OMSDC COE P&G Corporate Presentation June 2nd, 2016

Best Practice #7 Establish a continuous improvement plan The corporate minority supplier development program needs to be fine-tuned on a regular basis to follow changes in corporate objectives and growth (including growth by acquisition and mergers)

Best Practice #7 The corporation has established and maintains documented procedures for planning and implementing internal minority supplier development audits to verify whether activities and related results comply with the plan. Surveys are conducted with key stakeholders internally to ensure minority supplier development is exceeding customer expectations. A process exists for ongoing communication between the corporation and MBEs to assist and fine-tune the performance of contracts, through vehicles such as surveys conducted with MBEs to determine areas for continuous improvement. Participate in benchmarking with other corporations to identify best practices and then plan for their systematic adoption by the organization. Develop overall supplier diversity strategy, including multi-year plans tied to corporation values and aligned with overall corporate strategy and functional department strategies, especially procurement strategies. Participate in “next practices” exercises to envision innovative strategies well in advance of the need for those practices.

Examples of how P&G Drives Continuous Improvement in our Supplier Diversity Program

Strategy Renewal Win internally – Leverage diverse suppliers on product innovation, supply chain transformation, productivity improvement Win externally – Tell our Supplier Diversity story to consumers, customers, and stakeholders Win with employees – Connect all P&G employees to Supplier Diversity through development opportunities Win by Leading, Embedding, Expanding, and Partnering Externally

3-Year Spend Glidepath

Internal Policy Supplier Diversity, like P&G employee diversity, is a business imperative and strategy for Procter & Gamble. Our business success depends in part on creating and utilizing a diverse supply base. Key Components: Purchasing “Owns Every Dollar” Spent SD included on the CEO’s I&D Scorecard, the Product Supply Scorecard, and Purchases Scorecard. SD Addressed in all sourcing strategies Majority-owned or publicly-owned suppliers with U.S. based operations are expected to support Supplier Diversity by setting 2nd tier Supplier Diversity spending goals Supplier diversity spending goals are developed and managed by Spend Pool/Category Leaders (Vice Presidents and Directors) and incorporated into scorecards and work plans across the organization.

Leadership Exposure *Leadership Immersion (CPSO) *Conference Immersion (NMSDC Chicago Immersion)

SDAC The Supplier Diversity Advisory Council (SDAC) is made up of 13 P&G Diverse Partners and was originally chartered to help P&G drive Supplier Diversity (including spending, awareness, benchmarking, etc.) The purpose of the SDAC moving forward will be focused on Driving Joint Business Value through Supplier Diversity. Grow P&G Operating Total Shareholder Return (OTSR) by leveraging the capabilities, insights, and experience of the Council, and through Supplier Diversity activities Increase Community Impact and Employee Engagement via Supplier Diversity Provide insight and perspective to SDAC Members that leads to growth and innovation opportunities for their businesses Create a forum for open dialogue around critical business needs so both P&G and SDAC can hear directly from each other and develop solutions The SDAC is now an action-oriented organization