Net earnings increased 8% to $2.0 billion in fiscal 2022 due primarily to the increase in net sales. Net earnings margin decrea sed slightly as a decrease in gross margin and a higher effective tax rate were mostly offset by a decrease in SG&A as a percentage of net sales. The decrease in gross margin was driven primarily by increased commodity and transportation costs and other c ost increases associated with the global chip shortage, partially offset by increased pricing. SG&A as a percentage of net sales decreased due to the positive scale impacts of the net sales increase and overhead productivity, partially offset by an increa se in media spending. The higher effective tax rate was driven by disproportionate growth in North America, which has higher than segment - average tax rates. FABRIC & HOME CARE ($ millions) 2022 2021 Change vs. 2021 Volume N/A N/A 3% Net sales $27,556 $26,014 6% Net earnings $4,386 $4,622 (5)% % of net sales 15.9% 17.8% (190) bps Fabric & Home Care net sales increased 6% to $27.6 billion in fiscal 2022 on a 3% increase in unit volume. Unfavorable foreign exchange decreased net sales by 2%. Higher pricing increased net sales by 5%. Mix had a neutral impact to net sales. Organic sales increased 8%. Global market share of the Fabric & Home Care segment increased 1.5 points. • Fabric Care net sales increased high sin gle digits. The positive impacts of a mid - single digit increase in volume, increased pricing, increased trade spend efficiencies and positive mix (due to the disproportionate growth in North America and growth of fabric enhancers and premium forms, all of which have higher than category - average selling prices) were partially offset by unfavorable foreign exchange. Organic sales increased double digits. Volume increased high single digits in North America and increased low single digits in Asia Pacific, b oth due to market growth and innovation. Global market share of the fabric care category increased more than a point. • Home Care net sales were unchanged. Negative impacts of a low single digit decrease in volume, increased trade spending and unfavorable foreign exchange were offset by increased pricing. Organic sales increased low single digits. Volume decreased 20% in IMEA (due to market contraction and competitive activity) and decreased low single digits in North America (due to market co ntraction versus a prior year that benefited from pandemic - related consumption increases). Global market share of the home care category increased more than a point. Net earnings decreased 5% to $4.4 billion in fiscal 2022 as the increase in net sales was more than offset by a 190 basis - point reduction in net earnings margin. Net earnings margin decreased due primarily to a reduction in gross margin, partially offset by a reduction in SG&A as a percentage of net sales. The gross margin decrease was prima rily driven by an increase in commodity and transportation costs, and unfavorable mix caused by the growth of premium - priced, profit - accretive products that have lower than segment - average gross margins, partially offset by increased pricing. SG&A as a pe rcentage of net sales declined due to the positive scale benefits of the net sales increase and a reduction in marketing spending. BABY, FEMININE & FAMILY CARE ($ millions) 2022 2021 Change vs. 2021 Volume N/A N/A 1% Net sales $19,736 $18,850 5% Net earnings $3,266 $3,629 (10)% % of net sales 16.5% 19.3% (280) bps Baby, Feminine & Family Care net sales increased 5% to $19.7 billion in fiscal 2022 on a 1% increase in unit volume. Higher pricing increased net sales by 4%. Favorable mix increased net sales by 1% due to the disproportionate growth in North America and growth of premium tier products, both of which have higher than segment - average selling prices. Unfavorable foreign exchange decreased net sales by 1%. Organic sales increased 6%. Global market share of the Baby, Feminine & Family Care segment increase d 0.8 points. • Baby Care net sales increased mid - single digits on unit volume that was unchanged. Positive impacts of increased pricing and favorable mix (due to a higher proportion of sales in North America and the growth of premium pants and taped diape r products, all of which have higher than category - average selling prices) were partially offset by unfavorable foreign exchange. Organic sales increased high single digits. Volume increased high single digits in Latin America (due to innovation) and inc reased low single digits in North America (due to market growth and better on - shelf availability versus competitors), Europe (due to market growth) and IMEA (due to market growth versus a prior year impacted by pandemic - related contraction). This increase was fully offset by a mid - teens decline in Greater China (due to competitive activity) and a mid - single digit decline in Asia Pacific (due to market decline). Global market share of the baby care category increased nearly half a point. • Feminine Care net sales increased high single digits. Positive impacts of a low single digit increase in volume, increased pricing and positive mix (due to a higher proportion of sales in North America and the growth of premium products, including adult incontinence, b oth of which have higher than category - average selling prices) were partially offset by unfavorable foreign exchange. Organic sales increased double digits. The volume increase was driven by a high single digit increase in North America (due to innovatio n, distribution gains and market growth) partially offset by a low single digit decrease in IMEA (due to market decline). Market share of the feminine care category increased more than a point. The Procter & Gamble Company 23