CHURCH & DWIGHT CO., INC. Brad Schwier ACG Brad Schwier ACG

EXECUTIVE SUMMARY Church and Dwight Co., Inc. met or exceeded their financial goals in every quarter. In addition, the company recorded a 38% increase over the previous year. Combined sales for the company and it’s affiliates had a 13% increase over the previous year. Church and Dwight Co., Inc. met or exceeded their financial goals in every quarter. In addition, the company recorded a 38% increase over the previous year. Combined sales for the company and it’s affiliates had a 13% increase over the previous year.

INTRODUCTION James R. Craigie - President and Chief James R. Craigie - President and Chief Executive Officer since July Executive Officer since July Church & Dwight Co., Inc., was founded in 1846, and is headquartered in Princeton, New Jersey. Church & Dwight Co., Inc., was founded in 1846, and is headquartered in Princeton, New Jersey. Fiscal Year ending December 31, Fiscal Year ending December 31, Church & Dwight Consumer Products encompass four categories: Deodorizing and Household Cleaning, Laundry, Personal Care and International. Some of their well known principle products include Trojan Condoms, Arm & Hammer, Brillo, and First Response. Church & Dwight Consumer Products encompass four categories: Deodorizing and Household Cleaning, Laundry, Personal Care and International. Some of their well known principle products include Trojan Condoms, Arm & Hammer, Brillo, and First Response. During 2004, approximately 83% of the Company’s sales were generated in U.S. markets. The Company manufactures and markets mainly in the United States (including Puerto Rico) and Canada. The Consumer International segment sells a variety of personal care products in international markets, including France, the United Kingdom, Canada, Mexico, Australia and Spain. During 2004, approximately 83% of the Company’s sales were generated in U.S. markets. The Company manufactures and markets mainly in the United States (including Puerto Rico) and Canada. The Consumer International segment sells a variety of personal care products in international markets, including France, the United Kingdom, Canada, Mexico, Australia and Spain.

AUDIT REPORT Independent Auditors- Deloitte & Touche LLP, 2 Hilton Court, Parsippany, NJ Independent Auditors- Deloitte & Touche LLP, 2 Hilton Court, Parsippany, NJ Auditors expressed that the financial statements and analysis are in conformity with accounting principles generally accepted in the United States of America. Auditors expressed that the financial statements and analysis are in conformity with accounting principles generally accepted in the United States of America. Auditors also expressed that management’s assessment that the Company maintained effective internal control over financial reporting is fairly stated. Auditors also expressed that management’s assessment that the Company maintained effective internal control over financial reporting is fairly stated.

STOCK MARKET INFORMATION Price of stock on 12/31/ per share. Price of stock on 12/31/ per share. Twelve month trading range of stock from 01/01/04-12/31/04 is between and Twelve month trading range of stock from 01/01/04-12/31/04 is between and Dividends per share of 23 cents for Dividends per share of 23 cents for In it’s current situation I think it would be best to hold stock long- term with a stock value at it’s highest at the end of the accounting period. In it’s current situation I think it would be best to hold stock long- term with a stock value at it’s highest at the end of the accounting period.

INDUSTRY SITUATION AND COMPANY PLANS Over the past three years Church and Dwight has made three major acquisitions doubling the size of their business and transforming their product portfolio. These acquisitions also expanded the company’s international business. The integration delivered better than expected cost savings for the company and better cost structure, but resulted in a slowdown of internal growth factor. The company compensated by spending more money on marketing and product development. They will introduce a series of new products, one in every product category which will likely contribute to another year of solid sales for the company. (This information is offered on the company’s annual report in the company’s letter to stockholders). The company’s website offers information for each year showing an increased growth of stock value throughout 2004 chart is on next slide. (

COMPANY STOCK CHART Daily for 2004,2005,2006.

INCOME STATEMENT CHURCH & DWIGHT CO., INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME Year ended December 31, (Dollars in thousands, except per share data) Year ended December 31, (Dollars in thousands, except per share data) Net Sales $1,462,062 $1,056,874 $1,047,149 Net Sales $1,462,062 $1,056,874 $1,047,149 Cost of sales 928, , ,928 Cost of sales 928, , ,928 Gross Profit 533, , ,221 Gross Profit 533, , ,221 Marketing expenses 161,183 88,807 86,195 Marketing expenses 161,183 88,807 86,195 Selling, general and administrative expenses 200, , ,512 Selling, general and administrative expenses 200, , ,512 Income from Operations 171, , ,514 Income from Operations 171, , ,514 Equity in earnings of affiliates 15,115 28,632 21,520 Equity in earnings of affiliates 15,115 28,632 21,520 Investment earnings 3,225 1,322 1,793 Investment earnings 3,225 1,322 1,793 Other income (expense) - net 1,628 (313) (2,618) Loss on early extinguishment of debt (22,871) (4,127) — Loss on early extinguishment of debt (22,871) (4,127) — Interest expense (41,407) (20,400) (23,974) Interest expense (41,407) (20,400) (23,974) Income before minority interest and taxes 127, , ,235 Income before minority interest and taxes 127, , ,235 Minority interest Minority interest Income before taxes 127, , ,092 Income before taxes 127, , ,092 Income taxes 38,631 35,974 34,402 Income taxes 38,631 35,974 34,402 Net Income $88,808 $80,961 $66,690 Net Income $88,808 $80,961 $66,690 Weighted average shares outstanding (in thousands)— Basic 61,868 60,341 59,445 Weighted average shares outstanding (in thousands)— Basic 61,868 60,341 59,445 Weighted average shares outstanding (in thousands)— Diluted 68,066 64,508 62,714 Weighted average shares outstanding (in thousands)— Diluted 68,066 64,508 62,714 Net Income Per Share—Basic $1.44 $1.34 $1.12 Net Income Per Share—Basic $1.44 $1.34 $1.12 Net Income Per Share—Diluted $1.36 $1.28 $1.07 Net Income Per Share—Diluted $1.36 $1.28 $1.07

INCOME STATEMENT Appears to be a multistep I/S. Appears to be a multistep I/S. Gross Margin, Operating Income, and Net Income all increased from 2003 to Gross Margin, Operating Income, and Net Income all increased from 2003 to These results include accounting charges related to the Armkel and Unilever brand oral care acquisitions, as well as charges related to early redemption of debt. These results include accounting charges related to the Armkel and Unilever brand oral care acquisitions, as well as charges related to early redemption of debt.

BALANCE SHEET Assets=Liabilities+Stockholder’sEquity ,877,9981,317,968560, ,119,617681,123438,494 The company merged creating an increase in all of these balance sheet accounts. Liabilities increased the most which seems most effected by a large increase in long-term debts due to the mid-year acquisition of the remaining 50% interest in Armkel LLC not already owned.

STATEMENT OF CASH FLOWS Cash flows from operations are more than net income for the last two years. Cash flows from operations are more than net income for the last two years. The company is growing through investing in the purchase of new businesses, property, plant, and equipment. The company is growing through investing in the purchase of new businesses, property, plant, and equipment. The company’s primary source of finances using long-term loans. The company’s primary source of finances using long-term loans. Overall, cash has increased over the past two years. Overall, cash has increased over the past two years.

ACCOUNTING POLICIES Financial statements are prepared according to the Generally Accepted Accounting Principles. Financial statements are prepared according to the Generally Accepted Accounting Principles. Property, plant and equipment and other long-lived assets are reviewed periodically for possible impairment in accordance with SFAS No Property, plant and equipment and other long-lived assets are reviewed periodically for possible impairment in accordance with SFAS No Refers to Moody’s AA Corporate Bond Index for the Valuation of pension and postretirement benefit costs. Refers to Moody’s AA Corporate Bond Index for the Valuation of pension and postretirement benefit costs. Topics under Notes to Consolidated Income Statements include: 1. Accounting Policies, 2. Fair Value of Financial Instruments and Risk Management, 3. Inventories, 4. Property, Plant and Equipment, 5. Unilever Oral Care Business Acquisition, 6. Armkel, LLC, 7. Unaudited Pro Forma Results, 8. Goodwill and Other Intangibles, 9. Accounts Payable and Accrued Expenses, 10. Short-Term Borrowings and Long-Term Debt, 11. Income Taxes, 12. Benefit Plans, 13. Stock Option Plans, 14. Comprehensive Income, 15. Common Stock Voting Rights and Rights Agreement, 16. Commitments, Contingencies and Guarantees, 17. Segments, 18. Assets Held For Sale, 19. Unaudited Quarterly Financial Information. Topics under Notes to Consolidated Income Statements include: 1. Accounting Policies, 2. Fair Value of Financial Instruments and Risk Management, 3. Inventories, 4. Property, Plant and Equipment, 5. Unilever Oral Care Business Acquisition, 6. Armkel, LLC, 7. Unaudited Pro Forma Results, 8. Goodwill and Other Intangibles, 9. Accounts Payable and Accrued Expenses, 10. Short-Term Borrowings and Long-Term Debt, 11. Income Taxes, 12. Benefit Plans, 13. Stock Option Plans, 14. Comprehensive Income, 15. Common Stock Voting Rights and Rights Agreement, 16. Commitments, Contingencies and Guarantees, 17. Segments, 18. Assets Held For Sale, 19. Unaudited Quarterly Financial Information.

FINANCIAL ANALYSIS/ LIQUIDITY RATIOS Working Capital 136,25757,168 Current Ratio1.25 times1.38 times Receivable Turnover8.8 times9.83 times Average Days Sales Uncollected41.48 days37.13 days Inventory Turnover6.24 times8.78 times Average Days Inventory on Hand58.49 days41.57 days

FIANANCIAL ANALYSIS/ PROFITABILITY RATIOS Profit Margin 16.46% Asset Turnover Return on Assets4.7%7.2% Return on Equity15.86%18.46% 13.05%

FINANCIAL ANALYSIS/ SOLVENCY RATIOS Debt to Equity 2.35 times 1.55 times Currently the company is financed primarily by creditors. Currently the company is financed primarily by creditors.

FINANCIAL ANALYSIS/ MARKET STRENGTH RATIOS Price / Earnings Ratio 24.5 times 20.3 times This measurement reflects investor confidence in the company, investor’s confidence has increased since last year. This measurement reflects investor confidence in the company, investor’s confidence has increased since last year. Dividend Yield:.7% (page 56 of 10-k Annual Report) Company is focusing on growth so they’re paying less dividends. Company is focusing on growth so they’re paying less dividends.