Shareholders’ Review and Summary Financial Statement 2007

Seeing is believing Over 15 million products sold every day!

Leading the way Our Power Brands go from strength to strength

Delivering the goods Our 8th consecutive year of above industry average growth

Visible gains Dividend up by 21% Chief Executive’s review Seeing is believing Our results speak for themselves. They articulate just how much we live and love what we do. And that’s the driving force behind the strength of our brands and our success

We believe at the heart of our success lies our clear consumer-centric vision, a clear and consistent strategy, the strength of our organisation and culture and our ever stronger product portfolio of globally leading brands in attractive categories. Chief Executive

Our vision is to deliver consumers and customers better • Support these brands with a marketing investment that solutions for that short period of time every day that they use is amongst the highest in the industry. household cleaning, health or personal care products. Our • Continue to roll out our Power Brands into new enduring passion to make continuous progress in this area geographies to make them stronger market leaders and forms the foundation of our success. further enhance our corporate net revenue growth. A clear and consistent strategy Transforming growth into profit and cash flow Disproportionate focus on our 18 Power Brands to realise We focus on turning the growth of the business into our vision and drive above industry growth attractive profit and cash flow through margin expansion • We narrowly focus on these 18 brands as they typically and cash conversion. are global market leaders in categories with strong • We expand margins through an unrelenting attention growth potential. to cost optimisation and by focusing on higher margin • We use high levels of brand investment and innovation products and categories. to nurture our Power Brands to above industry and • We focus on converting this to cash through tight company average growth rates. control and management of our net working capital • Continuously develop innovative new products to and relentless attention to cash. strengthen the position of the Power Brands in their categories and enhance their consumer appeal.

2007 was a great year! relief provide clear opportunities for further growth for the Group financial highlights brand in the USA and in new geographies. We made excellent progress in making our 18 Power Brands 2007 2006 change stronger global market leaders. Bar one, that held flat, all As we are looking forward, we are excited by the growth and £m £m % Power Brands gained market share due to high levels of brand margin potential the Power Brands in consumer healthcare can Net revenues 5,269 4,922 +7 investment and the launch of exciting new products like Operating profit 1,233 910 +35 bring to Benckiser. Freshmatic Mini and Oxi Action Multi. Not only Adjusted operating profit* 1,190 1,059 +12 Strong in-market results drove our financial success in the Net income for the year 938 674 +39 did the Power Brands gain in the markets where they are sold, year. 2007 was the eighth consecutive year of above industry Adjusted net income for the year* 905 786 +15 they are increasingly becoming global leaders as we roll these average net revenue and profit growth for Reckitt Benckiser. Diluted earnings per share 127.9p 91.8p +39 brands out to new markets. Adjusted diluted earnings per share* 123.4p 107.1p +15 Net revenues at constant exchange grew by 10% in total and Power Brands now account for 61% of Reckitt Benckiser’s Declared dividend per share 55.0p 45.5p +21 9% on a like-for-like basis, with exchange reducing both total net revenues, up from 40% in 2001. The continued numbers by 3%. Adjusted profit for the year advanced by 15% *adjusted to exclude the impact of exceptional items strong development behind these increasingly clear global at actual exchange. leaders in categories with strong growth potential positions the Company well for the future. The strong financial results and confidence in the continued momentum of the Company led the Board to increase 2007 We also started to realise our ambition of becoming a real dividends by 21% and continue with a £300m share buy global player in consumer healthcare, another area where back programme. we believe the Company can achieve good growth at very attractive margins. Investors often ask us why we have been successful and even more importantly if we can continue our track record. Since In February 2006, we acquired the Boots Healthcare the formation of Reckitt Benckiser in 1999, the Company has International (BHI) business. In 2007, not only did we complete delivered consistently above industry average growth in net the integration of BHI, delivering more than the originally revenues and profits. We believe at the heart of our success lies targeted synergies and one year ahead of schedule, we our consumer-centric vision, a clear and consistent strategy, the managed to grow the BHI business by 10% on a true like-for- strength of our organisation and culture and our ever stronger like basis, well ahead of ingoing assumptions. Most of this product portfolio of globally leading brands in attractive Seeing is believing growth was driven by the three new Power Brands that came Over 15 million products sold every day! categories. We believe the same elements position us well for with the BHI acquisition: Nurofen, and . future success. Leading the way Our Power Brands go from strength to strength

Delivering the goods Our 8 consecutive year of above industry average growth Towards the end of 2007, we announced our intent to acquire

Visible gains Dividend up by 21% Adams Respiratory Therapeutics, Inc., a transaction which A consumer-centric vision completed on 30 January 2008. Adams allows us to enter the Our vision is to deliver consumers and customers better USA, the largest consumer healthcare market in the world solutions for that short period of time every day that they use with Mucinex, the clear No.1 in the US Cough Relief market. household cleaning, health or personal care products. Our Mucinex will become our 19th Power Brand. Its unique and enduring passion to make continuous progress in this area patent-protected formulas and consumer claims of 12-hour forms the foundation of our success. Seeing is believing There’s no hiding in this business. Our products are judged millions of times a day. When people open the dishwasher door, they’re looking for perfection. When they see it, they can believe it, because , like everything else we do, delivers every time.

2 Reckitt Benckiser Shareholders’ Review 2007 A clear and consistent strategy and the excitement of taking calculated risks in the search for Net revenues £m better solutions. Not for us a culture of consensus, rather we 6000 6000 Disproportionate focus on our 18 Power Brands to realise

enjoy constructive conflict if it leads to better decision-making. 5000 our vision and drive above industry average growth 5,269 5000 Ours is a culture that works for us. That is why we work 4,922 4000 We narrowly focus on these 18 brands as they typically very hard on recruiting and developing our talent to fit with 4,179 4000 3,713 3,871

our culture. 3000 are global market leaders in categories with strong growth 3000 potential. These are the brands that receive the lion’s share of new products to realise our vision and the bulk of our media Delivering shareholder value 2000 2000 and marketing investment to consistently grow them ahead of 1000 …in the short-term 1000 the market and company average. The result of our vision, strategy and values brought to life 0 0 Our Power Brands now account for 61% of our total business 03 04 05 06 07 by our passionate people is a performance that has delivered – up from 40% in 2001. Many of them are world leaders like growing profit and cash flow for shareholders. Our growth has Vanish in Fabric Treatment, Finish and Calgonit in Automatic outpaced our industry consistently over the past eight years. Operating margins (adjusted) % Gross margin % +160bps 60 Dishwashing or and in Disinfection. 25 And shareholders have been rewarded for this with consistent 25 60 We use high levels of brand investment and innovation to growth in the value of their shares, in a progressive dividend 22.6* 58 20 21.5* 20 58 20.1 58.3 nurture our Power Brands to above industry and company policy, and continuing share buy backs. 19.3 18.3 56 average growth rates. Our innovation rate at almost 40% of 15 56.7 …in the long-term 15 56 net revenue from products launched in the prior three years 54.9 54

10 54.8 strengthens the positions of our Power Brands within their We are also driving the long-term value of the business 10 54 categories, continually enhancing their consumer appeal. These for shareholders by making our business more sustainable, 53.3 52 innovations are then supported with a marketing investment through building our reputation as a responsible company, 0 5 5 52 that is amongst the highest in our industry – with our media and through taking actions to improve upon the social and 50 environmental impact of our business. 0 50 investment alone running at 12.4% of net revenues. 03 04 05 06 07 03 04 05 06 07 Due to the historical way our business has been built over the Reckitt Benckiser now consistently scores at the head *adjusted to exclude the impact of exceptional items years, through mergers and acquisitions, our Power Brands of industry on external measures of sustainability. With Operating margin % +110bps are not yet present in all markets around the world. However, programmes such as Trees for Change (a carbon offset Adjusted net income £m 23 23 1000

programme) and our continuing partnership with Save the 22 22.6* our dedication to rolling them out into new geographies is 1000 22 reaping rewards. In 1999, Vanish was mostly a UK brand, but Children worldwide, we are already putting back some of the 905* 21 21.5*

800 21 benefits of our business. 800 it is now in 57 countries and the clear No.1 worldwide in 786* 20 Fabric Treatment. was in 27 and with its presence now 20.1 20 In 2007 we launched a major and far-reaching programme, 600 669

600 19 in 73 countries has become the global leader in depilatories. Carbon 20, to make a real and measurable reduction in our 577 19.3 19

489 18 Air Wick was in 11 and it is now in 70 making it a strong 400 products’ Total Carbon Footprint, from cradle-to-grave. This 400 18.3 18

No.2 in Air Care. 17 programme tackles not just the easy wins of carbon reduction 17 200 200 in the areas under the control of our own business, but the 16 Globalising our Power Brands not only makes them stronger 16

much larger, if less straightforward, issues in our supply chain 0 03 04 05 06 07 market leaders, it further enhances our corporate net 0 revenue growth. and in consumer use of our products. Success in reducing our 03 04 05 06 07 *adjusted to exclude the impact of exceptional items products’ Total Carbon Footprint by 20% by the year 2020 *adjusted to exclude the impact of exceptional items Transforming growth into profit and cash flow will make a real contribution to the world’s efforts on climate Operating and net cash flow £m

change, effectively taking the equivalent of nearly a million 1250 We focus on turning the growth of the business into Diluted earnings per share pence 1250 Operating 1,228 1,231 attractive profit and cash flow through margin expansion and cars off the roads. 150 150 Net cash conversion. 1000 1000 953 Seeing is believing 120 914 946 123.4* 120 886

750 861 We expand margins through an unrelenting attention to 750 We always analyse and review the reasons for our past success. 107.1* 758 cost optimisation, from removing unnecessary components 90 90 656 664

90.0 500 These 2007 financial results and the progress of our Power 500 in packaging to creative approaches in manufacturing and 77.1 logistics. We also drive margins by focusing on higher margin Brands and categories are evidence that our approach works. 60 66.2 60 250 products and categories. Margin expansion not only fuels 250

We have a compelling vision and strategy alongside a dynamic 30 30 profit growth, but it also provides the funds to reinvest back 0 group of Power Brands with an exciting array of growth 0

into the business to pursue more growth opportunities. 0 03 04 05 06 07 opportunities ahead. This is brought to life by our 23,400 0 The proof of our success is that we have continued to expand people, incentivised and motivated, working in a collaborative 03 04 05 06 07 *adjusted to exclude the impact of exceptional items margins even in a period of volatility in commodity prices, and energising environment, and in a Company they are proud Cash returned to shareholders £m and this is due to our persistence in seeking internal cost to work for. 700 700 700 Share buy back reduction opportunities not as a one-off exercise, but as a way Declared dividend per share pence 300 I believe these attributes are the foundations of our past Dividends 600 600

60 300 of everyday business. 60 300 success and will continue to be the fundamental drivers to our 500 500 500 283

50 55.0 future success. However, seeing is believing, and I hope the 50 We convert all of this into cash through tight control and 400 400 pages that follow will allow you to share my confidence in 45.5 management of our net working capital and relentless 40 300 358 40 300 300 that future. 39.0 300 attention to cash. 25 262 30 34.0 30 216 200 200 28.0 189 100 Our management, people and culture make it happen Bart Becht Chief Executive 20 20 100 100

A strong management team, and a highly driven group of 0

10 0 0 10 people, bound together by a common culture bring this vision 03 04 05 06 07 and strategy to life. 0 0 03 04 05 06 07 At Reckitt Benckiser, we work together with passion to excite consumers. We truly live our business, it is fun and therefore rewarding and it is an obsession that goes beyond just being a job. Our culture breeds pride in achievement, a truly personal commitment to deliver, pleasure in co-operating in teams

Reckitt Benckiser Shareholders’ Review 2007 3 World champions 14 of our 18 Power Brands are No.1 or No.2 worldwide

No longer just global players, our Power Brands are increasingly becoming global brand leaders

First place in every place?

Why are our Power Brands becoming more and more countries with amazing success. We also launched many of As our Power Brands increasingly become global leaders in global leaders? Vanish probably typifies the Power Brand the same Vanish innovations on good old local brands like underdeveloped categories, that have strong growth potential strategy that is driving more and more of our brands into the Kalia in Spain or Kosla in Turkey and rebranded them to Vanish at attractive margins, Reckitt Benckiser is better and better top spot across the globe. in the process. positioned for the future. Just eight years ago, Vanish was primarily a UK brand. Now Power Brands now represent 61% of Reckitt Benckiser’s global it’s a truly global force: it sells in 57 countries, is market leader net revenues, up from 40% just six years ago, and they keep in 75% of them and that makes us the clear world No.1 in growing well ahead of both the industry and our corporate Fabric Treatment. How did we get there? We strengthened average growth rates. They do not have the opportunity just our market position in existing Vanish markets by launching to grow in market share, many of the categories they are in superior stain removal solutions like Vanish Oxi Action powder are also still very underdeveloped. For example as we drive the for the consumer. As we saw the excitement from consumers still relatively low penetration of dishwashers in countries, our in these markets, we decided to take Vanish to many new leading automatic dishwasher detergent brands are benefiting.

4 Reckitt Benckiser Shareholders’ Review 2007 Nearly 40% of our net revenue comes from new products we gave life to in the past three years

We drive our brands with an exceptional rate of innovation

Innovation breeds results

We keep exciting consumers with one great product consumer response, we developed Air Wick Freshmatic Mini, a systematic, insight-driven approach to innovation that helps innovation after another. How? We use a systematic triumph of miniaturisation, that delivers on the same powerful consumers in their everyday lives and drives Reckitt Benckiser’s approach that creates a long and solid pipeline of insight of constant and better freshness. From the early net revenue growth to levels which are consistently above the appealing products, which are based on clear insights into consumer feedback it looks as though it will thrive on top of industry average. consumer needs. Freshmatic’s continued growth. Innovation has to focus where it delivers results and it has to These new products are far from alone. Vanish Oxi Action be sustainable. So we work hard to construct a full pipeline of Multi with Colour Protect builds on the Vanish promise by bigger and more sustainable new products to deliver consistent reassuring consumers that it works on any stain, fabric or strong net revenue growth. Like Air Wick Freshmatic. Three colour at any temperature. Finish Quantum delivers not just years ago, it created a brand new segment in Air Care of the unbeatable clean consumers have come to expect, but also automatic sprays. Consumers loved it. It gave them more delivers visibly better shine. controllable and better freshness than they ever had before. Recently we launched Nurofen Express, a product that targets Now it’s in 70 countries, owns 26% of the global Air Care pain ‘twice as fast’ because it gets absorbed much faster into market and is still growing, everywhere. Encouraged by the the blood stream than generic ibuprofen products. It is our

Reckitt Benckiser Shareholders’ Review 2007 5 Our marketing investment is amongst the highest in the industry with our media investment alone running at 12.4% of net revenue*

* that’s £651 million a year

We consistently invest more than the industry in our Power Brands

A sound investment

It is no accident that we have one of the highest media level of media investment for the former BHI brands: Nurofen, the supermarket shelf and proving its amazing stain removal, investment levels and one of the highest growth rates Strepsils and Clearasil. That extra support gave us an right before their eyes. in the industry. We do not like the accounting terminology excellent return, with the BHI business growing by 10%, well While traditional TV advertising is still a key way to people’s of media spend as we truly believe that investment in ahead of original expectations and fully fuelled by the three hearts, changes in media habits are creating new opportunities communication with our consumers is one of the best ways to Power Brands. to build relationships with people. We’re responding to drive growth in our business. Effective marketing is not just about productive media those changes by going increasingly multi-media with rapidly The bulk of our media investment goes into supporting the investment though; it’s also about getting the right messages increasing investment in online communication. Power Brands, with planned and structured programmes across to consumers at the very point they decide to buy our We might be changing where we invest our media monies, but that create trial, build loyalty, drive market share, support products. So our medical detailing teams are out educating our central belief remains, that investment in communication brand rollouts into new markets and tell consumers just what pharmacists and healthcare professionals about how and with our consumers is one of the best ways to drive growth for our latest innovations can do for them. Why? Because it’s a why our brands are effective, so they in turn can relay that Reckitt Benckiser. proven and effective way to grow the brands which grow the understanding to consumers. Meanwhile, our Vanish pink business. After the BHI acquisition, we greatly increased the teams are great brand ambassadors, engaging with people at

6 Reckitt Benckiser Shareholders’ Review 2007 into a 17% growth in profits *

Over the past 5 years, on average, we turned 7% sales growth*

* per annum

We work hard on margins, turning good growth into even higher profits, driving shareholder returns

There’s growth, and then there’s growth

We’re never satisfied. No matter how far we expand our easily, we couldn’t find enough savings initially to justify it. like swapping blister packs for cardboard ones, and lightening margins, we are always looking for new ways to manage And we never make changes at any cost – only when it pays. the housing or the glass in refill bottles have helped Air Care costs. Our relentless work on margins pays dividends though. to save millions of pounds. Even meeting new propellant However after working with suppliers for many months we Over the past five years, our grip on the operating efficiencies regulations in the US gave us a chance to find lasting savings. finally came to a clear winner that we rolled out, first in that fund our growth has helped to deliver shareholder the US, on Lysol, then in Europe and other markets. With We’re here to convert business growth into shareholder returns nearly ten times higher than our peers (200% returns impressive cost savings, lower net working capital and a returns; to turn good sales growth into even more attractive compared to a 22% market average). simpler, faster process, we’ve labelled it a shining success. profits growth through higher margins. Cost savings have And still the search goes on – for small changes that multiply helped to increase gross margins by more than a thousand Not that consumers notice. That’s deliberate. Even at our most into massive cost savings. The Lysol aerosol can, for example. basis points over the past seven years. So when we say that cost-conscious, we never look for savings in anything that might Instead of the usual pre-printed tinplate that wraps around we believe the strategy is working, you don’t have to take our impair the quality of our products or people’s experience of to form the can, we looked at printing labels on a translucent word for it. You can see it reflected in the returns. them. But it still leaves plenty of scope, because even savings film that wraps around less costly blank cans. But despite other in the smallest places can turn into huge numbers. Air Wick benefits, like pack graphics that can be updated quickly and Freshmatic has sold so fast in the past two years, that changes

Reckitt Benckiser Shareholders’ Review 2007 7 “There is a unique culture here and for me it’s the constant, everyday drive to deliver business results and the extreme fast pace that comes from the determination to outperform. That’s what keeps us stimulated here.” Rory Tait, British “It was a real job from day Brand Manager, Finish UK, joined 2003 one, when I joined as a trainee in France, and it was very motivating because people asked for my opinions and I was part of the thinking, not there just for basic execution.”

Bertrand Delagneau, French Global Brand Marketing Manager, Air Care, joined 1998

“I started as a grad trainee in India 10 years ago, and having proven myself in a number of roles in different categories and countries, I now have the job of managing the brand equity worldwide for Finish, one of our biggest Power Brands. We’re truly international with It’s a really challenging role, but it’s very rewarding.”

Aditya Sehgal, Indian 50 Global Brand Marketing Manager nationalities Finish & Calgonit, joined 1997 in our Top 400, and 8 in our Executive Team

We are able to deliver because of our unique culture which gives responsibility and value to staff from day one

Rise and shine!

‘Passionately delivering better consumer solutions’ is the we believe in. Our constant will to make things better – and 23,400 amazing staff, across the globe vision that unites us – and it’s thanks to our people that the excitement that we feel every time that we do. we keep delivering on every single word of that. How do 64% of our Top 400 are living away from their It’s true of our people wherever you look, for we are a truly we do it? We think it all starts from day one in the business, home country at the moment multi-cultural company – and not just because we operate in when we give people real jobs, with real responsibility for 60 countries. As people move up, they move around, enjoying delivering visible results. That chance to make a difference, international careers. It gives them the broad experience that right from the start, is what fires up the passion, speed and fuels their rapid rise and gives our teams the aptitude and determination that power our performance. And people thrive flexibility to get the very best out of every market. on it. They grow fast because they learn fast, from the best in the business. Yet, while no single nationality dominates here, there is one culture that drives and unites us all – and that’s Reckitt But if it’s our people who drive our success, what drives our Benckiser and our very singular way of working. But we don’t people? Apart from our need to deliver to shareholders, we just say we’re unique, we show it in everything we do. And think it’s our absolute will to win. Our decisiveness and our prove it in our results. love of positive challenge. Our thirst for results in a business

8 Reckitt Benckiser Shareholders’ Review 2007 -22% Reduction in factory greenhouse gas emissions since 2000 100,000 lives Saved since 2006 with Save the Children 2 million+ Trees for Change being planted to offset our carbon emissions 90%+ Of our 3rd party factories in developing markets audited to global standards -80% Lost working day accident rate reduction since 2001 12 Global Training Programmes boost staff 70% Manufacturing waste now recycled

We are consistently ranked as a leader in sustainability and corporate responsibility

Making a world of difference

We want a better world. So, we’re proud that our products In our local and global communities, we want to share some In the global marketplace, we seek to give consumers improve the lives of millions every day by bringing better health of the wealth we create with the people who need it most, products that are not only safe and effective but also from a and hygiene. But we want to make a wider contribution – for by improving their health, hygiene and social development. supply chain that is ethical and responsible. We are making business, for society and for the environment. That is how we In 2007, we exceeded the target for our ‘Save 100,000 Lives’ a difference. believe we will truly deliver. partnership with Save the Children a year early, and now aim See our latest Sustainability Report at www.reckittbenckiser.com for our to save 150,000 lives. Fifty of our staff saved 13,000 of those Let’s start with the environment. We try to operate in a corporate responsibility policies, programmes, targets and progress. Our internal lives by doing a sponsored Global Challenge trek in 2007. controls for managing environmental, social and governance (ESG) matters and way that minimises our net environmental impact – in real www.save150000lives.com reputational risk are outlined on pages 14-15 of our Annual Report 2007. terms. Between 2000 and 2006, we reduced greenhouse gas emissions from our global factories by 22% per unit of As for our own people, in the workplace, we seek to production. And now we are going further. Our new target ensure an environment that is safe and healthy, and to is to reduce our products’ Total Carbon Footprint, from attract, develop and retain the talented people who operate cradle-to-grave, by 20% per unit by 2020 versus 2007. our business. And we have 12 Global Training Programmes www.carbon20.info that help us achieve this.

Reckitt Benckiser Shareholders’ Review 2007 9 Category overview Our global brands deliver better solutions in household cleaning and health & personal care to customers, wherever they may be, with the ultimate purpose of creating shareholder value

10 Reckitt Benckiser Shareholders’ Review 2007 Health & Personal Care 23% Net revenues grew 13% to £1,199m* of net revenues (excluding Pharmaceuticals) Profile of category Key brands Products that relieve common personal or health problems. Antiseptics Antiseptics Dettol protect against infection and deliver germ kill. , Cold/Flu/ Analgesics Nurofen, Disprin and Gastro-Intestinals are generally over the counter for /Flu/Sore Throat ailments like pain, , cold, flu, sore throat or heartburn. Suboxone is the Strepsils, Company’s prescription drug against opioid dependence. Veet, our Depilatory Gastro-Intestinals product, removes hair leaving beautiful smooth skin. Our skin care range Gaviscon, Senokot consists of products like Clearasil to fight spots and break-outs for visibly Opioid Dependence Suboxone clearer skin and products like E45 for dry skin. Denture Care consists of both Depilatories Veet denture fixatives and cleaners. Skin Care Clearasil, E45 Denture Care Kukident, Market position Steradent Dettol is the No.1 worldwide in Antiseptics. Nurofen and Gaviscon are leading and Gastro-Intestinal brands in Europe and Australia. Strepsils is No.1 in Sore Throat globally. Veet is the No.1 depilatory brand worldwide. Suboxone is the global leader in prescription opioid dependency treatment.

Fabric Care 24% Net revenues grew 5% to £1,241m* of net revenues Profile of category Key brands This category consists of five product groups used for cleaning and Fabric Treatment Vanish, treating all fabrics. It covers products used before, during or after the Spray ‘n Wash, Resolve, Napisan main laundry wash cycle. Fabric Treatment products remove stains from Garment Care clothes, carpets and upholstery. Garment Care products are specially Water Softener formulated for washing delicate fabrics. Water Softeners protect the Fabric Softener Quanto, Flor machine and laundry against the build-up of limescale and other Laundry Detergent Ava, Sole deposits. Fabric Softeners are used for softening and freshening fabrics Colon, Dosia and ironing aids help make ironing more convenient. Laundry Detergents clean fabrics in washing machines. Market position No.1 worldwide in Fabric Treatment and Water Softener categories. No.2 worldwide in Garment Care.

Surface Care 18% Net revenues grew 8% to £951m* of net revenues Profile of category Key brands Five product groups. Disinfectant cleaners both clean and disinfect Disinfectant Lysol, Dettol, surfaces, killing 99.9% of germs. All purpose cleaners are ideal for many Sagrotan, Pine-O-Cleen household surfaces, particularly in the bathroom and kitchen. Lavatory Lavatory , Lysol cleaners offer specialised cleaning and disinfecting for the toilet bowl All purpose Veja, St Marc, Cillit and cistern. Specialty cleaners are designed for specific tasks – from Bang, Easy-Off Bang cleaning ovens to removing limescale. Finally, Polishes & Waxes clean Specialty Easy-Off Oven, and shine hard surfaces such as furniture and floors. Mop & Glo, , Lime-A-Way, Destop, Rid-X Market position Polishes & Waxes Poliflor, Old No.1 worldwide in Surface Care with leading positions across the five English, O’Cedar, product groups described above.

Dishwashing 12% Net revenues grew 5% to £616m* of net revenues Profile of category Key brands Products used in automatic dishwashing machines and for washing Finish, Calgonit, dishes by hand. In Automatic Dishwashing the main product is detergent Electrasol, Jet Dry for cleaning dishes in the main wash cycle and sold in an increasing range of formats: powder, liquid, gels, gelcaps, and tabs (PowerBall, 3in1, 5in1, All in1, Max in1 and Quantum). Other products include rinse agents, decalcifying salts, dishwasher cleaners, deodorisers and glass corrosion protectors. Market position No.1 worldwide in Automatic Dishwashing.

Home Care 15% Net revenues grew 16% to £779m* of net revenues Profile of category Key brands Consists of three categories. Air Care products remove odours and add Air Care Air Wick fragrance to the air to create an ambience. Various formats include: Pest Control , autosprays, electrical plug-ins, aerosols, gels and candles. Pest Control d-Con, Shieldtox, products offer solutions to domestic infestation. The category includes Target, Rodasol, Pif Paf, insecticide and rodenticide products – in formats such as coils, mats, baits, Tiga Roda traps, vapourisers and sprays – to prevent infestation and to kill pests. Shoe Care Cherry Shoe Care cleans and protects shoes. Blossom, Nugget Market position No.2 worldwide in Air Care, Pest Control and Shoe Care.

* at constant exchange rates

Reckitt Benckiser Shareholders’ Review 2007 11 Business Review 2007 business highlights Net revenues grew by 10% (constant) to £5,269m Adjusted operating profit up 15% (constant) to £1,190m Over £650m returned to shareholders

Figures at a glance

Summary Group income statement The Company for the year ended 31 December 2007 2007 2006 £m £m is targeting for Net revenues 5,269 4,922 Operating profit 1,233 910 another strong Net finance (expense) (24) (36) Profit on ordinary activities before taxation 1,209 874 Tax on profit on ordinary activities (271) (200) year in 2008 Profit for the year 938 674 Profit for the year 938 674 (attributable to ordinary equity holders of the parent) with net revenue Earnings per ordinary share On profit for the year, basic 131.2p 93.5p growth from On profit for the year, diluted 127.9p 91.8p continuing Summary Group income statement – adjusted* for the year ended 31 December 2007 2007 2006 operations of £m £m Net revenues 5,269 4,922 Adjusted operating profit* 1,190 1,059 around 6-7%. Net finance income/(expense) (24) (36) Adjusted profit on ordinary activities Colin Day Chief Financial Officer before taxation* 1,166 1,023 Tax on profit on ordinary activities* (261) (237) Adjusted profit for the year* 905 786 Earnings per ordinary share* On adjusted profit for the year, basic 126.6p 109.1p This review is extracted from the Business Review which is included Air Care growth was driven by continuing success for Air Wick On adjusted profit for the year, diluted 123.4p 107.1p in full in the Annual Report and Financial Statements 2007. Freshmatic. In Health & Personal Care, growth came from the former BHI brands: Nurofen, Strepsils and Clearasil, with all three *adjusted to exclude the impact of exceptional items Performance of the business in 2007 brands responding to increased marketing investment, and (2007: £43m credit, 2006: £149m charge) from Depilatories. Net revenues grew by 7% (10% constant) to £5,269m. The extra month of Boots Healthcare International (BHI) in 2007 contributed Full year operating margins were 60bps ahead of last year at Summary Group balance sheet 1% to this growth rate. 24.2% due to higher gross margins and BHI synergies, partially as at 31 December 2007 offset by higher marketing investment to support new products. 2007 2006 Reported operating profit for the year rose 35% (39% constant) to This resulted in an 11% increase in adjusted operating profits £m £m £1,233m. Reported net income was 39% (43% constant) higher to £681m. Non-current assets 4,426 4,421 at £938m. Basic EPS was 131.2p; diluted EPS was 127.9p, an Current assets 1,442 1,316 increase of 39% on 2006. Total assets 5,868 5,737 North America & Australia 28% of net revenues. 2007 net revenues increased 11% to £1,488m. Within this, NAA Household Current liabilities (2,424) (2,740) Adjusted operating profit increased 12% (15% constant) to grew 7%, NA Food grew 7% and NAA Pharmaceuticals grew 60%. Non-current liabilities (1,059) (1,131) £1,190m. Gross margin was 160bps ahead of last year at 58.3% Total liabilities (3,483) (3,871) due to the benefit of price increases early in the year, favourable Full year growth in Household came particularly from Surface Net assets 2,385 1,866 mix and cost optimisation. Marketing investment was substantially Care, Automatic Dishwashing and Home Care. Surface Care Equity minority interests (2) (3) higher, with media investment increased by 14% constant to Total shareholders’ funds 2,383 1,863 growth was driven by Lysol in NA and by Harpic in ANZ. Automatic 12.4% of net revenues, 50 bps ahead of 2006. Adjusted operating Dishwashing increased as a result of the continuing success of margins increased by 110bps to 22.6% due to the gross margin Approved by the Board on 13 March 2008 Electrasol 3in1 monodose tablets. In Home Care, Air Care growth expansion somewhat offset by higher marketing investment, and came from both Air Wick Freshmatic and Air Wick Electrical Oils. In Adrian Bellamy Bart Becht to the BHI synergies which have been achieved ahead of schedule. Health & Personal Care, increased net revenues came mainly from Director Director The exceptional profit (net, pre-tax) in 2007 was £43m compared strong growth for Nurofen in ANZ behind higher investment. to charges in 2006 of £149m. Cumulative synergies from the BHI Pharmaceuticals grew sales of Suboxone very strongly in the USA Summary Group cash flow statement acquisition of £87m exceeded the increased target of £80m. where the sales organisation has been substantially increased and for the year ended 31 December 2007 Net interest charges were £24m (2006 £36m) reflecting the helped by a regulatory change which allows doctors to take on 2007 2006 more patients for this treatment. £m £m reduction in debt during the year. The tax rate is 22%, benefiting Cash generated from operations 1,231 1,228 from the £20m of one-off tax releases in the second quarter Food grew strongly due to the consumer brands of French’s Yellow Net interest received/(paid) (24) (30) of 2007. Mustard, Frank’s Red Hot Sauce and French’s Fried Onions. Tax paid (232) (181) Net cash generated from operating activities 975 1,017 Adjusted net income growth was 15% (18% constant). Adjusted, Full year operating margins were 130bps higher at 25.5%, mainly Capital expenditure (134) (88) diluted EPS increased by 15% to 123.4p. due to mix benefit from the high growth of Suboxone plus gross Other investing activities 19 19 With these results, the Company achieved the profit forecast margin expansion and BHI synergies resulting in profits increasing Acquisition of businesses – (1,893) 16% to £379m. Disposal of subsidiary undertakings 260 – set out on page 32 of the Prospectus issued by Reckitt Benckiser Group plc dated 11 September 2007. Maturity of short-term investments (17) 57 Excluding NAA Pharmaceuticals, operating margins were 20 bps

Net cash generated/(used) by investing activities 128 (1,905) lower at 21.2%. Proceeds for issuance of ordinary shares 52 56 Geographic analysis at constant exchange excluding Share purchases (300) (300) exceptional items Developing Markets 18% of net revenues. Net revenues (Repayments)/proceeds of borrowings (503) 777 for 2007 grew 15% to £968m with strong growth across all Dividends paid to the Company’s shareholders (358) (300) Europe 54% of net revenues. 2007 net revenues grew by 7% to regions of Asia, Latin America and Africa Middle East. The major Net cash (used)/generated in financing activities (1,109) 233 £2,813m. The extra month of BHI in 2007 contributed 1% to this contributors to growth were Fabric Care, Surface Care, Home Net (decrease) in cash and growth rate while business disposals deducted 1%. cash equivalents in year (6) (655) Care and Health & Personal Care. In Fabric Care, the growth came Exchange gains/(losses) 19 (16) Growth was broad based across all five core categories. Fabric from Fabric Treatment, mainly driven by initiatives on Vanish to Cash and cash equivalents at beginning of year 298 969 Care grew due to the success of Vanish Oxi Action Multi and increase category penetration. In Surface Care, the main drivers Net cash and cash equivalents at end of year 311 298 Vanish Oxi Action Crystal White, and Calgon Water Softener were Harpic Power Plus lavatory cleaner, supported by higher following increased investment. Surface Care growth benefited investment, and Veja in Brazil. In Home Care, the increase was from the launch of Grease & Floor and from growth in both Pest Control and Air Care. Mortein growth came from a for Harpic Power Plus and Harpic Max In Toilet Bowl device (ITB) number of new initiatives such as Mortein with Dettol, while in Air in Lavatory Care. In Automatic Dishwashing, the key drivers were Care, the key driver was Air Wick Freshmatic. In Health & Personal Finish Quantum, Finish All in1 and Finish Turbo Dry. In Home Care, Care, the Dettol personal care range grew strongly, benefiting

12 Reckitt Benckiser Shareholders’ Review 2007 Net revenues £m

6000 6000

5000 5,269 5000 4,922 4000 4,179 4000 3,713 3,871 3000 3000

2000 2000

1000 1000

0 0 03 04 05 06 07

from the Herbal range extension and additionalOperating investment, margins (adjusted) improved% by £98m to minus £826m compared to the position at Gross margin % +160bps 60 while in Healthcare both Strepsils, due to 25 higher investment, and the end of 2006, mostly25 due to further significant reductions in 60 Gaviscon, due to geographical expansion, grew strongly. the BHI net working capital. 22.6* 58 20 21.5* 20 58 20.1 58.3 Full year operating margins expanded 230bps to 13.4%19.3 as Cash flow Operating cash flow was £975m (2006 £1,017m) 18.3 56 15 56.7 adjusted operating profits increased by 43% to £130m. and net cash flow from15 operations was £861m (2006 £953m). 56 Net interest paid was £6m lower at £24m (2006 £30m) and tax 54.9 54

10 54.8 Category review at constant exchange rates payments increased 10by £51m to £232m (2006 £181m). Capital 54 expenditure was higher than prior year at £134m (2006 £88m) 53.3 52 Fabric Care 2007 net revenues increased 0 5 5% to £1,241m. The due to one-off investment5 in healthcare manufacturing. Proceeds 52 major drivers were strong continuing growth for Vanish Oxi from the disposal of Hermal were £260m. Action Multi and Vanish Oxi Action Crystal White. Calgon Water 0 50 50 Softeners grew as a result of higher marketing investment.03 04 Woolite05 06Net debt07 at the end of the year was £125m (December 2006 03 04 05 06 07 Garment Care benefited from the roll-out *adjustedof Woolite to exclude Colour the impact and of exceptional £660m), items a reduction of £535m. This reflected net cash flow from higher investment. Excluding the private label business, from operations of £861m, receipts on the disposal of Hermal Operating margin % +110bps where the level of activity was reduced in theAdjusted year, the net branded income £m of £260m, offset by payment of the two dividends (£358m) and 23 23 1000 business grew 8%. share buy backs (£300m). 22 22.6* 1000 22

Balance905 sheet* At the end of 2007, the Group had shareholders’ 21 21.5* Surface Care Net revenues grew 8% to £951m800 principally due to 21 800 786* the launch of Cillit Bang Grease & Floor, and to strong growth for funds of £2,385m (2006 £1,866m), an increase of 28%. Net 20 20.1 20

Lysol in North America and Veja in Brazil. 600 Harpic Lavatory Care669 net debt was £125m (2006 £660m) and total capital employed in the

600 19 revenues were also stronger due to the success of Harpic577 Power business was £2,510m (2006 £2,526m). 19.3 19

489 18 Plus and Harpic Max. 400 400 18.3 18 This finances non-current assets of £4,426m (2006 £4,421m) 17 17

200 of which £479m (2006 £425m) is tangible fixed assets, the Dishwashing Net revenues increased 5% to £616m due to 200 the success of Finish Quantum and Finish All in1 in Europe and remainder being goodwill, other intangible assets, deferred tax 16 16

0 03 04 05 06 07 Electrasol 3in1 tablets in North America. and other receivables.0 The Company has negative net working 03 04 05 06capital 07of £826m (2006 £728m), current provisions of £36m (2006 *adjusted to exclude the impact of exceptional items Home Care Net revenues improved by 16%*adjusted to £779m. to exclude theAir impact of exceptional£47m) items and long-term liabilities other than borrowings of £1,054m Care grew strongly due to the continuing success of Air Wick (2006 £1,120m). Operating and net cash flow £m

Freshmatic globally and strong growth for Air Wick Electrical Oils 1250 Diluted earnings per share pence 1250 in North America. Pest Control growth benefited from a number The Company’s financial ratios remain strong. Return on Operating 1,228 1,231 150 150 Net

shareholders’ funds (net income divided by total shareholders’ 1000 of initiatives such as Mortein Lantern, Mortein with Dettol and 1000 953

120 funds) was 39.3% (2006 36.1%) on a reported basis or 37.9% Mortein Professional Indoor Spray. 914 946 123.4* 120 886

750 861 (2006 42.1%) on an adjusted basis. 750 Health & Personal Care Net revenues increased 13% to 107.1* 758 90 In October 2007 a Scheme90 of Arrangement was put in place to 656 664

90.0 500 £1,199m. The extra month of BHI in 2007 contributed 5% to this 500 77.1 create additional distributable reserves whereby Reckitt Benckiser growth rate while business disposals deducted60 2%. 66.2 60 Group plc was introduced as a new parent Company. The 250 250 Dettol was significantly ahead in Developing Markets due to new

30 consolidated financial statements of Reckitt Benckiser Group plc 30 personal care products like Dettol Herbal soap and shower gel, and are presented as if both Reckitt Benckiser plc and Reckitt Benckiser 0 0

significantly increased marketing investment.0 Veet benefited from 03 04 05 06 07 Group plc had always0 been part of the same Group. the launch of the new Veet Pump Pack. 03 04 05 06 07

*adjusted to exclude the impact of exceptionalDividends items The Board of Directors recommends a final dividend Healthcare, including the former business of BHI, contributed of 30.0p (2006 25.0p), an increase of 20%, to give a full year Cash returned to shareholders £m strongly to the growth in the year. Net revenues from the former 700 700 700 dividend of 55.0p (2006 45.5p), an overall increase of 21%. The Share buy back BHI business, led by Nurofen, Strepsils and Clearasil,Declared dividend were £560m per shar e pence 300 dividend, if approved by shareholders at the AGM on 1 May 2008, Dividends 600 600

60 300 compared to £494m in the eleven months of ownership in 2006. 60 300 will be paid on 29 May to shareholders on the register at the record 500 500 500 Like-for-like growth in the former BHI business was 10%, mainly 283 50 55.0 date of 29 February.50 The ex-div date is 27 February and the last due to substantial growth for Strepsils, Nurofen and Clearasil. 400 400 45.5date for election for the share alternative to the dividend is 7 May. 40

300 358 40 300 300 Pharmaceuticals Full year net revenues were £211m, 42% ahead39.0 300 Share buy back During 2007, the Company purchased 11.1m 25 262 30 34.0 of 2006, driven by the growth of Suboxone in the USA following shares at a cost of £300m30 as part of its ongoing share buy back 216 200 200 28.0 189 100

a substantial increase in the sales organisation20 and helped by a programme. In Q4, 20the Company purchased 2.4m shares at a cost 100 100 regulatory change that allows doctors to take on more patients for of £66m. The Company has announced the continuation of its buy 0

10 0 0 10 this treatment. Operating profit for 2007 was £118m, up 44%. back programme with a target spend of £300m in 2008. 03 04 05 06 07 0 Food Net revenues grew 7% to £191m with good performance Hermal disposal The0 Company announced on 16 July that it had 03 04 05 06 07 across the consumer portfolio, in particular further growth for agreed to dispose of the Hermal prescription skincare business French’s Yellow Mustard, French’s Fried Onions and Frank’s Red Hot to Laboratorios Almirall S.A. for a consideration of £260m in Sauce. Operating profits increased 10% to £51m, with operating cash. The disposal was completed on 31 August 2007. Results margins improving 140bps to 26.7%. for Hermal are included in full year as reported up to the date of disposal. The gain on disposal has been reported as an exceptional Financial review item in the 2007 income statement.

Constant exchange Movements of exchange rates relative to Adams acquisition The Company completed the acquisition of Cautionary note concerning forward-looking statements sterling affect actual results as reported. The constant exchange Adams Respiratory Therapeutics, Inc. on 30 January 2008 for a This document contains statements with respect to the rate basis adjusts comparatives to exclude such movements and consideration of $60 per share or approximately $2.3bn (£1.1bn). financial condition, results of operations and business of shows the underlying growth. Results for the Adams business will be included in the Company’s Reckitt Benckiser and certain of the plans and objectives of the Company with respect to these items. These forward- results from the date of acquisition. The Company announced an Exceptional items Where appropriate, the term ‘adjusted’ looking statements are made pursuant to the ‘Safe Harbor’ exceptional charge for 2008 of $60m, or approximately £30m, to excludes the impact of exceptional items. Exceptional items in provisions of the United States Private Securities Litigation cover the necessary reorganisation associated with the integration Reform Act of 1995. In particular, all statements that express 2007 consist of a net gain in respect of business disposals and of Adams into Reckitt Benckiser, to be recorded post completion forecasts, expectations and projections with respect to future impairments of £73m and restructuring charges of £30m. Reported matters, including trends in results of operations, margins, during 2008. results for 2007 therefore include a net exceptional gain of £43m growth rates, overall market trends, the impact of interest or pre-tax compared to a pre-tax charge of £149m in full year 2006. exchange rates, the availability of financing to the Company, Company prospects anticipated cost savings or synergies and the completion Net interest Net interest payable was £24m, a 33% decrease of strategic transactions are forward-looking statements. The Company is targeting for another strong year in 2008 By their nature, forward-looking statements involve risk on 2006 (£36m) due to strong cash inflow in the period and a with net revenue growth from continuing operations, and uncertainty because they relate to events and depend reduction in the level of net debt during the year. excluding Adams, of around 6-7% (continuing operations on circumstances that will occur in the future. There are a number of factors, discussed in this report, that could cause Tax The tax rate is 22% (2006 23%), benefiting from a £20m base £5,220m) and for adjusted (ie. excluding exceptional actual results and developments to differ materially from one-off tax release in Q2 (2006 £19m release in Q4). items) net income growth of 10%, both at constant exchange. those expressed or implied by these forward-looking statements, including many factors outside Reckitt Benckiser’s Net working capital (Inventories, short-term receivables and control. Past performance cannot be relied upon as a guide to short-term liabilities excluding borrowings and provisions) Colin Day Chief Financial Officer future performance.

Reckitt Benckiser Shareholders’ Review 2007 13 Summary Directors’, Auditors’ and Remuneration Report Summary Reports of the Directors, the Independent auditors’ statement and policy on remuneration. View the full annual report and financial statements for 2007 at www.reckittbenckiser.com

This is a summary of information from the Annual Report and Respective responsibilities of Directors and auditors The Directors In this context, variable pay is, and will continue to be, the major Financial Statements 2007 are responsible for preparing the Shareholders’ Review and Summary element of our current Executive Directors’ and senior executives’ total Financial Statement in accordance with law. compensation package. Accordingly, the Executive Directors’ compensation This Summary Financial Statement is a summary of information in the package comprises, in addition to base salary, an annual cash bonus and Report of the Directors and the Group’s Annual Report. The Summary Our responsibility is to report to you our opinion on the consistency of share-based incentives. Financial Statement does not contain sufficient information to allow for the Summary Financial Statement within the Shareholders’ Review with a full understanding of the results of the Group and of the state of the full annual financial statements, the Report of the Directors and the Highly leveraged annual cash bonuses, linked to the achievement of affairs of the Company or of the Group and its policies and Directors’ Remuneration Report, and its compliance with the relevant key business measures within the year, are designed to stimulate the arrangements concerning Directors’ remuneration. For further requirements of section 251 of the Companies Act 1985 and the achievement of outstanding annual results. Share-based incentives information, the Report of the Directors, the Directors’ Remuneration regulations made thereunder. comprise a mix of share options and performance shares with the vesting Report, the Annual Report and Financial Statements and the auditors’ schedule designed to reward superior performance. We also read the other information contained in the Shareholders’ Review report on those accounts should be consulted. and consider the implications for our statement if we become aware of Share ownership policy Executive Directors and other senior executives Shareholders have the right to receive, free of charge, a copy of the any apparent misstatements or material inconsistencies with the Summary are subject to a compulsory share ownership policy. The objective of this Group’s Annual Report and Financial Statements. Financial Statement. policy is to emphasise the alignment of senior executives to the Company and its business targets. The CEO is required to own 600,000 shares, and If shareholders wish to receive a copy of the Group’s Annual Report and This statement, including the opinion, has been prepared for and only for the CFO/EVP ownership requirement is 200,000 shares. Financial Statements for this and all future years, please write to the the Company’s members as a body in accordance with section 251 of the Registrar whose address appears on the back cover. Companies Act 1985 and for no other purpose. We do not, in giving this Pensions In line with the Committee’s emphasis on the importance of opinion, accept or assume responsibility for any other purpose or to any only rewarding the Executive Directors for creating shareholder value, Summary Report of the Directors other person to whom this statement is shown or into whose hands it Reckitt Benckiser operates a defined contribution pension plan, the Reckitt may come save where expressly agreed by our prior consent in writing. Benckiser Executive Pension Plan. Mr Becht and Mr Day are both members Scheme of Arrangement In October 2007, pursuant to a Scheme of this plan. of Arrangement under s425 of the Companies Act 1985, a new Basis of opinion We conducted our work in accordance with Bulletin parent Company was introduced which is now called Reckitt Benckiser 1999/6, ‘The auditors’ statement on the Summary Financial Statement’ Mr Becht’s Company pension contribution was 30% of pensionable Group plc (‘Newco’). The previous parent Company was called Reckitt issued by the Auditing Practices Board. Our reports on the Company’s full pay during 2007. Mr Day’s Company pension contribution was 25% of Benckiser plc (‘Oldco’). The introduction of the Newco constituted annual financial statements describe the basis of our audit opinions on pensionable pay in 2007. those financial statements and the Directors’ Remuneration Report. a share capital reconstruction, whereby Oldco ordinary shareholders In 2007, only Mr Becht continues to be affected by the new lifetime limit exchanged their shares on a like-for-like basis for shares in the Newco. Opinion In our opinion the Summary Financial Statement is consistent brought about by the UK tax changes effective from April 2006. In 2006 The Newco has been accounted for using merger accounting principles. with the full annual financial statements, the Report of the Directors the Committee decided the most cost-effective approach was to maintain Therefore, although the reconstruction did not become effective until and the Directors’ Remuneration Report of Reckitt Benckiser Group plc his current pension commitment, and to make pension contributions in October 2007, the financial statements of Newco are presented as if for the year ended 31 December 2007 and complies with the applicable excess of the lifetime allowance into a funded and unapproved defined the Newco and the Oldco had always been part of the same group. requirements of section 251 of the Companies Act 1985, and the contribution pension arrangement. regulations made thereunder. Review of the activities and the development of the Group’s Service agreements Service contracts for newly-appointed Executive business The Business Review set out on pages 4 to 10 of the Annual PricewaterhouseCoopers LLP Chartered Accountants and Registered Directors will be rolling and terminable on six months’ notice. Termination Report and Financial Statements includes a review of the operations for Auditors, London, 13 March 2008. payments may include payment in lieu of notice, and contracts provide the year. The Directors endorse the content of that Review. liquidated damages of six months’ base salary plus twelve months’ bonus Notes: In the view of the Directors, the Group’s likely future development calculated as the average of the annual bonus paid (if any) in the two will continue to centre on the main product categories in which it • The maintenance and integrity of the Reckitt Benckiser Group plc years up to the termination. Any bonus earned will be included in the now operates. website is the responsibility of the Directors; the work carried out termination payment on the basis that a high proportion of pay is related by the auditors does not involve consideration of these matters and, to performance and that in the event of termination for poor performance Directors Information regarding the Directors of the Company who accordingly, the auditors accept no responsibility for any changes it is unlikely that any bonus will have been paid. were serving on 31 December 2007 is set out on page 15. that may have occurred to the full annual financial statements or the Non-Executive Directors do not have service agreements, but are subject to Summary Financial Statement since they were initially presented on During the year there was one change to the Board of Directors. David re-election by shareholders every three years. Tyler joined the Board as a Non-Executive Director on 26 February 2007 the website. The remuneration for Non-Executive Directors consists of fees for their and was elected to the Board at the 2007 AGM. • Legislation in the United Kingdom governing the preparation and services in connection with Board and Board committee meetings. Adrian Bellamy, Graham Mackay and Bart Becht retire by rotation and, dissemination of financial statements may differ from legislation in being eligible, offer themselves for re-election at the forthcoming AGM. other jurisdictions. Historical TSR performance Growth in the value of a hypothetical £100 holding over five years. FTSE 100 comparison based on spot values. Peter White has served on the Board for more than nine years and, Summary of policy on remuneration under the Combined Code, is therefore obliged to stand for re-election FTSE 100 Comparison based on spot values (£) on an annual basis. He has decided not to offer himself for re-election This is a summary of information from the Directors’ Remuneration Report. at the 2008 AGM and will step down from the Board at the conclusion The full Directors’ Remuneration Report can be found on pages 18 to 23 of that AGM. of the Annual Report and Financial Statements 2007. Corporate governance The Company recognises the importance of The Remuneration Committee of the Board (the “Committee”) is high standards of corporate governance. It understands, supports and responsible for determining and reviewing the terms of employment has applied throughout 2007 the principles set out in the Combined and remuneration of the Executive Directors and senior executives. Code 2006 and has complied with the great majority of the detailed The Committee comprises three Non-Executive Directors under the provisions contained in the Code. The ways in which the Company Chairmanship of Judith Sprieser. The Committee’s overriding objective is to applies these principles, and the few provisions with which the ensure that Reckitt Benckiser’s remuneration policy encourages, reinforces Company does not consider that it is appropriate to comply, are set and rewards the delivery of outstanding shareholder value. The graph out in the appropriate sections of the Annual Report and Financial opposite shows that the Company has outperformed the UK FTSE 100 in Statements. The application of the principles to matters related to the terms of Total Shareholder Return (TSR) over the last five years. Board and its committees, to internal control and to relations with shareholders is included in the Report of the Directors, and to Directors’ Reckitt Benckiser is a global Company operating a global remuneration remuneration in the Directors’ Remuneration Report. policy, and the core principles on which that policy is based are as follows. First, in order to attract and retain the best available people, Report of the auditors The report of the auditors on the annual the Committee has – and will continue to adopt – a policy of executive accounts of the Group for the year ended 31 December 2007 is remuneration based on competitive practice. Reckitt Benckiser competes unqualified and does not contain a statement under either s.237(2) or for management skills and talent in the same international market place s.237(3) of the Companies Act 1985. as its main competitors, the vast majority of which are based in the US. Annual General Meeting The notice convening the 1st Annual In accordance with this policy principle, total remuneration for Executive Notes The graph above shows the performance of Reckitt Benckiser in General Meeting of the Company to be held on Thursday 1 May 2008 Directors and other senior executives will be benchmarked against the terms of TSR performance against the UK FTSE 100 index over a five-year at The London Heathrow Marriott Hotel, Bath Road, Hayes, Middlesex, upper quartile of a peer group comprising Reckitt Benckiser’s main period and conforms to the Directors’ Remuneration Report Regulations UB3 5AN is contained in a separate document for shareholders which competitors, together with a range of comparable companies in the US 2002. The index was selected on the basis of companies of a comparable accompanies the Shareholders’ Review. consumer goods industry. size in the absence of an appropriate industry peer group in the UK.

The second principle is to align the interests of Executive Directors Directors’ remuneration The aggregate amount of Directors’ Independent auditors’ statement and senior executives with those of shareholders through a variable emoluments during the year was £6.6m (2006 £5.8m). The aggregate to the members of Reckitt Benckiser Group plc performance-based compensation policy and the Company’s share gains made by the Directors on the exercise of options and the vesting of restricted shares were £23.5m (2006 £22.1m). The aggregate amount of We have examined the Summary Financial Statement which comprises ownership policy. contributions made to money purchase pension schemes in respect of the the Summary Group income statement, Summary Group balance sheet, Directors was £0.4m (2006 £0.4m). Summary Group cash flow Statement and the Summary Directors’ Remuneration Report.

14 Reckitt Benckiser Shareholders’ Review 2007 The Board and Executive Committee Our team are from different cultural and professional backgrounds. They lead our talented people in action-oriented teams that give us competitive edge

1 4 7 The Board

Bart Becht (51, Dutch) # Joined the Board in 1999 on his appointment as Chief Executive Officer of the Company. He was appointed Chief Executive of Benckiser Detergents, subsequently Benckiser N.V., in 1995 and Chairman of Benckiser’s Management Board from May 1999. He holds no external directorships.

Adrian Bellamy (66, British) ‡ # Was appointed a Non-Executive Director of the Company in 1999 and became Non-Executive Chairman in May 2003. He is Chairman of The Body Shop International Plc and a Director of The Gap and Williams-Sonoma, Inc. He was formerly a director of Gucci Group NV and The Robert Mondavi Corporation. 2 5 8 Colin Day (52, British) Joined Reckitt Benckiser in September 2000 from Aegis Group plc where he was Group Finance Director from 1995. He was formerly a Non-Executive Director of Vero plc, the Bell Group plc, easyJet plc and Imperial Tobacco plc. He is currently a Non-Executive Director of WPP Group plc.

Dr Peter Harf (61, German) # Joined the Board as a Non-Executive Director in 1999 and is the Deputy Chairman. He served as Chairman of the Remuneration Committee until June 2004. He is Chairman of Coty Inc. and InBev and was until May 2007 a Director of the Brunswick Corporation. He is Chief Executive Officer of Joh. A. Benckiser SE.

Kenneth Hydon (63, British)* # 3 6 9 Was appointed a Non-Executive Director in December 2003 and Chairman of the Audit Committee in November 2006. He is a Fellow of the Chartered Institute of Management Accountants, the Association of Chartered Certified Accountants and the Association of Corporate Treasurers. He was the Senior Independent Non-Executive Director between February 2005 and November 2006. He retired as Financial Director of Vodafone Group plc in July 2005 and is currently a Non-Executive Director of Tesco plc, Pearson plc and the Royal Berkshire NHS Foundation Trust.

Graham Mackay (58, British/South African) ‡ Was appointed a Non-Executive Director in February 2005 and the Senior Non-Executive Director in November 2006. He is the current Chief Executive of SABMiller plc, one of the world’s largest brewers with brewing interests or major distribution Executive Committee agreements in over 60 countries across six continents. He joined the then South African Breweries Limited in 1978 and has held 1 Javed Ahmed (48, Pakistani) 4 Colin Day (52, British) 7 Alain Le Goff (55, French) a number of senior positions within that group. Executive Vice President, North America and Chief Financial Officer. Joined Reckitt Executive Vice President, Supply. Was Australia and Regional Director North Benckiser in September 2000 from Aegis appointed EVP for Operations at Benckiser in Dr Gerard Murphy (52, Irish) * American Household. Joined Benckiser in Group plc where he was Group Finance October 1996. He joined the Company in Was appointed a Non-Executive Director in June 2005. From 1992 as General Manager, Canada and in Director from 1995. Prior to that he was at 1986, serving as Industrial Director in France, February 2003 until February 2008 he was Chief Executive Officer 1995 became General Manager, UK. Kodak, British Gas, De La Rue Group plc and Monaco, Germany and as Logistics Director of Kingfisher plc. He was previously Chief Executive Officer of Appointed SVP North American Household in ABB Group. for the Group. He was previously with Lesieur. Carlton Communications plc, Exel plc and Greencore Group plc. 2001 and EVP, North America and Australia Earlier in his career, he held various senior positions within food Colin is responsible for financial controls and Alain is responsible for the global supply in September 2003. Prior to joining Benckiser, and drink group, Grand Metropolitan (now Diageo plc) in Ireland, reporting, treasury, tax, corporate chain including procurement, manufacturing, he worked with Procter & Gamble and Bain UK and USA. He was appointed a Senior Managing Director development, legal affairs and internal audit. warehousing and logistics. Also responsible & Company. (partner) of The Blackstone Group’s corporate private equity for management of Squeeze and X-trim gross practice in March 2008. Javed is responsible for North America and margin enhancement programmes. 5 Gareth Hill (41, South African) Australia/New Zealand. Judith Sprieser (54, American) ‡# Senior Vice President, Information Services. Was appointed a Non-Executive Director in August 2003 and Joined Reckitt Benckiser in October 2006. 8 Elio Leoni Sceti (42, Italian) has been Chair of the Remuneration Committee since June 2004. 2 Bart Becht (51, Dutch) Previously Information Systems Director at Executive Vice President, Europe. Joined She was previously Chief Executive Officer of Transora, Inc., an Chief Executive Officer. Joined Benckiser in Arcadia Group Ltd since 2000, having joined Benckiser in 1992 serving in various e-commerce software and service company and Executive Vice 1988 and served as General Manager in as the e-Commerce Development Director. marketing roles and as General Manager of President (formerly Chief Financial Officer) of Sara Lee Corporation. Canada, the UK, France and Italy before being Prior to Arcadia, Gareth was at IBM UK Ltd, Germany and Italy. Following the merger in She is a Director of Allstate Insurance Company, USG Corporation, appointed Chief Executive of Benckiser Rex Trueform Clothing Ltd in and 1999, Elio was promoted to SVP, North InterContinental Exchange, Inc., and Royal Ahold, NV. Detergents, subsequently Benckiser N.V., in Arthur Andersen. He is a qualified chartered American Household and to EVP Category 1995. He was appointed Chief Executive accountant and has a BA in Commerce from Development in 2001. He was appointed EVP, David Tyler (55, British) * Officer of Reckitt Benckiser on the merger in the University of Cape Town, South Africa. Europe in July 2006. Elio was previously with Was appointed Non-Executive Director in February 2007. He is December 1999. Previously with Procter & Procter & Gamble in Italy and France. Chairman of Logica plc and of 3i Quoted Private Equity Limited, Gareth is responsible for global information Gamble both in the USA and Germany. and also a Non-Executive Director of Experian Group Limited and systems and services and telecommunications. Elio is responsible for all European markets – Burberry Group plc. His executive career from 1974 to 2006 was Bart is Chairman of the Executive Committee. Western and Eastern and the Company’s spent in financial and general management in Unilever plc, private label business. 6 (49, Indian) County NatWest Ltd, Christie’s International plc and GUS plc. 3 Freddy Caspers (47, German) Executive Vice President, Category Peter White (66, British) Executive Vice President, Developing Markets. Development. Joined Reckitt & Colman in 9 Frank Ruether (55, German) Was appointed a Non-Executive Director in December 1997. He Joined Benckiser in September 1997 as EVP 1987 serving in various roles including Senior Vice President, Human Resources. was previously Group Chief Executive of Alliance & Leicester Plc. for Eastern Europe. He previously served in Regional Marketing Director, South Asia. Joined Benckiser in July 1996 as Personnel He was Chairman of the Audit Committee between May 1998 PepsiCo and Johnson & Johnson in a variety Following the merger in 1999, he assumed Director and was appointed SVP Human and November 2006. He resigned as a member of the Audit of international assignments in Europe, US, the position of Category Group Director, Resources in March 1997. He was previously Committee in November 2007 and will retire from the Board at Eastern Europe and Turkey. Home Care. He was appointed SVP, Regional with Mars, 1986–1996, as Director of the conclusion of the AGM to be held in May 2008. Director, Northern Europe in 2001 and then Compensation & Benefits (Europe). Freddy is responsible for all companies in Asia EVP Category Development in July 2006. Pacific, Latin America and Africa Middle East. Frank is responsible for human resources * Member of the Audit Committee Rakesh is responsible for global category management, remuneration and benefits, and ‡ Member of the Remuneration Committee management, R&D, media, market research organisational development. # Member of the Nomination Committee and strategic alliances.

Reckitt Benckiser Shareholders’ Review 2007 15 Shareholders’ information & Chairman’s Statement

During the next year we will... Announce quarter 1 results on 24 April 2008 • Hold the Annual General Meeting on 1 May 2008 • Pay final ordinary dividend if approved on 29 May 2008 • Announce interim results on 28 July 2008 • Pay interim ordinary dividend in September 2008 • Announce quarter 3 results on 27 October 2008 • Announce preliminary 2008 results in February 2009 • Publish 2008 Annual Report and Financial Statements in April 2009 • Hold the Annual General Meeting in May 2009

Annual General Meeting To be held on Thursday, 1 May 2008 at To register, you need your Shareholder Reference Number or folio The London Heathrow Marriott Hotel, Bath Road, Hayes, Middlesex, number (this appears on your share certificate or statement of holding

UB3 5AN. Every ordinary shareholder is entitled to attend and vote at and is a ten-digit reference number) and your postcode. -22% Reduction in factory greenhouse gas emissions since 2000 the meeting. The notice convening the meeting is contained in a 100,000 lives Saved since 2006 Log on to the Computershare website at with Save the Children separate document for shareholders. 2 million+ Trees for Change being planted www-uk.computershare.com and click on ‘Investor Centre’. to offset our carbon emissions 90%+ Of our 3rd party factories Final dividend for the year ended 31 December 2007 in developing markets audited to global standards You will now be asked to register your details. Before registering you -80% Lost working day accident To be paid (if approved) on 29 May 2008 to shareholders on the rate reduction since 2001 will need to accept terms and conditions. 12 Seeing is believing... Global Training register on 29 February 2008. Annual Report and Financial Statements 2007 Programmes boost staff 70% Manufacturing You will then be asked to choose a unique User ID and password and waste now Company Secretary Elizabeth Richardson recycled to enter your email address. Registered Office 103-105 Bath Road, Slough, Berkshire SL1 3UH To finalise registration you will receive an email to which you must Telephone: 01753 217800 Facsimile: 01753 217899 reply, for verification purposes, to complete the registration. After Registered and domiciled in England No. 6270876 completion, an activation code will be mailed within ten days to your registered address. After the initial registration process you will have Company status Public Limited Company immediate read-only access to your information. Annual Report and Financial Sustainability Report 2007 Auditors PricewaterhouseCoopers LLP Statements 2007 (to be published July 2008) Once you receive your activation code you will need to log back on to Solicitors Slaughter and May the Computershare website. Log into Investor Centre as before and insert the User ID and password you chose at first registration and your Registrar and transfer office If you have any queries about your activation code in the Investor Centre ‘Login’ box. This review is part of an integrated approach to shareholding, please write to, or telephone, the Company’s Registrar at reporting our total performance. Our family of reports the following address: With Investor Centre you can quickly, efficiently and at your own also includes the Annual Report and Financial convenience update your address and dividend payment instructions Computershare Investor Services PLC, The Pavilions, Bridgwater Road, Statements, the Sustainability Report on our social and Bristol BS99 6ZY online, without the need to fill out any forms. environmental responsibilities, and regularly updated Reckitt Benckiser shareholder helpline 0870 703 0118 Change of address details can be accessed by clicking ‘Address corporate responsibility information at website: www-uk.computershare.com change’ on the left-hand side of the screen and payment instructions www.reckittbenckiser.com can be updated by clicking on ‘Bank instructions update’. Viewing your shareholding If you have internet access, you may Reckitt Benckiser Group plc, 103-105 Bath Road, view your shareholding by accessing the Computershare website, When updating, you will be asked to check your new details and these Slough, Berkshire SL1 3UH, United Kingdom www.computershare.com. You will need your Shareholder Reference will not be updated until you confirm that they are correct by clicking Number (SRN) which appears on your share certificate. ‘Submit’. For payment instruction updates you will be given a Transaction Reference Number on screen for the update you have Dividends If you wish to receive your dividends directly to your bank made. Please take a note of this for future reference. Designed and produced by The Workroom www.workroom.co.uk. account, or by way of additional shares, please contact the Registrars Photography by Andy Wilson, Tim Barker, Patrick Harrison and Duncan Smith. and ask for the relevant forms. If you have forgotten or lost any of your access details or have any Printed by the colourhouse. This paper is produced using a 100% Chlorine Free other queries, please contact the Investor Centre helpdesk on (ECF) bleaching process and a minimum of 50% FSC certified pulp from Computershare Investor Centre Computershare’s Investor Centre 0870 873 5805. Lines are open 8 am - 5.30 pm. sustainable forests with a verifiable chain of custody. The outer wrapping used is allows you to update your address and payment instruction details for made from oxo-biodegradable plastic. your shareholding as well as, among other things, view trade histories * Share prices 20 minutes delayed and share prices*.

and paying down virtually all of the remaining debt taken on especially those senior executives who assumed new to acquire Boots Healthcare International. positions in 2006.

The Directors propose a final dividend of 30.0 pence which We continue to focus much attention on the need for will bring the total for the year to 55.0 pence, an overall a strong, sustainable supply of talented people, with increase of 21%. The increase is ahead of the earnings growth continuity in style and culture, to fill senior management of the Company, reflecting the Board’s confidence in the positions in future. business momentum. Annual General Meeting resolutions The acquisition of Adams on 30 January 2008 for around Towards the end of 2007, the Company completed its £1.1bn in cash will not materially alter the Company’s ability to Scheme of Arrangement to create a new top company, continue returning cash to shareholders. Reckitt Benckiser Group plc. This change means that the Company now has plentiful distributable reserves to allow The Board of Directors cash returns to shareholders for many years to come. There has been no change in the Board of Directors since the year end. Peter White will not seek re-election at the Most resolutions at the AGM this year are standard, with forthcoming Annual General Meeting. Peter has been an two additional resolutions which seek approval to extremely valuable member of the Board for ten years and we amendments to the Company’s Articles of Association and Dear Shareholder thank him very much for his most useful contribution, and in authorisation for the Company to communicate with particular for his wise chairing of the Audit Committee from shareholders electronically and I hope they will receive the 2007 was an excellent year for Reckitt Benckiser and 1998 to 2006. approval of our shareholders. The Board strongly its shareholders. The Company posted record recommends that shareholders continue to support the financial results, it further strengthened the global The Board regularly reviews the performance and results of strategies and policies that have brought such success to market positions of its major brands and it expanded the business and holds specific reviews with management the Company. We look forward to updating you further at further into consumer healthcare, a key strategic on brand, area and functional performance. The Board also our Annual General Meeting on 1 May 2008. ambition, with the acquisition of Adams Respiratory reviewed various other aspects of the business during the year, Thanks Therapeutics, Inc. in the USA (January 2008). The including annual reviews of corporate governance, corporate On behalf of all shareholders, I extend our sincere thanks Company’s balance sheet remains strong and we are responsibility, reputational and business risk. The Board also again to Bart Becht and his team for the achievements of well positioned for future growth. conducted its annual appraisal of its own performance. the past year. My thanks also go to the members of the Returning cash to shareholders Management Board for their contribution and support. Finally, I again The strong growth of the business, leveraged into even The success of the Company owes much to the strength thank shareholders for their confidence in the Board and better increases in profit and cash flow, allowed the of its brands, but it would not succeed without the the Company, and I look forward to further success in the Company to reward shareholders with an increasing rate commitment and passion of the management team under years to come. of cash return. In 2007 we completed another £300m of the leadership of Bart Becht, our CEO. 2007 was a year share buy backs, while paying higher dividends of £358m which demonstrated the strength of our people, and Adrian Bellamy Chairman

16 Reckitt Benckiser Shareholders’ Review 2007