020 2019 2018 2017 2016 Fabric & Home Care 33% Baby, Feminine Net Sales $71.0 $67.7 $66.8 $65.1 $65.3 & Family Care 26% Operating Income $15.7 $5.5 $13.4 $13.8 $13.3 Beauty 19% Net Earnings Health Care 13% $13.0 $3.9 $9.8 $15.3 $10.5 Attributable to P&G Grooming 9% Net Earnings Margin from Continuing 18.5% 5.9% 14.8% 15.7% 15.4% Operations Diluted Net Earnings per Common Share 2020 NET SALES BY GEOGRAPHIC REGION $4.96 $1.43 $3.67 $3.69 $3.49 from Continuing Operations 1 North America 4 47% Diluted Net Earnings $4.96 $1.43 $3.67 $5.59 $3.69 per Common Share 1 Europe 22% Asia Pacific 10% Core Earnings per $5.12 $4.52 $4.22 $3.92 $3.67 Share 2 Greater China 9% Latin America 6% Operating Cash Flow $17.4 $15.2 $14.9 $12.8 $15.4 India, Middle East Dividends per & Africa (IMEA) 6% $3.03 $2.90 $2.79 $2.70 $2.66 Common Share (1) Diluted net earnings per common share are calculated based on net earnings attributable to Procter & Gamble. (2) Core EPS is a measure of the Company’s diluted net earnings per common share from continuing operations adjusted for certain items not viewed as part of our sustainable results. Please see page 74 of the Annual Report for detail on the reconciling items. (3) These results exclude net sales in Corporate. (4) North America includes the United States, Canada and Puerto Rico. VARIOUS STATEMENTS IN THIS ANNUAL REPORT , including estimates, projections, objectives and expected results, 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 and are generally identified by the words “believe,” “expect,” “anticipate,” “intend,” “opportunity,” “plan,” “project,” “will,” “should,” “could,” “would,” “likely” and similar expressions. Forward-looking statements are based on current assumptions that are subject to risks and uncertainties that may cause actual results to differ materially from the forward-looking statements, including the risks and uncertainties discussed in Item 1A – Risk Factors of the Form 10-K/A included in this Annual Report. Such forward-looking statements speak only as of the date they are made, and we undertake no obligation to update or revise publicly any forward-looking statements, except as required by law. TABLE OF CONTENTS Letter to Shareowners i Measures Not Defined by U.S. GAAP 74 Stepping Up in Response to COVID-19 iii Board of Directors 76 P&G’s Integrated Growth Strategy v Company Leadership 77 Citizenship at P&G xiv Company and Shareholder Information 78 Form 10-K xvii Recognitions and Awards Inside Back Cover Dear Shareowners, Fiscal year 2020 will go down as one of the most challenging years for P&G in our 183-year history. Despite numerous issues presented by the global COVID-19 pandemic, P&G people delivered strong results, meeting or exceeding our financial goals for the year with 6% organic sales growth and 13% core earnings per share growth. Before I go into more detail on our fiscal year 2020 DAVID S. TAYLOR results, I want to briefly outline the immediate priorities Chairman of the Board, President we established to carry us through the pandemic: and Chief Executive Officer • Protect the health and well-being of P&G people; • Maximize the availability of our products that help people and their families with their health, P&G Chairman, President and CEO David Taylor visits our Lima, hygiene and cleaning needs, which have never Ohio plant, one of several global locations where we began been greater; producing hand sanitizer for use in our facilities to help us operate safely, and to share with hospitals, health care facilities • Support the communities, relief agencies and and relief organizations. people on the front lines of this global pandemic. Taken together, these priorities ensure P&G is there for the employees, consumers and communities who have always been there for us, and they remain in place today. Fiscal Year 2020 Results Importantly, they work hand-in-hand with our strategic Last fiscal year, we grew markets and increased choices — a portfolio of daily use brands; meaningful household penetration in multiple categories — driving superiority across products, packages, communication, top-line growth, bottom-line growth and market share. retail execution and value; driving productivity in Organic sales grew 6%. On a two-year stacked basis, everything we do; constructive disruption across all organic sales growth has accelerated from 3% (across areas of our business; and a more empowered, agile fiscal years 17 and 18) to 6% (across fiscal years 18 and and accountable organization. 19) to 11% (across fiscal years 19 and 20) indicating the This strategy is unwavering, and it’s delivering strong, underlying strength of our brands and our strategy balanced growth and value creation. which are driving our business. +6% +13% 114% ORGANIC SALES CORE EPS ADJUSTED FREE CASH GROWTH GROWTH FLOW PRODUCTIVITY ii • The Procter & Gamble Company On the bottom line, core earnings per share were Credit for these results goes to all of the employees up 13% versus the prior year. On a constant currency of P&G, who have demonstrated incredible creativity, basis, core earnings per share were up 17%. All-in agility and commitment to serving consumers, GAAP earnings per share were up significantly versus customers and communities every day during these a year ago because of last year’s one-time, non-cash unprecedented circumstances. accounting charge to reduce the carrying value of the Gillette Shave Care business. Stepping Up During Adjusted free cash flow productivity was 114%. It’s important to note that we were at 6% organic sales the Pandemic growth, 18% core earnings per share growth, and 96% P&G people have stepped up to deliver on each of adjusted free cash flow productivity for the first half the priorities that guide our actions and our choices of the fiscal year, before the impact of the pandemic. in this crisis period. We maintained this strong momentum in the second We’re protecting P&G people and the safety of our work half of fiscal year 2020, overcoming many challenges, environments. This is our top priority. We moved quickly including the lockdown in China, channel shutdowns, and early based on learnings from our experience in operational challenges to safely staff our facilities and China. With this information and guidance from medical source materials necessary to maintain production, professionals, we put robust safety measures in place and a significant increase in production in some for all employees working at a P&G location, including categories to serve heightened consumer cleaning, temperature scans, increased disinfection, shift health and hygiene needs. rotations, distancing and the use of masks. Nine of 10 product categories grew organic sales. Home Care and Personal Health Care grew in the teens. Family Care grew double digits. Fabric Care and Feminine Care grew high single digits. Hair Care, Skin & Personal Care, and Oral Care grew mid-single digits. Grooming grew 1%, and Baby Care was down 1%. We delivered very strong results in our two largest and most profitable markets. The U.S. grew organic sales 10% for the year, including 5% growth in the first half of the fiscal year. Greater China grew 8%, including 13% organic growth in the first half of the fiscal year. E-commerce organic sales grew 40% and are now over 10% of our total Company sales. We returned $15.2 billion of value to shareowners through a combination of share repurchases and dividends. In April, we announced a 6% increase in the dividend. This was the 64th consecutive annual increase and the 130th consecutive year in which P&G has paid a dividend. Summing up, we delivered or over-delivered on each We quickly pivoted P&G’s global disaster relief program to focus on of our going-in targets for the year — organic sales the needs created by COVID-19. Millions of P&G products are being growth, core EPS growth, free cash flow productivity donated from more than 50 of our brands in more than 55 countries, and cash returned to shareowners. We built strong helping ensure that families have basic access to the everyday essentials many of us take for granted. We’re also partnering with momentum heading into the COVID-19 crisis, and and supporting more than 200 NGOs, agencies and some of the arguably built this further during the challenging world’s leading relief organizations, providing help to nursing second half of the fiscal year. homes, shelters, community groups, food banks and more. The Procter & Gamble Company • iii STEPPING UP AS A FORCE FOR GOOD IN RESPONSE TO COVID-19 Our people can work confidently We’re bringing trusted brands P&G has a long history of knowing that P&G stands that help people clean, take care supporting those in need, and behind them, with robust of their personal health and we’re supporting the communities, safety measures we constantly hygiene, and create healthy relief agencies and people on the evaluate and update. homes for their families. front lines of this global pandemic. PROTECTING SERVING SUPPORTING P&G PEOPLE CONSUMERS COMMUNITIES • Serving consumers and supporting • Maximizing the availability of products • Using our R&D, engineering and communities starts with ensuring our that help people and their families manufacturing expertise to make employees are safe and protected, with with their health, hygiene and cleaning critically needed non-medical face robust safety measures that include needs, which have never been greater, masks, face shields and hand sanitizer comprehensive cleaning of work areas, by running extra shifts, putting idled to support our operations and to share temperature scans, hand sanitizers and equipment back into service quickly, with hospitals, health care facilities face masks, shift rotations, physical partnering with suppliers, and constantly and relief organizations.