2017 Annual Report

1 2017 Annual Report (1) Diluted net earnings per common share are calculated based on net earnings attributable to Procter & Gamble. (2) These results exclude net sales in 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 on pages 2 6 of this Annual Report .

2 We undertake no obligation to update or revise publicly any forward-looking NET SALES BY GEOGRAPHIC REGION North America 45% Latin America 8% India, Middle East, and Africa (IMEA) 7% Europe 23% Asia Pacific 9% Greater China 8%Financial Highlights (unaudited)Amounts in billions, except per share amounts20172016201520142013 Net Sales$ $ $ $ $ Income$ $ $11. 0$ $ Earnings Attributable to P&G$ $ $7. 0$ $11. 3 Net Earnings Margin from Continuing Net Earnings per Common Share from Continuing Operations 1$ $ $ $ $ Net Earnings per Common Share 1$ $ $ $ $ Cash Flow$ $ $ $ $ per Common Share$ $ $ $ $ NET SALES BY BUSINESS SEGMENT 2 Baby, Feminine, and Family care 28% Beauty 18% Fabric and Home care 32% health care 12% Grooming 10%2017 NET SALES BY MARKET MATURITY Developed Markets 65% Developing Markets 35%TABLE OF CONTENTS Letter to Shareowners iP&G s 10-Category Portfolio iiiForm 10-K xiMeasures Not Defined by GAAP 29 Company and Shareholder Information 75 Company Leadership 76 Board of Directors 77 Recognition and Commitments 78 Citizenship Inside Back CoverDear Shareowners.

3 We met or exceeded our objectives for fiscal year met our sales objective, with organic sales growth of 2% for the fiscal year more than a full point faster than fiscal 2016 and mainly composed of volume exceeded our earnings objective, with core earnings per share of $ , a 7% increase. This includes a 4% headwind from foreign exchange. Excluding foreign exchange, we delivered another year of double-digit currency-neutral core earnings per share sales were essentially in line with the year before. This includes a 2% headwind from the combined impacts of foreign exchange and divestitures. All-in GAAP earnings per share increased 51%. This includes a significant one-time gain from the sale of 41 specialty beauty brands to Coty, continued to deliver robust free cash flow results.

4 Adjusted free cash flow was $ billion, with adjusted free cash flow productivity of 94%.David S. TaylorChairman of the Board, President and Chief Executive OfficerDuring fiscal 2017, P&G completed the transformation of our brand portfolio. We now have a much stronger, more focused portfolio that is better positioned to has leading market positions in our 10 categories, and they leverage the Company s core strengths: consumer understanding, branding, product and package innovations, and go-to-market are daily-use categories where purchase intent and choice are driven by a specific job to do and the product s effectiveness in doing it. Daily-use categories drive shopping trips and dollars, and loyalty to brands is often higher in these Streamlined and Strengthened Portfolio in 10 CategoriesWe built on our strong track record of returning cash to you, our shareowners.

5 In total, P&G returned nearly $22 billion of value through dividends, share exchanges and share repurchase. We paid $ billion in dividends and increased our dividend by 3%, marking the 61st consecutive Annual increase and the 127th consecutive year P&G has paid a dividend every year since our incorporation in 1890. We reduced shares outstanding by more than $ billion through a combination of share repurchases and shares exchanged in the sale of our specialty beauty brands to Coty. The streamlining and strengthening of our product portfolio is now complete. In just over two years, we divested, discontinued or consolidated 105 brands, and built market capitalization as we executed this significant restructure. With this work complete, we are truly a new P&G, better positioned for the long forward, our objective is very clear: balanced top- and bottom-line growth that consistently delivers total shareholder return in the top third of our peer group.

6 The work we ve begun and the progress we ve made have us building toward this level of results. To accomplish our objective, we re raising the bar across everything we do to continue to accelerate sales growth, improve productivity, and empower our organization and culture to deliver sustained, exceptional The Procter & Gamble CompanyP&G s 10-Categor y PortfolioEXPLORE OUR BRANDSFABRIC CAREL aundry Detergents, Fabric Enhancers, Laundry AdditivesHOME CAREDish care , Air care , Surface care , P&G Professional GROOMINGMale Blades & Razors, Female Blades & Razors, Pre- and Post-Shave Products, Appliances, Other Shave CareORAL CARET oothbrushes, Toothpaste, Other Oral CareFAMILY CAREP aper Towels, Tissues, Toilet PaperBABY CARED iapers and Pants, Baby WipesPERSONAL health CAREG astrointestinal, Respiratory, Rapid Diagnostics.

7 Vitamins / Minerals /Supplements, Other Personal health CareHAIR CARES hampoo, Conditioner, Styling Aids, TreatmentsSKIN AND PERSONAL CARESkin care , Antiperspirant and Deodorant, Personal CleansingFEMININE CAREF eminine care , Adult IncontinenceAccelerating Sales GrowthWe re working to accelerate organic sales growth by strengthening and extending the advantages we ve created with our products and packages, improving the execution of our consumer communication and on-shelf and online presence, and ensuring our brands offer a superior consumer value in each price tier where we market continues to be challenging, whether it s price transparency, changing retail dynamics, established and new competitors both online and offline or slowing market growth.

8 The best response is innovation and greater superiority in all elements of our consumer proposition a higher standard. That is what we are working on, starting with the consumer and shopper. That s where we believe sustained success must start. The superiority of our products, packages, execution and consumer value create impactful, meaningful advantages that earn trial and repurchase, grow markets and build market share. It is what will be required to prevent commoditization of our categories and minimize deflationary impacts. It is required to reduce our promotion spending and create strong retail relevance across offline and online channels. Our products need to deliver a big enough advantage to increase loyalty to our brands and change expectations of the category.

9 We re moving from a single evaluation metric Weighted Purchase Intent to a body of evidence approach, which uses a mix of technical tests, blind tests, context-aided tests, household panel data and in-market product reviews to provide a more complete assessment of the actual product experience. It includes behavioral data, which is more reliable than the attitudinal data we historically collected. In the end, we re striving for products that are so good, consumers don t want to part with them after use, to the point where they consider their old product meaningfully is another area where we see great opportunities for innovation, both online and offline. Superior packaging attracts consumers at the first moment of truth, provides integrity, protects quality, and delights consumers during use and in its ability to be disposed of responsibly.

10 Superior packaging creates recognizable brand blocks at shelf, aids consumers in selecting the best product for their needs, conveys the equity of the brand, and closes the sale. iv The Procter & Gamble CompanySUPERIOR PACKAGING P&G s scent beads distinctive packages allow consumers to experience the product benefit in-store by squeezing to release the scent. P&G has an approximately 80% market share in the markets where we compete, supporting overall category growth of nearly 20% in fiscal year BRAND COMMUNICATIONS The best advertising sparks conversations, affects attitudes, and changes behavior. The Always #LikeAGirl campaign has started a movement and helped girls worldwide feel more confident. The campaign has also significantly driven Always brand awareness and equity scores among viewers, and Always has built more than two points of market share since the campaign PRODUCTS Using Tide PODS changed consumers laundry detergent expectations.