A Highly Engaged
Organization and Culture

Our willingness to change is best demonstrated by the organization structure changes we implemented in July 2019. Today, we operate P&G through industrybased sector business units that manage our 10 product categories, with a differentiated approach in Focus Markets and Enterprise Markets, and a very small corporate group with best-in-class functional expertise.

As a result, we now have a more empowered, agile and accountable organization with little overlap or redundancy, flowing to new demands, and seamlessly supporting each other to deliver our strategic choices around the world. This new design is working well, especially during the pandemic as people are closer to the consumers and customers they serve.

Operating through five industry-based Sector Business Units in Focus and Enterprise Markets

Culture

Providing greater clarity on responsibilities and reporting lines

Culture

Strengthening leadership accountability

People

Enabling P&G people to accelerate growth and value creation

Hands

We continue to evolve our structure and will be moving from six sector business units to five, combining Baby Care, Feminine Care and Family Care into one sector business unit to better take advantage of synergies in talent and shared competition.

P&G’s culture is strong. P&G people are committed, driven and highly engaged, and we see that clearly in our annual employee survey results, which, despite the pandemic, remain high. Our foundational Purpose, Values and Principles continue to be a primary source of strength and pride, and we have record high scores in confidence in leadership and direction. Our employees also value our strong culture of Equality & Inclusion.

P&G’s organization is well prepared for the future. This includes a diverse group of senior leaders with significant depth and experience across our business and operations, with the right mix of skills and capabilities needed to drive the Company forward.

A More Empowered, Agile and
Accountable Organization

Products

NORTH AMERICA FABRIC CARE

Responding to rapidly changing consumer needs and behaviors, the increased agility of our North America Fabric Care team helped us accelerate e-commerce investment, launch more larger sizes as consumers minimized store trips, and respond to emerging needs with new innovations like Tide Hygienic Clean Power PODS (as laundry became part of hygiene practices), Bounce Pet (as pet adoptions increased) and Downy Intense liquid fabric enhancer and Downy Infusions scent beads (as consumers wanted mood enhancing scent at home) — all underpinned by the exceptional resiliency and responsiveness of our Product Supply organization.

World

ENTERPRISE MARKETS

P&G’s Enterprise Markets execute within predefined strategies to deliver the plans set by the categories, and if they’re on track, have the freedom to make executional changes without engaging category leadership. This flexibility was of increased importance in fiscal 2021 during the COVID-19 pandemic as decisions could be made quickly to deal with unexpected market closures or currency volatility — and Enterprise Markets grew organic sales 5% in fiscal 2021.

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NEW WAYS OF WORKING

We’re making changes to workplace flexibility, taking what we’ve learned during the pandemic and applying this knowledge to how we work — whether at sites, remotely or hybrid — in a way that will enable us to build the business, increase innovation and productivity, and strengthen our culture, all while ensuring employees’ continued development, wellness, engagement and inclusion.

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 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.