CONFIDENCE IN P&G’S STRATEGY
AND PEOPLE

I want to close this letter with a few thoughts about this Company, its strategy and organization—as a reflection back on what has been accomplished and as a glimpse forward into what is possible.

First, pre-COVID, during COVID and since COVID—pre-inflation and since inflation—we have delivered consistent, strong top-line growth across categories and geographies, core EPS growth each of the last five fiscal years, and consistent cash return to shareowners. Our strategy has sustained us through all of it.

Second, in the past two years, nearly half our earnings have been wiped out by commodities, transportation and foreign exchange headwinds. Yet, we still grew earnings per share in each of those years, while delivering 7% organic sales growth each year, increasing investment in innovation, brand building and market growth, and growing market share, in aggregate, in the process.

Third, if you had asked me four years ago if we could grow top line, bottom line and deliver strong cash return to shareowners through a global pandemic, with employees challenged to get to the workplace, in the context of a war in Europe, major disruption in global supply chains, rapidly escalating costs, the highest consumer inflation in 40 years, and fundamental shifts in consumer behavior and channel relevance—it would have been hard to say “yes.”

But that is exactly what your team has done. Over the last five years, they have added over $15 billion in incremental sales, grown our share of the global market, grown core earnings per share by 40% and returned over $80 billion of value through dividends and share repurchase to shareowners.

As you well know, past performance is no guarantee of future results and no excuse to stand still—quite the opposite. There will be bumps in the road ahead. We are still navigating through plenty of bumps right now. Each of these three look-backs, though, gives us confidence in the effectiveness of our strategy—grounded in and focused on consumers—and an appreciation for the capability of a talented, creative, agile and committed organization.

At the end of the day, we serve people—with a strong desire to improve their lives and the lives of their families. We stand by consumers and support them in small but meaningful ways every day—with superior performing products of high quality at a superior value. We strive to do this in the most responsible way, consistent with P&G’s Values and Principles.

This approach, with consumers at the center, and an organization built to serve them, has served us and our many stakeholders well. It will guide our actions as we move forward. If we do this effectively, consumers will benefit, customers will grow their businesses, employees will develop and thrive, we will have a positive impact on society, and shareholders will continue to be rewarded for their investment.

I believe in this Company, in our organization—its capabilities and in the commitment of P&G people to serve consumers. I am excited about what lies ahead. Of course, we will continue to weather some dark days and nights. But the future, in general, holds great promise. At all times, we will continue to be guided by P&G’s Purpose, Values and Principles and the relentless execution of our strategy to move toward an even brighter dawn.

As P&G celebrates our 186th anniversary this year, I believe we have a stronger hand to play today than we have ever had.

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.