Reckitt Benckiser Group Plc · LSE:RKT
Reckitt Benckiser — Q3 2023 Earnings Presentation
28 slides from Reckitt Benckiser's earnings presentation, Oct 25, 2023
Slide 1: Q3 Trading and Strategic Update
recki? Q3 TRADING AND STRATEGIC UPDATE Kris Licht Chief Executive Officer — y neuriva a ge > = YY
Slide 2: Disclaimer
DISCLAIMER Cautionary note concerning forward-looking statements This presentation contains statements with respect to the financial condition, results of operations and business of Reckitt Benckiser Group pic and the Reckitt group of companies (the “Group") and certain of the plans and objectives o
Slide 3: Q3 Trading Update
is ‘ Mucine | ® . reckitt et poe om UPDATE
Slide 4: Health and Hygiene strong growth, Nutrition rebasing
03 - HEALTH AND HYGIENE STRONG GROWTH. NUTRITION REBASING ax" ==> xD GED LFL NR growth +3.4% LFL NR growth +8.1% LFL NR growth +5 Ay, LFL NR growth “11.9% Volum: Volum Volume Volum Aly 3.4% +0.3% 15.7% Price / mit Price / mix Price | mix Price | mix +75 +11.5% +51, +3.8% Q3 Q3 net revenue Q3 net rev
Slide 5: Strategic Update
6 STRATEGIC UPDATE
Slide 6: A strong business...
A STRONG BUSINESS... KA “N Excellent brand portfolio for value creation ==) Enhanced returns to shareholders oO, YS a Purpose and culture fit for the future Continuously sharpen and improve » WITH ALL THE ATTRIBUTES TO RETURN TO LEADING TSR
Slide 7: A strong business: purpose and culture
A STRONG BUSINESS... Purpose and culture fit for the future
Slide 8: Our purpose and our culture
>” Our purpose Our culture = Titer ¢ PROTECT, HR HEAL NURTURE sm FIT FOR THE 5 in the pursuit of a cleaner FUTURE “ and healthier world REATE
Slide 9: A strong business: excellent brand portfolio
A STRONG BUSINESS... KA “N Excellent brand portfolio for value creation
Slide 10: Auto dishwash, intimate wellness, laundry additives
r ore] Auto dishwash Intimate wellness Laundry additives LFL NR CAGR Global dishwash Consumers have not People use a stain removal vs 2019! machine penetration? used a condom the first product* time they had sex? Wie a \ al | ‘1-LFLnet revenue CAGR FY 2022 vs FY 2019 |2-Internal madelling based on E
Slide 11: Excellent portfolio of market-leading brands
_.- WITH AN EXCELLENT PORTFOLIO OF MARKET-LEADING BRANDS INTIMATE SURFACE & AUTO GERM vs 201993 ore WELLNESS DISINFECTION DISHWASH PROTECTION --@- ©@ O06 (iu 2@) Market position ABRIC LAVATORY INFANT PERSONAL Soares DITIVES CARE CHILD CARE SPECIALTY £3.1BN veee Claims based on information aggregated
Slide 12: Developed and emerging markets
Developed Markets (c.65% of business!) a “len Emerging Markets (c.35% of business’) L a - Larger business hl Larger business than 20198 ; than 20193 F1.0en a | LFL NR CAGR vs 2019 for top 3 markets!2 1-Based on FY22 Group net revenue |2 = LFL net revenue CAGR FY 2022 vs FY 2019 | 3 Ona LFL net reven
Slide 13: Our three principles of portfolio value creation
OUR THREE PRINCIPLES OF PORTFOLIO VALUE CREATION @) @) @) Long-term Attractive Enduring runway for earnings competitive growth model advantage GOVERNS OUR ORGANIC AND INORGANIC CAPITAL ALLOCATION PRIORITIES EVERY BRAND HAS TO EARN ITS PLACE IN THE PORTFOLIO B
Slide 14: Sector leading growth
ALL OF WHICH HAS LED US T0 SECTOR LEADING GROWTH 3-year LFL net revenue CAGR vs 2019! +74 Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 recki® reckit® (exUSNutrtion benef) 1-LFL net revenue CAGR FY 2022 vs FY 2019 2 Average of 13 peers across the Hygiene, Health and Nutrition sector
Slide 15: Superior gross margins
..- AND SUPERIOR GROSS MARGINS c.60% c.47% recki<® PEER GROUP AVERAGE!
Slide 16: A strong business: continuously sharpen and improve
A STRONG BUSINESS... LS Continuously sharpen and improve
Slide 17: Sharpen and improve
SHARPEN AND IMPROVE ~ ou Product superiority to delight consumers and grow our categories o Win in market by more consistently executing with excellence © Fixed cost optimisation to fuel growth and earnings 7
Slide 18: Insight driven and science-backed innovation
INSIGHT DRIVEN AND SCIENCE-BACKED INNOVATION BETTER INSIGHTS STRONG SCIENCE PLATFORMS Data driven - Science platforms - to define where to play and how to win a foundation of growth across our brand portfolio ‘SCIENCE AND TECHNOLOGY PLATFORMS CONTEXTUAL BEHAVIOURIAL DEMOGRAPHIC DATA Proprietary adva
Slide 19: Science platforms to drive superiority
... TQ DRIVE SUPERIORITY INTIMATE WELLNESS 2 a Latex Polyurethane leadership leadership AUTO DISHWASH New material platform 9
Slide 20: Winning in market
WINNING IN MARKET Revenue growth management >] 5% of markets covered by revenue growth management tools! SCOPE TO MORE CONSISTENTLY EXECUTE WITH EXCELLENCE ‘1-Number of markets measured by percentage of net revenue| 2~ Award relates to FY 2022, Customer service excellence @ Reckitt recognised TOP PL
Slide 21: Superior margins but room to be more efficient
SUPERIOR MARGINS BUT ROOM TO BE MORE EFFICIENT PEER GROUP AVERAGE!
Slide 22: Opportunity to extend our productivity programme
WE HAVE AN OPPORTUNITY TO EXTEND OUR PRODUCTIVITY PROGRAMME Productivity programme VS ONGOING ONGOING AREA OF FOCUS Y Sf ONGOING x
Slide 23: Focus areas for fixed cost optimisation
FOCUS AREAS FOR FIXED COST OPTIMISATION [ar] Digital and generative Al Simplification Right size Automation and investment shared services TO FUEL GROWTH AND EARNINGS
Slide 24: A strong business: enhanced returns to shareholders
A STRONG BUSINESS... == Enhanced returns to shareholders
Slide 25: Strong cash flow and healthy balance sheet
STRONG CASH FLOW AND HEALTHY BALANCE SHEET Strong cash flow Healthy balance sheet FREE CASH FLOW NET DEBT TO EBITDA’ LEVERAGE CREDIT RATING (as at 30 June 23) (as at 30 June 23) >£2.0en PA 2.0X A-1A3 1 Adjusted EBITDA
Slide 26: Capital allocation priorities remain
CAPITAL ALLOCATION PRIORITIES REMAIN All Investment in organic growth ()) MAINTAINED {0} Strong free cash conversion () MAINTAINED = <> Sustainable dividend growth @) NEW IN FY 2022 (A) Target single A credit rating ()) MAINTAINED | Manage the portfolio for value creation (©) MAINTAINED Return cash
Slide 27: Now increasing cash returns to shareholders
NOW INCREASING CASH RETURNS TO SHAREHOLDERS °° oOo ¥ = NEW SHARE BUYBACK 1 PROGRAMME BN commencing to be executed over imminently the next 12 months UNDERPINNED BY STRONG FREE CASH FLOW AND MAINTAINING CURRENT LEVERAGE! 27
Slide 28: Enduring framework for leading TSR
WE HAVE AN ENDURING FRAMEWORK FOR LEADING TSR i Share p Sustainable dividend growth f Grow AOP ahead of net revenue f MSD net revenue growth buybacks
Reckitt Benckiser Group — Q3 2023 Earnings Presentation on 6ix