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## Fellow Shareholders: 

P&G touches the lives of consumers around the world every day. Thirty million times a day, in more than 160 countries, P&G brands face their first moment of truth, when consumers stand in front of a store shelf – at a Wal-Mart store in West Virginia, a Carrefour store in France, a bodega in Mexico, a corner market in Egypt or a tiny “sari sari” store in the Philippines – and decide whether to buy a P&G brand, or a competing product. 

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A.G. Lafley Chairman of the Board, President and Chief Executive 

A lot happens in that moment, as consumers assess the performance, quality and value P&G brands offer relative to other products on the shelf. When we strike the right balance between brand promise and store price, we win that first moment of truth. 

Winning the first moment of truth is only half the battle. Soon after, P&G brands face a second moment of truth. Nearly two billion  times a day, P&G products are put to the test when consumers use Tide to clean their clothes, Pampers to care for their babies, Pantene to care for their hair, Olay to improve the condition of their skin, Crest to brighten their smile. Every one of P&G’s brands is put to this test. 

In every one of those nearly two billion experiences, consumers decide whether P&G brands live up to their promises. When we get this right – when we deliver the benefits promised, when we provide a delightful and memorable usage experience, when we make everyday life a little bit better, a little more convenient, a little bit healthier and more beautiful – then we begin to earn the trust on which great brands are built. 

At P&G, we’ve been competing for and winning these moments of truth for 165 years. As a result, we’ve built one of the largest and strongest portfolios of leading brands in the world. 

We have made substantial progress over the past two years in strengthening P&G’s business. We’re back in the lead. We’re committed to continuing this progress and to ensuring we squarely face changing marketplace realities – to get out in front and to stay in front of change. 

