Procter & Gamble Russia – Key Facts

A Multinational Company
P&G is a global company with the annual turnover of $68 bln in fiscal year 2005/2006 and with 1.6 mln shareholders around the globe. P&G operates in more than 160 countries and employs around 135,000 (including the Gillette business).

P&G in Russia
Operating in Russia since 1991, P&G Russia is now one of the fastest developing subsidiaries of the Procter & Gamble Company. It has in Russia a solid portfolio of over 70 P&G brands, the key of them are Ariel, Tide, Fairy, Blend-a-med, Pampers, Always, Pantene, Head & Shoulders, Wella, Gillette and possesses leading market shares in 3/4 of the categories where it operates, esp. detergents, shampoos and diapers.

Major Local Manufacturer
Ca. 50% of all P&G products sold in the Russian consumer market are already manufactured locally. P&G owns the OOO "Procter & Gamble - Novomoskovsk" plant in Tula region and turned it into one of the most significant detergent manufacturers in CIS. Today overall investment of P&G in Novomoskovsk alone is close to $250 millions. During this period new production lines were installed in the plant for Ariel, Tide, Myth and Tix detergents, Comet cleaning powder, Ace liquid bleach, Fairy dishwashing liquid, Lenor fabric conditioner and Mr. Proper washing liquid. OOO "Procter & Gamble - Novomoskovsk" is by far the biggest producer of laundry and cleaning products in Russia. New production line for diapers manufacturing was opened in September, 2005.

Another plant producing shampoo and hair colorants, Capella, in Nizhniy Novgorod region has arrived with the Wella acquisition. As a result of P&G/Gillette merger the Company now has a third manufacturing site – ZAO Petersburg Products International producing disposable blades and razors.

Important Local Employer
P&G directly employs in Russia more than 2,300 people. There are around 1000 workers at Novomoskovsk plant with permanent contracts and more than 800 people have temporary contracts. Local employees including managers in very senior roles run the majority of the business. In addition, P&G operations trigger jobs for more than 14,000 people at P&G`s suppliers and business partners in Russia. For example, regional companies engaged in P&G products distribution employ over 10,000 people.

Major Exporter
Ca.25% of OOO "Procter & Gamble - Novomoskovsk" output is exported to neighboring countries. OOO Kapella and ZAO Petersburg Products International also manufacture products for neighbouring countries and Europe.

Important Taxpayer
Since the start of its activities in Russia, P&G contributed more than $1.2 billion US dollars in taxes and duties to federal, local and regional budgets.

New Big Initiatives in Russia

P&G successfully entered the mid-tier sector where it was not operating previously: it launched in Russia new Shamtu shampoo, Blendax toothpaste, Always Classic, Discreet and Naturella feminine protection products. With the introduction of Tix detergent P&G is now present in the low tier as well.

Good Corporate Citizen
Over $ 5,5 million of charitable contributions were made by P&G over the last years. In particular,

• In 1996-2000 P&G contributed $ 3 million for the reconstruction and equipment of infection diseases ward in the Novomoskovsk hospital and purchase of the modern X-Ray equipment that was installed in the same city.
• In 2001 the company donated $430,000 to repair and develop the water supply systems in Novomoskovsk.
• In 2002 P&G started a new social program to support the healthy lifestyle among Russian children and youth named “P&G for Healthy Life Style – P&G за здоровый образ жизни”.
• In 2003-05 P&G sponsored the construction of a new sport center in Novomoskovsk worth $600.000.
• In 2004-05 P&G invested $300.000 in establishing the health improving children center “Healthy Generation”; the rollerdrom for triathlon children’s sport school was constructed in Dzerzhinsk, Nizhniy Novgorod region.
• In 2006 P&G funded the purchase of the machine for artificial lung ventilation for a maternity home in Dzerzhinsk, Nizhegorodsky Region.
• In 2006 P&G brands Ariel, Tide, Myth, Lenor, Ace, Comet, Mr. Proper ran a charity campaign “Cordial help” aimed at helping children with cardiac defects. In total in 2005-2006 P&G allocated over 660,000 USD for various social projects in Tula and Nizhegorodsky Regions and in Moscow, aimed at helping children in need.