Presented by: Zach Scott November 11, 2010

 Founded1837, Procter & Gamble has become the world's largest consumer product manufacturer ◦ Tide laundry detergent ◦ Charmin toilet paper ◦ Pantene shampoo ◦ Cover Girl cosmetics ◦ Iams pet food  Household products Stalwart  Had trouble responding to the economic downturn, However recently implemented plans to reinvigorate top-line and earnings growth  Unprecedented skills: ◦ consumer understanding, marketing, and brand-building

 P&G's brands often hold top market share positions ◦ retains a strong bargaining position with retailers  The company achieves economies of scale in distribution ◦ premium household product offerings cross consumer categories ◦ from toilet paper and dog food to shampoo and skin cream  Poor 2009 ◦ higher prices P&G pushed through on its products to offset input cost inflation of $2 billion and negative foreign currency exchange of $4 billion ◦ uncompetitive pricing on store shelves in the midst of the economic downturn. ◦ Sales volume declined, and P&G lost market share in some categories  CEO Robert McDonald is instituting cost discipline ◦ business services, purchasing, and logistics ◦ Savings from these initiatives, along with investments in new product development, are expected to offset any potential gross margin erosion that could result from a more value-oriented positioning of the firm's brands

 Purchase Price= $61.83  Recent Price=$64.57  Shares Held=20  $ Gain/Loss=$54.8  Current Value=$  FV Estimate=$77.00  1yr Target=$70.97  Stock Price was at $60.18 to begin the semester  52 week Range=  Market Cap= $182.9 Billion  Projected Div Yield= 3%  Recent Dividends ◦ 10/20/10:$ ◦ 07/21/10:$ ◦ 04/28/10:$ ◦ 01/20/10:$ ◦ Dividend profit= $38.54  P/E= 14.7  Profit Margin= 15.79%  ROA= 7.39%  ROE= 16.98%

Current MonthLast MonthTwo Months AgoThree Months Ago Strong Buy Buy7665 Hold7888 Underperform0000 Sell0000

 I Recommend we hold our PG shares  This is a Value stock that will see slow growth over the next few years  With all of the company adjustments and cutback that PG is instituting in the rehabilitation from the economic downturn I project slow growth and could see the stock reach its 1yr projected target from yahoo.finance of $70 and over the next 5 years I believe they could come close to the Fair Value estimate from morningstar.com of $77  We will see good dividend return on our shares  Growth Estimates ◦ Past 5 years= 9.02% ◦ Next 5 years= 8.78%