CAGNY 2023: A Focus on Balanced Growth and Value Creation

First, Andre reminded investors of the Company’s strong start to the fiscal year despite one of the most challenging cost and operational environments we’ve experienced, with input cost increases, FX headwinds, and consumers facing the highest inflation in over 40 years. P&G people have overcome the majority of the FX and cost headwinds while both growing sales – all 10 categories grew organic sales in the first half – and holding share.

He reiterated that we believe this is a rough patch to grow through, not a reason to reduce investment in the long-term health of the business, adding “Balanced growth remains our objective and reinforces the importance of continuing to invest in superiority, especially when consumers are even more focused on the performance and value of the brands they choose.”

Jon then took investors through our integrated set of strategies, stressing the importance of superiority to win with consumers. “Superiority is critical in an inflationary environment. As consumers face increased pressure on nearly every aspect of their household budgets, we are investing to deliver truly superior value – in combination of price, product performance and usage experience – to earn their loyalty every day.” Moeller said.

You can learn more about each example of superiority shared by listening to the CAGNY replay at www.pginvestor.com:

Dawn has delivered outstanding results behind innovation that drives product and packaging superiority.

As the #1 personal cleansing brand in China, Safeguard has provided family protection to Chinese consumers for over 30 years. Safeguard Detox Bodywash – with its superior proposition across all 5 vectors – grew 80% in the first half, and value share has grown continuously the past 3 years.

Our India Fabric Care team has innovated across the 5 vectors of superiority – resulting in P&G Laundry driving 25% of the category growth in India and P&G value share up nearly two points over the past three months.

We also remain fully committed to ongoing productivity – which helps to fund the investment to continue to strengthen the long-term health and competitiveness of our brands, the short-term need to manage through significant cost increases, and the ongoing need to drive balanced top and bottom-line growth including margin expansion.

Success in our highly competitive industry also requires agility that comes with a mindset of constructive disruption, a willingness to change, adapt and create new trends and technologies that will shape our industry for the future. These capabilities often extend our competitive advantage.

Finally, there are four areas we are driving to improve the execution of the integrated strategies: Supply Chain 3.0, Digital Acumen, Environmental Sustainability and Employee Value Equation. These are not new or separate strategies. They are necessary elements in continuing to build superiority, reduce cost to enable investment and value creation, and to further strengthen our organization.

If you’re interested in more details on today’s CAGNY presentation, you can visit P&G’s Investor Relations site at www.pginvestor.com/event for the webcast audio replay and slides.

See www.pginvestor.com/event for full CAGNY 2023 presentation and cautionary information on forward-looking statements, which are based on current assumptions and subject to risks and uncertainties that may cause actual results to differ materially.

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