Deutsche BankGlobal Consumer Conference

June 16, 2010

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• Strong, Multi-Year Innovation Program• Simplification & Productivity• Business Progress

Purpose-inspired Growth

g• Q&A

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2

Strong, Multi-Year Innovation Program More Consumers…by extending our category portfolios vertically to higher and lower value tiers

In More Parts of the World…by expanding geographically into category whitespaces

More Completely…by improving existing products and extending portfolios into adjacent categories

3

2

2

Fiscal 2011 – Innovation Impacts

Full year of “first market” launches

Year 2+ leverage plans

Geographic expansion

1

3New innovations

4

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Fiscal 2011 – Innovation Impacts

JAS‘09 OND‘09 JFM‘10 AMJ‘10 JAS‘10 OND‘10 JFM‘11 AMJ‘11

Fekkai Classic

Fiscal Year 2010 Fiscal Year 2011

Ariel & Dash Acti-lift- WE

Bounty Upgrade - NA

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Pampers Dry Max - NA

Fusion ProGlide - NA

Pantene Restage - NA

Crest 3D White - NA

Always Simply Fits - UK

Naturella - China

Dish CareFairy Auto Dish –Western Europe

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3

Dish CareDawn Hand Renewal –North America

7

Dish CareJoy Moist Care –Japan

8

Dish CareGain Hand Dishwashing Liquid

9

4

Air CareJapan Febreze Mistral

10

Air CareAmbiPur Acquisition

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Air Care ExpansionFebreze & Ambi Pur Market Coverage

Multi-year plans will expand Air Care’s reach to ~3.8 billion consumers

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5

Fabric CareTide Naturals - India

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Fabric CareAriel Actilift, Dash Actilift

14

Fabric CareTide Acti-Lift

15

6

Fabric CarePowder Compaction and Formula Upgrade

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Baby CarePampers Value Tier

Western Europe CEEMEA

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Baby CarePampers DryMax – North America

18

7

Baby CarePampers Dry Max – Western Europe

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Oral CarePro-Health Formula Expansion

Mexico China

2020

Poland, Turkey & Russia

Brazil

Oral CareOral-B Toothpaste Expansion

Benelux

2121

8

Oral CarePremium Oral Care Boutique

Crest 3D White

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Hair CarePantene Nature Fusion

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Hair CarePantene Brand Restage

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9

Blades and RazorsMach 3 India

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Blades and RazorsGillette Fusion ProGlide

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2

Fiscal 2011 – Innovation Impacts

Full year of “first market” launches

Year 2+ leverage plans

Geographic expansion

1

3New innovations

27

43

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Investing in GrowthContinued industry leading R&D investment

R&D Spend vs. Major Competitors$2.0 bn

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$0.5

$1.0

$1.5

P&G UnileverL'Oreal Henkel KC Colgate Reckitt Clorox Energ. Avon

Significantly more consumer impressions in FY’10;Continued strong support levels in FY’11

~+20%

Investing in Growth

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FY’09 FY’10 FY’11

Simplification & ProductivityMaterials, Formulas & SpecificationsToday• 1,500 Chassis• 16,000 Formulas• 4,000 Printing & Packaging

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colors• 144,000 Material & Package

SpecificationsFuture• Global Platform strategy

targeting a 30% reduction in formulas, colors & specs

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Simplification & ProductivityAlternative Materials

• C&D effort with key supplier to develop new polymer

• Reduces surfactant level in

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Reduces surfactant level in Laundry powder

• Improves performance, especially in cold water

>100,000 <50,000 75,000

Simplification & ProductivitySupplier Optimization

Suppliers Suppliers

2007 2012

Suppliers

2010

Global Suppliers 32

Simplification & ProductivityManufacturing localization

33Approximate location of new manufacturing facilities over next 5+ years

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Simplification & ProductivityDistribution Center Consolidation

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>500

~250

365

Simplification & ProductivityPlanning, Current Locations >300

Simplification & ProductivityPlanning, Future Locations 4 - 8

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13

Simplification & Productivity“Control Tower” Transportation Management

• Control Tower Approach• State of the Art Technology• Breakthrough TruckBreakthrough Truck

Utilization Rates• Collaboration with Non-

Competing Companies

Simplifying our work, decision

making and structure

Frees up investment for

growth

Cost DisciplineEnables Growth

Frees up capacity for innovation

Consumer

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Leadership Shareholder Value Creation• Profitable Value Share Growth

Organic Sales Growth Ahead of Underlying Markets

Business Objectives

g y gConsistent, Strong EPS Growth

• Significant Cash Generation

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+2%

Fiscal Year 2010 Organic Sales Growth

+5%

+4%+4% to

+5%+3% to

+5%

Q1’10 Q2’10

Q4’09

Q3’09Q2’09Q1’09

+2%

Q3’10

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FY’10eQ4’10e

Organic sales growth is sales growth excluding the impacts of acquisitions, divestitures and foreign exchange.

Business OutlookFY 2010 Guidance Evolution

Core EPS

May ‘09$3.62 to

$3.68

CurrentOct. ‘09

C EPS 0% to +3%

Organic Sales Growth

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+4% to +6%-1% to +3%

+3% to +5%+2% to +4%+1% to +3%

Core EPS Growth

Core earnings per share growth is a measure of diluted net earnings per share from continuing operations excluding charges for pending European legal matters, the impact of recently enacted U.S. health care legislation and incremental restructuring charges related to the Folgers divestiture in the prior fiscal year.

$8

$10

$12

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Cash DisciplineAdjusted Free Cash Flow Productivity*

Target = 90%+

ow, $

Bn

146% 117%

100%

101%128%99% 102%

$0

$2

$4

$6

FY '0

3

FY '0

4

FY '0

5

FY '0

6

FY '0

7

FY '0

8

FY '0

9

FYTD

'10

Adj

uste

d Fr

ee C

ash

Flo 146% 117% 92%

* Ratio of adjusted free cash flow to net earnings excluding major divestiture gains. 42

15

FY ’08

Shareholder Value CreationCash Returned to Shareholders

Adjusted FCF* ($ Billion)

FY ‘09 FY ’10e

$12.0 $11.7 ~$12.3

V l t Sh h ld ^

Shareholder Yield(% of Market Cap)

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7.8% 6.5% ~6.5%

*Adjusted free cash flow is operating cash flow less capital plus tax impacts from major divestitures. ^Value to shareholders includes dividends and share repurchases.

Value to Shareholders^($ Billion) $14.7 $11.4 ~$11.5

Business OutlookImproving Global Market Share Trends

19.9%

P12M

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P6M P3M

Constant currency value basis; Data thru April 2010; change versus prior year

(0.2%) +0.1% +0.2%

“Basics” Sales

Growth3X to 4X

North America Family CareFY’09 vs. FY’06

CategoryAT

Margin

CategoryValueShare

+200 bps

+1.5 point

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SalesGrowth 2.5 times

Feminine Care RussiaFY’09 vs. FY’06

AT Margin

ValueShare

+900 bps

+6 points

SalesGrowth 6 times

Fabric Care IndiaFY’10e vs. FY’03

BTMargin

ValueShare

+900 bps

+8 points

Investing in Growth

+5%

Pricing & Promotion Activity

Fiscal year net pricing impact on organic sales growth

FY’09

FY’10e48

FY’11e

+1%

Neutralto

Positive

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Forward Looking StatementAll statements, other than statements of historical fact included in this release or 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 release or 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 theCompany 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 manufacturing sources); (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 andoverhead areas, including the 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.

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Regulation G Disclosure

For full reconciliation, visit:www.pg.com/investors

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