We achieved P&G’s long- term growth objectives  a year earlier than  projected. We are increasing free cash flow.  Cash generation is a key indicator of a company’s underlying  health, and P&G’s management is focused on creating leadership, sustained cash flow growth in  each of our business units. Free cash flow – operating cash after capital spending – was $6.1 billion,  up 83% from last year and more than triple the free cash flow generated two years ago. Capital  spending improvement has been a key driver. Our objective was to reduce capital spending to 6%  of sales by fiscal 2004, and we’ve exceeded that goal two years ahead of schedule. We are now  resetting our capital spending target to below 5% of sales, and continue to look for opportunities  to improve asset efficiencies.  We are delivering superior total shareholder return (TSR).  TSR is the key business unit metric  upon which P&G’s business planning and management compensation are based. The combination  of strong earnings growth and focus on cash has resulted in superior business returns over the past  year. P&G’s share price has responded accordingly, outpacing the major indices of Dow Jones and  the S&P 500. These are substantial achievements, in tough economic times, in a very competitive global market- place. These are the kinds of results P&G has delivered consistently and reliably for decades. This  is the level of performance that P&G shareholders expect and also that we – the men and women  of P&G – expect of ourselves. I want to commend the dedication, discipline and creativity of P&G  people who delivered these results. Free Cash Flow  (in billions of dollars) 2000 2001 2002 Capital Spending (as % of sales) 2000 2001 2002 P&G DJIA S&P 500 7.6% 6.3% 4.2% Total Shareholder Return (indexed versus July 1999) 1999 2000 2001 J D J D J D J 50 100 150 1.7 3.3 6.1 3.3 6.1