1. Reckitt Benckiser Business Case Study Finance Presentation Presented by: Sumith John Date: May 2010

2. 2 Net revenue (£bn) Per annum growth: +9% @ constant Per annum LFL growth: +8% @ constant More than doubling the size of RB 2004 restated following the adoption of IFRS Ten straight years of double the industry average Net Revenue growth

3. 3 Ten straight years of double the industry average Net Income growth Adj. net income* (£m) Per annum growth: +22% @ actual Per annum growth: +19% @ constant 7-fold increase in RB’s net income * Adjusted to exclude the impact of exceptional items

4. How do we achieve such outstanding results… Reckitt Benckiser is about passionately delivering better solutions in Household, Health and Personal care to customers and consumers, wherever they may be, for the ultimate purpose of creating shareholder value.

5. What is our portfolio…

6. Finance Charter “The purpose of finance is to be a business partner that adds value to the organization” 1. Provide accurate and timely information 2. Challenge to enable better business decisions 3. Manage procedures that safeguard company’s assets 4. Maintain low cost transactional services

7. Reckitt Benckiser – Business Case Study Business Overview Annual Report and Financial Statements Comparison Ratios ANZ Finance Team Questions

8. Business Overview

9. Business Overview – Geographic Areas Reckitt Benckiser is a truly global company: - Operations in 60+ countries - Sales in c. 180 countries world-wide - 49 Manufacturing facilities world-wide - c.22,000 employees UK listed. Top 25 of FTSE 100 Market Cap £ 24 bn

10. Business Overview – When you meet us… RB people are at the heart of the company's success. We come from all over the world and work all over the world We thrive on responsibility, take ownership, are straight speaking and have an intense drive for progress and action. We act fast and are compelled to outperform wherever we focus, even in corporate responsibility, where Reckitt Benckiser has the most ambitious carbon reduction programme in the industry. We bring together entrepreneurial people who want to make their mark and consumer products history. We execute our strategy by being brave, focused and driven. Always going further, faster and higher.

11. 17 Powerbrands lead our portfolio of household, health and personal care products, and they have the No.1 or No. 2 position globally in most categories - a unique position. Known, trusted and sought out, RB's brands are not just famous names, they are part of people's lives. The 17 Powerbrands are Vanish, Calgon, Woolite, Lysol, Bang, Harpic, Finish, Air Wick, Mortein, Strepsils, Mucinex, Nurofen, Gaviscon, Dettol, Veet, Clearasil, French's Business Overview – What Brands…

12. Business Overview – Five Core Categories Fabric Care Surface & Dish Home Care Health Care Germ & Personal Care

13. Business Overview – Market Position WORLD No.1 CategoryBrand Surface CareCillit Bang, Lysol Germ ProtectionDettol, Lysol Fabric TreatmentVanish DepilatoriesVeet Automatic DishwashingFinish/Calgonit Sore Throat (medicated)Strepsils Water SoftenersCalgon Lavatory CareHarpic/Lysol WORLD No.2 CategoryBrand Air CareAirwick Pest ControlMortein Garment CareWoolite REGIONAL No.1/No.2 CategoryBrand AnalgesicsNurofen (Europe) Cold/Flu Lemsip (UK) Upper GI Gaviscon (Europe)

14. Business Overview – Market Position World champions 17 Power Brands are either No.1 or No.2 worldwide

15. 15 Old basis (18 Powerbrands) New basis (17 Powerbrands*) With Powerbrands as the clear growth driver Powerbrands have grown >12% pa compared to 7% pa for RB excluding RBP Powerbrands have represented 84% of RB’s growth over the period 2001-2009 * Includes brands in transition % of NR from Powerbrands

16. 16 Creating a great portfolio of brands Net revenues (£m) & net revenue growth % in 2009 Total PB 75% % base business NR Global Jewels 44% % base business NR Global Jewels + HC 57% % base business NR Mucinex growth 08-09 LFL Finish Airwick Vanish Dettol Lysol Nurofen Mucinex Strepsils Gaviscon Veet Calgon Cillit Bang Mortein French’s Harpic Woolite Clearasil ^6% ^-4%^4%^6%^28%^10%^17%^10%^17%^10%^4%^2%-4%^2%^6%^10%^6%

17. 17 All internal areas have contributed to growth Net revenue growth 1999-2009, at constant CAGR: +13% LFL: +13% CAGR: +36% LFL: +36% CAGR: +9% LFL: +7% CAGR: +7% LFL: +6%

18. 18 The power behind the Powerbrands

19. Business Overview - Summary Geographical segments: −Europe −North America / Australia & New Zealand −Developing Markets Category segments: −Fabric Care −Surface & Dish −Home Care −Health Care −Germ & Personal Care 17 Power Brands −Increasingly the focus of the business −Makes up +75% of company net revenue

20. Annual Report and Financial Statements

21. Annual Report and Financial Statements 2009

22. Financial Statements Annual Report and Financial Statements 2009

23. Reports available online Annual Report and Shareholders’ Review available at: http://www.rb.com Investor Information

24. Financial Statements – Group Income Statement for the year ended 31 December 2009 Profit & Loss Statement Net Revenue less: Cost of Goods Sold = Gross Margin less: Marketing expense and commercial overheads = Operating Profit less: Interest and Tax = Profit for the year

25. Financial Statements – Group Balance Sheet as at 31 December 2007 Balance Sheet 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 Total equity £ 4 billion Market Cap £ 24 billion Internally generated goodwill £ 20 billion

26. Financial Statements – Group Cash Flow Statement for the year ended 31 December 2007 Cash Flow Statement Net cash flows from operating activities plus: Investing activities plus: Financing activities = Net cash flow for the year

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

28. Annual Report and Financial Statements - Summary 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 Independent Audit Report −independent third party opinion about the Company’s Financial Statements

29. Comparison Ratios

30. Why use ratios? Understand business trends over time; Used to measure business performance; Understand and detect where problems may exist; Devise means to fix the problems; Drive accountability; and Benchmark against competitors.

31. Key Performance Indicators (KPI)

32. A good year in tough conditions Leading to 10th straight year of above industry average growth

33. Consistent gross margin progression Full year margins 2005-2009 (%)

34. Consistent operating margin progression Full year margins 2005-2009 (%)

36. Total Dividends paid £m

37. Comparison Ratios - Summary Key Performance Indicators −Net Revenue growth −Gross Margin % −Operating Margin % −Net Working Capital Ratio −Total Dividends paid

38. ANZ Finance Team

39. Prepare Monthly Results Submit to CHQ Maintain General Ledger Maintain Fixed Assets Ledger Review & file Tax Manage Insurance Reconcile Bank Accounts Liaison with HO Treasury Prepare & report to Audit Finance Director ANZ Ian Clark Financial Controller Peter Bryden Financial Accountant Greg Montgomery Financial Accountant Joel Lieschke Assistant Financial Accountant Tammy Nguyen Accounts Payable / Rec Supervisor Corrine Parsons Accounts Clerk Melissa Stone Accounts Clerk Sushil Napier Accounts Clerk Kim Abbott Accounts Clerk Part- time Ivana Anstey Payroll & Remunerations Manager Wayne Farlow Payroll Officer – Part- time Ivana Anstey Supply Controller Michael Biernat Supply Chain Analysis Manager Karen Duong Supply Business Analyst Ahmed Hassan Supply Business Analyst Robert Tuwera Commercial Controller Todd Shelly Commercial Analysis Manager Sumith John Commercial Business Analyst Zankar Pandya Commercial Analysis Manager Alan Rogers Commercial Business Analyst Michael Ching Finance Director – NZ Kirstin Hayes Commercial Analyst Heidi Johnson (Mat Leave) Patti Schefter Prepare Factory Budgets Prepare Supply Forecasts Monthly Factory Reporting COGS Information for NPD Standard Cost Maintenance Inventory Management Planning & forecasting Pricing review & analysis Review Marketing spend Review Marketing ROI Category finance review Develop new product project review & analysis

40. Any Questions?