EXHIBIT 1 Income Statement (in millions of $) Year Ending June 30, 2017 June 30, 2016 June 30, 2015 Total Revenue 65,058 65,299 70,749 Operating Income 13,955 13,441 11,049 EBIT 13,257 13,369 11,012 Net Income 15,411 10,604 7,144 EXHIBIT 2 Balance Sheet (in millions of $) Year Ending June 30, 2017 June 30, 2016 June 30, 2015 Current Assets 26,494 33,782 29,646 Total Assets 120,406 127,136 129,495 Current Liabilities 30,210 30,770 29,790 Total Liabilities 64,628 69,153 66,445 Stockholder Equity 55,778 57,983 63,050 EXHIBIT 4 Business Segments, 2016 Reportable % of Net % of Net Segments Sales Earnings Product Categories (Sub-Categories) Major Brands Hair Care (Conditioner, Shampoo, Styling Aids, Treatments) Head & Shoulders, Pantene, Rejoice Beauty 18% 20% Skin and Personal Care (Antiperspirant and Deodorant, Personal Cleansing, Skin Care) Olay, Old Spice, Safeguard, SK-II Grooming 11% 15% Grooming (Shave Care - Female Braun, Blades & Razors, Male Blades & Fusion, Razors, Pre- and Post-Shave Products, Gillette, Other Shave Care; Appliances) Mach3, Prestobarba, Venus Crest, Oral-B Oral Care (Toothbrushes, Toothpaste, Other Oral Care) Health Personal Health Care Prilosec, Crest, Oral-B Oral Care (Toothbrushes, Toothpaste, Other Oral Care) Health Care 11% 12% Prilosec, Vicks Personal Health Care (Gastrointestinal, Rapid Diagnostics, Respiratory, Vitamins/Minerals/Supplements, Other Personal Health Care) Fabric Care (Fabric Enhancers, Laundry Additives, Laundry Detergents) Ariel, Downy, Gain, Tide Fabric & 32% 27% Home Care Home Care (Air Care, Dish Care, P&G Cascade, Professional, Surface Care) Dawn, Febreze, Mr. Clean, Swiffer Baby Care (Baby Wipes, Diapers, and Pants) Luvs, Pampers Baby, Feminine & Family Care 28% 26% Feminine Care (Adult Incontinence, Feminine Care) Always, Tampax Family Care (Paper Towels, Tissues, Toilet Paper) Bounty, Charmin Based on the case and previous calculations, please answer the following short answer questions. Note: Your instructor will need to manually grade these questions. 1. Refer to Exhibit 4 (Financial Breakdown). What were the largest and smallest divisions by net sales in 2017? Identify the one most important division in terms of the proportionate net earnings for the company. 2. Based on the financials presented in Exhibits 1 and 2, how would you describe P&G's financial position in the years 2016 and 2017? Do you think the company ought to make any major changes to improve its financial outlook? What changes would you suggest