Reckitt Benckiser Business Case Study Finance Presentation Presented by: Karen Duong Date: May 2011

Reckitt Benckiser – Business Case Study Business Overview Annual Report and Financial Statements Comparison Ratios Questions

Business Overview

Vision Passionately delivering ever better solutions in household cleaning and health & personal care to customers and consumers wherever they may be for the ultimate purpose of creating shareholder value

Business Overview – Geographic Areas Reckitt Benckiser is a truly global company: - Operations in 60+ countries - Sales in c. 200 countries world-wide - 49 Manufacturing facilities world-wide - c. 25,000 employees UK listed. Top 25 of FTSE 100 Market Cap £25bn

Business Overview – Categories Health & Personal Care Fabric Care Surface Care Dishwashing Home Care

Business Overview – Market Position WORLD No.1 Category Brand Surface Care Cillit Bang, Lysol Germ Protection Dettol, Lysol Fabric Treatment Vanish Depilatories Veet Automatic Dishwashing Finish/Calgonit Sore Throat (medicated) Strepsils Water Softeners Calgon Lavatory Care Harpic/Lysol Food French’s Sexual Wellbeing Durex Footcare Scholl WORLD No.2 Category Brand Air Care Airwick Pest Control Mortein Garment Care Woolite Cougn relief Mucinex REGIONAL No.1/No.2 Category Brand Analgesics Nurofen (Europe) Cold/Flu Lemsip (UK) Upper GI Gaviscon (Europe)

Powerbrands are the key driver of RB’s growth Powerbrands are 69% of RB net revenues

Business Overview - Summary Geographical segments: Europe North America / Australia & New Zealand Developing Markets Category segments: Health & Personal Care Fabric Care Surface Care Dishwashing Home Care 19 Power Brands Increasingly the focus of the business Makes up +69% of company net revenue

Annual Report and Financial Statements

Reports available online Annual Report available at: http://www.reckittbenckiser.com – Investors & media

Annual Report and Financial Statements Contents:

Financial Statements – Independent Audit Report In our (‘PwC’) opinion… the Group financial statements give a true and fair view, in accordance with IFRS…

Financial Statements – Group Income Statement for the year ended 31 December 2010 Net Revenue less: Cost of Goods Sold = Gross Margin less: Marketing expense and commercial overheads = Operating Profit less: Interest and Tax = Net Income for the year

Financial Statements – Group Balance Sheet as at 31 December 2010 Non-current assets plus: Current Assets = Total Assets Current Liabilities plus: Non-Current Liabilities = Total Liabilities Total Assets less: Total Liabilities = Net assets = Total equity

Financial Statements – Group Cash Flow Statement for the year ended 31 December 2010 Net cash flows from: Operating activities plus: Investing activities plus: Financing activities = Net cash flow for the year

Annual Report and Financial Statements - Summary Independent Audit Report independent third party opinion about the Company’s Financial Statements Income Statement (Profit & Loss) records the Company’s financial performance between two points in time Balance Sheet captures the Company’s financial position at a single point in time difference between market capitalisation and balance sheet equity is internally generated goodwill Cash Flow Statement operating activities investing activities financing activities

Comparison Ratios

Comparison Ratios Why use ratios? Understand business trends over time; Used as ‘key performance indicators’ to measure business performance; Understand where problems may exist - and how to fix them; Drive accountability; and Benchmark against competitors.

Key Performance Indicators (KPIs)

2010: +15% @ constant (+17% @ actual) Total business continues to perform strongly 11th straight year of above industry average growth Net revenue (£bn) Adj.* net income (£m) 2010: +5% LFL ex-RBP Total Group: +6% LFL 2010: +15% @ constant (+17% @ actual) NOTE: Net income adjusted to exclude the impact of exceptional items 2004 restated following the adoption of IFRS 2010 net revenue growth excludes the acquisition of SSL

Performance versus the competition 3 year view Underlying NR / NI growth 2008-2010 Company Net Revenue Growth % CAGR 2008-10 Net Income / EPS Growth % CAGR 2008-10 Procter & Gamble +3% Colgate +6% +9% Clorox +4% Henkel +2% +10% Unilever +5% Peer Group Average Reckitt Benckiser +8% +22% Source: RB, company data, analyst forecasts Net revenue growth at constant FX and adjusted to exclude mergers/acquisitions/disposals and major corporate restructurings

Comparison Ratios - Summary KPI’s Net Revenue growth Gross Margin % Powerbrands % of Net Revenue Media Investment % of Net Revenue

Any Questions?