How new premium categories can generate additional retailer turnover and profit Reckitt Benckiser Russia February 2011

How new, premium categories build incremental turnover and profit Add incremental categories to existing big categories: Fabric Treatment Build completely new categories: Automatic Dishwashing Expand category consumption through new, wider usage Air Care 3 strategies for HH Cleaning categories

One purchase on top of Laundry Detergent increases the value of the shopper in 2 times Laundry Detergent* Only (9 washes) x ** х 3 = 180 RUR * Premium Laundry Detergent (Key Player #1) ** Average shelf price, RUR (AC Nielsen Russia, 2010) 180 RUR Laundry Detergent* + Vanish Liquid (9 washes) 320 RUR Laundry Detergent* + Vanish Powder (9 washes) 445 RUR x 2.5 Laundry Detergent Laundry Detergent Laundry Detergent 60** х 3 = 180 RUR 140** Laundry Detergent Laundry Detergent Laundry Detergent 60** х 3 = 180 RUR 265** Laundry Detergent Laundry Detergent Laundry Detergent

One purchase on top of Laundry Detergent increases the value of the shopper in 2 times Laundry Detergent* Only (9 washes) x ** х 3 = 180 RUR * Premium Laundry Detergent (Key Player #1) ** Average shelf price, RUR (AC Nielsen Russia, 2010) 180 RUR Laundry Detergent* + Vanish Liquid (9 washes) 320 RUR Laundry Detergent* + Vanish Powder (9 washes) 445 RUR x 2.5 Laundry Detergent Laundry Detergent Laundry Detergent 60** х 3 = 180 RUR 140** Laundry Detergent Laundry Detergent Laundry Detergent 60** х 3 = 180 RUR 265** Laundry Detergent Laundry Detergent Laundry Detergent

One purchase on top of Laundry Detergent increases the value of the shopper in 2 times Laundry Detergent* Only (9 washes) x ** х 3 = 180 RUR * Premium Laundry Detergent (Key Player #1) ** Average shelf price, RUR (AC Nielsen Russia, 2010) 180 RUR Laundry Detergent* + Vanish Liquid (9 washes) 320 RUR Laundry Detergent* + Vanish Powder (9 washes) 445 RUR x 2.5 Laundry Detergent Laundry Detergent Laundry Detergent 60** х 3 = 180 RUR 140** Laundry Detergent Laundry Detergent Laundry Detergent 60** х 3 = 180 RUR 265** Laundry Detergent Laundry Detergent Laundry Detergent

The potential for this market in Russia: +7,0 bn RUR retail sales Consumption x2 (+ 3,5 bn) Washes per week Consumption frequency** 6 % of HH using category* Laundry detergents Fabric softeners Fabric Treatment Driving PENETRATION Penetration x2 (+ 3,5 bn) Increasing CONSUMPTION * Source: GFK Russia, 2009 ** Source: TNS Russia, U&A FT Sales  3,5 bn RUR (AC Nielsen Russia, Total National) More Homes More Washes

The potential for this market in Russia: +7,0 bn RUR retail sales Consumption x2 (+ 3,5 bn) Washes per week Consumption frequency** 6 % of HH using category* Laundry detergents Fabric softeners Fabric Treatment Driving PENETRATION Penetration x2 (+ 3,5 bn) Increasing CONSUMPTION * Source: GFK Russia, 2009 ** Source: TNS Russia, U&A FT Sales  3,5 bn RUR (AC Nielsen Russia, Total National) More Homes More Washes

We actively build the market through strong advertising and co-marketing programs Laundry Detergent Key Players Media Weights 2010, TRP's In-Store Shelf Extension Programs  Expand FT space to increase visibility and remind shoppers to buy Shelf share for FT = shelf share for FS (equal value sales) Signage for category highlight and easy navigation Full line stand displays in high traffic areas  Increase cross purchase with Laundry Detergents Hang (parasite) displays in LD section * Source: TNS Russia, 2010

We actively build the market through strong advertising and co-marketing programs Laundry Detergent Key Players Media Weights 2010, TRP's In-Store Shelf Extension Programs  Expand FT space to increase visibility and remind shoppers to buy  Increase cross purchase with Laundry Detergents * Source: TNS Russia, 2010

How new, premium categories build incremental turnover and profit Add incremental categories to existing big categories: Fabric Treatment Build completely new categories: Automatic Dishwashing Expand category consumption through new, wider usage Air Care 3 strategies for HH Cleaning categories

One purchase on top of ADW Detergent increases the value of the shopper in 3.5 times Hand dishwashing Only x ** х 3 = 213 RUR ** Average shelf price, RUR (AC Nielsen Russia, 2010) 213 RUR 807 RUR 1049 RUR x 4.9 Hand Dishwashing Liquid H.D. L. 807 RUR** 1049 RUR** ADW System ADW Multifunction

Automatic Dishwashing – a category in its baby years … but with mid/high value consumers In Russia - 52 mio households 9 from 10 housewives wash dishes daily by hands* *U&A TNS, Russia, 2010 ** Rosstat, 2009

ADWD market is growing in a long run (+9% growth ’10 vs ’09), healthy recovering after the crisis Expected market growth % Automatic Dishwashing – a category with immense potential +15%+11% +23%

Finish is the only brand investing in ATL and growing ADW category Finish has SOV 100% in this category investing in TV practically equally to the biggest advertiser in Laundry Detergent category and 30% bigger than biggest advertiser in Hand Dishwashing category. Finish TVC is on air every year with positive tendency to increase GRP and NR of contacts Cooperation, attractive call-to-action proposal of ADWM with WGM/WGS in each TVC TRPs

We create demand outside the Food Retail Trade – by stimulating sales of Dishwashing machines

New specific March, 8 copy (in partnership with BSH)

We create demand outside the Food Retail Trade – by stimulating interest and sales of Dishwashing machines Mechanics of promo in mass retail: Buy RB products  participate creative contest  Win a Dishwasher Washing Machine

How new, premium categories build incremental turnover and profit Add incremental categories to existing big categories: Fabric Treatment Build completely new categories: Automatic Dishwashing Expand category consumption through new, wider usage Air Care 3 strategies for HH Cleaning categories

Air Care category in Russia today is about fighting bad odors Source: Nielsen, FY2010

Air Care category tomorrow is bringing nice fragrance creating special atmosphere at home

Russia Air Care market vs France and UK 0,70 4 5,5 per capita HUGE POTENTIAL 14% 29% Source: Nielsen, FY2010 HUGE POTENTIAL

Air Care shelves today

Air Care shelves of the future

Air Care formats diversity to meet all consumer needs Luxury fragranceAutomatic Spays Electrical (plug in) Aerosols of new generation 100% pure air Nature-Inspired Fragrance Candles

How new premium categories can generate additional retailer turnover and profit Reckitt Benckiser Russia February 2011