Procter & GambleEarnings Release:Q4 FY 2016 Results  August 2, 2016 

 Business ResultsQ4 FY 2016 

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 Apr – Jun 16 (Q4 FY 16) ResultsCurrency Neutral Core EPS Growth*  * Restated for Batteries & Beauty category exits 

 Business SegmentsQ4 FY 2016 

 Apr – Jun 16 (Q4 FY 16) ResultsGrooming Segment   +4% Pricing, Flat MixOrganic Sales: Flat in Developed markets, h Double digits in Developing marketsGlobal value share declined 0.7 points versus year agoNet Earnings: Pricing and productivity improvements were partially offset by marketing investments and currency headwinds. 

 Apr – Jun 16 (Q4 FY 16) ResultsHealth Care Segment   +2% Pricing, +1% MixOrganic Sales: h High single digits in Developed markets, h High single digits in Developing marketsGlobal value share declined 0.4 points versus year agoNet Earnings: Strong volume growth, mix help, productivity improvements, and pricing were key drivers of earnings growth. 

 

 Apr – Jun16 (Q4 FY 16) ResultsFabric & Home Care Segment   -1% Pricing, -1% MixOrganic Sales: h Low single digits in Developed markets, i Low single digits in Developing marketsGlobal value share increased 0.1 versus year agoNet Earnings: Productivity improvements and lower commodity costs were more than offset by currency headwinds, marketing investments, and mix hurts.  

 

 Apr – Jun 16 (Q4 FY 16) ResultsBaby, Feminine & Family Care Segment   -2% Pricing, Flat MixOrganic Sales: Flat in Developed markets, h Low single digits in Developing marketsGlobal value share declined 0.7 points versus year agoNet Earnings: Productivity improvements, lower commodity costs and volume increases were more than offset by pricing, currency headwinds and marketing investments. 

 Category HighlightsQ4 FY 2016 

 Apr – Jun 16 (Q4 FY 16) ResultsBeauty Highlights  Hair Care organic sales were flat versus year ago. Developing markets were flat as low single digit organic sales growth in China and Russia were offset by declining volume and investments in other developing markets. Developed markets were flat as growth in Pantene and Head & Shoulders was offset by challenges on Herbal Essences and Vidal Sassoon. Skin & Personal Care organic sales were flat versus year ago. Developing markets were up high single digits driven by double-digit growth on SKII in China and Personal Care in Asia. Developed markets declined low single digits with growth in Personal Care offset by Olay related to the work in North America to streamline skus.   By Category  Organic Sales Growth IYA        Global  Developed  Developing  Hair Care  ~=  ~=  ~=  Skin & Personal Care  ~=  -  +   + represents growth above 1%, ~= represents growth of 1% to decline of 1%; - represents decline greater than1%. 

 Apr – Jun 16 (Q4 FY 16) ResultsGrooming Highlights  Grooming organic sales grew high single digits driven by pricing, growth from innovation including Fusion Flexball and Fusion ProShield and Braun. Developing market sales grew high double digits driven by premium innovation and price increases. Developed market sales were flat with growth behind the Fusion ProShield launch offset by competitive activity in the mid and value price tiers.  By Category  Organic Sales Growth IYA        Global  Developed  Developing  Grooming  +  ~=  +   + represents growth above 1%, ~= represents growth of 1% to decline of 1%; - represents decline greater than1%. 

 Apr – Jun 16 (Q4 FY 16) ResultsHealth Care Highlights  Oral Care organic sales were up high single digits versus year ago. Developed market sales increased high single digits driven by growth in paste and power toothbrushes. Developing markets increased high single digits with strong growth in China, Mexico and Brazil and across paste, manual brush and power toothbrushes.Personal Health Care organic sales increased high single digits related to a late cough and cold season and pricing.  By Category  Organic Sales Growth IYA        Global  Developed  Developing  Oral Care  +  +  +  Personal Health Care  +  +  +   + represents growth above 1%, ~= represents growth of 1% to decline of 1%; - represents decline greater than1%. 

 Apr – Jun 16 (Q4 FY 16) ResultsFabric & Home Care Highlights  Fabric Care organic sales were flat versus year ago. Developed markets increased mid-single digits driven by increased marketing support and strong innovation in the U.S, where Fabric Care value share grew more than half a point in the June quarter. Developing markets declined high single digits as price increases and new compact liquid detergent launches were more than offset by competitive activity and impacts from discontinuing less profitable product forms.Home Care organic sales grew mid-single digits versus year ago driven by strong innovation in the dish care business and benefits from pricing taken for devaluation.   + represents growth above 1%, ~= represents growth of 1% to decline of 1%; - represents decline greater than1%.  By Category  Organic Sales Growth IYA        Global  Developed  Developing  Fabric Care  ~=  +  -  Home Care  +  +  + 

 Apr – Jun 16 (Q4 FY 16) ResultsBaby, Feminine & Family Care Highlights  Baby Care organic sales increased low single digits versus year ago as strong growth on Pampers in the U.S was partially offset by challenges on Luvs and mixed results in Europe. In the U.S., Pampers value share was up over half a share point versus year ago behind premium innovation.Feminine Care organic sales grew mid-single digits versus year ago behind growth in innovation and prior year price increases in developing markets.Family Care organic sales declined mid-single digits as volume growth in the U.S. was more than offset by pricing investments and the decline in Mexico as we shift focus from unprofitable, low-tier products to profitable, premium-tier products.  By Category  Organic Sales Growth IYA        Global  Developed  Developing  Baby Care  +  ~=  +  Feminine Care  +  +  +  Family Care  -  -  -   + represents growth above 1%, ~= represents growth of 1% to decline of 1%; - represents decline greater than1%. 

 Business ResultsFiscal Year 2016 

 

 Fiscal Year 2016 ResultsConstant Currency Core EPS Growth*  * Restated for Batteries, Beauty category exits & Venezuela deconsolidation 

 Returning Value to Shareholders  $ billions  FY 2016  Dividends  7.4  Share Repurchase & Exchanges   8.2  Value to Shareholders  15.6  % of Adjusted Net Earnings  149% 

 FY 2017 Guidance 

 FY 2017 Guidance*Sales    FY ‘17  Organic Sales Growth  Around 2%  Currency & minor brand divestitures  ~1%  All-in Sales Growth  Around 1%  * Guidance assumes that Beauty businesses are accounted for as discontinued operations  Expecting organic sales growth of around 2%.Expect all-in sales growth to be about 1% versus fiscal 2016. 

 FY 2017 Guidance*Earnings Per Share    FY ‘17  Core EPS Growth  Up Mid-Single Digits  All-in EPS Growth  +45% to +55%  * Guidance assumes that Beauty businesses are accounted for as discontinued operations. All-in guidance includes a substantial gain estimate for the divestiture of 41 beauty brands to Coty Inc.   Expect Core EPS growth in the mid-single digitsAt current rates and prices, FX and commodities are a modest headwind to FY ’17 earnings.  

 FY 2017 GuidanceCash Generation & Usage  Adjusted Free Cash Flow Productivity: 90%+Capital Spending, % Sales: 5% to 5.5%Dividends: $7B+Share Repurchases/Exchanges*: ~$15B  * Combination of direct share repurchases and shares that will be exchanged in the beauty transaction. 

 FY 2017 GuidancePotential Headwinds Not Included in Guidance  Change in market growth rates Further political and economic volatilityFurther foreign currency weakness 

 FY 2017 GuidancePotential Tailwinds Not Included in Guidance  Strengthening of foreign currencies Expansion of markets 

 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 generate sufficient income and cash flow to allow the Company to effect 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 sole supplier and sole manufacturing plant arrangements) and 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 commodity prices, raw materials, labor costs, energy costs and pension and health care costs;  (6) the ability to stay on the leading edge of innovation, obtain necessary intellectual property protections and successfully respond to 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, contractors and external business partners; (11) the ability to rely on and maintain key information technology systems and networks (including Company and third-party systems and networks) and maintain the security and functionality of such systems and networks and the data contained therein; (12) 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, accounting standards and environmental) and to resolve pending matters within current estimates; (13) the ability to manage changes in applicable tax laws and regulations; (14) the ability to successfully manage our portfolio optimization strategy, as well as ongoing acquisition, divestiture and joint venture activities, to achieve the Company’s overall business strategy, without impacting the delivery of base business objectives; (15) the ability to successfully achieve productivity improvements and cost savings and manage ongoing organizational changes, while successfully identifying, developing and retaining particularly key employees, especially in key growth markets where the availability of skilled or experienced employees may be limited; and (16) the ability to manage the uncertain implications of the United Kingdom’s withdrawal from the European Union.  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.