2015 Annual Report CONTENTS Letter to Shareowners ................................................................. 1 P&G — A Company of Leading Brands .......................................... 6 Global Reach with a Human Touch .............................................. 8 Form 10-K Index .......................................................................... 9 Form 10-K ................................................................................. 11 Measures Not Defined by U.S. GAAP ......................................... 40 Global Company Leadership ...................................................... 81 Board of Directors ..................................................................... 82 Company and Shareowner Information ..................................... 83 Recognition ............................................................................... 84 FINANCIAL HIGHLIGHTS (unaudited) Amounts in millions, except per share amounts 2015 (1) 2014 2013 2012 2011 Net Sales $76,279 $80,510 $80,116 $79,545 $76,982 Operating Income 11,790 14,740 13,817 12,611 14,779 Net Earnings Attributable to Procter & Gamble 7,036 11,643 11,312 10,756 11,797 Net Earnings Margin from Continuing Operations 11.7% 14.1% 13.7% 11.2% 14.5% Diluted Net Earnings per Common Share from Continuing Operations (2) $ 3.06 $ 3.86 $ 3.71 $ 2.97 $ 3.69 Diluted Net Earnings per Common Share (2) 2.44 4.01 3.86 3.66 3.93 Dividends per Common Share 2.59 2.45 2.29 2.14 1.97 NET SALES OPERATING CASH FLOW DILUTED NET EARNINGS ($ billions) ($ billions) (per common share) 2015 NET SALES BY BUSINESS SEGMENT(3) BY GEOGRAPHIC REGION BY MARKET MATURITY 10% Baby, Feminine 8% Asia Pacific Developed and Family Care Europe Developing 10% 27% Beauty, Hair and 26% Greater China 38% Personal Care 40% India, Middle East Fabric Care and and Africa (IMEA) Home Care 62% 29% Latin America 24% 8% Health Care North America Grooming 10% 8% 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 on pages 13–17 of this Annual Report. We undertake no obligation to update or revise publicly any forward-looking statements. (1) Our 2015 net sales were negatively impacted by approximately $4.8 billion of unfavorable foreign exchange fluctuation compared to 2014. Net earnings attributable to Procter & Gamble in 2015 were negatively impacted by approximately $1.4 billion due to foreign exchange, $2.1 billion of non-cash impairment charges related to the Batteries business reported in discontinued operations and a $2.1 billion charge related to a change in accounting for our Venezuelan operations from consolidation to the cost method. These impacts are discussed more fully later in this Annual Report. (2) Diluted net earnings per share are calculated based on net earnings attributable to Procter & Gamble. (3) These results exclude net sales in Corporate. Brand names referenced in this Annual Report are trademarks of The Procter & Gamble Company or one of its subsidiaries. All other brand names are trademarks of their respective owners. A.G. LAFLEY Chairman of the Board, President and Chief Executive Officer Dear Shareowners, Fiscal 2015 was a tough year due to weakening developing market economics and the unprecedented negative impact of foreign exchange. Because we are a dollar-denominated company headquartered in the U.S., and given the reality of the geographic footprint of our business — with significant exposures in markets such as Brazil, Japan and Russia — Company worldwide sales and profits were negatively impacted by foreign exchange. All-in sales were down 5%, including the negative 6-point impact of foreign exchange. Organic sales grew 1%. Organic sales for our 10 core categories grew 2%, about one point below underlying market growth. On an all-in GAAP basis, earnings per share were $2.44, down due to significant one-time charges and restructuring costs. Core earnings per share were $4.02, down 2%, including a 13-point, $1.5 billion negative impact of foreign exchange. On a constant currency basis, core earnings per share were up 11%. 2 The Procter & Gamble Company Despite the sales and earnings pressures, we continued to generate strong adjusted free cash flow of $11.6 billion, increased the dividend for the 59th year in a row, and returned $11.9 billion to shareowners — $7.3 billion in dividends and $4.6 billion in share repurchase. Over the past five years, we’ve returned $60 billion to shareowners — $12 billion a year on average. We have announced our intention to return up to $70 billion to shareowners over the next four years through a combination of dividend payments, share retirement and share repurchase. Building a Better Company This year, P&G will be 178 years old. A company does not last for that long if its management is not willing to change anything and everything, except for its In response to consumer demand, we broadened our U.S. portfolio with Tide PODS purpose and core values, to serve consumers and create value for shareowners. Plus Febreze, Tide PODS Free & Gentle and We are leading the most comprehensive series of changes in the Company’s Tide PODS Original Scent. These offerings continue to fuel the Unit Dose segment, where history. We are putting the strategies and capabilities in place to transform P&G P&G’s global retail sales are over $1.5 billion. into a faster-growing, more profitable and far simpler company. We are putting the strategies and capabilities in place to transform P&G into a faster-growing, more profitable and far simpler company. We are recommitting ourselves to putting the consumer at the center of everything we do. The purpose of any business is to create a consumer and to serve that consumer better than anyone else can. That’s why we’re investing in capabilities to understand consumer needs better than ever. That’s why we’re investing in creating and building brands that consumers prefer. And that’s why we’re investing in innovative products that deliver better performance, quality, experiences and value. As we rededicate ourselves to the fundamentals of consumer-preferred brands and products, what has changed at P&G? What’s different, and how are we building a better P&G? A More Focused Business Portfolio We conducted a comprehensive diagnosis to answer a fundamental strategic question: Which businesses should P&G be in? We chose 10 business categories where P&G understands consumers and has leading market positions, strong brands, differentiated products and business models proven to grow and create value. These 10 categories have been growing faster, and their operating margins are higher than those of the total Company. Their sales and profits are highly concentrated in the top consumer markets around the world. Yet they Power Oral Care is an important P&G have significant growth opportunity in big, developed countries such as the U.S., business with annual sales over $1 billion, including our most recent innovation — the first power toothbrush with Bluetooth® technology. Current household penetration is low, and we have significant growth potential using our proven model to grow penetration. The Procter & Gamble Company 3 Germany, the U.K. and Japan, where household penetration rates can still be improved, and in developing markets such as China, Brazil, India, Russia, Turkey and Mexico, where P&G has been improving its strategic position. They have played and will continue to play to P&G’s core strengths: consumer understanding, innovation, productivity, branding, go-to-market execution and leveraging Company scale and scope. After decades of category extension and geographic expansion to get bigger, we are narrowing our focus to these 10 categories to get better. Ultimately, a more focused P&G will lead to becoming the best-performing company in the consumer products industry — winning with consumers and delivering the most consistent and reliable performance in our chosen categories, countries, channels and customers. Committed to Growth and Value Creation SK-II, P&G’s billion-dollar prestige skin care brand, has introduced two new essentials: SK-II Mid-Day Miracle Essence and SK-II At P&G, we win with shoppers and consumers by providing consumer-preferred Mid-Night Miracle Essence, to deliver a brands and products that become leading value creators in their categories. boost of crystal-clear skin anytime, anywhere, The best measure of winning is Operating Total Shareholder Return (TSR). We like and strengthen the skin barrier over time. Operating TSR because it is a single, coordinated and integrated measure of growth and value creation that brings together winning with shoppers and consumers to deliver sales growth, gross and operating margin improvement, and asset efficiency. The foundational building block of Operating TSR is operating cash flow, and our strong cash flow performance for many years has enabled reinvestment