BUILDING A CLEANER HEALTHIER WORLD

Annual Report and Accounts 2022

01

Reckitt Annual Report and Accounts 2022

STRATEGIC REPORT

GOVERNANCE

FINANCIAL STATEMENTS

CONTENTS

ABOUT THIS REPORT

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  1. Investment Case
  2. At a Glance
  1. Chair's Statement
  1. Chief Executive Officer's Statement
  1. Culture and Inclusion
  1. Our Strategy
  2. Our Business Model
  3. Market Context

16 Our Sustainability Approach and Performance

18 Key Performance Indicators

  1. Progress Against Our Strategy: Hygiene
  1. Progress Against Our Strategy: Health
  1. Progress Against Our Strategy: Nutrition
  1. Focus on: Innovation
  1. Focus on: Executional Resilience
  1. Focus on: Digital Transformation
  1. Focus on: Our Productivity Journey

41 Focus on: Human Health and Planetary Health

44 Focus on: Winning in Attractive Categories

  1. Stakeholder Engagement
  1. TCFD Summary
  1. S172 Statement
  1. Non-FinancialInformation Statement
  1. Group Financial Review
  1. Risk Management
  1. Our Viability Statement

GOVERNANCE

88 Corporate Governance Report

  1. Board Leadership and Company Purpose
  1. Division of Responsibilities
  1. Composition, Succession and Evaluation
  1. Nomination Committee Report
  1. Audit Committee Report
  1. CRSEC Committee Report
  1. Directors' Remuneration Report
  1. Report of the Directors
  1. Statement of Directors' Responsibilities

FINANCIAL STATEMENTS

  1. Independent Auditor's Report
  1. Financial Statements
  1. Shareholder Information

Culture and Inclusion

For further information see page 9

Our Strategy

For further information see page 12

Our Business Model

For further information

see page 13

02

Reckitt Annual Report and Accounts 2022

STRATEGIC REPORT

GOVERNANCE

FINANCIAL STATEMENTS

INVESTMENT CASE

REASONS TO INVEST

RIGHT CATEGORIES

MARKET-LEADING BRANDS

Large addressable

Trusted and loved brands

market, attractive

that innovate and grow

growth and margins

across large demand spaces

ATTRACTIVE

EARNINGS MODEL

High gross margin business driving a strong earnings model

SUPERIOR EXECUTION

Relentless focus on execution

SUSTAINABILITY EMBEDDED

Sustainability embedded in how the company runs

OWNERSHIP CULTURE

Strong and evolving culture: run by owners

HYGIENE1

#1 globally #1 globally #1 globally #3 globally #3 globally

HEALTH1

#1 globally #1 globally #1 globally #1 Europe

#2 US

NUTRITION1

#1 globally #2 globally

ORGANIC REVENUE GROWTH

IMPROVEMENT IN CUSTOMER

MID-SINGLE

RELATIONSHIP SCORE

DIGIT

+100bps

MEDIUM -TERM TARGET

SHARE OF MARKETS WHERE

ADJUSTED OPERATING

RECOGNISED AS TOP TIER

BY SUPPLIER PARTNERS2

PROFIT (AOP) MARGIN

+6 positions

MID-20s

BY THE MID -20S

MEDIUM -TERM TARGET

REACHING RECKITT'S

HIGHEST RANK IN US KANTAR

POWERRANKING SURVEY

SINCE 2015 3

NET REVENUE FROM MORE

SUSTAINABLE PRODUCTS

24.4%

REDUCTION IN ABSOLUTE CARBON EMISSIONS IN OUR

OPERATIONS SINCE 2015

66%

EMPLOYEE

SHAREHOLDERS

c.50%

  1. Claims based on information aggregated and reported in part from data supplied by Nielsen through its Retail Measurement Services and in part from data inputs from other suppliers, in each case, for the relevant category, geographic focus and latest available MAT
  2. Based on Advantage Group 2022 survey of retailers. 100bps increase in markets rated top tier, from 43.7% in 2021 to 44.7% 2022. Share of markets excludes US
  3. Kantar USA PowerRanking overall composite score 2016-2022

03

Reckitt Annual Report and Accounts 2022

STRATEGIC REPORT

GOVERNANCE

FINANCIAL STATEMENTS

AT A GLANCE

FINANCIAL HIGHLIGHTS

STRATEGIC HIGHLIGHTS

SUSTAINABILITY HIGHLIGHTS

LIKE- FOR- LIKE (LFL)

NET REVENUE GROWTH¹

7.6%

2021: 3.5%

ADJUSTED OPERATING

MARGIN EXCL . IFCN CHINA¹

23.8%

2021: 22.9%

ADJUSTED TOTAL EPS¹

DILUTED

341.7p

2021: 288.5p

FULL YEAR DIVIDEND

183.3p

2021: 174.6p

IFRS NET REVENUE GROWTH

9.2%

2021: -5.4%

IFRS OPERATING MARGIN

22.5%

2021: -6.1%

IFRS TOTAL EPS

DILUTED

324.7p

2021: -4.5p

CATEGORY MARKET UNITS (CMUS)

HOLDING OR GAINING MARKET SHARE

62%

2021: 62%

SHARE OF MARKETS WHERE RECOGNISED

AS TOP TIER BY SUPPLIER PARTNERS2

+100bps

2021: +930bps

TOTAL RECKITT SHARE OF

TOTAL DISTRIBUTION POINTS 3

+70bps

2021: +110bps4

  1. Adjusted and other non-GAAP measures, definitions and terms are defined on page 75
  2. Based on Advantage Group 2022 survey of retailers. 100bps increase in markets rated top tier, from 43.7% in 2021 to 44.7% 2022. Share of markets excludes US
  3. Increase from 24.0% (YTD Oct 2021) to 24.7% (YTD Oct 2022)
  4. Increase from 22.2% (Dec 2020) to 23.3% (Nov 2021)

NET REVENUE FROM MORE

SUSTAINABLE PRODUCTS

24.4%

2021: 24.9%

ABSOLUTE REDUCTION IN GREENHOUSE GAS

EMISSIONS FROM OPERATIONS SINCE 2015

66%

2021: 66%

INVESTED IN FIGHT FOR

ACCESS FUND IN 2022

£32m

2021: £38m

04

Reckitt Annual Report and Accounts 2022

STRATEGIC REPORT

GOVERNANCE

FINANCIAL STATEMENTS

AT A GLANCE CONTINUED

OUR GLOBAL BUSINESS UNITS

HYGIENE 41%

of Group net revenue

ADJUSTED

NET REVENUE

OPERATING PROFIT

£5,960m

£1,214m

-3.1% LFL net revenue growth

20.4% adjusted operating

0.8% IFRS net revenue growth

profit margin

CATEGORY PROFILE

GEOGRAPHICAL PROFILE

Surface & Disinfection

North America

Auto Dishwash

Europe/ANZ

Air Care

Developing Markets

Fabric Additives

Lavatory Care

Pest Control

Other

HEALTH 42%

of Group net revenue

ADJUSTED

NET REVENUE

OPERATING PROFIT

£5,992m

£1,648m

14.7% LFL net revenue growth

27.5% adjusted operating

18.6% IFRS net revenue growth

profit margin

CATEGORY PROFILE

GEOGRAPHICAL PROFILE

OTC

North America

Germ Protection

Europe/ANZ

Intimate Wellness

Developing Markets

VMS

Personal Care

NUTRITION 17%

of Group net revenue

ADJUSTED

NET REVENUE

OPERATING PROFIT

£2,501m

£577m

22.9% LFL net revenue growth

23.1% adjusted operating

10.2% IFRS net revenue growth

profit margin

CATEGORY PROFILE

GEOGRAPHICAL PROFILE

Infant & Child

North America

Specialty & Adult

Europe/ANZ

Developing Markets

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Reckitt Benckiser Group plc published this content on 22 March 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 March 2023 09:20:10 UTC.