We strive for an empowered, agile and accountable organization with little overlap or redundancy—flowing to new demands and seamlessly supporting each other, through a culture of equality and inclusion, to deliver against our priorities around the world.
P&G is organized around five industry-based sector business units (SBUs). These five sectors manage our 10 product categories, with full sales, profit, cash and value creation responsibility for our largest and most profitable markets—called Focus Markets—accounting for about 80% of Company sales and about 90% of after-tax profit.
Enterprise Markets, which represent the rest of the world, are a separate unit with sales, profit and value creation responsibility. Over the last several years, we have been growing both top and bottom line in nearly all of these markets, which are important to the future of P&G.
The best proof that this organization design is working is the growth of our largest and most profitable market, North America, whose growth has accelerated since we put this design in place. Organic sales in North America have increased from an average of +2% the three years prior to the design change to +8% in the three years since.
This structure, and its resulting organizational speed and focus, has also allowed us to manage through the challenges and headwinds we are experiencing. We continue to believe that this structure—with the SBUs squarely concentrated on Focus Markets and managing Enterprise Markets as a separate operating unit—is the best way to navigate successfully through the increasingly dynamic world in which we live.
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.