SMART Company Brief the PROCTER & GAMBLE COMPANY

SMART Company Brief For:

THE PROCTER & GAMBLE COMPANY 1 Procter And Gamble Plz, Cincinnati, OH, 45202-3393 www.pg.com

2 SMART About the Company

3 SMART About their Industry

4 SMART About their Performance

5 SMART About Your Est. Value

6 Appendices

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1 / 13 COMPANY OVERVIEW KEY FIGURES

The Procter & Gamble Company (P&G) boasts Revenue Employees Gross Profit dozens of billion-dollar brands for home and 65.1B 95,000 32.5B health. The world's largest maker of consumer packaged goods divides its business into five global segments that comprise its vast portfolio ENHANCED DATA of hair, skin and personal, oral, family, feminine, and baby care product lines. About two dozen of P&G's brands are billion-dollar sellers, including IT Spend SW Spend Always, Braun, Crest, Fusion, Gillette, Head & Shoulders, Mach3, Olay, Oral-B, and Pantene, 620.3M 111M as well as Bounty, Charmin, Dawn, Downy, Gain, Pampers, and Tide. Other major brands include Febreze, Mr. Clean, Old Spice, and HW Spend Other Swiffer. In 2016 P&G sold a significant portion of its Beauty segment's products to beauty 111M 6.5M products company Coty for $11.4 billion.

LEADERSHIP

Erica Heskamp 3 PL LOGISTICS SOURCING MANAGER, NORTH AMERICA DISTRIBUTION

Lee Hall 5A PROCESS PLANNER

Marty Vanderstelt A. MARKETING DIRECTOR, FEMININE CARE, CENTRAL, EASTERN, AND SOUTH EUROPE

Jimmy Ryan HEADLINES AA AND RECRUITING COORDINATOR

- Procter & Gamble Company (PG) Presents at Deutsche Bank dbAccess Global Consumer LOCATIONS Conference (Transcript) Fayetteville, AR - Retirement Strategies: Is It Time To Rebuy Phoenix, AZ Procter & Gamble? Anaheim, CA Palm Desert, CA Roseville, CA - Lanny's Recent Stock Purchase - Procter & Venice, CA Gamble Washington, DC Albany, GA

2 / 13 FAST FACTS KEY FIGURES

Revenues (2016) - $792,210,274,154; Companies Employs Employees (2016) -811,100; 8,644 425,857 Annual Revenue Growth Rate (2016) - 5.40 %; CAGR 5Yr CAGR*, Estimated (2008 through 2016) - 0.88 %; 18% Revenues (2024) - $1,096,951,267,438; CAGR*, Estimated (2017 through 2024) - 4.13 %; INDUSTRY TRENDS Competitors - Johnson & Johnson, Procter & Gamble Co, Pfizer Inc, DowDupont Co., Merck & Co Inc, Gilead While the chemicals industry is Sciences Inc, AbbVie Inc, DuPont (E I du Pont de Nemours most definitely cyclical, gaining & Co), Amgen Inc, Eli Lilly and Company and losing ground with changes in the global economy, long-term trends point to increasing demand for many types of chemical products. INDUSTRY INDICATORS INDUSTRY CHALLENGES

America’s chemicals Declining demand for certain sector manufacturers are chemicals and lower production costs abroad even gaining considerable pushed some operations to advantage from the consolidate extremely low price of Changes in crude oil prices natural gas, an advantage directly affect the cost of that is likely to last for many production years. Demand for chemicals used in construction materials is anticipated to increase

HEADLINES

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3 / 13 COMPANY PEER COMPETITOR COMPARISON

RATIO WORST AVERAGE BEST PG

Current Ratio 0.91 (PG) 5.80 16.07 (BAYN) 0.91

Asset Turnover 0.30 (PFE) 38.24 111.08 (BAYN) 0.52

Cash % Revenue 6.22 (BAYN) 29.66 80.01 (JNJ) 30.17

Receivables % Revenue 75.96 (PFE) 34.58 0.14 (BAYN) 29.68

Revenue / Cash 71.13 (BAYN) 29.57 1.25 (JNJ) 3.31

Receivable Turnover 5.29 (PFE) 29.26 63.12 (BAYN) 13.50

Inventory Turnover 6.80 (PFE) 9.36 13.01 (PG) 13.01

COMPETITION TOP 4 MARKET SHARE

- Nestlé S.A. (NESN)

- Johnson & Johnson JNJ JNJ 71,890 ULVR 126,400 ULVR (JNJ) 55,538.4 168,832

- UNILEVER PLC PG NESN PG NESN 95,000 (ULVR) 88,098 65,058 328,000

- Pfizer Inc. (PFE) By Revenue By Employment

- SANOFI (SAN)

- L'OrÃ©al (OR)

- Koninklijke Philips N.V. (Euronext Amsterdam : PHIA)

- Henkel AG & Co. KGaA (HEN)

4 / 13 SAMPLE ONLY

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5 / 13 NOTES AREA

Customer's Pain

Key People

Customer's Initiatives

Customer's KPIs You Can Influence

Your Win Plan

6 / 13 APPENDIX

7 / 13 COMPLETE COMPANY OVERVIEW

The Procter & Gamble Company (P&G) boasts dozens of billion-dollar brands for home and health. The world's largest maker of consumer packaged goods divides its business into five global segments that comprise its vast portfolio of hair, skin and personal, oral, family, feminine, and baby care product lines. About two dozen of P&G's brands are billion-dollar sellers, including Always, Braun, Crest, Fusion, Gillette, Head & Shoulders, Mach3, Olay, Oral-B, and Pantene, as well as Bounty, Charmin, Dawn, Downy, Gain, Pampers, and Tide. Other major brands include Febreze, Mr. Clean, Old Spice, and Swiffer. In 2016 P&G sold a significant portion of its Beauty segment's products to beauty products company Coty for $11.4 billion.

Operations

P&G operates its business globally through five segments: Beauty; Grooming; Health Care; Fabric Care and Home Care; and Baby, Feminine, and Family Care. In 2016, the company sold a large portion (some 40 brands) of its Beauty segment products to Coty.

The Fabric Care and Home Care segment is its largest (32% of 2016 sales). It is comprised of laundry detergents, additives, and fabric enhancers, as well as dishwashing liquids and detergents, surface cleaners and air fresheners, batteries, and pet care. Brands within this segment include Ariel, Downy, Gain, Tide, Cascade, Dawn, Febreze, Mr. Clean, and Swiffer.

Baby, Feminine, Family Care segment (28%) makes and markets diapers, baby wipes, feminine care, and paper products under the popular Pampers, Luvs, Tampax, Always, Bounty, and Charmin brands.

The company's Beauty segment (18% of net sales in 2016) makes and markets a variety of products, including deodorants, cosmetics, and skin care. It features Olay, the world's top facial skin care brand along with the Pantene and Head & Shoulders hair care brands. Other brands include Old Spice and Safeguard deodorants, among other brands.

Through its long-established Gillette franchise, which boasts the Fusion, Mach3, Prestobarba, and Venus brands, P&G's Grooming segment (10%) also offers electronic hair removal devices, such as electric razors and epilators, sell under the Braun name worldwide. P&G's Health Care segment (11%) includes oral care and personal health care products under the Crest, Oral-B, Vicks, and Prilosec product lines. Geographic Reach

P&G has operations in some 70 countries worldwide. It generates about 44% of its revenue from its business in the US and Canada. P&G's remaining revenue comes from Western Europe, Asia, Latin America, and Central & Eastern Europe/Middle East/Africa (CEEMEA).

To support its US operations, P&G owns and operates 24 manufacturing sites across more than 18 states and territories. Additionally, it also owns and operates about 100 production facilities in 38 other countries. Typically, its domestic and international manufacturing sites produce products for multiple P&G businesses.

Sales and Marketing

Along with its vast stable of brands, P&G each year has invested mightily in advertising its products. It spent $7.2 billion on advertising expenses in 2016, compared to $7.2 billion in 2015 and $7.9 billion in 2014. However in mid-2017, P&G updated this strategy dramatically, stating it will cut a whopping $2 billion in marketing spending over five years. This total includes $1 billion or more in media and around $500 million in agency fees.

P&G sells its products worldwide through mass merchandisers, grocery stores, membership club stores, drug stores, department stores, salons, e-commerce and high-frequency stores, and neighborhood stores that serve consumers in developing markets. Meanwhile, the consumer products company continues to strengthen its footprint in other sales channels, such as pharmacies, perfumeries, and e-commerce. Strategy

P&G has turned to its highest revenue-generating products for the most growth potential. Even though P&G holds market-leading positions in several product categories, the company has been focusing resources on its roughly 40 best-selling brands. Best sellers are those that generate more than $500 million annually and represent some 85% of sales; brands that fall below this metric are typically sold off. Along with continuing to grow its core brands and categories through innovation, P&G is looking to build its business by catering to unserved and underserved consumers. In a massive $11.4 billion deal in 2016, P&G sold 40 of its fragrance, cosmetics, salon and retail hair products to beauty products company Coty. Higher profile brands involved in the sale, which were part of the company's Beauty segment portfolio, included Wella shampoos and Clairol hair care products, CoverGirl and Max factor cosmetics, and Gucci, Hugo Boss, Lacoste, and Escada luxury fragrances.

In 2016, P&G completed the divestiture of its batteries business to Berkshire Hathaway via a split transaction, in which the company exchanged the Duracell Company for $1.8 billion in cash. The divestiture was part of P&G's portfolio strengthening and simplification plans to streamline the business and focus more on its biggest brands such as Tide, Pampers, and Oral-B.

8 / 13 ASSETS 2017 2016 2015 2014 2013

Cash 5569 7102 6836 8558 5947

Net Receivables 4594 4373 4568 6386 6508

Inventories 4624 4373 4568 6386 6508

Other Current Assets N/A 4373 4568 6386 6508

Total Current Assets 26494 33782 29646 31617 23990

Net Fixed Assets 19893 19385 19655 22304 21666

Other Noncurrent Assets 5133 5092 10562 5798 6847

Total Assets 120406 127136 129495 144266 139263

LIABILITIES 2017 2016 2015 2014 2013

Accounts Payable 9632 9325 8138 8461 8777

Short Term Debt 13554 11653 12018 15606 12432

Other Current Liabilities 1994 4645 4007 3231 2527

Total Current Liabilities 30210 30770 29790 33726 30037

Long Term Debt 18038 18945 18327 19811 19111

Other Noncurrent Liabilities 870 804 755 802 837

Total Liabilities 64628 69153 66445 74290 70554

EQUITY 2017 2016 2015 2014 2013

Preferred Stock Equity 1006 1038 1077 1111 1137

Common Stock Equity 4009 4009 4009 4009 4009

Total Equity 55184 57341 62419 69214 68064

Shares Outstanding 2553.3 2668 2714.5 2710.8 2742.3

CASH FLOW 2017 2016 2015 2014 2013

Cash And Cash Equivalents Beginning Of Year 7102 6836 8558 5947 4436

Net Cash From Operating Activities 12753 15435 14608 13958 14873

Net Cash From Investing Activities -5689 -5575 -2890 -4100 -6295

Net Cash From Financing Activities -8568 -9213 -13019 -7279 -7071

Cash And Cash Equivalents Increase Or Decrease -1504 647 -1301 2579 1507

Cash And Cash Equivalents End Of Year 5569 7102 6836 8558 5947

Capital Expenditure -3384 -3314 -3736 -3848 -4008

9 / 13 PEER COMPETITIVE COMPARISON

RATIO WORST AVERAGE BEST PG

Current Ratio 0.91 (PG) 5.80 16.07 (BAYN) 0.91

Asset Turnover 0.30 (PFE) 38.24 111.08 (BAYN) 0.52

Cash % Revenue 6.22 (BAYN) 29.66 80.01 (JNJ) 30.17

Receivables % Revenue 75.96 (PFE) 34.58 0.14 (BAYN) 29.68

Revenue / Cash 71.13 (BAYN) 29.57 1.25 (JNJ) 3.31

Receivable Turnover 5.29 (PFE) 29.26 63.12 (BAYN) 13.50

Inventory Turnover 6.80 (PFE) 9.36 13.01 (PG) 13.01

Receivables / Day Sales 69.58 (PFE) 53.94 27.67 (PG) 27.67

Revenue / Assets 0.08 (PFE) 0.11 0.14 (PG) 0.14

# Days COGS In Inventory 251.50 (PFE) 148.83 56.00 (PG) 56.00

Inventory % Revenue 60.18 (PFE) 46.27 30.16 (PG) 30.16

Liabilities % Assets 64.70 (PFE) 57.52 52.47 (JNJ) 55.38

Free Cash Flow / Share 2.64 (PFE) 5.31 8.05 (JNJ) 5.24

Return On Assets 5.64 (PFE) 9.54 12.28 (PG) 12.28

Gross Profit Margin 49.90 (PG) 65.59 78.66 (PFE) 49.90

Operating Income as a Percent of Revenue 49.88 (PG) 65.46 76.66 (PFE) 49.88

10 / 13 ENCHANCED IT DATA (ESTIMATED)

NAME VALUE

Total IT Spend (M) 620.3405

Security Spend (M) 45.7093

IT Management Spend (M) 58.7691

Research and Development Spend (M) 45.7093

Continuity and Disaster Recovery (M) 39.1794

Development Spend (M) 91.4186

Maintenance Spend (M) 65.299

Information Management and Storage (M) 71.8289

Server Operations (M) 52.2392

Desktop Operations (M) 52.2392

Network Operations (M) 65.299

Website Operations (M) 32.6495

Full-time Staff Salary (M) 169.7774

Contractors (M) 45.7093

Software Costs (M) 111.0083

Hardware Infrastructure (M) 111.0083

Network Services (M) 52.2392

Consulting and Integration (M) 39.1794

Third Party Outsourcing (M) 39.1794

AAS Offerings (M) 45.7093

Other (M) 6.5299

11 / 13 NAME TITLE

Erica Heskamp 3 Pl Logistics Sourcing Manager, North America Distribution

Lee Hall 5a Process Planner

Marty Vanderstelt A. Marketing Director, Feminine Care, Central, Eastern, And South Europe

Jimmy Ryan Aa And Recruiting Coordinator

Jamie Irvinschaefer Aandt

Christina Morazzani Abm

David Walker Abm Cascade

Renee Buchanan West Abm Charmin

Renee West Abm Charmin

Maria Volika Abm Direct & Consumer And Digital Marketing

Sana Khan Abm Shopper Marketing

Michelle Swiderski Academic Manager

Chris Stott Account Controller

Luc Clarysse Account Director

Irene Vanderstelt Account Director Herbal Essences Aussie

Ted Cronin Account Executive

Michelle Raffay Account Executive

Anne Martens Account Executive

Scott Palmer Account Executive

Brittany Sides Account Executive