HOME INVESTORS ANNUAL REPORT 2020 Download entire report DELIVERING OUR STRATEGY REJUVENATING SUSTAINABLE GROWTH In February 2020, we shared our strategy for rejuvenating sustainable growth, and our medium-term financial targets. This set out how we would: 1 Drive growth, rebuild a strong earnings model and outperform with mid-single digit organic top-line, mid 20’s margins and 7-9% EPS growth 2 Enable improved growth by investing in key capabilities to strengthen product innovation and enhance customer service, with sustainability at the heart of everything we do 3 Fund investment through delivery of an enhanced productivity programme and short-term reduction in operating margin 4 Deliver progressive improvements to our top-line growth through better product penetration, market share gains, and expansion into new places and new spaces 5 Manage capital allocation to support a strong balance sheet while actively migrating our portfolio to higher growth opportunities 'A BETTER HOUSE IN A GREAT NEIGHBOURHOOD' In Laxman’s fireside chat at the Morgan Stanley Global Consumer & Retail Conference in December 2020 he connected with international investors to outline Reckitt’s business transformation strategy and review its performance at the end of an eventful year. Watch the conference video Download the CEO’s statement During 2020 – in the first phase of our plan – we have executed well, against a highly dynamic market backdrop, achieving financial targets ahead of expectations. As outlined, we have taken the opportunity of stronger than expected revenue growth to reinvest in incremental growth opportunities. As a result, we have taken advantage of some positive market developments across the breadth of the portfolio. For example, COVID-19 has presented significant opportunities for our disinfectant brands, resulting in strong growth; over this period, we have worked to take Dettol and Lysol into 70 new markets, and new category adjacencies over 2020 and 2021, including to service business customers, in particular the providers of accommodation, travel services, public spaces and events, workspaces and shared facilities. Download our strategy OUR PERFORMANCE KEY HIGHLIGHTS Financial highlights Society Environment Financial highlights Net Revenue £ 14.0 bn +11.8% LFL growth4 Reported growth +8.9% Adjusted Operating Margin4 23.6 % -260bps Reported Operating Margin 15.4 % nm 3 Previous slide Next slide Excluding our Infant and Child Nutrition (IFCN) business – see Sustainability insights for details Calculated for 12 months ending 30 September 2020 Not meaningful Non-GAAP measures are defined on page 77 of the full annual report Download section in full Read more about our sustainability performance GLOBAL BUSINESS UNIT OVERVIEW HYGIENE Hygiene is the foundation of health and our purpose-led portfolio works to eliminate dirt, germs, pests and odours with market leading products such as Lysol, Finish, Mortein and Air Wick. Hygiene Net Revenue 2020 £ 5,816 m 2019 £ 5,031 m LFL Growth1 + 19.5 % Actual Growth + 15.6 % Adjusted Operating Profit1 £ 1,505 m Adjusted Operating Margin1 25.9 % Non-GAAP measures are defined on page 77 of the full annual report Previous slide .st0 { fill: #415a6c } .st1 { fill: #ff007f } Next slide .st0 { fill: #ff007f } .st1 { fill: #ff007f } 1 / 3 Download section in full MEGATRENDS MEETING THE NEEDS OF SOCIETY AND OUR STAKEHOLDERS Our business is responsive to the change that is happening around us. We’re working together to keep pace and meet people’s changing needs. As part of our business transformation, our strategy focuses on our purpose in the world, clearly articulating the reason we exist and the change we want to see that drives our growth. Reckitt works with a wide variety of stakeholders: our consumers and customers; investors and shareholders; our suppliers and partners; governments in support of a wider public health agenda; and, of course our 43,500+ strong team whose engagement drives our business. The trends we describe in our business strategy create challenges and opportunities for ourselves and all of our stakeholders. The megatrends Image Hygiene Urbanisation and global warming Image Health Growing demand for self care Image Health Sexual health crisis Image Nutrition Growing and ageing population Image Digital and e-commerce Technology proliferation Download section in full STAKEHOLDERS OUR PURPOSE DRIVES OUR PERFORMANCE Putting consumers first Fostering stronger customer relationships Engaging investors Inspiring and supporting our people Extending our impact with like-minded partners Investing in communities Building a sustainable future Download section in full Q&A TALKING TO OUR BUSINESS LEADERS Quotes icon IN 2020, WE ALL HAD TO ADAPT TO NEW REALITIES. At Reckitt, we stepped up to play our part in combatting the spread of the virus and we’ve also been hard at work to progress our business transformation plan. I wanted to take stock with the leadership team at the end of an eventful year. Laxman Narasimhan Chief Executive Officer Image Q1 What are your thoughts on our performance in 2020? Q2 For more recent joiners, what attracted you to Reckitt, and now you're here what's your take on its culture? Q3 What are your main challenges and opportunities? Download section in full DOWNLOADS LOOKING FOR SOMETHING IN PARTICULAR? arrow icon Full annual report 2020 arrow icon Strategic report arrow icon Chairman's statement arrow icon Chief Executive's statement arrow icon Corporate governance arrow icon Directors' remuneration report For an update to the CEO's remuneration please click here arrow icon Financial statements arrow icon Sustainability insights ADDRESS Registered office at 103 - 105 Bath Road, Slough, Berkshire, SL1 3UH Registered in England & Wales, No 6270876 RECKITT.COM About us Brands Careers Investors Sustainability Newsroom COP26 INVESTORS Results and presentations Investor news Regulatory news Financial calendar Annual general meetings Annual Report 2020 Share price tools Your shareholding Corporate governance Investor contacts MORE Terms and Conditions Privacy Policy Cookie policy Modern Slavery Act Statement © Copyright Reckitt Benckiser Group PLC. 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