Barclay’s Back-to-School Conference September 10, 2009

2. Sources of Financial Flexibility

1. Strategy Renewal

Agenda

3. Rx Divestiture & Guidance

We will provide branded products and services of superior quality and value that improve the lives of the world’s consumers, now and for generations to come.

As a result, consumers will reward us with leadership sales, profit and value creation, allowing our people, our shareholders, and the communities in which we live and work to prosper.

P&G Growth StrategyBegan Year Ago with Focus on Purpose

P&G Objectives

•Win the Consumer Value Equation at the First and Second Moments of Truth with Purpose-Inspired, Benefit-Driven Brands

•Build Shareholder Value

In-Touch with RealityP&G Growth Has Trailed Competitive Averages

P&G vs. Peer GroupP&G

Competitive Average

-2%

0%

2%

4%

6%

8%

10%

JFM

04

AM

J 04

JAS

04

ON

D 0

4

JFM

05

AM

J 05

JAS

05

ON

D 0

5

JFM

06

AM

J 06

JAS

06

ON

D 0

6

JFM

07

AM

J 07

JAS

07

ON

D 0

7

JFM

08

AM

J 08

JAS

08

ON

D 0

8

JFM

09

AM

J 09

Focus on Long-Term GrowthMaintaining Sense of UrgencyFY 10 Objectives • Grow value share--profitably • Deliver better consumer value• Accelerate productivity and drive simplification• Manage cost & cash with discipline

FY ‘10

Strategy RenewalPreserve and Strengthen What is Working

•Growth strategies and core strengths•Billion-dollar and half-billion-dollar brands• Innovation•Emerging markets•Productivity and simplification•Cash and cost discipline•P&G people and partners

Strategy RenewalLead Change Where We Can Create Greater Capability and Competitive Advantage

•Focus even more on winning with consumers in emerging markets

•Become a better, more integrated brand-building company

•Become even more networked inside and outside the company

•Become a flatter, faster and simpler organization

Grow leading, global brands and core categories1

3

2 Build our business with underserved and un-served consumers

Continue to develop faster growing, structurally attractive businesses with global leadership potential

Where to Play How to Win

1

3

2

Drive Core P&G Strengths

Lead Change

Simplify, Scale and Execute

Strategy RenewalContinuity with Change

More ConsumersGlobal Population Growth

Bill

ions

1950 1960 1970 1980 1990 2000 2010 2020 2030 2040 2050

2014/155 billionconsumers2009/10

4 billionconsumers

Improving Consumer ValueReaching More Consumers At Multiple Price Points

Super Premium & Premium

Tiers

Value Tier

More ConsumersVertical Portfolio – Premium

More ConsumersVertical Portfolio – Value Tier

~50%

Company Source: Top 17 category, Top 15 country combinations.

FY’09 FY’10 FY’11

Value Tier Key Brand / Country Combinations

More value tier products in core categories in top markets

14

More ConsumersVertical Portfolio

Always

Naturella

AlwaysInfinity

+100%

Base

+25%

• >$200MMAnnual Sales in 5 years

• Sold in 30 Countries

More Consumers Vertical Portfolio

UnitedKingdom

FranceSwitzerland

Austria

Greece

>60%Market Share

Pampers Germany

More ConsumersVertical Portfolio

Low

Mid

Premium

SuperPremium

Pric

e In

dex

HerbalEssences

China HairBefore

More ConsumersVertical Portfolio

Low

Mid

Premium

SuperPremium

HerbalEssences

Pric

e In

dex

China HairAfter

More Parts of the WorldWhite Space Expansion

+17%2-year growth

Company Source: Top 17 category, Top 15 country combinations.

FY’09 FY’10 FY’11

Core Category / Key Country Combinations

More Parts of the WorldWhite Space Expansion

Value share leader

India

More Parts of the WorldWhite Space Expansion

2X Anti-Aging

6%Share

India

More Parts of the WorldWhite Space Expansion

R$8.00

R$3.50

R$2.90

R$1.99

More Parts of the WorldWhite Space Expansion

Primary Competitor

Oral BToothpaste Launch

March 2009

P&GBrazil ToothbrushValue Share

27.0

28.0

29.0

30.0

31.0

32.0

JA2007 SO2007 ND2007 JF2008 MA2008 MJ2008 JA2008 SO2008 ND2008 JF2009 MA2009 MJ2009

4 point value share

lead

23

More Parts of the WorldWhite Space Expansion – Brand X Today

UKFranceGermany

BelgiumAustriaSwitzerland

U.S.CanadaChile

JapanS. KoreaMalaysiaAustraliaNew Zealand

14 Countries

24

More Parts of the WorldWhite Space Expansion – Brand X FY’12

UKFranceGermanyGreece

JapanS. KoreaMalaysiaAustraliaNew ZealandAsia 1SingaporeChina 1

BelgiumAustriaSwitzerlandItalyIberiaHolland

U.S.CanadaChileBrazilMexico

ArgentinaColumbiaVenezuela

PolandRomaniaCzech RepublicHungaryCroatia

SloveniaRussiaSlovakia

34 Countries

1

2

3

4

5

6

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

# P&G Product Users (Billions)

2014/15~5 billionconsumers

More Parts of the WorldConsumers Served by P&G

0

20

40

60

80

100

120

US Germany ChinaUK IndiaMexico

~$110

~$85

~$45

~$20

~$3 <$0.6

2009/10 2014/15Global Per

CapitaSpending

~$12

Global Per Capita

Spending~$14

More Parts of the WorldPer Capita Spending

$40B

US Germany ChinaUK IndiaMexico

~$110

~$85

~$45

~$20

0

20

40

60

80

100

120

More Parts of the WorldPer Capita Spending

More CompletelyHorizontal InnovationFabric Enhancers

More CompletelyHorizontal InnovationNew Product Forms

More CompletelyHorizontal Innovation

North America Western Europe

Laundry Additives

More ConsumersMore Parts of the World

More Completely

P7Y CAGR = 15%#1 mass facial skin care brand in the world

How to Win Choices

1.Drive Core P&G Strengthsin consumer understanding, innovation, branding and go-to-market

Branding Go-to-Market

Innovation

ConsumerUnderstanding

Scale

Consumer UnderstandingA Greater Focus on Value

PrioritizePerformance

PrioritizePrice

PriceSimplicityQualityExperiential

~50% ~50%

Consumer UnderstandingA Greater Focus on Value

Prioritize Performance Prioritize Price

PriceSimplicityQualityExperiential

Consumer UnderstandingA Greater Focus on Value

~45% ~55%

Prioritize Performance Prioritize Price

PriceSimplicityQualityExperiential

We Create Value with Innovation

• Stimulates growth• Reduces costs• Primary driver of value

InnovationStepping Up Investments

+30%

30% more innovation in

core categories in key countries

Company Source: Top 17 category, Top 15 country combinations.

FY’09 FY’10

Communicating Consumer ValuePerformance Based Value Messaging

• >100 Performance Based Value Messages in Market

• 97% of brands have Performance Based Value Messaging

How to Win Choices

2. Simplify, Scale and Execute for competitive advantage

•Elevating simplification, scale and execution to How to Win strategies

•Faster, fewer, bigger initiatives•Collaborate across businesses, functions and regions on plans to win in market

•Cascading priorities from strategy to work plans

SimplificationBrand Agency Leader

Interactive Agency

PRAgency

AdvertisingAgency

FMOT Agency

DesignAgency

Global StrategicComm Planning

InteractiveAgency Digital

Mgr

Global StrategicComm Planning

Media

Design Agency

DesignMgr

ERAgency

ERMgr

FMOT Agency

FMOTMgr

ADVERTISINGAGENCY

P&GBRAND

ADD

Multiple competing messages

Before

Brand Agency Leader

After

Brand Franchise

Leader

Scale

ScaleMarket Rewards Growth, Not Size

Growth&

Cost Advantage

Size

“Official Locker Room Products of the NFL”

Scale Drives GrowthMulti-Brand Commercial Innovation

Lyon

Intermodal Usage:10% 30% by 2015(expect to reach 20% by end of CY 2010)

Scale Lowers CostsIntermodal Freight• Plan to cut total logistic costs by nearly 1 percent of sales

• Few companies have scale necessary to fill an entire train. P&G does.

ExecutionRaising The Bar In Key Areas

123

Qualified Copy

Efficient Assortment

In-Store Fundamentals

4 Centralized Resource Allocation

3. Lead changeto win with consumers and customers and create shareholder value

• Renewed Leadership Team• Renewed Strategies• Investing in People & Technology• Operating with Urgency

How to Win Choices

P&G Objectives

•Win the Consumer Value Equation at the First and Second Moments of Truth with Purpose-Inspired, Benefit-Driven Brands

•Build Shareholder Value

Sources of Financial Flexibility

What’sDifferent?

MediaRates

ForeignExchange

InterestExpense

Commodities

Commodities

$0.5

$1.5

$2.0

$0

$1.0

$2.0

FY’07 FY’08 FY’09

Bill

ions

FY’10

$1.0

-$1.0

FX Impacts

$0

($2B)

($4B)

FY’09 FY’10

Sales Impact

~$4Billion

($1B)

($3B)

FX Sales ImpactVersus Competitors

Peer Group

P&G

-10.0%

-8.0%

-6.0%

-4.0%

-2.0%

0.0%

2.0%

4.0%

6.0%

JAS’08 OND’08 JFM’09 AMJ’09

FX Im

pact

to S

ales

Peer Group P&G

P&G

-10.0%

-8.0%

-6.0%

-4.0%

-2.0%

0.0%

2.0%

4.0%

6.0%

JAS’08 OND’08 JFM’09 AMJ’09

FX Im

pact

to S

ales

P&G

Foreign Multi-

Nationals

Foreign Multi-Nationals

FX Sales ImpactVersus Competitors

Interest Expense

P&G’s AA- credit rating allows refinancing on attractive terms

FY’08 FY’10FY’09

$10.5 Billion of Bonds Coming Due in FY’10

Inte

rest

Exp

ense

53

Media Rates

>10%

FY’09 FY’10

Lower media rates will yield >10% more consumer impressions at roughly the same cost.

Con

sum

er Im

pres

sion

s

P&G has Approximately

$1 Billion of incremental

financial flexibility on top of all the other

items previously discussed

Sources of Financial FlexibilityInvestment Year

~1%

~10%

P&

G C

ore

EP

S G

row

th

FY’10 SGM

Several key competitors are

committed to delivering

significantly higher EPS in

FY’10

Sources of Relative FlexibilityDifferential EPS Expectations

~1%

~10%

P&G

Peer Group^

(^) – Estimated composite for Colgate, Clorox, Kimberly & Church & Dwight

P&

G C

ore

EP

S G

row

th

Commodities

Differential EPS Expectation

Fiscal 2010Sources of Incremental Funding

Interest Expense

Media Rates

Simplification

Foreign Exchange

Marketing Support

Innovation

Fiscal 2010Uses of Incremental Funding

Restructuring

White Space Expansion

Portfolio Expansion

Consumer Value Interventions

Restructuring

‘06 ‘07 ‘08 ‘09 ‘10Fiscal Year

Folg

ers

$400MM AT

$300MM AT

Improving Consumer ValuePricing

FY’09

FY’10$4bn

~10% of Portfolio

Improving Consumer ValueCompetitive Merchandising Levels

• Lowered average shelf prices in May ’09

• Volume has accelerated, share has improved on both brands

Improving Consumer ValueTargeted Pricing Interventions

• Targeted interventions on large size SKUs

• Large size value and volume share is up >10% in July/August vs. May/June

Improving Consumer ValueBrand Repositioning• Cheer price reduction

of approximately 13%

• 2nd highest brand awareness after Tide

• Consumer share of preference is 10%, vs. 3% value share

Russia

Saudi Arabia

Turkey

Improving Consumer ValueDeveloping Markets

Fabric Care

Home Care

Hair Care

Fabric Care

Hair Care

Fabric Care

Baby Care

Feminine Care

Oral Care

Disciplined Portfolio ManagementPharmaceuticals Sale

Disciplined Portfolio ManagementFocus on Consumer Health Care• Branded business• Attractive category• Advantaged by P&G’s core capabilities

Disciplined Portfolio ManagementAcquisitions Divestitures

3. Right Strategies

1. Right Brands

4. Right Choices

2. Right People

Give Us Confidence

Forward Looking StatementAll statements, other than statements of historical fact included in this presentation, are forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995. Such statements are based on financial data, market assumptions and business plans available only as of the time the statements are made, which may become out of date or incomplete. We assume no obligation to update any forward-looking statement as a result of new information, future events or other factors. Forward-looking statements are inherently uncertain, and investors must recognize that events could differ significantly from our expectations. In addition to the risks and uncertainties noted in this presentation, there are certain factors that could cause actual results to differ materially from those anticipated by some of the statements made. These include: (1) the ability to achieve business plans, including growing existing sales and volume profitably despite high levels of competitive activity, especially with respect to the product categories and geographical markets (including developing markets) in which the Company has chosen to focus; (2) the ability to successfully manage ongoing acquisition and divestiture activities to achieve the cost and growth synergies in accordance with the stated goals of these transactions without impacting the delivery of base business objectives; (3) the ability to successfully manage ongoing organizational changes designed to support our growth strategies, while successfully identifying, developing and retaining key employees; (4) the ability to manage and maintain key customer relationships; (5) the ability to maintain key manufacturing and supply sources (including sole supplier and plant manufacturingsources); (6) the ability to successfully manage regulatory, tax and legal requirements and matters (including product liability, patent, intellectual property, competition law matters, and tax policy), and to resolve pending matters within current estimates; (7) the ability to successfully implement, achieve and sustain cost improvement plans in manufacturing and overhead areas, includingthe Company's outsourcing projects; (8) the ability to successfully manage currency (including currency issues in certain countries, such as Venezuela, China and India), debt, interest rate and commodity cost exposures and significant credit or liquidity issues; (9) the ability to manage continued global political and/or economic uncertainty and disruptions, especially in the Company's significant geographical markets, as well as any political and/or economic uncertainty and disruptions due to a global or regional credit crisis or terrorist and other hostile activities; (10) the ability to successfully manage competitive factors, including prices, promotional incentives and trade terms for products; (11) the ability to obtain patents and respond to technological advances attained by competitors and patents granted to competitors; (12) the ability to successfully manage increases in the prices of raw materials used to make the Company's products; (13) the ability to stay close to consumers in an era of increased media fragmentation; (14) the ability to stay on the leading edge of innovation and maintain a positive reputation on our brands; and 15) the ability to rely on and maintain key information technology systems. For additional information concerning factors that could cause actual results to materially differ from those projected herein, please refer to our most recent 10-K, 10-Q and 8-K reports.

Regulation G Disclosure

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