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

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

3. Business Overview

4. 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

5. 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

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

7. 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)

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

9. 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

10. Annual Report and Financial Statements

11. Reports available online
Annual Report available at: – Investors & media

12. Annual Report and Financial Statements
Contents:

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

14. 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

15. 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

16. 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

17. 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

18. Comparison Ratios

19. 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.

20. Key Performance Indicators (KPIs)

21. 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: constant 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

22. Performance versus the competition 3 year view
Underlying NR / NI growth
Company
Net Revenue Growth % CAGR
Net Income / EPS Growth % CAGR
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

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

24. Any Questions?