EXHIBIT 1 Income Statement (in millions of $) Year Ending June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 Revenue $66,832 $65,058 $65,299 $70,749 Operating Income 13,711 13,955 13,441 11,049 EBIT 13,326 13,257 13,369 11,012 Net Income 9,861 15,411 10,604 7,144 Source: P&G Annual Report 2018. EXHIBIT 2 Balance Sheet (in millions of $) Year Ending June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 Current Assets $ 23,320 $ 26,494 $ 33,782 $ 29,646 Total Assets 118,310 120,406 127,136 129,495 Current Liabilities 28,237 30,210 30,770 29,790 Total Liabilities 65,427 64,628 69,153 66,445 Stockholder Equity 52,883 55,778 57,983 63,050 EXHIBIT 4 Business Segments, 2018 Reportable Segments % of Net % of Net Product Categories (Sub- Sales Earnings Categories) Major Brands Beauty 19% 23% Hair Care Skin and Personal Care Head & Shoulders, Pantene, Rejoice Olay, Old Spice, Safeguard, SK-II Grooming 10% 14% Shave Care - Female Blades & Razors, Male Blades & Razors, etc. Braun, Fusion, Gillette, Mach3, Prestobarba, Venus Health Care 12% 13% Oral Care Personal Health Care Crest, Oral-B Metamucil, Prilosec, Vicks 32% 27% Fabric & Home Care Laundry Products Cleansers Ariel, Downy, Gain, Tide Cascade, Dawn, Febreze, Mr. Clean, Swiffer 27% 23% Baby, Feminine, & Family Care Baby Care Feminine Care Paper Towels, Tissues, etc. Luvs, Pampers Always, Tampax Bounty, Charmin, Puffs Part 3: Questions 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? ! Required information Financial Analysis: Procter & Gamble The following questions are about key financials that impart useful insights into the financial health of Procter & Gamble (P&G). The financials offer quantitative measurements of the success or failure of P&G's strategies. Part 1: Key Financial Ratios Using available data in the case, calculate the requested financial ratios. Round all numbers to the nearest hundredth. For example, answers should look like -0.05 or 1.33. 2018 2017 2016 % % % % % % Net Income to Total revenue EBIT to Total Revenue Current ratio Total Liabilities to Total Assets Shareholder's Equity to Total Assets % % % % % % Required information Financial Analysis: Procter & Gamble The following questions are about key financials that impart useful insights into the financial health of Procter & Gamble (P&G). The financials offer quantitative measurements of the success or failure of P&G's strategies. Part 2: Annual Growth Activity Exhibits 1, 2, and 4 in the case provide performance information for Procter & Gamble for the years 2015 through 2017. For each item listed below, calculate the rate of annual growth (or decline) from 2015 to 2016 and for 2016 to 2017. All calculations should be rounded to one decimal (e.g., 12.7%). Revenue Operating Income Net Income Total Assets Total Liabilities Total Stockholder Equity 2017-2018 % % % % % 2016-2017 % % % % % % % EXHIBIT 1 Income Statement (in millions of $) Year Ending June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 Revenue $66,832 $65,058 $65,299 $70,749 Operating Income 13,711 13,955 13,441 11,049 EBIT 13,326 13,257 13,369 11,012 Net Income 9,861 15,411 10,604 7,144 Source: P&G Annual Report 2018. EXHIBIT 2 Balance Sheet (in millions of $) Year Ending June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 Current Assets $ 23,320 $ 26,494 $ 33,782 $ 29,646 Total Assets 118,310 120,406 127,136 129,495 Current Liabilities 28,237 30,210 30,770 29,790 Total Liabilities 65,427 64,628 69,153 66,445 Stockholder Equity 52,883 55,778 57,983 63,050 EXHIBIT 4 Business Segments, 2018 Reportable Segments % of Net % of Net Product Categories (Sub- Sales Earnings Categories) Major Brands Beauty 19% 23% Hair Care Skin and Personal Care Head & Shoulders, Pantene, Rejoice Olay, Old Spice, Safeguard, SK-II Grooming 10% 14% Shave Care - Female Blades & Razors, Male Blades & Razors, etc. Braun, Fusion, Gillette, Mach3, Prestobarba, Venus Health Care 12% 13% Oral Care Personal Health Care Crest, Oral-B Metamucil, Prilosec, Vicks 32% 27% Fabric & Home Care Laundry Products Cleansers Ariel, Downy, Gain, Tide Cascade, Dawn, Febreze, Mr. Clean, Swiffer 27% 23% Baby, Feminine, & Family Care Baby Care Feminine Care Paper Towels, Tissues, etc. Luvs, Pampers Always, Tampax Bounty, Charmin, Puffs Part 3: Questions 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? ! Required information Financial Analysis: Procter & Gamble The following questions are about key financials that impart useful insights into the financial health of Procter & Gamble (P&G). The financials offer quantitative measurements of the success or failure of P&G's strategies. Part 1: Key Financial Ratios Using available data in the case, calculate the requested financial ratios. Round all numbers to the nearest hundredth. For example, answers should look like -0.05 or 1.33. 2018 2017 2016 % % % % % % Net Income to Total revenue EBIT to Total Revenue Current ratio Total Liabilities to Total Assets Shareholder's Equity to Total Assets % % % % % % Required information Financial Analysis: Procter & Gamble The following questions are about key financials that impart useful insights into the financial health of Procter & Gamble (P&G). The financials offer quantitative measurements of the success or failure of P&G's strategies. Part 2: Annual Growth Activity Exhibits 1, 2, and 4 in the case provide performance information for Procter & Gamble for the years 2015 through 2017. For each item listed below, calculate the rate of annual growth (or decline) from 2015 to 2016 and for 2016 to 2017. All calculations should be rounded to one decimal (e.g., 12.7%). Revenue Operating Income Net Income Total Assets Total Liabilities Total Stockholder Equity 2017-2018 % % % % % 2016-2017 % % % % % % %