Pershing Square Activist Presentation Deck

Add it Up: EBIT Margins Should be 24% We believe our 24% EBIT margin estimate for P&G is very achievable Pershing View FY 2016E 51.5% % of Revenue Gross Margin Less: Advertising & Other Marketing Expense Less: Core SG&A Expense (ex Advertising) EBIT Margin FY 2012 49.6% (16.5)% (14.4)% 26 18.8% (16.5)% (11.0)% 24.0% Our EBIT margin estimate allows for: ✔ Substantial reinvestment opportunities (pricing, promotions, geographic expansion) Cushion to offset negative mix shift and commodities ✓ Advertising and marketing spend at the high end of category-adjusted peer average

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