PART I Item 1. Business . The Procter & Gamble Company (the Company) is focused on providing branded products of superior quality and value to improve the lives of the world's consumers, now and for generations to come. The Company was incorporated in Ohio in 1905, having first been established as a New Jersey corporation in 1890, and was built from a bu siness founded in Cincinnati in 1837 by William Procter and James Gamble. Today, our products are sold in approximately 180 countries and territories. Additional information required by this item is incorporated herein by reference to Management's Discuss ion and Analysis (MD&A); and Notes 1 and 2 to our Consolidated Financial Statements. Unless the context indicates otherwise, the terms the "Company," "P&G," "we," "our" or "us" as used herein refer to The Procter & Gamble Company (the registrant) and its subsidiaries. Throughout this Form 10 - K, we incorporate by reference information from other documents filed with the Securities and Exchange Commission (SEC). The Company's Annual Report on Form 10 - K, quarterly reports on Form 10 - Q and current reports on F orm 8 - K, and amendments thereto, are filed electronically with the SEC. The SEC maintains an internet site that contains these reports at: www.sec.gov. Reports can also be accessed through links from our website at: www.pginvestor.com. P&G includes the website link solely as a textual reference. The information contained on our website is not incorporated by reference into this report. Copies of these reports are also available, without charge, by contacting EQ Shareowner Services, 1100 Centre Pointe Cu rve, Suite 101, Mendota, MN 55120 - 4100. Financial Information about Segments Information about our reportable segments can be found in the MD&A and Note 2 to our Consolidated Financial Statements. Narrative Description of Business Business Model . Our busi ness model relies on the continued growth and success of existing brands and products, as well as the creation of new innovative products and brands. The markets and industry segments in which we offer our products are highly competitive. Our products ar e sold in approximately 180 countries and territories through numerous channels as well as direct - to - consumer. Our growth strategy is to deliver meaningful and noticeable superiority across five key vectors of our consumer proposition - product performanc e, packaging, brand communication, retail execution and consumer and customer value. We use our research and development (R&D) and consumer insights to provide superior products and packaging. We utilize our marketing and online presence to deliver super ior brand messaging to our consumers. We work collaboratively with our customers to deliver superior retail execution, both in - store and online. In conjunction with the above vectors, we provide superior value to consumers and our retail customers in eac h price tier in which we compete. Productivity improvement is also critical to delivering our objectives of balanced top and bottom - line growth and value creation. Key Product Categories . Information on key product categories can be found in the MD&A an d Note 2 to our Consolidated Financial Statements. Key Customers . Our customers include mass merchandisers, e - commerce (including social commerce) channels, grocery stores, membership club stores, drug stores, department stores, distributors, wholesalers, specialty beauty stores (including airport duty - free stores), high - frequency stores, pharmacies, electronics stores and professional channels. We also sell direct to consumers. Sales to Walmart Inc. and its affiliates represent approximately 15% of our total sales in 2022, 2021 and 2020. No other customer represents more than 10% of our total sales. Our top ten customers accounted for approximately 39% of our total sales in 2022, 39% in 2021 and 38% in 2020. Sources and Availability of Materials . Al most all of the raw and packaging materials used by the Company are purchased from third parties, some of whom are single - source suppliers. We produce certain raw materials, primarily chemicals, for further use in the manufacturing process. In addition, fuel, natural gas and derivative products are important commodities consumed in our manufacturing processes and in the transportation of input materials and finished products. The prices we pay for materials and other commodities are subject to fluctuatio n. When prices for these items change, we may or may not pass the change to our customers. The Company purchases a substantial variety of other raw and packaging materials, none of which are material to our business taken as a whole. Trademarks and Paten ts . We own or have licenses under patents and registered trademarks, which are used in connection with our activity in all businesses. Some of these patents or licenses cover significant product formulation and processes used to manufacture our products. The trademarks are important to the overall marketing and branding of our products. All major trademarks in each business are registered. In part, our success can be attributed to the existence and continued protection of these trademarks, patents and licenses. Competitive Condition . The markets in which our products are sold are highly competitive. Our products compete against similar products of many large and small companies, including well - known global competitors. In many of the markets and indu stry segments in which we sell our products, we compete against other branded products as well as retailers' private - label brands. We are well positioned in the industry segments and markets in which we operate, often holding a leadership or significant m arket share position. We support our products with advertising, promotions and other marketing vehicles to build awareness The Procter & Gamble Company 1