Type Public (NYSE: PG)Founded 1837

Headquarters Cincinnati, Ohio, USA; Toronto, Ontario, Canada

Key people Bob McDonald, President, and Chief Executive.

Industry Consumer goodsRevenue ▲ US$79.0[1] billion (FY 2009)Net income ▲ US$13.4[1] billion (FY 2009)Employees 138,000

THE PROCTER AND GAMBLE COMPANY

HEADQUATER IN CICINNATI,OHIO,USA

INTRODUCTIONProcter & Gamble Co.

(P&G, NYSE: PG) is a Fortune 500, American multinational corporation headquartered in Cincinnati, Ohio, that manufactures a wide range of consumer goods. As of 2008, P&G is

the 8th largest corporation in the world by market capitalization and 14th largest US company by profit.

• The board of directors of Procter & Gamble currently has thirteen members:

• Alan Lafley• Robert A. McDonald• Charles Lee,• Ralph Snyderman M.D.• Margaret Whitman• W. J. McNerney Jr.• Lynn Martin

Management and staff

• Johnathan Rodgers• Ernesto Zedillo• Scott Cook• Rajat Gupta(only indian)• Patricia Woertz • Kenneth Chenault.

• “William Procter”, a candlemaker, and

“James Gamble”, a soapmaker, immigrants from England and Ireland, respectively, who had settled earlier in Cincinnati, who met as they both married sisters, Olivia and Elizabeth Norris,formed the company initially. Alexander Norris, their father-in law, called a meeting in which he persuaded his new sons-in-law to become business partners. On

October 31, 1837, as a result of the suggestion, Procter & Gamble was born.

HISTORY

• In 1859, sales reached one million dollars. By this point, approximately eighty employees worked for Procter & Gamble. During the American Civil War, the company won contracts to supply the Union Army with soap and candles.

• In addition to the increased profits experienced during the war, the military contracts introduced soldiers from all over the country to Procter & Gamble's products.

In the 1880s, Procter & Gamble began to market a

new product, an inexpensive soap that floats in water. The

company called the soap Ivory.

Company Overview

• With over $83 billion in sales across the world in 2008 and 24 brands with $1 billion of sales each,P&G is a global giant for household and personal goods. P&G divides its business into three Global Business Units:-

Beauty (33% of sales, 37% of net income):

• The Beauty GBU includes all hair and skin products, medications, razors, electric shavers, and batteries. Proctor & Gamble's global market share in blades and razors is 70%, primarily centered around its Mach3, Fusion, Venus, and Gillette brands.

Health and Well-Being (23% of sales, 25% of net income):

• The Health and Well-Being GBU provides oral care, feminine health, pharmaceuticals, snacks, coffee,and pet care products.

• oral care, the company has the number two market share position at 20% globally.

• In potato chips and coffee, the company holds a market share of approximately 10% and 33%.

Household Care (46% of sales, 42% of net income):

• The Household Care GBU manufactures a wide range of products from snack food to laundry detergent to diapers. The company's baby care market share in 2008 was 29%.

• Procter & Gamble Co. was the world's top advertiser in 2007, spending almost $9.4 billion worldwide. The company outspent its largest competitor, Unilever, the second-highest advertiser, by almost two-to-one (Unilever spent $5.2 billion).

• According to the Nielsen Company, in 2007 P&G spent more on U.S. advertising than any other company; the $2.62 billion spent by P&G is almost twice as much as that spent by General Motors, the next company on the Nielsen list.P&G was named 2008 Advertiser of the Year by Cannes International Advertising Festival.

• Effective July 1, 2007, the company's operations are categorized into three "Global Business Units" with each Global Business Unit divided into "Business Segments" according to the company's March 2009 earnings release.

• Beauty Care –Beauty segment–Grooming segment

OPERATIONS

• Household Care –Baby Care and Family Care segment–Fabric Care and Home Care segment

• Health and Well-Being –Health Care segment–Snacks, Coffee, and Pet Care segment

• Procter & Gamble produced and sponsored the first radio soap operas in the 1930s

• When the medium switched to television in the 1950s and 1960s, most of the new serials.were sponsored and produced by the company

• The serials The Young and the Restless and As the World Turns are currently broadcast on CBS and are still partially sponsored by Procter & Gamble

PRODUCTIONS

These past serials were produced by Procter & Gamble:

• Another World• The Brighter Day • The Catlins• The Edge of Night• The First Hundred Years • From These Roots

• Guiding Light • Lovers and Friends• Our Private World • Search for Tomorrow• Somerset • Texas • Young Doctor Malone

NET SALES ($M)

%TOTAL SALES

NET EARNINGS($M)

%TOTAL EARNINGS

SAES GROWTH FROM 2007

CAPITEL EXPENDITURE ($M)

BILLION DOLLAR BRANDS

BEAUTY $19,515 23% $2,730 23% 9.09% $465 HEAD&SHOULDERS,OLAY, PANTENE

GROOMING $8,254 10% $1,679 14% 10.99% $305 GILLETE, MACH3, FUSION

HEALTH CARE $14,578 17% $2,506 21% 8.95% $450 ACTONEL, ALWAYS, ORAL-B

SNACKS,COFFEE, AND PET CARE

$4,852 6% $477 4% 6.94% $105 FOLGERS, LAMS PRINGLES

FABRIC AND HOME CARE

$23,831 29% $3,422 28% 11.00% $765 ARIEL,DURA CELL,TIDE

BABY AND FAMILY CARE

$13,898 17% $1,728 14% 9.21% $763 BOUNTY, CHARMIN, PAMPERS

2008 SEGMENT INFORMATION

• In October 2008, P&G was named one of "Canada's Top 100 Employers" by Mediacorp Canada Inc., and was featured in Maclean's newsmagazine. Later that month, P&G was also named one of Greater Toronto's Top Employers, which was announced by the Toronto Star newspaper.

Procter & Gamble brandsBillion dollar brands

• Ariel is a brand of laundry detergent/liquid available in numerous forms and scents.

• Actonel is a brand of the osteoporosis drug risedronate co-marketed by Sanofi-Aventis. Bounty is a brand of paper towel sold in the United States, Canada, and the United Kingdom (rebranded to "Plenty" in the UK after being sold to SCA Svenska Cellulosa Aktiebolaget).

• Braun is a small-appliances manufacturer specializing in electric razors, coffeemakers, toasters, and blenders.

• Crest is a brand of toothpaste.

• Dawn is a brand of dishwashing detergent.• Downy/Lenor is a brand of fabric softener. • Duracell is a brand of batteries and flashlights.• Fusion is a brand of men's wet shave razors and is

the quickest P&G brand to have reached $1 billion in annual sales.

• Gain is a brand of laundry detergent and fabric softeners.

• Gillette is a safety razor manufacturer. • Head & Shoulders is a brand of shampoo body

wash, and deodorant.

• Old Spice is a brand of aftershave and shaving cream.

• Ivory is a soap.• Nice 'n Easy is a hair coloring product.• Olay is a brand of women's skin care products.• Oral-B is a brand of toothbrush.• Pampers is a brand of disposable diaper

• Pantene is a brand of hair care products (conditioners/styling aids).• Prilosec OTC is a brand of heartburn

medicine co-marketed by AstraZeneca.• Pringles is a brand of potato chips.• Puffs is a brand of facial tissues• Secret is a brand of antiperspirant

and deodorant.

• TAG is a deodorant and body spray.• Tide is a brand of laundry detergent.• Vicks is a brand name of over-the-counter

medicines (Formula 44, Sinex, NyQuil/DayQuil)• Wella is a brand name of hair care products

(shampoo, conditioner, styling, and hair color). Whisper is a brand of pantyliners sold primarily in Asian markets.

CREST PRO-HEALTH TEETH STAINING AND LOSS OF TASTE

• In October 2007, a class action lawsuit was filed in the State of Georgia alleging that many users of Crest Pro-Health mouthwash suffered stained teeth and loss of their sense of taste as a result. Procter & Gamble contends that these side effects occur in only three percent of users. The suit seeks to include disclosure warning users of these side effects on product packaging

• Researchers at the University of Massachusetts Amherst have identified Procter & Gamble as the 52nd-largest corporate producer of air pollution in the United States, with roughly 350,000 pounds of toxic chemicals released annually into the air. Major pollutants indicated by the study were manganese compounds, sulfuric acid, epichlorohydrin, and bromine.

Environmental record

Animal testing• P&G conducts research using animals to

demonstrate safety or efficacy of their raw materials and products.This has led to a worldwide campaign to raise public awareness and to stop P&G being involved in animal testing. The campaign is led by Uncaged Campaigns in the UK and Stop Animal Exploitation Now in the USA.In 2002 P&G was recognized by the Humane Society of the United States for "advancing alternatives to animal testing“.

STEPS TO PROTECT ENVIRONMENT

• In 2007 Procter & Gamble pledged to reduce their carbon emissions, mainly through reduction in packaging along with decreases in water and energy use. The stated emission reduction goal was ten percent by 2012.

Revenue ($M)*

Net income ($M)*

R&D Spending ($M)

R&D as % of Total Revenue

Revenue Growth from 2006/2007*

Major Brands/Products

Procter & Gamble

$83,503 $12,075 $2,226 2.67% 9.00% Pantene, Crest, Tide, Downy, Bounty, Folgers, Gillette, Duracell

Unilever NV (UN)

$58,508 $6,022 $1,264 2.16% 1.37% AXE, Lipton, Slim-Fast, Vaseline, Dove, Ben & Jerry\'s

Clorox Company (CLX)

$5,273 $461 $111 2.11% 8.79% Clorox Laundry Bleach, Pine-Sol Cleaner, Glad Plastic Bags, Brita Water Filters

Kimberly-Clark $18,266 $1,822 $277 1.52% 9.07% Huggies Diapers, Kleenex Tissue, Scott Paper Towels

Colgate-Palmolive Company (CL)

$13,790 $1,737 $247 1.79% 12.68% Colgate Toothpaste, Colgate Toothbrushes, Irish Spring Soap, Palmolive Soap, SpeedStick Deodorant

L'oreal (LRLCY) $24,842 $3,870 $815 3.28% 8.06% Garnier Fructis, L\'Oreal Paris, Maybelline, Ralph Lauren

PG COMPETITORS

• Procter & Gamble is one of the founding members of Carbon Disclosure Project's Supply Chain Leadership Council. Procter & Gamble is one of twelve global companies on the council whose first course of action is to distribute a survey to suppliers on the topic of greenhouse gas emissions and climate change. Since the first phase of the project, more corporations have joined the effort. The council's overall goal is to encourage reductions in emissions down the supply chain.

CORPORATE SOCIAL RESPONSIBILITIES

• Procter & Gamble has, for several years, funded a recycling school in the slums of Cairo, Egypt. Many of the people in the village of Manshiyet Nasser collect garbage and have done so for decades. Procter & Gamble along with UNESCO has started the Mokattam Non-Formal Education Project. The project teaches the people of the village about the business and economics of recycling and how to properly recycle plastic.

• In December 2008, The US Environmental Protection Agency's Design For Environment program awarded P&G its highest level of recognition, Champion, for P&G's work in developing safer detergents under the Safer Detergents Stewardship Initiative (SDSI).

SAVE THE GIRL CHILD

• Procter & Gamble Partners with Save the Children to Help Girls Stay in School

Industry Leader to Provide Health and Hygiene Education and Products to 9,500 Girls