Reckitt Benckiser Group Plc · LSE:RKT
Reckitt Benckiser — H1 2023 Earnings Presentation
35 slides from Reckitt Benckiser's earnings presentation, Jul 26, 2023
Slide 1: H1 2023 Results
RECKITT reckitt H120238 RESULTS
Slide 2: Disclaimer
12023 RESULTS 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 an
Slide 3: Nicandro Durante, Chief Executive Officer
NICANDRO DURANTE Chief Execut! ive Officer
Slide 4: Agenda
12023 RESULTS AGENDA ad Financial review and outlook o Business updates and initial thoughts LY Key messages
Slide 5: Key Messages: On Track
12023 RESULTS KEY MESSAGES: ON TRACK @ © Strong H1 Innovations delivery landing @ Confidence in FY targets ©) New CEO - continued momentum
Slide 6: Jeff Carr, Chief Financial Officer
Slide 7: Group Summary: Continued Positive Momentum
H1 2023 RESULTS GROUP SUMMARY: CONTINUED POSITIVE MOMENTUM == GED GE a LFL NR growth LFL NR growth +A.1% +6.0% (4.3)% (4.4)% +8.4% +10.4% Calculations of adjusted measures (Including definition of e-commerce net revenue) are presented within the H12023 results anncuncement Net revenue IFRS net reven
Slide 8: Group Margins: Gross Margin Expansion and Increased BEI
12023 RESULTS GROUP MARGINS: GROSS MARGIN EXPANSION AND INCREASED BEI £m H12023 H12022 Change Change Actual FX Constant FX Net Revenue 7,446 6,888 +8.1% +6.0% LFL growth +6.0% +8.6% Gross Margin % 59.4% 58.1% +130bps Brand Equity Investment (918) (805) +14.0% +11.2% BEI % 12.3% 11.7% (60)bps Other C
Slide 9: Hygiene: Lysol Returns to Growth in the Quarter
H1 2023 RESULTS HYGIENE: LYSOL RETURNS T0 GROWTH IN THE QUARTER LFL NR growth LFL NR growth Net IFRS net revenue revenue growth +5.5% +3.6% _ - £3,05/M 6.2% ' +0.2/0 ‘olume Volume PY: £2,879m 1.3)/ 8.9) % e 0 e 0 Adjusted operating AOP profit (AOP) margin Price/Mix Price/Mix FH83M 19.1% +| 2.8% +] 2
Slide 10: Health: Strong Growth Across OTC and Intimate Wellness
H1 2023 RESULTS HEALTH: STRONG GROWTH ACROSS OTC AND INTIMATE WELLNESS GEZ=D GED GH > Net IFRS net LFL NR growth LFL NR growth revenue revenue growth +4 Oh +8.8% i - £3,073M 9.0% 1 +J.U/o Volume Volume PY: £2,820m vi 0.5% (0.1) 0 *U.0/0 Adjusted operating AOP profit (AOP) margin Price/Mix Price/Mix
Slide 11: Nutrition: US Maintained Leading Market Share Position
H1 2023 RESULTS NUTRITION: US MAINTAINED LEADING MARKET SHARE POSITION LFL NR growth LFL NR growth Net IFRS net 0 0 revenue revenue growth Cen as £1,316M 10.7% ' *1U.//0 Volume PY: £1,189m 5.2) % ° 0 Adjusted operating AOP profit (AOP) margin Price/Mix Price/Mix £90 AM 23.1% +6.0% +] 0.5% (16.1)% at
Slide 12: Adjusted EPS
12023 RESULTS ADJUSTED EPS H12022 AOP Finance expense / Tax FX Dilution H12023 NCI / Associates Calculations of adjusted measures are presented within the H1 2023 results announcement
Slide 13: Free Cash Flow Generation
12023 RESULTS FREE CASH FLOW GENERATION £m H1 2023 Adjusted operating profit 1,769 Depreciation, share-based payments and gain on 264 disposal of fixed assets (net of proceeds) Capital expenditure (189) Movement in working capital and provisions (451) Cash flow in relation to adjusting items (44) In
Slide 14: Leverage Reduced
12023 RESULTS LEVERAGE REDUCED @® Net Debt / Adjusted EBITDA 2.0 £(0.8)bn £0.8in £(0.1)bn £8.0hn a a FY 2022 Free cash flow Dividend FX & other H12023 Calculations of adjusted measures are presented within the H1 2023 results announcement 4
Slide 15: Capital Allocation Priorities Reiterated
12023 RESULTS CAPITAL ALLOCATION PRIORITIES REITERATED 7. r : c _ nil Investment in operations to drive growth and maximise return Remain focused on delivering strong free cash conversion Aim to deliver sustainable dividend growth in future years subject to any significant internal or external facto
Slide 16: 2023 Outlook and Guidance
12023 RESULTS 2023 OUTLOOK AND GUIDANCE +3% 10 +% £250m to £280m (Including US Nutrition impact’) Adjusted operating profit margin SLIGHTLY ABOVE 2022 LEVELS (When excluding US Nutrition impact - c.80bps in 2022)? Calculations of adjusted act Is approximately +2.5% on 2022 Group LFL net revenue grow
Slide 17: a, U Ne
a, U Ne
Slide 18: Business Updates
H1 2023 RESULTS BUSINESS UPDATES
Slide 19: Hygiene Highlights
12023 RESULTS HYGIENE HIGHLIGHTS i ~ 4. Y i Ail Broad-based Innovation Lysol returns led to growth growth
Slide 20: Innovation Led
12023 RESULTS INNOVATION LED Finish Ultimate Plus All-in-One UNBEATABLE CLEAN’ Air Wick Vibrant Vanish Oxi Action DOUBLES THEUFE BProuR cloner 20
Slide 21: Lysol Returns to Growth
H1 2023 RESULTS LYSOL RETURNS T0 GROWTH Disinfectant Spray Disinfectant Wipes Ps eA e 6) 6) 0.80% Cosco 4 0 ==WHOLESALE Market share! Increased distribution Laundry Sanitiser category growth? sol ©) Lysol net revenue +c.50% above pre-pandemic levels?
Slide 22: Health Highlights
12023 RESULTS HEALTH HIGHLIGHTS KA “N Broadening shoulders of our brands a é Strength in OTC and Intimate Wellness Innovation Improving Dettol led performance in H2 22
Slide 23: OTC Intimate Wellness
12023 RESULTS OTC INTIMATE WELLNESS duro’ \ Mucinex) GAVISCON Strepsils Strepsils ana ) 2 y =. | 6 @) 208% NR growth (*) HSD NR growth 23
Slide 24: Broadening Shoulders of Our Brands
12023 RESULTS BROADENING SHOULDERS OF OUR BRANDS Mucinex InstaSoothe Sore Throat and Pain Relief Spray — Nurofen Liquid Caplets Biofreeze Hf 3743uN40!9 Ge o (=) 7 a] m m N m SE VEENED Mucinex NUROFEN’ BIOFREEZE
Slide 25: Innovation Led
12023 RESULTS INNOVATION LED Biofreeze Overnight Relief Durex Invisible Dettol Cool ? BiOFREEZE 2 OVERNIGHT RELIEF N PATCHES / ae CLOSE FIT)
Slide 26: Nutrition Highlights
12023 RESULTS NUTRITION HIGHLIGHTS s North America market share leadership (+) Latin America improving execution ASEAN mixed performance 26
Slide 27: North America Market Share Leadership
12023 RESULTS NORTH AMERICA MARKET SHARE LEADERSHIP -m © gx market 1 Recommended Infant share Formula by Paediatricians' # Allergy brand! # Trusted by consumers in the US! Share of c.40%) hospital contracts@ 27
Slide 28: Latin America Improving Execution
12023 RESULTS LATIN AMERICA IMPROVING EXECUTION (a) Innovate with science @) Execute with excellence LAUNCH OUR MOST ADVANCED FORMULA FOCUS ON MOST MEDICALLY DRIVEN CONSUMER NEEDS Gi) Pull the margin levers @ +50BPS share gains 28
Slide 29: Initial Thoughts
H1 2023 RESULTS INITIAL THOUGHTS
Slide 30: Initial Thoughts
12023 RESULTS INITIAL THOUGHTS © The right strategy ARR A culture fit for the future 2) Opportunities for further optimisation 30
Slide 31: Opportunities for Further Optimisation
12023 RESULTS OPPORTUNITIES FOR FURTHER OPTIMISATION aA AYA ==) Reduced fixed cost to fuel growth and earnings re In-market excellence we Innovation and product superiority Returns to shareholders
Slide 32: Nicandro Durante
NICANDRO DURANTE
Slide 33: Key Messages: On Track
12023 RESULTS KEY MESSAGES: ON TRACK @ © Strong H1 Innovations delivery landing @ Confidence in FY targets ©) New CEO - continued momentum 33
Slide 34: Appendix
APPENDIX
Slide 35: Performance by Geography
12023 RESULTS PERFORMANCE BY GEOGRAPHY North America Q2 revenue (70%) growth H1 revenue @ growth Calculations of adjusted measures are presented within the H1 2023 results announcement Europe / ANZ 97h Developing Markets 2.2% 35
Reckitt Benckiser Group — H1 2023 Earnings Presentation on 6ix