Annual Report and Accounts 2024

POWERBRANDS

WITH IMPACT

Reckitt Annual Report and Accounts 2024

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CONTENTS

Value Creation Model Sustainability Performance Review

10 45

STRATEGIC REPORT

1 At a Glance

2 Our Powerbrands

4 Chair’s Statement

6 Chief Executive Officer’s

Statement

8 People and Culture

10 Value Creation Model

16 Strategic Priorities

17 Simpler Organisation

18 Our Core Business

19 Market Execution

22 Self Care

24 Germ Protection

26 Household Care

28 Intimate Wellness

30 Essential Home

32 Mead Johnson Nutrition

34 Fuel for Growth

35 Capital Allocation

36 Total Shareholder Returns

37 Key Performance Indicators

38 Sustainability Performance

Dashboard

39 Financial Performance

45 Sustainability Performance

Review, including Non-Financial

and Sustainability

Information Statement

52 Risk Management

57 Our Viability Statement

GOVERNANCE

58 Corporate Governance Report

60 Board Leadership

63 Senior Leadership

65 Reckitt’s Approach to

Governance

67 How We Are Governed

68 Board Roles and Responsibilities

69 Governance Framework

71 Purpose and Culture

72 Board Activities

74 Maintaining the Trust of

Stakeholders

78 Section 172 Statement

79 Board Performance Review

andEffectiveness

81 Nomination Committee Report

86 Audit Committee Report

94 Compliance Committee Report

96 Directors’ Remuneration Report

134 Report of the Directors

138 Statement of Directors’

Responsibilities

FINANCIAL STATEMENTS

139 Independent Auditor’s Report

155 Group Financial Statements

198 Parent Company Financial

Statements

205 Subsidiary Undertakings

OTHER INFORMATION

218 Climate-Related Financial

Disclosures

223 Alternative Performance

Measures

228 Shareholder Information

Financial Performance

Like-for-like

net revenue growth

+1.4%

2023: +3.5%

IFRS net

revenue growth

-3.0%

2023: +1.1%

Net revenue from more

sustainable products

34.9%

2023: 29.6%

Adjusted operatingmargin

24.5%

2023: 23.1%

IFRS operating margin

17.1%

2023: 17. 3%

Reduction in absolute

Greenhouse Gas (GHG)

emissions from

operations

69%

2023: 67%

Adjusted total EPS diluted

349.0p

2023: 323.4p

IFRS total EPS diluted

203.2p

2023: 228.7p

Social impact investments

£34mn

2023: £31mn

Full-year dividend

202.1p

2023: 192.5p

Cash returned

toshareholders

£2.7bn

2023: £1.5bn

People positively impacted

through our social

impactprogrammes

29mn

2023: 19mn

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At a Glance

A WORLD-CLASS

HEALTH AND

HYGIENE COMPANY

Reckitt is home to some of the world’s best-loved consumer brands

in their categories, which people trust to care for the ones they love.

Our products are chosen by consumers millions of times each day

to support their health and wellbeing. Everything we do, every

decision we make, has that moment of choice at its heart.

As a company, our purpose is to protect, heal and nurture in the pursuit of a cleaner,

healthier world. That’s because we believe good health starts at home, in our

communities and workplaces. We believe hygiene is the foundation of health and we

deliver for consumers, whether they are preventing the spread of germs, treating a cold

or protecting against sexually transmitted infections.

We combine deep consumer insights with world-class science to create superior

products that address the everyday issues we all face when it comes to our families’

health and hygiene. Whatever need we are meeting, we help to make lives easier,

cleaner and healthier, both now and in the future.

1 Adjusted and other non-GAAP measures, definitions and terms are defined on page 223

2 Since 2015

3 Cumulative since 2020

4 IFRS operating margin and EPS are impacted mainly by an intangible asset impairment charge

andrestructuring costs, see page 226 for more details

Reckitt Annual Report and Accounts 2024

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Our Powerbrands

Reckitt is focused on a portfolio of

market-leading Powerbrands that

support health and wellbeing. These

brands have a high level of consumer

trust, premium positioning and

competitive advantage.

That enduring competitive advantage is built

through the powerful combination of Reckitt’s

unique consumer insight, science and

entrepreneurial spirit. It helps drive attractive

earnings models for our 11 Powerbrands, with

high gross margins that in turn fuel ongoing

reinvestment and innovation, such as the 2024

introduction of Mucinex Mighty Chews, the first

over-the-counter medicated children’s soft

chewable tablet for cough relief (see page 11

for more information on how we build

ourPowerbrands).

POWERBRANDS

WITH IMPACT

With a pipeline of superior products that

address people’s everyday needs, we create,

build and broaden our iconic brands, taking

advantage of significant, long-term runways for

growth, driven by population dynamics,

economic opportunities and consumer trends.

This also drives expansion in our four core

categories: Self Care, Germ Protection,

Household Care and Intimate Wellness.

In addition to our Powerbrands, which make up

more than 80% of our core business, we have

likely future Powerbrands including Move Free

and Biofreeze, as well as local heroes including

Lemsip, Jik and Veja. Together, this portfolio

serves both the universal and unique health

and hygiene needs of people around the world,

while delivering sustainable growth and

long-term value creation.

SELF CARE

Strepsils, Mucinex, Gaviscon and Nurofen

are our over-the-counter (OTC)

Powerbrands, trusted by consumers

andhealthcare professionals to treat

arange ofsymptoms.

GERM PROTECTION

These Powerbrands, Lysol, Dettol and

Harpic, protect against the spread of

germs, enabling good hygiene, which

wesee as the foundation of health.

HOUSEHOLD CARE

Two Powerbrands, Finish and Vanish,

areglobal leaders in their respective

categories. Their growth is fuelled

byopportunities for premiumisation

andpenetration.

INTIMATE WELLNESS

Durex and Veet are global leaders in their

respective categories, condoms and

depilatories, driven by innovation and

premiumisation as we serve growing

consumer interest and engagement.

Read more on page 22 Read more on page 24 Read more on page 26 Read more on page 28

OUR PORTFOLIO OF POWERBRANDS

OUR CATEGORIES

AND POWERBRANDS

GERM

PROTECTION

HOUSEHOLD

CARE

INTIMATE

WELLNESS

SELF CARE

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Our Powerbrands continued

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Chair’s Statement

2024 was an important year, in which we laid out a

new direction for our business. We have revamped

our strategy to streamline our portfolio, simplify

ourorganisation and refresh our leadership team

and Board.

We believe this will improve our performance and ensure

Reckitt is a leader, fit for the future. We have much work to do

but we are clear on the plan we have in place, confident of

Reckitt’s strengths and potential to deliver strong growth and

value creation.

A world-class company in resilient categories

Reckitt is a company with an important near-200-year history, a

global footprint and an enviable portfolio of well-loved and trusted

brands that improve people’s lives. Our Powerbrands are market

leaders and play in resilient categories with long-term runways for

growth due to favourable demographic and consumer trends. All

of this makes for a strong and attractive foundation.

Alongside this, the Company has an entrepreneurial and

inclusive culture, a talented and motivated workforce and a

clear set of priorities that will serve Reckitt well as it evolves as

a world-class consumer health and hygiene company.

SECURING OUR

FUTURESUCCESS

We are confident of

Reckitt’s strengths and

potential to deliver growth

and value creation.

Sir Jeremy Darroch

Chair

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Chair’s Statement continued

As a Board, we value external perspectives, and in 2024 we

created an action plan to build on the results of a large survey

we conducted across a broad spectrum of respondents in our

top markets, from business stakeholders to general consumers.

The results showed that while there is more to be done to

increase familiarity with Reckitt, people who were familiar with

us had a high degree of trust in the Company. I know that our

employees, executives and the Board are proud of that trust,

and keep it front of mind in our decision-making.

Board changes

During 2024 we made good progress in strengthening the

Board. I’m happy to note several recent Board changes. In 2024,

we were joined by Marybeth Hays and Fiona Dawson, and of

course I took over as Chair from Chris Sinclair. I want to thank

Chris for his nine years of service to this great Board. We

benefited greatly from his judgement and experience.

Following on from that, the Board was bolstered further with the

appointments of Mahesh Madhavan and Stefan Oschmann, who

both have many years of experience as CEOs of global

businesses. I know their insight and experience, as well as that

from other Board members, will serve our Group well, as we

oversee this exciting chapter in Reckitt’s history.

As we look to the future, I want to thank all our colleagues. I am

always struck by the quality, enthusiasm, talents and

commitment of the people in this business. They work tirelessly,

often unseen, each and every day, in service of our consumers,

our customers and all of us as stakeholders.

I also want to thank you, our shareholders, for your long-term

perspective. Seeing this commitment from all of our

stakeholders, even during such change, gives me much

confidence in what we can achieve together in the future.

Sir Jeremy Darroch

Chair

Mead Johnson Nutrition is now considered non-core and we

willconsider all options to maximise its value for shareholders,

taking the time required to achieve the right solution.

Shareholder returns are a foremost priority, and the Board is

confident that our new strategy and structure will generate value

for shareholders going forward. This confidence is reflected in

the second £1 billion share buyback programme that we initiated

in July 2024, following completion of a previous £1 billion

programme launched in 2023. The first two tranches of the

current programme, worth £500 million, are complete, with the

third tranche, worth another £500 million, expected to complete

by 30 June 2025. We expect the programme to continue in the

coming years, consistent with our capital allocation principles.

2024 performance showing progress

The financial performance we have delivered shows progress

and sets a strong base for future growth. Like-for-like net

revenue rose 1.4%, in line with our guidance and adjusted

operating profitrose at 3%

Delivery of these results came at a time of uncertainty for

manyof our teams at Reckitt, but right across our business

ourcolleagues have been working extremely hard and doing

anexcellent job of staying focused on performance.

Engaging with external stakeholders

One of the key responsibilities of the Board is to both

constructively challenge and support the CEO and Executive

Committee, overseeing execution of the Company strategy. We do

this by providing critical internal and external perspectives, honed

by our engagement with individuals and groups from across our

stakeholder universe, from investors and consumers to non-

governmental organisations and other members of civil society.

In 2024, Board members met with senior government

representatives from the United Kingdom and attended valuable

gatherings as part of the Global Leadership Foundation as well as

New York Climate Week, where we engaged with policy makers

and leaders from the worlds of academia, politics, technology

and business about advancing solutions for health and hygiene

across markets.

1 IFRS operating profit declined 4% and was impacted mainly by an intangible asset

impairment charge and restructuring costs, see page 226 for more details

Our objective, therefore, is to create one of the strongest

growth and margin profiles of our peer group, overseen by new

leadership with a structure that will bring greater focus, faster

decision-making and improved execution. Becoming a simpler,

more agile organisation will better enable us to navigate a more

complex world, to both seize the opportunities and deal with

the challenges arising from the likes of climate change,

technology and macroeconomics.

Shareholder focus

Underpinning this is a drive to better deliver for our

shareholders. We recognise that in 2024 our share price has

underperformed, but I want you to know that we are doing all

we can to demonstrate the enduring value of our business to

the market and to turn this performance around.

In July 2024, our Chief Executive Officer Kris Licht presented

thedetails of our new strategy and organisational change.

Ourteams spent the second half of 2024 laying the important

foundations for the future, with the new structure taking effect

from 1 January 2025. We are workingto exit a group ofstrong

homecare brands, now calledEssential Home, which we are on

track to do by the end of 2025.

Our objective is to create one of

the strongest growth and margin

profiles of our peer group.

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Chief Executive Officer’s Statement

2024 was a foundational year for Reckitt. It

wasayear of strategic clarity as we announced

asharpened focus on Powerbrands and a

simpler,more effective operating model.

It was also a year in which we delivered against our strategic plan

despite a volatile environment and challenges to our business.

Against that backdrop, we have driven top and bottom-line

growth and substantially increased cash returns to shareholders.

Powerbrands with impact

Reckitt owns great brands, which rank amongst the world’s

bestloved in their categories. They offer superior, efficacious

solutions that serve the health and hygiene needs of consumers

globally. We have invested diligently over the past four years

toensure these brands receive the world class support from

ourR&D and Supply organisations they deserve.

A YEAR OF

STRATEGICCLARITY

AND DELIVERY

It was a year of delivery

against our strategic plan,

of top and bottom-line

growth and substantial cash

returns to shareholders.

Kris Licht

Chief Executive Officer

Adjusted earnings per share growth

+7.9%

Cash returns to shareholders

+75%

LFL net revenue growth

+1.4%

1 Adjusted and other non-GAAP measures, definitions and terms are defined on page 223

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Chief Executive Officer’s Statement continued

We bring our brands to life through premium products that

extend and deepen their equities through science-based

innovation. This supported the welcome return of volume growth

across our brand portfolio as the year progressed and a growth

algorithm better balanced between volume, price and mix.

Strong contributions from our innovation platforms in Hygiene

enabled Lysol to drive volume-led growth through our Air and

Laundry Sanitiser products, and Finish through our premium

thermoformed dishwasher tablets, despite the return to a

morecompetitive environment in developed markets.

In Health, the success of our new hyaluronic acid condoms

helped secure another strong year for Durex in China. Alongside

strong performances from Gaviscon and our Vitamins, Minerals

and Supplements business, this helped offset softer demand for

our seasonal OTC products following a cold and flu season that

both ended weak in 2023 and started late in 2024.

Commitment to deliver shareholder returns

Despite this seasonality and the supply impact of the tornado

that hit our Nutrition storage facility in July, we were successful

in delivering LFL net revenue growth and adjusted operating

profit growth in 2024, aswell as a 75% increase in cash returns

to shareholders.

Changes in the regulatory environment for infant formula and a

more challenging marketplace for topical pain relief resulted in a

£838 million goodwill impairment to these assets (see page 173).

Nonetheless, at the Group level we achieved our ambition of

growing adjusted operating profit ahead of net revenue. This

enabled us to increase investment inour brands and grow

earnings by 7.9%, resuming an important cadence in adjusted

EPS growth that has been lacking in recent years. It also

supported a record £2.7 billion in cash returned to shareholders

through our dividend and continued share buyback programme.

Investing for growth

Returning cash has not been at the expense of investing for our

long-term growth. In December, I was delighted to raise the

Reckitt flag at our newest manufacturing facility in Wilson, North

Carolina, which as the cornerstone manufacturing site for our US

OTC business will enhance our agility in meeting seasonal

demand in our largest market.

In January 2025, I was proud to be at the commissioning of our

new R&D centre in Shanghai. This will provide us with a

dedicated innovation platform for China to complement our

state-of-the-art manufacturing facility in Taicang, which has

already helped to deliver the double-digit growth we enjoyed in

China in 2024.

These investments in our growth exemplify our commitment to

enhancing the resilience of our supply footprint while deepening

our R&D capabilities. They will help ensure we continue to

innovate the very best products and strengthen execution in

market with local capabilities that promote their future growth.

Harnessing our people and culture

In July, I was pleased to bring strategic clarity to our future by

introducing a new Reckitt focused on 11 core Powerbrands. The

change I set out draws on our value creation principles, which

ensure that every brand we possess works hard for its place in

our portfolio.

These Powerbrands are at the heart of our growth model.

Supporting them now is a new organisational structure that

willenable us to execute in our markets at a level of excellence

we expect from the world class consumer health and hygiene

company we are becoming.

We have moved at pace to reshape Reckitt and bring about

thischange. We entered 2025 as an area-led business

positioned to maximise the value of our new Self Care, Germ

Uniting us now is a clear direction:

ashared compass through which to

navigate opportunity and harness the

entrepreneurial energy of our people

Protection, Household Care and Intimate Wellness categories

across three global Areas. Of these, Emerging Markets is now

our largest and fastest growing, delivering 5.5% growth in 2024

led by China’s double-digit performance.

This change has enabled us to eliminate duplication and

accelerate decision making through the organisational delayering

we have achieved. It also supports an ambitious target to reduce

our fixed costs over the next three years under our Fuel for

Growth programme while releasing these to increase brand

investment and drive earnings growth in the meantime.

In announcing these changes, I was pleased to appoint some of

ourlongest-serving and most accomplished global leaders to our

new businesses, who now join our leadership team on our Group

Executive Committee. With these appointments, I am confident

we are bringing the skills and experiences of our very best to each.

A year of opportunity

Across emerging markets and developed economies, 2025

offers an abundance of opportunity for Reckitt. We possess

acohesive, world-class portfolio of Powerbrands and a proven

playbook for how to grow and expand them. We enjoy scale

across our value chain and our balanced global footprint. And

we are undertaking a step-change in organisational

effectiveness that will materially improve our ability to execute

with excellence in market.

Uniting us now is a clear direction: a shared compass through

which to navigate opportunity and harness the entrepreneurial

energy of our people to deliver a brighter future and a cleaner,

healthier world.

Kris Licht

Chief Executive Officer

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People and Culture

UNLEASHING THE POTENTIAL OF OUR PEOPLE,

PERFORMANCE AND PURPOSE

We have a special culture,

delivered through our

people and brands. We

dothe right thing, always,

and are passionate about

delivering performance

thatis purpose driven,

entrepreneurial, fast paced

and action oriented.

Ranjay Radhakrishnan

Chief Human Resources Officer

In 2024, Reckitt announced the

strategic reshaping of our business to

sharpen our portfolio and simplify our

organisation for accelerated growth.

To achieve this, we are reorganising

into three businesses: core Reckitt,

Essential Home and Mead Johnson

Nutrition, reducing organisational

layers to foster greater accountability

and speed of decision making.

Within core Reckitt we have also adopted

ageography-category organisation and

leveraged our global functions to further

enable our commercial organisation. This work

has led to new appointments to Reckitt’s

Group Executive Committee (see page 64) as

well as changes to our Category, Area and

Centre of Excellence teams. The vast majority

of these appointments have been internal

promotions of leaders who have rich

commercial, cross-market experience at

Reckitt. This is a testimony of past leadership

development initiatives.

As we position our portfolio for the future, it is

our people who unite us. Our spirit, drive and

determination are evident in every one of our

markets, categories and functions. Our

ambition is to be a world-class consumer

health and hygiene company and our

Leadership Behaviours: Own, Create, Deliver

and Care are critical enablers to our success.

We Do the Right Thing. Always.

In November 2023, we brought together all

ofour learning programmes for professional

growth onto a single platform that offers

personalised learning and development

options. The uptake of MyDevelopment

Learning has shown strong momentum

overthe past year, with over 17,000

individuallearners.

Supported by changes to the way we define

and nurture talent, we will continue to provide

tailored development and learning journeys

forevery colleague to grow, feeding our talent

pipeline and building Reckitt’s next generation

of leaders.

Recognising and rewarding performance

Reckitt strives for sustained high performance

in a globally competitive world. We have

updated several elements of how we set

andmeasure performance, supported by

ourestablished cycle of objective setting,

performance reviews and assessment, and

development conversations. These changes

ensure that we not only further strengthen our

performance culture, but also ensure that our

colleagues remain purpose led and values

driven. Our performance, talent and reward

philosophy is aligned to ‘who we are’ and

recognises both ‘what’ we do and ‘how’

wedoit.

Central to our remuneration philosophy are the

principles of pay for performance alongside

shareholder and strategic alignment.

Combined with our Compass and business

model, these principles inform how decisions

are made, how leaders lead and how we

reward them.

PURPOSE, COMPASS AND

LEADERSHIP BEHAVIOURS

Building on the foundation created to date,

wehave put in place plans to continue

strengthening our culture. Our culture places

people and purpose at the heart of our

business. It recognises that how we work is

asimportant as what we do. It is inclusive

andvalues everyone’s unique perspective,

where everyone has potential to grow and

weall hold accountability for making Reckitt

agreat place to work.

Nurturing talent

We believe everyone has the potential to grow

and develop, including those within specialised

roles, those making lateral moves, and those

with potential for bigger impact.

Own

Deliver

CreateCare

Do the

right thing.

Always.

Our Purpose

We exist to

PROTECT,

HEAL AND NURTURE

in the pursuit of a cleaner

andhealthier world

Our Compass and

Leadership Behaviours

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People and Culture continued

INCLUSIVE LEADERSHIP

We continue to strive to embed inclusion

into our DNA and believe that building

aninclusive culture is everyone’s

responsibility. Enhancing our global

Conscious Inclusion programme, in 2024

we launched our Inclusive Leadership

programme, encouraging our most senior

leaders toreview their role and

contribution toinclusion within their

teams,and supporting them to complete

aself assessment and action plan.

We plan to enhance this programme

in2025 as we continue our ongoing

partnership with our Wellbeing partner,

Hintsa, and introduce new methods

topromote, review and action

colleaguefeedback.

For the majority of colleagues, their

performance will feed into our Annual

Performance Plan (APP) alongside our

collective performance against key

performance metrics, tailored to

individualmarkets.

Reckitt’s most senior managers participate

inour Long-Term Incentive Plan (LTIP).

Participation has been expanded for 2025,

extending a longer-term element of reward

tobalance in-year performance, enhancing

ourculture of ownership and supporting us

inrecruiting, retaining and developing the

bestglobal talent.

Reflecting the countries and

communities we serve

As a global organisation that reaches a diverse

group of customers, consumers, suppliers and

partners, conscious inclusion is at the heart of

everything we do. We recognise that our

people are a source of competitive advantage.

The fact that every one of us is unique, with

our own identity, background and experience

gives us diversity of thought and enables

creative solutions. Our ambition is for everyone

to be welcomed, respected and heard. We

want everyone to be able to fully contribute

toour business and to thrive as werepresent

and reflect the countries and communities that

we serve. We are proud tobe recognised as a

Global Living Wage employer (see page 49).

Our Global Inclusion Board, chaired by Reckitt’s

CEO, provides strategic leadership and

governance for our inclusion agenda and how

it is deployed for our people, within our brand

identities and across our supply chain. The

Board works with market-based Local Inclusion

Boards and Global Employee Resource Groups

(ERGs), to ensure our global direction is

meaningful across all of our markets.

Our four Global ERGs lead the activation

ofourinclusion strategy, representing four

groupsof colleagues and allies: Women,

Race& Ethnicity, LGBTQ+ and Disability.

Eachcontributes to moments of celebration

throughout the year, amplifying the voices

oftheir members and building allyship

throughout our employee population.

Creating employee dialogue

We paused our annual employee survey

for2024 in order to reassess our employee

feedback strategy. Committing to greater

transparency on the points that matter most

toour people, in 2025 we are introducing

newmethods of listening to our colleagues

throughout the year.

Anchored by an annual global survey,

supported by shorter ‘Pulse’ surveys

throughout the year and targeted requests

forfeedback at key moments, our new

methodology will bring together feedback

andsentiment from across multiple colleague

check points to inform decisions and drive

action planning.

Commitment during change

Change is a continuous reality within our

business as we adapt and grow. Throughout

these changes we remain committed to our

people, sharing our ambitions for the future

and ensuring our culture reflects their

enthusiasm, drive and professionalism.

Read more in our Directors’ Remuneration Report

on page 96

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Value Creation Model

MANAGING OUR PORTFOLIO FOR VALUE CREATION

Our three portfolio principles

Our first principle requires each brand

todemonstrate a clear, long-term runway

forgrowth.

This can be driven in several ways. First,

through premiumisation by leveraging

ourinnovation platforms to develop superior

products that anticipate consumer needs

asthey evolve. Second, through category

creation by innovating to establish entirely

new categories or expanding existing brands

into adjacent ones. Third, through household

penetration by increasing our reach and

driving adoption of our products in new

households and across markets with low

penetration rates.

The second principle requires each brand to

possess an attractive earnings model. The

primary metric we look at is the strength of its

gross margin, which must be high and towards

the upper end of its category. This approach

supports continued reinvestment and

innovation, which in turn fuel additional

growth through premiumisation and category

creation. It also ensures each brand can

deliver profit contributions consistent with the

Group’s gross margin, which is amongst the

highest in the industry.

Third, each brand must demonstrate an

enduring competitive advantage. This is rooted

in strong brand equity, built through decades

of consumer loyalty and trust and extended

through a superior, innovative product range

that sets the brand apart in the marketplace.

These three principles provide the strategic

lens through which we evaluate every brand in

our portfolio. They inform our capital allocation

choices and ensure we play incategories that

offer the best long-term opportunities for

growth and sustainable valuecreation.

July 2024 strategic update

These principles drove the strategic choices

we announced in July 2024 to sharpen our

portfolio focus on 11 Powerbrands in four

consumer health and hygiene categories (see

page 18 for details). Drawn from those with the

strongest equity, these brands capture

theessence of Reckitt’s growth potential.

Our business model is rooted in three fundamental principles that

drive the value we create through our brands and the categories

inwhich we play.

These principles define our brand portfolio by setting the

expectations against which each must deliver, and guide our

strategicchoices as we manage our portfolio for value creation.

Together, they comprise a portfolio with the

potential to deliver one of the most attractive

growth and profitability profiles in the industry.

Alongside this core portfolio are two

businesses, Essential Home and Mead Johnson

Nutrition, which although strong and growing,

do not fully align with these three principles.

We have therefore embarked on a process to

find market opportunities for each.

From 1 January 2025, these two non-core

businesses operate and are managed

independently alongside core Reckitt, replacing

our Global Business Units as our operating

segments in the Group’s financial reporting.

We plan to exit Essential Home by the end

of2025 while exploring all options for Mead

Johnson Nutrition, where we will take the

timenecessary to determine the path that

maximises shareholder value for this

market-leading business.

Long-term

runway for

growth

Attractive

earnings

model

Enduring

competitive

advantage

Our three principles for portfolio value creation

ensure every brand earns its place in our portfolio

Portfolio Value Creation

Read more page 21

HOW WE CREATE VALUE

Reckitt’s business model harnesses our value

creation principles to a proven playbook

onhow we grow and expand Powerbrands.

Our sharpened portfolio and simpler

organisation enable us to create value

guidedby strategic priorities that support

sustainable, long-term growth.

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Value Creation Model continued

WE CREATE AND GROW POWERBRANDS

Reckitt’s Playbook captures the way

we create, build and expand our

iconic brands.

Our Playbook brings together the capabilities

that enable us to deliver sustainable, long-

term growth across our brand portfolio. It has

been honed over many decades of learning

and enables us to create, build and expand

our brands through the ‘Science Inside’ our

innovation platforms. This drives the creation

of superior products that anticipate consumer

needs through premiumisation and the

development of new categories. It extends

toengaging with consumers in local markets

and executing with excellence, which we

continuously strive to enhance.

People are at the heart of everything

we do. To truly understand their

needs, we begin by developing deep

insight into their lives. We immerse

ourselves in their worlds, bringing

everyday problems to life in our

sensory and consumer science labs

around the world to fully understand

and test the local challenges they

face. This ensures we solve people’s

problems by applying science in a

way that adds value to their lives.

Using proprietary advanced analytics and

machine learning, we uncover valuable insights

that reveal hidden patterns in consumer

behaviour and sentiment, which are often

overlooked in traditional research methods.

This enables us to assess why people choose

specific products and to map their behaviour

indemand spaces where they engage.

By combining deep behavioural understanding

with our data-driven analysis, we can identify

unmet needs, high-potential categories and

methods to unlock demand in those spaces.

This is how we keep consumers at the heart

ofour strategy and drive demand-centric

growth through superior solutions across

ourportfolio of market-leading brands.

The Reckitt Playbook

• Deep consumer insights

• Evolving category needs

• Understanding demand

spaces

• Creating and growing

categories

• Global Powerbrands

• Local heroes

• The ‘Science Inside’ Reckitt

• Breakthrough propositions

that delight consumers

• Innovation-led growth

• Optimised supply

organisation

• Global success model

• Excellence on shelf and on

screen

CONSUMER

OBSESSED

ICONIC

BRANDS

SUPERIOR

INNOVATION

EXECUTION

EXCELLENCE

Household penetration

CONSUMER OBSESSED

Category creationPremiumisation

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Value Creation Model continued

Reckitt has been growing brands

foralmost two centuries. Today,

thesuperior, efficacious products

they represent provide health and

hygiene solutions to people in

almostevery country.

Most of our Powerbrands are global leaders

intheir category. We leverage our global

footprint todrive brand expansion through

thebreadth ofour go-to-market networks

andthe scale ofourmanufacturing capabilities.

Our brands are the foundation of our value

proposition and the medium through which we

engage with consumers. Whether it’s Dettol,

launched in 1933 and synonymous with antiseptic

liquid for consumers across the world, or Finish,

apioneer in auto dishwash since 1953, the brand

equity we build represents a unique and powerful

source of our competitive advantage.

Each of the Powerbrands in our core portfolio

has earned its place by meeting our three

ICONIC BRANDS

principles of value creation. Collectively, they

match the high expectations we set around

long-term growth, earnings power and

competitive advantage.

Alongside our Powerbrands are a number of

localhero brands which enjoy strong levels of

consumer loyalty in their local markets. They

include Tempra, Lemsip, Jik and Veja, which meet

our value creation criteria but do not possess the

multi-geography reach of our Powerbrands.

Certain brands have the potential to grow into

Powerbrands over time. These include Move

Free, our joint health supplement, which has

enjoyed strong levels of adoption in China and

contributed to the double-digit growth we

enjoyed there in 2024.

Together, our Powerbrands, future Powerbrands

and local heroes comprise a cohesive and

proven brand portfolio, to which we can apply

our Playbook to build on the strong structural

economics of the regional businesses that

deliver them.

Our ongoing investment in brand equity is a

vitalcomponent of our success and is enabled

though the high gross margins our products

enjoy. Investment broadens the shoulders of our

brands and boosts their ability to create value.

Our ability to premiumise products and extend

them to new categories lies at the heart of this

process as we deliver superior solutions that draw

on the deep science of our innovation platforms.

VANISH: SUSTAINABLE PRODUCT INNOVATION

When developing the new Vanish Oxi Action,

our goal was to help consumers reduce their

energy bills and carbon footprint while

maintaining exceptional performance. Our

research revealed that while consumers

appreciated the convenience of shorter

washes and the potential for energy savings,

they were hesitant to switch to colder

washes, which are the key element in

reducing CO₂ emissions in the wash cycle.

This reluctance stemmed from concerns

about poor stain removal and lingering odours

at lower temperatures.

To address this, we unlocked an exclusive

new cold wash catalyst through our

innovation capabilities. This catalyst allows

the bleaching system to react faster,

enabling effective stain removal even in

colder washes, tackling tough stains and

odours. We enriched our existing formula

with this catalyst and used machine learning

to rebalance the ingredients, optimising the

formula to speed up stain removal in just 30

minutes.

To test the new formula’s effectiveness, we

pioneered a first-of-its-kind, two-phase Life

Cycle Assessment. In the first phase, we

evaluated the efficacy and environmental

impact of our laundry booster in the wash

cycle. In the second phase, we extended our

evaluation to the impact on garment lifespan.

Our results were striking: using our laundry

booster on a 20°C shorter wash cycle can

reduce CO₂ emissions by up to 30%

compared to using detergent alone on a 40°C

longer wash cycle, while still providing

excellent stain removal. Additionally, our

testing showed that washing with our laundry

booster on a colder, milder cycle can double

the lifetime of a garment, with better colour

maintenance, thanks to lower mechanical and

thermal stress. This has significant positive

implications for reducing the environmental

footprint considered in our Life Cycle

Assessment.

Our new formula was successfully launched in

the UK, our largest market for Vanish, in 2023

and has reached at least 350,000 new

households since launch.

Link to strategy

Portfolio value creation

Product superiority

Finish Ultimate Plus All in 1 uses

breakthrough CycleSync™

technology to release the right

ingredient at the right time to

deliver intensive clean and shine.

75% of Finish tablet net revenue

comes from thermoformed

tablets, which have contributed

almost £500 million additional net

revenue in 2024 versus 2019.

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Value Creation Model continued

SUPERIOR INNOVATION

Innovation is a vital driver of our

growth. Through our world class,

science-backed innovation

capabilities, we create value for our

Powerbrands and delight consumers

by premiumising solutions and

introducing new categories.

The ‘Science Inside’ Reckitt

At the heart of our innovation capabilities is deep

scientific expertise. Our innovation platforms fuel

our growth and build brand market leadership by

providing a pipeline of strong, trusted solutions

for our brands. We leverage the strength of

nineinterconnected science and technology

platforms to our products, each dedicated to

discoveries that drive impactful solutions for

high-potential categories we identify through

ourconsumer insights. These capabilities channel

the ‘Science Inside’ our products.

Our microbiome platform, which looks at six

targeted areas including the built environment

biome to understand the microbes in our

surroundings, is a great example of how we apply

our scientific rigour. This understanding helps us

to innovate in categories such as laundry and

demonstrates the clear connection between

hygiene and good health.

Our approach focuses on developing fewer,

bigger and better propositions from each of our

science and technology platforms. We harness

breakthrough science and enable it to travel

across categories. This helps to maximise the

value of new discoveries by applying it across

multiple Powerbrands to address a multitude

ofunmet consumer needs.

We keep sustainability, regulatory compliance

and consumer safety core to this end-to-end

process, ensuring that ‘safety-by-design’ is at the

Recycled content in packaging has been

introduced across multiple products including

Vanish, Lysol, Harpic and Finish to reduce their

environmental impact. The impact of these

projects has contributed to an increase in net

revenue from more sustainable products, which

now accounts for over a third of total revenue

(see more on page 45).

We actively conduct research studies through our

science platforms to help us gain further insights

into our categories and showcase our category

leadership. We recently published a first-of-its-

Durex Fetherlite Our

Hyaluronic Acid (HA)

condoms are one of the

brand’s fastest growing

recent innovations. Bringing

anew lubrication

experience, HA is

particularly popular with

females. With rapid growth

in 2024, Durex now leads

the HAsegment inChina.

kind study on the vaginal microbiome in the open

access journal Microorganisms, in partnership with

two leading gynaecology experts. As an emerging

area of health research, the study examined how

personal lubricants affect the vaginal microbiome.

Our findings demonstrated that various Durex and

KY lubricants do not negatively impact the healthy

vaginal microbiome, addressing concerns based

on previous laboratory test data. By increasing

ourinsights into vaginal health, we are better

equipped to deliver the best products and

solutions for consumers to care for their

intimatewellness.

Our innovation platforms fuel our growth and build

brand market leadership by providing a pipeline of

strong, trusted solutions for our brands. Our

commitment to innovation and the depth of our

platforms ensure that we remain at the forefront

of solving problems for consumers by delivering

products that also further our sustainability goals

and ambitions.

heart of all product development stages while

also aiming to reduce our environmental impact.

Our worldwide team of Regulatory and Safety

Scientists work end to end across our product

portfolio to ensure compliance with all product-

related competent authority regulations as well

as early detection, assessment and mitigation of

emerging regulatory trends and concerns about

ingredients, contaminants, degradants and

impurities. Through proactive Product

Stewardship processes, we strive not just to be

compliant anytime and anywhere but to be

ahead of regulations and societal concerns so

that we can deliver maximum product resilience

and competitive advantage.

Innovating for the consumer

The success of Lysol Air Sanitizer demonstrates

how our platform discoveries lead to breakthrough

propositions. Its launch in July 2023 sparked the

creation of a whole new Germ Protection category

with the first and only air sanitising spray approved

by the EPA, which kills 99.9% of airborne viruses and

bacteria. This groundbreaking innovation was

recognised by the prestigious R&D100 Awards in

2024, winning an award in the Process/Prototyping

category. This innovative solution has not only

created a new category in air disinfection but has

continued to drive strong penetration and growth

for Lysol overall.

The ‘Science Inside’ Reckitt enables us to offer

premium solutions in existing categories. These

include the reformulation of Vanish Oxi Action

using a new patented technology with

sustainability in mind to offer uncompromised

stain removal in a quick, 30-minute cold wash

atjust 20°C (see case study on page 12).

Packaging innovation is another area where

weapply our platform science to reduce

environmental impact. Our polymer science

platform uses novel materials and technology

tomake packaging lighter and incorporate

post-consumer recycled (PCR) polymers.

Read more in Reckitt’s 2024 Sustainability Report

on product safety

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Value Creation Model continued

We are continuing to make strategic

investments to strengthen our local supply

capabilities. In December 2024, we announced

the acquisition of a manufacturing site in

Wilson, North Carolina. Commissioned primarily

to produce Mucinex tablets and liquids,

Wilsonwill become Reckitt’s largest OTC

manufacturing facility in the US and is crucial in

boosting our ability to meet seasonal demand

in our largest single market (see case study

onpage 20).

We also made strides in enhancing our

forecasting and planning through the

deployment of our end-to-end integrated

business planning system. Possessing

embedded scenario planning, this system has

already contributed to improving our forecasting

accuracy, to reducing inventory levels and to

increasing our service levels to customers.

We have expanded our digital logistics

programme with the connection of our ocean

freight operations to a Real Time Transport

Visibility Platform. This has proven valuable

formanaging geopolitical disruptions that

haveimpacted ocean transport. During 2024,

webegan the large-scale roll-out of our

Manufacturing Operating System, which supports

the further enhancement of our manufacturing

excellence programme. This significantly

enhances our visibility of potential improvements

across all areas of our operations and acts as a

means of implementation in some circumstances.

We will continue the roll-out of this programme

throughout 2025.

As part of our ongoing commitment to

improvement, in January 2025 we launched a

newly-designed Supply organisation to set us up

for success and allow us to execute with greater

excellence. Alongside this we are investing in a

long-term sustainable supply chain that will be a

key enabler of stronger value creation for our

business. This new platform will support our laser

focus on developing capabilities to standardise

our ways of working and ensure we are delivering

best-in-class service and superior product quality.

Execution in market is fundamental

toour success. Through our new

operating model, we are continuously

improving the way we serve

consumers through strong customer

relationships and adapting our

products and their delivery to meet

specific local needs. Our global

success model is based on the scale

we enjoy in Emerging Markets,

Europeand North America.

The extensive reach of our go-to-market networks,

combined with the scale of our manufacturing

capabilities, drive the growth of our Powerbrands

and support strong gross margins through

economies of scale and operational efficiencies.

We define success at local market level, tailoring

our approach to the unique needs of every

market, whether through our e-commerce

strategy in China or by amending packaging sizes

to better serve households in emerging markets.

We work continuously to enhance our in-market

execution capabilities. This remains a key priority.

When it comes to customer service excellence

and better meeting consumer needs, there’s no

finish line; there’s always room for improvement.

Optimised Supply organisation

Our supply chain is fundamental to serving our

customers in market. It is the backbone of Reckitt,

spanning manufacturing, procurement, logistics

and customer service and comprises about half

of our organisation.

During 2024, we took strategic measures to

improve our service levels to customers and to

ensure that our supply footprint possesses the

agility to respond to changes in consumer demand.

EXECUTION EXCELLENCE

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INVESTING IN OUR SHARED SERVICES

Our Global Hubs focus on developing

solutions for our business across technology,

data, AI and multi-functional shared services.

They enhance efficiency and innovation on a

global scale and ensure operating capabilities

that surpass industry benchmarks to increase

the quality of service and reduce costs.

In August 2024, we opened a new Global

Hub in Warsaw. Located in the VIBE building

in Warsaw’s Wola District, the office

promotes creativity and adheres to high ESG

standards to reduce energy consumption.

This facility reflects our future vision and

commitment to expanding our shared

services capabilities at Reckitt.

Our new Supply organisation establishes an

effective partnership between our global

capabilities and local execution by providing clear

ownership and accountability. This combination of

capability and executional excellence will ensure

we can win for our customers and our consumers.

Harnessing digital capabilities

Throughout 2024, our IT & Digital organisation

made significant progress in driving and

embedding innovation to enable our global teams

to better serve their markets. We continued to

develop our AI capabilities with a specific focus

on developing tools to enhance execution in

supply, sales, marketing and R&D.

Building on our strong data and AI foundations, in

2024 we launched our ambitious GenAI

transformation programme, which began in

marketing and will expand further in 2025. In

addition to harnessing the best technology

available, we are developing our own tools and

validating new ways to continue to drive

brand-building at Reckitt. Our programme spans

creativity, insights and the key tasks our marketers

perform daily. As we deploy our initial suite of

tools in more key markets in 2025, we are working

to enhance both productivity and growth,

achieving up to 60% faster concept development

and 30% faster advertisement adaptation and

localisation. We are scaling our approach in the UK

and US, improving efficiency, effectiveness and

our ability to better serve local markets as we

integrate GenAI across our marketing tasks.

Our AI capabilities have been developed out of our

Global Hubs, which focus on developing shared

services across our business in order to improve

execution across markets.

Separately, we have continued our

commitment to expanding our shared services

capabilities with the opening of a new Global

Hub in Warsaw in August 2024 (seeadjacent

case study).

Lysol Air Sanitizer is a

first-of-its-kind combined

sanitiser and bacterial

odour eliminator. Killing

99.9% of both airborne

viruses and bacteria, it has

generated over £50 million

in net revenue since its

launch in September 2023.

Value Creation Model continued

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Our strategic priorities guide our choices as we create value through a sharper portfolio and a simpler, more

effective organisation.

Strategic Priorities

Strategic priority Progress in 2024 Future focus Risks (see Risk Management on pages 53-55 for detail)

Portfolio value creation

by applying three clear

principles to drive choices that

maximise value

• We are moving at pace to reshape Reckitt as a

world-class consumer health and hygiene

organisation

• We are significantly sharpening our brand

portfolio and moving to a simpler, more

effective organisation to maximise long-term

value for shareholders

• We will focus on a portfolio of market-leading

Powerbrands, enabling us to allocate capital

against brands that offer the best long-term

opportunities for growth

• Business transformation

• Product innovation

• ESG transition

• Macroeconomic uncertainty

Product superiority

through delivering products

that delight consumers and

extend our growth

opportunities

• Every Powerbrand has earned its place in our core

portfolio by meeting our three principles of value

creation. Each possesses a long-term runway for

growth, an attractive earnings model and enduring

competitive advantage

• Our focus remains on innovation to deepen the

equity of our brands and drive growth through

premiumisation, new category creation and

greater household penetration of our products

• We will continue to launch new products and

invest in our innovation platforms to extend the

growth runways of our Powerbrands

• Business transformation

• Product innovation

• Supply chain continuity and resilience

• Product integrity

• ESG transition

• Macroeconomic uncertainty

Win in market

by executing with excellence

consistently

• We have equipped our organisation with better

tools and capabilities to enable our teams to

execute with excellence in market

• We are boosting the agility of our US OTC supply

capabilities through commissioning a new

manufacturing facility in Wilson, North Carolina

• Our new supply organisation and investments in

our supply chain will reinforce our business

resilience and present opportunities to enhance

our customer relationships

• We will continue our focus on localising our

production capabilities in market to better

match local demand with supply

• Business transformation

• Geopolitical instability

• Product innovation

• Technology resilience and information security

• Supply chain continuity and resilience

• Product integrity

• Legal and compliance

• ESG transition

Fixed cost optimisation

by releasing costs through

simplifying our organisation and

securing productivity and

efficiency benefits

• We expanded our cost efficiency initiatives in

our new Fuel For Growth programme, which

targets a reduction in our fixed costs to 19%

ofnet revenue as we exit 2027, versus 21.8%

in2023

• We will continue to focus on securing the

efficiency benefits of our simpler organisation

• Advancing shared services adoption will help

usreduce costs while we harness digital and

AIcapabilities to boost productivity

• Business transformation

• Geopolitical instability

• Technology resilience and information security

• Supply chain continuity and resilience

• ESG transition

• Macroeconomic uncertainty

PROGRESS TOWARDS OUR STRATEGIC PRIORITIES

Page 10

Page 13

Page 14

Page 34

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Our new unified category structure

enables a step change in our

organisational effectiveness,

supporting stronger in-market

execution through a leaner, more

agile operating model.

A new unified category structure

In July 2024, we announced our plans to reshape

Reckitt as a world-class consumer health

andhygiene company through a significant

sharpening of our brand portfolio and a move

toa simpler, more effective organisation.

We adopted this new model on 1 January 2025,

replacing our Global Business Units (GBUs) with

a unified category structure operated through

three geographic areas: Emerging Markets,

Europe and North America. The new structure

has fewer management layers and reduced

duplication in order to accelerate the speed of

our decision-making and improve efficiency.

Our new global category organisation delivers

consumer insight, category expertise and

innovation across our brand portfolios in Self

Care, Germ Protection, Household Care and

Intimate Wellness. Our three geographic areas

focus on execution excellence for consumers

and customers in market. Working together, we

are equipped to deliver stronger in-market

execution through harnessing core expertise in

brand innovation to leaner global capabilities

that are embedded in local markets.

A SIMPLER, MORE EFFECTIVE ORGANISATION

De-layering the organisation

A key element of our new structure is the

simplification of our organisational layers.

Reckitt previously operated with five: global,

GBUs, area, region and market. By reducing

these to three (global, area and market), we

remove unnecessary complexity and

duplicative functions that were an inadvertent

consequence of our GBU model.

Fewer layers enable changes in our leadership

model, moving from a high-cost, multi-layered

leadership to fewer, larger leadership roles.

Alongside a progressive adoption of cross-

functional end-to-end shared services, our

new structure expands the scope of our fixed

cost reduction opportunities, which are

captured in our Fuel for Growthprogramme

(see page 34).

A more agile Reckitt

Our simpler organisation has been designed to

bring about a step-change in our organisation’s

effectiveness by accelerating decision-making

and channelling our entrepreneurial energy to

the market opportunities we serve. In doing so,

we can unlock the full potential of our

Powerbrands by improving our ability to meet

the needs of consumers and customers across

our markets.

Simpler Organisation

Essential

Home

Unified

category

tructure

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Our Core Business

Reckitt is a truly special business, with a portfolio

ofmarket-leading, iconic Powerbrands that

candeliver accelerated growth and enhanced

value creation.

Our Powerbrands are loved by consumers and occupy market-

leading positions in their categories. Each possesses enduring

competitive advantage through the strength and depth of their

equities and considerable global scale in their market reach.

Sharpening our portfolio has allowed us to simplify Reckitt

bymoving to a unified category organisation dedicated to

thedelivery of market-leading strategy, innovation and

activation forour Powerbrands across the four categories

(seeadjacent table).

Our categories are unified by growth opportunities and financial

attributes that lead in our industry. Each enjoys high gross

margins, which underpin ongoing reinvestment in marketing

andR&D, supporting deep innovation platforms that will enable

us to grow our market presence through premiumisation and

new category creation.

In core Reckitt, we have a scaled presence in the regions and

markets where we believe it matters most. Our categories

andbrands share a highly consistent operating model, with

optimised supply and go-to-market strategies that enable scale

across a global health and hygiene marketplace we know best.

Reckitt’s long history of winning with consumers in these

categories provides us with deep-rooted expertise in the

markets in which we play. In consolidating our organisation

witha unified category structure, we are better able to move

atspeed and deliver the excellence in execution that will

secureour future success.

CORE RECKITT

SELF CARE

33%

of core Reckitt

GERM PROTECTION

30%

of core Reckitt

HOUSEHOLD CARE

23%

of core Reckitt

INTIMATE WELLNESS

14%

of core Reckitt

Self Care is led by our Powerbrands Mucinex, Strepsils,

Gaviscon and Nurofen. Our over-the-counter (OTC) products

are trusted by consumers and healthcare professionals to treat

a range of symptoms. Their growth is fuelled by increased

disposable income and heightened consumer interest in

health, especially as populations age, as well as category

penetration opportunities in emerging markets.

Germ Protection brings together Lysol, Dettol and Harpic.

Weview hygiene as the foundation of health which these

brands enable by protecting against the spread of germs.

OurGerm Protection brands enjoy penetration and category

creation opportunities around the world as consumers seek

protection against viruses and bacteria on surfaces, in their

laundry and in the air.

Household Care leads with Finish and Vanish. The growth

ofthese two global leaders of their respective household

categories, auto dishwash and laundry additives, is being

driven by large penetration and premiumisation opportunities,

with significant potential in large developing markets.

Intimate Wellness is home to Durex and Veet. Each is a global

leader in its respective category, condoms and depilatories.

Their growth is fuelled by increasing consumer interest,

normalisation and engagement, which we are meeting with

innovation and product premiumisation. We are confident

about the growth opportunities in emerging markets such

asIndia, Africa and Latin America, where changing social

attitudes are helping to drive higher adoption rates.

1 Percentage net revenue contributions to core Reckitt based on FY 2024

financialresults

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Market Execution

Since 1840, Reckitt has grown brands

into household names around the

world, supported by an expanding

global footprint. Today, we deliver

these at scale across three geographic

areas, each of which possess the

infrastructure and capabilities to

wininmarket.

Our new operating model provides us with

globalscale to execute across our three areas:

Emerging Markets, Europe and North America.

The operating model benefits from the significant

presence we have established in Reckitt’s key

growth markets.

The geographic footprint of our Powerbrand

portfolio tilts us further towards the faster-

growing emerging markets such as India, China

and Africa, where Reckitt already benefits from

extensive scale in local supply capabilities.

in India and have grown strongly over the past five

years. Our manufacturing capability enables us to

supply 95% of products locally at excellent service

levels, helped by the recent doubling ofourdirect

customer coverage.

There is significant growth potential for health and

hygiene categories in India, where Dettol is a

leading Powerbrand and enjoys status as one of

the most trusted and iconic brands in the country.

Dettol is also one of our most expandable brands,

enabling us to navigate the consumer from

entry-level bar soaps to Dettol’s growing range of

premium personal hygiene products.

China represents 10% of core Reckitt net revenue

and became our largest emerging market in 2024

following a strong year of double-digit growth.

Here, we lead with two Powerbrands: Durex, for

which China is our largest market, and Dettol. We

also have a growing VMS business, led by

MoveFree, which enjoyed double-digit growth

during the year. In Household Care, Finish has

significant penetration potential in the auto

dishwash category, given less than 3% of China’s

households currently have dishwashers.

EXECUTING ACROSS OUR AREAS

In Europe, operational scale is growing with the

unification of our go-to-market structures, which

operated separately under the previous Global

Business Unit structure.

In the US, we are investing in our local

manufacturing capabilities to respond faster to

future demand for seasonal OTC product while

enhancing the technology that supports our

distribution and supply capabilities.

The breadth of our go-to-market networks and

our expanding local manufacturing capabilities

underpin the growth of our Powerbrands,

supporting strong gross margins through

economies of scale and operational efficiencies.

Emerging Markets

Collectively, Emerging Markets represents the

largest single area in Reckitt’s Powerbrand

portfolio and is led by the high-growth markets

ofChina and India.

Reckitt is well placed to serve consumers

intheworld’s most populated country, India,

whichaccounts for 8% of core Reckitt net

revenue. Wesell through over one million outlets

We have developed strong go-to-market

capabilities though e-commerce in China, including

selling through livestream channels. These

contributed to China’s double-digit growth in 2024

and we are well positioned to meet local demand

with a robust supply capability that produces

around 80% of the products we sell locally.

We are expanding our presence in China to

support our long-term growth ambitions. In

2022, we opened our largest manufacturing

plant in Taicang, near Shanghai. This state-of-

the-art, digitally native site produces local

supply for Dettol with an annual production

capacity of 100,000 tonnes. Building on the

success of this facility, we are expanding

production capacity to include Durex PU

condoms starting in 2025. As well as meeting

growing product demand, the expansion

enables us to build greater resilience in

ourbusiness continuity planning.

The Taicang facility will also benefit from

ournew Global R&D Centre for Innovation,

which will be completed in 2026. Located in

Shanghai’s Caohejing Technical Park, the centre

39%

35%

26%

EMERGING MARKETS EUROPE NORTH AMERICA

1 Percentage net revenue contributions to core Reckitt based on FY 2024 financial results

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Market Execution continued

INVESTING IN LOCAL MANUFACTURING

We are making strategic investments to

significantly expand production capacity and fully

support the growing demand for our

Powerbrands within local markets.

In December 2024, we announced a £155 million

acquisition of a pharmaceutical site in Wilson,

North Carolina, which will become a state-of-the-

art manufacturing facility, primarily for Mucinex

production. This will enhance our agility in

meeting seasonal demand for OTC products in

our largest market once it becomes fully

operational in 2027.

The 310,000 square-foot site will not only support

Mucinex but also has the capacity to manufacture

other products in the future such as Move Free

and Biofreeze, supporting our long-term growth

ambitions in these categories.

Elsewhere, following the rapid growth of our OTC

Powerbrand Gaviscon we have made continuous

investments in sourcing and raw material production

sites across key markets throughout 2024.

This expansion has resulted in a doubling of

Gaviscon’s production capacity across all key

product formats and ranges and ensures that we

can meet the increasing demand for Gaviscon

products.

These investments in Mucinex and Gaviscon

highlight our commitment to strengthening local

manufacturing capabilities, improving customer

service and enhancing the resilience of our

supply chain.

Link to strategy

Win in market

FLEXIBLE ROUTES TO MARKET

Our Powerbrands also leverage digital

go-to-market strategies to engage consumers.

In China, Veet uses TikTok to lead conversations

around hair removal habits among digitally

native younger consumers, driving a significant

portion of revenue in this market.

By employing a diverse range of go-to-market

strategies, our Powerbrands continuously strive

to meet consumers in each market in ways

that best suit their needs.

Link to strategy

Win in market

will leverage the city’s position as a hub for

technology and innovation, helping us to build

strategic partnerships and drive product

innovation. As the commercial centre of our

China business, Shanghai’s proximity to Taicang

will strengthen collaboration between our

Commercial, Supply and R&D teams. By

innovating in China as part of our ‘China-for-

China’ strategy, we will be better equipped to

deliver innovations that resonate locally while

also scaling these solutions globally.

Europe

Europe is a complex and vibrant region with an

abundance of opportunity and is the original

home of many of our Powerbrands. Durex,

Nurofen and Gaviscon enjoy category-leading

positions in many markets across the region.

Italy is a great example of how we go to market

in Europe, having delivered strong, consistent

growth over the last three years, with a net

revenue CAGR of over 6%. This is supported by

a robust local supply footprint, with around 94%

of products produced within the EU. Several of

our Powerbrands are market leaders in Italy,

including Finish, Gaviscon, Durex and Strepsils.

Reinforcing its market position, Durex has

Harpic has also increased access to hygiene

products in emerging markets by reducing pack

sizes and offering sachets, lowering the cost of

entry for consumers.

Making our products accessible in this way

means that more people can access the

high-quality products they need to help them

care for themselves, their homes and their

families. In Nigeria, a new sachet production line

was inaugurated in May 2024 in Agbara, further

supporting household penetration in the region.

We implement tailored go-to-market

strategies for our Powerbrands to penetrate

categories and establish market leadership

infast-growing emerging markets.

The global lavatory care market, for example,

isprojected to grow by 6% annually for the

next five years, with the majority of growth

inthe developing world. To engage directly

with consumers in countries including Nigeria

and Kenya, Harpic employs in-market

demonstrations and door-to-door sales teams

to showcase product efficacy.

Since launching in 2020, the door-to-door

programme in Kenya has more than doubled in

size, with sales teams conducting live doorstep

demonstrations to over 300,000 households

annually, achieving high conversion rates and

fostering repeat customers through automated

data collection.

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Market Execution continued

VALUE CHAIN

We continue to use our scale and reach to influence positive change and

impact across our value chain, which in turn underpins the value we are able

to create for stakeholders.

01 PRODUCT DESIGN

We develop superior, science-based

solutions and weuse our Sustainable

Innovation Calculator to design products that

contribute to our sustainability targets.

Read more about our stakeholders

on page 74

become the first-ever official partner of the

Italian government in sex education for high

school students.

Over the last four years, we’ve seen a significant

shift upwards in our market position in the OTC

segment in Italy, moving up to a number five

position from number nine, with participation

inthree of the top five OTC categories.

North America

North America includes our largest market,

theUS, which comprises 24% of core Reckitt

net revenue. Market-leading Powerbrands in

this market include Lysol, Finish and Mucinex.

Around 60% of our products sold in the USby

value are produced locally through our local

supply network of manufacturing plants.

Weare investing to increase this percentage

significantly with the commissioning ofanew

manufacturing site in Wilson, NorthCarolina,

which will boost our agility to respond to future

growth in the US seasonal OTC market

(seecase study on page 20).

We have continued to invest elsewhere in

ourUS Supply organisation to match growth

indemand. During 2024, we saw this increase

for Lysol products, including through the club

retail channel, which is a market penetration

opportunity attracting consumers who opt for

larger product packs. In July 2024, we launched

a high-speed canister wipes packaging line

inSt. Peter’s, Missouri, to support the strong

demand for our wipes multi-packs in this

channel. This line has the capability to produce

up to three variants in multi-pack bundles,

reducing complexity and increasing automation.

Wehave also strengthened our go-to-market

network capabilities through a focus on

improving our customer service. This has

increased Reckitt’s relative share of distribution

in recent years. In the Kantar 2024 Advantage

survey, we demonstrated strong online

execution and presence when ranked

againstour peers.

STAKEHOLDER VALUE CREATION

Our Consumers

2.3bn

People engaged through our purpose-

ledpartnerships since 2020

2023: 1.9bn since 2020

Our People

c.17,800

Learning Library unique users

2023: c.9,50 0

Our Investors

£2.7bn

cash returned to shareholders

2023: £1.5bn

Governments

£700mn

tax paid

2023: £922mn

Our Customers

46%

of our markets ranked in the Top Tier of

theAdvantage Survey for e-commerce

2023: 41%

Our Suppliers

£269k

average spend with our suppliers

2023: £240k

Communities

£34mn

in social impact investments

2023: £31mn

SELF CARE

SUPPORTING HEALTH THROUGH

Reckitt Annual Report and Accounts 2024

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Self Care

Our Self Care brands are category leaders in

over-the-counter (OTC) healthcare. They offer

effective, medicated solutions for common health

concerns including pain, congestion, indigestion

and sorethroat, providing easy access to relief

without the needfor a prescription.

Within our Self Care portfolio, two Powerbrands directly support

consumers in managing the symptoms of cold and flu: Mucinex,

the number two formulation in upper respiratory, and Strepsils,

the global market leader in medicated sore throat.

Our two non-seasonal OTC Powerbrands are Gaviscon, the

number one in heartburn and indigestion worldwide, and

Nurofen, the market-leading analgesic brand in Europe,

Australiaand New Zealand.

Mucinex: global upper

respiratory

Strepsils: global medicated

sore throat

Gaviscon: global upper

gastrointestinal

Nurofen: Global analgesics

Claims based on information aggregated in part from data supplied by Nielsen

through its Retail Measurement Services and in part from data inputs from other

suppliers, in each case, for the relevant category, geographic focus and based on

FY24 (based on branded players only)

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Self Care continued

The long-term runway for growth in this category

is underpinned by an increasing number of

consumers actively seeking OTC solutions. This

includes the health needs of an ageing global

population and health-conscious individuals

seeking to treat minor ailments without medical

consultation, reducing the burden on healthcare

providers. At the same time, greater access to

information and online resources is empowering

consumers to choose the most effective

selfcaresolutions.

We communicate with consumers through

educational campaigns, partnerships with health

organisations, digital engagement and point of

sale displays. Nurofen, for example, continues to

drive awareness and growth in the pain

category, including with its ongoing ‘See My

Pain’ campaign (see adjacent case study).

We aim to drive above-category growth

bycombining our strong brand equity with

innovative science. Mucinex entered a new

space in 2024 with the launch of its Sinus Saline

2-in-1 Nasal Spray, the first ever drug-free

saline product with a nozzle that switches

between spray settings for everyday allergens

and tough nasal congestion.

Our innovation capabilities are driving the

development of new product formats, with

thesuccessful launch in September 2024

ofMucinex Mighty Chews, the first over-the-

counter medicated children’s soft chewable

tablet for cough relief.

Our digestive health portfolio, led by Gaviscon,

has expanded into the lower gastrointestinal

(GI) category with three specialised ranges:

constipation, diarrhoea, and wind and bloating,

leveraging a unique science platform designed

to address the causes of these symptoms and

prevent their recurrence. This extension into

the lower GI category builds significant scale

across the combined upper and lower

GIcategory.

The market penetration opportunity in

SelfCare adds significant headroom for

long-term growth in the category. We see

particular potential in emerging markets,

whereSelf Care is still nascent, for scaling

brands such as Gaviscon and tilting our

portfolio further towards non-seasonality.

Nurofen continued to drive market penetration in

2024 with the international roll-out of several new

formulations, particularly Nurofen Liquid Capsules

in Italy, and in Mexico under the Temprafen brand.

We saw a promising early response to the launch

of Nurofen sustained release with 12-hour pain

relief in Romania. Meanwhile, launching smaller

packs of Nuromol has proven a successful strategy

to gain penetration in households in South

America.

The Self Care category offers attractive returns

given the innovative and efficacious solutions

we provide. This enables continued high levels

of investment in brand building and innovation.

Our enduring source of competitive advantage

stems from brand equity built on the deep

trust our consumers have in our effective

solutions, supported by over 70 years of

research and innovation.

With continued innovation, category expansion

and the market penetration opportunity in

emerging markets, we believe Reckitt’s Self

Care brands are well positioned to deliver

attractive growth in the years ahead.

PAIN AWARENESS

Nurofen continues to raise awareness around

pain, partnering with universities and key

opinion leaders. Our ongoing ‘See My Pain’

campaign seeks to address how women’s

pain is often dismissed compared to men’s.

In October 2024, we released our third

Gender Pain Gap Index Report, revealing

that women’s pain is dismissed from as

young as 10 years old. This is an ongoing

collaboration with Oxford University

researchers and was referenced in a UK

Parliamentary Committee report on

women’s reproductive health.

We published a new study in BMJ Open in

2024, in collaboration with Imperial College

London, examining the perceptions of UK

medical students regarding gender pain

bias based on their clinical observations.

The study discusses ways to prevent such

bias in medical training. We also ran a

Pain

in Children advisory board focused on

ensuring better recognition and treatment

of children’s pain.

Additionally, we launched a UK campaign

for Nuromol, a combined paracetamol and

ibuprofen pain reliever, successfully

positioning it as a solution for strong pain

sufferers, which has unlocked growth in

this market.

LEVERAGING OUR SCIENCE ACROSS COLD & FLU RELIEF

Strepsils and Mucinex are leaders in cold and flu

care, each with a distinctive focus. Strepsils is

the global leader in medicated sore throat

remedies, while Mucinex is the leading

doctor-recommended cold and flu medication

in the US. In recent years, both Powerbrands

have broadened their shoulders by entering

adjacent categories.

This expansion is powered by their shared

science platforms, developing innovative ranges

that cater to changing consumer needs and

offering multiple functional benefits.

Mucinex entered the $1 billion US sore throat

category in 2021 with the launch of

Instasoothe, which combines its trusted

brand with science from the Strepsils sore

throat platform. Clinically proven to numb

pain quickly with a three-in-one formula,

Instasoothe is the only lozenge in the US to

contain hexylresociol, an oral pain reliever.

Market penetration in the US continued in

2024 as the range continues to deliver

double-digit year-on-year growth.

Strepsils has followed the reverse path to

Mucinex, expanding the brand’s global footprint

from sore throat into the cough category. In

2022, Strepsils launched Dry Cough Lozenges in

Australia, offering triple relief for cough, sore

throat and blocked nose, which quickly became

a market leader. Building on this success,

Strepsils launched Herbal Chesty Cough+

Lozenges in Australia in 2024. With a successful

launch ahead of forecasts, Strepsils cough

expansion programme will now roll out across

additional markets during 2025 through

lozenges and syrups.

Link to strategy

Portfolio value creation

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Germ Protection

For over a century, families have

relied on our Germ Protection brands,

which people trust to protect the

ones they love.

Our three Powerbrands in Germ Protection are

category leaders, trusted by consumers: Lysol, the

number one global disinfectant with its strong

consumer base in the US; Dettol, the number one

in global antiseptic personal care; and Harpic, the

leading global lavatory care brand.

Lysol, Dettol and Harpic share a common

recognition of hygiene as the foundation of health,

providing solutions that enable consumers to

achieve the highest hygiene standards at home.

Our innovation platforms drive the creation

ofnew categories within Germ Protection,

providing opportunities for long-term growth.

Lysol is a proven pioneer in category creation and

has pushed boundaries to expand beyond surface

disinfection to tackle harmful germs in laundry

and in the air (see case study). Lysol Laundry

Sanitizer has reached 11% of US households

since its successful launch in 2016, transforming

the way families tackle germs in their laundry,

and Lysol Air Sanitizer has been adopted by three

million UShouseholds since its launch in 2023.

GERM

PROTECTION

TRUSTED BRANDS FOR

Lysol: global

disinfection

Harpic: global

lavatory care

Claims based on information aggregated in part from data

supplied by Nielsen through its Retail Measurement Services

and in part from data inputs from other suppliers, in each

case, for the relevant category, geographic focus and based

on FY24 (based on branded players only)

Dettol: global

antiseptic personal care

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CREATING NEW CATEGORIES IN GERM PROTECTION

Lysol and Dettol have created significant

value over the past five years by leveraging

our scientific capabilities to develop and

penetrate new categories.

Lysol founded a new category beyond its

surface disinfection and Laundry Sanitizer

ranges with the launch of its breakthrough

Lysol Air Sanitizer in July 2023. This is the first

and only air sanitising spray approved by the

EPA to effectively kill both viruses and

bacteria in the air, reducing the spread of

airborne, illness-causing pathogens such as

cold, flu and coronavirus.

The science behind this formula is based on

active molecules which attach themselves to

and breakdown airborne microorganisms,

killing germs and odours. The product is

steadily increasing its market penetration,

reaching a record-high of 8.4% market share in

air instant action sales in September 2024.

Dettol has successfully broadened the

shoulders of its strong brand using

innovation to enter new categories in new

markets in laundry and personal care. In 2022,

we launched Dettol Washing Machine

Cleaner and Dettol Laundry Pods in China,

accelerating Dettol’s penetration in laundry

alongside the Dettol Laundry Sanitiser.

Thefive-in-one washing machine cleaner,

developed through our microbiome science

platform, kills 99.9% of bacteria, while

removing limescale from deep in the

machine. The four-in-one Tru-Protect

Laundry Solution laundry pods, powered by

our polymer science platform, provide both

cleaning and germ-kill in one formula. These

launches proved successful, with the

Washing Machine Cleaner currently holding a

number one market position and 34% market

share in China and the Laundry Pods a

number one market position in Hong Kong.

Dettol’s strong innovation pipeline continues

in 2025 with the launch of a range of personal

care and disinfectant products offering

12-hour protection against harmful germs,

enabled by innovation derived from medical

science.

The creation of new product categories,

supported by a strong pipeline of innovation,

opens up significant market penetration

opportunities for Lysol and Dettol in key growth

markets including the US, China and India.

Link to strategy

Portfolio value creation

Germ Protection continued

There is significant potential for market

penetration in these new categories. The US

club channel, consisting of large-scale retail

chains offering a wide range of products at

attractive prices and in bulk quantities, has

been a significant growth driver for Lysol

during 2024. Products such as the large pack of

Lysol Laundry Sanitizer and Lysol Disinfecting

Wipes multi-packs are selling well in this

channel and Lysol Air Sanitizer was rolled out

across the club retailers in January 2025.

Demographic changes are driving increasing

hygiene awareness globally and are significant

tailwinds for market penetration in the Germ

Protection category. They include the risk of

pandemics, climate change, urbanisation and the

growing middle class in emerging markets.

Dettol and Harpic’s geographic exposures are

beneficially weighted towards emerging markets,

which are seeing increasing disposable income

spent on hygiene and personal

care categories.

Dettol has leveraged

its trusted brand status by

extending in recent years beyond the liquid

antiseptic category into new categories including

personal care, laundry and surface disinfection.

Following successful launches in these

categories, the opportunity for market

penetration remains significant.

Dettol is unlocking new hygiene occasions for

consumers both in emerging markets, where

Dettol Disinfectant Spray is showing strong

growth in China, and in established markets

such as the UK, where our new advertising

campaign, launched in Summer 2024, is

encouraging consumers to re-think their

approach to germ protection by boosting

perceptions of its everyday relevance to their

lives. This has driven growth, particularly in

wipes, with a notable increase in the

percentage of UK consumers who believe that

Dettol should be part of their everyday

cleaning routines.

Each Powerbrand shares a common source

ofenduring competitive advantage in deep

brand equity, earning consumer trust and

loyalty through decades of innovation and

demonstrated efficacy. This is a strong

foundation for attractive returns in the Germ

Protection category, together with an ability to

price premium products through offering

superior solutions and creating new categories.

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HOUSEHOLD

CARE

PREMIUM SOLUTIONS FOR

Finish and Vanish offer premium

solutions that are trusted by millions

of households to tackle everyday

cleaning challenges.

As the world’s number one automatic

dishwashing brand, Finish provides a complete

range of products, from dishwasher tablets to

rinse and shine aids and dishwasher cleaners.

Vanish, the number one global fabric treatment

brand, offers powerful stain removers, laundry

boosters and carpet cleaners, helping clothes

and carpets last longer.

In recent years, both Powerbrands have

focused on enhancing their core ranges with

premium features to address evolving

consumer needs.

The auto dishwash portfolio has transitioned to

superior performance thermoformed tablets

using innovation capabilities from our polymer

science platform (see adjacent case study).

Today, thermoformed products account for

75% of tablet net revenue.

Household Care

Finish: global

automatic dishwash

Vanish: global fabric

treatment

Claims based on information aggregated in part from data

supplied by Nielsen through its Retail Measurement Services

and in part from data inputs from other suppliers, in each

case, for the relevant category, geographic focus and based

on FY24 (based on branded players only)

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Household Care continued

THE SCIENCE INSIDE FINISH

Finish made the strategic decision to pivot

from traditional hard-pressed dishwashing

tablets to thermoformed tablets in 2019. This

change was enabled by our investment in

polymer science, which has equipped us to

innovate new polyurethane-based tablet

formats preferred by consumers and to

premiumise Finish’s market presence

throughnew product launches.

Thermoformed tablets have enjoyed a

positive consumer response. In 2024,

therewere around 580 million more Finish

thermoform washes worldwide versus 2023

and thermoform tablets now account for

three-quarters of our tablet net revenue.

Within the thermoform category, we

offerseveral tiers of tablets, with the

topend represented by our newest launch,

Finish Ultimate Plus. With three times the

cleaning strength, it is our best-performing

auto dishwash detergent yet.

Poweredbypatented CycleSync technology,

it releases ingredients separately during the

wash for maximum effectiveness. It also

enables the consumer to skip the pre-rinse

cycle and save up to 40 litres per load.

Since the launch of Finish Ultimate Plus in

2023, sales now represent more thana

quarter of thermoformed tablets sold in our

launch markets, including Germany, the UK

and Australia.

We will continue to invest in the

premiumisation of our thermoform products

to meet the number one consumer need

inauto dishwash: a deep clean, whatever

theconditions.

Link to strategy

Product superiority

In 2023, we took premiumisation further

withthe successful launch of Finish Ultimate

Plus, featuring our best-performing

dishdetergent technology, which enables

consumers to save water on each load through

eliminating the need for pre-rinsing.

Vanish launched a new formulation for

OxiAction Stain Remover in 2023 to meet

consumer demand for high performance in

ashorter, more economical wash. The new

formula promises stain removal and colour

protection, even at 20 degrees on a 30-minute

wash. This was successfully launched in the UK

(see case study on page 12).

With strong initial consumer adoption of these

premium products, there is a compelling

opportunity for growth with a runway for

deeper market penetration.

Finish’s footprint is currently concentrated in

markets such as Europe and the US and there is

a significant opportunity in large, developing

markets where dishwasher ownership is

growing from a low base. The growing

percentage of households that currently own

adishwasher globally is about 13%, and is less

than 3% in China and India. Vanish also has a

large penetration opportunity, with less than

one in five people using a stain removal product.

The Household Care category offers attractive

returns given the premium nature of our

products, which are embedded with patented

technology, providing significant headroom for

continued investment.

The trust earned from consumers, stemming

from 50 years of category development and

innovation at Finish and 30 years at Vanish, is

asignificant contributor to the brand equity of

these category-leading products and provides

a solid foundation for their future growth.

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Intimate Wellness

INTIMATE

WELLNESS

EMPOWERING CHOICES IN

Durex and Veet are empowering

consumers by offering innovative,

premium personal care solutions that

promote choice and wellbeing.

As the number one brand in global sexual

wellbeing, Durex leads the industry, innovating

with products designed to enhance the sexual

experience and improve intimate wellness.

Veet, the leading depilatory brand worldwide,

provides superior hair-removal solutions

tailored to suit different skin types, styles and

moods and is trusted in over 80 countries.

Intimate Wellness is an attractive, high-growth

category fuelled by growing consumer interest,

involvement and normalisation. Our

Powerbrands are at the forefront, shaping

online conversations and engaging with

peopledirectly.

In China, Veet has successfully engaged

withyounger, tech-savvy consumers through

TikTok discussions around hair removal. This

platform now drives significant revenues

inChina, demonstrating the importance

ofdigitalengagement.

Durex: global sexual

wellbeing

Veet: global

depilatory

Claims based on information aggregated in part from data

supplied by Nielsen through its Retail Measurement Services

and in part from data inputs from other suppliers, in each

case, for the relevant category, geographic focus and based

on FY24 (based on branded players only)

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Intimate Wellness continued

STRETCHING MATERIAL SCIENCE IN DUREX

Since becoming Europe’s first

manufacturer of latex condoms in

1932, Durex has evolved to meet

consumer needs through key

moments of innovation.

Asthe global condom market

leader, with particular strength in

Asia and Europe, Durex continues

toreinforce its position with

breakthrough innovations and a

commitment to delivering

premiumproducts.

In 2020, Durex launched 001 in China,

a next-generation polyurethane

condom which is the thinnest in the

Durex family, designed to provide

amore natural feeling. This was

followed by the 003, offering even

greater softness and comfort. This

innovation stemmed from deep

research within our Polymer

Scienceplatform.

In 2022, Durex made another

high-impact launch with Durex

Fetherlite HA, a thin latex condom

featuring a water-based lubricant

infused with hyaluronic acid for a

unique sensation. Developed in

under a year, this product gained a

leading share of the HA condom

segment within its first 12 months.

Building on this success, we are

launching a hyaluronic acid range

with three products across Basic,

Fetherlite and Air, to secure our

leadership in this segment.

By consistently innovating premium,

differentiated products for key

markets like China, we continue to

strengthen the category leadership

Durex enjoys.

Link to strategy

Product superiority

Win in market

These Powerbrands drive significant growth

bypremiumising products to give consumers

more choices to meet their needs and

preferences. Our consumer insights are

leveraged with science developed through

ourinnovation platforms.

A standout example of this is the launch of

Durex Fetherlite HA condoms in China in 2022.

Recognising lubrication as a key consumer

needin this category and the well-known

moisturising benefits of hyaluronic acid (HA)

inskincare, Durex developed a condom with

awater-based lubricant containing hyaluronic

acid. This successful launch has proven popular

with women, who make up over a third of

buyers, higher than the rate for other condoms.

This product has strengthened Durex’s category

leadership in China.

Veet is also evolving to match consumer needs,

with Veet Men posting double-digit growth

andcapturing over 80% of the global market

formen’s depilatories. Meanwhile, our Veet

Women’s Bikini products, the first dedicated

range in this new segment, also continue their

success sincelaunch.

The Intimate Wellness category offers

additional growth through significant market

penetration opportunities. While Durex is the

number one condom brand worldwide, based

on our estimates we believe Durex products

currently reach less than 1% of global sex

occasions. The brand has experienced notable

success in China and there are additional

opportunities for rapid growth in large,

emerging markets such as India, Africa and

Latin America. It also enjoys further expansion

opportunities in our adjacent categories such

as personal lubricants.

Intimate Wellness solutions enjoy an attractive

earnings model with strong gross margins that

enable ongoing investment in superior materials

and new production techniques. Our premium

solutions also enhance the brand equity and

consumer loyalty that both Veet and Durex have

built over 90 years of innovation and leadership

inthe category.

With continued premiumisation of products

anddeeper market penetration in emerging

economies, our Intimate Wellness portfolio is well

positioned to deliver attractive growth and returns

in the years ahead.

Reckitt Annual Report and Accounts 2024

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Essential Home

ESSENTIAL

HOME

Essential Home is a global, scaled

business of trusted brands on a

mission to transform people’s living

spaces into places they can call

Home: somewhere to connect with

family, friends and themselves, a

place where they feel protected and

are proud of.

This portfolio of market-leading brands plays

ingrowing and resilient categories such as

AirCare, Laundry, Surface Care and Pest,

withsubstantial potential for continued

futuregrowth.

At the core of the portfolio is Air Wick, the

number one air care brand in Europe, Australia

and New Zealand combined, and global

number one in plug-in scented oils and mist

diffusers, which has been uplifting homes with

fragrances for more than 80 years.

Air Wick: Europe and

ANZ Air Care

Calgon: European

watersoftener

SBP: Brazilian pest

brand

Woolite: US fine

fabric detergent

Cillit Bang: European

power cleaner

Claims based on information aggregated in part from data

supplied by Nielsen through its Retail Measurement Services

and in part from data inputs from other suppliers, in each

case, for the relevant category, geographic focus and based

on FY24 (based on branded players only)

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Essential Home continued

Alongside Air Wick is a group of strong brands

with market-leading positions and deep brand

equities. These include Calgon, the number

one water softener in Europe providing over 90

years of protection against limescale and dirt in

washing machines; SBP, the number one insect

protection brand in Brazil with over 50 years of

heritage; Woolite, the number one fine fabric

wash laundry detergent in the US that has been

protecting clothes for more than 70 years; Cillit

Bang, the number four power cleaner in Europe

known for its powerful range of cleaning

products; and Resolve, the leading carpet

spotand stain removal brand in the US.

Essential Home enjoys a scaled market

presence across North America, Europe,

Australia and New Zealand, and Latin America.

This is supported by long-term partnerships

with major retailers and an end-to-end

multi-region supply chain infrastructure.

As with core Reckitt, sustainability is a key

aspect of Essential Home’s product and supply

strategy, with the business deeply committed

to optimising resource usage and reducing

environmental impact.

Essential Home’s brand portfolio enjoys gross

margins that rank amongst the industry’s

highest. Air Wick has been a key driver of

growth, benefiting from a strong innovation

pipeline, including the 2023 launches of 24/7

Active Fresh, our first aerosol-free auto spray,

Air Wick’s Vibrant fragrance range and

advanced plug-in device and the latest

generation of Essential Mist diffusers

(seeadjacent case study).

Essential Home benefits from a dedicated R&D

team with a track record of delivering

transformative, superior solutions and applying

innovation synergies across the portfolio.

In the laundry and surface care categories,

future growth potential lies in leveraging strong

brands such as Woolite and Calgon to increase

market penetration, and expanding leading

cleaning brands such as Cillit Bang and Easy-Off

into new categories through premiumised

products. Essential Home’s pest brands are set

to grow further, benefiting from external trends

such as climate change, and building on their

strong position in key markets.

Essential Home is a stable business with a

resilient portfolio of strong brands with a great

future. Following a strategic assessment of our

brand portfolio, we announced in July 2024

that we see stronger growth synergies across

the Powerbrands we identified in core Reckitt.

As a consequence, we are now assessing

market opportunities for Essential Home and

expect we will achieve an exit for this business

by the end of 2025.

AIR WICK: CONTINUING TO BRING THE OUTSIDE INSIDE

Air Wick has continued to convert its strong

innovation pipeline into transformative,

superior solutions that fulfil consumers’

desires to elevate their living spaces and turn

their homes into sanctuaries.

The Air Wick Vibrant range of scented oil

fragrances, launched in January 2023, was the

biggest liquid electricals launch in the US of

the past five years. With twice the essential

oil content of regular scented oils, our

fragrances offer a premium experience,

bringing speciality store quality to mass retail

and attracting new shoppers to the brand.

Since launch, the range continues to generate

double-digit growth.

To complete the multi-sensorial experience,

we launched the latest generation of our

AirWick Essential Mist Diffuser in a segment

we pioneered back in 2018, which still has

significant opportunity for penetration

growth. This new diffuser, coupled with

Vibrant fragrances offer consumers an

unparalleled fragrance experience.

Our cordless diffuser features two new

settings: a gentle light that glows while a

fragrant mist is released, instantly enhancing

the ambience in homes, and an additional

maximum intensity setting for more

noticeable fragrance. It is the first Reckitt

device to incorporate PCR content within its

plastic housing.

Air Wick is reinventing the auto-spray segment

with 24/7 Active Fresh, the first-ever aerosol-

free auto-spray, launched in Europe in 2023.

Free from phthalates, propellants and dyes

and packaged in a 50% PCR bottle, this

product appeals to consumers who prefer

non-aerosol. With up to 70 days of freshness,

it provides a more natural way of

continuously neutralising odours. The success

of the launch continues and it has been

awarded the ‘Product of the Year’ in multiple

European markets, as voted by consumers.

Air Wick’s ongoing ability to translate

innovation into superior solutions that

delightconsumers solidifies its global

leadership in plug-in scented oils and mist

diffusers, while attracting new users and

increasing market penetration.

Reckitt Annual Report and Accounts 2024

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Mead Johnson Nutrition

MEAD JOHNSON

NUTRITION

Mead Johnson Nutrition provides the

highest-quality, clinically based infant

and toddler nutrition through a

market-leading portfolio of brands

around the world.

Mead Johnson’s portfolio includes Enfamil, the

leading global infant formula brand and the most

recommended by paediatricians in our core

markets, as well as Nutramigen, the number one

brand for managing cow’s milk allergy worldwide,

supported by over 75 years of evidence. Parents

place their trust in our brands, underpinned by

the confidence that medical professionals have

in our products. This confidence is rooted in our

unwavering commitment to a clinical, science-

based approach to innovation.

The infant formula category is evolving to meet

theincreasingly specialised needs of infants.

Our response to this is the development of our

allergy and digestion segments, which present

growth opportunities even as global birth rates

decline. Mead Johnson maintains a leading

market share in these segments by offering

differentiated products.

Enfamil: infant

formula brand

recommended by

USpaediatricians

Nutramigen: global

for managing cow’s

milk allergy

Claims based on information aggregated in part from data

supplied by Nielsen through its Retail Measurement Services

and in part from data inputs from other suppliers, in each

case, for the relevant category, geographic focus and based

on FY24 (based on branded players only)

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Mead Johnson Nutrition continued

In the higher-growth digestion segment,

wesuccessfully launched Enfamil NeuroPro

Gentlease Powder in 2024 to soothe stomach

problems with patented prebiotics. It is the

only formula with proven 24-hour relief, easing

all five signs of digestive discomfort, while

providing long-lasting brain-building benefits.

We continue to expand our market access and

penetration with new format releases and

international roll-outs. In 2024, this included

asuccessful launch of Enfamil NeuroPro

(seeadjacent case study) in Canada.

Given the crucial role healthcare professionals

(HCPs) play in educating parents on child

nutrition and recommending solutions, building

and deepening relationships with them is vital.

In 2024, we focused on further nurturing these

relationships through the relaunch of the

MeadJohnson Nutrition Institute, a platform

dedicated to HCP education. The platform

serves as a one-stop destination for the latest

in nutrition science, education and events,

providing credible, easy-to-read resources.

Bythe end of 2024, we engaged healthcare

professionals in more than 25 countries through

nutrition science and education initiatives.

Following our team’s remarkable efforts

inaddressing the infant formula supply

shortages in the US in 2022, they once again

demonstrated exceptional dedication in the

aftermath of a tornado in Mount Vernon, Indiana

in July 2024. Thankfully, all our employees

weresafe despite significant damage to our

third-party warehouse, which stored a mix of

raw materials and finished products. Thanks

toaglobal, coordinated effort, we were able

tocontinue production and limit the extent of

retail stock shortages during this period. We are

deeply grateful forthe hard work ofour team

during this challenging time.

To further build resilience in our supply chain,

Mead Johnson is starting a programme of capital

investments that will strengthen our operations

and allow the business to stay ahead in a

dynamic environment. Mead Johnson is a great

business, but it is now considered non-core. As

we focus on our Health and Hygiene

Powerbrands, we will consider all strategic

options to maximise itsvalue for shareholders.

ENFAMIL: A SPECIALISED, SCIENCE-LED PORTFOLIO

Enfamil focuses innovation around

ingredients with clinically proven outcomes.

Enfamil NeuroPro and MindPro are the only

infant formulas in the market that contain

two essential elements found in human

breast milk: milk fat globule membrane

(MFGM), which plays a vital role in brain

development, and human milk

oligosaccharides that support

theimmunesystem.

Supplementing with MFGM in infancy is

linked to enhanced cognitive, motor and

language development at 12-18 months, as

well as a 5.2-point IQ advantage at five-and-

a-half years of age.

Since launching in key markets across Asia,

North America and South America, Enfamil

has captured a 32% market share of the

premium global infant and toddler

formulacategory.

Enfamil is also targeting the higher-growth

digestion segment of the infant formula

category by enhancing the NeuroPro formula

with a patented prebiotic fibre blend. Enfamil

NeuroPro Gentlease Powder helps soothe

tummy troubles within 24 hours and is

clinically shown to support softer and more

frequent stools. The Stage 1 Powder was

successfully launched in the US during 2024.

Specialised products are another higher

growth segment that Enfamil has entered

with the launch of an innovative,

premiumised product designed specifically

for babies born via C-section, Enfamil A+

Nurapro C-Biome. C-section babies are at

greater risk of neuro, immune and gut health

issues and this formula is the first to feature

a unique C-Biome blend to boost

microbiome diversity and immune response.

The formula was launched in ASEAN during

2023-2024, receiving a positive reception in

Thailand and the Philippines, with Malaysia,

Vietnam and Singapore launching over 2025.

Through these innovations, Enfamil continues

to demonstrate its market leadership in

premium products backed by scientific

research, and continues to build the trust

ofmedical professionals and parents.

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Fuel for Growth

RIGHT-SIZING OUR

OPERATING COSTS

Our transition to a sharper, simpler organisation brings

with it valuable opportunities to right-size our operating

costs. These have been brought together in a cost

optimisation programme we call ‘Fuel for Growth’.

Set out in our July 2024 Strategy Update, Fuel for Growth

targetsareduction in our corporate fixed costs to circa 19% of net

revenue aswe exit2027, a reduction of at least 300bps, from circa

22% in 2023. We aim to achieve this through our simpler operating

model, the right-sizing of historical investments, leveraging

automation and greater adoption of shared services, and harnessing

the productivity benefits of our digital capabilities and generative AI.

Fuel for Growth is already delivering cost benefits. By streamlining

corporate functions and simplifying our operating model, we were able

to eliminate corporate overhead in 2024, which helped us to reduce our

fixed costs to 20.9% of net revenue (see page 39 for further details).

We see further opportunities for similar cost reductions in the year

ahead, as well as savings from right-sizing existing investment

programmes that have already delivered benefits in areas such as

marketing. Beyond this, we expect to realise the cost benefits of

automation and shared services and the productivity gains from digital

and generative AI as we move towards our end-2027 cost ambition.

The transformation of our organisation will incur one-off cash costs

of around £1 billion over the same period. In 2024, these amounted

to £161 million and we expect about £500 million in 2025, with the

majority of the balance in 2026.

We have excluded these one-off transformation and restructuring

costs from our adjusted results because in aggregate they are

material and affect multiple reporting periods. See pages 223 and

226 for more details.

One-off

costs

FY 2024 End of 2027

Fuel for Growth delivering early benefits

Simplification

2024-2025

Simplify our organisation for

scale opportunities

• Streamlined functional structure

• Removal of semi-autonomous GBUs

• Reduction in management layers

• More unified go-to-market approach

Right-size investment

2024-2025

Right-sizing and embedded global

capability teams in markets

• E-commerce capabilities embedded

inmarket

• Created omnichannel marketing and

sales force

• Professional line integrated

intomarkets

Automation &

shared services

2025-2027

Reduce cost and improve efficiency

• Implement end-to-end holistic

Global Business Services strategy

• Expand finance and supply shared

services footprint

Digital & generative AI

2025-2027

New opportunities for effectiveness

andefficiency

• Marketing function deployed use cases

• R&D next frontier

• SAP implementation

Fixed

costs

base

Work in progress

£161mn

one-off cash costs

Work in progress

20.9%

of net revenue

Target

c.19%

of net revenue

vs. 21.8% in 2023

£1bn

estimated one-off

cash restructuring and

transformation costs

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Capital Allocation

Our growth model generates attractive cash

returns, which we use to reinvest in our brands and

enhance returns for our shareholders. Our capital

allocation priorities govern these decisions and ensure

our brands are well invested, our balance sheet remains

strong and our shareholder returns are competitive.

Investing in organic growth is our top priority. Allocating capital

against brands that offer the best long-term opportunity for

growth and value creation is vital for our future success.

Our business model is highly cash generative and we maintain

astrong balance sheet, with a leverage ratio of around 2.0x

EBITDA consistent with our single A credit rating.

We are committed to returning excess capital to shareholders.

We achieve this through our progressive dividend policy and our

share buyback programme, which we reintroduced in October

2023 with a commitment to buy back £1 billion of our shares

over a 12-month period.

We completed the £1 billion buyback in ten months and

announced a follow-on programme of the same size in

July2024. This remains ongoing and as at 27 February 2025

wehad purchased shares to a value of £154 million under this

secondprogramme. The total value of shares repurchased

during 2024 was £1.3 billion.

Our full-year dividend for 2024 was set at 202.1 pence, which

represents a 5% increase versus 2023.

Through our dividend and share buyback, we returned £2.7 billion

incash to shareholders in 2024, a 75% increase versus 2023.

It remains our ambition to continue our share buyback

programme as a key feature of the returns we offer to

shareholders, subject to fulfilling the other governing

principlesthat guide our capital choices.

Creating value

for shareholders

Return cash to shareholders

• We are committed to returning

surplus cash to our shareholders

through our dividend and share

buyback programme

• We expect this programme to

continue, consistent with our capital

allocation principles

£2.7bn

returned to shareholders in 2024,

a75%increase versus 2023

Target single A credit rating

• We continue to target a single

Acredit rating with balance sheet

leverage of around 2x EBITDA

Sustainable dividend growth

• We continue to pay a

progressivedividend

• Our dividend policy aims to

deliversustainable dividend growth

infutureyears

• Our 2024 dividend was increased

by5% in line with this objective

+5%

increase in dividend

Strong free cash conversion

• We continue to prioritise free

cash flow conversion and are

confident this will remain strong

Invest in organic growth

• Our priority remains to invest in

organicgrowth, funded through

ourearnings model

• Our three principles for long-term

value creation govern our organic and

inorganic capital allocation choices

• This discipline enables us to dedicate

capital against the brands that offer

the best long-term opportunity for

growth and value creation

OUR CAPITAL ALLOCATION PRIORITIES

Manage the portfolio

forvalue creation

• We manage our brand portfolio

actively to ensure each brand

earns its place based on its

growth potential and

earningsmodel

Reckitt Annual Report and Accounts 2024

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Total Shareholder Returns

ENHANCING RETURNS TO SHAREHOLDERS

4% TO 5%

NET REVENUE

GROWTH

We target sustainable top-line

growth of between 4% and

5% for core Reckitt over the

medium term

GROW AOP

AHEAD OF NET

REVENUE

We target adjusted operating

profit (AOP) growth ahead of

revenue growth over the

medium term

SUSTAINABLE

DIVIDEND GROWTH

We have a progressive

dividend policy

(5% increase in 2024).

BUYBACK

New £1 billion share buyback

programme launched in

October 2023 (completed)

Second £1 billion underway

since July 2024

A strong earnings model Committed to returning

cash to shareholders

Our business is owned by our

shareholders, whose expectations we

work hard to match and exceed. It is

rooted in an earnings model that aims

to deliver best-in-class growth and

shareholder returns.

Thetotal return we offer our shareholders

isfundamental to the way we manage our

business and share its financial benefits.

SinceOctober 2023, this includes our share

buyback programme.

We have an excellent portfolio of market-

leading brands operating in categories with

long-term runways for growth. Our target

istodeliver sustainable mid-single-digit net

revenue growth, ahead of the medium-term

growth of our categories.

Our business delivers high gross margins, which

reflect the quality of both the categories in

which we operate and the premiumisation we

bring to each. Investing in innovation, consumer

education and omnichannel marketing is key to

ensuring our brands resonate with customers

and consumers.

Operating leverage from top-line growth at

structurally high gross margins and optimising

costs through our Fuel for Growth programme

underpin our ability to deliver operating profit

ahead of net revenue growth.

We will continue to prioritise strong free cash

conversion and are committed to returning

cash to shareholders through our progressive

dividend policy andshare buyback programme.

We have an enduring framework for sustained value creation

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Key Performance Indicators

MEASURING

PERFORMANCE

Reckitt’s key

performance indicators

(KPIs) include measures

for assessing financial

and non-financial

performance.

Variable pay across the Group

is aligned to these KPIs. Central

to our remuneration philosophy

are the principles of pay

forperformance, as well as

strategic alignment. Combined

with our Compass and

Leadership Behaviours,

theseprinciples define how

decisions are made, how

people act and how they are

assessed and rewarded.

The KPIs shown here directly

impact the remuneration

awarded to Executive Directors.

See page 118 for more

information in our

Remuneration Report

See pages 223-224 for details

of ourdefinitions andterms

inour APMs

Like-for-like net revenue growth

Adjusted operating profit growth

atconstant exchange rates

1, 2

Adjusted diluted earnings

per share

Free cash flow conversion

2024

2023

2022

2021

2020

1.4%

3.5%

7.6%

3.5%

11.8%

Why we measure it: To ensure that our

strategy is delivering organic revenue

growth. The mix and strength of products

and brands enables us to target

mid-single-digit growth over time.

Performance narrative: Group net

revenue of £14,169 million grew by 1.4% on

aLFL basis in the year, reflecting price/mix

improvements of 2.0% and a volume decline

of 0.6%. Our Hygiene brands grew 4.2%, our

Health brands grew 2.1% and Nutrition

declined 7.3%.

2024

2023

2022

2021

2020

+8.6%

+0.9%

+9.2%

-2.6%

+0.7%

Why we measure it: To ensure that we

are converting revenue growth intoprofit.

We anticipate growing operating profit

faster than revenuegrowth.

Performance narrative: Adjusted

operating profit grew more than net

revenue in 2024, driven mainly by gross

margin expansion along with a decline

infixed costs.

2024

2023

2022

2021

2020

349.0p

323.4p

341.7p

288.5p

327.0p

Why we measure it: To monitor

profitability and to provide a comparable

net profit per share attributable to owners.

Performance narrative: Total adjusted

diluted EPS was 349.0p in 2024 (2023:

323.4p), a rise of +7.9%, supported by

alower share count from our ongoing

share buyback, and a lower effective

taxrate of 22.2% (2023: 25.2%), offset

byhigher net interest cost and adverse

foreign exchange.

2024

2023

2022

2021

2020

91%

97%

83%

61%

131%

Why we measure it: To maintain the

delivery of strong free cash flow

conversion over time.

Performance narrative: Free cash flow

of £2,232 million decreased by £26 million

or 1%. Free cash flow conversion reduced

by six percentage points to 91% as the

benefit of reduction in tax paid was more

than offset by cash outflow relating to

group strategic announcements, higher

interest paid and cash outflow from

increased working capital commitments.

Return on capital employed

(ROCE)

2024

2023

2022

2021

2020

13.5%

12.5%

13.2%

10.1%

Why we measure it: To ensure disciplined

capital management.

Performance narrative: ROCE in 2024

was 13.5% (2023: 12.5%), an increase of

100 bps from 2023, due to a higher Net

Operating Profit After Tax.

Net revenue from more

sustainableproducts

1, 3

2024

2023

2022

2021

2020

34.9%

†

29.6%

24.4%

24.9%

30.4%

Why we measure it: To drive product

innovation that supports delivery of our

Sustainability Ambitions and the

development of more sustainable

products with a lower environmental

footprint, as measured by our Sustainable

Innovation Calculator.

Performance narrative: Net revenue

from more sustainable products now

accounts for over a third of total revenues

(34.9% in 2024 vs 29.6% in 2023) which

reflects our ongoing efforts and

improvements in product packaging,

ingredients and carbon footprint.

Reduction in Greenhouse Gas

(GHG) emissions inouroperations

2024

2023

2022

2021

2020

-69%

†

-67%

-66%

Why we measure it: To support our net

zero ambition and reduce absolute Scope

1 and 2 GHG emissions from our own

operations.

Performance narrative: Through our

ongoing focus on optimising high energy

manufacturing processes and our use

ofrenewable energy, we continued

tosurpass our science-based target

reduction of 65% by 2030, achieving

a69%reduction in 2024.

1 See details on our alternative performance

measures on pages 223-227

2 Years after and including 2021 exclude IFCN

China (disposed September 2021)

3 Figures prior to 2021 exclude our Nutrition

business unit

4 Since 2015

†

Data was subject to independent limited

assurance by ERM CVS in accordance

withISAE 3000 (Revised) and ISAE 3410.

Please see ERM CVS’ full assurance report

atwww.reckitt.com/reporting-hub

formoredetails

-39%

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Sustainability Performance Dashboard

This dashboard summarises our performance across key metrics. A full performance breakdown can be found in

our Sustainability Report and ESG Data Book, available online at www.reckitt.com/reporting-hub.

PROGRESS AGAINST OUR SUSTAINABILITY AMBITIONS

OUR STRATEGY

Our Purpose

To protect, heal and nurture in the pursuit of a cleaner, healthier world

Our Compass

Do the right thing. Always

MORE SUSTAINABLE BRANDS HEALTHIER PLANET FAIRER SOCIETY

50%

net revenue from more

sustainable products by 2030

50%

reduction in product carbon

footprint by 2030

50%

reduction in virgin plastic

packaging by 2030

25%

recycled content in our

plastic packaging by 2025

Implementing programmes of positive impact through our brands and

in communities

Net zero

across our value chain by 2040

65%

reduction in GHG emissions

in operations by 2030

100%

renewable electricity

by 2030

Water-

positive

in water-stressed sites by 2030

Implementing programmes of positive impact on nature in key places

Inclusive

An inclusive culture where everybody is treated fairly and equally

Diverse

Our teams represent the diverse places where we work and the

people we serve

50/50

Gender balanced management

at all levels by 2030

30 million

people positively impacted by

oursocial impact investments

by2030 (cumulative since 2020)

2 billion

people engaged through our

purpose-led partnerships,

programmes and campaigns

(cumulative since 2020)

49% Male 51% Female

35%*

TargetProgress

13%*

TargetProgress

15%

TargetProgress

96%*

TargetProgress

69%*

TargetProgress

* ERM CVS provides independent limited assurance over selected sustainability disclosures. The assurance report, along with the

principles and methodologies we use in our reporting, can be found online at www.reckitt.com/reporting-hub

1 Reduction targets for GHG emissions are from a 2015 baseline

2 Reduction target for plastic is from a 2020 baseline. All packaging data relates to 2023, which is driven by the Ellen MacArthur

Foundation reporting timelines. 2024 data will be available in mid-2025

3 Reckitt’s net zero target means we aim to negate the amount of Greenhouse Gas emissions across our value chain, including

Scopes 1, 2, 3.1, 3.4, 3.11 (direct only) and 3.12 by 2040. It includes our near-term science-based emissions reduction targets for

2030 (see page 46). Further detail is provided in our 2024 Sustainability Report

4 Data as of 31 December 2024 for active Reckitt employees (excluding contractors). ‘All management’ includes: Executive

Committee member, Group leadership team, senior management team, middle manager, manager

2.3bn

TargetProgress

29mn

TargetProgress

Read more on page 46

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Financial Performance

Group financial performance

In 2024, Group net revenue grew by +1.4% on a like-for-like (LFL)

basis to £14,169m, reflecting price/mix improvements of +2.0%

and a volume decline of -0.6%. Our Hygiene business delivered

broad-based growth of +4.2% despite a competitive market

environment, with improving volume trends supported by

thestrong performance of our innovation platforms, including

Lysol Air Sanitizer and Finish Ultimate Plus All in 1.

Health net revenue grew by +2.1%, with broad-based growth in our

Dettol, Durex, Nurofen, Gaviscon and VMS portfolios partially offset

by weakness in our seasonal OTC brands (together around 10% of

Group net revenue) due to weak cold and flu trends at the start

and end of 2024. Nutrition declined by -7.3% as the US lapped the

prior year competitor supply issue and experienced short-term

disruptions to supply following the Mount Vernon tornado in July.

Total Group net revenue on an IFRS basis was down by -3.0%,

reflecting foreign exchange headwinds of -4.1% and net M&A

impact of -0.3%.

The year saw improving market share trends, with 48% of our

Top Category Market Units (CMUs) holding or gaining share on a

net revenue-weighted basis, with 55% in Health (2023: 46%), 55%

in Hygiene (2023: 47%) and 15% (2023: 37%) in Nutrition.

The Group’s gross margin was 60.7%, an increase of +70bps versus

2023, driven by pricing and productivity efficiencies against a

morebenign environment for cost input inflation. Brand equity

investment (BEI) increased by +3.1% (+£59m) on a constant FX basis

as we strengthened investment behind innovation launches to

support the long-term growth of our brands. As a percentage

ofnet revenue, BEI was 13.4%, up +30bps year-on-year.

Group adjusted operating profit for the year was £3,475m (2023:

£3,373m) at an adjusted operating margin of 24.5% (2023: 23.1%),

140bps higher than the prior year reflecting early delivery of cost

efficiencies from our Fuel for Growth programme, as well as

+30bps of one-off items driven by the benefit of insurance

proceeds relating to the Mount Vernon tornado in July. Fixed costs

declined by -90bps to 20.9% of net revenue, versus 21.8% in 2023.

On an IFRS basis, operating profit was £2,425m (2023: £2,531m) at an

operating profit margin of 17.1% (2023: 17.3%). This was impacted by

an intangible assets impairment charge of £838 million (2023: £810m)

relating to our Infant Formula (IFCN) business and to Biofreeze. This

reflects a significant capital investment programme that has

commenced to meet regulatory requirements and to build greater

resilience in the wider supply network for IFCN, and a more

challenging marketplace for Biofreeze in topical pain relief.

Following the announcement we made in our July 2024 Strategy

Update, the Group incurred £167m of one-off costs (of which

£161m are one-off cash costs) in relation to transformation and

restructuring, which are excluded from adjusted earnings.

Total adjusted diluted earnings per share was 349.0p in 2024 (2023:

323.4p), a rise of +7.9%, supported by a lower share count from our

ongoing share buyback and a lower effective tax rate of 22.2%

(2023: 25.2%), offset by higher net interest cost and adverse

foreign exchange. Total IFRS diluted EPS was 203.2p (2022: 228.7p).

Our full year dividend increased by 5% to 202.1p (2023: 192.5p)

per share, in line with our policy to deliver sustainable growth

through a progressive dividend. The final proposed dividend

was 121.7p (2023: 115.9p) per share.

Free cash flow was £2,232m in 2024 (2023: £2,258m) a -1.2% decrease

year on year. We continue to maintain a strong balance sheet with net

debt at 2.0x adjusted EBITDA (2023: 1.9x adjusted EBITDA).

Shannon Eisenhardt

Chief Financial Officer

GROWING EARNINGS AND DELIVERING

STRONG CASH RETURNS TO SHAREHOLDERS

Shannon Eisenhardt

Chief Financial Officer

Net revenue

£14.2bn

2023: £14.6bn

Adjusted operating profit

£3.5bn

2023: £3.4bn

Free cash flow

£2.2bn

2023: £2.3bn

1 Adjusted and other non-GAAP measures, definitions and terms are defined on page 223

Reckitt Annual Report and Accounts 2024

Strategic report Governance Financial statements Other information

Financial Performance continued

Hygiene net revenue grew +4.2% in 2024

onalike-for-like (LFL) basis to £6,140m.

Growthwas balanced with +2.4% price/mix

improvements and +1.8% volume growth.

Netrevenue growth was broad-based across

all Powerbrands and regions.

55% of our Hygiene Top CMUs (weighted

bynetrevenue) gained or held share during

theyear. Successful innovation launches

andstrengthened marketing were positive

growthdrivers, offset by a more competitive

environment in the US, particularly in Auto

Dishand Air Care.

Finish LFL net revenue grew mid-single-digits,

with strong growth across our thermoformed

formats driving further premiumisation in the

auto dish category as consumers continue

totrade up to more superior solutions. Finish

thermoformed tablets now account for 75%

ofour tablet net revenue.

HYGIENE

FY 2024 Net Revenue

£6,140m

Volume +1.8%

Price/Mix +2.4%

LFL +4.2%

Net M&A —

FX -4.1%

Actual +0.1%

Adjusted Operating

Profit Margin

22.4%

Actual +230bps

Adjusted Operating Profit

£1,375m

Constant FX (CER) +16.5%

Actual +11.2%

Lysol delivered high single-digit LFL net

revenue growth in the year, led by strong high

single-digit growth in all surface and bathroom

hygiene cleaners in our established segments

of disinfection. Our innovation platforms, Lysol

Laundry Sanitizer and Lysol Air Sanitizer,

continue to drive category growth with

penetration gains and market share growth.

Lysol Air Sanitizer demonstrates how our

platform discoveries lead to breakthrough

propositions. Since its launch in July 2023, it has

created an entirely new category with the first

and only air sanitising spray approved by the

EPA, which kills 99.9% of airborne viruses

andbacteria.

Harpic delivered mid-single-digit LFL net

revenue growth in the year, led by India where

our 10X Advanced Harpic formulation is

delivering category share gains.

Vanish net revenue grew low single-digits

inthe year, led by mid-single-digit growth

andmarket share gains in key markets across

Europe, building on our premiumisation strategy

enabled through superior performance,

especially in short and quick wash cycles.

We saw broad-based growth across our other

Hygiene brands, including Air Wick and Mortein.

Adjusted operating profit for Hygiene was

£1,375m, up +16.5% on a constant FX basis and

+11.2% on an actual basis. Hygiene’s adjusted

operating profit margin was 22.4%, up +230bps

driven by strong gross margin expansion,

effective targeted brand building and

marketing investment, supported by further

improvements in our fixed cost base enabled

by a strong productivity programme.

43%

of Group revenue

Reckitt Annual Report and Accounts 2024

Strategic report Governance Financial statements Other information

Financial Performance continued

Health net revenue grew +2.1% on a LFL basis

to £5,882m, reflecting price/mix improvements

of +2.4% and a volume decline of -0.3%.

Excluding our seasonal OTC brands, Health net

revenue grew 5.3% in the full year, with

volumes positive at +2.5%.

55% of our Health Top CMUs (weighted by net

revenue) gained or held share during the year,

driven by market share gains across our Intimate

Wellness and non-seasonal OTC portfolios.

Our Intimate Wellness portfolio, led by Durex,

delivered high single-digit growth in the year,

with double-digit growth across Developing

Markets, and high single-digit growth across

Europe. We are seeing strong market share

gains across these geographies with higher

rates of adoption being driven by improved

in-store execution, distribution gains and

recent innovation launches.

Intimate Wellness net revenue growth in China,

our largest market for Durex, grew mid-teens,

helped by the continued success of innovation

HEALTH

FY 2024 Net Revenue

£5,882m

Volume -0.3%

Price/Mix +2.4%

LFL +2.1%

Net M&A -0.7%

FX -4.4%

Actual -3.0%

Adjusted Operating

Profit Margin

28.9%

Actual +100bps

Adjusted Operating Profit

£1,699m

Constant FX (CER) +6.5%

Actual +0.5%

platforms such as polyurethane condoms

andhyaluronic acid condoms, which have seen

a strong response from consumers, as well

asour Intima feminine hygiene brand, which

has seen strong growth, especially across

ouronline channels.

Our non-seasonal OTC brands net revenue

grew mid-single digits in the year. Investment

in expanding supply capacity enabled us to

meet strong consumer demand, with Gaviscon

achieving double-digit growth and improved

pack fill rates, and strong growth in Nurofen

across multiple European markets supported

by the roll-out of Nurofen Liquid Capsules in

Italy, as well as a promising early response

tothe launch of Nurofen sustained release

with12-hour pain relief in Romania.

Net revenue of our seasonal OTC brands, Mucinex

and Strepsils, declined high single digits,

impacted by tough prior year comparatives in Q1,

a weak end to the cold and flu season in the first

half of the year and a delayed onset of the US

season in the second half. Notwithstanding this

backdrop, the equity of these brands remains

strong and is supported by ongoing innovation,

including the successful September 2024 launch

of Mucinex Mighty Chews, the first over-the-

counter medicated children’s soft chew for

cough relief.

Dettol net revenue grew low single digits in

the year, with strong volume growth partially

offset by the competitive pricing actions taken

in certain ASEAN markets. China delivered

strong double-digit growth led by innovation

across a number of platforms.

Adjusted operating profit for Health of £1,699m

was up +6.5% on a constant FX basis and +0.5%

on an actual basis. Health’s adjusted operating

margin was 28.9%, an increase of +100bps, with

gross margin expansion and fixed cost

optimisation more than offsetting increased

investment behind our brands.

42%

of Group revenue

Reckitt Annual Report and Accounts 2024

Strategic report Governance Financial statements Other information

Financial Performance continued

Nutrition net revenue declined by -7.3% on a

LFL basis in 2024 to £2,147m, with a price/mix

contribution of -0.2% and a volume decline

of-7.1%. This was driven by a combination of

the Mount Vernon tornado, which impacted

short-term supply to customers in the second

half of the year, and our market shares rebasing

from historical highs reached in the prior year

during the competitor supply issue.

Developing Markets remained broadly flat for

the full year, reflecting category-led volume

growth declines that were partially offset

bygrowth in premium products in ASEAN.

15% of Nutrition’s Top CMUs (weighted by net

revenue) gained or held share during the year.

This result was impacted by our market shares

rebasing in the US following the competitor

supply issue, and the impact of the Mount

Vernon tornado, which resulted in us being

outof stock in certain SKUs in some of our

more specialised formulations.

NUTRITION

FY 2024 Net Revenue

£2,147m

Volume -7.1%

Price/Mix -0.2%

LFL -7.3%

Net M&A —

FX -3.6%

Actual -10.9%

Adjusted Operating

Profit Margin

18.7%

Actual +20bps

Adjusted Operating Profit

£401m

Constant FX (CER) -5.4%

Actual -10.3%

Adjusted operating profit for Nutrition at

£401min 2024 was down -5.4% on a constant

FX basis and -10.3% on an actual basis.

Nutrition’s adjusted operating margin

was18.7%, up +20bps, as reduced gross margin

was offset by the effect of the insurance

proceeds following the Mount Vernon tornado.

We continue to expand our market access

andpenetration with new format releases

andinternational rollouts. In the higher-growth

digestion segment, we successfully launched

Enfamil NeuroPro Gentlease Powder in Q2

2024, which soothes stomach problems

withpatented prebiotics.

15%

of Group revenue

Reckitt Annual Report and Accounts 2024

Strategic report Governance Financial statements Other information

Financial Performance continued

IFRS net finance expense was £321 million

(2023: £130 million). The net finance expense

under IFRS is higher in 2024 due to a £130

million credit in 2023 relating to translational

foreign exchange gains arising upon liquidation

of a number of subsidiaries.

Tax

The adjusted effective tax rate (ETR) was

22.2% (2023: 25.2%). The 2024 ETR benefited

from a change in estimate of uncertain

taxpositions.

The IFRS tax rate was 31.9% (2023: 31.4%).

TheIFRS ETR in 2024 is higher than the adjusted

ETR due to the non-deductible impairment

ofintangible assets, and the non-deductible

costs linked to the group strategic

announcements in2024. The IFRS ETR in 2023

ishigher than theadjusted ETR due to the

non-deductible impairment of IFCN goodwill

offset by the benefit from largely non-taxable

gains onliquidation of subsidiaries.

Earnings per share (EPS)

Adjusted diluted EPS was 349.0 pence

(2023:323.4 pence), an increase of 7.9%.

Theincrease was due to higher adjusted

operating profit at constant exchange rates

and the beneficial effect of the ongoing share

buyback programme, partly offset by the

impact of foreign exchange.

IFRS diluted EPS was 203.2 pence

(2023:228.7pence), a decrease of 11.1%.

Thedecrease was driven by a lower operating

profit and higher net finance expense, which

more than offset the benefit of a lower diluted

number of shares.

Balance sheet

At 31 December 2024, the Group had total

equity of £6,720 million (31 December 2023:

£8,469 million).

Current assets of £4,598 million (31 December

2023: £5,302 million) decreased by £704 million.

Cash and cash equivalents reduced by £507m,

which includes an increase in share repurchases

in the year. Inventories and corporation tax

receivables also reduced in the year.

Current liabilities of £7,943 million (31December

2023: £8,338 million) decreased by £395 million.

The decrease principally relates to lower

borrowings and lower trade and other

payables, together with lower current tax

liabilities. These decreases were offset by

theshare repurchase liability in relation to

committed purchases under the share

buybackprogramme.

Non-current assets of £20,700 million (31

December 2023: £21,834 million) primarily

comprise goodwill and other intangible assets

of £17,565 million (31 December 2023: £18,588

million) and property, plant and equipment.

Thedecrease in goodwill and other intangible

assets of £1,023 million is predominantly

duetoimpairment of IFCN and Biofreeze

intangibleassets.

Non-current liabilities of £10,635 million

(31December 2023: £10,329 million) increased

by £306 million principally due to financing

activity, offset by a reduction in non-current

tax liabilities.

Net working capital

During the year, net working capital decreased

by £77 million to negative £1,402 million

(2023:negative £1,479 million). Net working

capital as a percentage of 12-month net

revenue is -10% (31 December 2023: -10%).

The following section should be read in

conjunction with the full-year financial review

from page 39 and the alternative performance

measures section from page 223.

Group operating profit

Adjusted operating profit was £3,475 million

(2023: £3,373 million) at an adjusted operating

margin of 24.5%, 140bps higher than the prior

year (2023: 23.1%). This increase was driven by

gross margins 70bps higher than 2023, and

fixed costs 90bps lower than 2023. This was

partially offset by BEI and other marketing

spend increases of 20bps.

IFRS operating profit was £2,425 million (2023:

£2,531 million) at an IFRS operating margin of

17.1% (2023: 17.3%). IFRS operating profit in 2024

was impacted by an intangible assets

impairment charge of £838 million relating to

IFCN and Biofreeze (2023: £810 million). The

IFCN impairment of £696 million (2023: £810

million) reflects changes in the regulatory

environment resulting in increased capital

requirements as well as to build greater

resilience in the wider supply network (see

note 9). During 2024, Biofreeze performed

below expectations following competitive

pressure from both private label and branded

competitors, new entrants to the market and a

reduction in the level of displays present in the

category which has resulted in an impairment

of £142 million (2023: £0 million), (see note 9).

IFRS operating profit was also affected by

restructuring and other project costs of £167

million linked to the group strategic

announcements in 2024. This principally

includes professional advisor fees and

severance costs relating to business

transformation and portfolio changes.

Net finance expense

Adjusted net finance expense was £323 million

(2023: £247 million). The increase in adjusted net

finance expense in 2024 was primarily driven by

increased interest payable on borrowings due to

the cost of debt issued in the period.

Cash flow

31 Dec 2024 31 Dec 2023

£m £m

Adjusted operating profit 3,475 3,373

Depreciation, share-based payments and gain on disposal of fixed

assets (net of proceeds) 546 585

Capital expenditure (465) (449)

Movement in working capital and provisions (271) (21)

Cash flow in relation to adjusting items

(61) (45)

Net interest paid (292) (263)

Tax paid (700) (922)

Free cash flow 2,232 2,258

Free cash flow conversion 91% 97%

1 Further details on adjusting items can be found on page 226

Free cash flow (FCF) is the amount of cash

generated from continuing operating activities

after net capital expenditure on property, plant

and equipment and intangible software assets.

Free cash flow reflects cash flows that could

beused for payment of dividends, repayment

ofdebt or to fund acquisitions or other

strategicobjectives.

Free cash flow of £2,232 million decreased by

£26 million or 1%. Free cash flow conversion

reduced by six percentage points to 91% as

thebenefit of reduction in tax paid was more

than offset by cash outflow relating to group

strategic announcements, higher interest paid

and cash outflow from increased working

capital commitments. Net cash generated from

operating activities has increased by £46 million

to £2,682 million (2023: £2,636 million).

Reckitt Annual Report and Accounts 2024

Strategic report Governance Financial statements Other information

Financial Performance continued

At 31 December 2024, net debt was £7,914

million, an increase of £624 million from 31

December 2023, as higher capital returns

through dividends (£1,381 million) and the

ongoing share buy-back program (£1,328

million) more than offset continued strong

freecash flow (£2,232 million). Net debt was

2.0x adjusted EBITDA at 31 December 2024

(31December 2023: 1.9x)

The Group regularly reviews its banking

arrangements and currently has adequate

facilities available to it. The Group has

committed borrowing facilities totalling £4,450

million (31 December 2023: £4,500 million),

ofwhich £124 million (2023: £nil) was drawn

atyear end and of which £3,500 million

(31December 2023: £4,450 million) expire

aftermore than two years. TheGroup remains

compliant with its banking covenants. The

committed borrowing facilities, together with

cash and cash equivalents, are considered

sufficient to meet the Group’s projected

cashrequirements.

Net debt

31 Dec 2024 31 Dec 2023

£m £m

Opening net debt (7,290) (7,984)

Free cash flow 2,232 2,258

Share buyback (1,328) (207)

Purchase of ordinary shares by employee share ownership trust (3) (2)

Shares reissued 3 48

Acquisitions, disposals and purchase of investments 17 (80)

Dividends paid to owners of the Parent Company (1,381) (1,339)

Dividends paid to non-controlling interests (2) (8)

New lease liabilities in the period (70) (44)

Exchange and other movements (91) 76

Cash flow attributable to discontinued operations (1) (8)

Closing net debt (7,914) (7,290)

Dividends

The Board of Directors recommends a final

2024 dividend of 121.7 pence (2023: 115.9

pence). The ex-dividend date will be 10 April

2025 and the dividend will be paid on 29 May

2025 to shareholders on the register at the

record date of 11 April 2025. The final 2024

dividend will be accrued once approved

byshareholders.

Return on Capital Employed (ROCE)

ROCE in 2024 was 13.5% (2023: 12.5%), an

increase of 100 bps from 2023, due to a higher

Net Operating Profit after Tax (NOPAT).

Capital returns policy

Reckitt has consistently communicated its

intention to use its strong cash flow for the

benefit of shareholders. Our priority remains

toreinvest our financial resources back into

thebusiness, including through value-adding

acquisitions, in order to deliver sustainable

growth in net revenue and improving earnings

per share over time.

In managing the balance sheet, we intend to

maintain key financial ratios in line with those

expected of an A-grade credit-rated business.

This will broadly define acceptable levels of

leverage over time. In 2024, our strong free

cash flow generation and healthy balance

sheet enabled us to return £1.3 billion of cash

to shareholders through share repurchases.

Growing the dividend is a long-term goal of

the business. The Board’s dividend policy aims

to deliver sustainable dividend growth in future

years, subject to any significant internal or

external factors. Accordingly, the 2024 dividend

was increased by 5% in line with this objective.

Reckitt Annual Report and Accounts 2024

Strategic report Governance Financial statements Other information

Sustainability Performance Review

OUR PURPOSE IS TO PROTECT, HEAL

AND NURTURE IN THE PURSUIT OF

ACLEANER, HEALTHIER WORLD

Our products are used in millions of households

every day. Our ambition is that every product

innovation we generate is more sustainable

than its predecessor.

Everything counts, from major new product

launches to small incremental changes. We

could be improving an existing product range

by reducing plastic packaging; switching to

amore sustainable, lower-carbon ingredient;

exploring new solutions with our suppliers;

orwe could be developing a completely new

product with a lower environmental footprint.

A key tool is our Sustainable Innovation

Calculator. This helps us compare the

sustainability of product innovations with

existing benchmarks. We evaluate a product’s

raw materials, packaging and environmental

impact to understand if innovations are

moresustainable.

Beyond product design, we leverage the scale

and reach of our iconic brands to influence

consumer behaviour. For example, Finish

promotes water conservation through its

ongoing ‘Skip the Rinse’ campaign, Vanish

promotes sustainable fashion through its

‘Clothes live longer’ ethos, Nurofen continues

toraise awareness of the gender pain gap

through its ‘See My Pain’ campaign, and

ourDettol Hygiene Quest school

educationprogramme aims to improve

hygienebehaviours.

Progress

In 2023, we put additional resources in place to

accelerate progress against our product

carbon footprint reduction target and meet our

post-consumer recycled (PCR) packaging

target. During 2024, we focused on the raw

materials used in our products and continued

our programmes to reduce the use of certain

chemicals. The impact of these projects has

contributed to an increase in net revenue from

more sustainable products, which now

accounts for over a third of total revenues

(34.9% in 2024 vs 29.6% in 2023).

We’ve been progressively removing specific

chemicals from our portfolio, targeting those

on our Restricted Substance List, including

fluorosurfactants and certain fragrances. These

have helped achieve a 24% reduction in our

overall chemical footprint versus our 2020

baseline (target: 65% reduction by 2030). We

are reviewing this target in line with emerging

regulatory developments (more detail in our

Sustainability Report).

34.9%

net revenue from more sustainable products

(Target: 50% by 2030)

MORE SUSTAINABLE BRANDS

INNOVATION IN ACTION

Our near-term focus has been on reducing

plastic and carbon across our portfolio.

Examples include:

• Enhanced formulas like our premium Vanish

Oxi Action Gold Stain Remover powders

which contain an innovative cold wash

catalyst that helps to remove the toughest

stains even in 30 minutes and at 20 degrees.

It helps consumers save energy in use and

reduces the product’s carbon and water

footprint (see page 12)

• Concentrated formulas like our Vanish PLUS

super concentrated powder which deliver

more for less as consumers only need to

usehalf the amount to achieve the same

greatresults

• Using recycled content (PCR) to replace virgin

plastic in packaging which helps us meet our

plastic targets as well as reducing our carbon

footprint. We significantly increased PCR

content in our Harpic, Lysol, Veja and Vanish

product ranges

• Reducing plastic packaging in products, like

our Harpic Hygienic & Fresh self-adhesive

toilet block which doesn’t need a plastic cage

• Refills for our Dettol surface cleaner and

CillitBang grime and limescale cleaner, which

provide consumers with more sustainable

alternatives that deliver the same high-quality

product performance and reduce packaging by

allowing consumers to refill their original bottle

More detail on sustainable product innovations

isavailable in our 2024 Sustainability Report

Everything we do is channelled

towards captivating and delighting

our consumers with more enduring,

relevant products that meet their

everyday needs.

We aim to create positive impact for people

and society while supporting resilience and

growth for our business. This approach is

reflected in our Sustainability Ambitions for

2030 and beyond. They are an integral part of

our strategy and our Purpose to protect, heal

and nurture in the pursuit of a cleaner, healthier

world. We focus on three pillars of activity:

more sustainable brands, healthier planet and

fairer society, informed by the issues that

matter most to our business and stakeholders.

Our commitment to advancing the global

sustainable development agenda

We are signatories to the UN Global Compact

and our annual communication on progress

demonstrates our commitment to the UN

Guiding Principles and the Sustainable

Development Goals (SDGs).

More detail on our approach, including the

outcomes of our materiality assessment, is

available in our 2024 Sustainability Report

Reckitt Annual Report and Accounts 2024

Strategic report Governance Financial statements Other information

Climate change

Our ambition is to achieve net zero by 2040.

We have a holistic set of science-based

targets to help tackle climate change and

achieve our net zero ambition, including:

• 65% reduction in emissions from our

operations (Scope 1 and 2) by 2030 vs 2015

• 50% reduction in emissions across our value

chain (Scope 3) by 2030 vs 2015

• Achieve 100% renewable electricity by 2030

We’ve already surpassed our initial target to

reduce emissions in our operations by optimising

high energy manufacturing processes (especially

those using natural gas), increasing our use of

renewable energy and investing in longer-term

renewable electricity generation.

We’re now focused on reducing emissions

across our value chain with our extensive

network of suppliers. In 2024, we began a

partnership with CO

AI and Quantis to enhance

our Scope 3 modelling capabilities. Specifically,

we’ve moved from representative to precise

emissions data for our products. This has

significantly improved the accuracy of our

modelling and delivered execution efficiencies

by automating manual, time-consuming

processes. The partnership is helping us to

identify priority actions across raw materials and

packaging, which account for over half of our

Scope 3 emissions. We can now target specific

materials and suppliers that account for around

80% of our raw material and packaging footprint.

This analysis enhances our ability to link agendas

and maximise value creation. For example,

increasing the use of recycled plastic content in

our packaging helps meet the future direction

of plastic policy and also reduces the carbon

footprint of packaging.

Our operations (Scope 1 and 2)

In 2024, we achieved a 69% reduction against

our baseline. During the year we completed

the expansion of solar installations at our

Taicang and Chonburi sites. Almost all of our

electricity is from renewable sources and we

now have 16 sites generating some of their

own renewable energy.

Our ongoing site decarbonisation and energy

efficiency programmes are continuing to

deliver emissions reductions. We are still

aiming to improve energy efficiency with its

associated reduction in energy costs. However,

many projects have a longer pay-back period

and those targeting electrical efficiency will

not help reduce our absolute carbon emissions,

which is the focus of our attention. We remain

focused on reducing our reliance on and use of

natural gas and are evaluating alternatives for

thermal energy to reduce carbon emissions.

96% of the electricity used across our sites is

renewable through a combination of on-site

generation, power purchase agreements, green

tariffs and renewable energy certificates (RECs).

We are progressively moving towards more

power purchase agreements and reducing our

use of RECs, which helps build resilience in

long-term renewable energy sourcing. During the

year, we secured power purchase agreements in

Poland, Singapore and Bahrain (the latter two are

due to come online in 2025).

Metric Unit 2024

2023

(restated)

* 2023

Scope 1 emissions tCOe 107,029

†

114,656 115,705

Scope 2 emissions (market-based) tCOe 6,714

†

8,842 8,902

Scope 2 emissions (location-based) tCOe 232,882

†

229,262 241,600

Total Scope 1 and 2 emissions (market-based) tCOe 113,743 123,498 124,606

Total Scope 1 and 2 emissions (location-based) tCOe 339,911 343,918 357,304

3.1 Purchased goods and services tCOe 4,126,467 4,239,379 5,047,000

3.4 Upstream transportation and distribution tCOe 1,107,400 1,075,607 1,618,000

3.5 Waste generated in operations tCOe 26,116 28,125 28,000

3.6 Business travel tCOe 43,610 50,423 159,000

3.9 Downstream transportation and distribution tCOe 1,560,183 1,571,522 1,572,000

3.11 Use of sold products (direct only) tCOe 379,457 383,274 366,000

3.11 Use of sold products (including indirect) tCOe 29, 417,952 29,370,005 28,775,000

3.12 End of life treatment of sold products tCOe 302,091 291,013 366,000

3.13 Downstream leased assets tCOe 28,304 30,481 30,000

Total Scope 3 emissions (direct consumer use only) tCOe 7,573,628 7,669,825 9,186,000

Total product carbon footprint (direct consumer use only) tCOe 7,585,641

†

7,685,717 9,127,034

Scope 1 and 2 GHG emissions intensity (market-based)

- tCOe per tonne of production 0.04 0.04 0.04

- tCOe/£m revenue 0.008 0.008 0.008

Energy consumption resulting in Scope 1 and 2 emissions MWh 1,244,716

†

1,270,672 1,220,968

Proportion of energy consumption from UK operations % 10 11 10

Proportion of Scope 1 and 2 emissions from UK operations % 9 12 12

Emissions information

† Assured by ERM CVS as part of limited assurance engagement in accordance with International Standard on Assurance

Engagement (ISAE) 3000 (revised) and ISAE 3410 for Greenhouse Gas data issued by the International Auditing and Assurance

Standards Board. The assurance report, along with the principles and methodologies we use in our reporting, can be found

online at www.reckitt.com/reporting-hub

1 We report on emission sources required under the Companies Act 2006 (Strategic Report and Directors’ Reports)

Regulations2013 and the Streamlined Energy and Carbon Reporting (SECR) requirements covering the 2024 reporting year

(1 January–31 December). Emissions have been calculated in line with the World Resources Institute (WRI)/World Business

Council for Sustainable Development (WBCSD) Greenhouse Gas (GHG) Protocol – Corporate Accounting and Reporting

(revisededition). Our GHG emissions and energy data includes emissions and energy consumption from operations covered

bythe Group Financial Statements for which we have operational control

2 The scope of our GHG emissions per tonne of production covers manufacturing and warehousing. Including R&D and offices

the GHG emissions intensity per unit of production in 2024 sites only was 0.04 tCOe

3 Total Scope 3 emissions includes our total product carbon footprint (where we are targeting a 50% reduction by 2030).

4 Total product carbon footprint is a measure of direct and indirect GHG emissions associated with Reckitt products across the

value chain. It includes the following Scope 3 categories 3.1, 3.4, 3.9, 3.11 (Direct), 3.12 and Reckitt’s own operations. The

methodology is detailed in our Basis of Reporting at www.reckitt.com/reporting-hub

* Restatements: prior year Scope 1 and 2 data has been restated to exclude divested sites and updates to the International

Energy Agency GHG emission factors. Prior year Scope 3 data has been restated asaresult of methodology improvements.

See our Basis of Reporting for details at www.reckitt.com/reporting-hub

See our Basis of Reporting for details on the

methodologies used to calculate this information

at www.reckitt.com/reporting-hub

See pages 218-222 for our Climate-related

Financial Disclosures and TCFD statement

See our Sustainability Report for information

onour Climate Transition Plan

See our ESG data book for more detailed

emissions and energy data

Sustainability Performance Review continued

HEALTHIER PLANET

Reckitt Annual Report and Accounts 2024

Strategic report Governance Financial statements Other information

Sustainability Performance Review continued

69%

reduction in absolute Scope 1 and 2 emissions

vs 2015 (Target: 65% by 2030)

Our value chain (Scope 3)

Our approach to reducing Scope 3 emissions is

to focus on the largest emitting categories and

the areas in which we have greatest influence.

Most significantly, we introduced product-level

modelling to account for the majority of our

ingredients and packaging impacts (purchased

goods and services), which make up over half

ofour Scope 3 emissions. As a result, we can

more easily identify alternative, lower-carbon

ingredients for our raw materials. One example

is the bio-based citric acid used in our Harpic

power plus deep clean tablets.

Outbound logistics account for almost 10%

ofour Scope 3 emissions. Through our green

logistics programme we have been engaging

with our customers, suppliers and distribution

centres to evaluate low-carbon road and sea

freight options. This includes fuel switches,

trialling and scaling the use of electric vehicles

and targeting fuel and transport efficiencies

byoptimising loads.

We continued to support third-party

manufacturers through our Supplier

Environmental Performance Programme.

Inpartnership with Manufacture 2030, Ricardo

and Haleon, we created a toolkit to help

suppliers improve resource efficiency and

reduce environmental impact in their operations

by building awareness of environmental

standards, sharing good practice and guidance.

Packaging and waste, circular economy

In 2023, we put additional resources in place

tomeet our 2025 PCR target and are on track

to achieve this. We introduced and increased

the use of PCR content in packaging across

multiple products including Vanish, Lysol,

Harpic, Cillit Bang and Veja.

We continue to make progress in reducing

virgin plastic by increasing recycled content

and reducing the amount of plastic used.

Thishas been a key focus over the last 18-24

months. Examples include concentrated refills

for Dettol and Cillit Bang.

We’ve also continued our efforts to improve

the recyclability of our packaging. Progress

isslower than we’d like, however, this reflects

industry-wide challenges, combined with

alack of recycling infrastructure and

technological solutions. Recyclability is

particularly challenging for regulated medicinal

and infant nutrition products where packaging

materials are intrinsic to the long-term stability

and safety of the product. The Ellen MacArthur

Foundation (EMF) forecasts that most

signatories of its Global Commitment are

expected to miss the 100% reusable, recyclable

or compostable plastic packaging target.

Regardless, we are continuing our efforts to

achieve 100% recyclability across our portfolio.

We’ve achieved zero waste to landfill at all

ofour manufacturing sites and we continue

toreduce waste from our operations.

recycled content (PCR) in plastic packaging

(Target: 25% by 2025)

15%

reduction in virgin plastic packaging vs 2020

(Target: 50% by 2030)

Water stewardship, nature-based

solutions, deforestation, biodiversity

We’re committed to protecting water

resources, avoiding deforestation and

strengthening biodiversity in key locations. Our

focus is on the areas where we can have the

most impact.

Our focus on reducing water use has centred

around our operations and the catchment areas

we are part of, especially in water-stressed

locations. We’re continuing initiatives to reduce

water use in our operations by reusing and

recycling water where appropriate, optimising

our processes and advancing on-site water

stewardship programmes. Water-saving projects

in water-stressed locations remain a key part of

our strategy for resilience in the long term.

We’ve now achieved water positivity at two of

our sites in India, Hosur and Mysore. For 2024,

Mysore was independently verified as water

positive by ERM CVS. Projects included digging

sunken ponds, restoring tanks,and building

small check dams to improve groundwater

filtration, rainwater retention andprevent soil

erosion. We are advancing similar projects at

key sites in Mexico, Pakistan, India and South

Africa, partnering with local NGOs and

governments to support communities and our

sites there.

We continue to consider the overall water

footprint of our products. Our near-term focus

has been on reducing plastic and carbon in our

product portfolio. This focus was essential but

meant that actions to reduce our overall water

footprint were not given the same priority. As a

result, our water footprint increased by 15%

versus our 2015 baseline, predominantly driven by

consumer use. Our water footprint includes

water used by consumers with our products, like

bars of soap. This makes reducing our overall

footprint more challenging. While we encourage

people to use less water, we are also considering

other ways to target reductions in our water

footprint, both in formulation and in use, enabled

by our Sustainable Innovation Calculator.

Reckitt Annual Report and Accounts 2024

Strategic report Governance Financial statements Other information

We have a long-standing commitment to

NoDeforestation, No Peat, No Exploitation

(NDPE) in our palm oil supply chains. In

preparation for EU Deforestation Regulation

(EUDR), we identified the impact on our natural

raw materials supply chains. While our products

are out of scope for EUDR reporting, some

ingredients such as palm oil surfactants are

impacted. We have engaged our suppliers to

ensure we have EUDR compliant material.

We’ve been a contributing member to the

Taskforce on Nature-based Financial

Disclosures (TNFD) since 2021 and are an early

adopter of the TNFD recommendations.

We have developed a science-based approach

to measuring the biodiversity impacts of our

sourcing activities on local ecosystems in

collaboration with Nature-based Insights.

Our priority natural raw materials include palm

oil, latex and cocoa. We are assessing the

biodiversity impacts in the landscapes where

these materials originate. We then work with a

number of partners, like the Earthworm

Foundation, to help protect and regenerate

those ecosystems, while helping to deliver

social benefits to local communities.

water positive sites in water-stressed

locationswhere we operate

More detail on our natural raw materials,

landscape programmes and our approach to TNFD

can be found in our 2024 Sustainability Report

PARTNERING WITH WWF SINCE 2021 TO

PROTECT ANDRESTORE NATURE FOR A

CLEANER, HEALTHIER WORLD

Reckitt and the World Wide Fund for Nature’s (WWF) global

partnership has focused on water and nature for the past

three years, helping to strengthen key water ecosystems

andsupplies for future generations.

The partnership has helped protect key species through

government and community-led initiatives. It has empowered

local communities with conservation actions that support

livelihoods and economic opportunities.

Reckitt has supported two transformative WWF projects in the

Ramganga tributary in India and the Tapajós tributary in Brazil:

• In India, the partnership has replenished over 1 billion litres

of water in the Ganga river, influenced water-resource

management, and supported sustainable farming practices

• In Brazil, the partnership has reached 3,000 people affected

by mercury contamination along the Tapajós tributary of the

Amazon river with improved access to safe water

By leveraging the reach and power of Reckitt’s brands Finish

and Air Wick, the partnership has inspired millions of people to

reconnect with nature and take action for ourplanet:

• Finish and WWF worked in nine countries to protect and

restore freshwater habitats. It replenished 500 million litres

of water in Norfolk, UK and 335 acre-feet of water in the

Upper Rio Grande Basin in the US

• Air Wick and WWF restored and protected 1.3 billion square

feet of wildflower habitats across 11 countries and reached

over 600 million people

200,000

people positively impacted through the Reckitt and WWF

partnership since 2021 (excluding Finish and Air Wick activity)

Sustainability Performance Review continued

The next phase of our partnership aims to:

• Deliver conservation programmes in India, Brazil, Indonesia and Pakistan to

help regenerate nature and replenish freshwater

• Help improve sustainability across palm oil supply chains in Indonesia to

contribute towards sustainable livelihoods and a lasting, positive impact in

communities

• Provide practical solutions to support Reckitt’s ambition for water positivity

in water-stressed sites by 2030

Photo credit: WWF

Reckitt Annual Report and Accounts 2024

Strategic report Governance Financial statements Other information

Gender diversity

Senior manager roles

374 (66%)

GEC and direct reports

47 (36%)82 (64%)

Board Directors

4 (36%)

All employees

16,033 (46%)19,106 (54%)

All manager roles

7,575 (49%)

7 (64%)

8,041 (51%)

191 (34%)

Sustainability Performance Review continued

We are committed to enabling a fair, diverse

and inclusive society as an employer, across our

supply chain and through our brands. Our

inclusion strategy focuses on who we are as a

business and the role we play in society.

Diversity, equity and inclusion

inourworkforce

Becoming a more diverse and inclusive

organisation helps to drive our performance

and is keyto attracting and retaining talent.

Our commitment to championing different

nationalities, ages, backgrounds, identities,

beliefs, and cognitive and gender diversity is

fundamental to a fair and equitable working

environment and our ability to deliver products

that reflect the diversity of the consumers we

serve around the world.

Nearly half of our employees are women,

ourmanager population is gender-balanced

and women make up a third of our senior

management team. Gender balance at the

highest levels is improving, while we have

already achieved 50% women at all

management levels by 2030.

51%

women at all management levels

FAIRER SOCIETY

Living Wage

Reckitt achieved Global Living Wage

Certification from the Fair Wage Network in

December 2024, having already achieved UK

accreditation in 2020. This confirms that we

pay all our employees in all our markets at least

the living wage for that location. We are also

committed to paying a living wage for our

interns, trainees and apprentices.

Paying a living wage enables workers to meet

the basic needs of themselves and their

families, including food, housing, education and

healthcare. It goes beyond minimum wage and

helps people to achieve a sustainable

livelihood.

Respecting human rights and empowering

everyone in our value chain are at the heart of

our efforts. Through our Sustainable Livelihood

Framework, we aim to go beyond wages to

ensure safe working environments, equality,

employment rights, financial security and

career development opportunities. By

partnering with NGOs, peers, and communities,

we focus on addressing critical issues where

we can make a lasting impact, building

resilience and fairness across the value chain.

Male

Female

Key

Diversity data is taken as of 31 December 2024 for active Reckitt employees (excluding contractors)

‘All management’ includes: Executive Committee member, Group leadership team, senior management team,

middlemanager, manager

Further information on methodology for calculating diversity performance is available in our Basis of Reporting Criteria

atwww.reckitt.com/reporting-hub

More detail in the Directors’

Remuneration Report on page 116

Reckitt Annual Report and Accounts 2024

Strategic report Governance Financial statements Other information

Advancing global health and hygiene

The global health system is under pressure,

with one in two people lacking access to basic

healthcare and one in four people living

without access to clean water.

We’re committed to making sure

underrepresented communities have access to

the highest-quality health and hygiene, by

leveraging innovative finance and scaling local

solutions from social entrepreneurs.

Through our iconic Powerbrands, like Durex,

Dettol, and Finish, we are driving behaviour

change at scale, embedding lasting habits and

breaking the chain of infection.

Programmes are funded via our Global Access

Fund

supported by our commitment to invest

1% of our adjusted operating profit across a

three-year average into social impact. Through

the fund, we put a specific focus on advancing

gender-transformative initiatives, prioritising

the needs of women and girls.

We’ve almost reached our goal of positively

impacting 30 million people by 2030, reaching

29 million people to date. More broadly, we

have exceeded our target to engage two

billion people with purpose-led partnerships,

programmes and campaigns to promote

awareness for a cleaner, healthier world.

More detail on our social impact programmes

canbe found in our Social Impact Report

29mn

people positively impacted by our social

impact investments (cumulative since 2020)

(Target: 30 million people by 2030)

2.3bn

people engaged through our purpose-led

partnerships, programmes and campaigns

(cumulative since 2020)

1 Formerly the Fight for Access Fund

Sustainability Performance Review continued

ACCESS HUB

We harness innovation and entrepreneurship

to drive transformative impact. Since 2022,

we’ve built a network of over 50 social

innovators, improving global health and

hygiene.

Through Reckitt’s Access Hub, we are

adopting a strategic, portfolio-driven

approach to scale our efforts in capability

building, mentorship and financial support

forinnovative social entrepreneurs around

the world. Together with our partners like

Yunus Social Business and Health Innovation

Exchange, we are creating a powerful

ecosystem of collaboration and sustainable

change that addresses some of the world’s

most pressing challenges.

By partnering with social innovators, we

arefostering a community of cutting-edge

solutions in health and hygiene. A specific

focus is on investing in women-led ideas and

integrating the solutions into our value chain.

For example, our factories in South Africa

and Indonesia have partnered with Eco-Soap

Bank to recycle soap waste that is then

distributed to vulnerable communities and

used in our Dettol Hygiene Quest

programme.

In Pakistan, Reckitt has provided funding and

mentorship to the social enterprise Tayaba

which has launched an atmospheric water

generator that creates safe drinking water

from the humidity in the air. They continue to

scale their impact in theregion.

Dr. Shamim Nabuuma, founder and CEO of Chil

AI Lab, has provided healthcare services to

rural communities in Uganda for several years.

She is now our partner to deliver the country’s

first Hygiene Quest programme.

Our social entrepreneurship hub is a key pillar

of our impact work. As we look forward, we

will continue to scale innovative solutions to

local problems and leverage our network to

drive systemic change.

IMPROVING ACCESS TO

CLEANWATER, SANITATION

AND HYGIENE

Since 2019, Reckitt and Water.org have

brought water and sanitation to over

2.4million people in India, Indonesia

andKenya, and soon inNigeria.

Our longstanding partnership with

water.org is driving scalable impact to

enable access to household water and

sanitation solutions for millions of people.

Now, we are extending the microcredit

model to Nigeria. Together, we are working

to reach five million people with lasting

access to safe water or sanitation by 2030.

In September, we announced our latest

$5million investment into WaterEquity’s

impact funds, supporting climate-resilient

infrastructure. We continue to drive

catalytic impact, re-investing the yields of

the funds to further scale our impact work

with water.org.

Photo credit: water.org

Reckitt Annual Report and Accounts 2024

Strategic report Governance Financial statements Other information

Sustainability Performance Review continued

We are committed to the 10 principles of the UN Global Compact in the areas of human rights, labour, the environment and anti-corruption.

NON-FINANCIAL AND SUSTAINABILITY INFORMATION STATEMENT

Relevant policies and risk management processes Additional information

Environmental matters Our Environmental Manufacturing Policy sets out our objectives for reducing our environmental impacts. It requires compliance with relevant legislation,

consideration of environmental issues in key decisions, and engagement with multiple stakeholders for better environmental performance which is

monitored through our Group Environmental Management System. Our Supply Chain Leadership team routinely monitors environmental performance,

including progress on our climate ambitions through our operational programmes. These are also reviewed at Group and Board level on a quarterly basis.

Our Sourcing for Sustainable Growth Policy sets out Reckitt’s human rights, health and safety, environment and sourcing requirements for all business

partners. The policy details six responsible sourcing principles that drive us to conduct business with honesty and integrity, respect human rights, provide

a safe and healthy working environment, use safe and sustainable ingredients, source raw materials responsibly, protect the environment and reduce

environmental impact. The policy applies to Reckitt employees and third parties.

Environmental Performance

Review, pages 46-48

Employees Reckitt’s Code of Conduct governs standards of conduct in relation to our employees, as well as our stakeholders. All employees must complete Code of

Conduct training and are encouraged to refer to the code frequently to ensure the right decisions are made. In addition, Reckitt has policies committing

to equal opportunities at work and to providing a safe and healthy working environment. Health and safety performance is monitored through our Group

Occupational Health and Safety Management System, enabling us to investigate any incidents and take any necessary action. We have a Speak Up

Policy and process, allowing any employee or third party to confidentially report a violation of the Code of Conduct, local law or regulation, or unethical

behaviour.

Social Performance Review,

pages 49-50

People and Culture, pages 8-9

Human rights Respecting human rights is an absolute and universal requirement and through our Code of Conduct we set out our commitment to respecting the

fundamental human rights defined in the UN Universal Declaration of Human Rights. Our Labour and Human Rights Standard sets out the requirements and

practices expected of our supply chain. Our Sourcing for Sustainable Growth Policy (see above) also encompasses principles of the International Bill of

Human Rights and the International Labour Organization’s (ILO) Declaration on Fundamental Principles and Rights at Work. We also follow the UN Guiding

Principles on Business and Human Rights and Organisation for Economic Co-operation and Development (OECD) Guidelines for Multinational Enterprises.

Our Supply Chain Leadership team monitors our human rights and labour standards assessment programme on a monthly basis, while these are also

reviewed at Group and Board level on a quarterly basis.

See our Modern Slavery Statement

Social and community matters,

including consumers

Reckitt’s Product Safety Policy describes our approach to safety assurance for products, covering product development; monitoring in-use safety

andfeedback from users; and reacting promptly and effectively to mitigate potential harm. In addition, our Responsible Marketing Policy covers the

fullmarketing lifecycle of our products and applies to all marketing communications and channels. It applies to everyone at Reckitt and external parties.

We perform ongoing audits and adherence checks on policy implementation. We also monitor consumer, customer and employee feedback on an

ongoing basis, through our consumer care lines or our Speak Up Line.

Social Performance Review,

pages 49-50

See our 2024 Sustainability Report

Anti-bribery and corruption Our policy is that all Reckitt companies, employees and contractors must comply with the anti-bribery, anti-corruption and competition laws of all

countries in which they operate. Directors and managers must ensure that the employees and contractors they supervise are aware of and comply with

this policy. All employees and contractors must certify annually that they have complied with our Code of Conduct, and the Audit Committee reviews

internal audit findings in relation to this.

Emissions information Page 46

Climate-related financial disclosures Our climate-related financial disclosures can be found on pages 218-222

and are incorporated into the Strategic Report by reference

Diversity information Page 49

Policy embedding, due diligence and outcomes Risk Management, page 52

Principal risks and impact of business activity Pages 53-55

Description of business model Pages 10-15

Non-financial key performance indicators Page 37

Reckitt Annual Report and Accounts 2024

Strategic report Governance Financial statements Other information

Risk Management

RISK MANAGEMENT AT RECKITT

Taking and managing risk are

essential to the way we operate

andto growing our business safely,

effectively and sustainably. They

arefundamental to both good

management practice and to

thesuccessful delivery of our

strategic priorities.

Our risk management framework

Our risk management framework provides

aconsistent approach to risk management

across the organisation and facilitates the

timely communication of risks to ensure the

right people at the right level are managing

theright risks.

Risk appetite

The Board interprets risk appetite as the level

of risk that the Company is willing to take to

meet its business objectives. The Board’s

appetite for risk is communicated to the

organisation through our strategic and business

planning process and control frameworks.

TheBoard recognises that not only does risk

mitigation need to be proportionate to the

benefit gained, but also carefully balanced

witha degree of flexibility to support Reckitt’s

dynamic and entrepreneurial culture.

In assessing risk appetite, the Board reviews

the three-year business plan and associated

strategic risks. The risk appetite for specific

financial risks such as funding and liquidity,

credit, counterparty, foreign exchange, interest

and commodity risk is set out in the Board-

approved treasury policies. Compliance

withour safety standards and our legal

andregulatory requirements is mandatory.

Risk governance

Reckitt’s risk governance model supports

ourrisk management framework and enables

effective management and reporting of

material risks. Reckitt operates a three lines

ofdefence model which assigns clear roles

andresponsibility for the management of risk.

The Board has overall responsibility for the

management of risk and the Audit Committee

monitors the effectiveness of our risk

management and internal controls framework.

Board oversight is achieved through several

mechanisms which include strategic reviews,

Committee meetings and focused reviews

intoselected risk areas.

Ownership and day-to-day management of

principal risks reside with the GEC. There is an

accountable GEC owner for each principal risk.

Throughout the year, Group and management

level risk and compliance committees across

the business have supported the GEC in its

oversight role. These are embedded within the

governance structure of the organisation, with

escalation between committees as needed.

They meet quarterly to review, challenge and

monitor risk management activities.

Risk management process

Our risk management process delivers simple

and effective risk management which supports

business operations and allows management

and the Board to fulfil their duties under the UK

Corporate Governance Code. This ensures that

we are appropriately prioritising our efforts and

resources to manage our risks.

Our Group Risk team, part of the wider Internal

Audit and Risk function, facilitates the risk

management process. The Group’s risk profile

is reviewed biannually, with risks assessed

across a timeline of up to three years, and

prioritised based on impact, likelihood and

speed of impact, which reflects the time we

would have to react should a risk materialise.

The risk profile is used as an input to the

Viability Statement assessment.

Our principal risks

Our principal risks continue to evolve in

response to our changing environment. During

2024 business transformation was elevated to

a principal risk due to the organisational

change underway to simplify the organisation

for accelerated growth. While the likelihood

and impact of the remaining principal risks are

broadly consistent with 2023, some related

risks have been combined to provide a clearer

understanding of the risk profile and to support

more efficient risk mitigation strategies.

Theseinclude:

• Cyber security risk has been expanded to

technology resilience and information security

to include related threats to critical systems

and data and to ensure mitigation efforts are

focused on a broad spectrum of vulnerabilities

• Product safety and compliance with product

regulations have been combined into an

overall product integrity risk to provide a

comprehensive framework which ensures

allaspects of product-related risks are

addressed cohesively

• Supplier disruption and reliance on key

manufacturing sites have been merged into

supply chain continuity and resilience to address

the interdependencies between supply chain

stability and manufacturing capabilities and

allow development of contingency plans for

critical manufacturing processes

Remote Possible Likely Highly likely Likely Possible Remote

Minor impact

Moderate impact

Major impact

Severe impact

Years (speed of impact)

Months

Weeks

Days

Principal risk

1. Technology resilience and

information security

2. Product integrity

3. Legal and compliance

4. Supply chain continuity and

resilience

5. Business transformation

6. Geopolitical instability

7. ESG transition

8. Product innovation

9. Macroeconomic uncertainty

Key

Reckitt Annual Report and Accounts 2024

Strategic report Governance Financial statements Other information

OUR PRINCIPAL RISKS

Risk What is the risk and impact? Examples of how we are managing the risk Mitigation progress this year

Business transformation

Link to strategic priorities:

Risk classification: Strategic

Risk trajectory: New

Risk rating: Major

Speed of onset: Weeks

Oversight Committee: Board

The uncertainty inherent in the

large-scale organisational change

underway risks the loss of

management or key personnel,

disruption of short-term operations

and change fatigue, adversely

affecting performance.

Additionally, failure to prioritise

resources effectively to achieve

targets could jeopardise the

delivery of our medium and

long-term growth ambitions.

• A steering committee is in place to oversee the programme and reviews resourcing and

capacity to ensure minimal disruption to operations

• Dedicated Project Management Office (PMO) supported by external experts, which

actively monitors key performance indicators (KPIs) and resource capacity, including

metrics on talent retention

• The portfolio of existing programmes has been reprioritised to create organisational

capacity for the reorganisation

• Talent retention plans in place for critical roles

• Regular employee communications-monthly senior leadership calls and briefing packs,

and central transformation hub with relevant information and updates in place

• External advisors for key elements of the programme-McKinsey, EY and BCG-on both

thetransformation and separation

• Operating model clarity, decision-making rights and governance deployed to all

functional leaders across core Reckitt, Essential Home and Mead Johnson Nutrition

forJanuary 2025

• Separation principles and perimeter defined to ensure clear work plan and resourcing in 2025

• New principal risk in year

Geopolitical instability

Link to strategic priorities:

Risk classification: Strategic

Risk trajectory: Increasing

Risk rating: Moderate

Speed of onset: Months

Oversight Committee: Board

Reckitt operates in a challenging

and unpredictable trading

environment influenced by

variousexternal factors that

canimpact our operations and

financial performance.

Geopolitical events such as

conflicts, trade wars, economic

sanctions, and political polarisation

create disruptions, adding to

thecomplexity of our

operatingenvironment.

• Our three-year plan takes into account current and potential future challenges

• We maintain an extensive network of local regulatory and external affairs teams, which

together with external advisors closely monitor the political and geopolitical environment

• Our Issues and Crisis Management team supports the business with market-specific risk

assessments and resources to support with regional issue and crisis management

• Geopolitical risk is considered within our business continuity planning for the resilience

ofour supply chain

• Our Corporate Security function identifies potential threats through the Corporate

Security programme and supports the business with horizon scanning activities

• The GEC provides oversight over the management

ofthe Group’s geopolitical risk profile

• To enhance manufacturing resilience, we are

regionalising our supply chain, including building

redundancies within the network to mitigate

disruptions and risks from geopolitical instability

• Ad hoc horizon scanning and scenario planning

activities are undertaken by the GEC and in-country

management teams

Product innovation

Link to strategic priorities:

Risk classification: Strategic

Risk trajectory: No change

Risk rating: Moderate

Speed of onset: Years

Oversight Committee: Board

Our continued growth and success

depend on our ability to innovate,

produce relevant products, and

maintain our value proposition.

Failure to anticipate and respond to

evolving consumer trends, invest in

research and development, and

launch and market new products

could lead to diminished brand

presence and loss of market share

and profitability.

• Consumer trends, behaviour and needs are analysed through our demand-centred

growth process based on targeted consumer segments

• Innovation projects follow a standardised operating model, which includes defined stage

gates and cross-functional approvals, with oversight from our category and R&D teams

• Product development reporting provides visibility over our innovation pipeline

• Continued investment in our science platforms to create superior, longer-term and

differentiated products, strengthen our claims and lead with consumer-relevant solutions

• We work closely with external partners to drive innovation in key areas like sustainability

and new technologies

• Move to a simplified organisational structure with a

unified category growth organisation accountable for

delivering consumer insights, category expertise and

innovation from 2025

• To support the longer-term growth ambitions in China,

we are establishing a Global R&D Centre of Excellence

in Shanghai, to drive enhancements in innovation

through collaboration, science capabilities and

talentdevelopment

• We are exploring the possibilities of generative

AIwiththe aims of enhancing product superiority

andincreasing speed to market

Risk Management continued

Link to strategy

Portfolio value creation Product superiority Win in market Fixed cost optimisation

Reckitt Annual Report and Accounts 2024

Strategic report Governance Financial statements Other information

Risk Management continued

Risk What is the risk and impact? Examples of how we are managing the risk Mitigation progress this year

Technology resilience

and information

security

Link to strategic priorities:

Risk classification:

Operational

Risk trajectory: No change

Risk rating: Major

Speed of onset: Days

Oversight: Board

Reckitt’s increasing reliance on

digital technologies for operations,

supply chain management, and

consumer engagement exposes

the organisation to cyber attacks,

IT system failures, and potential

data breaches which could lead to

disruption of critical operations,

unauthorised access to sensitive

data and non-compliance with

regulatory requirements.

• We operate a Group-wide cyber security control framework, aligned with industry

standards, including ISO and National Institute of Standards and Technology (NIST)

• We undertake regular horizon scanning and threat detection activities, perform

penetration testing and work closely with our third parties and partners to manage

cyberrisk

• Robust Information Technology and Digital (IT&D) Controls Framework in place including

policies, standard operating procedures and training covering governance, third-party

vendor management, service continuity and recovery management and responsible AI

• Access restrictions are in place for any publicly available AI and machine learning solution

• Mandatory cyber awareness training is rolled out across the Group as part of our

compliance training programme

• We continue to invest in our digital manufacturing

infrastructure to improve cyber security on the factory

operating technology network. The programme is in

place to address all factory sites to improve protection

and recoverability of the factory estate

• Responsible AI Policy, principles and SOPs to assess and

mitigate the risks relating to the creation and adoption of

AItools were rolled out. A baseline AI training module was

developed for all relevant employees

• Our Cyber team has updated the endpoint protection

solution to improve detection and protection from

malware. We also continue to enhance our identity and

access management capabilities (which also support

compliance with UK SOX legislation)

Supply chain continuity

and resilience

Link to strategic priorities:

Risk classification:

Operational

Risk trajectory: No change

Risk rating: Major

Speed of onset: Weeks

Oversight Committee: Board

Our ability to source materials

andmanufacture and distribute

ourproducts through our global

network relies on complex

manufacturing and supply chain

processes. Operational failures,

supply chain disruptions, and

process inefficiencies, or more

broadly, large external events

likeextreme weather or

infrastructure failures could

disruptor halt operations.

• We carefully monitor all our third-party suppliers through our supplier management

programme and our Procurement team regularly risk assesses our suppliers and entire

direct material portfolio across multiple dimensions using our supplier vulnerability tool.

We also map our suppliers further up the value chain to identify any potential geographic

concentration risks

• Action plans, centrally tracked and monitored through our quarterly Supplier Risk

Committee, are in place for critical suppliers to ensure continuity of supply in the event

ofa disruption. Where possible, these include business continuity planning and the

qualification of alternative suppliers

• Each of our manufacturing sites is classified through a three-tier system based on

revenue dependency or criticality to market. This drives our site inspection programme

with Tier 1 sites being subject to more regular inspections

• We have continued to de-risk our sourcing of critical

materials through the qualification of alternative

suppliers and have reduced the number of highly

critical materials by 14% since 2023

• Key initiatives have been launched to strengthen our

manufacturing resilience including regionalising the

supply chain, reducing obsolescence, further

developing and standardising business continuity plans

across factories and reviewing our network master plan

to enhance overall resilience

• In December we acquired a new manufacturing

siteinNorth Carolina, US, for over-the-counter (OTC)

products. Given Reckitt’s ambitions to grow the

business further, the acquisition of this new facility,

which we anticipate will begin production in 2027,

isakey part of our Future Factory Network Plan

Product integrity

Link to strategic priorities:

Risk classification:

Compliance and responsibility

Risk trajectory: No change

Risk rating: Major

Speed of onset: Weeks

Oversight Committee:

Compliance Committee

Our broad portfolio includes

products that are ingested, inhaled

or have direct skin contact. Some

may contain hazardous chemicals.

Failure to meet quality, safety, and

regulatory standards could lead to

potential harm to consumers,

product recalls, and legal liabilities,

and impact consumer confidence

in our brands.

• Our Regulatory Intelligence framework performs horizon scanning to help identify new

and emerging regulatory changes and trends in enforcement practice

• Our Ingredient Steering Group monitors regulatory developments, reviews classification

changes and completes impact assessments utilising our Restricted Substances List

• A robust quality management system (QMS) is in place underpinned by policies, operating

procedures and systems. This is subject to regular independent audits, and our internal

Quality Audit team also audits internal functions to ensure compliance

• Our Quality, Regulatory and Safety Council collectively addresses product integrity-related risks

• Our Consumer Safety team conducts holistic product safety assessments during the

product development lifecycle

• We have an adverse and critical events process, and our dedicated Consumer Care and

Vigilance teams monitor and respond to product quality or safety issues

• We use data generated from our Consumer Safety, Evidence Generation and Clinical

Research functions to support our claims

• We launched a new Regulatory Intelligence system

during the year to capture data related to emerging

regulatory changes

• We developed, launched and optimised a new

Consumer Safety CARA System, enabling the

generation of automated safety assessments and our

technology risk vigilance platform is now operational

• Established an EU Green Deal programme to bring our

product portfolio into compliance with new EU regulations,

such as the General Product Safety Regulation

• Our quality organisation has consolidated under R&D

toensure quality oversight throughout the end-to-end

product lifecycle

• We have digitised our quality management system and

continue to develop and launch modules, including new

audit management functionality

Link to strategy

Portfolio value creation Product superiority Win in market Fixed cost optimisation

Reckitt Annual Report and Accounts 2024

Strategic report Governance Financial statements Other information

Risk Management continued

Risk What is the risk and impact? Examples of how we are managing the risk Mitigation progress this year

Legal and compliance

Link to strategic priorities:

Risk classification:

Compliance and responsibility

Risk trajectory: No change

Risk rating: Major

Speed of onset: Years

Oversight Committee:

Compliance Committee

Reckitt operates in various

countries with diverse regulatory

environments. Failure to meet

legal,regulatory, and corporate

responsibility commitments could

impact our reputation with our

consumers, investors, and

stakeholders. Additionally, operating

in litigious environments increases

litigation risk, potentially leading to

significant legal costs, settlements,

and reputational damage.

• A global Ethics and Compliance programme is in place which covers key areas such as

anti-bribery, sanctions, competition and data privacy. The programme incorporates annual

training, ‘Speak Up’ hotline, compliance policies and procedures, targeted risk and control

assessments and third-party due diligence

• Embedded Legal and Compliance teams, supported by external experts as needed, to

help us identify, understand and comply with current and emerging regulatory obligations

• Group Privacy Office (GPO) and in-market privacy programmes to support the business

and provide oversight of data protection policy compliance

• Disputes and litigation are supervised by senior members of the Legal team, with General

Counsel oversight of significant Group matters

• To further enhance our programme, we undertook

acomprehensive mapping of the key risks within the

scope of ethics and compliance. This mapping will

inform continued improvement of risk assessment

activities, the definition of more effective mitigating

actions, the improvement of monitoring processes,

andthe better allocation of resources

• We undertook a review of our third-party due diligence

programme which has led to the creation ofa

transformation plan to address those aspects ofthe

programme requiring improvement

• Development of a procedure to risk assess the use of AI

ESG transition

Link to strategic priorities:

Risk classification:

Compliance and responsibility

Risk trajectory: No change

Risk rating: Moderate

Speed of onset: Months

Oversight Committee: Board

Changes in the regulatory

environment and shifting

stakeholder expectations

emerging from the transition

toamore sustainable, net zero

economy creates significant

uncertainty for Reckitt. There is

arisk that we fail to deliver our

ESGprogramme or deliver against

our Sustainability Ambitions.

• We have a clear set of Sustainability Ambitions with measurable, time-bound targets.

Performance is centrally coordinated, monitored and reported. See page 45

Programmes to meet our targets are implemented by our Brands, Supply Chain, R&D,

andSafety, Quality and Regulatory Compliance teams

• A Group Sustainability function leads sustainability-related strategy development,

compliance and reporting to support performance management and disclosure.

Across-functional steering committee provides governance and oversight across

keyESG transition risks and sustainable product activities

• Tools have been developed to support the delivery of our Sustainability Ambitions,

including our Sustainable Innovation Calculator. This has been implemented across our

innovation pipeline to quantify sustainability improvements across carbon, water, plastics

and packaging, ingredients and overall extended producer responsibility (EPR) risk

• Carbon footprint modelling enables targeted activity for decarbonisation

• We continue to deliver on our operational carbon, plastics,

water catchment, and waste reduction targets. We have

surpassed our initial targets for direct emissions and are

now focusing on reducing Scope 3 emissions

• CSRD, EU Green Deal and EU Taxonomy programmes are

underway, with associated IT&D development, to prepare

for requirements ahead of 2026. This includes an updated

double materiality approach in line with CSRD

• Carbon footprint modelling has been strengthened

toprioritise reduction levers for Scope 3 emissions

andsupport the development of more detailed

transition plans targeting areas of highest carbon

forgreatest impact

• Ongoing programmes of supplier auditing and

development to ensure compliance with human rights

and labour standards, and sustainable sourcing (i.e.

avoiding risks of modern slavery and deforestation)

Macroeconomic

uncertainty

Link to strategic priorities:

Risk classification: Financial

Risk trajectory: Increasing

Risk rating: Moderate

Speed of onset: Weeks

Oversight Committee: Board;

Audit Committee

Adverse economic conditions,

coupled with high levels of

volatility and unpredictability in

themacroeconomic environment,

could impact our ability to deliver

consistent and predictable growth.

Fluctuations in interest rates,

currency exchange rates, and

inflation can adversely affect

ourfinancial performance and

strategic objectives.

This risk is further exacerbated

bypotential changes in tax laws,

financial compliance requirements,

and regulatory frameworks, which

may lead to increased operational

costs and compliance requirements.

• Ongoing monitoring of local and global key macroeconomic indicators and their

consequent impact on our business performance

• Interest rate and foreign exchange risks are centralised into Group Treasury to provide

expertise, control and economies of scale in managing and reporting on these financial

risks in line with Group-wide policies and procedures

• Key commodities’ prices are managed on an ongoing basis by our supply teams and

communicated across the Group

• Our partnerships with external tax advisors help us understand and remediate the

taximplications of changes in organisational structure and the impact of any regulatory

orother legislative changes, helping inform the need for central provisioning for

anticipated exposure

• Our Planning and Forecasting Programme is now live

across Europe, Asia, Africa and the Middle East, with

North America and Latin America to go live during 2025.

We anticipate that its adoption across these markets,

along with its integration with demand andsales

planning, will provide greater visibility into forecast

horizons and enable the Group to enhance itsscenario

planning and risk management capabilities across

thebusiness

Link to strategy

Portfolio value creation Product superiority Win in market Fixed cost optimisation

Reckitt Annual Report and Accounts 2024

Strategic report Governance Financial statements Other information

Risk Management continued

EMERGING RISKS

Our risk profile will continue to evolve as a result of future trends and uncertainties. Emerging risk and horizon

scanning is integrated into our standard risk management process and provides a forward-looking view of major

trends that have the potential to impact our business across a longer time horizon (>three years). Emerging risks

are monitored to understand the potential impact on our business and to allow timely decision-making.

Risk Description How are we preparing?

Science and technology disruption

Link to strategic priorities:

The rapid pace of advancements in science and

technology has the potential to significantly disrupt

the categories in which we operate. Innovations

inareas such as biotechnology and digital health

couldredefine consumer expectations and

competitive dynamics.

• External partnerships allow us to participate in leading research around hygiene interventions and the

development of emerging treatments

• Our R&D and Science teams actively engage with the scientific community through participation in

conferences, thought leadership and research projects. Working with this consortium of external experts

helps us to stay abreast of leading developments in science and regulatory affairs and the impact of

emergingtechnology

• Horizon-scanning activities undertaken internally across a number of teams, including the Corporate

Development team and individual brand teams, helping to identify threats and opportunities in each category

Artificial intelligence

Link to strategic priorities:

Failure to adopt and integrate advanced AI

technologies could result in significant competitive

disadvantage. This includes the risk of lagging behind

industry peers which leverage AI for enhanced

decision-making, operational efficiency, innovation

and customer engagement. The inability to keep pace

with predictive and generative AI may lead to loss of

market share.

• Reckitt AI and Machine Learning (ML) Community of Practice established an AI and ML Idea Factory to target

areas where AI and ML can be used to drive innovation and enhance the business

• Pilots launched to help illustrate how GenAI can enhance both productivity and growth

• We have been working to develop our own tools and validate how we can reinvent the way marketeers work

at Reckitt end to end

Sector consolidation

Link to strategic priorities:

Consolidation in the number of players together

withhigher levels of competition for potential

acquisition targets may impact our ability to drive

inorganic growth.

• Corporate Development team responsible for identifying, evaluating and executing Reckitt’s global

M&Aopportunities

• Competitive scanning activities to identify potential mergers, acquisitions, divestments, joint ventures

orlong-term partnerships

• Corporate Development partners closely with the in-market teams which actively manage the portfolio

tohelp establish clear and prioritised inorganic business development objectives, so the business is focused

on the right targets that will help create long-term value

Link to strategy

Portfolio value creation Product superiority Win in market Fixed cost optimisation

Reckitt Annual Report and Accounts 2024

Strategic report Governance Financial statements Other information

Our Viability Statement

The Board’s Viability Review is based

on the Group’s strategy, its long-term

financial plan and its principal risks.

A financial forecast covering a five-year period

was prepared (the base case). This period

wasselected as it is the period covered in the

Group’s long-term forecasting process, based

on the budget and projections for the following

years and covers the introduction to market of

the current new product pipeline. The period

also covers the majority of Reckitt’s debt

repayment profile.

The financial forecast is based on a number of

key assumptions aligned to the Group’s growth

strategy, planned capital spending and capital

allocation policy. The assessment of viability

takes into account the Group’s cash flow,

itscurrently available banking facilities and

interest cover ratios in relevant financial

covenants, and does not assume the raising

ofadditional new debt or equity finance. If

Reckitt performs in line with the base case

forecasts, it will have sufficient funds to trade,

settle its liabilities as they fall due, remain

compliant with financial covenants and remain

viable. Moreover, the Group has access to

external debt markets on account of its credit

rating together with a well-diversified supplier

network, customer base and product range,

and geographical activities with a strong

innovation pipeline and dividend cover.

Assessment of principal risks

andviability

To further test the robustness of the base case

forecast, further analyses were prepared to

consider the viability of the business in the

event of adverse unexpected circumstances.

Such adverse circumstances were modelled

primarily upon the crystallisation of the Group’s

principal risks (see pages 53-55, including how

we are managing the risk). Principal risks have

the potential to create adverse circumstances

for the Group and can occur individually or in

combination with each other. The assessment

of viability considered the implications of

crystallisation of each principal risk and

estimating the impact on interest cover ratios

and headroom over available borrowing facilities.

These principal risks were aggregated to

create two scenarios, which model plausible

downside scenarios of increasing severity

based on: (i) crystallisation of principal risks

including litigation deemed to have the most

significant potential impact on viability; and

(ii)crystallisation of all principal risks and the

impact of adverse movements in foreign

exchange and interest rates. The principal risks

that were evaluated also include the failure to

address existing and emerging environmental,

social and governance (ESG) and sustainability

risks and the changing societal and stakeholder

expectations of businesses in addressing

these. The Board has also considered the

potential impact of changes to environmental

factors which may affect the business model

and performance in the future, as set out

intheTaskforce on Climate-related Financial

Disclosures (TCFD) statement on pages

218-222. The analysis indicated that even with

unexpected events occurring immediately and

in combination, Reckitt would still have

sufficient funds to trade, settle its liabilities

asthey fall due and remain compliant with

financial covenants.

The Board has further considered the

occurrence of a Black Swan event: an event of

greater adversity than those modelled above,

with sufficient potential impact to risk the

future of Reckitt as a strong and independent

business operating in its chosen markets.

Theoccurrence of a major issue could result

insignificant reputational impact, a substantial

share price fall, significant loss of consumer

confidence and the inability to retain and

recruit quality people. Such an event could

have an impact on the viability of the business.

On the basis of a comprehensive set of

mitigating controls in place across the business,

considering the unknown nature of a Black

Swan event and that its occurrence is

considered highly unlikely, it has not been

included in the Viability Review.

Viability Statement

The Board believes that the Group is well-

positioned to manage its principal risks

successfully. The Board’s belief is based on

consideration of the historic resilience of

Reckitt and has taken account of its current

position and prospects, the actions taken to

manage the Group’s debt profile, risk appetite

and the principal risks facing the business in

unexpected and adverse circumstances.

Mitigating actions, should they be required,

areall within management’s control and

couldinclude reduced capital expenditure or

temporary suspension of dividend payments.

Conclusion

As a result of the Viability Review, the Board

has a reasonable expectation that the Group

will be able to continue in operation and meet

its liabilities as they fall due over the five-year

period covered in the Viability Review.

The Strategic Report, as set out on pages

1-57, has been approved by the Board.

Catheryn O’Rourke

Company Secretary

Reckitt Benckiser Group plc

5 March 2025

THE ASSESSMENT PROCESS AND KEY ASSUMPTIONS

Strategic report Governance Financial statements Other information Reckitt Annual Report and Accounts 2024

Corporate Governance Report

Reckitt is a business taking the

rightlong-term decisions.

Dear shareholder,

On behalf of the Board, I am pleased to present Reckitt’s Corporate

Governance Report for the financial year ended 31 December 2024.

The Board is responsible for the effective leadership of the Group

and for promoting its long-term sustainable success.

The Board provides leadership by setting the Company’s Purpose,

strategy and values, overseeing implementation of the strategy by

management and monitoring culture to ensure its alignment with

our Purpose and values. The Board ensures there are appropriate

processes in place to manage risk and monitors the Company’s

financial and operational performance against objectives.

Board changes

There have been a number of changes to the composition

ofthe Board this year which are summarised below.

I would firstly like to take this opportunity to sincerely thank

ChrisSinclair for his years of service to the Reckitt Board, having

joined the Board in 2015 as a Non-Executive Director and

becoming Chair in May 2018 until he retired at the AGM in May

2024. Throughout his tenure, Chris led with confidence, insight,

integrityand a clear vision.

• At the AGM in May 2024 Pam Kirby stepped down, having

served nine years on the Board

• Alan Stewart also stepped down from the Board at the AGM

inMay

• Jeff Carr retired as CFO in March 2024

• We were sad to learn that Olivier Bohuon passed away in early May

Sir Jeremy Darroch

Chair

I would like to thank each of them for their valuable

contributions to the Reckitt Board during their tenure.

• As notified last year, Mary Harris replaced Alan Stewart as

Chair of the Remuneration Committee and will step down at

this year’s AGM having exceeded nine years’ tenure. Mary is

considered to continue to retain an independence of mind

and to be an effective and valued contributor to the Board.

We are grateful for Mary’s contributions and commitment to

the Board and Committees during her tenure

• Shannon Eisenhardt became CFO in March 2024 following

Jeff’s retirement

• I became Chair and Andrew Bonfield became Senior

Independent Director following the 2024 AGM

• Marybeth Hays joined the Board as a Non-Executive Director

on 1 February 2024

• Fiona Dawson joined the Board as a Non-Executive Director

on 1 June 2024. Fiona will replace Mary Harris as Chair of the

Remuneration Committee following the AGM in May 2025

• Elane Stock took on the role of Designated Non-Executive

Director for Engagement with the Company’s Workforce at

the conclusion of the 2024 AGM

We were pleased to announce in November 2024 the appointment

of Mahesh Madhavan and Stefan Oschmann as Non-Executive

Directors, who joined the Board on 1 January 2025.

I would like to thank the Board, management and all the Reckitt

employees I have met so far for their warm welcome and for

their continued commitment to our Purpose, Compass and

stewardship of the Group.

Sir Jeremy Darroch

Chair

Reckitt Benckiser Group plc

5 March 2025

CHAIR’S INTRODUCTION TO GOVERNANCE

Further details Pages

Board of Directors and Group Executive Committee 60-64

The governance framework and how the Board

monitors culture

65-71

Details of the Board’s activities this year 72-73

How the Board engages with our stakeholders 74-78

The Board effectiveness review report 79-80

Strategic report Governance Financial statements Other information Reckitt Annual Report and Accounts 2024

Q&A

How will the strategic transformation announced in

July 2024 make Reckitt a stronger business?

Following the announcement in July, we have revamped

our strategy to streamline our portfolio and simplify our

organisation. We believe this will improve our

performance and ensure that Reckitt is fit for the future

and will support maximising shareholder value. I am

confident about the plan that has been put in place and

its potential to deliver strong growth and value creation.

What have been your key highlights and challenges

from your first year as Chair?

Being Chair of Reckitt is a great privilege. Helping the

Executive team as they develop a new strategy that

will take the Company forward in the coming years has

been a particular highlight. I’m looking forward to its

implementation and seeing the benefits that will flow

from it come through.

A clear challenge has been the underperformance of the

share price in 2024, which I know has disappointed

everyone. However, we believe we have the right plan in

place now, with a re-structured and refreshed

organisation and the whole business is focused and

working tirelessly to deliver the results that, we believe,

will see our share price recover strongly.

Q. What are your priorities for the Board in 2025?

Supporting the delivery of the new strategy will be the key

priority for 2025, with an initial focus on exiting the Essential

Home portfolio this year and reviewing the potential options

for the Mead Johnson Nutrition business. I also look forward

to continuing to visit the markets in which Reckitt operates

with my fellow Board members to help them enhance their

understanding of the business requirements for 2025 and

beyond. This will be particularly helpful for the induction of

our newest Board members.

CHAIR SITE VISITS

Since becoming Chair, Sir Jeremy has visited various Reckitt sites and a summary is set out below:

Corporate Governance Report continued

Sir Jeremy answers questions on his first year

as Chair.

Sir Jeremy visited a number of Reckitt sites

during the year including sites in Delhi (India),

Hull(UK), and Parsippany (US). Asummary of

the visits to India and Hull are set out below.

Visit to India

Sir Jeremy, Ranjay Radhakrishnan, our Chief HR

Officer and Cathy O’Rourke, Group General

Counsel & Company Secretary, visited the

Reckitt team in India during October.

Members of the India team presented a

review of the Company’s business in India

including anoverview of key financial metrics,

marketing initiatives, competitive insights,

supply chain capabilities, market-specific

innovations, and ESGand climate initiatives.

Sir Jeremy spent time with the sales team

tounderstand the diverse sales landscape

and visited various retailers. Sir Jeremy also

engaged with employees in both small group

settings and during a townhall session.

Visit to Hull

Sir Jeremy visited our Hull site in the UK with

Angela Naef, our Chief R&D Officer, to gain

abetter understanding of our research and

manufacturing capabilities. SirJeremy toured

the site and members ofthe Hull leadership

team provided an overview of the important

work performed on site.

Sir Jeremy also gained valuable insights about

our talent pipeline through meeting with our

degree apprentices and women in science

representatives and learning about the Future

Leadership Scheme available to science,

technology, engineering and mathematics

(STEM) university graduates.

Strategic report Governance Financial statements Other information Reckitt Annual Report and Accounts 2024

Board Leadership

Sir Jeremy Darroch (62)

Chair

Nationality

British

Appointment

Appointed as Senior Independent

Non-Executive Director in November

2022 and became Chair of the Board

and the Nomination Committee in

May 2024.

Skills and experience

Sir Jeremy is an outstanding leader

with considerable expertise in the

consumer retail environment built

upover a successful career at

someof the UK’s most high-profile

companies. He has a proven

trackrecord of driving business

performance and unique insight into

what motivates consumers, bringing

great value to the Board.

Current external appointments

• Non-Executive Director of

TheWalt Disney Company

• Chair of the National

Oceanography Centre

• WWF Ambassador

• Senior Advisor for

TheMultiChoiceGroup

• Executive Advisor for KKR

Kris Licht (48)

Chief Executive Officer

Nationality

Danish

Appointment

Kris joined Reckitt in 2019 and was

appointed as Chief Executive Officer

(CEO) Designate on 1 May 2023,

became an Executive Director on

1June 2023 and took over as CEO

on1 October 2023.

Skills and experience

Kris brings over 20 years of strong

leadership and transformation

experience across consumer health

and consumer goods more broadly,

with a proven track record in

delivering growth and driving

sustained operating performance.

He has in-depth understanding of

our categories and global markets

and played a pivotal role in both

setting the strategic direction of

Reckitt and returning the Health

business to the strong growth

trajectory that it has delivered over

the last four years. Prior to Reckitt

Kris held a number of senior

operational and strategic leadership

roles at PepsiCo.

Current external appointments

• None

Shannon Eisenhardt (50)

Chief Financial Officer

Nationality

American

Appointment

Shannon joined the Board as Chief

Financial Officer (CFO) Designate

on17 October 2023 and took over

asCFO on 31March 2024.

Skills and experience

Shannon brings extensive experience

across consumer and retail, having

worked with some of the most

globally recognised brands, and

animpressive and highly relevant

international background. Shannon

isa proven strategic and operational

leader with a track record of

buildinghighly successful teams

anddelivering strong and

consistentperformance.

Current external appointments

• None

Experienced, diverse and balanced

OUR BOARD

R C

Diverse leadership

Tenure*

Under 3 years: 6

3-6 years: 1

6-9 years: 3

9+ years: 1

Male: 36%

Female: 64%

Gender*

British: 3

American: 3

Irish: 1

British/Dutch: 1

American/British: 1

Danish: 1

Italian/British: 1

Nationality*

* These graphs are based on data as at 31 December 2024

Chair

Nomination

Compliance

Remuneration

Committee key

Audit

Strategic report Governance Financial statements Other information Reckitt Annual Report and Accounts 2024

Mehmood Khan (66)

Non-Executive Director

Nationality

American/British

Appointment

Appointed as a Non-Executive

Director in July 2018. Mehmood is

Chair of the Compliance Committee.

Skills and experience

Mehmood is a highly skilled medical

practitioner and researcher.

Mehmood has been Chief Executive

Officer of Hevolution Foundation

since October 2020. He was

previously CEO of Life Biosciences

Inc., and prior to that served as Vice

Chairman and Chief Scientific

Officer, Global Research and

Development at PepsiCo, Inc.

Current external appointments

• Chief Executive Officer of

Hevolution Foundation

• Executive Chairman of Life

Biosciences Inc.

• Chairman of VCAT, US National

Institute of Standards and

Technology

• Non-Executive Director of the

Saudi Research, Development and

Innovation Authority

• Non-Executive Director of

International Flavors & Fragrances

Board Leadership continued

Andrew Bonfield (62)

Senior Independent Non-Executive

Director

Nationality

British

Appointment

Appointed as a Non-Executive

Director in July 2018 and became

Senior Independent Director in May

2024. Andrew is Chair of the Audit

Committee and a member of the

Nomination Committee.

Skills and experience

Andrew brings more than three

decades of financial expertise to the

Board. He is a strong leader with

experience gained in large, complex

organisations, and has a history of

driving strong financial performance

in the UK and globally. These skills

are valuable to the Board and to his

role as Chair of the Audit Committee.

He is CFO of Caterpillar Inc. and was

Group CFO of National Grid plc, CFO

of Cadbury plc and Executive Vice

President and CFO at Bristol Myers

Squibb.

Current external appointments

• CFO of Caterpillar Inc.

Margherita Della Valle (59)

Non-Executive Director

Nationality

Italian/British

Appointment

Appointed as a Non-Executive

Director in July2020.

Skills and experience

Margherita has extensive experience

of financial markets and digital

technologies. She is deeply

experienced in business in both

developed and developing markets,

bringing great insight to the Board.

These skills, together with her strong

leadership background, are valuable

to the Board and her membership of

the Audit Committee and Nomination

Committee.

Current external appointments

• Chief Executive Officer of Vodafone

Group Plc

• Non-Executive Director of

BocconiUniversity

Mary Harris (58)

Non-Executive Director

Nationality

Dutch/British

Appointment

Appointed as a Non-Executive

Director in February 2015. Mary is also

Chair of the Remuneration

Committee.

Skills and experience

Mary has substantial experience

inconsumer and retail businesses

across China, Southeast Asia and

Europe. She brings to the Board a

top-level strategic outlook with an

international and consumer focus.

Her previous experience in other

non-executive director roles is

invaluable to the Board and to

chairing the Remuneration

Committee.

Current external appointments

• Non-Executive Director and

member of the Remuneration and

Nomination Committees of

Coca-Cola Europacific Partners plc

• Supervisory Director of HAL

Holding N.V.

• Member of the INSEAD Corporate

Governance Council

Tamara Ingram, OBE (64)

Non-Executive Director

Nationality

British

Appointment

Appointed as a Non-Executive

Director in February 2023.

Skills and experience

Tamara is an outstanding leader

withconsiderable expertise in global

marketing services, and has led

renowned marketing campaigns for

household brands around the world.

Current external appointments

• Non-Executive Director of Marks

and Spencer Group plc

• Non-Executive Director of Intertek

Group plc

• Non-Executive Director of Marsh

&McLennan Companies, Inc.

• Chair of Asthma and Lung UK

• Chair of 10 Group

• Deputy Chair of Ofcom

Strategic report Governance Financial statements Other information Reckitt Annual Report and Accounts 2024

Mahesh Madhavan (62)

Non-Executive Director

Nationality

Indian

Appointment

Appointed as Non-Executive

Director in January 2025 and is a

member of the Remuneration

Committee.

Skills and experience

Mahesh is CEO of Bacardi and joined

in 1997, where he held several

regional leadership roles before

being promoted to CEO in 2017. He

has successfully led the company’s

growth and transformation,

providing stability, a clear strategy,

and a dynamic culture for

organisational success. Previously,

Mahesh held various roles at

International Distillers & Vintners,

FCD Draft Advertising and Wipro

Consumer Products.

Current external appointments

• Chief Executive Officer of

Bacardi Limited

• Non-Executive Director of

CapriHoldings

Stefan Oschmann (67)

Non-Executive Director

Nationality

German

Appointment

Appointed as Non-Executive

Director in January 2025

andisamember of the

Compliance Committee.

Skills and experience

Stefan Oschmann is the former CEO

and Chair of Merck KGaA which he

joined in 2011 and became CEO and

Chair of Merck between 2016 and

2021. Prior to that Stefan spent

30years at Merck & Co in various

leadership roles. Stefan brings strong

transformational experience in

science, healthcare and technology.

Current external appointments

• Non-Executive Director of Stamm

• Non-Executive Director of

European Healthcare Acquisition

& Growth

• Non-Executive Director of

Springer Nature

• Chair of AiCuris Anti-Infective

Cures

Board Leadership continued

Elane Stock (60)

Non-Executive Director

Nationality

American

Appointment

Appointed as a Non-Executive

Director in September 2018. Elane

was appointed as Designated NED

for Engagement with the Company’s

Workforce in May 2024.

Skills and experience

Elane brings great sector-relevant

experience and insight of consumer

goods products to the Board,

particularly in personal care and

wellness. She also brings key

knowledge of emerging markets

andthe changing channels of trade

and consumer preferences.

Current external appointments

• Director of Fomento Economico

Mexicano SAB de CV

Marybeth Hays (56)

Non-Executive Director

Nationality

American

Appointment

Appointed as a Non-Executive

Director in February 2024.

Skills and experience

Marybeth has considerable expertise

in merchandising, marketing and

omnichannel, gained from 25 years

of general management experience

across global retail, healthcare and

consumer goods businesses,

including at Walmart.

Current external appointments

• Non-Executive Director of

Decowraps

• Non-Executive Director of

Leapfrog Brands

• Non-Executive Director of AMS

Retail Solutions

Fiona Dawson, CBE (58)

Non-Executive Director

Nationality

Irish

Appointment

Appointed as Non-Executive Director

in June 2024 and Chair Designate

forthe Remuneration Committee.

Skills and experience

Fiona was previously Global President

Food, Drinks and Multisales at Mars, Inc.

In May 2021, Fiona was awarded a CBE

for services to women and the

economy. She is President of the

Chartered Management Institute,

aTrustee with the Social Mobility

Foundation, and was previously Chair

of the Women’s Business Council.

Current external appointments

• Non-Executive Director of LEGO A/S

• Non-Executive Director of Marks

and Spencer Group plc

• Non-Executive Director

ofKerryGroup PLC

Director changes during the year

Chris Sinclair Non-Executive Director from February 2015 and Chair of the Board from May 2018 until he retired from the Board in May 2024.

Pam Kirby Non-Executive Director from February 2015 until she retired from the Board in May 2024.

Alan Stewart Non-Executive Director from February 2022 and Chair of the Remuneration Committee from May 2022 until he retired

from the Board in May 2024.

Olivier Bohuon Non-Executive Director from January 2021 until his death in May 2024.

Jeff Carr Chief Financial Officer and Executive Director from April 2020 until his retirement in March 2024.

The two members in the grey boxes above joined the Board on 1 January 2025

Strategic report Governance Financial statements Other information Reckitt Annual Report and Accounts 2024

Susan Sholtis (58)

President Nutrition

Nationality

American

Key skills and experience

Susan joined Reckitt as

President Nutrition in July

2023. Susan has a deep

knowledge of the Nutrition

business, having previously

worked for over 11 years at

Mead Johnson Nutrition and

Reckitt in a number of senior

leadership roles in the US and

Europe, including general

management, marketing

andsales.

Ranjay Radhakrishnan (54)

Chief Human Resources Officer

Nationality

British

Key skills and experience

Ranjay joined Reckitt as Chief

Human Resources Officer in

March 2020. Ranjay has over

30 years’ experience in the

human resources function

across different geographies

and industries. Prior to joining

Reckitt, Ranjay was the Chief

Human Resources Officer at

InterContinental Hotels Group

plc and spent over two

decades at Unilever in senior

leadership roles.

Angela Naef, PhD (49)

Chief R&D Officer

Nationality

American

Key skills and experience

Angela joined Reckitt as Chief

R&D Officer in September

2020 and is responsible for

elevating Reckitt’s science

capability and platforms as

well as for driving external

partnerships. She is focused

on enabling the R&D

organisation to deliver

meaningful solutions

addressing the mega

trendsand sustainability

todeliver growth.

Senior Leadership

GROUP EXECUTIVE

COMMITTEE

Kris Licht (48)

Chief Executive Officer

Shannon Eisenhardt (50)

Chief Financial Officer

Experienced, diverse and balanced

Group Executive Committee changes during the year

Reason for change

Jeff Carr Chief Financial Officer who joined Reckitt in

April 2020 and retired in March 2024.

Volker Kuhn President Hygiene who joined Reckitt in August

2020 and left in December 2024.

Pat Sly President Health who joined Reckitt in July 2017

and left in December 2024.

Sami Naffakh Chief Supply Officer who joined Reckitt in July

2020 and left in July 2024.

Filippo Catalano Chief Information and Digitisation Officer

whojoined Reckitt in April 2021 and left

inOctober 2024.

Fabrice Beaulieu Chief Marketing, Sustainability and Corporate

Affairs Officer who joined Reckitt in 1999 and

left in December 2024.

For biography see page 60

Catheryn O’Rourke (52)

General Counsel &

CompanySecretary

Nationality

American

Key skills and experience

Catheryn joined Reckitt

inFebruary 2022 and

isresponsible for legal

andcompliance matters

across theGroup. She brings

to Reckitt more than 20 years

of professional expertise

inrunning global legal

andcompliance teams,

managing litigation and

corporate transactions,

advising on financial reporting

anddisclosure and supporting

boardgovernance.

Strategic report Governance Financial statements Other information Reckitt Annual Report and Accounts 2024

Senior Leadership continued

Ryan Dullea (47)

Chief Category Growth Officer

Nationality

American

Key skills and experience

Ryan joined Reckitt in 2019.

Withhis Reckitt and previous

experiences, Ryan brings a

comprehensive understanding

ofour consumers and categories

across multiple geographies

having lived and worked in Asia,

Europe and North America.

Hiscareer spans over 25 years,

during which he has gained

ablend of experiences in

consulting,marketing, and sales

with companies like P&G and

Accenture. Ryan has worked

across all aspects of the value

creation process from upstream

innovation all the way through to

general management and sales.

Jérôme Lemaire (51)

President North America

Nationality

French

Key skills and experience

Jérôme joined Reckitt in 1998.

Hehas broad experience in

seniorleadership roles in general

management and marketing

across North America, the

UnitedKingdom, Australia

andtheNetherlands.

Eric Gilliot (58)

President Europe

Nationality

French

Key skills and experience

Eric has been at Reckitt for

26years. Since joining Reckitt

in1998,Eric has held various

leadership positions across

severalglobal markets.

In 2020, he was appointed

ChiefCustomer Officer

International and SVP Global

Salesand in October 2022,

hewasappointed EVP

NorthAmerica, Hygiene.

Nitish Kapoor (56)

President Emerging Markets

Nationality

Indian

Key skills and experience

Nitish joined Reckitt in India as

aManagement Trainee in 1993.

Over three decades he has

worked in India, the US, Europe

and Africa in sales, marketing,

global category and general

management roles.

Nitish was appointed EVP Global

Health categories in 2020 and

EVPof the Fuel for Growth

transformation programme

in2023.

The four members in the grey boxes above joined the Group Executive Committee on 1 January 2025

Harald Emberger (59)

Chief Supply Officer

Nationality

German

Key skills and experience

Harald joined Reckitt as Chief Supply

Officer in July 2024 and is responsible

for Reckitt’s end-to-end supply chain

operations, procurement, and the

Health & Safety and Corporate

Security functions.

Harald is a seasoned supply executive

who has led multiple large scale

supply chain transformation efforts.

He brings many years of supply chain

leadership across all regions of the

globe and has held senior leadership

roles at Beiersdorf AG, Unilever

andMars.

Strategic report Governance Financial statements Other information Reckitt Annual Report and Accounts 2024

Reckitt’s Approach to Governance

COMPLIANCE WITH THE CODE

Compliance with the UK Corporate

Governance Code

For the year ended 31 December 2024, the

Company complied with all the principles

andprovisions of the UK Corporate Governance

Code 2018 (the Code) and the Disclosure

Guidance and Transparency Rules requirements

to provide a corporate governance statement.

Pages 58-138 of this report form our

Corporate Governance Statement. Details

ofhow the principles of theCode have been

applied can be found throughout this report,

the Strategic report, and the Committee

reports as set out below.

The Board has received an update in relation

tothe changes to the Code following the

publication of the UK Corporate Governance

Code 2024 and intends to be compliant with

allthe new relevant provisions within the

timeframes indicated. The Board has carried

out an evaluation of the changes required

inthe reporting requirements.

How we comply with the Code

Pages

1. Board leadership and Company Purpose

Promoting the long-term, sustainable success of the Company 1-57

Purpose, values and culture 8-9, 71

Strategic priorities and objectives 10-16

Stakeholder engagement 74-77

Workforce engagement 9, 74

2. Division of responsibilities

Role of Chair, Non-Executive Directors and Group Company Secretary 67-68

Board composition 60-62

3. Composition, succession and evaluation

Appointments to the Board and succession planning 81-84

Balanced Board 60-62, 85

Board performance 79-80

4. Audit, risk and internal control

Audit Committee Report 86-93

Principal risks and uncertainties 52-56

5. Remuneration

Directors’ Remuneration Committee Report 96-133

Board skills as at 31 December 2024

CEO experience

Health and pharmaceuticals

Consumer goods

Transformation and strategy

Financial expertise

Management and leadership experience

UK-listed companies

Marketing and digital

Remuneration and culture experience

ESG (including climate)

Governance and compliance

Strategic report Governance Financial statements Other information Reckitt Annual Report and Accounts 2024

Reckitt’s Approach to Governance continued

Board roles and responsibilities

The Board is responsible for the effective

leadership of the Group and for promoting

itslong-term sustainable success, generating

value for shareholders and contributing to

wider society, whilst focusing on governance

with the highest regard to the principles of the

Code. The Board provides leadership by setting

our Purpose, strategy and values, monitoring

our culture and ensuring alignment with our

Purpose and Compass, and overseeing

implementation by management. All Directors

must act with integrity, lead by example and

promote the Company’s culture and values.

The Board also ensures there are appropriate

processes in place to manage risk, including

the Company’s risk appetite, and monitors

financial and operational performance against

objectives. The Board consists of a balance

ofExecutive and Non-Executive Directors

whotogether have collective accountability to

Reckitt’s shareholders as well as responsibility

for the overriding strategic, financial and

operational objectives and direction of Reckitt.

The Board manages the overall leadership

ofthe Group with reference to its formal

Schedule of Matters Reserved for the Board.

This schedule is reviewed annually, with the

last review undertaken in November 2024,

andbroadly covers:

• Matters which are legally required to be

considered or decided by the Board, such

asapproval of Reckitt’s Annual Report

andFinancial Statements, declaration of

dividends and appointment of new Directors

• Matters recommended by the Code

tobeconsidered by the Board, such as

termsofreference for the Board and its

Committees, review of internal controls

andrisk management

• Compliance with regulations governing UK

publicly listed companies, such as the UK

Listing Rules, the Disclosure Guidance and

Transparency Rules and the Prospectus

Regulation Rules

• Matters relating to developments in, or

changes to, the Group’s strategic direction,

or material corporate or financial transactions

The full Schedule of Matters Reserved for the

Board is available on the Reckitt website at

www.reckitt.com/investors/corporate-governance.

Risk management and internal controls

The Board has overall responsibility for internal

controls and risk management along with

compliance with the Code and the Financial

Reporting Council’s (FRC) Guidance on Risk

Management, Internal Control and Related

Financial and Business Reporting. The sectors

and environment within which Reckitt operates

are dynamic and fast-moving, and in some

areas, highly regulated, and so controls are

keptunder review.

On an ongoing basis, the Board reviews the

effectiveness of the Group’s risk management

and internal control system, including through

monitoring reports from management on

itsassessment of risks and internal control

systems, assurance received from

management regarding compliance with

relevant policies, and assurance received on

the effectiveness of the Company’s internal

control environment. In addition, the Board

reviews reports from the Audit Committee, the

Internal Audit function and the External Auditor,

and the Company’s response to incidents and

threats, including those relating to cyber

security and safety.

The Audit Committee, on behalf of the Board,

oversees the Group’s overall Risk Management

Framework, and the effectiveness of internal

controls and monitors Reckitt’s compliance

with the requirements of the Code in respect

of risk management and internal controls. The

Audit Committee monitored the key elements

of the Group’s internal controls framework

throughout the year and conducted an annual

review of the effectiveness of Reckitt’s system

of risk management and internal control in

respect of 2024, which covered all material

controls, including financial, operational and

compliance controls. The Audit Committee’s

annual review was supported by a report

prepared by the Internal Audit function on the

Group’s risk management and internal controls.

The Audit Committee Report can be found on

pages 86–93.

Principal risks and risk appetite

As part of our risk management process,

weregularly evaluate risks related to achieving

our objectives and the likelihood of such risks

materialising and impacting the ability of the

Group to cope with the circumstances should

they occur. In doing so, we are inherently

considering our risk appetite through the

actions taken, controls implemented and

processes followed to reduce the likelihood

ofrisk events taking place, mitigating the

potential impact and ensuring that the cost

ofdoing so is proportionate to the benefit

gained. Each principal and emerging risk

isoverseen by the Board, or a designated

Committee of the Board, and is subject to

formal deep dive reviews as appropriate

atBoard and GEC meetings.

During the year, the Directors undertook

arobust assessment of the principal and

emerging risks facing the Group, including

those that could threaten our business model,

future performance, solvency and liquidity.

The Group’s principal and emerging risks

andmitigating actions are detailed on

pages52-56.

Climate-related risk and environmental

social and governance (ESG) matters

The Board oversees, considers and reviews

theGroup’s ESG strategy and has oversight

ofthe climate-related risks and opportunities.

As part of the Board’s twice yearly review of

the principal and emerging risks, sustainability

was considered. The Board’s focus included

both ESG performance and reporting. More

information on our Sustainability Ambitions

canbe found on page 38. The Viability

Statement on page 57 provides further

disclosure on climate and ESG related risk

matters. Our Climate-Related Financial

Disclosures can be found on pages 218-222.

Strategic report Governance Financial statements Other information Reckitt Annual Report and Accounts 2024

How We Are Governed

Board roles and responsibilities

To ensure the Board performs effectively, thereis a clear

division of responsibilities, setout in writing and agreed by the

Board, between the leadership of the Board and the Executive

leadership of the business. The key roles are defined in greater

detail on the following pages.

A full description of the roles and responsibilities of the

Chair,CEOand SeniorIndependent Director can be

foundonourwebsite:

www.reckitt.com/investors/corporate-governance

Managing time commitment and ‘overboarding’

On appointment, Non-Executive Directors are made aware of

theneed to, and are required to confirm that they will, allocate

sufficient time to their role to discharge their responsibilities

effectively. They are also required to seek agreement from the

Chair before taking on additional commitments and to declare any

actual or potential conflicts of interest. Non-Executive Directors are

engaged under the terms of a letter of appointment. Initial terms

of appointment are for three years with three months’ notice, with

all Directors standing for election or re-election at every AGM.

TheBoard has reviewed the length of service of each Director

andconsiders that each Non-Executive Director standing for

re-election or election at this year’s AGM is independent.

As noted in last year’s report, following the retirement of Alan

Stewart from the Board at the 2024 AGM, to provide continuity

in relation to the Remuneration Committee, Mary Harris the

former Chair of the Remuneration Committee was reappointed

to the role for a fixed term of one year between the 2024 and

2025 AGM, to enable a smooth transition when the role moves

to Fiona Dawson. Mary will retire at this year’s AGM and will not

put herself forward for re-election.

The Board is confident that each Director individually has the

expertise and relevant experience required to perform the role

ofa Director of a listed company and to contribute effectively

tothe Board and Committees to which they are appointed.

TheCompany recognises the developmental advantages of

anexternal non-executive role on a non-competitor board and

Executive Directors are permitted to seek such a role, provided

that they do not take on more than one non-executive directorship

in, nor become the Chair of, a FTSE 100 company.

Neither Kris Licht or Shannon Eisenhardt hold any external

directorships at the date of this report.

• Leading the Board and taking responsibility

for the Board’s overall effectiveness in

directing the Company

• Upholding the highest standards of integrity

and ethical leadership, leading byexample

and promoting aculture of openness and

debate, based on mutual respect, both in and

outside the boardroom and in line withour

Purpose, values, strategy and culture

• Chairing Board, Nomination Committee

andshareholder meetings and setting

Board agendas

• Encouraging constructive challenge and

facilitating effective communication between

the Board, management, shareholders and

wider stakeholders

• Ensuring an appropriate balance is

maintained between the interests of

shareholders and other stakeholders

• Leading the annual effectiveness review

process for the Board and its Committees

and addressing any subsequent actions

• Promoting the highest standards of

corporate governance

• Building a well-balanced, diverse and highly

effective Board

• Ensuring Directors receive accurate, timely

and clear information

• Ensuring there are appropriate induction

and development programmes for all

Boardmembers

• Ensuring the long-term sustainability

oftheCompany

The Chair

• Acting as a sounding board for the Chair on

Board-related matters

• Acting as an intermediary for other

Directors as necessary

• Evaluating the Chair’s performance on an

annual basis

• Chairing Board and Nomination Committee

meetings in the absence of the Chair

• Being available to shareholders and

stakeholders to address any concerns that

they have been unable to resolve through

normal channels

• Leading the search and appointment

process for a new Chair, when necessary

The Senior Independent Director

• Principally responsible for the day-to-day

management of Reckitt, in line with the

strategic, financial and operational

objectives set by the Board

• Chair of the GEC, consisting of the CEO, the

CFO and senior management executives,

who together are responsible for execution

of the Company’s strategy and achieving

its commercial aims

• Effective development and implementation

of strategy and commercial objectives as

agreed by the Board

• Maintaining relationships with investors and

advising the Board accordingly

• Managing Reckitt’s risk profile and

establishing effective internal controls

• Ensuring there are effective communication

flows to the Board and the Chair, and that

they are regularly updated on key matters,

including progress on delivering strategic

objectives

• Regularly reviewing the organisational

structure, developing a Group Executive

team and planning for succession

• Providing clear leadership to promote

thedesired culture, values and

behaviourstoinspire and support

theCompany’s workforce

• Ensuring the long-term sustainability

ofthebusiness

The Chief Executive Officer

Strategic report Governance Financial statements Other information Reckitt Annual Report and Accounts 2024

Board Roles and Responsibilities

Board support

The General Counsel & Company Secretary is responsible for

organising Board meetings, as well as collating any papers for

the Board to review and consider. Board and Committee papers

are accessible to all Directors through a secure and confidential

electronic document storage facility. This facility is maintained

by Reckitt’s Secretariat function and additionally holds other

information which the Chair, the CEO or the General Counsel &

Company Secretary may deem useful to the Directors, such as

press releases and pertinent Company information.

All Directors have individual access to advice from the General

Counsel & Company Secretary and a procedure exists for

Directors to take independent professional advice at the

Company’s expense in furtherance of their duties.

• Overseeing the Board’s engagement

with the Company’s workforce,

together with management, to

understand more about engagement

and the culture of the Company

• Developing and implementing

employee engagement initiatives

• Providing an employee voice in the

boardroom and reporting on matters

relating to Company culture, purpose

and improvements

Designated Non-Executive Director for Engagement with the Company’s Workforce

• Supporting the CEO in

developingand implementing

theCompany’sstrategy

• Leading the global finance function

and developing key talent and

planning for succession

• Responsible for establishing and

maintaining adequate internal

controls over financial reporting and

for the preparation and integrity of

financial reporting

• Ensuring the Board receives

accurate, timely and clear

information in respect of the Group’s

financial performance and position

• Developing and recommending the

long-term strategic and financial plan

The Chief Financial Officer

• Providing advice and support to the

Chair and all Directors

• Advising and keeping the Board

uptodate on all relevant legal and

governance requirements and

ensuring the Company is compliant

• Ensuring the Board receives high

quality, timely information in advance

of Board meetings to ensure

effective discussion

• Facilitating an induction programme

for all Board members Ensuring there

are policies and processes in place to

help the Board function efficiently

and effectively

• Keeping abreast of shareholders’ views

The Company Secretary

• Providing independent input into

Board decisions through constructive

challenge and debate, strategic

guidance and specialist experience

• Setting and approving the

Company’s long-term strategic,

financial and operational goals

• Examining the day-to-day

management of the business against

the performance targets and

objectives set, ensuring that

management is held to account

• Reviewing financial information

andensuring it is complete, accurate

and transparent

• Ensuring there are effective systems

of internal control and risk

management and that these are

continually monitored and reviewed

• Setting appropriate levels of

remuneration for Executive

Directorsand ensuring performance

targets are closely aligned with

shareholder interests

• Development of succession planning

and the appointment and removal

ofsenior management

• Taking into account and responding

to shareholders’ views

Non-Executive Directors

Strategic report Governance Financial statements Other information Reckitt Annual Report and Accounts 2024

Governance Framework

Our Board

The Board is collectively responsible for the overall leadership of the Group and for promoting its long-term sustainable success whilst focusing on its strategic

direction, Purpose, values and governance with the highest regard to the principles of the Code. There is a clear division of responsibilities between the Board,

itsCommittees and Management Committees.

Shareholders

Our shareholders are the ultimate owners of the Company and play an important role in the governance structure. Further information on our engagement with

shareholders can be found on pages 36 and 76.

Responsible for making

recommendations to the Board

onsuitable candidates for

appointment to the Board,

itsCommittees and senior

management and to regularly

review and refresh their

composition to ensure that they

comprise a diverse group of

individuals with the necessary

skills, knowledge and experience

to effectively discharge their

responsibilities.

Nomination Committee

Chaired by Sir Jeremy Darroch

Responsible for monitoring the

integrity of Reckitt’s Financial

Statements and ensuring

effective functioning of internal

audit, internal controls and risk

management. It is also

responsible for managing the

Company’s relationship with its

External Auditor.

Audit Committee

Chaired by Andrew Bonfield

Responsible for assisting the

Board in fulfilling its oversight

responsibility by ensuring that the

Remuneration Policy and

practices reward fairly and

responsibly, are linked to

corporate and individual

performance and take account of

the generally accepted principles

of good governance. The

Committee is responsible for

determining the remuneration for

theChair, Executive Directors and

senior management.

Remuneration Committee

Chaired by Mary Harris

Responsible for supporting the

Board in reviewing, monitoring and

assessing the Company’s approach

to ethical and compliant corporate

conduct and to assist the Board in

upholding its Compass.

Compliance Committee

Chaired by Mehmood Khan

Disclosure

Committee

Chaired by CFO

Responsible for ensuring

accuracy and timeliness

ofdisclosure of financial

and other public

announcements.

Group Executive Committee

Chaired by CEO

Responsible for overseeing Reckitt’s management and ensuring

collaboration between functions and in-market operations.

Itrecommends and implements the strategy and related budget

as approved by the Board. The GEC drives business and cultural

transformation, reviews business performance and approves

business development plans and major investments. It plays

acritical role in talent management and development

andoversees the integration ofsustainability within

businessoperations.

Group Compliance Committee

Chaired by CEO

Provides oversight of risk across the organisation

andmakes recommendations to the Compliance

Committee for actions to be taken in respect of the

Group’s legal compliance and ethics, product quality,

consumer safety and regulatory matters, including

compliance strategies, policies, programmes and

keyactivities.

Read more on page 81 Read more on page 94Read more on page 96Read more on page 86

The Company has a clear and effective

governance structure, which allows the Board,

its Committees and the Executive team to

make decisions effectively. The Board has

established four Committees to assist in the

execution of its responsibilities. Each

Committee operates under terms of reference

approved by the Board. The terms of reference

are reviewed regularly, with the last review

taking place in November 2024. There are also

three supporting Management Committees:

the Disclosure Committee, the Group Executive

Committee (GEC), and the Group Compliance

Committee (GCC).

Strategic report Governance Financial statements Other information Reckitt Annual Report and Accounts 2024

Board Audit

Committee

Compliance

Committee

Nomination

Committee

Remuneration

Committee

5 4 4 2 5

Meetings Meetings Meetings Meetings Meetings

Sir Jeremy Darroch

5/5 2/2 5/5

Kris Licht

5/5 4/4

Shannon Eisenhardt

5/5

Andrew Bonfield

5/5 4/4 2/2

Margherita Della Valle

5/5 3/4 1/1

Marybeth Hays

5/5 2/2 3/3

Mary Harris

5/5 5/5

Tamara Ingram

5/5 4/4

Mehmood Khan

5/5 3/4

Elane Stock

5/5 4/4

Fiona Dawson

3/3 3/3

Olivier Bohuon

1/2 1/2 1/1

Pam Kirby

2/2 2/2 2/2 1/1

Chris Sinclair

2/2 2/2 1/1 1/1

Alan Stewart

2/2 1/1 1/1

Jeff Carr

1/1

Where a Director is unavoidably absent from a Board or Committee meeting, they still receive

and review the papers for the meeting and may provide verbal or written input ahead of the

meeting, usually through the Chair of the Board or the Chair of the relevant Committee, so

that their views are considered at the meeting.

1 Olivier Bohuon: Non-Executive Director from January 2021 until his death in May 2024

2 Pam Kirby: Non-Executive Director from February 2015 until she retired from the Board in May 2024

3 Chris Sinclair: Non-Executive Director from February 2015 and Chair of the Board from May 2018 until he retired from the Board in May 2024

4 Alan Stewart: Non-Executive Director from February 2022 and Chair of the Remuneration Committee from May 2022 until he retired from the

Board in May 2024

5 Jeff Carr: Chief Financial Officer and Executive Director from April 2020 until his retirement in March 2024

Governance Framework continued

How we manage conflicts of interest

Directors have a duty to avoid interests, direct

or indirect, which might conflict with the

interests of the Group. Under the terms of our

Articles, such conflicts can be authorised by

the Board. Procedures are in place to manage

and, where appropriate, approve such conflicts.

Any authorisations granted by the Board are

recorded by the General Counsel & Company

Secretary in a Register of Conflicts, together

with the date on which the conflict was

authorised. Any conflicts authorised during the

year are reviewed annually by the Nomination

Committee and the Board. In addition, each

Director certifies on an annual basis that the

information contained in the Register of

Conflicts is correct.

The Company indemnifies the Directors and

Officers of the Company and any Group

subsidiary to the extent permitted by law in

respect of the legal defence costs for claims

against them and third-party liabilities. The

indemnity would not provide cover for a

Director or Officer if that individual was found

to have acted fraudulently or dishonestly.

Directors’ and Officers’ liability insurance cover

was maintained throughout the year at the

Company’s expense.

How Board meetings are structured

Board meetings are conducted in an open

atmosphere conducive to challenge and

debate. Agendas are tailored to the

requirements of the business and agreed

inadvance by the Chair and CEO with

thesupport of the General Counsel &

CompanySecretary.

The Board receives operating and financial

reports from the CEO and CFO on strategic

and business developments, as well as financial

performance and forecasts at each meeting.

Specific presentations are also made by

non-Board members on material matters to

theGroup. In addition, the Chairs of the Audit,

Remuneration, Compliance and Nomination

Committees update the Board on the

proceedings of those meetings, including

keytopics and areas of concern.

At the conclusion of every scheduled Board

meeting, the Chair holds a session with the

other Non-Executive Directors, without the

Executive Directors present, providing further

opportunity for the Non-Executive Directors

toassess the performance of management

and individual Executive Directors and help

drive future agenda items.

The Board uses its meetings as a way of

discharging its responsibilities, including as

setout in section 172 of Companies Act 2006,

to promote the success of the Company

forthe benefit of its members as a whole.

Furtherinformation can be found on page 78.

Board and Committee meeting

attendance

In 2024, there were five scheduled

Boardmeetings.

The table opposite sets out the attendance by

Directors at scheduled Board and Committee

meetings that each Director was eligible to

attend. Directors who were not members of

individual Board Committees were also invited

to attend one or more meetings of those

Committees during the year.

Strategic report Governance Financial statements Other information Reckitt Annual Report and Accounts 2024

Our people and culture

Reckitt is rooted in a culture that is purpose

driven, innovative and entrepreneurial. Our

Leadership Behaviours unite us through a

shared ambition to Own, to Create, to Deliver

and, above all, to Care about the outcomes we

deliver. Doing the right thing, always, is at the

centre of our Compass, which guides our

business and the Leadership Behaviours that

drive our success. Our people are what makes

Reckitt unique. They believe in and are inspired

by our Purpose. Over the last five years, we

have established deep cultural foundations that

empower our people as the key value drivers

of our business. We defined our Leadership

Behaviours to place a greater emphasis on care

as we serve the needs of all our stakeholders.

We elevated the importance of teamwork in

delivering outcomes and protecting against

the pursuit of results at any cost. More

information on our culture can be found on

pages 8-9 of the Strategic Report.

How the Board monitors culture

A key focus of the Board is to monitor and

support culture and ensure alignment across

our Purpose, values, and behaviours. Our

culture and values at Reckitt are defined by the

Board and the GEC. We are evolving a vibrant,

inclusive and collaborative culture to deliver on

our Purpose. By embedding inclusivity, all

colleagues should feel free to participate fully,

bring their authentic selves to work and realise

their full potential. Regular interactions with

employees help the Board monitor culture and

are detailed in the table opposite.

Purpose and Culture

How we monitor culture Board interactions and engagement to monitor culture throughout the year

Connecting directly

with employees

Board members meet with employees regularly. In her role as Designated NED for

Engagement with the Company’s Workforce, Elane Stock attended meetings with

various employee groups throughout the year, where employees were able to speak

directly with her. The Board received feedback from Elane on these discussions.

Further information on Elane’s role as Designated NED for Engagement with the

Company’s Workforce can be found on page 74.

Creating a forum for

employees to be

heard

ERGs are employee networks that aim to raise the visibility of underrepresented

communities. They provide a space for colleagues to connect and support each

other and are also represented on the Global Inclusion Board. In addition, throughout

the year, Elane Stock has maintained regular engagement with various employee

groups, including the ERGs.

Ensuring employees

are informed

Quarterly all-employee global live-streaming results are broadcast held by the CEO,

CFO and Group Executive Committee members to present our financial results and

employees are invited to ask questions and interact directly with presenters.

Staying informed of

legal and compliance

matters

At each Board meeting, the Compliance Committee Chair reports to the Board on

legal compliance and ethics matters, including the Group’s Speak Up programme,

which provides safe communication channels for employees wishing to raise

concerns on potential violations of regulations, internal policies or any misconduct

observed at Reckitt. A deep dive was also provided to the Audit Committee during

the year in relation to the results and action plan following the investigation in the

Middle East between the end of 2023 and first half of 2024. More details can be

found within the Audit Committee report on page 90.

Maintaining open

communications

Following the strategy update announced in July 2024 the CEO broadcast a live

all-employee update on the new strategy and the plans for the future. This

broadcast gave employees the opportunity to ask questions and further updates

have been provided to employees on the company intranet ‘Rubi’.

PURPOSE, COMPASS AND

LEADERSHIP BEHAVIOURS

Own

Deliver

CreateCare

Do the

right thing.

Always.

Our Purpose

We exist to

PROTECT,

HEAL AND NURTURE

in the pursuit of a cleaner

andhealthier world

Our Compass and

Leadership Behaviours

Strategic report Governance Financial statements Other information Reckitt Annual Report and Accounts 2024

Board Activities

Information flow Outcomes, benefits and considerations

Strategy Links to stakeholders

Group plans and budgets

• Reviewed the Group’s financial plan for 2025

• Reviewed and approved the 3 year plan

• Reviewed forecasts and business performance

Strategy

• Discussed and approved the new strategy and received regular updates

on progress

• During the November 2024 meeting, Board members discussed the

progress on the new strategy and the innovation pipeline for 2025

• Received updates on competitive environment and broader

marketdevelopments

• Received an update from the Chief Supply Officer

Mergers and acquisitions

• Oversight of potential merger and acquisitions (M&A) activities and

portfolio strategy

Business updates

• Reviewed the business performance in the markets

• Deep dives on functions such as Finance, HR, Supply, IT & Digital

andCyberSecurity

Governance and oversight Links to stakeholders

Board and Committee

performance review

• Conducted the annual internal 2024 Board effectiveness review and had

oversight of Committee performance reviews

• Identified areas for improvement and recommended actions for 2025

• Considered and proactively addressed actions from the 2023 Board

effectiveness review

• Reviewed and approved the external evaluator for the 2025 external

Boardeffectiveness review

2024 BOARD ACTIVITIES

Information flow Outcomes, benefits and considerations

Governance and oversight continued Links to stakeholders

Talent, succession and

Board composition

• Oversight of Group talent planning and succession, including senior

management succession and retention

• Update on the new structure following the strategy update and change

inroles for the senior management team across the Group

• Considered and approved Board changes, including succession planning

and the appointment of new Non-Executive Directors as detailed on

pages 62, 81-85

Shareholders and

stakeholders

• Reviewed and approved the 2024 Notice of AGM

• Held the 2024 AGM in person. Shareholders had the opportunity to

pre-submit questions as well as ask the Board questions during the

meeting alongside voting on the proposed resolutions

• Held Board and employee engagement meetings, to understand

employee views

• The Designated Non-Executive Director provided regular updates to the

Board on engagement activities. More details can be found on page 71

Legal and Compliance

• Reviewed and approved governance matters, such as the Schedule of

Matters Reserved for the Board, roles of Chair, CEO and SID, Committee

terms of reference, Directors’ conflicts of interest and compliance with the

Code and best practice

• Reviewed and approved the updated share dealing policy and code

• Kept abreast of upcoming changes in the UK corporate governance and

regulatory framework

• Approved Reckitt’s 2023 Modern Slavery and Human Trafficking Statement

• Received updates and discussed litigation matters including product

liability actions related to Necrotizing Enterocolitis

Customers

People

Partners

Communities

Link to stakeholders

Governments, and

industry associations

Consumers

Shareholders

Strategic report Governance Financial statements Other information Reckitt Annual Report and Accounts 2024

Information flow Outcomes, benefits and considerations

ESG Links to stakeholders

ESG

• Reviewed the Group’s sustainability strategy and approach, including

progress against the delivery of our Sustainability Ambitions

• Received updates on sustainability activities and initiatives

• Undertook a deep dive on ESG and climate change

Risk management and internal controls Links to stakeholders

Principal and Emerging

Risks

• Conducted an annual review of Reckitt’s principal and emerging risks and

consideration of risk management approach

• Reviewed the appropriateness and effectiveness of the system of

internal control and risk management

• Received an update on Artificial Intelligence which included an overview

of the Company’s governance framework relating to the acceptable use

of AI

• Undertook a deep dive on Cyber Security

Financial Links to stakeholders

Reporting

• Reviewed and approved Reckitt’s Annual Report and Financial

Statements including compliance with reporting requirements

• Reviewed and approved Reckitt’s full-year, half-year and quarterly results

• Provided results presentations to investors and employees during the year

• Reviewed and approved the announcement in relation to the

strategyupdate

Going concern

• Reviewed long-term going concern and liquidity considerations

• Considered and approved the 2023 Annual Report Viability Statement

upon recommendation of the Audit Committee

Financial resources

• Reviewed the Company’s financial position, Group debt and funding

arrangements and capital allocation

• Approved a bond issuance

• Approved continuation of the share buyback programme

• Approved the final 2023 and interim 2024 dividend payments

Treasury policies

• Reviewed and approved the Group’s Treasury policies

Board Activities continued

Strategic report Governance Financial statements Other information Reckitt Annual Report and Accounts 2024

Maintaining the Trust of Stakeholders

Understanding the needs

andexpectations ofour stakeholders

is fundamental to ourPurpose.

Our business can only grow and prosper

byacting in the long-term interests of our

consumers and customers, our people,

oursuppliers, our investors and shareholders,

and the communities in which we operate.

Our commitment to ‘Do the right thing. Always’

guides us in acting responsibly and with

integrity, putting people first, seeking out new

opportunities, striving for excellence and

building shared success with our stakeholders.

For us, high standards of corporate governance

and incorporating stakeholder voices into our

decision making are central to maintaining that

integrity and trust, and strengthen our

long-term relationships.

Our people

Our colleagues collectively help fulfil

our Purpose to protect, heal and

nurture in the pursuit of a cleaner,

healthier world.

We believe in nurturing a workplace that

supports and encourages all colleagues to

thrive. The talent, skills, experience and values

our colleagues bring and continuously develop

strengthen our organisation.

We engage to build strong relationships with

our people, ensuring an understanding of

Reckitt’s strategic direction and the role that

every one of us plays in contributing to our

collective success.

In turn, we strive to provide an inclusive,

fulfilling and high-performing workplace where

everyone has the Freedom to Succeed.

How we engage

Group

• Internal communications tools are used to

inform, build connection and enable

collaboration across the business. Our goal is

to support two-way communication and

dialogue with our people and there are a

number of key mechanisms that enable this

• Regular global townhalls and broadcasts for

all employees, hosted by the CEO and Group

Executive Committee (GEC), including

live-streamed Q&As plus supporting market

and function-specific townhalls

• Targeted communications by function

focused on building strategic alignment,

excellence in execution, collaboration and

building functional capabilities

• Employee Resource Groups (ERGs) which

provide a space for colleagues to connect

and support each other and share views with

the business through regular touchpoints

• Informal forums, focus groups and listening

sessions with leaders

• A regular news feed provided through our

intranet, Rubi, supported by informal

channels for colleagues to share updates,

insights and news

• Throughout 2024, we have informed, consulted

and engaged with our people and local works

councils and trades unions on the proposed

changes to our organisation, where relevant

and in line with local guidance and legislation

Board

• Elane Stock, our Designated Non-Executive

Director for Employee with the Company’s

Workforce, maintains regular engagement

with various employee groups, including the

Group’s ERGs

• Various Board members visited Reckitt sites

throughout the year to engage directly with

employees, including Parsippany and

Montvale in the US, Hull and Slough in the UK,

and Delhi in India

• The Board’s Compliance Committee receives

updates on employee concerns raised

through Speak Up and ensures proper

follow-up and action, as appropriate

• The Board reviewed and provided input on

proposed changes to the performance

evaluation and talent development

processes to ensure they are aligned with

Reckitt’s strategy, build critical organisational

capabilities, and provide equitable growth

opportunities to all employees

2024 outcomes of engagement

• During the year, we hosted two global townhalls

focused on strategy, performance and results.

Our half-year update, which focused on the

strategic direction of the business, had the

highest number of live attendees plus

subsequent views of the live event recording,

and received over 400 questions

• Following the half-year strategic update, a

colleague ‘Strategy Hub’ was introduced

specifically to provide regular updates on

developments, with organisational changes

reflected in a new look platform from January

2025. The bespoke hub received over 34,000

total views

• In 2025 a new continuous listening strategy will

be introduced, providing further opportunity

for colleagues to give timely feedback

The Designated Non-Executive Director

for Engagement with the Company’s

Workforce is Elane Stock who was

appointed to the role following the AGM

inMay 2024.

This role follows an agreed plan of

workwhich builds on existing channels

ofcommunication and fosters new

engagement opportunities. It facilitates

and complements full-Board engagement

activities by strengthening the depth of

employee sentiment and representing

relevant concerns within discussions

anddecision making

Since taking over the role in May,

I’ve had the opportunity to meet

with many of Reckitt’s employees

across the world. These

discussions have provided me

with a wide range of views and I

have enjoyed the variety of

conversations I’ve had with the

teams I’ve met. I have shared the

views and insights with the Board

to ensure they are meaningful

inputs into our decisions. I am

looking forward to continued

engagement in 2025.

Strategic report Governance Financial statements Other information Reckitt Annual Report and Accounts 2024

Maintaining the Trust of Stakeholders continued

Our consumers

Putting consumers and people first is

a guiding principle for our business.

Our consumers want products that are safe,

effective and provide value for money.

Increasingly, they also want reassurance that the

products they trust are responsibly sourced,

with consideration and care for the people who

make them and for natural resources.

Consumer insight drives our innovation

programme, helping us to provide trusted,

quality products that help meet consumers’

health, hygiene and nutritional needs.

By reaching more people in more places, we

grow our business and increase our impact. We

do that by gaining and retaining people’s trust.

How we engage

Group and Board

• Our products are chosen by millions of

consumers each day and we collect

consumer insights through our sales teams,

supply chain partners, customer and

consumer teams. Most of our products are

sold through our retail customers who

provide us with feedback on consumer

priorities (see more in Customers on the

right of this page)

• Our sensory and consumer science labs

combine this insight and feedback with

behavioural analytics to develop superior

solutions grounded in science

• Through our brands, we work to forge

emotional connections with our consumers

by delivering products and solutions that

meet their needs and reflect their values

• The Board benefits from consumer insights

inmaking category growth decisions

2024 outcomes of engagement

• Based on consumer insights, during the year

we developed and launched our new Vanish

Oxi Action formula, Durex Basic HA, Lysol Air

Sanitizer, Mucinex Mighty Chews and Nurofen

sustained release

• We continued our multi-year Nurofen ‘See My

Pain’ campaign highlighting the Gender Pain

Gap and our Finish ‘Skip My Rinse’ campaign

in the US

• Our brand certifications such as Cradle

toCradle and Fair Rubber, qualify our

products within Amazon’s Climate

PledgeFriendly programme, and continue

tosupport consumers in making more

sustainable choices

Our customers

Our partnerships with our retail

customers and distributors are the way in

which consumers access ourproducts.

Aside from the merchandising opportunities

they provide, retailers also offer us vital

feedback on evolving consumer priorities and

patterns of demand. This informs our product

and service innovation programmes and helps

us to better meet consumers’ needs.

We aim to build strong and successful

customer relationships and partnerships

founded on common purpose that ultimately

help us to grow our business.

In turn, we aim to exceed our customers’

expectations through successful innovation,

efficient execution and high-quality products

and service that help our customers to grow

their own businesses.

How we engage

Group

• In 2024 we welcomed a new Chief Customer

Officer for the Group, based in North

America, focused on customer engagement,

delivering profitable results and accelerating

sales growth through execution excellence

• Customer relationships are coordinated

globally, regionally or nationally through our

customer service and sales teams. Joint

meetings and workshops are used to define

and build shared objectives, both commercial

and non-financial, agree strategy and action

plans, performance and growth metrics

• We develop joint sustainability business

plans with many of our customers to help

deliver on collective goals such as plastics

and packaging reduction and emissions

avoidance. Operationally, we provide

ongoing support through our category,

shopper, sustainability, channel and format,

and regional specialists

• In support of proposed changes to Reckitt, our

CEO contacted our global customers and our

sales team colleagues were provided with

bespoke materials to engage customers on

the changes and what it will mean for them

Board

• The Board recognises the importance of

understanding our customers and we

continue to strengthen our Board capability

in this area with the recent appointments of

Fiona Dawson and Mahesh Madhavan

2024 outcomes of engagement

• Reckitt achieved Giga Guru status within

Walmart’s supply chain initiative, Project

Gigaton, which aims to avoid one gigatonne

of GHG emissions by 2030. This recognition

demonstrates environmental leadership

among Walmart suppliers, a commitment

toinnovation, and successful emissions

reduction

• Together with Tesco in the UK, we continued

to work to enhance the availability of self care

and wellness ranges in store, accompanied by

an increase in in-store literacy to support

consumer choice in key categories

• Reckitt won the Australian Packaging

Covenant Organisation (APCO) education

award for our work in developing and

leveraging sustainability packaging data

across our organisation and the broader

industry and a reduced cost to serve

Strategic report Governance Financial statements Other information Reckitt Annual Report and Accounts 2024

Maintaining the Trust of Stakeholders continued

Our suppliers and partners

Maintaining long-term relationships

with suppliers and partners helps us

to protect business continuity, drive

innovation and deliver our

Sustainability Ambitions.

Ensuring our supplier relationships are founded

on high standards helps us to drive progress

across the value chain. From ensuring the fair

treatment of workers, to reducing carbon

emissions and water use, and protecting local

ecosystems and nature, our engagement is

helping to build resilience and maximise

opportunities for all.

Insights from across the value chain help us to

understand long-term trends, build action

programmes, guide innovation and develop

expertise and capabilities to meet future

challenges in partnership with our suppliers.

How we engage

Group

• We host regional supplier capability-building

events in partnership with industry peers,

where local suppliers are invited to attend

and share best practice on salient topics

• We have centralised more supplier

relationships and procurement activity to

monitor supplier performance and enable

best practice sharing

• We conduct regular supplier audits based on

past performance and risk. Where needed,

we work with suppliers through our

capability building programme to help

improve processes and raise standards

• We engage with healthcare practitioners

internationally to exchange information, share

best clinical practice and sponsor research.

We also contribute our expertise to

professional journals, international

symposiums and congresses

• In support of proposed changes to Reckitt,

our CEO contacted our global suppliers and

partners and our procurement team was

provided with bespoke materials to support

their engagement with individual partners

Board

• The Board receives briefings from the Supply

function on our key supplier relationships,

including in the context of progress against

our wider supply strategy

2024 outcomes of engagement

• During the year, we developed new Supplier

Sustainability Standards which include nine

targets covering emissions, renewable

energy, water reduction and waste. To

support this engagement and our

procurement activity, we developed a range

of tools and resources including a buyer

guide and playbook

• In addition, Reckitt is a member of the

Sustainable Markets Initiative Health Systems

Taskforce, which brings together leading

voices from across the health sector, with

the aim of accelerating the delivery of net

zero, patient-centric health systems. The

Taskforce aligned on joint, minimum climate

and sustainability targets for health sector

suppliers, to address emissions across the

value chain

Our investors

Investors provide financial capital in

the form of equity and debt, which

underpins our business and enables

us to execute our strategy. In return,

investors expect attractive returns

through capital appreciation,

dividends, share buybacks or interest.

Our investment community includes current

shareholders and prospective investors, mainly

institutional and retail, as well as sell-side

research analysts, investment and financing

banks and ratings agencies. Many of our

employees form part of this shareholder

community too.

Our Investor Relations activities promote an

open, consistent and transparent dialogue with

these stakeholders, aiming to inform investors

and market participants of key attributes of our

financial performance and strategy.

How we engage

Group and Board

• We communicate our financial results

through management presentations to

analysts and institutional investors

• We communicate our financial results at our

Annual General Meeting to retail investors

• Post results, our CEO and CFO roadshows

meet with top shareholders and prospective

investors to discuss our latest financial

performance and address their questions

• Management and our Investor Relations

teamattend investor conferences

throughout the year to communicate

ourmost recent financial results and

reiterateour company strategy

• We hold ad hoc meetings with investors and

sell-side analysts to address any strategy,

operational, Environmental, Social and

Governance (ESG) and modelling queries

• We host a number of additional investor

engagement events, including investor days,

brokerage sales desk presentations and

credit investor updates

• Our Group Head of Sustainability participated

in a number of ESG investment panels in

2024, as well as engaging with investors on

sustainability-related topics through

individual meetings

2024 outcomes of engagement

• Our CEO Kris Licht, set out actions to reshape

Reckitt as a world-class consumer health

and hygiene organisation at our Strategy

Update in July alongside our H1 2024 results

• The Strategy Update reinforced Reckitt’s

value creation principles and their role in

defining our focus on a sharper portfolio

ofmarket-leading Powerbrands, as well as

communicating the simpler, more effective

organisational structure that will deliver

themto our customers and consumers

Strategic report Governance Financial statements Other information Reckitt Annual Report and Accounts 2024

Maintaining the Trust of Stakeholders continued

Communities

From the markets we support with

our products to those at the heart of

where we operate and source our

ingredients, the communities across

our value chain are critical to our goal

to make a positive impact.

Our community focus is linked to our Purpose

and areas where we can make the biggest

impact: access to clean water, hygiene and

sanitation for all; championing sexual and

reproductive healthcare and rights;

strengthening maternal and child healthcare;

and improving access to healthcare and

self-care.

With engaged and empowered communities,

we benefit from long-term market growth and

resilient supply chains, while advancing access

to the highest-quality hygiene, wellness and

nourishment.

How we engage

Group and Board

• Together with our partners, we use our

expertise and global reach to drive

measurable and sustainable impact in

communities aligned with our commitment

to a cleaner, healthier world and our focus on

achieving a fairer society, while advancing

the UN Sustainable Development Goals

• We accelerate social entrepreneurship

withexpert partners, including Yunus Social

Business and Health Innovation Exchange,

bymentoring, funding and scaling

thesebusinesses

• We leverage innovative finance and impact

investments like Water Equity’s Fund IV and

Watercredit micro-finance loans to help provide

lasting access to clean water and sanitation

• We drive behaviour change at scale through

our leading brands; for example, through

Dettol’s Hygiene Quest, a gamified school

programme that educates millions of

students each year

• We work with suppliers and communities in

our supply network through partners such as

Earthworm Foundation, to manage our supply

networks, promote sustainable livelihoods,

and protect local ecosystems and habitats

• The Board receives updates on and monitors

our Fight for Access Fund and other social

impact initiatives

2024 outcomes of engagement

• In September, we announced our latest

$5million investment into WaterEquity’s

impact funds, supporting climate-resilient

infrastructure

• In collaboration with local partners, through

commercial incentives and investment in

training and capacity building, rubber

farmers in our latex supply chain have

reduced their costs, built resilience and

improved their incomes, leading to wider

community benefits

Governments, NGOs, industry and academia

We engage with public policy makers

to protect and strengthen our

reputation and influence policy and

regulatory development.

We also work with civil society and NGOs on

areas of common interest to identify

opportunities where collective action can

make an impact at scale.

We work with universities and industry groups

to support new innovation and process

development. In turn, these forums provide

valuable research, insights and feedback to

further strengthen our approach and help

shape wider industry action.

How we engage

Group and Board

• We engage regularly with national and

international policy makers, governments

andregulatory agencies, through formal

policy consultation processes and ongoing

bilateral engagement

• With NGOs: through global partnership

programmes with Water.org and our

WWFpartnership, and through local

supplychain partnerships such as with

Earthworm Foundation

• With industry peers: through trade

associations including the International

Association for Soaps, Detergents and

Maintenance products (AISE), via the

WorldBusiness Council for Sustainable

Development (WBCSD) and the Consumer

Goods Forum (CGF)

• Reckitt is part of the Sustainable Markets

Initiative Health Systems Taskforce, a

public-private partnership accelerating

thedelivery of net zero healthcare

• We work with the Nature-based Insetting

team, a spin-off from the University of Oxford,

to help us understand and measure our

impact on biodiversity in key supply chains,

and the University of York on PhDs to support

green chemistry and product resilience

• We collaborate with governments on

specific programs to improve access to

health and hygiene. For example, with the

Nigerian government we work with Reckitt

Clean Naija flagship initiative with the Federal

Ministry of Water as a multi-level campaign

to create effective public health campaigns,

awareness, educate, and drive behavioural

change for national health promotion and

disease prevention

2024 outcomes of engagement

• The UK Parliament’s Women and Equalities

Committee’s report on Women’s

reproductive health conditions endorsed

Nurofen’s ‘See My Pain’ campaign and called

on the National Health Service to urgently

implement a training programme to improve

the experience of treatment and diagnosis

inprimary care for women

• ‘Oh Yes! Net Zero’ was showcased at the

international Smart City Expo in Barcelona,

alongside other globally significant climate

action initiatives. It was highlighted as a

business-led example of a city driving action

to combat climate change

Strategic report Governance Financial statements Other information Reckitt Annual Report and Accounts 2024

Section 172 Statement

This statement shows how our Directors

have acted in a way that they consider, in

good faith, would be most likely to

promote the success of the Company for

the benefit of its members as a whole

during 2024, having regard to stakeholders,

including matters under Section 172(1)

(a)-(f) of the Companies Act 2006.

Effective engagement with our shareholders,

employees, and wider stakeholders is key to

Reckitt’s sustainable success. In our decision-making,

we consider what will most likely promote the

long-term success of the Company for its

shareholders, while also taking into account the

interests of other stakeholders. Understanding their

needs and expectations is fundamental to our

Purpose: to protect, heal, and nurture in the

relentless pursuit ofacleaner and healthier world.

We recognise that our business can only growand

prosper by acting in the long-term interests of our key

stakeholders, namely our people, our consumers and

customers, our shareholders, investors and partners,

the communities in which we operate, governments,

NGOs, industry and academia we engage with, and

the environment. Examples of how the Directors have

oversight of stakeholder matters and had regard for

these matters when making decisions are included

throughout this AnnualReport.

The Board considers our key stakeholders and the

matters set out under Section 172 of the Companies

Act 2006 in its discussions and decision-making. The

following table sets out examples of how the Board

has considered matters under section 172 during the

year in performing its duties.

EFFECTIVE ENGAGEMENT WITH OUR STAKEHOLDERS

Section 172 (a)-(f) additional disclosures Pages

A: Likely consequence of any

decisions in the long term

Chair’s Statement and Chief Executive Officer’s Statement 4-7

Value creation and strategic priorities 10-16

Key performance indicators and our value creation model 10-15, 37

Section 172 Statement, Board activities and governance 58-138

Risk management 52-56

B: Interests of our employees Key performance indicators 37

Stakeholder engagement 74-77

Nomination Committee Report 81-85

Directors’ Remuneration Report 96-133

Directors’ Report 134-137

People and culture 8-9

C: The need to foster relationships

with suppliers, customers and

others

Chair’s Statement and Chief Executive Officer’s Statement 4-7

Value creation and strategic priorities 10-16

Key performance indicators and our value creation model 10-15, 37

Risk management 52-56

Stakeholder engagement 74-77

D: The impact of our operations on

the community and environment

Value creation and strategic priorities 10-16

Sustainability performance dashboard and sustainability performance review 38, 45-51

Stakeholder engagement 74-77

Section 172 Statement and Board activity 78, 72-73

Sustainability performance review

Climate-related financial disclosures

Non-financial and sustainability information statement

38, 45-51

218-222

E: The desirability of the Company to

maintain a reputation for high

standards of business conduct

Purpose, compass and Leadership Behaviours, and our value creation model 8-15, 71

Reckitt’s approach to governance 65

Purpose, values and compass; how the Board monitors culture 8-15, 71

Section 172 Statement and Board activities 78, 72-73

F: The need to act fairly between

members of the Company

Strategic priorities and key performance indicators 16, 37

Section 172 Statement and Board activities 78, 72-73

Stakeholder engagement 74-77

Strategic report Governance Financial statements Other information Reckitt Annual Report and Accounts 2024

BOARD PERFORMANCE REVIEW AND EFFECTIVENESS

The Board undertakes an annual

reviewof its own and its Committees’

performance and effectiveness,

withaformal externally facilitated

review of the Board conducted at

least every three years.

Since 2020, Lintstock has facilitated both our

internal and external reviews, which included a

three-year Board Development Programme.

This year, Lintstock was asked to oversee the

internal review process while our new Chair

completed his induction and observed a full

annual cycle.

We plan to conduct an external review in 2025

and during the year a tender process was

undertaken to appoint an external evaluator for

the 2025 review. A summary of the process is

set out on the following pages.

Lintstock is independent of and has no other

links with the Company or its Directors in

connection with the effectiveness review.

For this year’s internal review, the Company

followed the CGI ‘Principles of Good Practice

for listed companies using external Board

reviewers’ principles. Lintstock have confirmed

they followed the CGI Code of Practice

forreviewers’. Lintstock were given the

opportunity to review this section of the

AnnualReport and provide input and

commenton the disclosures.

2023 recommendations Action taken during 2024

Board succession

planning

There were a number of

changes to the Board

including the Chair, CEO,

CFO and Non-Executive

Directors and a focus on

effective transition of

these roles was required.

During 2024 there was a clear plan in place for

the transition of the Chair, CEO and CFO roles

and through the Nomination Committee, the

Board maintained a strong focus on continued

renewal with the appointments of Marybeth Hays

in February 2024, Fiona Dawson in June 2024

andStefan Oschmann and Mahesh Madhavan

being appointed to the Board in January 2025.

Allbring broad and relevant experience to the

Reckitt Board.

Review of the CRSEC

Committee

The breadth of the CRSEC

Committee was raised as

an area of focus for 2024.

As announced in June 2024, a review of the CRSECC

took place following the AGM. Mehmood Khan took

over the role of Chair and it was agreed by the Board

to align the Committee to our Principal Risks related

to product regulation, product quality and safety,

andlegal and compliance which has allowed the

Committee to focus on these critical areas, along

with the compliance culture at the Company. ESG

and sustainability matters have returned to the

remitof the Board. Given the change in scope,

theCommittee has been renamed the

ComplianceCommittee.

Review of senior leaders

andtalent

The strength of the senior

team, ability to attract and

retain talent, and the

incentive structure were

raised as areas for review

in 2024.

The Board carry out an annual review of key

talent which took place at the November

meeting and this included a review of the

changes in members of the Executive Committee

and their direct reports to support the new

strategy. As detailed within the People & Culture

section on pages 8-9, we are continuing to

strengthen our culture through changes to

performance management, talent and reward.

This includes expanded participation in our

LongTerm Incentive Plan to introduce a

longer-term element of reward to balance

in-yearperformance.

Findings and progress from the 2023

external performance review

2024 Board performance review process

1. Design of questionnaire

3. Results and actions

A session took place with Lintstock and the Chair to discuss

the proposed process for the 2024 internal review.

It was agreed to adopt a concise questionnaire, focusing

onthe strategy changes announced and the Board changes

made since the last review.

Lintstock collated the responses and produced a Board

evaluation report which was shared with the Chair for review

ahead of including in the November Board meeting pack.

The finalised report of findings was provided to the Board

which was discussed. Actions for the year ahead were

agreed - see the next page for a summary.

2. Evaluation methodology

The questionnaire was sent to each Board and Board

Committee member and structured around the topics of:

• Board composition and dynamics, stakeholder oversight,

Board support.

• Management and focus of meetings, Board Committees,

Strategic oversight, Risk management, People oversight,

Priorities for change.

• Separate questionnaires were sent to each Director

relating to the performance of the Chair and to review

their individual performance.

Strategic report Governance Financial statements Other information Reckitt Annual Report and Accounts 2024

Board Performance Review and Effectiveness continued

2025 external Board evaluator tender process

July 2024 October 2024

November 2024

January 2025

The Company Secretary proposed a list of

potential providers to the Chair and agreed to

request proposals from those providers.

Individual meetings were held with the

Company Secretary and external providers to

determine their cultural fit, style of review

and independence.

A summary of the process and a

recommendation to the Board for the

preferred evaluator was discussed at the

November Board meeting. The Board

approved the recommendation to appoint

Clare Chalmers as the preferred evaluator

forthe 2025 external effectiveness review.

A meeting was held with Clare Chalmers

tocommence the preparation work for the

external effectiveness review which will take

place in 2025 and the results will be shared

inthe 2025 Annual Report.

2024 review findings and actions

Findings Actions

Continued focus on Board succession planning. Diversity of experience will continue to be a focus in 2025

forthe Nomination Committee as we continue with the

orderly planning of Board succession.

As announced in November 2024, we have appointed

StefanOschmann and Mahesh Madhavan to the Board

aswecontinue to enhance the Board. Both bring broad

anddiverse experience to Reckitt.

Developing Board skills further in 2025. It was agreed at the November 2024 Board meeting to build

in additional listening sessions throughout 2025 and this will

also include a number of site visits. This will enable the Board

to continue to broaden its understanding of the business and

enhance its knowledge and skills around sustainability,

technology and AI.

Board Committees

Each Board Committee was highly rated and confirmed as

delivering effective support to the Board.

Individual Committee actions were reviewed and agreed by

each Committee Chair at the November Committee meetings

and further details are set out in the Committee reports.

Individual Director performance

Individual Director performance and contribution were

assessed through one-to-one meetings with the Chair.

These sessions allowed reflection on personal development

and discussion of matters relevant to boardroom culture and

process. The findings, in combination with the individual skills,

time commitment and independence assessments, confirmed

each Director continues to contribute positively.

Chair performance

The performance of the Chair was evaluated by the Senior

Independent Director based on individual feedback and a

discussion was held without the Chair present at the end

ofthe November Board meeting.

The discussion concluded that the Chair had made a

goodstart and had devoted considerable time to getting

abetter understanding of the business so he could chair

theBoard effectively.

Strategic report Governance Financial statements Other information Reckitt Annual Report and Accounts 2024

Committee priorities in 2024

• Support for Chair transition from

ChrisSinclair to Sir Jeremy Darroch

• Transition of Remuneration Committee Chair

and Compliance Committee Chair following

the AGM in May 2024

• The induction of Marybeth Hays and Fiona

Dawson as new Non-Executive Directors

• Continued succession planning for theBoard

and senior management roles andupdated

Committee memberships inJune2024

Committee membership

Members of the Committee are appointed by

the Board. Membership of the Committee is

reviewed at least annually and was reviewed

following the 2024 AGM with changes announced

on 19 June 2024. The members include the

Chair and certain independent Non-Executive

Directors. An additional review took place as

part of the annual performance review of the

Committee in November. In accordance with

the principles of the Code, the Committee is

made up of a majority of independent

Non-Executive Directors. The General Counsel

& Company Secretary acted as Secretary to

the Committee during the year.

All Directors are required to seek election or

re-election each year at the AGM. Biographical

details of the Directors, including their skills and

experience, can be found on pages 60-62.

Role and responsibilities

The role of the Committee, as set out in the

Committee’s terms of reference, is to ensure

that there is a formal, rigorous and transparent

procedure for the appointment of new

Directors to the Board and to lead the process

for Board appointments.

NOMINATION COMMITTEE REPORT

The Committee’s focus has continued to be onBoard and

senior management succession, ensuring that we have the

right people in place to support Reckitt’s strategic aims.

Sir Jeremy Darroch

Chair of the Nomination Committee

The Nomination Committee has principal

responsibility for making recommendations to

the Board on new appointments and on the

composition of the Board and its Committees.

The Committee also assists the Board in

succession planning for senior management.

Further details on the Committee’s role and

responsibilities can be found below and in its

terms of reference, available at www.reckitt.

com/investors/corporate-governance.

Board composition

The Committee regularly reviews the

composition of the Board and its Committees,

considering the balance of skills, experience,

and how effectively Directors work together

toachieve Reckitt’sobjectives.

Non-Executive Directors are initially appointed

for a three-year term and generally continue to

serve one or more further terms. All Directors

are nominated for appointment by the

Committee, which is subsequently approved

by the Board.

As previously announced, Marybeth Hays was

appointed as a Non-Executive Director, with

effect from 1 February 2024, and Fiona Dawson

was appointed as a Non-Executive Director

with effect from 1June2024. A Q&A with

Marybeth and Fiona on their views and

observations since joining Reckitt is set out on

page 83.

In November 2024 we announced the

appointment of Stefan Oschmann and Mahesh

Madhavan as Non-Executive Directors with

effect from 1 January 2025. Biographical details

can be found on page 62.

Member

Scheduled meetings

attended

Sir Jeremy Darroch (Chair) Member for the whole year

and Chair from May 2024 2/2

Andrew Bonfield Member for the whole year 2/2

Margherita Della Valle Member from June 2024 1/1

Chris Sinclair Chair and member until May 2024 1/1

Alan Stewart Member until May 2024 1/1

Pam Kirby Member until May 2024 1/1

Strategic report Governance Financial statements Other information Reckitt Annual Report and Accounts 2024

Nomination Committee Report continued

The Committee used Korn Ferry for

theappointments of Marybeth Hays and

FionaDawson and MWM Consulting for

theappointments of Mahesh Madhavan

andStefanOschmann. Neither Korn Ferry

norMWMConsulting have any other

connectionwith individual Directors.

As previously announced, in March 2024, JeffCarr

retired from the Board andShannon Eisenhardt

became CFO. Following the AGM inMay 2024,

ChrisSinclair, Pam Kirby and Alan Stewart all

retired from the Board, Sir Jeremy Darroch

became Chair of the Board and the Nomination

Committee, Mary Harris became Chair of the

Remuneration Committee andMehmood Khan

became Chair of the CRSECCommittee.

We reported the sad death of Olivier Bohuon

inearlyMay 2024, who had been a member of

the Board since January 2021. His insight and

open demeanour will be missed by the Board.

Director tenure and independence was

reviewed as part of the annual Board review

and it was concluded that each Non-Executive

Director remained independent.

In accordance with the Code, all existing

Directors will stand for election or re-election at

the AGM, with the exception of Mary Harris who

has already notified her intention not tostand

for re-election at the AGM, having exceeded her

nine-year term. The Board considers Mary to

beindependent for the purposes of the Code

as, inthe Board’s view, she continues to be

independent in character and judgement

notwithstanding her length of service.

The Committee recommends that all existing

Board members have their appointments

renewed. Resolutions to this effect will be

proposed to shareholders for approval at

theforthcoming AGM.

Details of the specific contributions each Director

makes to Reckitt’s long-term success are set out

in the Notice of AGM, available atwww.reckitt.

com/investors/annual-general-meetings.

Succession planning

The Committee regularly reviews and monitors

the Board’s structure, size and composition,

including the balance of skills, experience,

independence, knowledge and diversity

required, and makes recommendations to

theBoard of any changes deemed necessary.

Consideration is given to the length of serviceof

the Board as a whole and Directors individually.

Inaddition, the Committee keepsthe leadership

needs of the Company under review, including

senior management positions,ensuring plans

arein place for orderly succession, so that the

Company can continue to compete effectively

inthe markets in which it operates.

Key objectives for the year ahead

• Continue succession planning for the

Board and senior management roles

andkeep Committee memberships

underreview

• Induction of Mahesh Madhavan and

Stefan Oschmann who joined as

independent Non-Executive Directors

inJanuary 2025

• Support the transition of the

Remuneration Committee Chair from

Mary Harris to Fiona Dawson following

the 2025 AGM

Succession planning

• Non-Executive Director

succession: the Committee

met to review and then

approve its

recommendation to

theBoard to appoint

Marybeth Hays

Succession planning

• Committee and Designated

NED for engagement with

the Company’s Workforce

changes discussed and

agreed ahead of the AGM

• Chair succession and NED

succession discussed and

agreed ahead of the AGM

• The appointment of Fiona

Dawson as a Non-Executive

Director was discussed

andthen approved for

recommendation to

theBoard

Succession planning

• Non-Executive Director

succession in relation to

potential appointments

wasdiscussed

Succession planning

• The appointment of Mahesh Madhavan and Stefan

Oschmann as Non-Executive Directors was discussed and

then approved for recommendation to the Board

• Update on succession planning generally

• Discussed the Board effectiveness review feedback in

relation to the Committee

• Annual review and recommendation for approval to the

Board of the terms of reference of the Committee

• External evaluator tender review and approval of proposed

2025 evaluator

• Annual review of potential conflicts of interest

Meetings of the Committee

are held as needed but are

required to take place at

least once a year. In 2024,

the Committee held two

scheduled meetings and

two additional meetings.

Meetings take place ahead

of Board meetings and the

Chair of the Committee

reports formally to the

Board on its proceedings.

Details of the activities

undertaken across the four

meetings held are set out in

the adjacent section.

January February September November

Key activities during 2024

Strategic report Governance Financial statements Other information Reckitt Annual Report and Accounts 2024

Q&A

Marybeth Hays and Fiona Dawson

joined the Board during 2024 and

provided some thoughts and

reflections following their

appointment.

What drew you to Reckitt and how

has your experience been to date?

MH. I was absolutely delighted to

receive a call about the Reckitt

opportunity. As an EVP Merchandising at

Walmart US, I knew of Reckitt’s excellent

reputation among my merchant team

inconsumables, health and wellness.

Asa former brand executive, I am drawn

to the power of the brand portfolio.

Some of my earliest memories include

Lysol - my mother would not travel

without it! As a former expat (China),

Ifind the complexity of a global

businessinvigorating!

FD. Having worked for 34 years with

some of the world’s best-loved brands,

Ihave always admired Reckitt’s strong

portfolio of leading products, which are

trusted household names all over the

world. Coupled with that I was drawn

tothe breadth of the business and enjoy

working with the challenges and

opportunities of a global consumer

packaged goods organisation.

From a Board perspective, it has been

an extremely interesting time to join,

with the portfolio evolution to focus on

high-growth, high-margin ‘Powerbrands’.

I have really admired the team’s strategic

clarity and focus in executing on this.

What have been your key highlights

and challenges in your first year?

MH. Supporting Kris and his team on our

portfolio restructuring. This will set us up

for unprecedented growth in the future.

As a former merchant and brand

marketer, I approach strategy through a

product and customer lens. I would like

to learn more about the new product

pipeline, our customers (retailers and

distributors) and consumers.

I am very keen on manufacturing and

supply chain - to ensure product

availability but more importantly,

product quality and safety. I plan

tovisitsome factories this year.

FD. From a business perspective, we

have a big year ahead as the newly

shaped Company lands. My priority will

be to provide the necessary support

and relevant challenge to the team to

help ensure the successful execution

ofour strategy. During this period, I look

forward to getting even closer to the

business, meeting more people and

visiting sites to further experience

theCompany first hand.

I am also looking forward to taking

overas Chair of the Remuneration

Committee from Mary Harris who has

been utterly brilliant in her onboarding of

me to the Committee and very generous

with her time. I look forward to following

her lead in ensuring we have a balance of

pay for performance, shareholder returns

and strategic alignment.

Marybeth Hays

Non-Executive Director

Fiona Dawson, CBE

Non-Executive Director

What are your views

on Reckitt’s culture?

MH. Reckitt has a can-do, highly

entrepreneurial yet humble culture that

is well suited for the enormous changes

in the world today.

Reckitt does not take time to

restonitslaurels and believes

incontinualimprovement.

FD. I had always believed Reckitt’s culture

was hard working, results focused and

ambitious, and whilst that was certainly

the case when I met the Executive team,

Ialso experienced a culture that was very

people centric, transparent, and enabling.

A culture where people are encouraged

to reach their full potential and to do the

right thing.

As the ‘newbie’ I felt very welcomed

tothe Board from day one, and there

isreal respect around the table for

thevast experience different Board

members bring, leading to diversity

ofthought and breakthrough thinking.

Ihave certainly learnt a lot from the

Reckitt team and my fellow Board

members and look forward to continue

doing so over the coming years.

Nomination Committee Report continued

Strategic report Governance Financial statements Other information Reckitt Annual Report and Accounts 2024

Nomination Committee Report continued

The Committee considers Board renewal on an

ongoing basis and makes recommendations to

the Board regarding proposed appointments.

The Committee is also responsible for making

recommendations for the role of Senior

Independent Director and proposes the

membership and the role of Chair for each

ofthe Board Committees.

Induction programmes

New Directors receive a tailored induction

programme on appointment to the Board

tosuit their individual experience and

background. The induction programme

generally includes meetings with the other

Board Directors, the General Counsel &

Company Secretary and GEC members on

aone-to-one basis, along with meeting some

ofour key external advisors. The meetings

areheld in person or virtually.

New Directors may also carry out market visits

and attend key Reckitt sites to enhance their

induction to the Company.

Board Directors’ ongoing training

anddevelopment

The Chair has overall responsibility for ensuring

that all the Directors receive suitable training to

enable them to carry out their duties. As part

of their role, Directors are also expected to

personally identify any additional training

requirements they feel would benefit them in

performing their duties. We arrange ongoing

training including on legal and financial

regulatory developments relevant to the

Company and the Directors.

Training is also provided by way of briefing

papers or presentations at scheduled Board

meetings, as well as meetings with senior

executives or external sources. The Directors

may, at the Company’s expense, take

independent professional advice and are

encouraged to continually update their

professional skills and knowledge of the

business and wider industry.

During the year, training materials have been

made available for Board members to view.

Wealso aim to provide Directors an opportunity

to engage directly with employees and key

personnel and be immersed in the business.

GEC changes

The GEC changes during the year reflect the

alignment of our leaders with Reckitt’s new

strategic priorities and growth opportunities.

As we announced in July as part of our

strategic update, we welcomed the following

members to the GEC (with effect from

1January 2025), all of whom have been with

the business for a number of years and bring

awealth of experience to their new roles:

• Ryan Dullea, Chief Category Growth Officer

• Jérôme Lemaire, President, North America

• Eric Gilliot, President, Europe

• Nitish Kapoor, President, Emerging Markets

Volker Kuhn, President of Hygiene, and Pat Sly,

President of Health, both left the business on

31December 2024.

Sami Naffakh, Chief Supply Officer, resigned

from his role and left the business in July 2024

and we welcomed Harald Emberger as Chief

Supply Officer in July 2024.

Filippo Catalono, Chief Information and Digitisation

Officer, resigned from his role and left the

business at the end of October 2024. Shannon

Eisenhardt is now responsible for IT&Digital.

Fabrice Beaulieu, Chief Marketing, Sustainability

and Corporate Affairs Officer, resigned and

stepped down from his role at the end of

December 2024. Ryan Dullea is responsible

formarketing as part of his role and Harald

Emberger is responsible for Sustainability

within his role. Sheila Redzepi was welcomed

as Chief Communications and Corporate

Affairs Officer in February 2025.

Biographical details of GEC members can

befound on pages 63–64.

Committee effectiveness review

An internal effectiveness review of the

Committee was conducted as part of the

broader Board review (see pages 79-80).

Allareas received positive ratings overall.

As part of the Board’s annual effectiveness

review, the Committee reviews the Board’s

composition and diversity and how effectively

members work together to achieve objectives.

Directors are evaluated both collectively and

individually to demonstrate whether each

Director continues to contribute effectively.

Following conclusion of the review, the

Committee reports to the Board on the

outcomes of the review that have or will

influence its composition and whether

eachDirector is committing sufficient time

tofulfil their duties.

The Board, having had sight of the results

ofthe Committee’s effectiveness review,

considers the Committee to continue

tooperate effectively.

Diversity and inclusion

The Board and Committee recognise the

importance of diversity, including gender and

ethnicity, at Board and senior management

levels in compliance with the Code.

Inclusion is core to Reckitt’s purpose to

‘protect, heal and nurture in the relentless

pursuit of a cleaner and healthier world’.

Werecognise that it is critical for us to have

adiverse employee population and a Board

and senior management team that are

reflective of the markets we operate in

andtheconsumers we serve.

We are committed to equality of opportunity

inall areas of employment and business,

regardless of personal characteristics.

Wealways recruit the best and most suitable

candidates for any role, and we strive for a

well-balanced representation of backgrounds,

nationalities, cultures, skills and experiences

atall levels across the Group. Ultimate

responsibility for and sponsorship of this policy

rests with the GEC. Senior management is

accountable and all Reckitt employees are

responsible for ensuring that our diversity

policies and programmes are implemented

andfollowed.

During the year we introduced a new Board

Policy, which is in line with the Financial

Conduct Authority (FCA) Policy on Diversity

and Inclusion on Company Boards and

Executive Management, the Parker Review and

the FTSE Women Leaders Review. The Policy

can be found on our website at www.reckitt.

com/investors/corporate-governance.

The Committee and the Board are committed

torecruiting members of the Board on the

strictcriteria of merit, skill, experience and to

seekdiversity of gender, social and ethnic

backgrounds, as well as cognitive and personal

strengths. This commitment is demonstrated

through our Board composition which comprises

nine nationalities, seven women and six men as at

the date of this report. Our Board consists of two

members from an ethnic minority, exceeding the

Parker Review recommendation and the FCA

Policy on Diversity and Inclusion on Company

Boards and Executive Management.

Our GEC, comprising the most senior

management level in the business, represents

six different nationalities from across the globe,

embodying our truly multinational focus. The

Company’s wider global leadership community

(GEC, GEC-1 and SMT) comprises over 46

nationalities between them, representing

abroad background of collective skills,

culturesand experience.

Strategic report Governance Financial statements Other information Reckitt Annual Report and Accounts 2024

Nomination Committee Report continued

As submitted to the UK Parker Review, 14.3% ofUK-based senior leaders (GEC and GEC-1) reported

as being from an ethnic minority. Ourintention is to continue to increase this representation in the

future. This widens our understanding of our consumers, who come from the broadest possible

backgrounds allowing us to be best placed inserving their needs.

At31December 2024

Number of

Board members

Percentage of

the Board

Percentage of

senior positions

on the Board

(CEO, CFO, SID

and Chair)

Number in

executive

management

Percentage of

executive

management

White British or other

White (including

minority White groups) 10 91% 100% 5 50%

Mixed/multiple ethnic

groups – – – 1 10%

Asian/Asian British 1 9% – 1 10%

Black/African/

Caribbean/Black British – – – – –

Other ethnic group,

including Arab – – – – –

Not specified/prefer

not to say – – – 3 30%

Representation of women at Board and senior management levels

As at 31 December 2024, 64% of our Board members are women and we have surpassed 40%

asoutlined in the FTSE Women Leaders Review. In addition, we will comply with the FCA’s Policy

on Diversity and Inclusion on Company Boards and Executive Management, which requires that

atleast one of the senior Board roles should be held by a woman, with Shannon Eisenhardt

appointed as CFO in March 2024.

As at 31 December 2024, representation of women within the GEC was 40%. Women constitute 26%

of GEC direct reports. We will continue to review the representation of women in leadership roles

within the GEC as detailed in the FTSE Women Leaders Review (and in provision 23 of the Code).

For further details relating to gender diversity within our workforce, please see page 49.

Number of

Board members

Percentage of

the Board

Number of

senior positions

on the Board

(CEO, CFO, SID

and Chair)

Number in

executive

management

Percentage of

executive

management

Men 4 36% 3 6 60%

Women 7 64% 1 4 40%

Not specified/prefer

not to say – – – – –

Further details can be found on pages 8-9 and in our Fairer Society section on pages 49-50.

Sir Jeremy Darroch

Chair of Nomination Committee

Reckitt Benckiser Group plc

5 March 2025

Strategic report Governance Financial statements Other information Reckitt Annual Report and Accounts 2024

On behalf of the Board, I am pleased to present

the Audit Committee Report for the financial

year ended 31 December 2024.

This report details how the Committee has

discharged its role, duties and performance

during the year including in relation to internal

control, financial and other reporting, risk

management, the Internal Audit function and

our relationship and interaction with the

External Auditor.

Committee priorities in 2025

• Maintaining oversight on Reckitt’s risk

management and internal control

procedures, including monitoring key areas in

the context of risk and control

AUDIT COMMITTEE REPORT

The focus this year remained on oversight of Reckitt’s

internal controls and risk management framework in the

context of the updated Corporate Governance Code.

Andrew Bonfield

Chair of the Audit Committee

• Sustaining a strong culture of risk

management and embedding and

strengthening internal controls

acrosstheGroup

• Monitoring potential legislative and

regulatory changes which may affect the

work of the Committee including the

updated Corporate Governance Code

• Overseeing the External Auditor tendering

process, in line with the Audit Committees

and the External Audit: Minimum Standard

• Reviewing cyber security risks and controls

Member

Scheduled meetings

attended

Andrew Bonfield (Chair) Chair and member for the

wholeyear 4/4

Margherita Della Valle Member for the whole year 3/4

Elane Stock Member for the whole year 4/4

Tamara Ingram Member for the whole year 4/4

Marybeth Hays Member from July 2024 2/2

Pam Kirby Member until May 2024 2/2

Image to be confirmed

Committee membership and experience

Name Recent and relevant financial experience

Sectoral experience relevant to

Reckitt’s operations

Andrew Bonfield (Chair) • Financial expert

• Chartered Accountant

• Currently CFO of a global US Fortune

100company

• Multiple CFO roles at other large

companies, including in the consumer

goods sector

• Consumer goods

• Pharmaceuticals/healthcare

Margherita Della Valle • Financial expert

• Holds a Master’s degree in Economics

• Previously held Group CFO and senior

finance roles

• Group CEO of FTSE 50 company

• Consumer goods

• Technology

Elane Stock • Holds Master’s degrees in Finance

• Previously member of the audit

committee of two US-listed entities

• Consumer goods

• Emerging markets

Tamara Ingram • Member of the audit committee of a

US-listed company

• Consumer goods

• Digital strategy

Marybeth Hays • Member of the audit committee of a

US-listed company

• Consumer goods

• Healthcare

Strategic report Governance Financial statements Other information Reckitt Annual Report and Accounts 2024

All Committee members are independent

Non-Executive Directors who have financial,

economics and/or business management

expertise in large companies.

Committee members are expected in

particular to have an understanding of:

• The Group’s operations, policies and internal

control environment

• The principles of, and recent developments

in, financial reporting

• Relevant legislation, regulatory requirements

and ethical codes of practice

• The role of internal and external audit and

risk management

The Board is satisfied that, in compliance with

the Code, Committee members as a whole

have competence relevant to the Company’s

sector (consumer goods).

Committee appointments are generally

madefor a three-year period. Members of the

Committee are appointed by the Board on the

recommendation of the NominationCommittee.

On joining the Committee and during their

tenure, members receive additional training

tailored to their individual requirements.

Committee members also meet with

management covering internal audit, risk

management, legal, tax, treasury and financial

matters, as well as meetings with the

ExternalAuditor.

During the year, members of the Committee

received regular briefings from management

on matters covering governance and legislative

developments, accounting policies and

practices, and tax and treasury.

During the year, the Deputy Company Secretary

for the February meeting and the Head of

Secretariat for the remainder of the year acted

as Secretary to the Committee.

Audit Committee Report continued

Meetings

During 2024, the Committee held four

scheduled meetings at times aligned to the

Company’s reporting cycle. In addition, two

non-scheduled joint meetings with the Board

were held in February and March in relation to

the approval of the 2023 Annual Report

andFinancial Statements.

Committee meetings usually take place ahead

of Board meetings and the Committee Chair

provides an update to the Board on the key

issues discussed at each meeting. Committee

papers are provided to all Directors in advance

of each meeting, including a copy of the

Committee minutes.

Meetings are attended by senior representatives

of the External Auditor and by the Group

Headof Internal Audit, CFO, and Corporate

Controller. Other Board Directors are invited to

attend allmeetings and the CEO attends and

observes most meetings. Other members

ofmanagement attend when deemed

appropriate by the Committee.

Time is allocated at the end of each meeting

for private discussion with the CFO, internal

audit and the External Auditor, without other

invitees being present, as well as a private

session of the Committee members.

Committee members’ meeting attendance

during the year is set out on the first page of

this Audit Committee Report.

Committee effectiveness review

A review of the Committee was conducted as

part of the Board’s annual effectiveness

review. All areas received positive ratings, with

the thoroughness of the Committee

highlighted, along with praise for how the

meetings were chaired. Areas of focus for the

year ahead include the controls transformation

and consideration into how the Internal Audit

function is managed.

The Board, having had sight of the results of

the Committee’s review, considers the

Committee to be operatingeffectively.

Strategic report Governance Financial statements Other information Reckitt Annual Report and Accounts 2024

Audit Committee Report continued

Fair, balanced and understandable

The Committee reviewed the 2024 Annual

Report and Financial Statements to confirm

that it is fair, balanced and understandable

and provides sufficient information to

shareholders to assess the Group’s position,

performance, business model and strategy.

The Committee relies upon the following

assurance framework in making its

assessment of fair, balanced and

understandable:

• All sections of the 2024 Annual Report and

Financial Statements were prepared in

accordance with the standard operating

procedures (SOPs) as approved by the

Disclosure Committee

• A detailed review of the 2024 Annual

Report and Financial Statements was

undertaken by senior management and

theDisclosure Committee to ensure

consistency in messaging and

appropriatebalance

• A comprehensive review by the Directors

and the senior management team of the

form, content and consistency of narrative,

the disclosures contained in the Financial

Statements and the underlying processes

and controls supporting the preparation

ofthe 2024 Annual Report and

FinancialStatements

• A comprehensive verification process,

supporting any facts, figures and assertions

included in the 2024 Annual Report and

Financial Statements

The Committee and the Board received

confirmation from management that the 2024

Annual Report and Financial Statements had

been prepared in accordance with the

assurance framework and that appropriate

verification had been undertaken.

In addition, the Committee also reviewed

KPMG’s audit findings report, draft audit

opinion and draft management

representationletter.

Following the Committee’s review, the

Committee was satisfied that the 2024

Annual Report and Financial Statements,

taken as a whole, met its objectives and

accordingly recommended to the Board that

the 2024 Annual Report and Financial

Statements be approved and that the Board

make its statement on page 138.

Role and responsibilities

The Committee is part of the Group’s

governance framework and supports theBoard

in fulfilling its oversight responsibilities in

ensuring the integrity ofthe Group’s financial

reporting, internal controls and overall risk

management process, and relationship with

theCompany’s External Auditor.

Financial reporting

• Monitor the integrity of the Financial

Statements of the Company including

interim and annual Financial Statements

• Review the appropriateness of significant

accounting policies and practices

• Review significant financial judgements and

estimates, taking into account the External

Auditor’s view on the financial judgements

and estimates

• Advise the Board on whether, taken as a

whole, the Annual Report is fair, balanced

and understandable and provides the

information necessary for shareholders to

assess the Company’s performance,

business model and strategy

Risk management systems and

internalcontrols

• Review and monitor the effectiveness of

the management of risk and overall system

of internal control

• Review the framework and analysis to

support both the going concern and the

long-term Viability Statement

Whistle-blowing, fraud and compliance

In conjunction with the Compliance

Committee, review the Company’s

arrangements for its workforce to raise

concerns about possible wrongdoings in

financial reporting and other matters; review

the Company’s procedures for detecting

fraud; and its systems and controls for ethical

behaviours and the prevention of bribery.

External audit

• Make recommendations to the Board on the

appointment, removal, remuneration and

terms of engagement of the External

Auditor, in line with the FRC Audit

Committees and the External Audit:

Minimum Standard

• Review and assess the External Auditor’s

independence and objectivity taking into

account relevant UK law and professional

and regulatory requirements

• Develop, recommend and implement the

Group’s policy in relation to the provision of

non-audit services

• Review and approve the annual audit

planand assess the effectiveness of the

audit process

Internal audit

• Review and approve the annual internal

audit plan and monitor and review

itseffectiveness

• Review and monitor the effectiveness

ofthe Internal Audit function, ensuring

thenecessary resources are in place for

ittoperform effectively

There were no significant changes to the

Committee’s role and responsibilities during

the year.

The Committee’s role and responsibilities are

set out in its terms of reference, which are

available at www.reckitt.com/investors/

corporate-governance.

Strategic report Governance Financial statements Other information Reckitt Annual Report and Accounts 2024

• Received an update on the current

draft of the 2023 Annual Report

and Financial Statements, the

going concern basis of preparation

and Viability Statement

• Received an update on the

Corporate Controller’s Report

covering key accounting and

reporting matters

• Received an update on KPMG’s

report on progress of the

2023audit

• Annual review of risk

management and internal

controls including review of

risksacross Group functions

andof the integrated risk

management framework

• Received an update from the

Internal Auditor on progress

against the 2023 audit plan and

asummary of the audits planned

for 2024 and review of the

Internal Audit Charter

• Reviewed the 2023 preliminary

results announcement, including

the Financial Statements

• Reviewed the final

dividendproposal

• Reviewed the KPMG management

representation letter

• Reviewed the 2023 Annual Report

and Financial Statements, the

going concern basis of preparation

and Viability Statement, including

whether the Committee could

recommend that the Board

approve the 2023 Annual Report

and Financial Statements

• Received an update on KPMG’s

2023 audit findings report,

observations on Reckitt’s internal

controls for the 2023 financial

year, management representation

letter and report on the 2023

Annual Report and Financial

Statements

• Received an update on the

Corporate Controller’s Report

covering key accounting and

reporting matters

• Reviewed and considered

theupdated Corporate

Governance Code in relation

tocontrols effectiveness

• Reviewed the Group’s funding

position and a proposal related

toa bond issuance and new

revolving credit facility

• Reviewed the audit quality

delivery and assessment of

External Auditor effectiveness

• Received an update on KPMG’s

internal controls review and

strategy for the 2024 audit

• Approved KPMG’s 2024 audit

feesand terms of engagement

• Confirmation following

assessment of External Auditor

independence and ethics

• Received an update on the key

internal audit findings and any

significant matters, and status

ofthe internal audit plan

• Received an update on legal

matters and compliance controls

• Reviewed the whistle-blowing

procedures

• Received an update on the

Corporate Controller’s Report

covering key accounting and

reporting matters, including the

External Auditor tender proposal

• Reviewed the 2024 half-year

results announcement, including

the going concern basis of

preparation and recommended

for approval by the Board

• Received KPMG’s half-year review

report findings to 30 June 2024

and management representation

letter

• Received KPMG’s assessment of

its objectivity and independence

• Reviewed and discussed the

implications following the tornado

damage to warehouse in the US

• Received the annual legal and

compliance review

• Received an update on the key

internal audit findings, any

significant matters, the status of

the internal audit plan and the

responsiveness of management

• Undertook a deep dive into the

findings from the Middle East

investigations which took place in

late 2023 and early 2024

• Reviewed and approved the

Committee’s 2025 standing

agenda and terms of reference

• Discussed the performance

review findings of the Committee

• Considered and discussed the

annual review of IT and controls

• Reviewed the controls

transformation update

andprogress

• Received an update on KPMG’s

ITupdate and control findings

relating to the 2024 audit cycle

• Received the 2025 internal

auditplan

• Reviewed and approved

theupdates to the Group

Treasury policies

• Received an update on the

riskmanagement process

including results of the

effectiveness review

• Received an update on Speak

Upreports

• Received an update on the key

internal audit findings and any

significant matters, and status

ofthe internal audit plan

• Received an update on the

annualtax review

February March May July November

Key activities during the year

Audit Committee Report continued

Strategic report Governance Financial statements Other information Reckitt Annual Report and Accounts 2024

Audit Committee Report continued

Significant and key financial

reportingmatters

The Committee is responsible for reviewing

and approving the appropriateness of the

interim and annual Financial Statements and

related announcements, including:

• Recommending that, in the Committee’s

view, the Financial Statements are fair,

balanced and understandable. In addition to

the detailed preparation and verification

procedures in place for the 2024 Annual

Report and Financial Statements,

management continued its focus on

narrative reporting with clear written and

visual messaging to communicate the

Group’s strategy

• Reviewing the appropriateness of the

accounting policies, judgements and

estimates used as set out from pages

159-196 and concluding that the judgements

and assumptions used are reasonable

• Reviewing the Group’s policy relating to, and

disclosure of, alternative performance

measures (APMs)

Areas of significant financial judgement

The areas of significant financial judgement in

relation to the 2024 Group Financial Statements

considered by the Committee, together with a

summary of the actions taken, were as follows.

Recoverability of goodwill and other

intangible assets

Under International Financial Reporting

Standards (IFRS), goodwill and indefinite-life

assets must be tested for impairment on at

least an annual basis. Impairment testing is

inherently judgemental and requires

management to make multiple estimates on

future performance, for example around future

price and volume growth, future margins,

terminal growth rates and discount rates.

TheGroup’s impairment testing utilised cash

flow projections included within one-year

budgets and five-year strategic plans.

Cashflows beyond the five-year period were

projected using terminal growth rates.

As a result of impairment testing performed

in2024, management determined that an

impairment charge of £696 million relating

toitsIFCN cash-generating unit (CGU) and

£142million relating to its Biofreeze CGU,

wasrequired at 31 December 2024 (2023:

impairment charge of £810 million relating

tothe IFCN CGU).

In November 2024 and February 2025, the

Committee reviewed the detailed results of the

impairment testing for the Group’s CGUs, with a

particular focus on the IFCN and Biofreeze CGU.

The Committee challenged thekey assumptions

which underpinned the Biofreeze recoverable

amounts, including anticipated category growth,

market share improvement, the commercial

success of newproduct launches and

international marketexpansion. The Committee

confirmed the key judgements and estimates

made by management including market

expansion and discount rate, and reviewed the

sensitivity ofthe impairment model to changes in

keyassumptions.

In February 2025, the Committee reviewed the

detailed results of the impairment testing in

relation to the IFCN CGU and challenged the key

assumptions which underpinned the IFCN

recoverable amount at 31 December 2024.

Thisincluded the effect of changes to the

regulatory environment, net revenue growth

rates, the commercial success of new product

launches, the expansion of speciality nutrition

and the anticipated capital expenditure

programme to upgrade facilities. The evolving

regulatory environment has increased the

judgemental nature of estimating the future cash

flows in relation to capital expenditure, thereby

resulting in increased scrutiny and focus by the

Committee and challenge tomanagement.

The Committee confirmed the key judgements

and estimates made by management and

reviewed the sensitivities of the impairment

model to reasonable changes in key assumptions.

The Committee reviewed management’s

disclosures in relation to goodwill, other intangible

assets and related impairment reviews included

within Note 9 and considered them appropriate.

Tax provisioning

From time to time, the Group may be involved in

disputes in relation to ongoing tax matters in a

number of jurisdictions around the world where

the approach of the local authorities is particularly

difficult to predict. The amount of uncertain tax

position liabilities recorded in relation to these

investigations is an area where management and

tax judgement are important. The Committee

reviewed the key judgements and conclusions

made with management and considered the level

of recognised uncertain tax position liabilities

tobe appropriate.

As required under IFRS, management has

included disclosure in the Financial Statements

outlining the amount of uncertain tax position

liabilities, the methodology by which they have

been recognised and the sources of estimation

uncertainty in relation to these uncertain tax

position liabilities or the rationale for why

sensitivity disclosure is not meaningful and has

not been provided in the Financial Statements.

The Committee has reviewed these

disclosures, included within Notes 1 and 22, and

considers them appropriate.

Trade spend accruals

Trade spend is a significant cost for the Group,

with the principal accounting judgements

relatingto trade accruals, specifically the timing

ofrecognition and the determination of

management’s best estimate of the amount of

trade spend which will ultimately be incurred.

TheAudit Committee focused on the level of

trade spend accruals at the year end to ensure

they are sufficient and appropriate. In addition,

theCommittee evaluated the accuracy of

management’s estimation of trade spend accruals

through reviewing the subsequent utilisation

oftrade spend accruals which were originally

recorded in the 2023 Financial Statements.

Legal liability provisioning

At 31 December 2024 a provision of £112 million

(2023: £137 million) was held on the Group’s

Balance Sheet in relation to regulatory, civil

andcriminal investigations as well as

litigationproceedings.

The Committee has reviewed the status of

potential legal and constructive liabilities

during the year, and at the year end, including

the South Korea Humidifier Sanitiser (HS) issue,

Necrotizing Enterocolitis (NEC), Phenylephrine

(PE) and other significant matters.

The Committee challenged management on

the judgements made in determining the level

of provisions recognised and was satisfied with

the level of provisioning and associated

disclosure for the HS issue, NEC, PE and

othersignificant matters (see Note 20) and

onits exercise of judgements described in

thedisclosure.

Other key financial reporting matters

Other key matters reviewed and evaluated in

relation to the 2024 Group Financial Statements

considered by the Committee, together with a

summary of the actions taken, are set out below.

Following the update provided in last year’s

report in relation to the Middle East, the

investigation continued during the first half

ofthe financial year and a deep dive was

presented to the Committee in July on the

findings and actions following the investigation.

Several senior members of the finance and

management team in the Middle East were

exited from the Business in February 2024.

TheCommittee discussed the factors that

hadcontributed to the issue in the Middle East

and how these could be prevented for a similar

situation in the future. A new management

team from outside the region was appointed

and management continues to work on driving

the culture and expectations required for the

business, and the financial and control systems

have been strengthened.

Strategic report Governance Financial statements Other information Reckitt Annual Report and Accounts 2024

A clear action plan is now in place, driven by

the CEO and CFO, setting the tone from the

top on expectations. There is zero tolerance for

any behaviours that are not aligned with ‘Do

the Right Thing. Always’, which is being driven

consistently throughout the organisation.

Going concern and Viability Statement

A Viability Review was undertaken by

management, encompassing its going concern

review. The Committee reviewed and

challenged the key assumptions used by

management in its Viability Review and going

concern assessment, as well as the scenarios

applied and risks considered.

Based on its review, the Committee considers

that the application of the going concern basis

for the preparation of the Financial Statements

was appropriate and confirmed the suitability

of the Viability Statement covering a five-year

period, as set out on page 57. The five-year

period for the Viability Review is the period of

the Group’s long-term forecasting process and

covers the various business cycles.

Internal audit

Role of internal auditor

The Committee is responsible for reviewing

and monitoring the effectiveness of the

Internal Audit function. The Group Head

ofAudit is accountable to the Chair of the

Committee, although for administrative matters

reports to the CFO. The function operates

independently of the Business, with no

responsibility for operational management.

Theindependence of the Group Head of Audit

and the Internal Audit function is considered as

part of the annual internal audit effectiveness

review. The Group Head of Audit role is vacant

as at the date of this report. The Internal Audit

Director attended Committee meetings and

provided updates on behalf of the Internal

Audit function.

The function is responsible for providing

independent and objective assurance on the

adequacy and effectiveness of Reckitt’s risk

management and internal control systems.

Itsmandate is set out in a written charter,

approved by the Committee, and it uses a

formal internal audit methodology consistent

with the Institute of Internal Auditors,

internationally recognised standards.

Prior to the start of each financial year the

Committee reviews and approves the annual

audit plan and assesses the adequacy of the

function’s budget and resources. The function

brings in specialist skills from external service

providers, as necessary. The strengthening of

the finance second line will allow the function

in future periods to transition away from an

agreed rotation and scope policy to a more

risk-based approach.

The risk-based audit plan focuses on areas

deemed critical to achieving our business

objectives and covers Reckitt’s commercial

businesses, manufacturing facilities, information

systems, programmes and higher-risk areas

and processes. Following each audit, control

weaknesses are reported to senior

management, together with recommendations

and updates. Resulting management actions

are tracked until they are satisfactorily closed.

Audits that identified significant weaknesses in

the control environment and where rated

unacceptable may receive a follow-up audit

within 12 to 18 months, asappropriate.

At each Committee meeting the Internal Audit

function presents an update which includes

anassessment of the control environment

together with any material issues, the

performance of the Internal Audit function, and

any other topics as required. A private session

with the Committee is also held at

everymeeting.

Risk management

The Committee supports the Board in fulfilling

its oversight responsibilities in ensuring the

integrity of the Group’s financial reporting

(including the Annual Report and Financial

Statements), system of risk management

andinternal control, and the relationship with

the External Auditor. The Committee makes

recommendations to the Board in relation

toapproval of the Annual Report and

FinancialStatements.

The Committee regularly monitors our system of

risk management and internal control (including

internal financial controls). The finance function,

headed by the CFO, has implemented policies,

processes, and controls to enable the Company

to review and comply with changes in

accounting standards and relevant financial

regulations. These policies, processes and

controls are kept under review on an ongoing

basis to ensure both internal and external

developments are reviewed and acted upon.

In monitoring the integrity of financial reporting

and any other risks falling within its remit,

theCommittee receives regular reports from

the Corporate Controller, Chief Ethics and

Compliance Officer, Group Head of Tax

andGroup Head of Treasury on material

developments in the legislative, regulatory,

andfiscal landscape in which the Group

operates. Italso receives reports on IT and

cyber security risks and controls, and on the

Group’s whistle-blowing arrangements.

The Committee reported to the Board in

February 2025 that it considers the internal

control framework to be functioning

appropriately, to enable the Board to meet its

obligations under section 4 of the Code, to

maintain sound risk management and internal

control systems, and to report to shareholders

on these in the Annual Report (see page 138).

As highlighted in last year’s report, Reckitt is

continuing with its controls transformation

programme in preparation for internal controls

changes arising from the revisions to the Code.

The basis for the preparation of the Group

Financial Statements is set out on page 159

under Accounting Policies.

The External Auditor’s Report, setting out its

work and reporting responsibilities, can be

found on pages 139-154. The terms, areas of

responsibility and scope of the External

Auditor’s work are agreed by the Committee

and set out in the External Auditor’s

engagement letter.

More information on the Group’s principal and

emerging risks and strategy for growth and

achieving targeted goals is detailed in the

Strategic Report, which can be found on

pages52–56.

The Viability Statement can be found on page57.

The Statement of Directors’ Responsibilities on

page 138 details the Directors’ responsibilities

for the Financial Statements, for disclosing

relevant audit information to the External

Auditor and for ensuring that the Annual Report

is fair, balanced and understandable.

Internal controls framework

Internal control processes are implemented

through clearly defined roles and

responsibilities, supported by clear policies and

procedures, and delegated to the GEC and

senior management. Reckitt operates a ‘three

lines of defence’ model in monitoring internal

control systems and managing risk.

1. Management in the first line ensures that

controls, policies and procedures are followed in

dealing with risks in day-to-day activities. Such

risks are mitigated at source with controls

embedded into relevant systems and

processes. Supervisory controls, either at

management level or through delegation,

ensure appropriate checks and verifications take

place, with any failures dealt with promptly.

Throughout Reckitt, a key responsibility for any

line manager is to ensure the achievement of

business objectives with appropriate risk

management and internal control systems.

Audit Committee Report continued

Strategic report Governance Financial statements Other information Reckitt Annual Report and Accounts 2024

Audit Committee Report continued

2. Each function and business has its own

management which acts as a second line of

oversight. This second line sets the local level

policies and procedures, specific to its own

business environment, subject to Group policy

and authorisation. The second line further

actsin an oversight capacity over the

implementation of controls in the first line.

Thefinancial performance of each business is

monitored against pre-approved budgets and

forecasts ultimately overseen by the executive

management and the Board. As part of the

second line, the corporate control team

identifies financial risks and mitigates these

with appropriate internal controls, set out

through minimum expected financial control

requirements. The effectiveness of the global

financial control framework is reviewed

annually. Further, the Group’s compliance

controls include the operation of an

independent and anonymous ‘Speak Up’

whistle-blowing hotline, annual management

reviews and the provision of training specific

toindividual needs within the business.

3. The third line of defence is provided by

theInternal Audit function which provides

independent and objective assurance to

management and the Committee on the

adequacy and effectiveness of risk management

systems and internal controls operated by the

first and second lines of defence. Internal audit

also facilitates the risk management process.

Reckitt’s internal control framework provides

assurance that business objectives are

achieved, that business is conducted in an

orderly manner and in compliance with local

laws, that records are accurate, reliable and

free from material misstatement, and that

risksare understood and managed.

The corporate control team is accountable

formanaging global financial control policies

and frameworks and for monitoring the

effectiveness of the Group’s internal financial

control environment. Corporate control is

responsible for reporting and monitoring

controls at local, area and global levels, working

with markets to improve risk and controls

capability and to support the development

ofremediation plans and corrective actions

forfinancial control weaknesses.

To meet upcoming changes to the Code, the

Company has established a multi-year controls

transformation programme. Alongside meeting

requirements of the Code, the programme

aims to embed a control focused culture which

will help strengthen internal controls across the

Group. In 2023, the controls transformation

programme launched an updated, standardised

and risk-focused controls framework for

financial and IT general controls, including new

evidence standards toenable consistent

documentation of the operating effectiveness

of financial and IT general controls. Following

launch, the second line of defence team,

supported by external advisors, conducted

acomprehensive fit-gap assessment to

determine the required uplift tocomply with

the new framework and evidence standards.

As anticipated, gaps versus the framework

andstandard were identified in relation to

theretention of evidence and the formality

andconsistency of control operation. In 2024

remediation work continued alongside a

programme of control testing covering

financialand IT general controls.

At each meeting, the Committee reviews

areport outlining the status of the controls

transformation programme, the results of

testing remediation progress, and other

notablecontrols activity since the previous

meeting. In 2025, assurance over the

operatingeffectiveness of controls in

therevised framework will be provided

bytesting conducted by the second line

ofdefence team.

Internal auditor effectiveness review

The Committee monitors the effectiveness

ofthe Internal Audit function throughout the

year through the internal audit attendance

atCommittee meetings, review of work

presented throughout the course of the year

and the annual internal audit effectiveness

review. The annual review involves the

solicitation of feedback through a survey

circulated to internal stakeholders including

Non-Executive Directors (including Committee

members), GEC, functional and operational

leadership teams.

The review assessed the skills and experience,

audit quality, audit scope, audit cost, audit

communication, independence, and change

catalyst of the Internal Audit function. The

survey reported strong, positive feedback

withmanagement viewing the function as

comprising high-quality and skilled individuals

who demonstrate a high level of integrity,

independence, and objectivity.

The Committee has considered the conclusions

of the effectiveness review and the work

performed by the function during the year and

remains satisfied that the resourcing, quality,

experience and expertise of the function is

appropriate for the Company and that the

function was objective and performed

itsroleeffectively.

External Auditor

The Committee is responsible for maintaining

the relationship with the External Auditor on

behalf of the Board. The Company’s External

Auditor is KPMG LLP (KPMG). Following a

competitive tender undertaken in 2017, KPMG

was formally appointed as the Group’s External

Auditor by shareholders in 2018. The Company

will be required to conduct its next external

audit tender no later than 2027.

For the year ended 31 December 2024, the

Company has complied with the Competition

and Markets Authority Order: The Statutory

Services for Large Companies Market

Investigation (Mandatory use of Competitive

Tender Processes and Audit Committee

Responsibilities) Order 2014.

The Committee considers and makes a

recommendation to the Board in relation to

theappointment, reappointment and removal

of the External Auditor, taking into account

independence, effectiveness, lead audit

partner rotation and any other relevant factors,

and oversees the tendering of the external

audit contract.

The Committee approves the External Auditor’s

terms of engagement and remuneration and

reviews the strategy and scope of the audit

and the work plan.

The Committee also monitors the rotation

ofthe lead audit partner every five years in

accordance with the FRC’s Ethical Standard.

The current lead audit partner, Andrew

Bradshaw, has completed his third year

asleadaudit partner.

Tender process

At the recommendation of the Audit Committee,

an audit services tender process commenced

during 2024 to provide sufficient time for an

adequate transition in the event that a new audit

firm is selected to perform the statutory audit

forthe year ending 31 December 2026.

In determining the process for the audit services

tender, management will take into consideration

and follow the FRC’s guidance on audit tendering,

with the Audit Committee making robust

decisions to ensure that the requirements of the

FRC’s minimum standard for audit committees are

met. Included in the process is a review of each

firm’s most recent FRC Audit Quality Review

reports, consideration of potential conflicts

ofinterest and independence checks, and

identification of key individuals with appropriate

skills and experience to act as potential lead

partners. Clear and objective criteria for assessing

success will be determined and agreed.

Strategic report Governance Financial statements Other information Reckitt Annual Report and Accounts 2024

A timeline summary of the key steps taken

sofar, and the next steps to take place, are

setout below.

July 2024 Review of the audit

markettodetermine their

minimum capability and

capacityrequirements.

January

2025

Issued a formal invitation totender

to the shortlisted audit firms.

February to

April 2025

Determination of the list of

assessment criteria, creation and

opening of a data room to share

information, and carrying out a

series of management meetings

with each shortlisted firm.

May to

June2025

Submission of a written proposal

followed by a presentation to

theAudit Committee from

theshortlisted firms.

June 2025 Review of proposals

fromfirms,consideration

byAuditCommittee and

recommendation to the Board.

External Auditor effectiveness review

The annual evaluation of the External Auditor

was carried out in early 2024 and the results

were reported to the Committee in May. The

assessment of the External Auditor was

conducted using a survey circulated to the

Board, GEC, finance and other functional

leadership and local finance management. The

survey covered the four competency areas in

the FRC’s Guidance on Audit Quality: practice

aid for Audit Committees (published in

December 2019): Judgement; Quality Control;

Skills and Knowledge; and Mindset and Culture.

Besides the annual evaluation of the External

Auditor, the Committee continually reviews the

External Auditor’s effectiveness through means

such as the monitoring of its progress against

the agreed audit plan and scope. KPMG reports

to the Committee annually with an audit quality

scorecard, providing a holistic view of, and its

investment in, audit quality and how it

measures its audit quality progress.

External Auditor fees and

non-auditservices

The Committee reviews the nature and level of

non-audit services undertaken by the External

Auditor during the year to satisfy itself that

there is no impact on its independence. The

Committee is required to approve all non-audit

services. The Board recognises that in certain

circumstances the nature of the service

required may make it timelier and more

cost-effective to appoint a party that already

has a good understanding of Reckitt.

The total fees paid to KPMG for the year ended

31 December 2024 were £24.2 million, of which

£4.5 million related to non-audit and audit-

related work (to which KPMG was appointed

principally for the above reasons). The Group’s

internal policy on non-audit fees (effective 1

January 2017) states that, on an annual basis,

non-audit fees should not exceed 50% of the

Group’s external audit and audit-related fees

for the year. The Board confirms that, for the

year ended 31 December 2024, non-audit

andaudit-related fees were 22.8% ofthe

auditfees.

Details of services provided by the External

Auditor are set out in Note 4 on page 168.

Independence and reappointment

Reckitt has a formal policy in place to

safeguard the External Auditor’s independence.

In addition, as part of its audit strategy

presentation to the Committee in May, KPMG

identified its own safeguards in place to

protect its independence and confirmed its

independence to the Committee in March.

KPMG demonstrate appropriate professional

scepticism in the papers that are presented

tothe Committee in relation to all significant

areas that were identified.

The Group has a policy that restricts the

recruitment or secondment of individuals

employed by the External Auditor into positions

that provide financial reporting oversight

where they could exercise influence over the

financial or regulatory statements of the Group

or the level of audit and non-audit fees. Other

than the provision of advisory services to a

Director in their personal capacity, KPMG had

no connection with the Directors during the

financial year.

The External Auditor is a key stakeholder in

helping the Committee fulfil its oversight role

for the Board. The Committee remains satisfied

with the External Auditor’s independence and

effectiveness and believes KPMG is best

placed to conduct the Company’s audit for

the2025 financial year. KPMG has expressed

awillingness to continue as External Auditor

ofthe Company. Following a recommendation

by the Committee, the Board concluded that

itwas in the best interests of shareholders

toappoint KPMG as the Company’s External

Auditor for the financial year ending

31December 2025. The Committee and

Board’s recommendation was free from

third-party influence and there was no

contractual term ofthe kind mentioned

underRegulation (EU) No 537/2014 imposed

onthe Company.

In accordance with section 489 of CA 2006,

resolutions to propose the reappointment

ofKPMG as the Company’s External Auditor

andtoauthorise the Committee to fix its

remuneration will be put to shareholders

attheAGM on 8 May 2025.

Andrew Bonfield

Chair of the Audit Committee

Reckitt Benckiser Group plc

5 March 2025

Audit Committee Report continued

Strategic report Governance Financial statements Other information Reckitt Annual Report and Accounts 2024

On behalf of the Board, I am pleased

to present the Compliance Committee

Report for the financial year ended

31December 2024. This report details

how the Committee has discharged

itsrole and responsibilities during the

year in accordance with our Purpose

and Compass.

Committee membership

Members of the Committee are appointed

bythe Board on the recommendation of

theNomination Committee, which reviews

membership in terms of skills, knowledge and

experience. There were a number of changes

to the members of the Committee during the

year, with Pam Kirby stepping down as Chair

and Chris Sinclair stepping down as a member

following the AGM in May when they both

retired from the Board, and the sad news

ofthe death of Olivier Bohuon in early May.

Iwould like to thank them all for their

valuablecontributions to the Committee.

I took over as Chair of the Committee following

the AGM on 2 May 2024. Kris Licht continued

asa member and Marybeth Hays joined the

Committee in February 2024 when she joined

the Board.

On joining the Committee and during their

tenure, members receive an induction tailored

to their individual requirements. This includes

meetings with internal management

COMPLIANCE

COMMITTEE REPORT

The Committee receives regular briefings from key

functional teams to enable it to discharge its oversight

responsibilities and works with the Audit Committee on

areas of crossover, as needed.

Mehmood Khan

Chair of the Compliance Committee

responsible for Compliance Committee

matters. All members of the Committee

receive regular briefings from senior executives

on matters covering governance, regulatory

and legislative developments, product safety

and ethics-related matters, along with updates

on Reckitt’s practices and policies in

theseareas.

During the year, the Deputy Company Secretary

for the February Committee meeting, and the

Head of Secretariat for the remainder of the

year, acted as Secretary to the Committee.

Meetings

In 2024, the Committee held four meetings.

Meetings usually take place ahead of Board

meetings and the Chair of the Committee

reports formally to the Board on the Committee’s

activities. The CEO, CFO, Chief R&D Officer,

General Counsel & Company Secretary, Chief

Supply Officer, Chief Ethics and Compliance

Officer, SVP Regulatory Affairs & Global Safety

Assurance, and the SVP Head of Global Quality

regularly attend meetings. Other Board Directors

are invited to attend all meetings, and other

senior management attend when deemed

appropriate by the Committee.

Time is allocated at each meeting for private

discussions with the Chief R&D Officer and

Group General Counsel & Company Secretary

without other invitees being present, as required,

as well as a private meeting of the Committee

members. All Board members are provided with

copies of Committee papers and minutes.

Member Meetings attended

Mehmood Khan (Chair) Member for the whole year, Chair

from May 2024 3/4

Kris Licht Member for the whole year 4/4

Marybeth Hays Member since February 2024 3/3

Chris Sinclair Member until May 2024 2/2

Olivier Bohuon Member until May 2024 1/2

Pam Kirby (Chair) Chair and member until May 2024 2/2

Image to be confirmed

Areas of focus Further detail Pages

Legal compliance and ethics Risk Management 52-56

Section 172 Statement 78

Audit Committee Report 86-93

Product safety and quality Value creation model 10-15

Stakeholder Engagement 74-77

R&D and regulatory compliance Risk Management 52-56

Strategic report Governance Financial statements Other information Reckitt Annual Report and Accounts 2024

Compliance Committee Report continued

In addition to reviewing matters at Committee

meetings, the Committee Chair held regular

meetings with our CEO, Chief R&D Officer, Chief

Supply Officer and Chief Ethics and Compliance

Officer, to review progress against the strategy

and to represent the Board in supporting the

compliance efforts in these critical areas.

Committee effectiveness review

This year, an internal effectiveness review of the

Committee was conducted as part of the

Board’s overall effectiveness review (see pages

79-80). Following last year’s external review,

where the role and scope of the Committee

was highlighted, the Committee’s remit was

changed in June which is detailed below. The

Committee was rated very highly this year, with

the change in scope positively received. The

Board, having had sight of the results of the

Committee’s performance review, considers

theCommittee to be operating effectively.

Change in scope and remit of the

Committee

As announced on 19 June 2024, the role andscope

of the Corporate Responsibility, Sustainability,

Ethics and Compliance Committee (CRSECC) was

reviewed earlier in the year and it was agreed by

the Board to align the Committee to our principal

risks related to product regulation, product

quality and safety, and legal and compliance.

This will allow the Committee to focus on these

critical areas and the compliance culture at the

Company. ESG and sustainability matters have

returned to the remit of the full Board. Given the

change in scope, the Committee has been

renamed the Compliance Committee.

Role of the Committee

The Committee is part of the Group’s

governance framework and supports the Board

in fulfilling its oversight responsibilities in

ensuring the integrity of the Group’s product

regulation, product quality and safety, legal and

compliance risks, policies, programmes and

activities. Its role and responsibilities are set

out in its terms of reference, which can be

found at www.reckitt.com/investors/

corporate-governance, and are reviewed by

the Committee annually. The Committee’s

terms of reference were updated following the

change in remit of the Committee following

feedback from the Board evaluation carried out

in 2023. The updated terms of reference were

approved by the Board in June 2024.

The Audit Committee has a monitoring function

in respect of risk management and internal

control systems, which also includes the

assurance framework established by

management to identify and monitor risks

identified by the Compliance Committee. The

Committee liaises with the Audit Committee and

Marybeth Hays is a member of both Committees.

Responsibilities of the Committee

The Committee reviews the following areas

throughout the year as part of its remit and

responsibilities, with its terms of reference and

inthe context of the Group’s principal risks:

• Oversee, assess, monitor and recommend

policies, processes and procedures relating

tohealth and safety and product quality,

compliance matters (including anti-bribery,

competition law, data privacy, trade sanctions,

anti-money laundering, regulatory and quality

risk assurance and restrictive trade practices

and ethical conduct), ensuring they align with

the Company’s culture, purpose and values

• In conjunction with the Audit Committee,

reviewing the Company’s whistle-blowing

arrangements, including the adequacy and

security for the workforce to raise concerns

about the possible wrongdoings in financial

reporting or other matters

• Receiving and reviewing reports regarding

investigations of allegations raised through

the Speak Up system

• Monitoring and reviewing processes for risk

assessment for product quality and

compliance matters and ethical conduct

• Reviewing mitigating actions for product

quality and compliance risks and receiving

reports on progress of risk mitigation

• Receiving reports from management in

respect of ethics and compliance and

investigating and taking action in relation

toissues raised or reported

Committee priorities for 2025

• Review the remit and activities of the

Committee within the broader Reckitt

governance framework

• Monitor and prepare for future developments

in product regulation, product quality

andsafety and legal and compliance

requirements, and review internal processes,

policies and procedures to ensure compliance

• Continually review and update the Board

onReckitt’s quality, safety, compliance and

regulatory responsibilities

• Monitor and review the processes for risk

assessment of key principal risks including

inrelation to product regulation, product

quality and safety and legal and compliance

• Keep abreast of market conditions and

maintenance of products in the current

globalpolitical and economic landscapes

Mehmood Khan

Chair of the Compliance Committee

Reckitt Benckiser Group plc

5 March 2025

CRSECC Compliance Committee

Key activities

during 2024

February May July November

• Legal Compliance and Ethics report

• ESG update

• Changes to Product Regulations report

• Product Safety and Supply report

• Employee Health and Safety report

• External Affairs report

• Deep dive on changes to regulation

under ‘EU Green Deal’

• Legal Compliance and Ethics report

• ESG update

• Changes to Product Regulations report

• Product Safety and Supply report

• Employee Health and Safety and

Qualityreport

• External Affairs report

• Compliance report

• Deep dive on employee health and safety

• Legal Compliance and Ethics report

• Changes to Product Regulations report

• Product Safety and Supply report

• Legal Compliance and Ethics report

• Changes to Product Regulations report

• Product Safety and Supply report

• Review of implications for product

regulations, product quality and

compliance activities in relation to the

strategy announcement made in July 2024

Strategic report Governance Financial statements Other information Reckitt Annual Report and Accounts 2024

Letter from the Chair

On behalf of the Board, I am pleased to present

the Directors’ Remuneration Report for the

financial year ended 31 December 2024. Iwould

like to thank shareholders for their support of

our 2023 Annual Report on Remuneration at our

AGM on 2 May 2024, which received a strong

vote in favour of 94%.

In line with the normal three-year lifecycle, we

will be submitting our Directors’ Remuneration

Policy (Policy) for approval at the AGM on 8May

2025. On the following pages I have shared the

context for the key decisions theRemuneration

Committee has taken this year, inparticular the

decisions we took in connection with the

updated Policy, how werewarded

performance achieved during the year in line

with the current shareholder-approved Policy,

decisions relating to remuneration

arrangements in 2025, and the context of

wider workforce remuneration.

The outcome of the Committee’s review is that

the Policy remains fit for purpose, aligned to

ourstrategy, and aligned to our remuneration

philosophy and principles including our pay-for-

performance and share ownership culture.

Therefore, the Remuneration Committee is

notproposing to make any material changes

–itis largely a rollover of the Policy approved

atthe 2022 AGM.

As part of the Policy renewal, the Remuneration

Committee has engaged with shareholders

andshareholder advisory bodies over the past

year. Iam pleased to say that we have had

thebenefit of feedback or engagement with

approximately 40% of Reckitt’s ownership as

well as the key proxy advisors and that the

vastmajority of shareholders that we engaged

with were supportive of the proposals and noted

that there is no significant change. We have

DIRECTORS’ REMUNERATION REPORT

Our proposed Remuneration Policy is aligned to our strategy,

and to our remuneration philosophy and principles including

our pay-for-performance and share ownership culture.

Mary Harris

Chair of the Remuneration Committee

provided additional context in response to some

of the key themes raised by shareholders

throughout this letter and report. We highly

valuethe inputs and views of all shareholders

and their advisors, and on behalf of the

Committee, I would personally like to take

thisopportunity to thank all those who took

the time to engage with us and provide

feedback on the proposals.

The Policy review considered the remuneration

framework in the context of our updated

strategy, focusing on growth and long-term

value creation, our remuneration principles

including our long-established pay-for-

performance and share ownership culture,

andthe increasingly competitive global talent

market in which we operate. The Committee

also had in mind that shareholders have been

supportive of the current Policy and its

implementation since it was approved by

shareholders at the 2022 AGM, with strong

AGM votes in all years since (all 90%+).

The Committee is proposing to make modest

increases to the LTIP which are within the limits

of our current Policy. These changes have taken

into account the following:

• Reckitt’s refreshed strategy, which was

announced in July 2024. It is critical that our

remuneration arrangements incentivise our

senior leaders to deliver this strategy as

wecontinue to reshape Reckitt into a more

efficient, world class consumer health and

hygiene company focused on a portfolio

ofhigh-growth, high-margin Powerbrands

• Our focus to retain and incentivise our talent

– Reckitt competes for the best global talent

with the world’s largest companies and

many of our senior executives are highly

sought after in this talent market

Member Meetings attended

Mary Harris (Chair) Member for the whole year and Chair

sinceMay 2024 5/5

Sir Jeremy Darroch Member for the whole year 5/5

Fiona Dawson Member and Chair Designate sinceJune2024 3/3

Alan Stewart Chair and member until May 2024 1/1

Olivier Bohuon Member until May 2024 1/1

Chris Sinclair Member until May 2024 1/1

1 During 2024, the Committee held five scheduled meetings aligned to the Company’s Board

meeting cycle. In addition, one non-scheduled meeting was held in December 2024 attended

byallthree active Committee members

Contents of Directors’ Remuneration Report

96 Letter from the Chair

99 Reckitt’s remuneration at a glance

103 Directors’ Remuneration Policy

110 Annual Report on Remuneration

127 Additional remuneration disclosures

Strategic report Governance Financial statements Other information Reckitt Annual Report and Accounts 2024

Directors’ Remuneration Report continued

• Our unchanged pay positioning philosophy,

which is to deliver packages to the Executive

Directors broadly in line with the median

ofthe FTSE 30 (excluding Financial Services

Companies (FS)) for more modest

performance levels, and packages in

theupper quartile practice for true

outperformance including significant share

price growth. The primary group used for

assessing the competitiveness of pay is the

FTSE 30 (excluding FS) of which we are a

constituent, with a secondary reference

point being our global FMCG peer group

withwhom we compete for talent

Further details are discussed on page 110

Performance for the year under review

and strategic context

2024 was a foundational year for Reckitt. We

substantially increased our cash returns to

shareholders and invested in our future growth

while weathering unforeseen difficulties. It was

ayear of strategic clarity and delivery as we

announced a sharpened portfolio of brands,

asimpler, more effective operating model and

drove top and bottom-line growth.

We achieved like-for-like net revenue growth

(LFL NR) of +1.4%, within our guidance. Our

adjusted operating profit grew by +8.6%

(atconstant FX), and we generated free cash

flow of £2,232m, supporting a record 75%

increase in cash returns to shareholders

through our dividend and continued share

buyback programme.

Our competitive position in Health and Hygiene

has improved, 55% of top Category Market

Units held or gained share, with 15% for

Nutrition and 48% for the Group. Our progress

was driven by strong innovation platforms and

increased investment in our brands and R&D. In

July 2024, we announced a strategic reshaping

to create a world-class consumer health and

hygiene company, focused on a portfolio of

high-growth, high-margin Powerbrands for a

simpler, more effective Reckitt.

Overall, the financial performance delivered

in2024 demonstrates our progress and sets

astrong foundation for future growth. We are

confident in our refreshed strategy, strengths,

and potential to deliver strong growth and

value creation.

Performance outcomes for 2024

The Committee carried out a thorough

evaluation of the performance of both the

Group and the Executive Directors in the round,

having regard to broader circumstances, and

have determined that the formulaic incentive

outcomes set out below are appropriate and

justified in this wider context.

The framework and the assessment against

performance which the Committee used are

set out in detail on page 110.

The Committee has adjusted the 2024 bonus

and2022-24 LTIP outturns for the impact of

theexceptional Mount Vernon tornado for

all

participants, including Executive Directors. No

one could have foreseen the tornado that hit our

storage facility and the logistical impact, and

therefore this adjustment was made to ensure that

underlying performance was measured in a fair and

consistent manner. The Committee determined

that the level of annual bonus payout and the

totalvesting level of the LTIP set out below are

appropriate and justified in this wider context.

Annual bonus

Reckitt operates an annual bonus plan that

isstrongly aligned to performance, measured

against targets of net revenue and adjusted

profit before income tax, with a downward

modifier based on net working capital (NWC).

Net revenue performance for the year was

inline with our guidance range. Against our

stretching target range this was between

threshold and maximum and resulted in a

multiplier for LFL net revenue of 1.22x.

Weachieved our goal of growing adjusted

operating profit ahead of net revenue –

drivenby year-on-year margin expansion

whichresulted in EPS growth of 7.9%.

Profitbefore tax performance exceeded the

target range and resulted in a maximum

multiplier for this measure. Net working capital

performance exceeded the maximum target

resulting in a multiplier of 1.0x. The overall result

under the annual bonus is therefore 65% of

maximum.

This is in line with all other employees on the

same Group-wide measures.

One-third of bonus payments to Executive

Directors are deferred into Reckitt shares

forthree years in line with the Policy.

More details are set out on page 111 of the

Annual Report

2022–2024 LTIP

The Reckitt LTIP is designed to align

participants with shareholders through making

awards with stretching performance conditions

denominated in both performance share

options and performance share awards.

Vesting of awards under the 2022 LTIP was

dependent on LFL NR growth, ROCE, relative

TSR, and Sustainability targets.

As a result of very strong performance over the

three-year period, NR growth was at 4.3% p.a.

This was towards the upper end of the target

range and resulted in vesting of 81% of this

element. ROCE performance was above the

maximum target. Whilst the TSR element lapsed

in full, the Committee noted that the share price

as at 31 January 2025 was c.10% higher than the

Q4 2024 average price (on which the TSR

outcome is based). We have exceeded the

targets set for carbon reduction, by optimising

high energy manufacturing processes (especially

those using natural gas), increasing our use of

renewable energy, and investing in longer term

renewable electricity generation, which allowed

us to achieve a 69% reduction in GHG emissions

in 2024. This exceeds our 2030 ambition by

several years and therefore our performance was

above the maximum range, with full vesting

under this element. We also delivered 35% of our

net revenue from more sustainable products by

focusing on the raw materials used in our

products and continuing our programmes to

reduce the use of certain chemicals. This

element of our LTIP also exceeded the maximum

target range and resulted in full vesting under

this measure. As set out on page 116, the overall

outcome is that 68% of the award vests.

In line with our Policy, there is a further two-year

holding period attached to vested LTIP awards.

Implementation in 2025

The Committee is proposing some modest

changes to the implementation of the Policy,

further detail of which is set out below.

Base salary

In relation to base salary, the CEO was awarded

a 4% increase for 2025, in line with the wider

UK workforce. It should also be noted that in

2024 the CEO received no salary increase.

Whilst we remain committed to ensuring the

package is weighted to performance-based

elements, the Committee is mindful that the

CEO’s salary has now fallen below the lower

quartile of the FTSE 30 (excluding FS) and will

keep this under review in future years.

As part of the refreshed strategy, the scope of

the CFO role has been expanded significantly

to include responsibility for IT and Digital. This

is no longer a separate GEC role and instead

the function reports to the CFO. As part of

this,the CFO will now play a critical role in

delivering the Group’s strategy by building a

data-driven, digitally enabled Business, and has

responsibility for a significantly larger number

of people. This global function is critical to the

success of the Company, as we continue to

build on our strong data and AI foundations,

setting our global teams up for success and

better serving our customers and consumers.

To reflect the increase in scope and complexity

of the CFO role, an additional salary increase of

5% on top of the wider workforce increase of

4% has been awarded, resulting in a total of 9%.

Strategic report Governance Financial statements Other information Reckitt Annual Report and Accounts 2024

Directors’ Remuneration Report continued

Annual bonus

There are no proposed changes to the annual

bonus opportunities or performance measures.

For the 2025 Annual Performance Plan (APP) the

Committee’s assessment of performance in the

round will also include consideration of

performance in relation to the execution and

delivery of the refreshed strategy. Further detail is

set out later in this report.

LTIP

Within the limits of the existing Policy a modest

increase is proposed to LTIP award levels. 2025

award levels for the CEO will be set at 87,500

performance shares and 175,000 performance

share options (previously 75,000 and 150,000

respectively), with the CFO’s award set at

42,500 shares and 85,000 options (previously

40,000 and 80,000 respectively).

This takes into the account the context set out

earlier in this letter including alignment to our

refreshed strategy, the global talent markets in

which we operate, and our remuneration principles

including our historic pay positioning philosophy.

During the shareholder consultation some

shareholders asked for further detail on how the

Committee determined the number of

performance shares and performance share

options. These increases are intended to move

the package closer to our desired positioning

against the FTSE 30 (excluding FS) outlined earlier

in the report. In reviewing the packages, the

Committee based this on assuming a share price

at award of £60, broadly in line with historic levels

and higher than the current share price. At the

current share price, the package continues to be

below our desired positioning.

The package also continues to be materially

below typical market practice in our global peer

group. Over recent years multiple senior leaders

from across the Group have been targeted by

global competitors. Whilst we are not intending

to match US pay levels (our remuneration

packages are positioned significantly less

competitively, in all performance scenarios,

versus our global sector peers), it is critical that

our arrangements are credible in the markets in

which we operate.

The Committee has also reviewed the

performance measures in operation and is of the

view that the current overall balance of measures

remains appropriate and aligned to our strategy

and culture. There is a minor change to the

Sustainability measure as we have already achieved

the 2030 ambition for carbon reduction. Further

detail has been provided later on in this report.

Following feedback from shareholders, we

have also reviewed the TSR peer group which

consists of companies that are closely aligned

to Reckitt in terms of business areas and

product portfolios, and are subject to similar

market dynamics. For the 2025 LTIP, JDE Peet’s,

Lindt, and Mondelēz will be removed from the

peer group on the basis that their product

portfolios are less closely aligned to Reckitt’s

and following the addition of Haleon and

Kenvue resulting in the peer group being a

sufficiently robust size. Further detail is

provided later on page 126.

Share ownership

Our share ownership guidelines, which are

amongst the highest in the UK-listed market

and our international peers, will be retained

tosupport our culture of share ownership.

NED fees

During the year, the Chair and Non-Executive

Director (NED) fees have been reviewed taking

into account increases awarded to the wider

workforce and market practice. The fee for the

Chair will increase by 4%, in line with the increase

applied to the wider workforce. The basic NED

feewill increase to £115,000, with effect from

1January 2025, which is broadly in line with

thewider workforce. There are also modest

increases to the additional fees for being Senior

Independent Director, Committee Chair, a

Committee member, and the Designated

Employee NED to reflect the time commitments

and responsibilities of the roles. Further details are

set out on page 129. 25% of the Chair fee and

basic NED fee continues to be paid in shares.

Wewill continue to review NED fees to ensure

they are appropriate and competitive against

themarket.

Context for remuneration of the

widerworkforce

Reckitt is committed to fair and consistent reward

policies for its employees, aligned with our

Compass, remuneration philosophy and our culture.

Amidst significant organisational transformation, a

review of the pay structure across the whole

organisation has been undertaken alongside the

review of the Executive Director Policy. Partnering

with our wider Reward and HR team, the

Remuneration Committee has considered and

reviewed multiple elements of reward including

salary structures, bonus designs, LTIP and benefits

throughout 2024.

In 2025 we have updated several elements

ofhow we set and measure performance,

supported by our established cycle of objective

setting, performance reviews and assessment,

and development conversations. These changes

ensure that we not only further strengthen our

performance culture, but also ensure that our

colleagues remain purpose led and values driven.

Our Performance, Talent and Reward philosophy

is aligned to ‘who we are’ and recognises both

‘what’ we do and ‘how’ we do it in measure.

Central to our remuneration philosophy are the

principles of pay for performance, shareholder

and strategic alignment. For the majority of

colleagues, their performance will feed into our

annual bonus (APP) alongside our collective

performance against key performance metrics,

tailored to individual markets. Reckitt’s most

senior managers participate in our Long-Term

Incentive Plan (LTIP). Participation has been

expanded for 2025, introducing a more long-term

element of reward to balance in-year

performance, enhancing our culture of ownership

and supporting us in recruiting, retaining and

developing the best global talent.

This builds on several other initiatives we already

have in place for employees, further detail of

which is provided in the Directors’ Remuneration

Report. In particular, participation in all-employee

share plans is offered to over 95% of our

employees where local legislation permits and as

of 2024 year end over 13,000 Reckitt employees

were participating in one of our share plans

fostering our culture of ownership and

shareholder alignment. Amongst other market-

related benefits, all employees have life insurance

of at least 2x base salary and have access to an

appropriate Employee Assistance Programme.

In addition, as part of our Sustainable Livelihoods

framework, we are proud that in 2024 Reckitt has

achieved the Fair Wage Network Global Living

Wage Certification, confirming that we pay all our

employees above the living wage in all locations.

This formal accreditation solidifies our commitment

to fair compensation and equitable treatment.

For more information, please refer to pages 121-123.

Conclusion

On behalf of the Committee, I would like to thank

shareholders for their continued support and

engagement during the year. I hope that you find

this report a clear explanation of the proposed

Remuneration Policy. We welcome any comments

you may have on this report and I look forward to

your support at the upcoming AGM on 8 May 2025.

As announced earlier last year, Fiona Dawson will

be taking over as Chair of the Remuneration

Committee following the AGM and I thank her

forher input and guidance since joining the

Committee in June 2024. As announced in

November, Mahesh Madhavan joined the

Remuneration Committee in February 2025.

I would also like to thank my fellow Committee

members for their insight and commitment; and

shareholders, for their invaluable feedback and

support which has helped inform and update

ourproposed Remuneration Policy, and for their

support during my tenure as Chair of Reckitt’s

Remuneration Committee.

Mary Harris

Chair of the Remuneration Committee

ReckittBenckiser Group plc

5 March 2025

Strategic report Governance Financial statements Other information Reckitt Annual Report and Accounts 2024

Directors’ Remuneration Report continued

Reckitt’s Remuneration at a Glance

Reckitt aims for leading global performance. Our refreshed strategy focuseson growth

and long-term value creation and our remuneration principles remain aligned to this

change and continue fostering our strong pay-for-performance culture.

Our management team is multinational, and we compete for talent globally. Central

toour remuneration philosophy are the principles of pay-for-performance, shareholder

alignment, strategic alignment, and rewarding the right behaviour. Combined with

ourCompass and business model, these principles support our long-established

pay-for-performance and share ownership culture, driving accelerated growth and

supporting long-term value creation.

To reinforce our philosophy, the majority of the Executive Directors’ remuneration

packages consist of variable at-risk pay, linked to challenging targets that align

withourstrategy and are largely delivered in Reckitt shares. Additionally, we have

shareholding requirements for Executives amongst the highest in the UK market.

Thisapproach is cascaded throughout our senior leadership.

The tables below illustrate the remuneration principles at Reckitt, which are driven by our

Compass, strategy and the remuneration philosophy.

1 Recruit, Retain & Develop the best

global talent

• Engage highly performance-driven individuals

• Deliver globally competitive pay practice

across our industry peer group

2 Ensure high performance culture

• Drive sustainable outperformance and

shareholder value

• A high proportion of variable pay with

stretching performance targets

3 Culture of ownership

• Market leading share ownership

• Align the interests of management and

shareholders

In-employment shareholding requirement

Number

of shares

Value

of shares (£)

% of 2024

annual salary

CEO 200,000 9,562,000 869%

CFO 100,000 4,781,000 629%

Post-employment shareholding requirement

Number

of shares

Value

of shares (£)

% of 2024

annual salary

CEO 100,000 4,781,000 435%

CFO 50,000 2,390,500 315%

1 Based on the average closing share price in Q4 2024 of£47.81

Reflecting 50% of the in-employment shareholding requirement

4  Ensure alignment with strategy across

the Business

• Alignment of performance metrics with

strategic priorities

• Alignment across the business of metrics

and ownership

Summary of our Remuneration Policy

The table below summarises the proposed Directors’ Remuneration Policy which can be found on

pages 103-109. No structural changes to the Policy are proposed.

Year 1 Year 2 Year 3 Year 4 Year 5 Up to Year 10

Fixed pay

Annual bonus

(APP)

LTIP

Shareholding

requirements

Fixed

pay

(cash)

20%

62%

(shares)

10%

ariable

pay

92%

alary 7%

Pension 1%

Reckitt’s Compass

Own

Deliver

CreateCare

Do the

right thing.

Always.

See page 16 for more details of our Company strategy

Pay for

performance

Strategic

alignment

Shareholder

alignment

Maximum CEO pay under the Remuneration Policy

Note: Value of the CEO’s maximum 2025 package. This illustrates

fixed remuneration plus full payout of the annual bonus (APP) and

full vesting of the LTIP awards including 50% share price growth

Reckitt’s strategy

• Purpose and culture fit for the future

• Excellent brand portfolio for value creation

• Scaled global footprint

• Enhanced returns to shareholders

Reward the right

behaviour

Remuneration philosophy

Two-thirds paid in cash; one-third in Reckitt

shares deferred for three years

No further performance conditions

Performance shares and performance

shareoptions

Three-year performance period

Period of eight years from appointment to achieve requirements

Two-year shareholding requirement post-departure

Two-year holding period

No further performance conditions

Ten-year life for options from grant

Salary, benefits

and pension

One-year

performance

period

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100

Directors’ Remuneration Report continued

Summary of our proposed Remuneration Policy

Element Key features of operation of proposed Policy How we will implement for 2025 Link to strategy Link to strategy

Salary, benefits and pension • Salary increases and pension contribution

set in context of wider workforce

• Salaries and benefits set competitively

against peers

• 4% salary increase, in line with wider UK

workforce for the CEO. For the CFO, to

reflect the increase in scope and

complexity of the CFO role, an additional

salary increase of 5% on top of the wider

workforce increase of 4% has been

awarded

• Pension contribution, or equivalent cash

allowance, currently 10% of salary in line

with the wider workforce in the UK

• To enable the total package to support

recruitment and retention

Annual bonus (APP) • Target bonus of 120% of salary for CEO

and 100% for CFO

• One-third deferred into awards over

Reckitt shares for three years

• Malus and clawback provisions apply

• Targets set for net revenue and adjusted

profit before income tax

• NWC target to act as a downward

modifier

• Threshold performance results in zero

payout, with maximum of 3.57x target for

truly exceptional performance on all

three metrics

• Remuneration Committee assessment of

performance in the round

• To drive strong performance, with

significant reward for overachievement

of annual targets linked to Reckitt’s

strategic priorities

• Use of deferral for longer-term

shareholder alignment

LTIP

Performance shares and

performance share options

• Three-year performance period and

two-year holding period

• Malus and clawback provisions apply

• Options have approximately seven years

to exercise post vesting

• Targets set for LFL net revenue growth

(40% weighting); ROCE (25% weighting);

relative TSR (25% weighting);

Sustainability (10% weighting)

• Performance conditions are applied to

both performance share options and

performance shares

• Remuneration Committee assessment of

performance in the round

• To incentivise and reward long-term

performance and align the interests of

Executive Directors with those of

shareholders

• Two-year holding period for longer-term

shareholder alignment

Shareholding requirements • Period of eight years from appointment

to achieve

• Two-year shareholding requirement post

departure

In-employment shareholding requirement:

• CEO: 200,000 shares

• CFO: 100,000 shares

Post-employment shareholding requirement

equal to the lower of 50% of the in-

employment requirement or their actual

shareholding on departure

• Promotes long-term alignment with

shareholders

• Promotes focus on management of

corporate risks

Purpose and culture

fit for the future

Excellent brand portfolio

for value creation

Scaled global

footprint

Enhanced returns

to shareholders

Link to strategy

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101

Directors’ Remuneration Report continued

Summary of performance and payout

Annual performance plan

The performance outcome for the annual bonus was 65% of maximum. A third of the bonus is

deferred, by way of an award over Reckitt shares.

Performance measure

Threshold

(zero bonus) Actual/Achieved

Maximum

(3.57x target) Multiplier

Net Revenue (NR)

growth

<£14.26bn £15.13bn

1.22x

Adjusted profit before

income tax

<£2.90bn £3.29bn

1.89x

Average Net Working

Capital (NWC)

-5.5% -7.5%

1.00x

Total 2.31x

Achieved

2024 base

salary

(£)

Target

bonus

opportunity

(% of salary)

Multiplier

achieved

Bonus

payout

(% of max)

Value

delivered

in cash

(£)

Value

deferred

into shares

(£)

Kris Licht 1,100,000 120% 2.31x 65% 2,032,800 1,016,400

Shannon Eisenhardt 760,000 100% 2.31x 65% 1,170,400 585,200

Jeff Carr

190,000 100% 2.31x 65% 292,600 146,300

1 The 2024 base salary for Jeff Carr is pro-rated for the period served as Executive Director

LTIP

The 2022 LTIP vested at 68% of maximum, against the performance conditions over the

three-year period.

Performance measure

Threshold

(20% vesting) Achieved

Maximum

(100% vesting)

Vesting (% of

total award)

LFL net revenue growth

(3-year CAGR)

(40%weighting)

2.0% p.a. 5.0% p.a.

81%

ROCE (final year)

(25%weighting)

13.2% 15.2%

100%

Relative TSR

(25% weighting)

Median

Upper

Quartile

ESG % NR from more

sustainable products

(final year)

(5% weighting) 30% 33%

100%

ESG % reduction in GHG

emissions (final year)

(5% weighting)

65% 69%

100%

Total vesting 68%

Achieved

Performance

options

granted

Performance

granted

Total

vesting

Performance

options

vesting

Performance

vesting

Total value

of award

vesting

(£)

Kris Licht

80,000 43,533 68% 54,400 29,602 1,415,272

Jeff Carr

60,000 32,650 68% 40,800 22,202 1,061,478

Shannon Eisenhardt did not participate in the 2022 LTIP.

1 Kris Licht’s LTIP award was granted in relation to his previous role which did not sit on the Board, however, the full value

oftheaward has been shown for transparency

2 Based on the average closing share price in Q4 2024 of £47.81

3 Jeff Carr’s 2022 LTIP has been pro-rated for the period employed

4 Performance shares include dividend equivalents accrued over the performance period

Actual £3.32bn

Actual -7.9%

Actual £14.81bn

Actual 4.3% p.a.

Actual 15.3%

Actual 34.9%

Actual 69.4%

<Median

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102

Directors’ Remuneration Report continued

2024 single figure

Fixed remuneration Annual bonus (cash) Annual bonus (shares) LTIP Buyout

Shareholding of Executive Directors compared to requirements

The bar chart below illustrates the Executive Directors’ shareholding compared to the Company’s

shareholding requirements. Executives have a period of eight years from appointment to achieve

the requirements of 200,000 shares for the CEO and 100,000 for the CFO. Both Executive Directors

are showing expected progress towards meeting these requirements as reflected below:

Shares held

Shares deferred from annual bonus 2024

2025 vesting

1 Current shareholding value based on the average closing share price in Q4 2024 of £47.81

2 Includes shares owned outright and shares subject to post-vesting holding restrictions

3 This is the estimated number of shares awarded, after tax under the Deferred Bonus Plan, including those to be deferred from

the 2025 APP

4 For Kris Licht this is the number of shares vesting in May 2025 under the 2022 LTIP, estimated after tax. For Shannon Eisenhardt

this is the number of shares vesting in August 2025 granted as buyout awards, estimated after tax. Both include

dividendequivalents

Remuneration Committee governance

Committee membership and meeting attendance

The Chief Human Resources Officer was Secretary to the Committee throughout the year. Meetings

were also attended by the CEO, CFO and SVP Reward by invitation. Deloitte was the appointed advisor

to the Committee throughout the year. Members of the Remuneration Committee and any person

attending its meetings do not participate in any discussion or decision on their own remuneration.

The Committee’s role and key activities during the year

The Committee’s purpose is to assist the Board of Directors in fulfilling its oversight responsibility

by ensuring that the Remuneration Policy and practices reward fairly and responsibly, are designed

to support the strategy and long-term success of the Company and take account of the generally

accepted principles of good governance.

The key activities and decisions made by the Committee during the year are set out below:

Changes to the Board and GEC

Approved remuneration arrangements for appointments to the GEC.

Directors’ Remuneration Policy

Finalised proposals for the 2025 Executive Director Remuneration Policy, including performance

measures and other amendments to policy.

Reviewed feedback from shareholder consultation on the Directors’ Remuneration Policy.

Agreed shareholder consultation process and content.

Wider workforce

Agreed changes to wider workforce remuneration arrangements as part of the Remuneration

Policy review.

Reviewed current shareholdings and share ownership requirements for senior employees with

share ownership requirements.

Reviewed wider workforce initiatives.

Performance outcomes and target setting

Reviewed and approved performance outcomes to 2023 annual bonus and 2021–2023 LTIP, taking

into account wider performance of the Company and Executive Directors.

Approved 2025 annual bonus measures and targets and 2025 LTIP award and performance

measures. Approved 2024 LTIP performance targets.

Determined 2025 remuneration packages for the Executive Directors and GEC members.

Regularly reviewed performance for inflight bonus and LTIP awards.

Internal and external governance

Reviewed 2024 AGM voting, wider market trends, shareholder guidelines and corporate

governance updates.

Reviewed Remuneration Committee terms of reference.

Reviewed Remuneration Committee effectiveness.

Jeff Carr

Shannon Eisenhardt

Kris Licht

£1.71m

£3.01m

£5.81m

0 1 2 73 4 5

0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 200,000120,000 140,000

Shannon

Eisenhardt

Kris Licht

£4.11m

Shareholding

requirement

Current

shareholding

£0.71m

Shareholding

requirement

Current

shareholding

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103

Directors’ Remuneration Report continued

Directors’ Remuneration Policy

This section of the report sets out the Remuneration Policy for Executive Directors and Non-Executive Directors, which shareholders will be asked to approve at the 2025 AGM on 8 May 2025 and,

ifapproved, will take effect from this date. Until this time, the Policy approved by shareholders on 20 May 2022 will continue to apply.

The Committee has undertaken a thorough review of the remuneration arrangements over the course of the last year. Input was received from Remuneration Committee members, the Chair of the

Board, other Non-Executive Directors and management (including the CEO, CFO, CHRO), and other key stakeholders, whilst ensuring that conflicts of interest were suitably mitigated. Input was also

provided by the Committee’s appointed independent advisors throughout the process. The Committee believes that the current Policy remains fit for purpose and supports our updated strategy.

Therefore there are no structural changes to the Policy. Minor changes have been made to the Policy to clarify its intentions.

The previous Policy received strong support from shareholders with a vote of 92% in favour. As part of this Policy review, the Committee consulted with shareholders representing over 40% of Reckitt’s

ownership as well as key proxy advisors. The Committee was pleased to note that overall, shareholders were supportive of the Policy.

Executive Director Remuneration Policy Table

Fixed pay policy for Executive Directors

Component purpose and link to strategy Operation Opportunity

Base salary

To enable the total package to

support recruitment and retention

Base salaries are normally reviewed annually, typically with effect from

1January. An exceptional review may take place to reflect a change in the scale

or scope of a Director’s role.

Salary levels/increases take account of a number of factors including (but not

limited to):

• Salary increases awarded across the Group as a whole

• Individual performance

• Scope of the role and experience

The Committee also currently reviews market data for the FTSE30 excluding

financial services and a global sector peer group.

Salary increases for Executive Directors will not normally exceed those of the

wider workforce.

Increases may be made above this level to take account of individual

circumstances, which may include (but are not limited to):

• Increase in the size or scope of the role or responsibilities

• Increase to reflect the individual’s development and performance in the role –

for example, where a new incumbent is appointed on a below-market salary

• A significant change in the market competitiveness of salary

Salaries in respect of the year under review (and for the following year) are

disclosed in the Annual Report on Remuneration.

Where increases are awarded in excess of those to the wider employee

population, the Committee will provide the rationale in the relevant year’s

Annual Report on Remuneration.

Pension

To provide appropriate levels of

retirement benefit

Executive Directors may receive contributions into a defined contribution

pension scheme, a cash allowance or a combination thereof.

Base salary is the only element of remuneration that is pensionable.

The maximum pension contribution or allowance for Executive Directors will

normally be in line with that available to UK employees or to participants in the

country where they are employed, if different. Contributions are currently set at

10% of salary, in line with the current UK employee contribution rate.

Benefits

To enable the total package to

support recruitment and retention

Executive Directors receive benefits which consist primarily of the provision of

a company car/allowance, healthcare and tax support including preparing tax

returns, although the package can include other benefits that the Committee

deems appropriate, for example, (but not limited to) the cost of legal fees.

The provision of a car and driver for business use includes travel from home to

office.

Relocation allowances and international transfer-related benefits may also be

paid, where required.

Where appropriate, benefits may include any tax thereon.

Executive Directors are also eligible to participate in all-employee share plans

on the same basis as all employees.

Whilst there is no maximum level of benefits prescribed, they are generally set

at an appropriate market-competitive level determined by the Committee.

Benefits in respect of the year under review, and participation in the all-

employee share plans, are disclosed in the Annual Report on Remuneration.

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Directors’ Remuneration Report continued

Variable pay policy for Executive Directors

Component purpose and link to strategy Operation Opportunity Performance measures

Annual bonus

To drive strong performance, with

significant reward for

overachievement of annual targets

Use of deferral for longer-term

shareholder alignment

Targets are typically set by the Committee

around the start of the year. At the end of the

year, the Committee determines the extent to

which these have been achieved.

Performance is normally assessed on an annual

basis.

Normally one-third of bonus payouts are

deferred into share awards (in the form of

options or conditional awards) for a period of

three years.

The Committee has discretion to adjust the

formulaic bonus outcomes both upwards and

downwards (including to zero) to ensure

alignment of pay with performance.

Annual bonuses and deferred bonus awards are

subject to malus and clawback provisions.

Maximum target opportunity: 120% of salary

Maximum opportunity of 3.57x target (428% of salary)

2025 target opportunity

• CEO: 120% of salary

• CFO: 100% of salary

2025 maximum opportunity

• 3.57x target

• CEO: 428% of salary

• CFO: 357% of salary

Dividend equivalents accrue on deferred share awards

during the deferral period.

Performance measures may be a mix of financial,

non-financial and/or individual measures. For 2025

the bonus is based on 100% financial measures.

Financial performance will be assessed against

one or more key metrics of the Business

determined on an annual basis.

The weighting between different metrics will be

determined each year according to Business

priorities.

For performance below threshold, the bonus

payout will be nil.

Further details, including the performance

measures for the current financial year, are

disclosed in the Annual Report on Remuneration.

LTIP (performance share options

and performance share awards)

To incentivise and reward long-term

performance, and align the interests

of Executive Directors with those

ofshareholders

The LTIP comprises grants of performance share

options and/or performance share awards

(based on a fixed number), which vest subject

to the achievement of stretching performance

targets.

Awards will normally be granted annually with a

performance period of at least three years.

Additionally, there is normally a two-year holding

period following the end of the performance

period.

The performance conditions are reviewed

before each award cycle to ensure they remain

appropriately stretching.

The Committee has discretion to adjust the

formulaic LTIP outcomes both upwards and

downwards (including to zero) to improve the

alignment of pay with performance.

Awards granted under the LTIP are also subject

to malus and clawback provisions.

The Committee normally calibrates LTIP share and option

grant sizes as a fixed number to provide full alignment

with investors, with a robust adjustment mechanism in

place to ensure that the value of an Executive Director’s

total remuneration is appropriate.

The award size is determined by the Committee taking

into account performance, the prevailing share price,

market data and our pay positioning philosophy.

Notwithstanding the above, the normal limit on the

number of options and shares that can be granted to an

individual in respect of any financial year will be 200,000

options and 100,000 shares (and 300,000 options and

150,000 shares in exceptional circumstances). Details of the

LTIP opportunity in respect of each year will be disclosed

in the Annual Report on Remuneration.

Dividend equivalents may accrue on performance share

awards that vest. Neither dividends nor dividend

equivalents accrue on unvested or vested performance

share options before they are exercised.

Performance measures may be a mix of financial

and non-financial measures (including

Sustainability). For 2025 the LTIP is based on 90%

financial measures and 10% on Sustainability

measures.

Threshold performance will normally result in 20%

of maximum vesting. The vesting level will

increase on a sliding scale from this threshold to

100% vesting for stretch levels of performance.

Further details, including the performance targets

attached to the LTIP in respect of each year, are

disclosed in the Annual Report on Remuneration.

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Directors’ Remuneration Report continued

Notes to the Policy Table

Performance measure selection and approach to target setting

The measures used under the annual bonus are selected to reflect the Group’s main priorities for

any given financial year. With regard to the LTIP, the Committee regularly reviews the performance

measures to ensure that they align well with the Company’s strategy and with our shareholders’

interests. A combination of net revenue growth, ROCE, relative TSR and Sustainability are

considered the most appropriate 2025 LTIP performance measures for a number of reasons:

• They are aligned to the Company’s strategicpriorities

• They combine a focus on top-line growth and profitability, also capturing how efficient profit

generation has been

• They provide well-recognised and accepted measures of the Company’s underlying financial

performance

• They include focus on shareholder valuecreation

• They provide a link to our 2030 Sustainability Ambitions

• They are measures that the plan participants can directly impact

Targets applying to the bonus and LTIP are reviewed annually, based on a number of internal and

external reference points including the internal business plan, shareholder expectations, and

market practice.

Malus and clawback

The Committee has the discretion to apply malus and/or clawback in the event of the following

circumstances in relation to awards under the annual bonus, Deferred Bonus Plan or the LTIP in the

circumstances set out in the relevant plan rules and award documentation which currently

includes:

• A material misstatement of the Company’s financial results

• Gross misconduct by a participant (or serious misconduct in relation to malus). This includes

reputational damage as a result of the misconduct

• An erroneous calculation in assessing the number of shares subject to an award or the payout/

vesting outcome

• Corporate failure of the Company

In these circumstances, the Committee may adjust the amount of cash bonus payable and/or

operate clawback of the annual bonus for up to three previous years. Deferred bonus awards are

subject to malus and clawback until the third anniversary of grant and the clawback period

applicable to LTIP awards ends on the fifth anniversary of the date of grant.

Shareholder alignment

The Committee recognises the importance of aligning Executive Directors’ and shareholders’

interests through executives building up significant shareholdings in the Company. Executive

Directors are expected to acquire a significant number of shares over a period of eight years and

retain these until retirement from the Board of Directors.

The shareholding requirement for the CEO is currently 200,000 shares and for the CFO is currently

100,000 shares. The shareholding requirement for new Executive Directors will be determined at

the time of appointment, taking into account a number of factors, including (but not limited to) the

LTIP award levels, share price at the time of appointment and market practice. Details of the

Executive Directors’ personal shareholdings will be provided in the Annual Report

onRemuneration.

A formal post-employment shareholding requirement applies to Executive Directors. They are

required to hold the lower of 50% of their shareholding requirement or their actual shareholding at

departure, for a period of two years. The Committee is of the view that this is appropriate on the

basis that the in-employment requirements are amongst the highest when compared to other

UK-listed companies.

The Committee retains discretion to amend the shareholding requirements in exceptional

circumstances (for example, in the case of ill health).

Remuneration Policy for other employees

Reckitt’s approach to setting remuneration is consistent across the Group, with consideration

given to the level of experience, responsibility, individual performance and remuneration paid for

comparable roles in comparable companies. Reckitt is committed to fair and consistent reward

policies for its employees, aligned with our Compass, remuneration philosophy and ourculture.

The principles that apply to Executive Directors are cascaded to other employees. Currently,

approximately 16,000 employees are eligible to participate in an annual bonus scheme with similar

metrics to those used for the Executive Directors, in order to drive alignment and a focus on

results. Opportunities and specific performance conditions vary by organisational level, with

business area-specific metrics incorporated where appropriate. The Group Leadership Team is

also required to build up significant shareholdings in Reckitt. The current shareholding requirement

levels are between 7,200 and 40,000 shares which generally represents between c.1x to 4x base

salary. Senior managers who comprise c.500 employees are eligible to participate in the LTIP with

performance conditions the same as the Executive Directors, although award sizes vary by

organisational level. For 2025 we are reducing the short-term leverage for our middle managers

and increasing the long-term incentives with an award of restricted shares to further enhance our

culture of ownership.

All UK employees are eligible to participate in the Company’s all-employee share plans on identical

terms, with similar plans also operated for employees working outside of the UK.

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Directors’ Remuneration Report continued

Legacy arrangements and other terms

The Committee reserves the right to make any remuneration payments and payments for loss of

office (including exercising any discretions available to it in connection with such payments)

notwithstanding that they are not in line with the Policy set out in this report where the terms of

the payment were agreed (i) before the Policy came into effect (provided that the commitment to

make the payment complied with any applicable Remuneration Policy of the Company at the time

it was agreed) or (ii) at a time when the relevant individual was not a Director of the Company. For

these purposes ‘payments’ includes the Committee satisfying awards of variable remuneration,

and an award over shares is ‘agreed’ at the time the award is granted.

The Committee may make minor amendments to the Policy to aid its operation or implementation

without seeking shareholder approvals (e.g. for regulatory, exchange control, tax or administrative

purposes or to take account of a change in legislation) provided that any such change is not to the

material advantage of the Director.

All discretions available under share plan rules will be available under this Policy, except where

explicitly limited under this Policy. Share awards can be settled in cash or ADRs at the discretion of

the Committee. The Committee may waive or change performance conditions in accordance with

its terms or if the Board considers it reasonable and appropriate. The same principles apply to the

annual bonus scheme.

In the event of a variation of capital in the Company which impacts the value of a share, which may

include, but is not limited to, a capitalisation or rights issue, consolidation, subdivision or reduction

of capital, stock-split or demerger, then:

• The maximum number of share awards and options which may be granted under the LTIP may

be adjusted to ensure that the overall maximum value of awards would be the same

immediately before and after any such event

• The maximum number of shares subject to an award granted under the LTIP or the Deferred

Bonus Plan, the option price (where applicable), and the performance condition may be adjusted

in accordance with the rules of the plan, as the Committee considers appropriate

Non-Executive Director remuneration

Non-Executive Directors do not have service agreements but are engaged on the basis of a letter

of appointment. In line with the UK Corporate Governance Code guidelines, all Directors are

currently subject to re-election annually at the AGM.

It is the policy of the Board of Directors that Non-Executive Directors are not eligible to participate

in any of the Company’s bonus, long-term incentive or pension schemes. An element of the basic

fee is, however, currently paid in Reckitt shares.

Details of the policy on fees paid to our Non-Executive Directors are set out in the table below:

Component and objective Approach of the Company

Fees (cash

andshares)

To attract and retain

Non-Executive

Directors of the

highest calibre with

broad commercial

experience relevant

tothe Company

The fees paid to Non-Executive Directors are determined by the Board of

Directors, with recommendations provided by the Chair of the Board and

CEO. The fees of the Chair of the Board are determined by the

Remuneration Committee.

Additional fees may be payable for acting as the Senior Independent

Non-Executive Director, as Chair and/or a member of a Committee or for

other additional responsibilities or increased time commitments on a

one-off or ongoing basis (including the Designated NED for engagement

with the Company’s workforce).

Fee levels may be reviewed annually, with any adjustments normally

effective from 1 January. Fees are reviewed by taking into account

external advice on best practice and competitive levels, in particular at

FTSE 30 companies. Time commitment and responsibility are also taken

into account.

Non-Executive Director fees are normally delivered partly in cash and

partly in Reckitt shares or equivalent (e.g. ADRs) which must normally be

held until leaving the Company. The fees paid to the Chair of the Board

and Non-Executive Directors in respect of the year under review (and for

the following year), including the split between cash and shares, are

disclosed in the Annual Report on Remuneration.

Aggregate fees are limited by the Company’s Articles of Association.

Travel and expenses for Non-Executive Directors (including the Chair of

the Board) are incurred in the normal course of business, for example, in

relation to attendance at Board and Committee meetings. The costs

associated with these are all met by the Company. The Company may also

cover any additional costs incurred in association with the role (including

tax thereon), for example in relation to providing tax support including tax

return assistance to Non-Executive Directors.

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Directors’ Remuneration Report continued

Scenarios of total remuneration

The charts below provide an estimate of the potential future total remuneration for the Executive

Directors. Four scenarios of potential outcomes are provided based on underlying assumptions

shown in the notes to the chart.

CEO

CFO

Salary, pension and benefits Annual bonus Long-term incentives

1 Excluding share price growth

2 Including 50% share price growth

Notes

The scenarios in the chart above have been calculated on the following assumptions:

The ‘Minimum’ scenario reflects base salary, pension and benefits (i.e. fixed remuneration), being the only elements of the

Executive Directors’ remuneration package not linked to performance. This is based on the base salary and pension allowance

asat 1 January 2025 and an illustrative value of the benefits, based on amounts paid in 2024, excluding one-off benefits.

The ‘On-target’ scenario illustrates fixed remuneration as above, plus target payout of annual bonus and threshold vesting of the LTIP.

The ‘Maximum excluding 50% share price growth’ scenario sets out fixed remuneration, plus full maximum payout of the annual

bonus and full vesting of the LTIP awards.

The ‘Maximum including 50% share price growth’ scenario sets out fixed remuneration, plus full maximum payout of the annual

bonus, full vesting of the LTIP awards and 50% share price growth.

As LTIP awards are set as a fixed number of shares and options, the LTIP value is based on the number of shares and share options

to be granted to the Executive Directors in 2025. The value has been calculated using the three-month average share price to the

end of 2024 of £47.81. Under the disclosure requirements the first three scenarios above exclude share price appreciation; share

options have therefore been valued using a Black-Scholes option pricing model with assumptions aligned to the expected life of

the options, at 15% of the assumed share price at grant. The final scenario includes a 50% share price growth assumption, over the

performance period, in line with legislation. It should be noted that if the share price appreciation over the performance period is

greater than that assumed then the actual total remuneration may be more than that shown in the above charts.

External appointments

With the approval of the Board of Directors in each case, and subject to the overriding

requirements of the Company, Executive Directors may accept external appointments as

aNon-Executive Director of another Company and retain any fees received.

Consideration of conditions elsewhere in the Company

Across Reckitt, remuneration is reviewed regularly with the intention that all employees are

paidappropriately in the context of their local market and given their role, experience and

performance. The Company seeks to promote and maintain good relations with employee

representative bodies – including trade unions and works councils – as part of its employee

engagement strategy, and consults on matters affecting employees and business performance

asrequired in each case by law and regulation in the jurisdictions in which the Company operates.

The Company publishes annually to all employees details of executive remuneration and also

invites employees to ask any questions or provide any feedback they may have on the topic. As

part of the recent review of remuneration arrangements and in the development of the Directors’

Remuneration Policy over the past year, the Committee took into account the views of a selection

of our employees. Our NED with designated responsibility for workforce engagement, Elane Stock,

also met with various groups of colleagues over the year to discuss a variety of topics, with

feedback received presented to the Board.

The Committee reviews the overall pay framework of the Group including internal relativities,

gender pay and participation in all-employee share plans. The Company encourages share

ownership amongst employees.

Consideration of shareholder views

The Committee considers shareholder views received during the year and at the Annual General

Meeting each year, as well as guidance from shareholder representative bodies more broadly, in

shaping the Remuneration Policy. The Committee Chair speaks with many of the Company’s

largest shareholders on the subject of executive remuneration and the Committee is grateful for

all of the feedback which is provided. As set out in the Chair’s Letter, in developing this Policy,

theCompany received the benefit of feedback or engagement with approximately 40% of

Reckitt’s ownership as well as key proxy advisors. The vast majority of shareholders that we

engaged with were supportive of the Company’s philosophy and policy on remuneration, and the

Committee will continue to keep its Remuneration Policy under regular review, to ensure it

continues to reinforce the Company’s long-term strategy and aligns closely with shareholders’

interests. The Committee will continue to consult our major shareholders before making any

significant changes to our Remuneration Policy.

Maximum

Target

Minimum

£6.6m

£2.4m

£1.0m

22%

40%

£0.0m £9.1m

100%

34%44%

45%16%

Maximum

£9.1m

56%

33%12%

Maximum

Target

Minimum

£11.7m

£3.9m

£1.4m

28%

46%

£0.0m £16.7m

100%

36%36%

42%12%

Maximum

£16.7m

62%29%8%

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Directors’ Remuneration Report continued

Approach to recruitment remuneration

External appointment

In cases of hiring or appointing a new Executive Director from outside the Company, the

Remuneration Committee may make use of all existing components of remuneration, as follows:

Component Approach

Base salary The base salaries of new appointees will be determined by reference to

relevant market data, experience and skills of the individual and internal

relativities. Where new appointees have initial base salaries set below market,

or below the previous incumbent’s salary, the shortfall may be managed with

subsequent increases subject to their development in the role.

Pension The maximum pension contribution or allowance for new appointees will

normally be in line with that available to UK employees or to participants in the

pension plan relevant to the country where they are employed, if different. For

UK employees this is currently 10% of base salary.

Benefits New appointees will be eligible to receive benefits which may include (but are

not limited to) the provision of a car allowance or car and driver, healthcare

and any necessary relocation expenses or allowances in line with the ongoing

Remuneration Policy (including tax thereon).

Annual bonus The structure described in the Policy Table will apply to new appointees with

the relevant maximum opportunity.

LTIP New appointees will be granted awards under the LTIP with a structure in line

as described in the Policy Table. LTIP grants can take the form of performance

share awards, performance share options or a combination of the two.

The overall limit of variable remuneration will be as set out in the Policy Table, taking into account

the maximum value of the annual bonus and the maximum awards of options and share awards

under the LTIP.

The Committee may make awards in respect of a new appointment to ‘buy-out’ remuneration

arrangements forfeited on leaving a previous employer or engagement, including by utilising

Listing Rule 9.4.2, i.e. over and above the approach outlined in the table above. In doing so, the

Committee will consider relevant factors including any performance conditions attached to any

forfeited awards and the likelihood of those conditions being met, with the intention that the value

awarded would be no higher than the expected value of the forfeited arrangements and would

be made on a like-for-like basis.

Internal promotion

In cases of appointing a new Executive Director by way of internal promotion, the policy will

beconsistent with that for external appointees, as detailed above; except that where an individual

has contractual commitments made prior to their promotion to Executive Director level, the

Company will continue to honour these arrangements even in instances where they would

nototherwise be consistent with the prevailing Directors’ Remuneration Policy at the time

ofappointment.

Recruitment of a new Non-Executive Director

In recruiting a new Non-Executive Director, the Remuneration Committee will normally use the

policy as set out in the table on page 106. A base fee in line with the prevailing fee schedule will

bepayable for membership of the Board of Directors, with additional fees payable for acting as

Senior Independent Non-Executive Director, as Chair or member of a Committee, or for other

additional one-off or ongoing responsibilities (including the Designated NED for engagement

withthe Company’s workforce). Fees will normally be delivered partly in cash and partly in Reckitt

shares to be held until retirement from the Company.

The fee for a new Non-Executive Chair of the Board will be set with reference to the time

commitment and other requirements of the role and the experience of the candidate. To provide

context for this decision, appropriate market data would also be referenced.

Other elements may be included in the following circumstances:

• An interim appointment being made to fill an Executive Director role on a short-term basis

• If exceptional circumstances require that a Non-Executive Director takes on an executive

function on a short-term basis

Service contracts and exit payment policy

Executive Director service contracts, including arrangements for early termination, are carefully

considered by the Committee. In accordance with general market practice, each of the current

Executive Directors has a rolling service contract which is terminable on 12 months’ notice and it

isexpected this practice will also apply for any new Executive Directors. In such an event, the

compensation commitments in respect of their contracts could amount to up to one year’s

remuneration based on base salary and benefits in kind, and pension rights, during the notice

period. Termination payments may take the form of payments in lieu of notice and/or provision

ofbenefits. In appropriate circumstances, the Committee may agree that certain benefits (such

asmedical insurance and tax support) may be continued following termination of employment.

The Company may provide a leaving gift for a departing Director (including payment of any tax

thereon) where the Committee feels that it is appropriate to do so and the value of any gift is

proportionate and not excessive. Copies of Executive Director service contracts are available

toview at the Company’s registered office.

The Committee may agree exit payments in connection with a Director’s cessation of office

oremployment where the payments are made in good faith in discharge of an existing legal

obligation (or by way of damages for breach of such an obligation) or in settlement of any claim

arising in connection with the cessation of a Director’s office or employment. This may include

theprovision of outplacement support. The Group may also pay reasonable fees for a departing

Director to obtain independent legal advice in relation to their termination arrangements and

nominal consideration for any agreement to any contractual terms protecting the Company’s

rightsfollowing termination.

The Company’s policy on any termination payments is to consider the circumstances on a case-by-

case basis, taking into account the relevant contractual terms in the Executive’s service contract

and the circumstances of the termination. The table overleaf summarises how awards under the

annual bonus (including deferred bonus awards) and LTIP are typically treated in specific

circumstances, with the final treatment remaining subject to the Committee’s discretion as

provided under the rules of the plan.

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Directors’ Remuneration Report continued

Reason for cessation Timing of vesting/payment Calculation of vesting/payment

Annual bonus

Voluntary resignation or termination with ‘cause’ Not applicable. No bonus to be paid for the financial year.

All other circumstances Following the end of financial year. Bonuses will be paid only to the extent that the objectives have been met. Any

such bonus will normally be paid on a pro-rata basis up to the termination date

and will typically be subject to deferral requirements where applicable.

Deferred bonus share awards

Voluntary resignation or termination with ‘cause’ Not applicable. Unvested awards lapse, unless the Committee, in its discretion, decides

otherwise.

All other circumstances Subject to the original time horizons, unless the Committee, at its

discretion, decides these will vest on cessation of employment.

Awards vest in full.

LTIP

Gross misconduct Not applicable. Unvested awards normally lapse. Vested but unexercised options lapse. Vested

share awards and any awards or shares in the holding period are normally

retained on the terms of the LTIP, with the holding period continuing to apply

(unless the Committee decides that they will be released early).

Any other reason except those set out below.

Ill health, injury, permanent disability, retirement

with the agreement of the Company, the

participant’s employing entity ceasing to be

under the control of the Company, transfer of the

undertaking in which the participant works

outside the Group, redundancy or any other

reason that the Committee determines in its

absolute discretion.

Awards will vest in line with the original performance, vesting and

holding periods (unless the Committee decides that they will be

released early, in the case of awards in the holding period).

Unvested awards normally vest based on the extent to which performance

conditions have been achieved (and subject to adjustment of formulaic outcomes

as described above) and reduced to reflect the proportion of the performance

period worked. The holding period will normally still apply.

Death As soon as practicable after date of death (which could be at the

end of the relevant financial year). No holding period will apply.

Unvested awards will normally vest as soon as practicable after date of death,

and, unless the Committee deems otherwise, will normally be subject to the

performance condition (and to adjustment of formulaic outcomes as described

above) and reduced to reflect the proportion of the performance period worked.

Change of control On change of control. Awards will vest to the extent that any performance conditions have been

satisfied and subject to adjustment of formulaic outcomes as described above

(unless the Committee determines otherwise). Awards will also normally be

reduced to take into account the proportion of the performance period not

completed, unless the Committee decides otherwise.

Awards may alternatively be exchanged for new equivalent awards in the

acquirer or another Company where appropriate.

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110

Directors’ Remuneration Report continued

Annual Report on Remuneration

The rest of this report sets out how we have implemented our Remuneration Policy in 2024, and

how weintend to implement the Policy in 2025.

2024 performance and remuneration outcomes

In reviewing Executive Director remuneration, the Remuneration Committee took into account

remuneration decisions for the wider workforce and individual performance of the Directors. The

Committee also reviewed market practice, primarily against the FTSE 30 (excluding financial

services companies) and considered an international remuneration peer group which Reckitt

competes with for talent and is subject to similar market forces. Operationally, the international

peer group is representative of the three Reckitt product categories of Hygiene, Health and

Nutrition. This comprises 22 companies as follows: Abbott Laboratories, Bayer, Campbell Soup,

Church and Dwight, Clorox, Coca-Cola, Colgate, Danone, GSK, Haleon, Henkel, Johnson & Johnson,

Kellanova, Kimberly-Clark, Kraft Heinz, Nestlé, Novartis, PepsiCo, Pfizer, Procter & Gamble, Sanofi

and Unilever. This peer group is also used to benchmark remuneration for the GEC.

Assessment of incentive outcomes

The Committee thoroughly evaluates the performance of both the Company and the Executive

Directors in the round to assess whether the formulaic level of annual bonus payout and long-term

incentive vesting are appropriate and justified. The Committee has formalised its approach to this

assessment andthe framework which is applied is illustrated below.

What is the formulaic outcome?

Committee to consider year-on-year change, whether this reflects performance trend

andimpactonthesingle figure outcome.

Consider the quality of earnings

Committee to review the results to ensure they reflect the underlying performance and also consider any

exceptional items.

Compare outcome against the shareholder experience

Committee to consider absolute and relative shareholder return over the relevant periods, the dividend

payment(s) and the likely shareholder response to results based on broker feedback.

Compare outcome with overall Company performance

For example, market share, competitor benchmarking, sustainability, people and culture, strategic progress,

wider stakeholder experience and analyst feedback.

Consider any events and other input

For example, reputation/risk related, any change of accounting standards etc. Draw on input from CRSEC

Committee, Audit Committee and management functions and consider the impact of any external head or

tailwinds.

Compare with historical use of discretion

In addition, consider whether bonus and LTIP outcomes are consistent.

Final APP and LTIP outcomes

Committee to agree whether adjustments are required to formulaic results and determine

thefinaloutcomes for APP payouts and LTIP vesting.

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Directors’ Remuneration Report continued

Annual bonus in respect of 2024 performance

Executive Director 2024 bonus opportunity

In line with the Remuneration Policy, the CEO and the CFO target bonus opportunities are 120%

ofsalaryand 100% of salary, respectively. The bonus outcome and payout are calculated as follows:

• For each performance measure a target range is set

• A performance multiplier is calculated for each measure, calculated by the extent to which the

performance for that measure is achieved. These multipliers can be up to 1.89x for

outperformance ofthe stretching range set by the Committee. Net working capital is a

downward modifier only and the multiplier is capped at 1.00x target

• Three individual multipliers are then multiplied together

Net revenue

multiplier

(upto 1.89x)

Adjusted

profitbefore

tax multiplier

(up to 1.89x)

NWC modifier

(up to 1.00x)

Performance

multiplier

(Threshold = 0x;

target = 1.0x;

max = 3.57x)

• The total performance multiplier can range from zero for performance at threshold or below, to

3.57 for truly exceptional performance. The 3.57 multiplier will only be awarded if maximum

performance isachieved on all metrics (i.e. 1.89 x 1.89 x 1.00)

• This total performance multiplier is then applied to the target bonus opportunity to calculate the

overall formulaic bonus outcome. This is different to usual UK market practice whereby

performance measures are assessed independently and payment under one metric may result in

payout regardless of performance in other metrics. In Reckitt, the three measures combine to

give the resultant payout

Cash Shares

Base salary

Target bonus

Performance

multiplier

Final bonus

outcome

2/3

1/3

• The effect of the multiplicative approach means that a high-performance multiplier can only

beachieved for outperformance on both top-line and bottom-line performance, with excellent

management of working capital

• Similarly, underperformance in one of the performance metrics will reduce the overall bonus

payout, even in the case of outperformance of the rest

• For example, if we grow NR above the stretching requirement for maximum performance and

maintainan excellent level of NWC, but fail to meet the profit threshold, the bonus payout will

bezero(i.e. 1.89 x 0 x 1.00)

• One-third of any APP is deferred into an award over Reckitt shares, to strengthen alignment

withshareholders

2024 performance targets

The Remuneration Committee set targets for the Executive Directors prior to the 2024 financial

year. These were based on net revenue and adjusted profit before income tax, both measured in

GBP at a constant FX. NWC is also used as a downward modifier on both measures. All targets

were based on the business plan at the time, with reference also being made to external

expectations of performance and market practice of companies in a similar stage of the business

cycle to Reckitt. In setting the targets, the Committee also had regard to competitor performance.

2024 financial performance against APP targets

As stated earlier, the Committee has adjusted the 2024 bonus outturn for the impact of the

exceptional Mount Vernon tornado for all participants, including Executive Directors. No one could

have foreseen the tornado that hit our storage facility and the logistical impact, and therefore this

adjustment was made to ensure that underlying performance was measured in a fair and

consistent manner.

LFL NR performance for the year resulted in £14.81 billion (on a constant FX basis and after

adjustment), which is between threshold and maximum performance, measured against our

stretching target range.

We achieved £3.32 billion adjusted profit before income tax (on a constant FX basis), driven by

year-on-year margin expansion which resulted in EPS growth of 7.9%. Our profit before tax

performance outperformed the target range and resulted in a maximum multiplier.

Average Net Working Capital (NWC) was -7.9%, exceeding the target range and also resulting in

the maximum multiplier. The NWC metric for APP purposes is an Operating NWC and is calculated

as a 12-month average.

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112

Directors’ Remuneration Report continued

The chart below illustrates performance compared to the targets:

Performance measure

Threshold

(zero bonus) Actual/Achieved

Maximum

(3.57x target) Multiplier

Net Revenue (NR)

(constant FX)

<£14.26bn £15.13bn

1.22x

Adjusted profit

beforeincome tax

(constant FX)

<£2.90bn £3.29bn

1.89x

Average Net Working

Capital (NWC)

-5.5% -7.5%

1.00x

Total 2.31x

Achieved

These results reflect a year of continued momentum, with top and bottom-line growth and strong

shareholder returns. Total diluted EPS was 349p in 2024, with free cash flow generation of £2,232

million, supporting £2,709 million cash returns to shareholders. Reckitt is well positioned today to

continue to deliver mid-single-digit growth in the medium term. With our proposed 5% increase in

our annual dividend, we continue to enhance returns to shareholders in line with our framework for

sustained value creation.

The overall formulaic bonus multiplier was 2.31x of target (65% of maximum).

Overall Group performance taken into consideration

As it does every year, the Committee thoroughly evaluated the performance of both the Group

and the Executive Directors in the round to assess whether the level of annual bonus payout is

both appropriate and justified. The framework that the Committee applies is set out on page 110

and more details including progress on delivery of the strategy, wider people, culture and

sustainability is provided below:

Strategic delivery

Portfolio value creation

• Moving at pace to reshape Reckitt as a

world-class consumer health and hygiene

organisation

• Significantly sharpened our brand portfolio

and moving to a simpler, more effective

organisation to maximise long-term value

for shareholders

Financial performance

• Delivered LFL net revenue growth within

revised full-year guidance range and grew

adjusted operating profit ahead of net

revenue, enabling EPS growth of 8%

Product superiority

• Ensured every brand has earned its place in

our portfolio by meeting our three

principles of value creation

• Invested in our brands and deepened their

equities through innovation, driving net

revenue growth from premiumisation of

our products

Win in market

• Equipped our organisation with better tools

and capabilities to enable our teams to

execute with excellence in market

• Boosted the agility of our US OTC supply

capabilities through commissioning a new

manufacturing facility in Wilson, North

Carolina

Fixed cost optimisation

• Expanded our cost efficiency initiatives in

our new Fuel for Growth programme,

which targets at least 300bps reduction in

our corporate fixed costs as we exit 2027,

from a 2023 baseline

• Delivered 90bps of fixed cost savings

inFY2024 through streamlining our

corporate functions

Enhancing returns to shareholders

• Committed to returning surplus cash to

ourshareholders through our dividend

andshare buyback programme

• Increased our dividend by 5%

• Returned £2.7 billion in cash to

shareholders, a 75% increase versus 2023

Market share

• Our competitive position in Health and

Hygiene has improved, 55% of top Category

Market Units held or gained share, with 15%

for Nutrition and 48% for the Group

Actual £3.32bn

Actual -7.9%

Actual £14.81bn

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113

Directors’ Remuneration Report continued

Sustainability

Purpose-led brands

• 34.9% net revenue from more sustainable

products, improved from 29.6% in 2023

• 13% reduction in product carbon footprint

vs 2015

• 8% recycled content in our plastic and 15%

reduction in virgin plastic packaging

• 24% reduction against target 65% product

chemical footprint reduction by 2030.

Reduction has been created by ongoing

R&D activity

Healthier planet

• 69% reduction in GHG emissions in

operations. We continue to surpass this

target for 65% reduction by 2030

• 100% renewable electricity purchased for

manufacturing, 96% of our electricity

comes from renewable sources

• Water efficiency: 6% against our target of

30% by 2025. We have focused more on

GHG emissions reduction

• Water stressed locations: Revisions in the

water stress mapping confirmed 16 sites in

2024, of which 2 (Hosur and Mysore) now

achieve neutrality. Programmes are in in

place in Mexico and Pakistan, with others

planned in South Africa and China.

• Waste: 23% reduction against our target of

25% by 2025; 100% zero waste to landfill

from manufacturing

Fairer society

• An inclusive culture where everybody is

treated fairly and equally

• Our teams represent the diverse places

where we work and the people we serve

• Gender balance at all management levels: 51%

• Achieved the Fair Wage Network Global

Living Wage Certification, confirming that

we pay all our employees above the living

wage globally

Wider stakeholder experience

Suppliers and external partners

• Partnered with the Fair Rubber Association

and Earthworm Foundation to improve the

livelihoods of smallholder latex farmers in

Thailand and protect the ecosystem

• In 2024, met target to pay the premium on

100% of the latex we buy

• Continued to invest in 1,000+ latex farmers

to deliver 15% increase in yield, 10%

improvement in quality and resistance to

plant diseases and significant increase in

incomes

• Worked with human rights organisation

Our Journey in Malaysia to complete a

mapping of human rights risks

• Continued partnership with the Sustainable

Agriculture Initiative’s Sustainable Dairy

Partnership, to collaborate with suppliers

and peers to work on 14 focus areas

thatwill make the dairy industry

moresustainable

• Continued to increase RSPO mass balance

certified volumes for fat blends and soap

noodles (palm oil commitment), aiming for

100%

• Integrated the WWF partnership within our

palm sourcing programme in Indonesia and

continued to fund the Earthworm

programmes in Indonesia and Malaysia

• Continued engaging our third-party

manufacturers through Manufacture 2030

to help them reduce their environmental

footprint through a series of innovative

projects and behavioural changes

• Established Supplier Sustainability

Standards in 2024 for selected raw

materials and packaging suppliers to

comply with, covering areas such as

Greenhouse Gas emissions, water,

andwaste

• Continued focusing on our program for

Human Rights and Responsible Workplace in

our own operations and as well at external

manufacturers and materials suppliers

• Running external Innovation partnership

program Partners to Innovate with keys

strategic suppliers

Customers and communities

Delivered improved execution with our

largest Global customers, driving product

availability enhancing communication and

customer satisfaction within key customers.

North America

• Improved instock and sales with our

largest customer. Specific wins include

reaching 97% instock at Walmart with

Mucinex. Delsym and Cepacol getting

on-shelf ahead of the season, putting our

consumers first

• Implemented Truckload Optimization in

Canada, saving 33 MT of CO

and $104k

CAD in freight costs, achieved best-in-

class strategic support with Walmart

andLoblaws

• Execution of eleven (11) promotional events

with Costco in a single month, achieving

arecord goal and delivering a 7% increase

in sales in the quarter as we sought out

new opportunities

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114

Directors’ Remuneration Report continued

Europe

• Established a permanent direct delivery

model in the UKI, achieving significant

and cost savings, and implemented

a collaborative forecasting program,

successfully launching all range reviews

with Tesco, building shared success

• Selected as a key partner in France

byCarrefour within the sustainability

program

Emerging Markets

• Improved service level with Panda in KSA

from 67% to 87%, conducted a Value

Chain Mapping workshop with Amazon

KSA, improving service levels from 71%

(2023) to 86% (2024), and received

prestigious awards from top customers,

including Nahdi’s Partner Award

Sales and Customer Partnerships

• Received multiple awards and customer

recognitions as a “partner of choice”

where 2024 was the point where

“Reckitt turned around last year and

they are happy with the improvements

that you’ve made” Walmart Merchant

• Additional positive feedback received

Albertsons, Kroger, Target, Walgreens,

and Amazon for strong partnerships and

innovative approaches, and selected as

the Rising Star Partner of the Year with

Office Depot for excellence in sales,

marketing, and collaboration

People and culture

Pay, recognition and benefits

Alongside the Remuneration Policy Review,

we refreshed our philosophy and principles,

now putting ‘rewarding the right behaviour’ at

the core of our remuneration strategy. We

made changes to our annual bonus plan

through the introduction of an individual

performance element, recognising both ‘what’

we do and ‘how’ we do it is key. In addition,

we expanded our LTIP offering to a wider

global population. From 2025 these colleagues

will be granted Reckitt shares balanced by

changes to their annual bonus. Our

rebalancing of remuneration reflects our

strategy and focus on long-term performance

and value creation.

We are proud to announce that in 2024,

Reckitt has achieved the Fair Wage Network

Global Living Wage Certification, confirming

that we pay all our employees above the living

wage in all locations, as defined by the Fair

Wage Network. This formal accreditation

solidifies our commitment to fair

compensation and equitable treatment. The

living wage accreditation is contained within

our “Sustainable Livelihoods” framework

which, in addition to compensation, promotes

health, equality, employment rights, financial

security, and career development, aligned

with our 2030 Sustainability Ambitions.

We also continue to be an accredited Living

Wage Employer and paying at least the Living

Wage to all our UK employees and contractors.

Following a successful pilot in Poland and the

United States in 2023, we have now extended

our pay equity analyses across our top 10

markets and European countries with very

positive results in 2024. Building on this

achievement, we are now preparing to

expand this initiative to all our global

marketsin 2025.

Our Gender Pay and Inclusion Report already

goes beyond the legal requirement, covering

Reckitt’s top 10 markets including the UK and

included a robust update on Inclusion progress.

The median gender pay gap in the UK is -9.1%.

In 2024, we have extended our private

healthcare insurance benefit, administered

byBupa, to include all colleagues at our UK

manufacturing sites. Previously, this benefit

was only available to office-based employees.

With this change, all UK employees are now

eligible to receive private healthcare insurance.

Diversity and Inclusion

Our Inclusion strategy focuses on People,

Brands, and Procurement, overseen by our

Global Inclusion Board. We implemented the

Global Equality Standard (GES) framework

globally and in five key markets (Mexico, India,

UK, US, and Brazil) starting their three-year

road maps in 2024.

The Reckitt ‘Leading inclusively’ programme

was launched at our Leadership Conference,

focusing on building diverse teams, active

listening, inclusive decision-making and

recognising individual contributions. We are

finalising plans to embed this philosophy and

way of working within our wider Learning and

Development curriculum in 2025.

Reckitt’s Conscious Inclusion programme

places an emphasis on our collective role in

creating an inclusive workplace. To date, over

12,300 people have engaged in online learning

and team-based conversations.

We submitted gender balance data to the ‘FTSE

Women Leaders’ Review. And participated in

the ‘Parker Review’ – the UK government’s

annual ethnicity-in-leadership census. At a

global level, and in markets where it is possible

to seek this information, more than 4,600

colleagues have consented to share their

diversity data with us.

Our Global ERGs play an integral role in our

Inclusion strategy. We launched the ‘Positive

Portrayal Panel’ in Europe in partnership with

our Marketing Excellence team, with the focus

on campaign design to ensure diversity and

inclusion is at the heart of our consumer focus.

On Disability Inclusion, we refreshed our

global disability & adjustments policy and

hosted a Stronger Together conversation

where leaders and colleagues shared their

experiences with disability.

Strategic report Governance Financial statements Other information Reckitt Annual Report and Accounts 2024

115

Directors’ Remuneration Report continued

On LGBTQ+ Inclusion, Reckitt India was

awarded a bronze rating by the India

Workplace Equality Index. Reckitt UKI was

ranked as a ‘top employer’ and received a gold

rating for the Stonewall UK Index.

We continue to maintain gender balance at all

management levels. Our Women@Reckitt

(20+ local champions) exists to champion the

case for change. For International Women’s

Day 2024, champions led local activations

including Stronger Together conversations and

Speed Mentoring events.

Our Race & Ethnicity ERG operates across 5

regions. In 2024, the Group hosted a Global

Day Against Racism event to highlight the

power of allyship and the CEO joined the

discussion.

351 small and diverse suppliers were

supported by Reckitt US in 2024. Over 5% of

spending on small and/or diverse businesses

was reached by Reckitt US in 2024.

Wellbeing

In 2024, almost 15,000 attendees to Better Life

events. We pivoted our wellbeing program to

focus on change and transition during our

business transformation, acknowledging that

employees needed support with navigating

change, looking after their mental wellbeing and

being mindful of their team dynamics during this

period. We gained a cumulative Net Promoter

Score (NPS)* score of 55 from the 2024 webinar

deliveries.

* NPS is a metric used to gauge customer experience. Bain

& Company, creators of NPS, suggest that a score above

50 is excellent

Launched in January 2024, the Better Life

Journey-For-All, available in 14 languages,

provides all Reckitt employees with a holistic

wellbeing assessment with the offer of

one-to-one support from a coach-on-demand.

Over 860 employees created wellbeing

assessment profiles, and results were used to

curate upcoming content for employees.

All employees were able to access 1:1 sessions

with a trained Hintsa coach. Participation was

broadly similar to 2023 and we chose to pivot

our provision in Q4 to address employee

needs during transformation, by offering more

targeted wellbeing consultations. 100% of

respondents who provided feedback said they

experienced lifestyle changes as a result of

their coaching programme and 90% reported a

5/5 score on personal benefit.

We launched a three-part Mental Health

Curriculum - Better Mind, Better Life, curated

specifically for Reckitt, in collaboration with

doctors, executive performance coaches, clinical

psychologists and our coaching partner - Hintsa

Performance. The curriculum focuses on

prevention and managing day-to-day and

workplace stresses. The curriculum is available in

four languages. We aim to improve our FTSE

Corporate Mental Health Index score from 58%

(Tier 3) to Tier 1 in the next 18-24 months. In

addition, we tripled our trained Mental Health

First Aider Cohort.

Our Caregivers programme, refreshed in

August 2024, shifted focus from ‘surviving’ to

‘thriving’ and utilising caregivers’ unique skills

for career and personal development. Over

4,000 colleagues attended these sessions, a

60% increase YOY.

Reckitt is a 2024 Grocery Aid Silver award

winner. Grocery Aid is a UK charity where

FMCG companies and retailers unite to raise

money, increase awareness, and support

colleagues in need. Each year, awards are

given to companies based on three criteria:

Awareness, Fundraising, and Volunteering. In

2024, Reckitt UK achieved the following:

• Awareness: Our HR team actively raised

awareness across our sites, helping Grocery

Aid support Reckitt employees in need

• Fundraising: We supported events for major

grocery retailers and specific Grocery Aid

events, donating over £80k as a UK business

• Volunteering: Reckitt representatives

participated in the Grocery Aid D&I board,

and Tarsila Calvo, our Head of UK Customer

Supply, gave an inspiring talk at the Grocery

Aid Live event

Leadership Development and Learning

In 2024, we conducted a study with EY to

identify key challenges and strengths of 215

participating senior leaders. This was

complemented by an aggregate analysis of

internal 360 and psychometric results,

engagement survey data, and a review of

external research. The outcome was a report

with six critical skills and recommendations,

leading to an overhaul of our leadership

programs in 2025/2026.

We invested in leadership skills through

Embark and Elevate, training 352 HR facilitators

with a 98.6% net promoter score. Our Good to

Great programme saw 24 leaders undergo a

12-month development. The Accelerate

programmes for high potential women

enhanced self-awareness and networks, with

senior women receiving internal advocates.

Our new learning platform, MyDevelopment,

launched in November 2023, saw over 17,000

employees access it in 2024. We launched the

Project & Change Learning Hub and the AI Hub,

and we now have 10 Academies that are

dedicated to deliver the Functional knowledge

and skills required for roles across Reckitt.

Furthermore, LinkedIn Library continues to be

embedded across our Academies & wider

Reckitt with 31,000 hours of LinkedIn Learning

resources consumed in 2024.

Talent, Performance, Engagement,

andRecognition

We updated our Talent and Performance

approach to support Reckitt’s evolution,

reflecting industry best practices and internal

feedback. We will introduce multi-rater

feedback for greater collaboration and an

enterprise mindset. Our updated talent ratings

will recognise diverse career paths and

development opportunities. These changes

started in January 2025.

All details are subject to works council consultation and/or

employee notification in country.

Strategic report Governance Financial statements Other information Reckitt Annual Report and Accounts 2024

116

Directors’ Remuneration Report continued

Decision on 2024 bonus outcomes

Reckitt’s performance showed solid progress in 2024 despite weathering unforeseen challenges

like the tornado. Our Group LFL NR growth is in line with guidance overall. We achieved our

ambition of growing adjusted operating profit ahead of net revenue, enabling us to increase

investment in our brands and grow earnings by 8%, supporting a record 2.7 billion in cash returned

to shareholders through our dividend and continued share buyback programme. Given this

performance and wider assessment as described above and in the Remuneration Chair’s letter,

including the adjustment made to the 2024 bonus to reflect the impact the tornado in July had

onoperations, the Committee concluded that the formulaic APP payout based on performance

against targets is justified in this wider context.

Under the Remuneration Policy, one-third of the annual bonus will be delivered by way of an award

over Reckitt shares and deferred for a three-year period.

Base salary

(£) X

Target

bonus X

Performance

multiplier =

Total bonus

(£) =

Cash

(£)

Deferred

into shares

(£)

Kris Licht 1,100,000 120% 2.31x 3,049,200 2,032,800 1,016,400

Shannon

Eisenhardt 760,000 100% 2.31x 1,755,600 1,170,400 585,200

Jeff Carr

190,000 100% 2.31x 438,900 292,600 146,300

1 The 2024 base salary for Jeff Carr is pro-rated for the period served as Executive Director

Vesting of the 2022 LTIP

The Reckitt LTIP is designed to align participants with shareholders through making awards with

stretching performance conditions denominated in both performance share options and

performance share awards. Kris Licht’s award was made under his previous role and Jeff Carr’s

awards were granted under the previous Remuneration Policy on 20 May 2022. Shannon Eisenhardt

did not participate in the 2022 LTIP as she was not an employee of the Company at the time of

grant, however, as disclosed last year, she was granted a replacement award for performance

shares lapsing due to leaving her previous employer, of which a portion was made subject to the

2022 Reckitt LTIP performance conditions to align her with Reckitt’s performance.

2022 performance targets

Vesting of awards under the 2022 LTIP was dependent on the performance conditions set out in

the table to the right.

Assessment of performance versus targets

The chart below illustrates performance compared to the targets. As set out below, performance

against performance measures over the three-year performance period results in an overall 68%

vesting of the 2022 LTIP award. As stated earlier, the Committee has adjusted the 2022 LTIP

fortheimpact of the Mount Vernon tornado in July to ensure that underlying performance was

measured in a fair and consistent manner. In order to reflect underlying performance, ROCE is

calculated on an adjusted basis for incentive plan purposes. Adjustments include: i) calculation on

a constant currency basis; ii) exclusion of impairment impact so that management do not benefit

from impairments; iii) adjustment for unbudgeted investment over the period to reflect strategic

priorities; and iv) adjustment for actual M&A investment over the period. These adjustments

aremade to reflect underlying performance and to align with plan assumptions to ensure

performance is measured on a like-for-like basis. These adjustments have been made for all

LTIPparticipants.

Performance measure

Threshold

(20% vesting) Achieved

Maximum

(100% vesting)

Vesting (% of

total award)

LFL net revenue growth

(3-year CAGR)

(40%weighting)

2.0% p.a. 5.0% p.a.

81%

ROCE (final year)

(25%weighting)

13.2% 15.2%

100%

Relative TSR

(25% weighting)

Median

Upper

Quartile

%NR from more

sustainable products

(final year)

(5% weighting) 30% 33%

100%

% reduction in GHG

emissions (final year)

(5% weighting)

65% 69%

100%

Total vesting 68%

Achieved

Actual 4.3% p.a.

Actual 15.3%

Actual 34.9%

Actual 69.4%

<Median

Strategic report Governance Financial statements Other information Reckitt Annual Report and Accounts 2024

117

Directors’ Remuneration Report continued

Overall Group performance taken into consideration

As it does every year, the Committee thoroughly evaluated the performance of both the Group

and the Executive Directors in the round to assess whether the level of vesting under the LTIP is

both appropriate and justified. The framework that the Committee applies is set out on page 110.

The Committee took into account the progress on delivery of the strategy and wider people,

culture and sustainability in 2024 as disclosed on pages 112-115 of this report and over the

performance period of the 2022 LTIP, as disclosed in previous Annual Reports, as well as the wider

stakeholder experience over this period.

Decision on 2022 LTIP vesting outcome

The Committee is satisfied that this outcome is aligned with the shareholder experience and the

wider assessment of performance over the last three years and concluded that the overall vesting

level is justified and appropriate in this wider context.

Vesting of the LTIP for the Executive Directors over the last five years is shown below:

2017–2019 2018–2020 2019–2021 2020–2022 2021–2023 2022-2024

0% 0% 21.5% 100% 78% 68%

Based on the performance assessment above, the 2022 LTIP award to Kris Licht and Jeff Carr will

vest as detailed below. Kris’ LTIP award was granted in relation to his previous role which did not sit

on the Board. However, the full value of the award has been included for transparency. Shannon did

not participate in the 2022 LTIP award, however, as disclosed in the 2023 Directors’ Remuneration

Report, she was granted replacement awards to compensate for remuneration arrangements

forfeited on leaving her previous employer. The buyout award is subject to the same performance

conditions and targets as the Reckitt 2022 LTIP award and will be released in August 2025.

Interests

held

Exercise

price (£)

Vesting

Interests

vesting

Share price

(£)

Estimated

value (£)

Kris Licht

Performance shares 43,533 n/a 68% 29,602 £47.81 £1,415,272

Performance share options 80,000 £63.32 68% 54,400 £47.81 0

Shannon Eisenhardt

Performance shares

(buy-out) 5,479 n/a 68% 3,725 £47.81 £178,092

Jeff Carr

(retired31 March 24)

Performance shares 32,650 n/a 68% 22,202 £47.81 £1,061,478

Performance share options 60,000 £63.32 68% 40,800 £47.81 0

1 Includes dividend equivalents accrued over the performance period, which are subject to performance conditions

2 As the share price on the date of vesting is unknown at the time of reporting, the value is estimated using the average market

value over Q4 2024 of £47.81. The actual value at vesting will be disclosed in the 2025 Annual Report

There is a further two-year holding period attached to the 2022 LTIP award for Kris and Jeff, which

means that vested performance shares or options will not be released until 1 January 2027, and the

resultant shares from the exercise of any vested performance share options will not be released

until 1 January 2027.

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118

Directors’ Remuneration Report continued

Single total figure of remuneration for Executive Directors (audited)

The table below sets out a single figure for the total remuneration received by each Executive Director for the year ended 31 December 2024, based on the information set out in the previous sections.

Thisiscompared to the prior year figure:

Current Executive Directors Former Executive Director

Kris Licht

Shannon Eisenhardt

Jeff Carr

2024

2023 (part-year)

2024

2023 (part-year)

2024 (part-year)

2023

Base salary 1,100,000 575,000 760,000 158,333 190,000 760,000

Taxable benefits

132,620 57,553 239,157 192,775 4,264 16,884

Pension benefit

110,000 57,500 76,000 15,833 18,999 76,000

Annual bonus

3,049,200 1,845,900 1,755,600 463,917 438,900 2,226,800

LTIP

7,8

1,415,272 871,455 – – 1,061,478 1,394,328

Buyout awards

– – 178,092 349,106 – –

Fixed remuneration 1,342,620 690,053 1,075,157 366,942 213,263 852,884

Variable remuneration 4,464,472 2,717,355 1,933,692 813,023 1,500,378 3,621,128

Total 5,807,092 3,407,408 3,008,849 1,179,965 1,713,641 4,474,012

1 Kris Licht did not receive a salary increase in 2024. He received an annual salary of £1,100,000 in 2024. For 2023, his salary was pro-rated for the period served as an Executive Director. Kris Licht’s salary in 2023 in respect of his employment as President Health and

Chief Customer Officer, a role which did not sit on the Board, is not included in the calculation

2 Shannon Eisenhardt did not receive a salary increase in 2024. She received an annual salary of £760,000 in 2024. For 2023, her salary was pro-rated for the period since joining the Company on 17 October 2023 (when she joined Reckitt and the Board)

3 Jeff Carr stepped down as CFO and from the Board on 31 March 2024. His salary, 2024 annual bonus and 2022 LTIP were pro-rated for the period until date of leaving

4 Benefits for Kris Licht in 2024 primarily consist of the use of a car, healthcare and tax support. For Shannon Eisenhardt, the benefits include one-off relocation costs including temporary accommodation, the use of a car, home leave flights, healthcare and tax

support. For Jeff Carr the benefits include a car allowance and healthcare. Where relevant the costs above include a gross-up for tax

5 The Company paid all Executive Directors a cash allowance in respect of pension provision to the value shown in the table above. These payments reflect the full pension provision outlined in the Policy Table. Directors are only entitled to pension on a defined

contribution (or cash allowance) basis, with no defined benefit accrual

6 Annual bonus reflects financial performance for the 2024 bonus; the Committee’s assessment of performance of both the Company and the Executive Directors in the round; and the Committee’s determination of the level of annual bonus payout at 65% of the

maximum level in line with the formulaic outcome is appropriate as set out on pages 111 – 116. One-third of this is deferred into share awards for three years and will vest subject to continued employment

7 Reflects the estimated value of LTIP performance share options and performance shares granted to Kris Licht and Jeff Carr in May 2022, including dividend equivalents, which are due to vest in May 2025 at 68% of maximum. Valued using an average share price

over Q4 2024 of £47.81. See the relevant section on page 117 for more details. None of this value is attributable to share price growth over the vesting period. Kris Licht’s LTIP award was granted in relation to his previous role which did not sit on the Board,

however, the full value of the award has been included for transparency. Shannon Eisenhardt did not participate in the 2022 LTIP award as she did not join the Group until October 2023

8 The value of the 2021 LTIP vesting for Kris Licht and Jeff Carr has been restated from last year, which used an average share price of £55.56 over Q4 2023 to estimate the value of the vesting. The actual value shown above is based on the actual share price on the

date of vesting of £44.69 on 2 May 2024. As the share price at the date of vesting was lower than the share price at the date of the award, none of the value is attributable to share price growth

9 As part of Shannon Eisenhardt’s recruitment package, she received buyout awards in respect of awards forfeited on leaving her former employer. The value shown in the table for 2023 relates to both an award of restricted shares (£281,121) and the FY24 NIKE

annual bonus award (£67,985). The restricted share awards vest in equal tranches. The first tranche vested in December 2023 has been valued based on the closing share price of £53.82 at the date of vesting, and the second tranche vesting in December 2024

has been valued based on the closing share price of £47.23 at the date of vesting. The payment in respect of the FY24 NIKE annual bonus has been restated based on the actual bonus outturn at NIKE, pro-rated for the period 1 June to 16 October 2023, for the

portion of NIKE’s performance year elapsed until Shannon joined Reckitt, vesting at 65% of target. Shannon was also granted performance share awards as part of her buyout – an award of 3,526 performance share were granted in relation to the long-term

incentive award over NIKE shares granted to Shannon in August 2021 and vesting based on NIKE’s performance over the three-year period to 31 May 2024 as to be disclosed in NIKE’s 2024 Proxy statement. This award has lapsed in full. An additional award of 5,248

performance shares were granted in relation to the long-term incentive award over NIKE shares in August 2022. As set out in the 2023 Directors’ Remuneration Report, this award will be subject to the same performance conditions and targets as the Reckitt 2022

LTIP award and includes dividend equivalents. This award is due to vest in August 2025 at 68% of maximum. The value of this award has been estimated using an average share price over Q4 2024 of £47.81

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119

Directors’ Remuneration Report continued

Shareholding of Executive Directors compared to requirements

The bar chart below illustrates the Executive Directors’ shareholding compared to the Company’s

shareholding requirements. Executives have a period of eight years from appointment to achieve

the requirements of 200,000 shares for the CEO and 100,000 for the CFO. Both Executive Directors

are showing expected progress towards meeting these requirements as reflected below:

Shares held

Shares deferred from annual bonus 2024

2025 vesting

1 Current shareholding value based on the average closing share price in Q4 2024 of £47.81

2 Includes shares owned outright and shares subject to post-vesting holding restrictions

3 This is the estimated number of shares awarded, after tax under the Deferred Bonus Plan, including those to be deferred from

the 2025 APP

4 For Kris Licht this is the number of shares vesting in May 2025 under the 2022 LTIP, after tax. For Shannon Eisenhardt this is the

number of shares vesting in August 2025 granted as buyout awards, after tax. Both include dividend equivalents

Directors’ interests in shares and options (audited)

Executive Directors are expected to acquire significant numbers of shares over eight years and

retain these until retirement from the Board, with a portion required to be retained post-

employment as described below.

These shareholding requirements (200,000 shares for the current CEO and 100,000 shares

forthecurrent CFO) are amongst the most demanding in the UK market and are equivalent to

c.869%andc.629% of salary for the CEO and CFO, respectively, based on a share price of £47.81.

These requirements are also nearly double the current annual LTIP award using a Black-Scholes

valuation of 15% for the performance share options.

We also have post-employment shareholding requirements for a further two years. The post-

employment shareholding requirement is enforced through a restriction on Executive Directors’

vested shares, held by our external share plan administrator, which requires Company permission

before these shares can be sold. This restriction excludes shares purchased by the Executive

Directors.

The two-year post-employment shareholding requirement is 50% of the shareholding requirement

or actual shareholding on leaving if lower. This represents more than c.435% of salary for the CEO

and c.315% for the CFO; it is also broadly in line with the current annual LTIP award, using a

Black-Scholes valuation of 15% for the performance share options.

The table below shows the current shareholding of each Executive Director against their

respective shareholding requirements as of 31 December 2024:

Shareholding

requirement

(number of

shares)

Total beneficial

interests

(number of shares)

Shares awarded

under the

Deferred

Bonus Plan

Shares subject to

time vesting only

Performance shares Options held

To vest in 2025

Unvested, subject

to performance

Vested but not

exercised To vest in 2025

Unvested, subject

to performance

Kris Licht 200,000 40,822 29,462 10,000 15,689 155,000 89,000 54,400 310,000

Shannon Eisenhardt 100,000 3,071 9,846 0 1,974 74,701 0 0 138,905

1 ‘Total beneficial interests’ includes shares owned outright and shares subject to post-vesting holding restrictions

2 ‘Shares awarded under the Deferred Bonus Plan’ shows the estimated number of shares awarded under the Deferred Bonus Plan, after tax, including an estimate of those to be deferred from the 2024 annual bonus

3 For Kris Licht, includes the award under the Share Ownership Policy (SOP) granted before his appointment to the Board based on continued employment and the achievement of shareholding requirements

4 This is an estimate of the number of shares vesting to Kris Licht in May 2025 under the 2022 LTIP and an estimate number to Shannon Eisenhardt vesting in August 2025 granted under buyout awards, as detailed on page 117, after tax

5 For Shannon Eisenhardt, this includes the performance shares granted under buyout awards

0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 200,000120,000 140,000

Shannon

Eisenhardt

Kris Licht

£4.11m

Shareholding

requirement

Current

shareholding

£0.71m

Shareholding

requirement

Current

shareholding

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120

Directors’ Remuneration Report continued

2024 LTIP awards granted in 2024 (audited)

The table below sets out the LTIP awards and other awards made to Kris Licht and Shannon Eisenhardt during 2024. Vesting of these awards in full requires achievement of stretching performance

conditions over the three-year period. Dividend equivalents accrue on performance shares during the performance period, but will only pay out on vested performance shares. In line with the Directors’

Remuneration Policy, for Executive Directors there is a further two-year holding period for the 2024 LTIP commencing after the end of the three-year performance period.

Date of grant

Shares over which

awards granted

Market price at

date of award

(£)

Exercise

price (£)

Face value

(£)

Face value less

exercise price

(£) Performance period Exercise/vesting period Holding period

Performance shares

Kris Licht 6 March 2024 75,000 50.14 n/a 3,760,500 n/a 1 Jan 2024 – 31 Dec 2026 Mar 2027 1 Jan 2029

Shannon Eisenhardt 6 March 2024 40,000 50.14 n/a 2,005,600 n/a 1 Jan 2024 – 31 Dec 2026 Mar 2027 1 Jan 2029

Performance share options

Kris Licht 6 March 2024 150,000 50.14 50.90 7,521,000 0 1 Jan 2024 – 31 Dec 2026 Mar 2027 – Mar 2034 1 Jan 2029

Shannon Eisenhardt 6 March 2024 80,000 50.14 50.90 4,011,200 0 1 Jan 2024 – 31 Dec 2026 Mar 2027 – Mar 2034 1 Jan 2029

1 The market price at date of award is the closing share price on the date of grant

2 The exercise price is based on the average closing share price over the five business days prior to the date of grant

3 For performance shares, the face value is based on the share price at the date of award and assumes the stretching performance criteria are met to achieve full vesting. For performance-based share options, the face value in the table above is calculated as the

number of share options multiplied by the market price at date of award. However, the actual value to a participant at the time of exercise will be the difference between market price at that time and the exercise price for the number of share options vesting,

after the assessment of performance against the stretching performance criteria set. It should be noted that the ‘face value’ shown above would therefore only be realised if the stretching performance conditions are met in full and the share price at the time

ofexercise is double the exercise price

Unchanged from previous years, the Reckitt 2024 LTIP awards vest based on performance conditions of 40% on NR, 25% on ROCE, 25% on relative TSR and 10% on Sustainability measures. The targets for

2024 awards were set out in the 2023 Directors’ Remuneration Report.

NR continues to be measured as LFL growth over three years. ROCE is measured based on the final year of the performance period and is a measure of how efficient the Group is at converting its

capital into earnings. For LTIP purposes ROCE is measured on a constant currency basis. In addition, LTIP targets include impairments prior to the start of the performance period, whereas in the

calculation elsewhere in the Annual Report total assets have been adjusted to add back impairments of Goodwill, except where the impaired asset has been disposed or partially disposed. If there are

any impairments during the performance period, the Committee will ensure that this does not lead to an increase in the vesting by adjusting the capital employed accordingly and to ensure a LFL

comparison to the targets. Relative TSR is measured against a peer group comprising 21 relevant peer companies, with the addition of Kenvue (which was listed as an independent business in 2023). The

targets associated with the 2024 LTIP awards were disclosed in the 2023 Annual Report on Remuneration.

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121

Directors’ Remuneration Report continued

Wider workforce pay arrangements

Reckitt continues to cascade its reward policy fairly and consistently throughout the organisation

and the Remuneration Committee considers the arrangements for the wider workforce when

setting Executive Directors’ remuneration.

Information reviewed by the Remuneration Committee includes salary structures, bonus design

and targets, the LTIP, share ownership, our global mobility policies, provision of benefits and

Reckitt’s all-employee share plans. The Committee is pleased to note from this review that the

Company’s remuneration policies continue to be aligned with those of the Executive Directors,

with a cascade throughout the organisation.

In 2024, Reckitt began strategically reshaping our business to sharpen our portfolio and simplify

our structure for accelerated growth, ensuring Reckitt’s position as a leader in consumer health

and hygiene. Amidst this, and in line with our UK listing requirements to review the Remuneration

Policy (see page 103), the Committee took the opportunity to refresh our reward philosophy and

subsequent principles, factoring in what we heard from our wider workforce. The Committee

remains committed to aligning our remuneration policies with strategic objectives and ensuring

our compensation structures support long-term performance and value creation.

We have expanded our LTIP offering to a wider group and rebalancing the mix of short-term and

long-term pay for this group, recognising the critical role these employees play in our long-term

performance, fostering a culture of ownership, and encouraging a greater focus on the enterprise.

Together, these changes underscore our commitment to rewarding the right behaviours and driving

long-term growth and success. Our remuneration package remains highly competitive, helping us

attract and retain top talent while fostering a culture of ownership and long-term commitment.

For more details on our initiatives, please refer to the People and culture section on pages 114-115.

At Reckitt, we are proud of our people and their achievements, as well as our reward policies and

practices that reflect our values and culture. We continue to focus on maintaining an open,

transparent culture by promoting continuing dialogue across the Company. During 2024, the

Designated Non-Executive Director for Engagement with Company’s Workforce

activity has

allowed them to feed back the views of the workforce to the Remuneration Committee as well as

the wider Board. Each year the Company holds several engagement sessions with employees and

organises site visits during which townhall meetings and smaller group discussions with our people

take place. Details of this engagement can be found in the Section 172 Statement, which can be

found on page 78.

The table on page 122 summarises the remuneration structure for the wider workforce.

1 Mary Harris until May 2024, after which Elane Stock took over this role

All details are subject to works council consultation and/or employee notification in country.

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122

Directors’ Remuneration Report continued

Salary Annual bonus (APP) Long-term incentive Pension All employee shares Share ownership Benefits

Salary increases are

based on individual

performance ratings,

talent assessments, and

local market practices

and conditions

e.g.inflation.

For 2025, the salary

increase budget for

thewider UK workforce

was 4%.

The average total pay

across the Group in 2024

was £57,282.

The median CEO pay

ratio is 1:104 (page 124).

Reckitt is accredited

bythe Fair Wage

Network and all our

employees are paid at

least the living wage

intheir location.

Thiscertifies our

commitment to

employees that they

willreceive a wage that

not only exceeds the

minimum wage but also

recognises the actual

cost of living in the UK.

Our APP is consistently

implemented across the

organisation with 16,000

participating employees.

Target bonuses and

maximum multipliers

increase with progression

and promotion.

Bonus payouts, aligned

with Executive Directors,

are tied to Reckitt’s

financial performance.

All employees are

incentivised based on

net revenue and a profit

measure, varying by role.

All roles include a third

measure, such as NWC.

From 2025, for the

majority of our

employees, bonuses will

be further differentiated

based on individual

performance.

Additional bonus plans

for specific areas like

sales and factories are

inoperation.

Reckitt grants LTIP

awards to the GEC,

GroupLeadership

teamand Senior

Management team.

The 2025 awards use

thesame measures

andperformance

periodas for the

Executive Directors.

Awards are a fixed

number of options

andshares, based

onemployee level,

performance and

potential. In addition,

participants below the

GEC receive restricted

share awards. Managers

can recommend

additional awards

tokeyemployees.

In 2024, we granted

awards under our Middle

Manager High Potential

Awards to selected

employees below senior

management levels,

recognising their

long-term performance

and value creation.

For 2025, factoring

feedback from the wider

workforce, we have

discontinued this

program and instead

expanded our LTIP to

include all employees in

this population, who are

now eligible to receive

RSU awards, subject to

local restrictions.

A pension/gratuity

scheme is offered to

more than 80% of our

global employees.

Countries where pension

provision is not prevalent

in the local market and/or

is provided by the state

remain an exception

tothe above.

In the UK, all Reckitt

employees are eligible

toreceive a Company

pension contribution

ofat least 10% of

pensionable salary,

irrespective of

anypersonal

contributionmade.

We offer a global share

plan for all employees

tobuy Reckitt shares

atadiscount over three

years. This is offered

toover 95% of our

employees globally

where local legislations

permit, and is supported

by a network of 120

localchampions

andcommunicated

in24languages.

At the end of 2024,

around 13,000 Reckitt

employees were

participating in one of

our three share plans,

with just under a total

of£76 million of

employee savings in

ourall-employee share

plans, or about £5,500

onaverage per

participating employee.

We allow and encourage

a12-month savings

sabbatical for employees

on maternity leave.

Reckitt is proud of our

ownership culture.

Our GEC and Group

Leadership team

haveshareholding

requirements with eight

years within appointment

to reach target. These

are very demanding

andreviewed annually

bythe Remuneration

Committee.

Amongst the GEC,

thetotal shareholding

requirement isaround

£33 million

and

theaverage shareholding

requirement among this

group, excluding the

CEO, isc. 426% of salary.

Aggregate actual holding

forthe GEC is £18 million

equivalent to an average

of273% of salary.

Total shareholding

requirement for all

employeeswith

requirementsis £58

million

, equivalent

toanaverage of297%

ofsalary.

As at 31 December 2024,

actual holding

is£46million

and the

actual average holding

is236% ofsalary.

Weregularly check

shareownership to

review progress.

We provide regularly reviewed,

market-competitive and inclusive

benefits for allour employees.

Corebenefits include:

• Life insurance for all employees

atleast 2x base salary

• Employee Assistance Programme

inevery country which has helped

our employees during the

pandemic and beyond

• Health insurance for most

employees, where the state does

not cover it, with spouse and/or

children also covered in some

markets. Video GP access in

theUKand the US

• International Transfer Policy

forglobal mobility and career

development. Employees transfer

onlocal terms basis. Additional

benefits for some moves,

suchasinternational healthcare,

pension, school fees, tax support

and home leave

• Global parental leave policy. At

least 26 weeks paid maternity

leave and four weeks paid

paternity leave

1 Based on the average closing share price in Q4 2024 of £47.81 and includes actual shareholding as at 31 December 2024, actual

Deferred Bonus Plan shares awarded (estimated net of tax) and an estimate of those to be deferred from the 2024 annual bonus

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123

Directors’ Remuneration Report continued

Salary Annual bonus (APP) Long-term incentive Pension All employee shares Share ownership Benefits

Comparison with Executive Director remuneration

Salary increases take into

account the approach for

the wider workforce.

Salaries are also set

competitively against

peers in support of the

recruitment andretention

of Executive Directors.

The CEO received a 4%

increase in line with the

wider UK population.

The CFO received a 9%

increase: 4% in line with

the wider workforce and

an additional 5%

reflective of additional IT

& Digital responsibilities.

For Executive Directors,

bonuses are directly

related to Reckitt’s

financial performance:

NR, adjusted profit

before income tax

targets, as well as

NWCwhich acts as

adownward modifier

only. APP operates on

amultiplicative basis,

inthe same way as for

the wider workforce.

One-third of annual

bonus payments for

Executive Directors are

subject to a three-year

deferral into awards over

Reckitt shares.

We have malus and

clawback and other

safeguards in place to

manage any potential risk

that may arise from the

use of the APP.

Executive Directors’

LTIPgrants comprise

performance share

options and performance

share awards (based on

afixed number), which

for the 2025 awards

willvest subject

totheachievement

ofLFLNR, ROCE,

relativeTSR and

Sustainability

performance targets.

In addition to the LTIP’s

three-year performance

period, Executive

Directors are subject

toan additional two-

yearholding

periodcommencing

atthe end of the

performance period.

Under the Policy, our

Executive Directors

areeligible to receive

aCompany pension

contribution of 10% of

salary, in line with the

wider workforce in

theUK.

They are eligible to take

this as a cash alternative.

Executive Directors are

eligible to participate

inthe all-employee

Sharesave Scheme on

thesame basis as all

employees.

The Executive Directors

have shareholding

requirements of200,000

shares for the CEOand

100,000 for the

CFO,oneof the highest

requirements in the

UKmarket.

These are

equivalent to 869%

and629% of salary

respectively.

Executive Directors are

additionally subject to

apost-employment

shareholding requirement

which is enforced

through restrictions put

in place by ourshare plan

administrator.

The table on page 119

sets out the progress of

the Executive Directors

towards their

shareholding

requirements.

Executive Directors receive benefits

which consist primarily of the

provision of a Company car/

allowance, risk insurances and

healthcare.

In addition, Executive Directors are

eligible for the benefits available to

the wider workforce in their local

market.

1 Based on the average closing share price in Q4 2024 of £47.81

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124

Directors’ Remuneration Report continued

Gender pay gap

The Board reviews the Company’s gender pay gap and publishes an annual gender pay report that

can befound on our website under the Fairer Society heading of Our Impact section. To increase

transparency on this issue Reckitt voluntarily discloses the gender pay gap for our 10 largest

markets by workforce size, including the UK, which together make up around 65% of our global

permanent workforce.

As disclosed in Our People Report, Reckitt has set targets to increase the number of women

insenior leadership positions and has a number of initiatives to increase this representation.

A summary of the gender pay statistics is also included below:

The gender pay gap in the UK as at 5 April 2024 is

Median -9.1% Mean 0.6%

The gender pay gap in the UK as at 5 April 2023 is

Median -10.6% Mean 3.7%

Further data and information on the initiatives Reckitt is taking on diversity and inclusion are set

out in our 2024 Sustainability Report.

CEO pay ratio

The table below provides pay ratios of the CEO’s total remuneration to the remuneration of UK

employees at the lower quartile, median and upper quartile. This is in line with UK reporting

requirements.

CEO Year Method

25th percentile

pay ratio

Median

pay ratio

75th percentile

pay ratio

2024 Option A 1:138 1:104 1:60

2023 Option A 1:136 1:99 1:57

2022 Option A 1:82 1:61 1:34

2021 Option A 1:170 1:121 1:78

2020 Option A 1:244 1:177 1:100

2019 Option A 1:158 1:115 1:70

The calculations reflect the application of Reckitt’s reward policy across the organisation as set out

in the section on wider workforce pay arrangements.

In particular, the Remuneration Committee believes the pay ratio is consistent with the Group’s

wider policies on employee pay, reward and progression. Reckitt ensures that employees are paid

fairly for their role, based on the location they work in and their performance in role. As such, the

base salary, annual bonus and benefits are based on the same principles for the identified

employees as they are forthe CEO.

In calculating the ratio we have used Option A, in line with shareholder guidelines. The employees

used inthe calculations were selected on 25 February 2025 following the end of the financial year.

For identifying the three employees at the lower quartile, median and upper quartile, the following

methodology has been used:

• All UK employees’ total remuneration as at 31 December 2024 has been considered, excluding

leavers and employees who were absent for more than 20 days during the financial year, as

these would distort the ratio

• Full-time equivalent salary, variable pay, allowances and benefits (using the part-time values and

converting these to full-time equivalent values) have been calculated. In order to calculate the

value of taxable benefits we have taken the P11D value, due to ease of accessing data. Actual

pension contributions have been used, and, where appropriate, converted to full-time

equivalents

The table below summarises the identified employees in 2024:

25th percentile

(£)

Median pay

(£)

75th percentile

(£)

Total employee pay and benefits 42,086 55,921 97,354

Salary component 35,079 37,885 80,630

In addition, Note 5 to the Financial Statements sets out the total employment costs and average

number of employees globally, during 2024. Based on these, the average global pay during

2024was £57,282 and consequently the pay ratio between the CEO and average global

employeewas 1:101.

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125

Directors’ Remuneration Report continued

Implementation of Directors’ Remuneration Policy in 2025

Salary

As set out earlier in the report, the CEO will receive an increase aligned to wider UK workforce

at4%. For the CFO, the salary increase will be a 9% increase (inclusive of the workforce aligned

increase of 4%) to reflect the increased scope and responsibilities of her expanded role, which

now includes responsibility for IT & Digital. This is no longer a separate GEC role and instead the

function reports to the CFO. As part of this, the CFO will now play a critical role in delivering the

Group’s strategy by building a data-driven, digitally enabled Business, and has responsibility for

asignificantly larger number of people. The CEO’s salary for 2025 is £1,144,000 and the CFO’s

is£828,000. There was no increase to base salary for either Executive in 2024.

Pension

The CEO and CFO are eligible to receive a pension contribution, or equivalent cash allowance,

of10%ofsalary, which is in line with the Company’s level of contribution for all UK employees.

2025 Annual bonus

There are no changes to the bonus opportunity for the CEO and CFO, remaining at 120% and 100%

of salary at target, respectively. Bonuses for 2025 will remain based on Reckitt’s NR and adjusted

profit before income tax targets, measured in GBP at a constant exchange rate, with the outcome

under each of the measures combined multiplicatively to give a maximum bonus outcome of 3.57x

the target bonus opportunity if both targets are met.

As with the 2024 bonus, the NWC metric will act as a downward modifier, applying on a

multiplicative basis to the combined outcome of the NR and adjusted profit before income tax

targets, with a maximum multiplier of 1x. One-third of any bonus earned will be deferred into

Reckitt shares for three years.

For the 2025 APP the Committee’s assessment of performance in the round will also include

consideration of performance in relation to the execution and delivery of the refreshed strategy.

The Committee will use its judgement to assess performance against the strategy (including

theshareholder and wider stakeholder experience in the year) and may make a downwards

orupwards adjustment to reflect this. This additional assessment and potential adjustment will

also apply to the rest of the senior management team covering c.450 employees. In line with

theapproach every year, the Committee will also consider broader performance in the round.

We have not disclosed the performance target ranges for 2025 as we consider them to be

commercially sensitive. However, we commit to retrospectively disclosing the performance

rangesin the Directors’ Remuneration Report for the year ending 31 December 2025.

2025 LTIP awards

Award levels

Within the limits of the existing Policy, there will be a modest increase in the LTIP award levels for 2025.

The award levels for the CEO will be set at 87,500 performance shares and 175,000 performance share

options (previously 75,000 and 150,000 respectively), with the CFO’s award set at 42,500 performance

shares and 85,000 performance share options (previously 40,000 and 80,000 respectively). This takes

into account the context of our refreshed strategy, the global talent markets in which we operate,

andour remuneration principles including our long standing pay positioning philosophy.

Performance conditions

The LTIP performance metrics and their associated weightings have been reviewed in the year and the

Committee is of the view that the current overall balance of measures remains appropriate and aligned

to our strategy and culture. Whilst our wider Sustainability strategy and our commitment to achieving

net zero by 2040 remains unchanged, we are proposing to enhance our commitment to reducing

Scope 3 carbon emissions through a simplification to the Sustainability measure in the LTIP. Therefore,

the metrics and weightings have changed slightly from the 2024 LTIP awards and are as follows:

• LFL NR growth (40% weighting)

• ROCE (25% weighting)

• Relative TSR (25% weighting)

• % NR from more sustainable products (10% weighting)

The Committee went through a robust process when setting these targets, taking into account

anumber of factors and different reference points and the Committee considers that the targets

set are very stretching. Awards granted in 2025 will vest in line with the descriptions below, which

require significant outperformance of targets.

LFL NR growth

NR is measured as LFL growth over three years. At the time these targets were set the Committee

took into account market consensus and our stated ambition for LFL NR growth is mid-single-digit

in the medium term. In this context, the Remuneration Committee believes that the performance

ranges are appropriately stretching and incentivise management to deliver outperformance. 20%

of this element will vest for achieving 2.5% per annum growth increasing to full vesting for

achieving 5.5% per annum growth.

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126

Directors’ Remuneration Report continued

ROCE

ROCE is measured in the final year of the performance period and is a measure of how efficient

the Group is at converting its capital into earnings. For LTIP purposes, ROCE is measured on a

constant currency basis. In addition, LTIP targets include impairments prior to the start of the

performance period, whereas in the calculation elsewhere in the Annual Report total assets have

been adjusted to add back impairments of Goodwill, except where the impaired asset has been

disposed or partially disposed.

If there are any impairments during the performance period, the Committee will ensure that this

does not lead to an increase in the vesting by adjusting the capital employed accordingly and to

ensure a LFL comparison to the targets. 20% of this element will vest for achieving 17.5% increasing

to full vesting for achieving 19.5%.

Relative TSR

Relative TSR directly aligns LTIP participants with the shareholder experience and will only reward

for TSR outperformance against our peers.

As it does every year, the Committee reviewed the constituents of the peer group to ensure that

they remain appropriate to assess performance against and also considers whether any additional

peers should be added. The outcome of this review is that, for 2025 LTIP awards, JDE Peet’s, Lindt,

and Mondelēz will be removed from the peer group. These companies are not constituents of the

MSCI World Household & Personal Products index and it is considered that their portfolios overlap

less closely with Reckitt’s.

Therefore, the peer group for the 2025 LTIP awards comprises 18 companies with which we

compete for capital and to which shareholders compare us and is also an appropriate group

against which to incentivise LTIP participants to outperform. The peer companies are primarily

drawn from the constituents of the MSCI World House and Personal Products Index. The

constituents will be reviewed on an annual basis and, in particular, as new comparators come to

the market. The TSR peer group for the 2025 LTIP award is set out below:

Beiersdorf Estée Lauder L’Oréal

Church & Dwight Haleon Nestlé

Clorox Henkel Procter & Gamble

Colgate Palmolive Kao Shiseido

Danone Kenvue Unicharm

Essity Kimberly-Clark Unilever

Under the relative TSR measure, 20% of the award will vest for TSR at the median of the peer

group, increasing to full vesting for upper quartile performance or above.

Sustainability

Sustainability measures were introduced from the 2022 LTIP to align participants with, and

incentivise delivery of, our 2030 Sustainability Ambitions. As stated earlier in the report, the

Sustainability measure for the 2025 LTIP award will be based on % NR from more sustainable

products, which includes over 60% of our Scope 3 carbon emissions. The Sustainability targets are

based on rigorous methodology, are independently assured and, in the case of our carbon

emissions, support our delivery of externally validated SBTs on emissions reduction. Targets are

based on achievement in the final year of the performance period and take into account the plans

that we have to achieve the Sustainability Ambitions.

Percentage of net revenue from more sustainable products has been an annual reporting KPI since

2012 and supports our ambition of 50% of NR being from more sustainable products by 2030. This

is measured using our Sustainable Innovation Calculator. The calculator evaluates the sustainability

impact of every new product versus existing products and established benchmarks. It helps

measure carbon, water, plastics, ingredients and packaging footprints in new products for our

global brands, targeting their reduction to enable more sustainable products in the future. It

includes Scope 3 product emissions (including the carbon and water impact from consumer use),

which is the most impactful lifecycle stage of our products. We achieved 34.9% of NR from more

sustainable products in 2024 and have set the targets for this measure based on the Plan to 2030,

such that 20% of this element will vest for achieving 43% of NR from more sustainable products

increasing to full vesting for achieving 46% in 2027.

Summary of 2025 LTIP targets

Performance will be assessed for each measure, at the end of the three-year performance period,

onasliding scale as set out below:

Threshold

(20% vesting)

Maximum

(100% vesting)

LFL NR growth (3-year CAGR)

(40% weighting) 2.5% 5.5%

ROCE (final year) on a constant foreign exchange basis

(25% weighting) 17.5% 19.5%

Relative TSR

(25% weighting) Median

Upper

quartile

Sustainability: % of NR from more sustainable products (final year)

(10% weighting) 43% 46%

In line with normal market practice and our historic approach, for material acquisitions and

divestments during the performance period the Committee intends to adjust the APP and

LTIPtargets, in line with shareholder expectations, to ensure that participants are no better

orworse off.

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Directors’ Remuneration Report continued

Additional Remuneration Disclosures

Percentage change in the remuneration of Directors

We are required to publish the annual percentage change in remuneration (salary or fees, benefits and annual bonus) for each Director compared to the annual average percentage change in

remuneration for the employees (excluding Directors) of the Parent Company. Since the CEO and CFO are the sole employees of Reckitt Benckiser Group plc, this statutory disclosure is not possible.

Inthe table below we are therefore voluntarily disclosing the percentage change in remuneration for all UK employees in order to provide a representative comparison. The Company considers UK

employees to be an appropriate comparator group as the Executive Directors’ remuneration arrangements are similar in structure to the majority of these employees and it reflects the economic

environment where the Executive Directors are employed. The analysis isbased on a consistent set of employees for each comparison, i.e. the same individuals or roles appear in the 2023/24

comparison, and similarly for previous year comparisons.

2023/24 2022/23 2021/22 2020/21 2019/20

Salary/fee Benefits Bonus Salary/fee Benefits Bonus Salary/fee Benefits Bonus Salary/fee Benefits Bonus Salary/fee Benefits Bonus

All UK employees

5.6% 8.9%

-23.3% 6.5% 1. 6% ² 6.1% 4.1% 2.1%

15.6% 5.9% 6.2%

-8.9% 4.5% 1.5%

505.4%

Sir Jeremy Darroch

(Chair of the Board)

234.4% – – 516.2% – – – – – – – – – – –

Olivier Bohuon

-46.0% – – 23.2% – – 2.6% – – – – – – – –

Andrew Bonfield

22.9% – – -0.7% – – 6.2% – – 2.4% – – 4.1% – –

Jeff Carr (former CFO)

-75.0% -74.7% -80.3% 5.4% 0.4% -13.5% 3.0% 0.4% 12.8% 41.5% 37.3% 29.3% – – –

Fiona Dawson

– – – – – – – – – – – – – – –

Shannon Eisenhardt (CFO) 380. 0% 24.1% 278.4% – – – – – – – – – – – –

Mary Harris

3.3% – – -1.6% – – -3.8% – – 2.0% – – 14.4% – –

Marybeth Hays

- – – – – – – – – – – – – – –

Tamara Ingram 16.2% – – – – – – – – – – – – – –

Mehmood Khan

14.8% – – 3.4% – – 2.6% – 2.7% – – 4.7% – –

Pam Kirby

-64.3% – – 2.6% – – 2.0% – – 2.0% – – 7.3% – –

Kris Licht (CEO) 91.3% 130.4% 65.2% – – – – – – – – – – – –

Chris Sinclair

-65.1% – – 5.3% – – 10.0% – – 3.6% – – 10% – –

Alan Stewart

-64.1% – – 17.2% – – – – – – – – – – –

Elane Stock

17.5% – – 3.4% – – 2.6% – – 2.7% – – 4.7% – –

Margherita Della Valle 6.6% – – 3.4% – – 2.6% – – 105.4% – – – – –

1 The percentages for ‘All UK employees’ reflect the average percentage change in full-time equivalent salary, taxable benefits and allowances, and bonus for colleagues based in the UK between 2020/21, 2021/22, 2022/23 and 2023/24. It only includes colleagues

employed in both years in the comparison

2 The percentage change in taxable benefits for all UK employees excludes international transfer benefits as this is volatile from year to year based on each individual’s circumstances

3 Sir Jeremy Darroch became Chair of the Board following the AGM in May 2024

4 From May 2024, Pam Kirby, Chris Sinclair and Alan Stewart retired from the Board and Olivier Bohuon is no longer a member, following his death

5 Andrew Bonfield became Senior Independent Director following the AGM in May 2024

6 Jeff Carr stepped down as CFO and from the Board on 31 March 2024

7 Fiona Dawson joined the Board on 1 June 2024

8 Mary Harris, Mehmood Khan and Elane Stock had changes to their committee roles during 2024

9 Marybeth Hays joined the Board on 1 February 2024 and had a change to her committee role during 2024

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128

Directors’ Remuneration Report continued

Relative importance of spend on pay

The table below shows shareholder distributions (i.e. dividends and share buybacks) and total

employee pay expenditure for 2023 and 2024, along with the percentage change in both.

2024

(£m)

2023

(£m)

% change

2023/24

Total shareholder distribution

2,709 1,546 75.2%

Total employee expenditure

2,446 2,569 -4.8%

1 Details of shareholder distribution are set out in Notes 24 and 28 to the Financial Statements and are made up of dividends of

£1,381 million and share buybacks of £1,328 million

2 Details of employee expenditure are set out in Note 5 to the Financial Statements

Payments to past Directors (audited)

No other benefits or payments were delivered to former Directors in the year in excess of the minimum

threshold of a pre-tax value of £15,000 set by the Remuneration Committee for this purpose.

Performance graph

The graph below shows the TSR of the Company and the UK FTSE 100 Index over the period since

1 January 2015. This shows the growth in the value of a hypothetical holding of £100 invested

on31December 2014. The FTSE 100 Index was selected on the basis that it contains companies

ofacomparable size, in the absence of an appropriate industry peer group in the UK.

TSR since 1 January 2015

£ value of £100 invested at 1 January 2015

The table below sets out the single figure of total remuneration for the role of CEO over the last

10years.

(£000)

CEO single figure of

remuneration Kris Licht

Nicandro

Durante

Laxman

Narasimhan

Rakesh

Kapoor

Annual

bonus (as a

percentage

of maximum)

LTIP

vesting (as a

percentage

of maximum)

2015 25,527 100% 80%

2016 15,289 0% 50%

2017 8,999 0% 50%

2018 14,314 84% 65%

2019 4,599

938 12%

2020 8,434

100% 0%

2021 5,967 91% 21.5%

2022 2,118 918 100%

1 0 0 %

2023 3,407

5,260 82% 78%

6,7

2024 5,807

65% 68%

1 Includes buyouts in respect of legacy arrangements from previous employer

2 Zero for Rakesh Kapoor

3 Laxman Narasimhan was not with the Group at the time these awards were granted

4 Laxman Narasimhan was not eligible for a 2022 APP following his resignation as CEO

5 Nicandro Durante was a NED at the time these awards were granted and therefore did not receive an award and Laxman

Narasimhan’s award lapsed following his resignation as CEO

6 Includes the LTIP which was granted in relation to Kris Licht’s previous role which did not sit on the Board

7 Nicandro Durante was not with the Group at the time these awards were granted

2016

Reckitt FTSE 100

Source: LSEG Datastream

123

118

138

132

142

120

126

133

141

125

145

148

135

154

167

131

183

123

2015

100

120

140

160

180

2017 2018 2019 2020 2021 2022 2023 2024 2025

200

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129

Directors’ Remuneration Report continued

Single total figure of 2024 remuneration for NEDs and implementation for 2025 (audited)

The following NED fee policy will apply from 1 January 2025. The table also sets out the fees that

were inplace for the year ended 31 December 2024.

2025 fees 2024 fees

Cash fee

(£)

Fee delivered

in Reckitt

(£)

Cash fee

(£)

Fee delivered

in Reckitt

(£)

Base fees

Chair of the Board 532,500 177,50 0 510,000 170,000

Non-Executive Director 86,250 28,750 82,500 27,500

Additional fees

Chair of Committee 40,000 – 35,000 –

Member of Committee 22,500 – 20,000 –

Designated Non-Executive Director for

Engagement with Company’s Workforce 22,500 – 20,000 –

Senior Independent Director 40,000 – 35,000 –

The fee for the Chair of the Board has been increased to £710,000, an increase of 4%. The basic

NED fee will increase to £115,000, which is broadly in line with the wider workforce. The proportion

delivered in Reckitt shares continues to be 25% of the base fee, being £177,500 for the Chair and

£28,750 for the NEDs. We will continue to review NED fees to ensure they are appropriate and

competitive against the market.

In addition, NEDs are eligible to receive support from the Company to complete a UK tax return,

ifrequired.

The table below sets out a single figure for the total remuneration received by each NED for the

year ended 31 December 2024 and the prior year:

2024 fees 2023 fees

Cash

(£)

Total

(£)

Cash

(£)

Total

(£)

Sir Jeremy Darroch

385,833 122,500 508,333 126,500 25,500 152,000

Andrew Bonfield

140,833 27,50 0 168,333 111,500 25,500 137,000

Fiona Dawson

59,792 13,750 73,542 – – –

Mary Harris

119,167 27,50 0 146,667 116,500 25,500 142,000

Marybeth Hays

4, 5

103,016 25,208 128,224 – – –

Tamara Ingram 102,500 27,500 130,000 88,458 23,375 111,833

Mehmood Khan

112,500 27,50 0 140,000 96,500 25,500 122,000

Elane Stock

115,833 27,500 143,333 96,500 25,500 122,000

Margherita Della Valle 102,500 27,500 130,000 96,500 25,500 122,000

Olivier Bohuon

78,542 – 78,542 119,833 25,500 145,333

Pam Kirby

46,830 9,167 55,997 131,500 25,500 157,000

Chris Sinclair

173,696 56,667 230,363 495,000 165,000 660,000

Alan Stewart

40,018 9,167 49,185 111,500 25,500 137,000

1 Sir Jeremy Darroch became Chair of the Board following the AGM in May 2024. The change in fee is reflected

2 Andrew Bonfield became Senior Independent Director following the AGM in May 2024. The change in fee is reflected

3 Fiona Dawson joined the Board on 1 June 2024. Fees shown for 2022 are paid from this date

4 Elane Stock, Mary Harris, Mehmood Khan and Marybeth Hays had changes to their committee roles during the year which is

reflected in their fee above

5 Marybeth Hays joined the Board on 1 February 2024. Fees shown are paid from this date

6 Chris Sinclair, Pam Kirby, Alan Stewart and Olivier Bohuon were members of the Board until May 2024

Travel and expenses for NEDs are incurred in the normal course of business, for example, in relation

toattendance at Board and Committee meetings. The costs associated with these are all met by

theCompany.

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130

Directors’ Remuneration Report continued

Summary of shareholder voting at the 2024 AGM

The following table shows the results of the voting on the 2023 Directors’ Remuneration Report at

the 2024 AGM and 2022 Directors’ Remuneration Policy at the 2023 AGM:

Votes for

For

Votes

against

Against

% Total

Votes

withheld

Approve the 2023 Directors’

Remuneration Report 505,228,167 94% 29,722,171 6% 534,950,338 8,796,621

Approve the Directors’

Remuneration Policy 493,637,970 92% 45,472,574 8% 539,110,54 4 3,364,148

For 2025, as stated earlier in the report, we will be submitting our Directors’ Remuneration Policy

for approval at the AGM on 8 May 2025, in line with the normal three-year lifecycle. As part of the

Policy renewal, the Remuneration Committee has engaged with shareholders and shareholder

advisory bodies over the past year and have had engagement with approximately 40% of Reckitt’s

ownership as well as the key proxy advisors. The vast majority of shareholders that we engaged

with were supportive of the proposals and noted that there is no significant change.

Directors’ service contracts

NEDs have letters of engagement which set out their duties and time commitment expected. They

are appointed for an initial three-year term, subject to election and annual re-election by

shareholders. Appointments are renewable for subsequent three-year terms by mutual consent.

Details are set out below:

Length of service as of

31December 2024

Date of appointment Years Months

Sir Jeremy Darroch 1 November 2022 2 2

Andrew Bonfield 1 July 2018 6 6

Mary Harris 10 February 2015 9 11

Tamara Ingram 1 February 2023 1 11

Mehmood Khan 1 July 2018 6 6

Elane Stock 1 September 2018 6 4

Margherita Della Valle 1 July 2020 4 6

Marybeth Hays 1 February 2024 0 11

Fiona Dawson 1 June 2024 0 7

The CEO and CFO service contracts contain a 12-month notice period. Directors’ service contracts

and letters of engagement are available for inspection at the Company’s registered office.

Advisors

Deloitte LLP (Deloitte) was appointed by the Remuneration Committee as independent advisor

effectivefrom 1 January 2014 following a review of the advisor in late 2013. The Committee

undertakesdue diligence periodically to ensure that Deloitte remains independent of the

Company andthat the advice provided is impartial and objective. Deloitte is a founding member

of and signatoryto the Code of Conduct for Remuneration Consultants, details of which can be

found at www.remunerationconsultantsgroup.com. During 2024, Deloitte LLP also provided the

Group with adviceand compliance support in a number of areas, including corporate, indirect and

employment taxes, global mobility, and advisory and technology consulting.

These services were provided under separate engagement terms and the Committee is satisfied

that the provision of these services did not impair Deloitte’s ability to advise the Committee

independently. Deloitte’s total fees for the provision of remuneration services were £412,150 on the

basis of time and materials. It should be noted that although we are only required to disclose the

value of fees for services which materially assisted the Remuneration Committee, as with previous

years, we have disclosed the full value of remuneration services from Deloitte, which includes

advice to management and to the Remuneration Committee.

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131

Directors’ Remuneration Report continued

Directors’ interests in shares and options under the LTIP

and buyout awards (audited)

Grant date

Award

at grant date

Granted

during the

year

Dividend

equivalents

accrued from

grant date

Exercised/

vested during

the year

Lapsed during

the year

31 December

2024

Option price

(£)

Market price at

date of award

(£)

Market

price

at date of

exercise/

vesting

(£)

Exercise/vesting

period

Kris Licht

Performance-based share options 01.05.2020 50,000 – – – – 50,000 65.2 – – May 2023–May 2030

28.05.2021 50,000 – – – 11,000 39,000 64.67 – – May 2024–May 2031

20.05.2022 80,000 – – – – 80,000 63.32 – – May 2025–May 2032

21.03.2023 80,000 – – – – 80,000 58.28 – – Mar 2026–Mar 2033

06.03.2024 – 150,000 – – – 150,000 50.9 – – Mar 2027–Mar 2034

Performance-based share awards 28.05.2021 25,000 – – 19,500 5,500 – – 63.68 44.69 May–2024

20.05.2022 40,000 – 3,533 – – 43,533 – 62.42 – May–2025

21.03.2023 40,000 – 3,048 – – 43,048 – 59.18 – Mar–2026

06.03.2024 – 75,000 3,306 – – 78,306 – 50.14 – Mar–2027

Shannon Eisenhardt

Performance-based share options 26.10.2023 58,905 – – – – 58,905 58.87 – – Mar 2026–Oct 2033

06.03.2024 – 80,000 – – – 80,000 50.9 – – Mar 2027–Mar 2034

Performance-based share awards 26.10.2023 29,453 – 1,298 – – 30,751 – 55.94 – Mar–2026

06.03.2024 – 40,000 1,763 - – 41,763 – 50.14 – Mar–2027

Buyout awards 26.10.2023 2,782 – 122 2,904 – – – 55.94 47.23 Dec–2024

Buyout awards 26.10.2023 3,526 – 92 – 3,618 – – 55.94 – Aug–2024

Buyout awards 26.10.2023 5,248 – 231 – – 5,479 – 55.94 – Aug–2025

1 Vesting of LTIP awards is subject to performance conditions set by the Remuneration Committee and the awards are subject to an additional two-year holding period commencing at the end of the performance period

2 Dividend equivalents accrue on performance shares during the vesting period from the 2022 LTIP awards onwards and vest subject to the same performance conditions

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132

Directors’ Remuneration Report continued

Directors’ interests in shares in the Deferred Bonus Plan

(audited)

1 January 2024

Grant date

Award

at grant date

Granted during

the year

Vested during

the year

(including

dividend

equivalents)

Lapsed during

the year

31 December

2024

Option price

(£)

Market price

at date

of award

(£)

Market price

at date

of vesting

(£) Vesting period

Kris Licht

Deferred Bonus Plan 25.03.21 8,059 – 8,778 – – – 64.22 43.52 Mar 2024

Deferred Bonus Plan 21.03.22 5,997 – – – 5,997 – 57.92 – Mar 2025

Deferred Bonus Plan 21.03.23 10,041 – – – 10,041 – 58.28 – Mar 2026

Deferred Bonus Plan 21.03.24 – 18,295 – – 18,295 – 43.00 – Mar 2027

Shannon Eisenhardt

Deferred Bonus Plan 21.03.24 – 3,359 – – 3,359 – 43.00 – Mar 2027

1 One-third of the annual bonus is delivered in the form of conditional share awards which are deferred for three years

2 Dividend equivalents accrue on deferred bonus shares during the vesting period and will be disclosed on vesting

Executive employees may also participate in the all-employee Sharesave Scheme on the same basis as all other employees. The table below details options held.

1 January 2024

Sharesave Scheme Grant date

1 January

2024

Granted during

the year

Exercised

during the year

Lapsed during

the year

31 December

2024

Option price

(£)

Market price

atexercise

(£) Exercise period

Kris Licht 26.03.2024 – 780 – – 780 40.49 – May 2029–Oct 2029

Shannon Eisenhardt 26.03.2024 – 780 – – 780 40.49 – May 2029–Oct 2029

There have been no changes to the Directors’ interests as set out in the above tables between 31 December 2024 and 5 March 2025.

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133

Directors’ Remuneration Report continued

Directors’ interests in the share capital of the Company (audited)

The Directors in office at the end of the year and those in office at 5 March 2025 had the following

beneficial interests in the ordinary shares of the Company:

5 March

2025

31 December

2024

31 December

2023

Sir Jeremy Darroch 1,663 1,663 234

Andrew Bonfield 1,427 1,427 1,121

Fiona Dawson

298 298 –

Shannon Eisenhardt

3,071 3,071 1,471

Mary Harris 3,597 3,597 3,262

Marybeth Hays

290 290 –

Tamara Ingram 565 565 215

Mehmood Khan 1,418 1,418 1,083

Kris Licht 40,822 40,822 25,995

Elane Stock 4,717 4,717 2,992

Margherita Della Valle 1,058 1,058 738

Olivier Bohuon

– 1,149 1,149

Jeff Carr

– 51,069 51,069

Pam Kirby

– 5,462 5,462

Chris Sinclair

– 14,322 14,322

Alan Stewart

– 427 427

1 Fiona Dawson joined the Board on 1 June 2024

2 Shannon Eisenhardt joined the Board on 17 October 2023 and became CFO in March 2024 following Jeff Carr’s retirement

3 Marybeth Hays joined the Board on 1 February 2024

From 5 May 2024, following his death, Olivier Bohuon is no longer a member of the Board and his interest in shares is shown up to this date

5 Jeff Carr stepped down from the Board on 31 March 2024 and his interest in shares is shown up to this date

6 Pam Kirby stepped down from the Board on 2 May 2024 and her interest in shares is shown up to this date

7 Chris Sinclair stepped down from the Board on 2 May 2024 and his interest in shares is shown up to this date

8 Alan Stewart stepped down from the Board on 2 May 2024 and his interest in shares is shown up to this date

No person who was a Director (or a Director’s connected person) on 31 December 2024 and at 5 March 2025 had any notifiable

share interests in any subsidiary

The Company’s Register of Directors’ Interests (which is open to inspection) contains full details of Directors’ shareholdings and

options to subscribe for shares

As approved and signed on behalf of the Board of Directors.

Mary Harris

Chair of the Remuneration Committee

Reckitt Benckiser Group plc

5 March 2025

This Directors’ Remuneration Report has been prepared in accordance with the provisions of the Companies Act 2006 and

Schedule 8 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 (asamended).

Thereport meets the requirements of the FCA Listing Authority’s Listing Rules and the Disclosure Guidance and Transparency

Rules. Inthis report we describe how the principles of good governance relating to Directors’ remuneration, as set out in the

UKCorporate Governance Code (July 2018) (theCode), are applied in practice. The Remuneration Committee confirms that

throughout the financial year the Company has complied withthese governance rules and best practice provisions.

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134

Introduction

We present below our Directors’ Report for the

year ended 31 December 2024. Certain matters

required to be included in this Directors’ Report

are included in the Strategic Report on pages

1-57, including an indication of the likely future

developments of the business, research and

development activities of the Group and

details of important events affecting the

Company. The Corporate Governance Report

can be found on pages 58-138 and is deemed

to be incorporated into this Directors’ Report

by reference.

Further disclosure requirements which are

deemed to form part of the management

report can be found on the following pages of

this Annual Report and are incorporated into

this Directors’ Report by reference:

Section Pages

Acquisitions and disposals 196

Awards under employee share

schemes and long-term incentive

schemes

194-195

Corporate Governance Report 58–138

Statement of Directors’

Responsibilities, including disclosure

of information to the Auditor

138

Disclosure of Greenhouse Gas

(GHG)emissions

38; 46–51

Employment policy and

employeeinvolvement

8–9

Engagement with employees,

suppliers, customers and others

74–77

Environmental, social and

governance (ESG) matters

38; 45–51

Financial Instruments and

FinancialRisk Management

179-185

Future developments in the

business

1–57

Post Balance Sheet events 196 and

204

Research and development

activities

10–15

Shareholder information 228-231

Sustainability and corporate

responsibility

38; 45–51

Viability Statement 57

Charitable donations 48–50

Subsidiary undertakings (including

overseas branches)

205-217

Information on the Board’s stakeholder

engagement and activities can be found on

pages 74-77 and further information is also set

out in the Section 172 Statement, which can be

found on page 78.

There is no additional information requiring

disclosure under Listing Rule 9.8.4R.

Results and dividends

The Consolidated Income Statement can be

found on page 155. The profit for the year

attributable to equity shareholders of the

Company amounted to £1,426 million.

The Directors resolved to pay an interim

dividend of 80.4 pence per ordinary share

(2023: 76.6 pence), which was paid to

shareholders on 13 September 2024.

The Directors recommend a final dividend

forthe year of 121.7 pence per share (2023:

115.9 pence) which, together with the interim

dividend, makes a total dividend for the year

of202.1 pence per share (2023: 192.5 pence).

During the year no shareholders waived their

right to receive dividend payments. The final

dividend, if approved by the shareholders at

the forthcoming Annual General Meeting (AGM)

of the Company, will be paid on 29 May 2025

toshareholders on the register at the close

ofbusiness on 11 April 2025.

Directors

Details of the Company’s Directors who served

during the financial year ended 31 December

2024 and details of Directors appointed during

2025 can be found on pages 60 to 62.

The rules governing the appointment and

retirement of Directors are set out in the

Company’s Articles of Association (the Articles)

and all appointments are made in accordance

with the Code. Under the terms of reference of

the Nomination Committee, all Director

appointments must be recommended by the

Nomination Committee for approval by the

Board of Directors. All Directors must submit

themselves for re-election each year at the

AGM. With the exception of Mary Harris, all

Directors will offer themselves for election or

re-election at the 2025 AGM in compliance

with the Code. Details of the Directors

standing for election or re-election can be

found in the 2025 Notice of AGM.

Information on the service agreements

ofExecutive Directors can be found in the

Directors’ Remuneration Report on pages

96-133. The letters of appointment of the

Non-Executive Directors are available for

inspection at the Company’s registered office.

Powers of Directors

The Board of Directors is responsible for the

management of the business of the Company

and may exercise all powers of the Company

subject to the provisions of the Company’s

Articles and the Companies Act 2006 (CA

2006). The Articles contain specific provisions

and restrictions regarding the Company’s

power to borrow money. Powers relating to the

alteration of share capital are also included in

the Articles and shareholders are asked to

renew such authorities each year at the AGM.

A copy of the Articles is available on the

Company’s website at www.reckitt.com/

investors/corporate-governance or can be

obtained upon written request from the

Company Secretary or the UK Registrar of

Companies, Companies House.

Directors’ insurance and indemnities

The Company indemnifies the Directors and

Officers of the Company and any Group

subsidiary to the extent permitted by section

236 of CA 2006 in respect of the legal defence

costs for claims against them and third-party

REPORT OF THE DIRECTORS

Strategic report Governance Financial statements Other information Reckitt Annual Report and Accounts 2024

135

Report of the Directors continued

liabilities. The indemnity would not provide

cover for a Director or Officer if that individual

was found to have acted fraudulently

ordishonestly.

The Directors’ and Officers’ liability insurance

cover was maintained throughout the year

ended 31 December 2024 at the

Company’sexpense.

Directors’ interests

A statement of Directors’ interests in the share

capital of the Company is shown on page 133

of the Directors’ Remuneration Report. Details

of Executive Directors’ options to subscribe for

shares in the Company are included on pages

131-132 in the audited part of the Directors’

Remuneration Report.

During the year, no Director had a material

interest in any derivative or financial instrument

relating to the Company’s shares. Details of the

Directors’ remuneration are disclosed in the

Directors’ Remuneration Report on pages

128-133. No Director has a material interest

inany ‘contract of significance’ (as defined

bythe FCA) to which the Company, or any

ofits subsidiary undertakings, is a party as

at31December 2024.

Share capital

As at 31 December 2024, the Company’s issued

share capital consisted of 736,535,179 ordinary

shares of 10 pence each of which 686,622,825

carried voting rights and 49,912,354 ordinary

shares were held in treasury. Each share carries

the right to one vote at general meetings of

the Company. Details of changes to the

ordinary shares issued and of options and

awards granted during the year are set out in

Note 24 to the Financial Statements.

The rights and obligations attached to the

ordinary shares are contained in the Company’s

Articles. There are no restrictions on the voting

rights attached to the Company’s ordinary

shares or the transfer of securities in the

Company except in the case of transfers

ofsecurities:

• That certain restrictions may from time to

time be imposed by laws and regulations

(forexample, insider trading laws)

• Pursuant to the Listing Rules of the United

Kingdom Listing Authority whereby certain

employees of the Company require the

approval of the Company to deal in the

Company’s ordinary shares

No person holds securities in the Company

which carry special voting rights with regard to

control of the Company. The Company is not

aware of any agreements between holders of

securities that may result in restrictions on the

transfer of securities or on voting rights.

Allotment of shares

At the 2024 AGM, authority was granted to the

Directors under section 551 of CA 2006 to allot

shares or grant rights to subscribe for, or

convert any security into, shares of the

Company. The authority granted to the

Directors will expire at the conclusion of the

2025 AGM.

At the 2025 AGM, a resolution will be proposed

to the shareholders to renew the Directors’

authority to allot equity shares representing

approximately one-third of the Company’s

issued share capital as at the latest practicable

date prior to the publication of the Notice

ofAGM.

In accordance with the Investment Association

Share Capital Management Guidelines,

Directors will once again seek authority to allot

further ordinary shares, in connection with a

pre-emptive offer by way of a rights issue,

upto a further one-third of the Company’s

existing issued share capital on the same date.

The authorities sought would, if granted, expire

at the earlier of six months after the Company’s

next accounting reference date, or at the

conclusion of the AGM of the Company held

in2026, whichever is the sooner.

Under section 561 of CA 2006, shareholders

have a right of first refusal in relation to certain

issues of new shares. A special resolution will

also be proposed to renew the Directors’

power to allot shares in the capital of the

Company without complying with the pre-

emption rights in the CA 2006 in certain

circumstances up to a maximum of 10% of the

Company’s issued share capital.

This disapplication authority sought is in line

with institutional shareholder guidance and,

inparticular, with the Pre-Emption Group

Statement of Principles issued in

November2023.

This authority will maintain the Company’s

flexibility in relation to future share issues,

including issues required to finance business

opportunities, should appropriate

circumstances arise.

Authority to purchase own shares

Authority was granted to the Directors at the

2024 AGM for the purposes of section 701 of CA

2006 to repurchase shares in the market and this

authority remains valid until the conclusion of

the forthcoming AGM.

On 24 July 2024, the Company announced,

consistent with its capital allocation framework,

a £1 billion share buyback programme to

becarried out over 12 months (the 2024

Programme). On26 July 2024, the Company

announced the commencement of the first

tranche of the 2024Programme to return up to

£250 million toshareholders, which completed

on 1October2024. On 24 September 2024,

theCompany announced the second tranche

ofthe2024 Programme to return up to

£250million to shareholders, which completed

on 10 December 2024. On 9 December 2024,

the Company announced the commencement

of the third and final tranche of the 2024

Programme to return up to £500 million

toshareholders, which commenced on

12December 2024 and will end on or

before30June 2025.

During the financial year ended 31 December

2024, the Company purchased in aggregate

28,488,957 ordinary shares of 10 pence each

and subsequently transferred them to treasury.

The total cost of the shares purchased during

the financial year ended 31 December 2024

was £1,328 million. A further 3,010,976 shares

have been repurchased between 1 January

2025 and 3 March 2025 at a cost of £154 million.

As at the last practicable date 52,435,986

ordinary shares held in treasury (representing

7.66% of the issued ordinary shares) for

thepurposes of satisfying the Company’s

obligations under employee equity

incentiveschemes.

Shares held in treasury are not eligible to

participate in dividends and do not carry any

voting rights.

At the 2025 AGM, the Directors will seek to

renew the authority granted to them under

section 701 of CA 2006 to repurchase shares in

the market. Such authority, if approved, will be

limited to a maximum of 68,400,000 ordinary

shares, representing less than 10% of the

Company’s issued ordinary share capital

(excluding Treasury shares) calculated as at the

latest practicable date prior to publication of

the Notice of AGM, and sets the minimum and

maximum prices which may be paid.

Strategic report Governance Financial statements Other information Reckitt Annual Report and Accounts 2024

136

Report of the Directors continued

Change of control and

significantagreements

There are a number of agreements that take

effect, alter or terminate upon a change of

control of the Company following a takeover.

The shareholder agreement between the

Company and JAB Holdings B.V. (JAB) at the

time of the merger in 1999 entitled JAB to

nominate Board Directors.

A holding in excess of 20% or 10% of the

Company’s ordinary shares entitles JAB to

nominate two Directors or one Director

respectively. JAB’s current holding is below this

amount and there is currently no nominated

Director on the Board. None of these are

deemed to be significant in terms of their

potential impact on the business of the Group

as a whole.

There are no significant agreements between

the Company and its Directors or employees

providing for compensation for loss of office or

employment that occurs because of a takeover

bid, except that provisions of the Company’s

share plans may cause options and awards

granted under such plans to vest on a takeover,

and if the employment of an Executive Director

or other employee is terminated by the

Company following a takeover then there may

be an entitlement to appropriate notice and/or

compensation as provided in applicable

contracts or terms of employment.

There is no information that the Company is

required to disclose about persons with whom

it has contractual or other arrangements

with,which are essential to the business

oftheCompany.

Employees

The Group is committed to the principle of

equal opportunity in employment: no applicant

or employee receives less favourable treatment

on the grounds of nationality, age, gender,

religion, race, ethnicity, disability, sexual

orientation or any other protected characteristic.

Employment applications are considered on the

basis of aptitude and ability, and fair

consideration is given to all applications.

We have issued specific guidance on inclusive

recruitment practices for managers with hiring

responsibilities. Where an employee has an

existing disability or becomes disabled during

their employment, practical efforts are made

to assist the employee in continuing their

employment and arranging appropriate

support such as workplace adjustments.

All employees are treated in a fair and inclusive

manner throughout their careers, whether that

means accessing training, learning and

development opportunities or career

progression. Further details of our Inclusion and

Anti-Harassment Policies can be found at

www.reckitt.com/our-company/policies-

reports and on pages 8 and 9.

It is essential to the continued improvement in

performance, efficiency and productivity

throughout the Group that each employee

understands the Group’s strategies, policies

and procedures. Open and regular

communication with employees at all levels is

an essential part of the performance

management process.

On-the-job learning and continuous

development take place throughout the year,

with all employees having a formal annual

Performance Development Review with their

line manager to discuss business objectives

and create a Personal Development Plan. This is

also an important opportunity for employees to

discuss their ongoing development and career

ambitions. We encourage continuous

development conversations throughout the

year. These annual reviews also provide a way

of identifying candidates for our Future Leader

Development Programmes.

Reckitt’s Leadership Behaviours are critical

enablers of our success. At Reckitt, we Own,

Create, Deliver and Care. These behaviours are

for everyone in the organisation and are part of

our annual Performance Development Reviews.

We create an inclusive environment for

employees to act with integrity, responsibility

and consistency in line with our Purpose,

Compass and ambitions as a business as set

out on page 8.

Employee matters, incentives

andshareownership

Group incentive schemes reinforce financial

and economic factors affecting the

performance of the business. Employees

typically have three to five performance

objectives which are directly linked to their job

and their specific contribution to the overall

performance of the Group. In addition,

presentations, videos and Q&A sessions are

held for employees around the world on

publication of the Group’s financial results to

provide employees with awareness of the

financial and economic factors affecting the

Company’s performance, and so that employee

views are fed back to management and taken

into account when decisions are made.

The Company operates three all-employee

share plans. Through these schemes, the Board

encourages employees to become

shareholders and to participate in the Group’s

employee share ownership plans, should they

wish. Savings-related share plans covering

most of the world give employees the

opportunity to acquire shares in the Company

by means of making regular savings.

We currently have around 13,000 colleagues

participating in one of Reckitt’s all-employee

share plans. Further details on our all-employee

share plans and awards made under executive

share plans can be found in Note 25 on pages

194–195 of the Financial Statements.

Strategic report Governance Financial statements Other information Reckitt Annual Report and Accounts 2024

137

Report of the Directors continued

Political donations

During the year, the Company and its

subsidiaries did not make any political

donations or incur any political expenditure, nor

were any contemplated. In keeping with

previous practice, at the forthcoming AGM

shareholders will be asked to approve, on a

precautionary basis, for the Company and its

subsidiaries to make political donations and

incur political expenditure for the period

ending 31 December 2025.

Financial instruments and risk

The financial risk management objectives and

policies of the Group are set out in Note 15,

from page 179 of the Financial Statements.

TheNote sets out information on the

Company’s policy for hedging each major

typeof forecasted transactions for which

hedge accounting is used, and our exposure

tocurrency, price risk, credit risk, liquidity

riskand cash flow risk in relation to the use

offinancial instruments.

Amendment to Articles of Association

The Articles of the Company were adopted

in2012 and amended in 2015 and 2021. Any

amendments to the Articles may be made

inaccordance with the provisions of CA 2006,

by special resolution of the shareholders.

Independent Auditor

The External Auditor, KPMG, has indicated

itswillingness to continue in office and a

resolution proposing the reappointment of

KPMG, and to authorise the Audit Committee

todetermine its remuneration for the financial

year ending 31 December 2025, will be

proposed at the forthcoming AGM.

Application of the UK Corporate

Governance Code 2018

We report against the requirements of the

Code issued by the Financial Reporting Council.

Details of how the Company has applied the

Code principles and provisions can be found in

the Corporate Governance Report on pages

58-138. The Board has received an update in

relation to the changes to the Code following

the publication of the UK Corporate

Governance Code 2024 and intends to be

compliant with all the new relevant provisions

within the timeframes indicated. The Board has

carried out an evaluation of the changes

required in the reporting requirements.

Annual General Meeting (AGM)

The forthcoming AGM of Reckitt Benckiser

Group plc will be held on Thursday 8 May 2025

at 14:00 at the London Heathrow Marriott Hotel,

Bath Road, Hayes, Middlesex UB3 5AN.

A separate Notice of Meeting, setting out the

resolutions to be proposed to shareholders,

isavailable at www.reckitt.com/investors/

annual-general-meetings. The Board considers

that each of the resolutions is in the best

interests of the Company and its shareholders

as a whole. The Directors unanimously

recommend that shareholders vote in favour

ofall the resolutions, as they intend to do so

inrespect of their own beneficial holdings.

By Order of the Board

Catheryn O’Rourke

Company Secretary

Reckitt Benckiser Group plc

5 March 2025

103–105 Bath Road

Slough, Berkshire

SL1 3UH

Company registration number: 6270876

Legal Entity Identifier: 5493003JFSMOJG48V108

Substantial shareholdings

As at 31 December 2024, the Company had received the following notices of substantial interests

(3% or more) in the total voting rights of the Company:

Holder Notification Interest Rights

Massachusetts Financial Services Company 16 January 2013

Indirect 5.00%

Morgan Stanley Investment Management Limited 20 October 2022

Direct 4.99%

1 Under a section 793 CA 2006 request, Massachusetts Financial Services Company confirmed on 11 February 2025 that

itsaggregate holding had decreased. The voting percentage was not disclosed

2 Under a section 793 CA 2006 request, Morgan Stanley Investment Management Limited confirmed on 5 February 2025

thatitsaggregate holding had decreased. The voting percentage was not disclosed

As at 5 March 2025, the Company has not received any further notifications under DTR 5 of the

Disclosure Guidance and Transparency Rules.

Strategic report Governance Financial statements Other information Reckitt Annual Report and Accounts 2024

138

STATEMENT OF DIRECTORS’ RESPONSIBILITIES

In respect of the Annual Report and Financial Statements

The Directors are responsible for preparing the

Annual Report and the Group and Parent

Company Financial Statements in accordance

with applicable law and regulations.

Company law requires the Directors to prepare

Group and Parent Company Financial

Statements for each financial year. Under that

law, we are required to prepare the Group

Financial Statements in accordance with

UK-adopted international accounting standards

and applicable law and have elected to

prepare the Parent Company Financial

Statements in accordance with UK accounting

standards and applicable law (UK Generally

Accepted Accounting Practice), including FRS

102, the Financial Reporting Standard applicable

in the UK and Republic of Ireland. The Group, in

addition to complying with its legal obligation

to apply UK-adopted international accounting

standards, has also applied IFRS Accounting

Standards as issued by the International

Accounting Standards Board (IASB).

Under company law the Directors must not

approve the Financial Statements unless they

are satisfied that they give a true and fair view

of the state of affairs of the Group and Parent

Company and of the Group’s profit or loss for

that period. In preparing each of the Group and

Parent Company Financial Statements, the

Directors are required to:

• Select suitable accounting policies and then

apply them consistently

• Make judgements and estimates that are

reasonable, relevant and reliable

• For the Group Financial Statements, state

whether they have been prepared in

accordance with UK-adopted international

accounting standards and, due to a

requirement of the US SEC, state they have

been prepared in accordance with IFRS

Accounting Standards as issued by the IASB

• For the Parent Company Financial

Statements, state whether applicable UK

accounting standards have been followed,

subject to any material departures disclosed

and explained in the Parent Company

Financial Statements

• Assess the Group and Parent Company’s

ability to continue as a going concern,

disclosing, as applicable, matters related

to going concern

• Use the going concern basis of accounting

unless they either intend to liquidate the

Group or the Parent Company or to cease

operations or have no realistic alternative

butto do so

The Directors are responsible for keeping

adequate accounting records that are

sufficient to show and explain the Parent

Company’s transactions and disclose with

reasonable accuracy at any time the financial

position of the Parent Company and enable

them to ensure that its Financial Statements

comply with the Companies Act 2006. They

areresponsible for such internal controls as

they determine are necessary to enable the

preparation of Financial Statements that are

free from material misstatement, whether

dueto fraud or error, and have general

responsibility for taking such steps as are

reasonably open to them to safeguard the

assets of the Group and to prevent and

detectfraud and other irregularities.

Under applicable law and regulations, the

Directors are also responsible for preparing a

Strategic Report, Directors’ Report, Directors’

Remuneration Report and Corporate

Governance Statement that complies with that

law and those regulations.

The Directors are responsible for the

maintenance and integrity of the corporate and

financial information included on the

Company’s website. Legislation in the UK

governing the preparation and dissemination of

Financial Statements may differ from legislation

in other jurisdictions. In accordance with

Disclosure Guidance and Transparency Rule

(DTR) 4.1.16R, the Financial Statements will form

part of the Annual Financial Report prepared

under DTR 4.1.17R and 4.1.18R. The External

Auditor’s Report on these Financial Statements

provides no assurance over whether the annual

financial report has been prepared in

accordance with those requirements.

Responsibility statement of the Directors

in respect of the annual financial report

Each of the Directors, whose names and

functions are listed on pages 60-62 of the

Annual Report, confirm that, to the best of their

knowledge:

• The Financial Statements, prepared in

accordance with the applicable set of

accounting standards, give a true and fair

view of the assets, liabilities, financial

position and profit or loss of the Company

and the undertakings included in the

consolidation taken as a whole

• The Annual Report and Financial Statements

includes a fair review of the development

and performance of the business and the

position of the issuer and the undertakings

included in the consolidation taken as

awhole, together with a description of

theprincipal risks and uncertainties that

theyface

We consider the Annual Report and Financial

Statements, taken as a whole, is fair, balanced

and understandable and provides the

information necessary for shareholders to

assess the Group and Parent’s position and

performance, business model and strategy.

In the case of each Director in office at the

date the Directors’ Report is approved:

• So far as we are aware, there is no relevant

audit information of which the Group and

Parent’s Auditor is unaware

• We have taken all the steps that we ought

tohave taken as a Director in order to

makeourselves aware of any relevant audit

information and to establish that the Group

and Parent’s Auditor is aware of that

information

On behalf of the Board

Catheryn O’Rourke

Company Secretary

Reckitt Benckiser Group plc

103-105 Bath Road

Slough, Berkshire

SL1 3UH

5 March 2025

Strategic report Governance Financial statements Other information Reckitt Annual Report and Accounts 2024

139

1 Our opinion is unmodified

In our opinion:

• The financial statements of Reckitt Benckiser Group plc give a true and fair view of the state

of the Group’s and of the Parent Company’s affairs as at 31 December 2024, and of the

Group’s profit for the year then ended;

• The Group Financial Statements have been properly prepared in accordance with UK-

adopted international accounting standards;

• The Parent Company Financial Statements have been properly prepared in accordance with

UK accounting standards, including FRS 102, the financial reporting standard applicable in the

UK and Republic of Ireland; and

• The Group and Parent Company Financial Statements have been prepared in accordance

with the requirements of the Companies Act 2006.

Additional opinion in relation to IFRS Accounting Standards as issued by the IASB:

• As explained in Note 1 to the Group Financial Statements, the Group, in addition to complying with

its legal obligation to apply UK-adopted international accounting standards, has also applied IFRS

Accounting Standards as issued by the International Accounting Standards Board (“IASB”).

• In our opinion the Group Financial Statements have been properly prepared in accordance

with IFRS Accounting Standards as issued by the IASB.

What our opinion covers

We have audited the Group and Parent Company Financial Statements of Reckitt Benckiser Group

plc (“the Company”) for the year ended 31 December 2024 (FY24) included in the Annual Report,

which comprise:

Group (Reckitt Benckiser Group plc and its subsidiaries) Parent Company (Reckitt Benckiser Group plc)

Group Income Statement, Group Statement of

Comprehensive Income, Group Balance Sheet,

Group Statement of Changes in Equity, Group

Cash Flow Statement and Notes 1 to 31 to the

Group Financial Statements, including the

accounting policies in Note. 1.

Parent Company Balance Sheet, Parent Company

Statement of Changes in Equity and Notes 1 to 12

to the Parent Company Financial Statements,

including the accounting policies in Note 1.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”)

and applicable law. Our responsibilities are described below. We believe that the audit evidence

we have obtained is a sufficient and appropriate basis for our opinion. Our audit opinion and

matters included in this report are consistent with those discussed and included in our reporting

tothe Audit Committee.

We have fulfilled our ethical responsibilities under, and we remain independent of the Group in

accordance with, UK ethical requirements including the FRC Ethical Standard as applied to listed

public interest entities.

2 Overview of our audit

Factors driving our view of risks

Following our FY23 audit, and considering developments affecting the Group since then, we have

updated our risk assessment.

The risk of impairment associated with the Biofreeze CGU was assessed to be less quantitatively

significant to the financial statements than in prior periods and is therefore no longer assessed to

be a Key Audit Matter.

The risk associated with the accounting for the forward purchase of shares held by the non-

controlling interest of “RB Manon” has also decreased, due to it being a significant unusual

transaction in FY23.

We have not observed a material change in the level of risk relating to the remaining Key Audit

Matters.

Our risk assessment also considered compliance with laws and regulations, specifically those that

could reasonably be expected to have a material effect on the financial statements.

Key Audit Matters VS FY23 Item

Recoverability of IFCN CGU’s goodwill and indefinite life intangible assets  4.1

Revenue recognition in relation to trade spend arrangements and

associated accruals  4.2

Potential liabilities arising from the US litigation concerning

NecrotizingEnterocolitis (NEC)  4.3

Provisions for uncertain tax positions  4.4

Potential liabilities arising from the amendment to the South Korean

Humidifier Sanitiser (HS) law  4.5

Recoverability of the Parent Company’s investment in

ReckittBenckiserLimited  4.6

Audit Committee interaction

During the year, the Audit Committee met four times. KPMG are invited to attend all Audit

Committee meetings and are provided with an opportunity to meet with the Audit Committee in

private sessions without the Executive Directors being present. For each Key Audit Matter, we have

set out communications with the Audit Committee in section 4, including matters that required

particular judgement for each.

The matters included in the Audit Committee Chair’s report on page 86 are materially consistent

with our observations of those meetings.

Independent Auditor’s Report

To the members of Reckitt Benckiser Group plc

Strategic report Governance Financial statements Other information Reckitt Annual Report and Accounts 2024

140

Independent Auditor’s Report continued

2 Overview of our audit continued

Our Independence

We have fulfilled our ethical responsibilities under, and we remain independent of the Group in

accordance with, UK ethical requirements including the FRC Ethical Standard as applied to listed

public interest entities.

We have not performed any non-audit services during FY24 or subsequently which are prohibited

by the FRC Ethical Standard.

We were first appointed as auditor by the shareholders for the year ended 31 December 2018. The

period of total uninterrupted engagement is for the seven financial years ended 31 December

2024.

The group engagement partner is required to rotate every five years. As these are the third set of

the Group’s financial statements signed by Andrew Bradshaw, he will be required to rotate off

after the audit of the financial statements for the year ending 31 December 2026.

The average tenure of component engagement partners reporting is 3 years, with the shortest

being 1 year and the longest being 6 years.

Total audit fee £19.7m

Audit related fees (including interim review) £0.9m

Other services £3.6m

Non-audit fee as a percentage of total audit and audit related fee 17.5%

Date first appointed 3 May 2018

Uninterrupted audit tenure 7 years

Next financial period which requires a tender 2028

Tenure of group engagement partner 3 years

Average tenure of component signing partners 3 years

Materiality

(Item 6 below)

The scope of our work is influenced by our view of materiality and our assessed risk of material

misstatement.

We have determined overall materiality for the Group Financial Statements as a whole at £140m

(FY23: £140m) and for the Parent Company Financial Statements as a whole at £70m (FY23: £70m).

Consistent with FY23, we determined that group normalised profit before tax from continuing

operations (‘PBTCO’) remains the benchmark for the Group. As such, we based our Group

materiality on normalised PBTCO of £3,081m (FY23: £3,130m), of which it represents 4.5%

(FY23:4.5%).

Materiality for the Parent Company Financial Statements was determined with reference to

abenchmark of Parent Company total assets of which it represents 0.45% (FY23: 0.46%).

Materiality levels used in our audit

Group Materiality

Group Performance

Materiality

Highest Component

Materiality

Parent Company

Materiality

Lowest Component

Materiality

AMPT

140

105

FY24 £m FY23 £m

140

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2 Overview of our audit continued

Group scope

(Item 7 below)

We have performed risk assessment procedures to determine which of the Group’s components

are likely to include risks of material misstatement to the Group Financial Statements, what audit

procedures to perform at these components and the extent of involvement required from our

component auditors around the world.

The Group operates in more than 60 countries across six continents, with the largest market being

the United States of America. We scoped the audit by obtaining an understanding of the Group

and its environment, and assessing the risk of material misstatement in each financial statement

caption, at both the Group and component level.

Based on this assessment, we performed audit procedures at 52 of the Group’s 363 identified

components across 25 countries.

The components within the scope of our work accounted for the percentages illustrated below.

In addition, for the remaining components for which we performed no audit procedures, we

performed analysis at an aggregated group level to re-examine our assessment that there isnot a

reasonable possibility of a material misstatement in these components.

We consider the scope of our audit, as communicated to the Audit Committee, to be an

appropriate basis for our audit opinion.

The impact of climate change on our audit

In planning our audit, we have considered the potential impact of risks arising from climate change

on the Group’s business and its financial statements. The Group has set out its targets as part of

their 2030 Sustainability Ambitions, which include energy, emissions, water, waste and packaging

related metrics. This includes two targets validated by the Science Based Targets initiative (“SBTi”)

to reduce absolute operational Scope 1 and 2 GHG emissions by 65%, absolute product carbon

footprint emissions by 50% both by 2030 from a 2015 base year. Other targets aim to reduce water

use per tonne of production by 30% by 2025 from a 2015 base year, increase the use of renewable

electricity to 100% by 2030 and for 100% of plastic packaging to be recyclable or reusable by 2025.

Further information is provided in the Strategic Report on page 38 and in the Sustainability

Performance Review on page 45.

Whilst the Group has set these targets, in Note 1 to the consolidated financial statements the

Directors have stated that they have considered the impact of climate change risks and that they

do not believe that there is a material impact on the financial reporting judgements and estimates

and as a result the valuations of the Group’s assets and liabilities have not been significantly

impacted by these risks as at 31 December 2024.

As a part of our audit we have performed a risk assessment to determine if the potential impacts

of climate change may materially affect the financial statements and our audit. We did this by

making enquiries of management and inspecting internal reports in order to independently assess

the climate-related risks and their potential impact.

The most likely potential impact of climate risk and plans on these financial statements would be

on the forward-looking assessments of non-current assets.

We have considered the sensitivity of the assumptions used in the impairment testing of goodwill

and indefinite-life intangible assets. Given that the climate change related assumptions are not

considered a major source of estimation uncertainty, the carrying amounts of these assets in the

financial statements are not considered to be materially sensitive to the impact of risks arising

from climate change. We considered the impact of ESG related costs on the value in use of the

Group’s CGUs, the impact of such costs on cash flows is minimal and not considered a key

assumption when assessing impairment. We have considered the impact of climate change

targets on the fair value of pension assets. However, given the nature of the assets being primarily

bonds and insurance contracts, this has not been considered to be a key assumption in the

valuation. We have also considered the costs and consumer preferences impact of climate change

as part of our consideration of the going concern basis of preparation.

We determined that climate related risks do not have a significant impact on our audit or Key Audit

Matters. We have read the Group’s disclosures of climate related information in the Strategic

Report and the Group’s TCFD Summary on pages 218-222 and considered consistency with the

financial statements and our audit knowledge.

76%

Group Profit

before tax

84%

Group Total

assets

Group

Revenue

81%

We performed audit procedures in relation to components

that accounted for the following percentages:

Our audit procedures covered

80.7% of Group revenue:

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3 Going concern, viability and principal risks and uncertainties

The Directors have prepared the financial statements on the going concern basis as they do not

intend to liquidate the Group or the Parent Company or to cease their operations, and as they have

concluded that the Group’s and the Parent Company’s financial position means that this is realistic.

They have also concluded that there are no material uncertainties that could have cast significant

doubt over their ability to continue as a going concern for at least a year from the date of approval

of the financial statements (“the going concern period”).

Going concern

We used our knowledge of the Group, its industry, and the general economic environment to identify

the inherent risks to its business model and analysed how those risks might affect the Group’s and

Parent Company’s financial resources or ability to continue operations over the going concern period.

The risks that we considered most likely to adversely affect the Group’s and Parent Company’s

available financial resources and metrics relevant to debt covenants over this period were:

• The failure to identify, assess and proactively respond to new or changing regulations could

result in increased regulatory scrutiny, costly product reformation or product recalls, potential

litigation and removal of the license to sell a product.

• A reliance on limited number of suppliers, geographic concentration, or an excessive

dependence on specific routes, sub-suppliers or technologies could render the supply chain

vulnerable to disruption.

• Geopolitical events, including threats of conflict, trade wars, economic sanctions and political

polarisation, could disrupt operations.

• Failure to identify or respond to a product quality and/or safety issue may result in potential

consumer harm or death, financial settlements, costly recalls and reputational damage.

• Reliance on a few key manufacturing sites to produce products exposes the Group to

unexpected shutdown at one of these sites.

• Adverse economic conditions, together with high level of volatility and unpredictability in the

macroeconomic environment, could impact consumer demand for the Group’s brands.

• Potential adverse financial outcomes from the ongoing NEC litigation.

We considered whether these risks could plausibly affect the liquidity or covenant compliance in

the going concern period by comparing severe, but plausible downside scenarios that could arise

from these risks individually and collectively against the level of available financial resources and

covenants indicated by the Group’s financial forecasts.

We assessed the completeness and accuracy of the going concern disclosure in Note 1 to the

Group and Parent Company’s Financial Statements gives a complete and accurate description of

the Directors’ assessment of going concern.

Accordingly, based on those procedures, we found the Directors’ use of the going concern basis of

accounting without any material uncertainty for the Group and Parent Company to be acceptable.

However, as we cannot predict all future events or conditions and as subsequent events may

result in outcomes that are inconsistent with judgements that were reasonable at the time they

were made, the above conclusions are not a guarantee that the Group or the Parent Company will

continue in operation.

Our conclusions

• We consider that the Directors’ use of the going concern basis of accounting in the preparation

of the financial statements is appropriate;

• We have not identified, and concur with the Directors’ assessment that there is not, a material

uncertainty related to events or conditions that, individually or collectively, may cast significant doubt on

the Group’s or Parent Company’s ability to continue as a going concern for the going concern period;

• We have nothing material to add or draw attention to in relation to the Directors’ statement in

Note 1 to the financial statements on the use of the going concern basis of accounting with no

material uncertainties that may cast significant doubt over the Group and Parent Company’s use

of that basis for the going concern period, and we found the going concern disclosure in Note 1

to be acceptable; and

• The same statement under the UK Listing Rules is materially consistent with the financial

statements and our audit knowledge.

Disclosures of emerging and principal risks and longer-term viability

Our responsibility

We are required to perform procedures to identify whether there is a material inconsistency

between the Directors’ disclosures in respect of emerging and principal risks and the viability

statement, and the financial statements and our audit knowledge.

Based on those procedures, we have nothing material to add or draw attention to in relation to:

• The Directors’ confirmation within the Risk Management on page 66 that they have carried out a

robust assessment of the emerging and principal risks facing the Group, including those that

would threaten its business model, future performance, solvency and liquidity;

• The Principal and Emerging Risks disclosures describing these risks and how emerging risks are

identified and explaining how they are being managed and mitigated; and

• The Directors’ explanation in the Viability Statement of how they have assessed the prospects

of the Group, over what period they have done so and why they considered that period to be

appropriate, and their statement as to whether they have a reasonable expectation that the

Group will be able to continue in operation and meet its liabilities as they fall due over the

period of their assessment, including any related disclosures drawing attention to any necessary

qualifications or assumptions.

We are also required to review the Viability Statement set out on page 57 under the UK Listing Rules.

Our work is limited to assessing these matters in the context of only the knowledge acquired

during our financial statements audit. As we cannot predict all future events or conditions and as

subsequent events may result in outcomes that are inconsistent with judgements that were

reasonable at the time they were made, the absence of anything to report on these statements is

not a guarantee as to the Group’s and Parent Company’s longer-term viability.

Our reporting

We have nothing material to add or draw attention to in relation to these disclosures.

We have concluded that these disclosures are materially consistent with the financial statements

and our audit knowledge.

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4 Key Audit Matters

What we mean

Key Audit Matters are those matters that, in our professional judgement, were of most significance

in the audit of the financial statements and include the most significant assessed risks of material

misstatement (whether or not due to fraud) identified by us, including those which had the

greatest effect on:

• the overall audit strategy;

• the allocation of resources in the audit; and

• directing the efforts of the engagement team.

We include below the Key Audit Matters in decreasing order of audit significance together with ourkey

audit procedures to address those matters and our results from those procedures. These matters were

addressed, and our results are based on procedures undertaken, for the purpose ofour audit of the

financial statements as a whole. We do not provide a separate opinion on these matters.

4.1 Recoverability of the goodwill and indefinite life intangible assets relating to the

IFCNCGU (Group)

Financial Statement Elements

FY24 FY23

Goodwill and indefinite life intangible assets (IFCN CGU) £4,472m £5,104m

Impairment charge (IFCN CGU) £696m £810m

Our assessment of risk vs FY23

We have not identified any significant change to the level of risk relating to the

recoverability of the goodwill and indefinite life intangible assets relating to the IFCN

CGU.



Our results

FY24: acceptable

FY23: acceptable

Description of the Key Audit Matter

The risk: forecast-based assessment

The recoverability of goodwill and indefinite life intangible assets relating to the Infant and Child

Nutrition cash generating unit (“IFCN CGU”) is assessed using value in use which is based on

forecast financial information within a discounted cash flow model (“the Model”).

Key assumptions in the Model include forecast financial performance, in particular net revenue in

North America, the discount rate, gross margin (including the impact of expected capital

expenditure) as well as external factors impacting forecast category growth.

In the current year the Group recognised an impairment charge against goodwill relating to the

IFCN CGU of £696m (FY23: £810m), reflecting significantly increased forecast capital expenditure

requirements combined with higher uncertainty in margin growth assumption and FDA regulatory

pressures in the US.

The effect of these matters is that, as part of our risk assessment, we determined that the

recoverable amount of the IFCN CGU, and consequently the impairment charge, has a high degree

of estimation uncertainty with a potential range of reasonable outcomes greater than our

materiality for the financial statements as a whole, and possibly many times that amount.

We also identified a fraud risk related to the estimation of the recoverable amount of the goodwill

and intangible assets relating to the IFCN CGU in response to possible pressures on the Group to

realise value from significant transactions.

Our response to the risk

Sensitivity analysis: We considered the sensitivity of the recoverable amount of the goodwill and

intangible assets relating to the IFCN CGU to reasonably possible changes in assumptions and

focused our attention on those assumptions which we considered the most critical to the

recoverable amount of the IFCN CGU.

Benchmarking assumptions: In response to the risk of fraud, we evaluated the net revenue growth

assumptions in the Model with reference to historic performance and external market data relating

to projected growth for the relevant categories.

We benchmarked margin and other costs assumptions against historical achievement, external

cost inflation growth forecasts and our assessment of the likely impact of expected capital

expenditure, leveraging the experience of KPMG supply chain consultants.

Personnel interviews: We compared judgements made centrally to discussions we held

directlywith the relevant members of the Global Business Unit and country management.

Weconsidered and challenged the Group’s assumptions and corroborated these views with

theGroup’s in-market teams.

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4 Key Audit Matters continued

4.1 Recoverability of the goodwill and indefinite life intangible assets relating to the

IFCNCGU (Group) continued

Description of the Key Audit Matter continued

Our response to the risk continued

Valuation expertise: Using our own valuation specialists, we challenged the appropriateness of key

assumptions underlying the estimation of the recoverable amounts of the goodwill and intangible

assets relating to the IFCN CGU, this included the discount rate used in the Model. We assessed

whether the premium applied to the discount rate was appropriate considering the inherent

forecasting uncertainty, particularly in relation to expected capital expenditure. We also used

implied earnings multiples to benchmark the recoverable amount of the IFCN CGU using implied

earnings multiples to comparable companies and historic transactions within the industry.

Assessing transparency: We assessed whether the Group’s disclosures in Note 9 of the sensitivity of

the outcome of the impairment assessment to changes in key assumptions reflected the risks inherent

in the recoverable amount of goodwill and indefinite life intangible assets relating to the IFCN CGU.

We performed the tests above rather than seeking to rely on any of the Group’s controls because

the nature of the balance is such that we would expect to obtain audit evidence primarily through

the detailed procedures described.

Communications with the Reckitt Benckiser Group’s Audit Committee

Our discussions with and reporting to the Audit Committee included:

• Our approach to audit of the impairment assessment of goodwill and indefinite life intangible

assets relating to the IFCN CGU, including details of our planned substantive procedures and

the extent of our control reliance.

• For the recoverable amounts of the IFCN CGU, whether and where the Group’s estimate lay

within our reasonable range.

• The adequacy of the disclosures, particularly as they relate to the sensitivity of the

recoverable amount of the IFCN CGU to key assumptions including net revenue, gross margin,

and discount rate.

Areas of particular auditor judgement

We identified the following as the areas of particular auditor judgement:

• We identified an area of particular auditor judgement to be the assessment of whether the

Directors’ overall estimate of the recoverable amount of the IFCN CGU, considering key

assumptions including net revenue, gross margin, and discount rate, fell within our acceptable

range.

Our results

We found the carrying value of goodwill and indefinite life intangible asset balances relating to

the IFCN CGU and the related impairment charge of £696m to be acceptable (FY23 result: the

Group’s conclusion that there was an impairment of the goodwill and intangible assets to the

IFCN CGU of £810m to be acceptable).

Further information in the Annual Report and accounts: See the Audit Committee Report on page

90 for details on how the Audit Committee considered recoverability of goodwill and indefinite life

intangible assets relating to the IFCN CGU as an area of significant attention, page 90 for the

accounting policy on recoverability of goodwill and indefinite life intangible assets and Note 9 for

the financial disclosures.

4.2 Revenue recognition in relation to trade spend arrangements and associated

accruals(Group)

Financial Statement Elements

FY24 FY23

Trade spend accruals £1,074m £1,125m

Our assessment of risk vs FY23

We have not identified any significant changes to our assessment of the level of risk

relating to trade spend arrangements and related accruals compared to FY23.



Our results

FY24: acceptable

FY23: acceptable

Description of the Key Audit Matter

The risk: subjective estimate

The Group regularly enters into complex arrangements providing pricing, placement and other

promotional rebates and allowances to its customers. These trade spend arrangements can vary in

complexity by market, product category and customer.

Revenue is measured net of outflows arising from such arrangements which, for agreements or

practices spanning a period end, requires an estimate of the extent and value of future activity.

These estimates can be subjective and require the use of assumptions that are susceptible to

management bias and fraud.

The Group operates a variable compensation scheme with outturns directly linked to financial

performance against targets. Strong financial performance could create an incentive to defer

revenues into the next financial year by overstating trade spend accruals. Weaker financial

performance may also create an incentive to understate trade spend accruals. There is a risk that

inappropriate judgements in multiple markets may, in aggregate, lead to a material misstatement

of the Group’s Financial Statements.

The effect of these matters is that, as part of our risk assessment, we determined that trade

spend accruals carry a high degree of estimation uncertainty, with a potential range of reasonable

outcomes greater than our materiality for the Group’s financial statements as a whole.

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4 Key Audit Matters continued

4.2 Revenue recognition in relation to trade spend arrangements and associated

accruals(Group) continued

Our response to the risk

Our procedures performed across 29 components to address the risk included:

Accounting policies: We critically assessed the appropriateness of the Group’s accounting policies

relating to trade spend against the requirements of IFRS 15 Revenue from Contracts with

Customers.

Historical comparisons: For a selection of the more judgemental accruals, our component teams

assessed the historical accuracy of the accruals by:

• Comparing those recognised in the prior year to the actual trade spend subsequently incurred;

and

• Where there were significant differences, considering whether such differences related to a

change in estimate or an error, and evaluating whether any overstatement or understatement

identified was material.

Tests of detail: Testing was focused on those trade spend accruals we considered to be more

judgemental, or potentially subject to management bias or fraud. We performed procedures to a

precision level sufficient to address the risk of material misstatement due to fraud and error. For a

sample of these trade spend accruals, our component teams:

• Reperformed the calculation to assess whether it was mathematically accurate;

• Identified the key assumptions in the calculation of each accrual selected, such as forecast sales

volumes, rebate structure and settlement mechanism;

• Agreed those key assumptions to relevant documentation, such as invoices received after the

balance sheet date, customer agreements or third-party consumption data; and

• Assessed whether the key assumptions were consistent with external data points and the

Group’s historic experience of comparable trade spend arrangements.

Expectation vs outcome: We performed analytical procedures over the aggregated balance at a

group level, and our component teams completed disaggregated analytical procedures over the

individual balances.

Assessing transparency: We assessed the adequacy of the Group’s disclosures in Note 1 in relation

to the degree of estimation in the trade spend accruals and the resulting amount of trade spend

deducted from Net Revenue.

We performed the detailed tests above rather than seeking to rely on any of the Group’s controls

because our knowledge of the design and implementation of these controls and related IT

controls indicated that we would not be able to obtain the required evidence to support reliance

on controls.

Communications with the Reckitt Benckiser Group plc’s Audit Committee

Our discussions with and reporting to the Audit Committee included:

• Our approach to the audit of the trade spend accruals including details of our planned

substantive procedures, use of unpredictable procedures and the extent of our control reliance.

• Our assessment of findings from our component team’s procedures, including the historical

comparisons of FY23 accruals and whether those indicated material errors, and whether the

FY24 accruals in relation to trade spend were acceptable.

Areas of particular auditor judgement

We performed an assessment of whether the Group’s overall estimate, considering the Group’s

accounting policies, and the complex nature of the agreements entered into, is acceptable. We

also considered whether a net unadjusted overstatement identified through our procedures

directly related to the key audit matter was material.

Our results

We found the trade spend accruals recognised to be acceptable (FY23 result: acceptable).

Further information in the Annual Report and accounts: See the Audit Committee Report on page

90 for details on how the Audit Committee considered revenue recognition in relation to trade

spend arrangements and associated accruals as an area of significant attention, page 161 for the

accounting policy on revenue recognition in relation to trade spend arrangements and associated

accruals, and Note 1 for the financial disclosures.

4.3 Contingent liabilities arising from the US litigation concerning Necrotizing Enterocolitis

(NEC) (Group)

Financial statements disclosure in Note 20

Our assessment of risk vs FY23

We have not identified any significant changes to the level of risk relating to contingent

liabilities arising from the US litigation concerning Necrotizing Enterocolitis compared

toFY23.



Our results

FY24: acceptable

FY23: acceptable

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4 Key Audit Matters continued

4.3 Contingent liabilities arising from the US litigation concerning Necrotizing Enterocolitis

(NEC) (Group) continued

Description of the Key Audit Matter

The risk: dispute outcome

The Group is named in a number of litigations relating to NEC in the United States.

In FY24, there was one court ruling against the Group and another in their favour. Due to the

uncertainty of the remaining cases, significant judgement - that could be subject to potential

management bias - is required to determine whether potential economic outflows are both

probable and can be reliably estimated.

The amounts involved in these litigations are potentially significant, and the application of

accounting standards to determine the amount, if any, to be provided for, is inherently subjective.

Given the uncertainty relating to the likelihood, amount and timing of any possible economic

outflow, there is a risk over the classification of any liability as a provision or a contingent liability

and the transparency of disclosures therein.

Our response to the risk

Our procedures to address the risk included:

Inquiry of legal counsel: We inquired as to the progress of the litigation and the likely prospects of

successfully defending the cases based on available evidence, including scientific evidence, and

therefore the ability to reliably estimate any economic outflow. We requested and received formal

correspondence directly from the Group’s external counsel that evaluated the current status of

legal proceedings.

We corroborated the consistency of the judgement made by the Directors to inquiries with both

internal and external legal counsel.

Assessing transparency: We assessed the adequacy of the Group’s disclosures of contingent

liabilities related to the NEC litigations in Note 20, particularly the uncertainties relating to the

amount and timing of any resulting outflow.

We performed the test above rather than seeking to rely on any of the Group’s controls because

the nature of the balance is such that we would expect to obtain audit evidence primarily through

the detailed procedures described.

Communications with the Reckitt Benckiser Group plc’s Audit Committee

Our discussions with and reporting to the Audit Committee included:

• Our approach to the assessment over the ongoing litigation relating to NEC in the United States;

• Our conclusions on the appropriateness of the Group’s methodology and accounting policies; and

• The adequacy of the disclosures, particularly as it relates to the uncertainties in relation to the

amount and timing of any resulting outflow.

Areas of particular auditor judgement

We identified an area of particular auditor judgement to be consideration of whether the

contingent liability disclosure is sufficiently transparent in respect of the uncertainties that exist

in relation to the likelihood, amount and timing of any resulting outflows.

Our results

We found the Group’s assessment that the potential outflows from the NEC litigations are

treated as a contingent liability and the transparency of the related disclosure to be acceptable

(FY23 result: acceptable)

Further information in the Annual Report and accounts: See the Audit Committee Report on page

90 for details on how the Audit Committee considered contingent liabilities arising from the NEC

litigation in the United States as an area of significant attention, page 187 for the accounting policy

on contingent liabilities arising from NEC litigation in the United States, and Note 1 for the financial

disclosures.

4.4 Provisions for uncertain tax positions (Group)

Financial Statement Elements

FY24 FY23

Uncertain tax positions £595m £619m

Our assessment of risk vs FY23

We have not identified any significant changes to our assessment of the level of risk

relating to provisions for uncertain tax positions compared to FY23.



Our results

FY24: acceptable

FY23: acceptable

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4 Key Audit Matters continued

4.4 Provisions for uncertain tax positions (Group) continued

Description of the Key Audit Matter

The risk: subjective estimate

Due to the Group operating across a number of different tax jurisdictions, and the complexities of

transfer pricing and other international tax legislation, it is subject to periodic challenge by local tax

authorities on a range of tax matters arising in the normal course of business.

These challenges by the local tax authorities include but are not limited to:

• Transfer pricing arrangements relating to the Group’s operating model;

• Transfer pricing arrangements relating to the ownership of intellectual property rights that are

used across the group;

• Deductibility of certain expenditure; and

• Permanent establishment risk.

Provisions for uncertain tax positions require judgements and estimates to be made in relation to

tax issues and exposures where the Group may be challenged by local tax authorities on its

interpretation of tax legislation. Auditor judgement is required to assess whether the Directors’

overall estimate falls within an acceptable range. This takes into account the method and

assumptions underpinning exposures calculated such as: the clarity of relevant legislation and

related guidance; advice from in-house specialists; opinions of professional firms; past experience;

and precedents set by a particular tax authority.

The effect of these matters is that, as part of our risk assessment, we determined that the estimates

of uncertain tax positions have a high degree of estimation uncertainty, with a potential range of

reasonable outcomes greater than our materiality for the Group`s financial statements as a whole.

Our response to the risk

Our procedures to address the risk included:

Our tax expertise: We used our own international and local tax specialists to assist us to:

• Inspect and assess the Group’s centrally prepared transfer pricing policies to determine whether

they reflect the risks, activities and substance of each of the entities within the supply chain; and

• Assess the Group’s tax positions, its correspondence with the relevant tax authorities, and to

analyse and challenge the assumptions used to determine provisions for tax uncertainties based

on our knowledge and experiences of the application of tax legislation.

Historical comparisons: We assessed the historical accuracy of the provisions, with reference

toany recent tax authority audits and related results, and we considered the impact on the

remaining provision.

Assessing transparency: We assessed the adequacy of the Group’s disclosures in notes 1 and 22

inrespect of uncertain tax positions.

We performed the tests above rather than seeking to rely on any of the Group’s controls because

the nature of the balance is such that we would expect to obtain audit evidence primarily through

the detailed procedures described.

Communications with the Reckitt Benckiser Group plc’s Audit Committee

Our discussions with and reporting to the Audit Committee included:

• Our approach to the audit of the provisions for uncertain tax positions, including details of our

planned substantive procedures and the extent of our control reliance;

• For the provisions for uncertain tax positions, whether and where the Group’s estimate lay

within our reasonable range; and

• The adequacy of the disclosures, particularly as it relates to the sensitivity of the uncertain

tax position to possible changes in key assumptions.

Areas of particular auditor judgement

We identified an area of particular auditor judgement to be the clarity of the associated

disclosure in relation to the estimation uncertainty associated with uncertain tax positions.

Our results

We found the level of the uncertain tax provisioning to be acceptable (FY23 result: acceptable).

Further information in the Annual Report and accounts: See the Audit Committee Report on page

90 for details on how the Audit Committee considered provisions for uncertain tax positions as an

area of significant attention, page 166 for the accounting policy on uncertain tax positions and

Note 22 for the financial disclosures.

4.5 Contingent liabilities arising from the amendment to the South Korean Humidifier

Sanitiser (HS) Law (Group)

Financial statements disclosure in Note 20

Our assessment of risk vs FY23

We have not identified any significant changes to the level of risk relating to contingent

liabilities arising from the South Korean Humidifier Sanitiser (HS) Law compared to FY23.



Our results

FY24: acceptable

FY23: acceptable

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4 Key Audit Matters continued

4.5 Contingent liabilities arising from the amendment to the South Korean Humidifier

Sanitiser (HS) Law (Group) continued

Description of the Key Audit Matter

The risk: dispute outcome

The Group is involved in an ongoing litigation relating to the HS issue in South Korea.

The South Korean HS law amendment enacted on 25 September 2020 significantly altered the

legal framework under which HS claims were previously made and settled. As a result of the law

amendment, additional judgement is needed to assess whether there could be further levy

payments, which would require a provision.

The amounts involved are potentially significant, and the application of accounting standards to

determine the amount, if any, to be provided for, is inherently subjective. Given the uncertainty

relating to the likelihood, amount and timing of any possible economic outflow, there is a risk over

the classification of any liability as a provision or a contingent liability and the transparency of

disclosures therein.

Our response to the risk

Our procedures to address the risk included:

Inquiry of legal counsel: We inquired of the Group’s internal and external counsel to obtain an

understanding of developments, the progress of litigation and the likelihood of reaching a broader

resolution. We requested and received formal correspondence directly from the Group’s external

counsel that evaluated the current status of legal proceedings.

We corroborated the consistency of the judgement made by the Directors to inquiries with both

internal and external legal counsel.

Assessing transparency: We assessed the adequacy of the Group’s disclosures of contingent

liabilities related to the HS matter in Note 20, particularly the uncertainties relating to the amount

and timing of any resulting outflow.

We performed the test above rather than seeking to rely on any of the Group’s controls because

the nature of the balance is such that we would expect to obtain audit evidence primarily through

the detailed procedures described.

Communications with the Reckitt Benckiser Group plc’s Audit Committee

Our discussions with and reporting to the Audit Committee included:

• Our approach to the assessment over the ongoing litigation relating to the HS issue in South Korea;

• Our conclusions on the appropriateness of the Group’s methodology and accounting policies; and

• The adequacy of the disclosures, particularly as it relates to the uncertainties in relation to the

amount and timing of any resulting outflow.

Areas of particular auditor judgement

We identified an area of particular auditor judgement to be consideration of whether the

contingent liability disclosure is sufficiently transparent in respect of the uncertainties that exist

in relation to the amount and timing of any resulting outflows.

Our results

We found the Group’s assessment that the impact of the HS law amendment as contingent

liabilities and transparency of disclosure to be acceptable (FY23 result: acceptable).

Further information in the Annual Report and accounts: See the Audit Committee Report on page

90 for details on how the Audit Committee considered contingent liabilities arising from the

amendment to the South Korean HS law as an area of significant attention, page 187 for the

accounting policy on contingent liabilities arising from the amendment to the South Korean HS law,

and Note 20 for the financial disclosures.

4.6 Recoverability of the parent company’s investment in the subsidiary, Reckitt Benckiser

Limited (Parent Company)

Financial statements disclosure in Note 2 to the Parent Company Financial Statements

FY24 FY23

Parent company investment £15,248m £15,174m

Our assessment of risk vs FY23

We have not identified any significant changes to our assessment of the level of risk

relating to recoverability of the Parent Company’s investment compared to FY23



Our results

FY24: acceptable

FY23: acceptable

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4 Key Audit Matters continued

4.6 Recoverability of the parent company’s investment in the subsidiary, Reckitt Benckiser

Limited (Parent Company) continued

Description of the Key Audit Matter

The risk: low risk, high value

The carrying amount of the Parent Company’s investment in its subsidiary, Reckitt Benckiser

Limited, represents 97.9% (FY23: 98.7%) of the Parent Company’s total assets. Its recoverability

isnot at a high risk of significant misstatement or subject to significant judgement. However, due

to its materiality in the context of the Parent Company’s financial statements, this is considered

tobe the area that had the greatest effect on our overall Parent Company audit.

Our response to the risk

Our procedures to address the risk included:

Comparing valuations: We compared the carrying amount of the investment to the market

capitalisation of the Group as Reckitt Benckiser Limited, either directly or indirectly, owns all other

subsidiaries of the Group.

We performed the test above rather than seeking to rely on any of the Group’s controls because

the nature of the balance is such that we would expect to obtain audit evidence primarily through

the detailed procedure described.

Communications with the Reckitt Benckiser Group plc’s Audit Committee

Our discussions with and reporting to the Audit Committee included:

• Our approach to the assessment of the carrying amount of the Parent Company’s investment

in the subsidiary, including details of our planned substantive procedures and the extent of

our control reliance.

• For the carrying amount, our assessment of whether the conclusion that there is no

impairment of the Parent Company’s investment in the subsidiary is acceptable.

Areas of particular auditor judgement

We identified no areas of particular auditor judgement in relation to this key audit matter.

Our results

We found the Parent Company’s conclusion that there is no impairment of its investment in the

subsidiary to be acceptable (FY23 result: acceptable).

Further information in the Annual Report and accounts: See the Audit Committee Report on page

90 for details on how the Audit Committee considered recoverability of the Parent Company’s

investment in the subsidiary, Reckitt Benckiser Limited as an area of significant attention, page 164

for the accounting policy on recoverability of the Parent Company’s investment in the subsidiary,

Reckitt Benckiser Limited, and Note 2 for the financial disclosures.

5 Our ability to detect irregularities, and our response

To identify risks of material misstatement due to fraud (“fraud risks”) we assessed events or conditions

that could indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud.

Our risk assessment procedures included:

• Consultation with our own forensic professionals to assist us in identifying fraud risks based on their

experience of comparable businesses, similar sectors, as well as of the geographies in which the

Group operates. Our forensic professionals participated in the initial fraud risk assessment discussions

and were consulted throughout the audit when further guidance was deemed necessary;

• Enquiry of the Directors, operational managers, the General Counsel, the Chief Ethics and

Compliance Officer and members of the internal audit function to assess whether they have

knowledge of any actual, suspected or alleged fraud;

• Reading minutes of meetings of the Board, Audit Committee, Executive Committee, Corporate

Responsibility, Sustainability, Ethics and Compliance Committees, and Annual General meeting; and

• Inspection of the Group’s policies and procedures to prevent, detect and respond to the risks of fraud,

internal audit reports issued during the year and inspection of reports to the Group’s whistleblowing

hotline and the responses to those reports, including those concerning investigations.

We communicated identified fraud risks throughout the audit team and remained alert to any

indications of fraud throughout the audit. This included communication from the group auditor to

component auditors of relevant fraud risks identified at the group level and requesting component

auditors performing procedures at component level to report to the group auditor any identified

fraud risk factors or identified or suspected instances of fraud that could give rise to a material

misstatement at the Group level.

As required by auditing standards, and taking into account possible pressures to meet

performance targets, we perform procedures to address the risk of management override of

controls and the risk of fraudulent revenue recognition. We also performed procedures to address

management bias. In particular:

• The risk that group and component management could make inappropriate accounting entries;

• For trade spend arrangements and other associated accruals that may be manipulated to alter

the timing of recognition of revenue and profit;

• The risk of bias when making accounting estimates and judgements, including the recoverable

amount of the IFCN CGU reflecting possible pressures to realise value from significant

transactions and litigations (contingent liability disclosure).

Further detail on our procedures is set out in the Key Audit Matter disclosures, section 4 of this report.

For all components within scope, we identified journal entries to test based on risk criteria and

comparing the identified entries to supporting documentation. These included unusual journal

entries associated with trade spend accruals.

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5 Our ability to detect irregularities, and our response continued

Laws and regulations - Identifying and responding to risks of material misstatement

relating to compliance with laws and regulations

Laws and regulations risk assessment

We identified areas of laws and regulations that could reasonably be expected to have a material

effect on the financial statements from our general commercial and sector experience, through

discussion with the Directors and other management (as required by auditing standards) and

inspected regulatory and legal correspondence received by the Group. We held enquiries with the

Group’s external legal counsel where considered necessary, and we also inspected the policies

and procedures regarding compliance with laws and regulations.

As the Group is regulated, our assessment of risks involved gaining an understanding of the control

environment including the entity’s procedures for complying with regulatory requirements.

Risk communications

We communicated identified laws and regulations throughout our team and remained alert to any

indications of non-compliance throughout the audit. This included communication from the group

auditor to all component auditors of relevant laws and regulations identified at the group level, and

a request for component auditors to report to the Group auditor any instances of non-compliance

with laws and regulations that could give rise to a material misstatement at the group level.

Direct laws context and link to audit

The potential effect of these laws and regulations on the financial statements varies considerably.

Firstly, Group is subject to laws and regulations that directly impact the financial statements including

financial reporting legislation (including related companies legislation), distributable profits

legislation, and taxation legislation (direct and indirect) and we assessed the extent of compliance

with these laws and regulations as part of our procedures on the related financial statements items.

Most significant indirect law/ regulation areas

Secondly, the Group is subject to many other laws and regulations where the consequences of

non-compliance could have a material effect on amounts or disclosures in the financial statements,

for instance through the imposition of fines or litigation or the loss of the Group’s permission to

operate in countries where the non-adherence to laws could prevent trading in such countries.

We identified the following areas as those most likely to have such an effect:

• Employee health and safety, reflecting the nature of the Group’s production and distribution process;

• Anti-bribery and corruption, reflecting that the Group operates in a number of countries where

there is an opportunity to engage in bribery given more limited regulation;

• Interaction with healthcare professionals, reflecting the nature of the Group’s products in the

Health and Nutrition Global Business Units;

• Global competition laws, reflecting the nature of the Group’s business and certain market

sharepositions;

• Consumer product law such as product safety, quality standards and product claims, reflecting

the nature of the Group’s diverse product base;

• Data privacy laws, reflecting the Group’s growing amounts of personal data held;

• Intellectual property legislation, reflecting the potential of the Group to infringe trademarks,

• Environmental regulation, reflecting the nature of the Group’s production and distribution process.

Auditing standards limit the required audit procedures to identify non-compliance with these laws

and regulations to enquiry of the Directors and other management and inspection of regulatory

and legal correspondence, if any. Therefore, if a breach of operational regulations is not disclosed

to us or evident from relevant correspondence, an audit will not detect that breach.

Link to KAMs

Further detail in respect of the effect of ongoing litigations relating to NEC in the United States

and the HS Law Amendment in South Korea is set out in the Key Audit Matter disclosures in

section4 of this report.

Actual or suspected breaches discussed with audit committee

We discussed with the Audit Committee other matters related to actual or suspected breaches of

laws or regulations, for which disclosure is not necessary, and considered any implications for our audit.

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5 Our ability to detect irregularities, and our response continued

Context

Context of the ability of the audit to detect fraud or breaches of law or regulation

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have

detected some material misstatements in the financial statements, even though we have properly

planned and performed our audit in accordance with auditing standards. For example, the further

removed non-compliance with laws and regulations is from the events and transactions reflected

in the financial statements, the less likely the inherently limited procedures required by auditing

standards would identify it. In addition, as with any audit, there remained a higher risk of non-

detection of fraud, as fraud may involve collusion, forgery, intentional omissions,

misrepresentations, or the override of internal controls. Our audit procedures are designed to

detect material misstatement. We are not responsible for preventing non-compliance or fraud and

cannot be expected to detect non-compliance with all laws and regulations.

6 Our determination of materiality

The scope of our audit was influenced by our application of materiality. We set quantitative

thresholds and overlay qualitative considerations to help us determine the scope of our audit and

the nature, timing and extent of our procedures, and in evaluating the effect of misstatements,

both individually and in the aggregate, on the financial statements as a whole.

£140m

(FY23: £140m)

Materiality for the GROUP financial statements as a whole

What we mean

A quantitative reference for the purpose of planning and performing our audit.

Basis for determining materiality and judgements applied

Materiality for the Group Financial Statements as a whole was set at £140m (2023: £140m). This was

determined with reference to a benchmark of group normalised profit before tax from continuing

operations (‘PBTCO’).

Consistent with FY23, we determined that Group normalised PBTCO remains the main benchmark

for the Group. We normalised by adding back adjustments that do not represent the normal,

continuing operations of the Group. The items we adjusted for were the impairment of goodwill,

the impact of one-off costs relating to the restructuring programme, and other adjusting items as

disclosed on page 226 in the table reconciling the Group’s IFRS measures to its adjusted measures

for the year ended 31 December 2024, totalling £1,019 million net (FY23:£695 million). As such, we

based our Group materiality on Group normalised PBTCO of £3,123m (FY23: £3,096m).

Our group materiality of £140m was determined by applying a percentage to group normalised

PBTCO. When using a benchmark of normalised PBTCO to determine overall materiality, KPMG’s

approach for listed entities considers a guideline range of 3% - 5% of the measure. In setting group

materiality, we applied a percentage of 4.5% (FY23: 4.5%) to the benchmark.

Materiality for the Parent Company Financial Statements as a whole was set at £70m (FY23: £70m),

determined with reference to a benchmark of parent company total assets of which it represents

0.45% (FY23: 0.46%).

£91m

(FY23: £105m)

Performance materiality

What we mean

Our procedures on individual account balances and disclosures were performed to a lower

threshold, performance materiality, so as to reduce to an acceptable level the risk that individually

immaterial misstatements in individual account balances add up to a material amount across the

financial statements as a whole.

Basis for determining performance materiality and judgements applied

We have considered performance materiality at a level of 65% (FY23: 75%) of materiality for Reckitt

Benckiser Group’s financial statements as a whole to be appropriate. We applied this percentage

in our determination of performance materiality based on our understanding of the control

environment.

The Parent Company performance materiality was set at £52.5m (FY23: £52m), which equates to

75% (FY23: 75%) of materiality for the Parent Company financial statements as a whole.

We applied this percentage in our determination of performance materiality because we did not

identify any factors indicating an elevated level of risk.

£6m

(FY23: £6m)

Audit misstatement posting threshold

What we mean

This is the amount below which identified misstatements are considered to be clearly trivial from a

quantitative point of view. We may become aware of misstatements below this threshold which

could alter the nature, timing and scope of our audit procedures, for example if we identify smaller

misstatements which are indicators of fraud.

This is also the amount above which all misstatements identified are communicated to the

Company’s Audit Committee.

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6 Our determination of materiality continued

Basis for determining the audit misstatement posting threshold and judgements applied

We set our audit misstatement posting threshold at 4.3% (FY23: 4.3%) of our materiality for the

Group financial statements. We also report to the Audit Committee any other identified

misstatements that warrant reporting on qualitative grounds.

The overall materiality for the Group Financial Statements of £140m (FY23: £140m) compares as

follows to the main financial statement caption amounts:

Total Group Revenue Group profit before tax Total Group Assets

FY24 FY23 FY24 FY23 FY24 FY23

Financial statement

Caption £14,169m £14,607m £2,104m £2,401m £25,307m £27,136m

Group Materiality as

percentage of caption 1.0% 1.0% 6.7% 6.2% 0.6% 0.5%

7 The scope of our audit

Group scope

What we mean

How the group auditor determined the procedures to be performed across the Group.

This year, we applied the revised group auditing standard in our audit of the consolidated financial

statements. The revised standard changes how an auditor approaches the identification of

components, and how the audit procedures are planned and executed across components.

In particular, the definition of a component has changed, shifting the focus from how the entity

prepares financial information to how we, as the group auditor, plan to perform audit procedures

to address group risks of material misstatement (“RMMs”). Similarly, the group auditor has an

increased role in designing the audit procedures as well as making decisions on where these

procedures are performed (centrally and/or at component level), and how these procedures are

executed and supervised. As a result, we assess scoping and coverage in a different way and

comparisons to prior period coverage figures are not meaningful. In this report we provide an

indication of scope coverage on the new basis.

We performed risk assessment procedures to determine which of the Group’s components are

likely to include risks of material misstatement to the Group Financial Statements and which

procedures to perform at these components to address those risks.

In total, we identified 363 components based on our evaluation of the Group’s operational

structure, the Group’s legal structure, the existence of common risk profiles across entities, the

presence of key audit matters and other audit specific factors, and our ability to perform audit

procedures centrally.

We identified quantitatively significant components which contained the largest percentages of

either total revenue or total assets of the Group, for which we performed audit procedures.

Additionally, having considered qualitative and quantitative factors, we selected additional

components with accounts and disclosures contributing to the specific RMMs of the Group

Financial Statements.

The below summarises where we performed audit procedures:

Component type

Number of components

where we performed audit

procedures

Range of

materiality applied

Quantitatively significant components 1 £52m

Other components where we performed

further audit procedures 51 £9m - £75m

Total

We involved component auditors in performing the audit work on 49 components. We performed

audit procedures on the items excluded from the normalised group profit before tax used as the

benchmark for our materiality. We set the component materialities having regard to the mix of size

and risk profile of the components across the Group. We also performed the audit of the Parent

Company.

Our audit procedures covered 81% of Group net revenue. We performed audit procedures in

relation to components that accounted for 76% of group profit before tax and 84% of group total

assets.

For the remaining components for which we performed no audit procedures, no component

represented more than 1.3% of group total revenue, group profit before tax or group total assets.

We performed analysis at an aggregated group level to re-examine our assessment that there is

not a reasonable possibility of a material misstatement in these components.

The group auditor has also performed audit procedures on the following areas on behalf of the

component auditors:

• Testing of IT Systems;

• Exceptional items such as impairment (note that component auditors perform work over local

redundancies); and

• Testing of revenue recorded through a common service provider.

IT systems and parts of revenue are managed centrally, and items excluded from normalised group

PBTCO are adjusted at group level. Therefore, these items were audited by the group auditor. The

group auditor communicated the results of these procedures to the component auditors where

relevant.

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7 The scope of our audit continued

Group scope continued

Impact of controls on our group audit

During the audit we identified three global Enterprise Resource Planning (‘ERP’) finance IT systems

that were relevant to our audit which are used by all the components in the Group and are all

managed centrally from the UK. We used our IT auditors to assist us in assessing the design and

operating effectiveness of the general IT controls of two of these global IT systems covering the

majority of components in scope (by number). For these systems, having performed additional

procedures to respond to deficiencies identified, we were able to adopt a control reliance approach.

We also tested the design and operating effectiveness of IT general controls of related IT systems,

infrastructure layers and utility tools, including an IT system which covers manual journals, all of which

we were also able to rely on. However, given the decentralised nature of the Group’s overall control

environment and the limited number of automated controls in key transactional areas, this had a

limited impact on our audit approach.

We did not seek to rely on general IT controls on the other identified IT system owing to our

knowledge of the control environment and the limited number of components which use this

system.

The Group has a decentralised control environment and is on a controls transformation journey, (as

noted on pages 91-92 of the Audit Committee report) which includes the refinement of the

Group’s control framework and moving controls to shared service centres. As a result of this and

considering the most efficient and effective approach for gaining the appropriate audit evidence,

we did not seek to rely on manual transactional controls. We took a predominantly substantive

approach in all areas of the audit and accordingly increased the extent of our substantive

procedures.

Group auditor oversight

What we mean

The extent of the Group auditor’s involvement in work performed by component auditors.

As part of establishing the overall group audit strategy and plan, we conducted the risk

assessment and planning discussion meeting with component auditors to discuss group audit risks

relevant to the components, including the key audit matter in respect of revenue recognition in

relation to trade spend arrangements and associated accruals.

We physically visited component auditors in 22 countries in November and December 2024 to

attend management balance sheet reviews ahead of the year end (2023: 21). We also attended

three meetings virtually.

We had regular two-way contact with our component auditors throughout the year, including

issuing instructions to them on the scope of their work, risk assessment challenge and clearance

meetings at the planning, interim and final phases of the audit.

We also inspected the work performed by the component auditors for the purpose of the group

audit and evaluated the appropriateness of conclusions drawn from the audit evidence obtained

and consistencies between communicated findings and work performed, with a particular focus

on revenue, trade spend accruals, cash and journals.

8 Other information in the annual report

The Directors are responsible for the other information presented in the Annual Report together

with the Financial Statements. Our opinion on the Financial Statements does not cover the other

information and, accordingly, we do not express an audit opinion or, except as explicitly stated

below, any form of assurance conclusion thereon.

All other information

Our responsibility

Our responsibility is to read the other information and, in doing so, consider whether, based on our

financial statements audit work, the information therein is materially misstated or inconsistent with

the Financial Statements or our audit knowledge.

Our reporting

Based solely on that work we have not identified material misstatements or inconsistencies in the

other information.

Strategic report and directors’ report

Our responsibility and reporting

Based solely on our work on the other information described above we report to you as follows:

• We have not identified material misstatements in the Strategic Report and the Directors’ Report;

• In our opinion the information given in those reports for the financial year is consistent with the

financial statements; and

• In our opinion those reports have been prepared in accordance with the Companies Act 2006.

Directors’ remuneration report

Our responsibility

We are required to form an opinion as to whether the part of the Directors’ Remuneration Report

to be audited has been properly prepared in accordance with the Companies Act 2006.

Our reporting

In our opinion the part of the Directors’ Remuneration Report to be audited has been properly

prepared in accordance with the Companies Act 2006.

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8 Other information in the annual report continued

Corporate governance disclosures

Our responsibility

We are required to perform procedures to identify whether there is a material inconsistency

between the financial statements and our audit knowledge, and:

• The Directors’ statement that they consider that the annual report and financial statements

taken as a whole is fair, balanced and understandable, and provides the information necessary

for shareholders to assess the Group’s position and performance, business model and strategy;

• The section of the annual report describing the work of the Audit Committee, including the

significant issues that the Audit Committee considered in relation to the financial statements,

and how these issues were addressed; and

• The section of the annual report that describes the review of the effectiveness of the Group’s

risk management and internal control systems.

Our reporting

Based on those procedures, we have concluded that each of these disclosures is materially

consistent with the financial statements and our audit knowledge.

We are also required to review the part of the Corporate Governance Statement relating to the

Group’s compliance with the provisions of the UK Corporate Governance Code specified by the UK

Listing Rules for our review.

We have nothing to report in this respect.

Other matters on which we are required to report by exception

Our responsibility

Under the Companies Act 2006, we are required to report to you if, in our opinion:

• Adequate accounting records have not been kept by the Parent Company, or returns adequate

for our audit have not been received from branches not visited by us;

• The Parent Company’s financial statements and the part of the Directors’ Remuneration Report

to be audited are not in agreement with the accounting records and returns;

• Certain disclosures of directors’ remuneration specified by law are not made; or

• We have not received all the information and explanations we require for our audit.

Our reporting

We have nothing to report in these respects.

9 Respective responsibilities

Directors’ responsibilities

As explained more fully in their statement set out on page 138, the Directors are responsible for:

the preparation of the Financial Statements including being satisfied that they give a true and fair

view; such internal control as they determine is necessary to enable the preparation of financial

statements that are free from material misstatement, whether due to fraud or error; assessing the

Group and Parent Company’s ability to continue as a going concern, disclosing, as applicable,

matters related to going concern; and using the going concern basis of accounting unless they

either intend to liquidate the Group or the Parent Company or to cease operations, or have no

realistic alternative but to do so.

Auditor’s responsibilities

Our objectives are to obtain reasonable assurance about whether the Financial Statements as a

whole are free from material misstatement, whether due to fraud or error, and to issue our opinion

in an auditor’s report. Reasonable assurance is a high level of assurance, but does not guarantee

that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement

when it exists. Misstatements can arise from fraud or error and are considered material if,

individually or in aggregate, they could reasonably be expected to influence the economic

decisions of users taken on the basis of the financial statements.

A fuller description of our responsibilities is provided on the FRC’s website at www.frc.org.uk/

auditorsresponsibilities.

The Company is required to include these financial statements in an annual financial report

prepared under Disclosure Guidance and Transparency Rule 4.1.17R and 4.1.18R. This auditor’s report

provides no assurance over whether the annual financial report has been prepared in accordance

with those requirements.

10 The purpose of our audit work and to whom we owe our responsibilities

This report is made solely to the Company’s members, as a body, in accordance with Chapter 3 of

Part 16 of the Companies Act 2006 and the terms of our engagement by the Company. Our audit

work has been undertaken so that we might state to the Company’s members those matters we

are required to state to them in an auditor’s report, and the further matters we are required to

state to them in accordance with the terms agreed with the company, and for no other purpose.

To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other

than the Company and the Company’s members, as a body, for our audit work, for this report, or

for the opinions we have formed.

Andrew Bradshaw (Senior Statutory Auditor)

for and on behalf of KPMG LLP, Statutory Auditor

Chartered Accountants

15 Canada Square

London

5 March 2025

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Group Income Statement

For the year ended 31 December 2024

		2024	2023
	Note	£m	£m
Continuing Operations
Net revenue	2	1 4 ,1 6 9	14,607
Cost of sales		(5 , 5 74)	(5 , 8 47)
Gross profit		8, 595	8 , 76 0
Impairment of intangible assets		(8 39)	(8 1 0)
Other operating expenses		(5 , 331)	(5 , 41 9)
Net operating expenses	3	(6 ,1 70)	(6 , 22 9)
Operating profit	2	2, 425	2, 531
Finance income	6	81	21 0
Finance expense	6	(4 0 2)	(3 4 0)
Profit before income tax		2, 104	2,401
Income tax charge	7	(672)	(7 53)
Net profit from continuing operations		1 , 432	1,648
Net (loss)/profit from discontinued operations		(4)	9
Net profit		1,428	1 , 6 57
Attributable to non-controlling interests		2	14
Attributable to owners of the Parent Company		1,4 26	1 ,6 43
Net profit		1,428	1 , 6 57
Basic earnings/(loss) per ordinary share
From continuing operations (pence)	8	20 4.2	2 2 7. 9
From discontinued operations (pence)	8	(0 . 6)	1.3
From total operations (pence)	8	2 03.6	2 2 9. 2
Diluted earnings/(loss) per ordinary share
From continuing operations (pence)	8	203.8	2 27. 4
From discontinued operations (pence)	8	(0 . 6)	1.3
From total operations (pence)	8	203 .2	2 2 8 .7

		2024	2023
	Note	£m	£m
Net profit		1,428	1 , 6 57
Other comprehensive income/(expense)
Items that have or may be reclassified to the Income
Statement in subsequent years
Net exchange (loss) on foreign currency translation, netoftax	7, 26	(4 4 2)	(6 3 9)
Reclassification of foreign currency translation reserves
on disposal or liquidation of foreign operations, net of tax	7, 26	(11)	(131)
Gains on net investment hedges, net of tax	7, 26	85	42
Fair value gains/(losses) on cash flow hedges, net of tax	7, 26	9	(16)
Reclassification of cash flow hedges to the IncomeStatement	7, 26	29	(2 3)
		(3 3 0)	(76 7)
Items that will not be reclassified to the Income
Statement in subsequent years
Remeasurements of defined benefit pension plans, netoftax	7	(1 3)	(26)
Revaluation of equity instruments – FVOCI, net of tax	7	(28)	(1 0)
		(41)	(36)
Other comprehensive expense, net of tax		(371)	(8 03)
Total comprehensive income		1, 0 57	854
Attributable to non-controlling interests		2	13
Attributable to owners of the Parent Company		1,05 5	8 41
Total comprehensive income		1, 0 57	854
Total comprehensive income attributable to owners
ofthe Parent Company arising from:
Continuing operations		1 ,0 59	832
Discontinued operations		(4)	9
		1,05 5	8 41

Group Statement of Comprehensive Income

For the year ended 31 December 2024

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156

Group Balance Sheet

As at 31 December 2024

		2024	2023
	Note	£m	£m
Assets
Non-current assets
Goodwill and other intangible assets	9	1 7, 5 6 5	18,588
Property, plant and equipment	10	2 , 3 8 5	2, 399
Equity instruments	11	1 0 8	118
Deferred tax assets	12	2 43	287
Retirement benefit surplus	23	269	270
Other non-current receivables	14	13 0	172
Total non-current assets		2 0 ,70 0	21,83 4
Current assets
Inventories	13	1 , 5 17	1 , 6 37
Trade and other receivables	14	2 , 0 9 1	2, 062
Derivative financial instruments	15, 17	61	64
Current tax recoverable		45	80
Cash and cash equivalents	16	880	1 , 3 87
Assets held for sale		4	72
Total current assets		4, 59 8	5 , 3 02
Total assets		25,298	2 7,1 3 6
Liabilities
Current liabilities
Short-term borrowings	17	(1 , 42 3)	(1 , 67 9)
Provisions for liabilities and charges	18	(1 12)	(1 4 2)
Trade and other payables	21	(5, 29 1)	(5 , 506)
Derivative financial instruments	15, 17	(3 8)	(78)
Share repurchase liability	24	(47 7)	(296)
Current tax liabilities	22	(6 0 2)	(6 2 0)
Liabilities held for sale		–	(17)
Total current liabilities		(7,9 4 3)	(8 , 3 3 8)

		2024	2023
	Note	£m	£m
Non-current liabilities
Long-term borrowings	17	(7, 2 3 5)	(6 , 8 5 8)
Deferred tax liabilities	12	(2 , 8 49)	(2, 89 9)
Retirement benefit obligations	23	(2 35)	(2 3 3)
Provisions for liabilities and charges	18	(6 2)	(57)
Derivative financial instruments	15, 17	(173)	(1 87)
Non-current tax liabilities	22	–	(28)
Other non-current liabilities	21	(8 1)	(6 7)
Total non-current liabilities		(10,635)	(1 0,329)
Total liabilities		(1 8 , 578)	(18,66 7)
Net assets		6 ,7 2 0	8, 4 69
Equity
Capital and reserves
Share capital	24	74	74
Share premium		254	254
Merger reserve		(14 , 22 9)	(1 4 , 22 9)
Other reserves	26	(1 , 3 9 0)	(1 , 0 6 0)
Retained earnings		2 1 ,9 9 0	23,409
Attributable to owners of the Parent Company		6,699	8,4 48
Attributable to non-controlling interests		21	21
Total equity		6 ,72 0	8 , 4 69

The accompanying notes form part of these Financial Statements. The Financial Statements

on pages 155 to 196 were approved by the Board of Directors and signed on its behalf on

5March2025 by:

Sir Jeremy Darroch Kris Licht

Director Director

Reckitt Benckiser Group plc Reckitt Benckiser Group plc

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157

Group Statement of Changes in Equity

For the year ended 31 December 2024

							Total
							attributable
							to owners of	Non-
		Share	Share	Merger	Other	Retained	the Parent	controlling	Total
		capital	premium	reserves 1	reserves 2	earnings	Company	interests	equity
	Note	£m	£m	£m	£m	£m	£m	£m	£m
Balance at 1January2023		74	254	(14 , 22 9)	(2 9 4)	23,638	9, 4 4 3	40	9, 4 8 3
Comprehensive income
Net profit		–	–	–	–	1 , 6 43	1 , 6 43	14	1, 657
Other comprehensive income/(expense)		–	–	–	(76 6)	(36)	(8 02)	(1)	(8 0 3)
Total comprehensive income/(expense)		–	–	–	(76 6)	1 , 607	8 41	13	854
Transactions with owners
Treasury shares reissued	24	–	–	–	–	48	48	–	48
Purchase of ordinary shares by employee share ownership trust		–	–	–	–	(2)	(2)	–	(2)
Repurchase of ordinary shares	24	–	–	–	–	(5 03)	(5 03)	–	(5 03)
Share-based payments	25	–	–	–	–	1 02	102	–	102
Tax on share awards	7	–	–	–	–	1	1	–	1
Cash dividends	28	–	–	–	–	(1 , 3 39)	(1 , 339)	(8)	(1 , 3 47)
Forward purchase of shares held by non-controlling interest	30	–	–	–	–	(1 43)	(1 43)	(24)	(167)
Total transactions with owners		–	–	–	–	(1,836)	(1,836)	(3 2)	(1,868)
Balance at 31 December 2023		74	254	(14 , 22 9)	(1,060)	23,409	8,4 48	21	8,4 69
Comprehensive income
Net profit		–	–	–	–	1, 4 26	1, 4 26	2	1 , 428
Other comprehensive income/(expense)		–	–	–	(33 0)	(4 1)	(37 1)	–	(37 1)
Total comprehensive income/(expense)		–	–	–	(33 0)	1, 385	1,05 5	2	1 ,0 57
Transactions with owners
Treasury shares reissued	24	–	–	–	–	3	3	–	3
Purchase of ordinary shares by employee share ownership trust		–	–	–	–	(2)	(2)	–	(2)
Repurchase of ordinary shares	24	–	–	–	–	(1 , 5 09)	(1, 50 9)	–	(1 , 50 9)
Share-based payments	25	–	–	–	–	85	85	–	85
Cash dividends	28	–	–	–	–	(1,381)	(1, 381)	(2)	(1 , 3 8 3)
Total transactions with owners		–	–	–	–	(2,804)	(2,804)	(2)	(2, 806)
Balance at 31 December 2024		74	254	(1 4, 2 29)	(1 , 3 9 0)	2 1 ,9 9 0	6,699	21	6 ,72 0

1 The merger reserve relates to the 1999 combination of Reckitt & Colman plc and Benckiser N.V. and a Group reconstruction in 2007 treated as a merger under Part 27 of the Companies Act 2006

2 Refer to Note26 for an explanation of other reserves

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158

Group Cash Flow Statement

For the year ended 31 December 2024

		2024	2023
	Note	£m	£m
Cash Flows from Operating Activities
Profit before tax		2,104	2,401
Net finance expense	6	321	130
Operating profit from continuing operations		2,42 5	2,53 1
Loss/(profit) on sale of property, plant and equipment and intangible assets		3	(3 4)
Depreciation, amortisation and impairment	9, 10	1,308	1 ,290
Share-based payments	25	85	1 02
Decrease in inventories		61	118
Increase in trade and other receivables		(13 3)	(87)
Decrease in payables and provisions		(74)	(9 1)
Cash generated from continuing operations		3 , 67 5	3 , 829
Interest paid		(35 0)	(2 93)
Interest received		58	30
Tax paid		(70 0)	(92 2)
Net cash flows attributable to discontinued operations	30	(1)	(8)
Net cash generated from operating activities		2,6 82	2, 636
Cash Flows from Investing Activities
Purchase of property, plant and equipment	10	(370)	(3 4 8)
Purchase of intangible assets	9	(9 5)	(1 01)
Proceeds from the sale of property, plant and equipment		14	63
Proceeds from sale of intangible assets and related
businesses, net of cash disposed		57	1
Acquisition of businesses, net of cash acquired	29	–	(8 1)
Other investing activities		(2)	–
Net cash used in investing activities		(3 9 6)	(4 66)

		2024	2023
	Note	£m	£m
Cash Flows from Financing Activities
Treasury shares reissued	24	3	48
Purchase of ordinary shares by employee share ownership
trust		(3)	(2)
Repurchase of ordinary shares	24	(1, 32 8)	(2 07)
Proceeds from borrowings	17	1 ,76 8	1, 638
Repayment of borrowings	17	(1 ,6 87)	(1 ,855)
Dividends paid to owners of the Parent Company	28	(1 ,3 81)	(1 , 339)
Dividends paid to non-controlling interests		(2)	(8)
Acquisition of non-controlling interest		(3 8)	–
Other financing activities 1		(47)	(84)
Net cash used in financing activities		(2,71 5)	(1, 809)
Net (decrease)/increase in cash and cash equivalents		(4 2 9)	361
Cash and cash equivalents at beginning of the year		1, 380	1 ,1 5 6
Exchange losses		(72)	(1 37)
Cash and cash equivalents at end of the year		879	1, 380
Cash and cash equivalents comprise:
Cash and cash equivalents per the Balance Sheet 2	16	880	1 , 3 87
Overdrafts	17	(1)	(7)
		879	1, 380

1 Cash flows from other financing activities are principally composed of cash receipts and payments on derivative contracts

used to hedge foreign exchange gains or losses on non-sterling financing assets and financing liabilities between the Group’s

treasury company and fellow Group subsidiaries

2 Included within cash and cash equivalents is £12 0million of cash (2023:£22 9million) which is restricted for use by the Group

but is available on demand and freely available for use within the relevant subsidiary (see Note16)

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159

1 Accounting Policies

The principal accounting policies adopted in the preparation of these consolidated Financial

Statements are set out below. Unless otherwise stated, these policies have been consistently

applied to all the years presented.

Basis of preparation

These consolidated Financial Statements have been prepared in accordance with the recognition,

measurement and presentation requirements of UK-adopted International Accounting Standards

and in accordance with International Financial Reporting Standards (IFRS Accounting Standards) as

issued by the International Accounting Standards Board (IASB).

These consolidated Financial Statements have been prepared under the historical cost convention,

as modified by the revaluation of certain financial assets and liabilities (including derivative

instruments) at fair value through profit or loss or other comprehensive income. A summary of the

Group’s accounting policies is set out below. Historical cost is generally based on the fair value of

the consideration given in exchange for goods and services.

The preparation of Financial Statements that conform to IFRS requires management to make

estimates and assumptions that affect the reported amounts of assets and liabilities at the

Balance Sheet date and revenue and expenses during the reporting period. Although

these estimates are based on management’s best knowledge at the time, actual amounts may

ultimately differ from those estimates.

New standards, amendments and interpretations

The following accounting standard amendments were adopted by the Group on 1 January 2024.

They have not had a significant impact on the consolidated Financial Statements.

• Classification of Liabilities as Current or Non-current (Amendments to IAS 1)

• Non-current Liabilities with Covenants (Amendments to IAS 1)

• Lease Liability in a Sale and Leaseback (Amendments to IFRS 16)

• Supplier Finance Arrangements (Amendments to IAS 7 and IFRS 7)

The Group has supplier finance arrangements. Adoption of the amendments to IAS 7 and IFRS 7

has resulted in the Group providing disclosures about these arrangements in Note 15 to the

consolidated Financial Statements.

Certain changes to IFRS will be applicable to the Group financial statements in future years, but are

not expected to have a material effect on the reported net revenue, profit or equity in the financial

statements. Changes include the proposed IFRS 18, which is expected to change certain aspects

of the Group’s reporting of the profit and loss account, balance sheet, cash flow statement, and

certain notes to the accounts. The requirements of IFRS 18 are expected to be implemented with

effect from 1 January 2027, with retrospective application.

Going concern

Having assessed the principal risks and other matters discussed in connection with the Viability

Statement, the Directors considered it appropriate to adopt the going concern basis of accounting

in preparing the consolidated Financial Statements. When reaching this conclusion, the Directors

took into account the Group’s overall financial position, exposure to principal risks and future

business forecasts for at least 12 months from the date of approval of the Financial Statements.

At 31 December 2024, the Group had cash and cash equivalents (excluding restricted cash) of £0.8

billion. The Group also had access to committed borrowing facilities of £4.45 billion, of which £124

million (2023: £nil) was drawn at year end and of which £3.5 billion (31 December 2023: £4.5 billion)

expire after more than two years. Further detail is contained within the Viability Statement on

page 57 and within the liquidity disclosures in Note 15.

Basis of consolidation

The consolidated Financial Statements include the results of Reckitt Benckiser Group plc, a

company registered in the UK, and all its subsidiary undertakings made up to the same accounting

date. Subsidiary undertakings are those entities controlled by Reckitt Benckiser Group plc. Control

exists where the Group is exposed to, or has the rights to variable returns from its involvement

with the investee and has the ability to use its power over the investee to affect its returns.

Intercompany transactions, balances and unrealised gains on transactions between Group

companies have been eliminated on consolidation. Unrealised losses have also been eliminated to

the extent that they do not represent an impairment of a transferred asset. The accounting

policies of subsidiaries have been changed where necessary to ensure consistency with

accounting policies adopted by the Group.

Climate Change

In preparing the Financial Statements, management have considered the impact of climate

change, specifically with reference to the disclosures included in the Strategic Report and the

Group’s 2030 Sustainability Ambitions, particularly in relation to impairment testing of intangible

assets. These factors have not had a significant effect on the Group’s critical accounting estimates

and judgements made with respect to the current year.

Foreign currency translation

Items included in the Financial Statements of each of the Group’s entities are measured using the

currency of the primary economic environment in which the entity operates (the functional

currency). The consolidated Financial Statements are presented in sterling, which is the Group’s

presentational currency.

Foreign currency transactions are translated into the functional currency using exchange rates

prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the

settlement of foreign currency transactions and from the translation of foreign currency

denominated monetary assets and liabilities are recognised in the Income Statement, except

where hedge accounting is applied.

Notes to the Financial Statements

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160

1 Accounting Policies continued

Foreign currency translation continued

The Financial Statements of subsidiary undertakings with a non-sterling functional currency are

translated into sterling on the following basis:

• Assets and liabilities: at the rate of exchange ruling at the year end date

• Income Statement items: at the average rate of exchange for the year

Exchange differences arising from the translation of the net investment in subsidiary undertakings

with a non-sterling functional currency, and of borrowings and other currency instruments

designated as hedges of such investments, are recorded in equity on consolidation.

Business combinations

The acquisition method is used to account for the acquisition of subsidiaries and businesses.

Identifiable net assets acquired (including intangible assets) in a business combination are

measured initially at their fair values at the acquisition date.

Where the measurement of the fair value of identifiable net assets acquired is incomplete at the end

of the reporting period in which the combination occurs, the Group will report provisional fair values.

Final fair values are determined within a year of the acquisition date and retrospectively applied.

The excess of the consideration transferred and the amount of any non-controlling interest over

the fair value of the identifiable assets (including intangibles), liabilities and contingent liabilities

acquired is recorded as goodwill.

The consideration transferred is measured at the fair value of the assets given, equity instruments

issued (if any), and liabilities assumed or incurred at the date of acquisition.

Acquisition-related costs are expensed as incurred.

The results of the subsidiaries and businesses acquired are included in the consolidated Financial

Statements from the acquisition date.

Assets held for sale and disposal groups

Non-current assets, or disposal groups comprising assets and liabilities, are classified as held for

sale and presented separately in the Balance Sheet when the following criteria are met: the Group

is committed to selling the asset or disposal group; it is available for immediate sale in its current

condition; an active plan of sale has commenced and been approved in line with Group policy; and

in the judgement of Group management it is highly probable that the sale will be completed within

12 months.

Immediately before the initial classification of the assets and disposal groups as held for sale, the

carrying amounts of the assets (or all the assets and liabilities in the disposal groups) are measured

in accordance with the applicable accounting standards. Goodwill (including cost and

accumulated impairment) is allocated to the disposal group using a relative value approach, unless

a different method better reflects goodwill associated with the disposal.

Assets held for sale and disposal groups are subsequently measured at the lower of their carrying

amount and fair value less costs of disposal. Impairment losses on initial classification as held for

sale, and subsequent gains and losses on remeasurement to fair value less costs of disposal, are

recognised in the Income Statement. Once classified as held for sale, intangible assets and

property, plant and equipment are no longer amortised or depreciated.

Disposals of intangible assets and subsidiaries

The financial performance of subsidiaries and businesses is included in the consolidated Financial

Statements up to the point at which the Group ceases to have control over that subsidiary.

Intangible assets not disposed of through the sale of shares in subsidiaries are treated as disposed

at the point that the Group ceases to control the asset.

The difference between the fair value of the consideration (net of costs) and the carrying value of

the assets and liabilities disposed is recognised as a gain or loss in the Income Statement. Any

amounts previously recognised in other comprehensive income in respect of that subsidiary or

asset, including exchange gains or losses on foreign currency translation, are accounted for as if

the Group had directly disposed of related assets and liabilities. This results in a reclassification of

amounts previously recognised in other comprehensive income to the Income Statement and

included within the loss on disposal of intangible assets and related businesses.

Where the assets and liabilities disposed represent a partial disposal of a cash generating unit to

which goodwill has been allocated, goodwill is allocated using a relative value approach to the

disposal group, unless a different method better reflects goodwill associated with the disposal.

Where the tax base will not be transferred with the disposed assets, the deferred tax balances

relating to the intangible assets are not considered part of the assets disposed and are instead

credited or charged to the Income Statement within income tax expense.

Liquidation of subsidiaries

The Group liquidates subsidiaries that are no longer required in order to simplify the Group

structure. As part of this process, the Group ensures any outstanding matters relating to the

subsidiary are resolved before liquidation. Any amounts previously recognised in other

comprehensive income in respect of that subsidiary, including exchange gains and losses on

foreign currency translation, are reclassified to the Income Statement on disposal which is typically

on entering liquidation. The amounts previously recognised in other comprehensive income are

included within finance income in the Income Statement.

Non-controlling interests

On an acquisition-by-acquisition basis, the non-controlling interest is measured at either fair value

or a proportionate share of the acquiree’s net assets.

Purchases of non-controlling interests are accounted for as transactions with the owners and

therefore no goodwill is recognised as a result of such transactions.

Notes to the Financial Statements continued

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161

Notes to the Financial Statements continued

1 Accounting Policies continued

Revenue

Revenue from the sale of products is recognised in the Group Income Statement as and when

performance obligations are satisfied by transferring control of the product or service to the

customer.

Net revenue is defined as the amount invoiced to external customers during the year and

comprises, as required by IFRS 15, gross sales net of trade spend, customer allowances for credit

notes, returns and consumer coupons. The methodology and assumptions used to estimate credit

notes, returns and consumer coupons are monitored and adjusted regularly in light of contractual

and legal obligations, historical trends, past experience and projected market conditions.

Trade spend, which consists primarily of customer pricing allowances, placement/listing fees

and promotional allowances, is governed by sales agreements with the Group’s trade customers

(retailers and distributors). Trade spend also includes reimbursement arrangements under the

Special Supplemental Nutrition Program for Women, Infants and Children (WIC), payable to the

respective US state WIC agencies.

Accruals are recognised under the terms of these agreements to reflect the expected activity

level and the Group’s historical experience. These accruals are reported within trade and other

payables.

Value-added tax and other sales taxes are excluded from net revenue.

Operating segments

Operating segments are reported in a manner consistent with the internal reporting provided to

the Chief Operating Decision Maker (CODM). The CODM, who is responsible for allocating

resources and assessing performance of the operating segments, has been identified as the

Group Executive Committee.

Research and development

Research expenditure is expensed in the year in which it is incurred.

Development expenditure is expensed in the year in which it is incurred, unless it meets the

requirements of IAS 38 to be capitalised and then amortised over the useful life of the developed

product.

Income tax

Income tax on the profit for the year comprises current and deferred tax. Income tax is recognised

in the Income Statement except to the extent that it relates to items recognised in other

comprehensive income or directly in equity, in which case the tax is also recognised in other

comprehensive income or directly in equity, respectively.

Current tax is the expected tax payable on the taxable income for the year, using tax rates

enacted or substantively enacted in each jurisdiction at the Balance Sheet date, and any

adjustment to tax payable in respect of previous years.

Deferred tax is provided in full, using the liability method, on temporary differences arising

between the tax bases of assets and liabilities and their carrying amounts in the consolidated

Financial Statements. Deferred tax is not accounted for if it arises from the initial recognition of an

asset or liability in a transaction (other than a business combination) that affects neither

accounting nor taxable profit or loss at that time. Deferred tax is determined using tax rates (and

laws) that have been enacted or substantively enacted at the Balance Sheet date and are

expected to apply when the deferred tax asset or liability is settled. Deferred tax assets are

recognised to the extent that it is probable that future taxable profit will be available against

which the temporary differences can be utilised.

Deferred tax is provided on temporary differences arising on investments in subsidiaries except

where the investor is able to control the timing of the reversal of the temporary differences and it

is probable that the temporary difference will not reverse in the foreseeable future.

Deferred tax assets and liabilities within the same tax jurisdiction are offset where there is a legally

enforceable right to offset current tax assets against current tax liabilities and where there is an

intention to settle these balances on a net basis.

Goodwill and other intangible assets

(i) Goodwill

Goodwill is allocated to the cash generating unit (CGU), or group of CGUs (GCGU), to which it

relates and is tested annually for impairment. Goodwill is carried at cost less accumulated

impairment losses.

(ii) Brands

Separately acquired brands are shown at cost less accumulated amortisation and impairment.

Brands acquired as part of a business combination, and that are separately identifiable, are

recognised at fair value and amortised over their useful economic life as determined at the

acquisition date (up to 20 years), except when their life is determined as being indefinite.

Applying indefinite lives to certain acquired brands is appropriate due to the stable long-term

nature of the business and the enduring nature of the brands. A core element of the Group’s

strategy is to invest in building its brands through an ongoing programme of product innovation

and continuing marketing investment. Within the Group, a brand typically comprises an assortment

of base products and more innovative products. Both contribute to the enduring nature of the

brand. The base products establish the long-term positioning of the brand while a succession of

innovations attracts ongoing consumer interest and attention. Indefinite life brands are allocated

to the CGUs or GCGUs to which they relate and are tested annually for impairment.

The Directors also review the useful economic life of brands annually, to ensure that these lives are

still appropriate. If a brand is considered to have a finite life, its carrying value is amortised over its

remaining estimated useful economic life.

(iii) Software

Expenditure relating to the acquisition of computer software licences and systems is capitalised

at cost. The assets are amortised on a straight-line basis over a period of seven years for systems

and five years or less for all other software.

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162

1 Accounting Policies continued

Goodwill and other intangible assets continued

(iv) Distribution rights

Payments made in respect of product registration and acquired and reacquired distribution rights

are capitalised where the rights comply with the above requirements for recognition of acquired

brands. If the registration or distribution rights are for a defined time period, the intangible asset is

amortised over that period. If no time period is defined, the intangible asset is treated in the same

way as acquired brands.

(v) Customer contracts

Acquired customer contracts are capitalised at cost. These costs are amortised on a straight-line

basis over the period of the contract.

(vi) Customer relationships

Customer relationships are shown at cost less accumulated amortisation and impairment.

Customer relationships acquired as part of a business combination, and that are separately

identifiable, are recognised at fair value and amortised over their useful economic life as

determined at the acquisition date (up to 10 years).

(vii) Acquired intellectual property

Intellectual property rights acquired as part of a business and that are separately identifiable are

recognised at fair value and amortised over their useful economic life as determined at the

acquisition date (up to 20 years).

Amortisation of intangible assets in (ii) to (vii) is charged to cost of goods sold or net operating

expenses depending on the use of the asset.

Property, plant and equipment

Property, plant and equipment is stated at cost less accumulated depreciation and impairment,

with the exception of freehold land, which is shown at cost less impairment. Cost includes

expenditure that is directly attributable to the acquisition of the asset. Except for freehold land

and assets under construction, the cost of property, plant and equipment is depreciated on a

straight-line basis over the period of the expected useful life of the asset. For this purpose,

expected lives are determined within the following limits:

• freehold buildings: not more than 50 years;

• leasehold land and buildings: the lesser of 50 years or the life of the lease; and

• owned plant and equipment: not more than 15 years (except for environmental assets and spray

dryers which are not more than 30 years).

In general, production plant and equipment and office equipment are depreciated over 10 years or

less and motor vehicles and computer equipment over 5 years or less.

Assets’ residual values and useful lives are reviewed annually, and adjusted if necessary. Property,

plant and equipment is reviewed for impairment if events or changes in circumstances indicate

that the carrying amount may not be appropriate. Freehold land is reviewed for impairment on an

annual basis.

Gains and losses on the disposal of property, plant and equipment are determined by comparing

the asset’s carrying value with any sale proceeds and are included in the Income Statement.

Leases

The Group has various lease arrangements for buildings (such as offices and warehouses), cars,

and IT equipment. Lease terms are negotiated on an individual basis locally and subject to local

rules and regulations. At the inception of a lease contract, the Group assesses whether the

contract conveys the right to control the use of an identified asset for a certain period in exchange

for consideration, in which case it is identified as a lease. The Group recognises a right of use asset

and a corresponding lease liability with respect to all lease arrangements in which it is the lessee,

except for short-term leases (defined as leases with a lease term of 12 months or less) and leases

of low value assets. Low value leases are those with an underlying asset value of USD 5,000 or less.

For these leases, the Group recognises the lease payments as an operating expense on a

straight-line basis over the term of the lease.

Right of use assets

At commencement date, right of use assets are measured at cost, which comprises the following:

• the initial measurement of the lease liability;

• prepayments before commencement date of the lease;

• initial direct costs; and

• costs to restore at the termination of the lease.

Subsequent to initial recognition, right of use assets are depreciated on a straight-line basis over

the duration of the contract. Right of use assets are assessed for impairment where indicators of

impairment are present.

Lease liabilities

At commencement date, lease liabilities are measured at the present value of lease payments not

yet paid including:

• fixed payments excluding lease incentive receivables;

• future contractually agreed fixed increases; and

• payments related to renewals or early termination, when options to renew or for early

termination are reasonably certain to be exercised.

Subsequent to initial recognition lease liabilities are increased by the interest costs on the lease

liabilities and decreased by lease payments made. Lease liabilities are remeasured when required

to account for revised future payments.

Notes to the Financial Statements continued

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163

Notes to the Financial Statements continued

1 Accounting Policies continued

Impairment of assets

Assets that have indefinite lives, including goodwill and brands, are tested annually for impairment

at the level where cash flows are considered to be largely independent. This testing is performed

at either the CGU or GCGU level. All CGUs and GCGUs are tested for impairment if there is an event

or circumstance that indicates that their carrying value may not be recoverable. If the carrying

value exceeds its recoverable amount an impairment loss is recognised in the Income Statement.

The recoverable amount is the higher of the CGU’s or GCGU’s value-in-use and its fair value less

costs of disposal.

Value-in-use is calculated with reference to the future and terminal cash flows expected to be

generated by each CGU or GCGU (or group of assets where cash flows are not identifiable to

specific assets) and discounted to present value. The discount rates used in the impairment

reviews are based on weighted average cost of capital (WACC) specific to each CGU and GCGU,

with the WACC converted to the implied pre-tax rates.

Fair value less costs of disposal is calculated using a discounted cash flow approach prepared on a

market participant basis, with a post-tax discount rate applied to projected risk-adjusted post-tax

cash flows and terminal value.

Inventories

Inventories are stated at the lower of cost and net realisable value. Cost comprises materials,

direct labour and an appropriate portion of overhead expenses (based on normal operating

capacity) required to get the inventory to its present location and condition. Inventory valuation is

determined on a first in, first out (FIFO) basis. Net realisable value represents the estimated net

selling price less applicable selling expenses.

Trade and other receivables

Trade and other receivables are initially recognised at the fair value of consideration plus

transaction costs and subsequently held at amortised cost, less provision for discounts and

doubtful debts. Allowance losses are calculated by reviewing lifetime expected credit losses using

historic and forward-looking data on credit risk.

Trade and other payables

Trade and other payables are initially recognised at fair value less transaction costs and

subsequently carried at amortised cost.

Cash and cash equivalents

Cash and cash equivalents comprise cash balances and other deposits with a maturity of less than

three months when deposited.

For the purpose of the Cash Flow Statement, bank overdrafts that form an integral part of the

Group’s cash management, and are repayable on demand, are included as a component of cash

and cash equivalents. Bank overdrafts are included within short-term borrowings in the Balance

Sheet.

Borrowings

Interest-bearing borrowings are recognised initially at fair value less, where permitted by IFRS 9,

any directly attributable transaction costs. Subsequent to initial recognition, interest-bearing

borrowings are stated at amortised cost with any difference between cost and redemption value

being recognised in the Income Statement over the period of the borrowings on an effective

interest basis.

Cash flows relating to interest are presented within operating cash flows. Proceeds and

repayment of principal amounts are presented as financing cash flows and are presented gross,

except for borrowings with maturities of less than three months (including commercial paper),

which are presented net.

Derivative financial instruments and hedging activity

The Group may use derivatives to manage its exposures to fluctuating interest and foreign

exchange rates. These instruments are initially recognised at fair value on the date the contract is

entered into and are subsequently remeasured at their fair value. The method of recognising the

resulting gain or loss depends on whether the derivative is designated as a hedging instrument

and, if so, the nature of the item being hedged.

At the inception of designated hedge relationships, the Group documents its risk management

objectives and strategy for undertaking various hedging transactions. The Group also documents

its assessment, both at hedge inception and on an ongoing basis, of whether the derivatives that

are used in hedging transactions are highly effective in offsetting changes in cash flows or fair

values of hedged items.

The Group designates certain derivatives as either:

• hedges of a particular risk associated with a recognised asset or liability or a highly probable

forecast transaction (cash flow hedges); or

• hedges of the fair value of recognised assets or liabilities or a firm commitment (fair value

hedges).

Derivatives designated as cash flow hedges

The effective portion of changes in the fair value of derivatives that are designated and qualify as

cash flow hedges is recognised in other comprehensive income and accumulated in the hedging

reserve. Any gain or loss relating to the ineffective portion is recognised immediately in the

Income Statement.

When the hedged forecast transaction subsequently results in the recognition of a non-financial

item such as inventory, the amount accumulated in the hedging reserve and the cost of hedging

reserve is included directly in the initial cost of the non-financial item when it is recognised. For all

other transactions, the amounts accumulated in the hedging reserve are recycled to the Income

Statement in the period (or periods) when the hedged item affects the Income Statement.

If the hedge no longer meets the criteria for hedge accounting or the hedging instrument is sold,

expires, is terminated, or is exercised, then hedge accounting is discontinued prospectively. The

amount that has been accumulated in the hedging reserve remains in equity until it is either

included in the cost of a non-financial item or recycled to the Income Statement.

Strategic report Governance Financial statements Other information Reckitt Annual Report and Accounts 2024

164

1 Accounting Policies continued

Derivatives designated as fair value hedges

Fair value hedges are used to manage the currency and/or interest rate risks to which the fair value

of certain assets and liabilities are exposed. Changes in the fair value are recognised in the Income

Statement, together with any changes in the fair value of the hedged asset or liability that are

attributable to the hedged risk. If such a hedge relationship no longer meets hedge accounting

criteria, fair value movements on the derivative continue to be taken to the Income Statement

while any fair value adjustments made to the underlying hedged item to that date are amortised

through the Income Statement over its remaining life using the effective interest rate method.

Changes in the fair value of any derivative instruments that do not qualify for hedge accounting

are recognised immediately in the Income Statement.

Net investment hedges

Gains and losses on those hedging instruments designated as hedges of the net investments in

foreign operations are recognised in other comprehensive income to the extent that the hedging

relationship is effective. Gains and losses accumulated in the foreign currency translation reserve

are recycled to the Income Statement when the foreign operation is disposed of.

Equity investments

Equity investments are investments that are neither held for trading nor classified as investments

in subsidiaries, associates or joint venture arrangements. Subsequent to their initial recognition,

equity investments are stated at their fair value. Gains and losses arising from subsequent changes

in the fair value are recognised in the Income Statement or in other comprehensive income on a

case-by-case basis. Accumulated gains and losses included in other comprehensive income are

not recycled to the Income Statement. Dividends from equity investments are recognised in the

Income Statement.

Investment in associates

Investments in associates are accounted for using the equity method. An associate is an entity

over which the Group has significant influence, being the power to participate in the investee’s

financial and operating policy decisions without control or joint control.

Interests in associates are stated in the consolidated Balance Sheet at cost, adjusted for the

movement in the Group’s share of their net assets and liabilities. The Group’s share of the profit

or loss after tax of associates is included in the Group’s consolidated profit before taxation.

Unrealised intragroup profits or losses from transactions are offset against the carrying amount

of the investment on a pro-rata basis during consolidation, if material.

When the Group’s share of losses exceeds its interest in an associate, the Group does not

recognise further losses, unless it has incurred obligations or made payments on behalf of the

associate.

The Financial Statements of the companies accounted for using the equity method are prepared

in accordance with uniform accounting and measurement methods throughout the Group.

Employee share schemes

Incentives in the form of shares are provided to employees under equity-settled share option

and restricted share plans, which have various combinations of market-based and non-market

performance conditions, service conditions, and non-vesting conditions.

The fair value determined at the award grant date takes into account the probability of any

relevant market-based performance conditions and non-vesting conditions being satisfied and

is subsequently expensed on a straight-line basis over the vesting period, based on the Group’s

estimate of equity instruments that will eventually vest. This estimate takes into account the

expected outcome for relevant non-market performance conditions and service conditions but

assumes satisfaction of all market-based performance conditions and non-vesting conditions.

At each Balance Sheet date, the Group revises its estimate of the number of equity instruments

expected to vest. The impact of the revision of the original estimates, if any, is recognised in the

Income Statement such that the cumulative expense reflects the revised estimate, with a

corresponding adjustment to equity reserves.

Additional employer costs, including social security taxes, in respect of options and awards are

charged to the Income Statement over the same period with a corresponding liability recognised.

Pension commitments

Group companies operate defined contribution and (funded and unfunded) defined benefit

pension plans.

The cost of providing pensions to employees who are members of defined contribution plans is

charged to the Income Statement as contributions are made. The Group has no further payment

obligations once the contributions have been paid.

The deficit or surplus recognised in the Balance Sheet in respect of defined benefit pension plans

is the present value of the defined benefit obligation at the Balance Sheet date, less the fair value

of the plan assets. The defined benefit obligation is calculated annually by independent actuaries

using the projected unit credit method. The present value of the defined benefit obligation is

determined by discounting the estimated future cash flows by the yield on high-quality corporate

bonds denominated in the currency in which the benefits will be paid, and that have a maturity

approximating to the terms of the pension obligations. The costs of providing these defined

benefit plans are accrued over the period of employment. Actuarial gains and losses are

recognised immediately in other comprehensive income.

Past service costs are recognised immediately in the Income Statement.

The net interest amount is calculated by applying the discounted rate used to measure the defined

benefit obligation at the beginning of the period to the net defined benefit liability/asset.

The net pension plan interest is presented within other finance income/other finance expense.

Notes to the Financial Statements continued

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165

Notes to the Financial Statements continued

1 Accounting Policies continued

Post-retirement benefits other than pensions

Some Group companies provide post-retirement medical care and other benefits to their retirees.

The costs of providing these benefits are accrued over the period of employment and the liability

recognised in the Balance Sheet is calculated using the projected unit credit method and is

discounted to its present value and the fair value of any related asset is deducted.

Provisions

Provisions are recognised when the Group has a present legal or constructive obligation as a result

of past events; it is more likely than not that there will be an outflow of resources to settle that

obligation; and the amount can be reliably estimated. Provisions are valued at the present value of

the Directors’ best estimate of the expenditure required to settle the obligation at the Balance

Sheet date. Where it is possible that an outflow of resources may be required to settle the

obligation or it is not possible to make a reliable estimate of the financial impact, appropriate

disclosure is made but no provision recognised.

Repurchase and reissuance of ordinary shares

When shares recognised as equity are repurchased, the amount of the consideration paid,

including directly attributable costs, is recognised as a charge to equity. Repurchased shares are

classified as Treasury shares and are presented in retained earnings. When Treasury shares are sold

or reissued subsequently, the amount received is recognised as an increase in equity and any

resulting surplus is presented within share premium or deficit presented within retained earnings.

Dividend distribution

Dividends to owners of the Parent Company are recognised as a liability in the period in which the

dividends are approved by the Company’s shareholders. Interim dividends are recorded in the

period in which they are approved and paid.

Dividend payments are recorded at fair value. Where non-cash dividend payments are made, gains

arising as a result of fair value remeasurements are recognised in the Income Statement in the

same period.

Accounting estimates and judgements

In preparing these consolidated Financial Statements, management has made judgements and

estimates that affect the application of the Group’s accounting policies and the reported amounts

of assets, liabilities, income and expenses. Actual amounts and results may differ from these

estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to

accounting estimates are recognised in the period in which the estimate is revised if the revision

affects only that period, or in the period of the revision and future periods if the revision affects

both current and future periods.

Critical judgements in applying the Group’s accounting policies

Over the course of the year, management has made a number of critical judgements in the

application of the Group’s accounting policies. These include the following:

• management has determined that the Essential Home business should not be classified as held

for sale as at 31 December 2024, given the significant level of pre-sale activity remaining to be

completed before the Essential Home business could be considered to be available for

immediate sale in its present condition subject only to terms that are usual and customary for

sales of such disposal groups;

• management has identified matters (including the Korea Humidifier Sanitiser, Necrotizing

Enterocolitis and Phenylephrine issues) that may incur liabilities in the future but does not

recognise these liabilities when it is too early to determine the likely outcome or make a reliable

estimate (Note 18, Note 20);

• the continuing enduring nature of the Group’s brands supports the indefinite life assumption for

certain of these assets (Note 9); and

• assumptions are made as to the recoverability of tax assets especially as to whether there will

be sufficient future taxable profits in the same jurisdictions to fully utilise losses in future years

(Note 12).

Key sources of estimation uncertainty

Each year, management is required to make a number of assumptions regarding the future. The

related year-end accounting estimates will, by definition, seldom equal the final actual results. The

estimates and assumptions that have a significant risk of causing a material adjustment to the

carrying amounts of assets and liabilities within the next financial year are addressed below.

Goodwill and indefinite life intangible assets:

Under IFRS, goodwill and other indefinite life intangible assets must be tested for impairment on at

least an annual basis. As disclosed further in Note 9, this testing generally requires management to

make multiple estimates, for example around individual market pressures and forces, future price

and volume growth, future margins, terminal growth rates and discount rates.

The recoverability of the Group’s goodwill and indefinite life intangible assets in relation to the

Infant Feeding and Child Nutrition (IFCN) cash generating unit and Biofreeze is sensitive to

reasonably possible changes in key assumptions. Further information on key estimates and

assumptions, including details on the sensitivities of the value-in-use estimates to reasonable

changes in key assumptions, is included in Note 9.

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166

1 Accounting Policies continued

Key sources of estimation uncertainty continued

Tax:

The actual tax paid on profits is determined based on tax laws and regulations that differ across

the numerous jurisdictions in which the Group operates. Assumptions are made in applying these

laws to the taxable profits in any given period in order to calculate the tax charge or credit for that

period. Where the eventual tax paid or reclaimed is different to the amounts originally estimated,

the difference is charged or credited to the Income Statement in the period in which it is

determined (Note 7).

The Group operates in an international tax environment and is subject to tax examinations and

uncertainties in a number of jurisdictions. The issues involved can be complex and disputes may

take a number of years to resolve. Each uncertainty is separately assessed and management

applies judgement in the recognition and measurement of the uncertainty based on the relevant

circumstances. The exposure recognised is calculated based on the expected value method or

the most likely outcome method, depending on whether there are a wide range of possible

outcomes or if resolution of the uncertainty is concentrated on one outcome. In particular, the

range of possible outcomes relating to transfer pricing exposures can be wide and, in these

scenarios, the expected value method is employed. The accounting estimates and judgements

considered include:

• status of the unresolved matter;

• clarity of relevant legislation and related guidance;

• pre-clearances issued by taxing authorities;

• advice from in-house specialists and opinions of professional firms;

• resolution process and range of possible outcomes;

• past experience and precedents set by the particular taxing authority;

• decisions and agreements reached in other jurisdictions on comparable issues;

• unutilised tax losses, tax credits and availability of mutual agreement procedures between tax

authorities; and

• statute of limitations.

Management is of the opinion that the carrying values of the liability for uncertain tax positions

made in respect of these matters represent its best estimate once all facts and circumstances

have been taken into account. Nevertheless, the final amounts paid to discharge the liabilities

arising (either through negotiated settlement or litigation) may be different from the position

recognised. The net liabilities recognised in respect of uncertain tax positions as at 31 December

2024 are £595 million (2023: £619 million) (Note 22).

Trade spend:

The Group provides for amounts payable to our trade customers for promotional activity and

government reimbursement arrangements. Where an activity spans the year end, an accrual is

reflected in the consolidated Financial Statements based on our estimation of customer and

consumer uptake during the relevant period and the extent to which temporary funded activity

has occurred. As there is a timing difference between that initial estimation and final settlement

of trade spend with our customers, differences can result on final settlement. As at 31 December

2024, the Group recognised total accruals of £1,074 million (2023: £1,125 million) in respect of

amounts payable to trade customers and government bodies for trade spend. The Group’s trade

spend arrangements vary considerably by market and category, and the Group’s trade spend

accruals are made up of many individually small accruals. Therefore, an aggregated disclosure of

sensitivity analysis on the key inputs to trade spend accrual estimates would not be practicable

nor meaningful. Nevertheless, a 13% (2023: 13%) difference between those initial estimates and

final settlement would cause a material charge or credit to the Income Statement in the next

financial year. During 2024, adjustments to trade spend accruals as at 31 December 2023, due to

changes in accounting estimates, resulted in a credit to net revenue of £77 million (2023: £132

million credit to net revenue).

Legal provisions:

The Group recognises legal provisions when the Group has a present legal or constructive

obligation as a result of past events; it is more likely than not that there will be an outflow of

resources to settle that obligation; and the amount can be reliably estimated. The level of

provisioning in relation to civil and/or criminal investigations is an area where management and

legal judgement are important, with individual provisions being based on best estimates of the

possible loss, considering all available information, external advice and historical experience.

As at 31 December 2024, the Group recognised legal provisions of £112 million (2023: £137 million)

in relation to a number of historical regulatory and other matters in various jurisdictions.

2 Operating Segments

The Group’s operating segments comprise the Hygiene, Health and Nutrition business units

reflecting the way in which information is presented to and reviewed by the Group’s Chief

Operating Decision Maker (CODM) for the purposes of making strategic decisions and assessing

Group-wide performance.

The CODM is the Group Executive Committee. This Committee is responsible for the

implementation of strategy (approved by the Board), the management of risk (delegated by the

Board) and the review of Group operational performance and ongoing business integration.

The Group Executive Committee assesses the performance of these operating segments based

on net revenue from external customers and segment profit being adjusted operating profit.

Intercompany transactions between operating segments are eliminated. Finance income and

expense are not allocated to segments, as each is managed on a centralised basis.

Notes to the Financial Statements continued

Strategic report Governance Financial statements Other information Reckitt Annual Report and Accounts 2024

167

Notes to the Financial Statements continued

2 Operating Segments continued

The segment information for the operating segments for the year ended 31 December 2024 and 31

December 2023 is as follows:

				Adjusting
	Hygiene	Health	Nutrition	items	Total
Year ended 31 December 2024	£m	£m	£m	£m	£m
Net revenue	6,140	5,882	2,147	–	14,169
Depreciation and amortisation
(Note 9 & 10)	(159)	(189)	(88)	(25)	(461)
Operating profit	1,375	1,699	401	(1,050)	2,425
Net finance expense					(321)
Profit before income tax					2,104
Income tax charge					(672)
Net profit from continuing operations					1,432

				Adjusting
	Hygiene	Health	Nutrition	items	Total
Year ended 31 December 2023	£m	£m	£m	£m	£m
Net revenue	6,135	6,062	2,410	–	14,607
Depreciation and amortisation	(155)	(193)	(96)	(26)	(470)
Operating profit	1,236	1,690	447	(842)	2,531
Net finance expense					(130)
Profit before income tax					2,401
Income tax charge					(753)
Net profit from continuing operations					1,648

Financial information for the Hygiene, Health and Nutrition operating segments is presented on an

adjusted basis which excludes certain cash and non-cash items. These items have a pattern of

recognition that is largely uncorrelated with the trading performance of the business. Financial

information on an adjusted basis is consistent with how management reviews the Business for the

purpose of making operating decisions. Further detail on adjusting items, which includes in the

year to 31 December 2024 a £696 million impairment of IFCN intangible assets, £142 million

impairment of Biofreeze intangible assets, restructuring and other project costs of £167 million

linked to the group strategic announcements in 2024, is included on page 226.

The Company is domiciled in the UK. The split of net revenue from external customers and

non-current assets (other than equity instruments, deferred tax assets and retirement benefit

surplus assets) between the UK, the US (being the biggest country outside the country of domicile)

and that from all other countries is:

			All other
	UK	US	countries	Total
2024	£m	£m	£m	£m
Net revenue	886	4,183	9,100	14,169
Goodwill and other intangible assets	1,911	8,980	6,674	17,565
Property, plant and equipment	283	788	1,314	2,385
Other non-current receivables (excluding
derivative financial instruments)	6	19	88	113

			All other
	UK	US	countries	Total
2023	£m	£m	£m	£m
Net revenue	886	4,538	9,183	14,607
Goodwill and other intangible assets	1,903	9,646	7,039	18,588
Property, plant and equipment	290	768	1,341	2,399
Other non-current receivables (excluding
derivative financial instruments)	12	18	92	122

Major customers are typically large grocery chains, multiple retailers and e-commerce platforms.

The Group’s customer base is diverse with no individual customer accounting for more than 10%

of net revenue (2023: no individual more than 10% of revenue).

3 Analysis of Net Operating Expenses

	2024	2023
	£m	£m
Distribution costs 1	(3,537)	(3,703)
Research and development costs	(325)	(337)
Other administrative expenses 2	(1,474)	(1,382)
Impairment of intangible assets 3	(839)	(810)
Other net operating income	5	3
Net operating expenses	(6,170)	(6,229)

1 Included in distribution costs is an amount of £2,162 million (2023: £2,193 million) relating to marketing costs

2 Other administrative expenses includes a net foreign exchange loss of £13 million (2023: loss of £6 million) and £167 million

(2023: £nil) of restructuring expenses

3 Impairment of intangible assets includes £838 million relating to the IFCN and Biofreeze businesses (2023: £810 million goodwill

impairment relating to the IFCN business). Further details can be found in Note 9

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168

4 Auditor Remuneration

During the year, the Group (including its overseas subsidiaries) obtained the following services

from the Company’s Auditor and its associates:

	2024	2023
	£m	£m
Audit services pursuant to legislation
Audit of the Group’s Annual Report and Financial Statements	8.0	8.9
Audit of the Financial Statements of the Group’s subsidiaries	11.7	10.5
Audit-related assurance services	0.9	0.9
Total audit and audit-related services	20.6	20.3
Fees payable to the Company’s Auditor and its associates for other services
Other assurance services	3.6	0.4
Total non-audit services	3.6	0.4
	24.2	20.7

5 Employee Costs

Total employee costs, including those for Directors, were:

		2024	2023
	Note	£m	£m
Wages and salaries		2,026	2,126
Social security costs		272	281
Other pension costs	23	63	60
Share-based payments	25	85	102
Total staff costs		2,446	2,569

Executive and Non-Executive Directors’ aggregate emoluments are disclosed on pages 96-133 of

the Directors’ Remuneration Report. Compensation awarded to key management (defined as the

members of the Group Executive Committee and the Non-Executive Directors) was:

	2024	2023
	£m	£m
Short-term employee benefits	26	31
Post-employment and other long-term benefits	–	–
Share-based payments	22	22
	48	53

Staff numbers

The monthly average number of people employed by the Group, including Directors, during the

year was:

	2024	2023
	’000	’000
North America	5.0	5.2
Europe/ANZ	14.1	14.2
Rest of world	18.8	20.7
	37.9	40.1

6 Net Finance Expense

	2024	2023
	£m	£m
Finance income
Foreign exchange net gain on liquidation of subsidiaries	–	130
Interest income on cash and cash equivalents	53	41
Pension net finance income	5	8
Finance income on tax balances	15	–
Foreign exchange gains on intercompany financing, net of hedging	–	21
Other finance income	8	10
Total finance income	81	210
Finance expense
Interest payable on borrowings	(363)	(295)
Finance expense on tax balances	–	(22)
Forward purchase agreement interest expense	(17)	–
Interest payable on leases	(13)	(14)
Other finance expense	(9)	(9)
Total finance expense	(402)	(340)
Net finance expense	(321)	(130)

In 2023, as a result of the simplification of the Group’s legal entity structure, a number of entities

were liquidated. Upon liquidation, the cumulative foreign exchange reserves were recycled to the

Income Statement, resulting in a net foreign exchange gain of £130 million.

Notes to the Financial Statements continued

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169

Notes to the Financial Statements continued

7 Income Tax Expense

	2024	2023
	£m	£m
Current tax	747	783
Adjustment in respect of prior periods	(47)	22
Total current tax	700	805
Origination and reversal of temporary differences	(30)	(51)
Impact of changes in tax rates	2	(1)
Total deferred tax	(28)	(52)
Income tax charge	672	753

Current tax includes tax incurred by UK entities of £97 million (2023: £108 million). This is comprised

of UK corporation tax of £62 million (2023: £63 million) and overseas tax suffered of £35 million

(2023: £45 million). UK current tax is calculated at 25% (2023: 23.5%) of the estimated assessable

profit for the year, net of relief for overseas taxes where available. Taxation in other jurisdictions is

calculated at the rates prevailing in the relevant jurisdictions.

Cash tax paid in the year was £700 million (2023: £922 million). The variance from the current year

tax charge of £747 million is attributable to movements on uncertain tax positions (shown in

Note 22) and timing differences arising between the accrual and payment of current income tax

liabilities and refunds received from taxing authorities in respect of previous periods.

Origination and reversal of temporary differences includes adjustments in respect of prior periods

of £36 million expense (2023: £11 million expense).

The total tax charge on the Group’s profit for the year can be reconciled to the notional tax charge

calculated at the UK tax rate as follows:

	2024	2023
Continuing operations	£m	£m
Profit before income tax	2,104	2,401
Tax at the notional UK corporation tax rate of 25% (2023: 23.5%)	526	564
Effect of:
Overseas tax rates	8	43
Movement in provision related to uncertain tax positions (note 22)	(143)	(50)
Net impact of divestments and assets reclassified to held for sale	(3)	(6)
Unrecognised tax losses, other unrecognised tax assets and deferred
tax liability on unremitted earnings	36	(34)
Withholding and local taxes	30	30
Reassessment of prior year estimates	(11)	33
Impact of changes in tax rates	2	(1)
Non-taxable foreign exchange gain arising from legal entity
simplification (Note 6)	–	(31)
Non-deductible impairment of goodwill	174	190
Other permanent differences	53	15
Income tax charge	672	753

Our effective tax rate in any given financial year reflects a variety of factors that may not be

present in succeeding financial years and may be affected by variations in profit mix and changes

in tax laws, regulations and related interpretations.

The Group is within the scope of the OECD Pillar Two rules which took effect on 1 January 2024.

The UK government substantively enacted legislation on 20 June 2023 that translated the Pillar

Two rules into UK law. The Company recorded a Pillar Two current tax expense of £1 million for

2024.

The Group has applied the temporary mandatory exception from accounting for deferred taxes

arising from the Pillar Two model rules as set out in ‘International Tax Reform – Pillar Two Model

Rules (Amendments to IAS 12)’ issued by the IASB in May 2023.

Strategic report Governance Financial statements Other information Reckitt Annual Report and Accounts 2024

170

7 Income Tax Expense continued

The effect of overseas tax rates represents the impact of profits arising outside the UK that are

taxed at different rates to the UK rate. The UK tax rate increased from 19% to 25% on 1 April 2023.

23.5% represents the blended UK tax rate over the 12 month period to 31 December 2023.

Withholding and local taxes suffered in the year are adjusted for previously accrued deferred tax

liabilities on unremitted earnings.

The reassessment of prior year estimates includes settlements reached following conclusion of tax

authority review and differences between final tax return submissions and liabilities accrued in

these Financial Statements.

The 2023 and 2024 impact of non-deductible goodwill impairment is attributable to IFCN.

UK deferred tax assets and liabilities have been calculated based on the substantively enacted

rate of 25% (2023: 25%).

We conduct business operations in a number of countries and are therefore subject to tax and

intercompany pricing laws in multiple jurisdictions. We have in the past faced, and may in the

future face, audits and challenges brought by tax authorities, and we are involved in ongoing tax

investigations in a number of countries. If material challenges were to be successful, our effective

tax rate may increase, we may be required to modify structures at significant costs to us, we may

also be subject to interest and penalty charges and we may incur costs in defending litigation or

reaching a settlement. Any of the foregoing could materially and adversely affect our business,

financial condition and results of operations.

On 19 September 2024, the Court of Justice of the European Union annulled the European

Commission’s decision finding certain United Kingdom rules on the taxation of controlled foreign

companies (CFCs) to be State Aid incompatible with the internal market and set aside the

judgement of the General Court confirming that decision. The Group has therefore released the

uncertain tax position in respect of this matter.

The tax credited /(charged) relating to components of other comprehensive income is as follows:

		2024			2023
					Tax
		Tax (charge)			(charge)
	Before tax	/credit	After tax	Before tax	/credit	After tax
	£m	£m	£m	£m	£m	£m
Net exchange (losses)/gains
on foreign currency translation	(438)	(4)	(442)	(639)	–	(639)
Reclassification of foreign
currency translation reserves
on disposals or liquidation of foreign operations	(11)	–	(11)	(131)	–	(131)
Gains/(losses) on cash flow
and net investment hedges	123	–	123	14	(11)	3
Remeasurement of defined
benefit pension plans
(Note 23)	(13)	–	(13)	(42)	16	(26)
Revaluation of equity instruments	(27)	(1)	(28)	(10)	–	(10)
Other comprehensive
(expense)/income	(366)	(5)	(371)	(808)	5	(803)
Current tax		–			–
Deferred tax (Note 12)		(5)			5
		(5)			5

The tax charged directly to the Statement of Changes in Equity during the year is as follows:

	2024	2023
	£m	£m
Current tax	–	1
	–	1

Notes to the Financial Statements continued

Strategic report Governance Financial statements Other information Reckitt Annual Report and Accounts 2024

171

Notes to the Financial Statements continued

8 Earnings Per Share

	2024	2023
	pence	pence
Basic earnings per share
From continuing operations	204.2	227.9
From discontinued operations	(0.6)	1.3
Total basic earnings per share	203.6	229.2
Diluted earnings per share
From continuing operations	203.8	227.4
From discontinued operations	(0.6)	1.3
Total diluted earnings per share	203.2	228.7

Basic

Basic earnings per share is calculated by dividing the net income attributable to owners of the

Parent Company from continuing operations (2024: £1,430 million income, 2023: £1,634 million

income) and discontinued operations (2024: £4 million expense; 2023: £9 million income) by the

weighted average number of ordinary shares in issue during the year (2024: 700,386,007;

2023: 716,700,954).

Diluted

Diluted earnings per share is calculated by adjusting the weighted average number of shares

outstanding to assume conversion of all potentially dilutive ordinary shares. The Company has the

following categories of potentially dilutive ordinary shares: Executive Share Awards (including

Executive Share Options and Executive Restricted Share Scheme Awards) and Employee

Sharesave Scheme Options. The options only dilute earnings when they result in the issue of shares

at a value below the market price of the share and when all performance criteria (if applicable)

have been met as at the Balance Sheet date. As at 31 December 2024, there were 16,237,641

(2023: 15,150,221) Executive Share Awards excluded from the dilution because the exercise price

for the options was greater than the average share price for the year or the performance criteria

have not been met.

	2024	2023
	average	average
	number of	number of
	shares	shares
On a basic basis	700,386,007	716,700,954
Dilution for Executive Share Awards	1,261,552	1,368,088
Dilution for Employee Sharesave Scheme Options	94,701	214,492
On a diluted basis	701,742,260	718,283,534

9 Goodwill and Other Intangible Assets

	Brands	Goodwill	Software	Other	Total
	£m	£m	£m	£m	£m
Cost
At 1 January 2023	14,525	11,036	653	278	26,492
Additions	–	–	101	–	101
Arising on business combinations	–	17	–	39	56
Disposals	(1)	–	–	–	(1)
Reclassifications	–	–	4	–	4
Reclassifications to held for sale	(124)	–	–	–	(124)
Exchange adjustments	(583)	(660)	(5)	(4)	(1,252)
At 31 December 2023	13,817	10,393	753	313	25,276
Additions	–	–	95	–	95
Arising on business combinations	–	2	1	–	3
Disposals	–	(8)	(5)	–	(13)
Reclassifications	5	(4)	–	(1)	–
Exchange adjustments	(118)	(40)	(10)	7	(161)
At 31 December 2024	13,704	10,343	834	319	25,200
Accumulated amortisation and impairment
At 1 January 2023	379	5,427	335	148	6,289
Amortisation	20	–	79	8	107
Impairment	–	810	2	–	812
Disposals	(1)	–	–	–	(1)
Reclassifications to held for sale	(77)	–	–	–	(77)
Exchange adjustments	(10)	(422)	(4)	(6)	(442)
At 31 December 2023	311	5,815	412	150	6,688
Amortisation	21	–	79	8	108
Impairment 1	143	696	–	–	839
Disposals	(1)	–	(1)	–	(2)
Exchange adjustments	(7)	11	(5)	3	2
At 31 December 2024	467	6,522	485	161	7,635
Net book value
At 31 December 2023	13,506	4,578	341	163	18,588
At 31 December 2024	13,237	3,821	349	158	17,565

1 Includes impairment of IFCN and Biofreeze. See Annual Impairment Review section below

Strategic report Governance Financial statements Other information Reckitt Annual Report and Accounts 2024

172

9 Goodwill and Other Intangible Assets continued

The amount stated for brands represents the fair value of brands acquired since 1985 at the date

of acquisition. Other includes product registration, distribution rights, capitalised product

development costs and customer contracts.

Software includes intangible assets under construction of £107 million (2023: £88 million).

The net book values of significant brand intangible assets acquired through business combinations

are as follows:

	Acquisition	2024	2023
Acquisition	year	£m	£m
Mead Johnson Nutrition Company	2017	4,503	4,480
SSL International	2010	1,790	1,847
Boots Healthcare International	2006	1,363	1,405
Adams Respiratory Therapeutics	2008	1,230	1,210
Schiff Nutrition International	2012	1,050	1,032
L&F Household	1994	846	834
Lanai Holdings	2021	511	644
American Home Products Corporation	1990	440	439
Bristol-Myers Squibb OTC	2013	297	362
K-Y	2014	280	280

The majority of brands, all of goodwill and certain other intangible assets are considered to have

indefinite lives (see Note 1) and therefore are subject to an annual impairment review. The MJN

global brand and acquired customer relationships are deemed to have a finite life and are

amortised accordingly. Amortisation is recognised in net operating expenses or cost of goods sold

depending on the use of the asset.

The net book values of indefinite and finite life intangible assets are as follows:

	2024	2023
Net book value	£m	£m
Indefinite life assets
Brands	13,166	13,415
Goodwill	3,821	4,578
Other	115	107
Total indefinite life assets	17,102	18,100
Finite life assets
Brands	71	91
Software	349	341
Other	43	56
Total finite life assets	463	488
Total net book value of intangible assets	17,565	18,588

Cash Generating Units

Goodwill and other intangible assets with indefinite lives are allocated to either individual cash

generating units (CGUs), or groups of cash generating units (together GCGUs). The goodwill and

intangible assets with indefinite lives are tested for impairment at the level at which identifiable

cash inflows are largely independent. Generally, this is at a GCGU level, but for certain intangible

assets this is at a CGU level.

After considering all the evidence available, including how brand and production assets generate

cash inflows and how management monitors the business, the Directors have concluded that for

the purpose of impairment testing of goodwill and other intangible assets, the Group’s GCGUs are

Health, Hygiene and IFCN.

An analysis of the net book value of indefinite life assets and goodwill by GCGU/CGU is shown below:

		2024
	Indefinite
	life assets	Goodwill	Total
GCGU/CGU	£m	£m	£m
Health 1	6,981	3,776	10,757
Hygiene	1,828	45	1,873
IFCN	4,472	–	4,472
	13,281	3,821	17,102

		2023
	Indefinite
	life assets	Goodwill	Total
GCGU/CGU	£m	£m	£m
Health 1	7,258	3,849	11,107
Hygiene	1,844	45	1,889
IFCN	4,420	684	5,104
	13,522	4,578	18,100

1 Indefinite lived intangible assets and goodwill for VMS, and goodwill for Biofreeze, were transferred to the Health GCGU in 2023

	2024	2023
Indefinite life assets excluding goodwill	£m	£m
Intimate Wellness	2,083	2,143
Biofreeze	481	613

Notes to the Financial Statements continued

Strategic report Governance Financial statements Other information Reckitt Annual Report and Accounts 2024

173

Notes to the Financial Statements continued

9 Goodwill and Other Intangible Assets continued

Annual Impairment Review

Goodwill and other indefinite life intangible assets must be tested for impairment on at least an

annual basis. An impairment loss is recognised when the recoverable amount of a GCGU or CGU

falls materially below its net book value at the date of testing.

The determination of recoverable amount, being the higher of value-in-use and fair value less

costs to dispose, is inherently judgemental and requires management to make multiple estimates,

for example around individual market pressures and forces, future price and volume growth, future

margins, terminal growth rates and discount rates.

When forecasting the annual cash flows that support the recoverable amount, the Group generally

uses its short-term budgets and medium-term strategic plans, with additional senior management

and Board-level review. Cash flows beyond the five-year period are projected using terminal

growth rates. These rates do not exceed the long-term average growth rate for the products and

markets in which the GCGU or CGU operates.

The cash flows are discounted back to their present value using a pre-tax discount rate considered

appropriate for each GCGU and CGU. These rates have been derived from management’s views

on the relevant weighted average cost of capital, subsequently converted to the pre-tax

equivalent discount rate.

For the Health and Hygiene GCGUs, and the Intimate Wellness CGU, as at 31 December 2024 any

reasonably possible change in the key valuation assumptions would not imply possible impairment.

The recoverable amount for each of these GCGUs and CGU was determined utilising the value-in-

use basis (2023: value-in-use basis) with key assumptions including a pre-tax discount rate of 9%

for Health, Hygiene and Intimate Wellness (2023: 11% for Health, Hygiene and Intimate Wellness),

and a terminal growth rate of either 2.5% for Health, Intimate Wellness and Biofreeze (2023: 2.5%),

or 2% for Hygiene and IFCN (2023: 2%).

IFCN

Since the disposal of the IFCN China business in September 2021, the IFCN CGU has represented

the Group’s remaining IFCN business principally in North America, Latin America and ASEAN. In

impairment assessments conducted in both 2021 and 2022, management determined that the

recoverable amount of IFCN was higher than its carrying value such that no impairment was

required.

During 2023 the market environment for IFCN continued to be influenced by the infant formula

supply shortages in the US which resulted from the temporary closure of a major factory belonging

to a competitor. The infant formula supply shortages have resulted in an evolving regulatory

environment, which developed over the course of 2023 and 2024. Compliance with enhanced

regulatory requirements is expected to increase the capital requirement for the IFCN business and

to impact the cost of manufacture in future periods.

In 2023, as a result of these regulatory factors and to incorporate the effect of higher interest

rates, management increased the pre-tax discount rate used to determine the value-in-use of the

IFCN CGU. This resulted in the IFCN net book value exceeding its recoverable amount, and so

management recorded an impairment loss against IFCN goodwill of £810 million.

During 2024, management further developed their response to the changing regulatory

environment and to provide greater resilience to the supply network which now includes

significantly more capital expenditure and the accelerated replacement of capital equipment. This

capital investment programme over the next five years includes the delivery of replacement spray

dryer capacity.

This resulted in the IFCN net book value exceeding its recoverable amount, therefore management

has recorded an impairment loss against IFCN goodwill of £696 million to record the IFCN CGU at

its recoverable amount of £3,890 million.

The recoverable amount for IFCN has been calculated on a value-in-use basis (2023: value-in-use

basis). The value-in-use of IFCN was determined utilising a discounted cash flow approach with

future cash flows derived from a detailed five-year financial plan. Cash flows beyond the five-year

plan are projected using a terminal growth rate. The valuation used a pre-tax discount rate of 11%

(2023: 11%) and an IFCN specific terminal growth rate of 2.0% (2023: 2.0%).

The determination of the recoverable amount for IFCN at 31 December 2024 incorporates certain

key assumptions, some of which are subject to considerable uncertainty. These assumptions

include but are not limited the costs of complying with the evolving regulatory landscape,

execution of the capital programme, ongoing resilience risk within the supply network, net

revenue growth rates, the commercial success of new product launches and the expansion of

speciality nutrition. The value in use does not include any possible net cash outflows in respect of

current and future NEC litigation (note 20). As no headroom exists between the IFCN recoverable

amount and net book value, any changes to these assumptions, or any deterioration in other macro

or business-level assumptions supporting the IFCN recoverable amount could necessitate the

recognition of impairment losses in future periods

The key assumptions used in the estimation of value-in-use of IFCN are outlined below:

	2024
Pre-tax discount rate	11%
Terminal growth rate	2.0%
Net revenue compound annual growth rate (CAGR) for the period 2024-2029 1	3.2%
Gross margin CAGR for the period 2024-2029 1	2.7%

	2023
Pre-tax discount rate	11.0%
Terminal growth rate	2.0%
Net revenue compound annual growth rate (CAGR) for the period 2023-2028 1, 2	1.5%
Gross margin CAGR for the period 2023-2028 3	2.2%

1 These have been determined on a constant FX basis

2 The net revenue CAGR for the period 2024-2028 is circa 4%, following rebasing of Nutrition net revenue in 2024

3 The gross margin CAGR for the period 2024-2028 is circa 5%

Strategic report Governance Financial statements Other information Reckitt Annual Report and Accounts 2024

174

9 Goodwill and Other Intangible Assets continued

IFCN continued

The key estimates incorporated within the determination of the IFCN recoverable amount are

summarised below:

Key estimates	Commentary
Capital expenditure	A significant capital investment programme has commenced to meet
	regulatory requirements and to build greater resilience in the wider supply
	network.
Market	In the US, management expects birth rates to be relatively stable.
	Tendering for WIC contracts continues to be highly competitive but
	management expects this to remain stable.
	Within LATAM and ASEAN, management expects conditions to stabilise
	after recent inflationary price increases.
Net revenue	In the short to medium term, the valuation model assumes a five-year
	CAGR of 3.2%. This is expected to be achieved through ongoing
	premiumisation, inflationary price increases and revenues from new
	products/category launches including the expansion of speciality nutrition.
Margins	In the short to medium term, the valuation model assumes IFCN margins
	(both gross and operating) decline marginally as the capital expenditure
	programme is delivered. In the long term these are expected to return to
	more normalised levels.
Discount rate	Management determined an IFCN-specific weighted average cost of
	capital (WACC) and the implied pre-tax discount rate with the support of
	a third-party expert. In addition, management performed benchmarking
	against other comparable companies. The specific risk premium reflects
	the risk associated with the delivery of the capital investment programme
	over the next five years and the continued impact of the evolving
	regulatory environment.
Terminal growth rate	Management engaged a third-party expert to help calculate an IFCN-specific
	terminal growth rate. Management is satisfied with the reasonableness of the
	terminal growth rate when compared against independent market growth
	projections and long-term country inflation rates.

The table below shows the sensitivity of the recoverable amount to reasonably possible changes

in key assumptions. The table assumes no related response by management (for example, to drive

further cost savings) and is hence theoretical in nature.

	2024
	£m
Expected net revenue growth rates (2025 to 2029) adjusted by 100bps	+475/-460
Expected EBIT growth rates (2025 to 2029) adjusted by 100bps	+220/-215
Terminal growth rate (applied from 2030) adjusted by 50bps	+330/-280
Pre-tax discount rate adjusted by 50bps	+280/-250

The inclusion of a further £200 million of capital expenditure in the value-in-use model, without any

associated improvements in gross margin, would result in an additional impairment of £154 million.

	2023
	£m
Expected net revenue growth rates (2024 to 2028) adjusted by 100bps	+410/-400
Expected EBIT growth rates (2024 to 2028) adjusted by 100bps	+220/-210
Terminal growth rate (applied from 2029) adjusted by 50bps	+290/-250
Pre-tax discount rate adjusted by 50bps	+270/-240

Biofreeze

On 12 July 2021, the Group acquired 100% of the equity interests in Lanai Holdings, owner of the

Biofreeze and TheraPearl brands, for cash consideration of $1,060 million (£766 million). Biofreeze

is a leader in over-the-counter topical pain relief, with a strong footprint in the North America retail

and clinical channels and a growing international presence.

During 2022, Biofreeze performed below expectations following a short-term category

slowdown, in part due to macroeconomic conditions. This underperformance, together with the

macroeconomic environment, introduced additional uncertainty into future Biofreeze cash flows.

To reflect this uncertainty, management increased the pre-tax discount rate used to determine

value-in-use to 12.0%. This resulted in the book value of the Biofreeze CGU exceeding its

recoverable amount at 31 December 2022, therefore in 2022 management recorded a goodwill

impairment of £152 million to record Biofreeze at its recoverable amount of £698 million

($843 million). Following this impairment, at 31 December 2022 no headroom remained

between the Biofreeze recoverable amount and net book value.

During the second half of 2023, the integration of Biofreeze into the Health business was

completed. Following this integration, Biofreeze goodwill is monitored at the Health GCGU level

and Biofreeze goodwill has accordingly been transferred to the Health GCGU. An impairment

review of the Biofreeze CGU inclusive of goodwill was performed immediately prior to the transfer

of the goodwill, with this review performed as at 30 September 2023. Biofreeze goodwill was

deemed recoverable immediately prior to transfer to the Health GCGU.

During 2024, Biofreeze performed below expectations following a reduction in the level of displays

present in the category, competitive pressure from both private label and branded competitors

as well as new entrants to the market. This resulted in Biofreeze net book value exceeding its

recoverable amount at 31 December 2024, therefore management has recorded an impairment

against the brand intangibles of £142 million ($178 million) to record Biofreeze at its recoverable

amount of £531 million ($664 million). The recoverable amount for the Biofreeze CGU has been

determined on a value-in-use basis using a discounted cash flow approach, with future cash flows

derived from a detailed five-year plan. Cash flows beyond the five-year plan have been projected

using a terminal growth rate of 2.5% (2023: 2.5%).

The determination of the recoverable amount for Biofreeze in the 2024 impairment assessment

incorporates certain key assumptions, some of which are subject to considerable uncertainty.

These assumptions include but are not limited to anticipated market share improvement, the

commercial success of new product launches and international market expansion.

Notes to the Financial Statements continued

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175

Notes to the Financial Statements continued

9 Goodwill and Other Intangible Assets continued

Biofreeze continued

The key assumptions used in the estimation of value-in-use of Biofreeze at 31 December 2024 are

outlined below.

	31 December
	2024
Pre-tax discount rate	11%
Terminal growth rate	2.5%
Net revenue compound annual growth rate (CAGR) for the period 2024-2029	8%
Gross margin CAGR for the period 2024-2029	8%

The key estimates incorporated within the determination of the Biofreeze recoverable amount in

2024 are summarised below:

Key estimates	Commentary
Net revenue	In the short to medium term, the valuation model assumes a five-year
	CAGR of 8%, to be delivered through category growth and market share
	growth driven by a mix of innovation arising from format expansion of
	existing products and international expansion.
Margins	In the short to medium term, the valuation model assumes Biofreeze
	margins (both gross and operating) to increase from current levels as
	Biofreeze benefits from productivity initiatives on integrating into Reckitt.
Discount rate	Management determined the Biofreeze-specific weighted average cost of
	capital (WACC) and the implied pre-tax discount rate with the support of
	a third-party expert. For valuation purposes management used the
	mid-point of the calculated range to reflect uncertainty in certain key
	assumptions.
Terminal growth rate	Management is satisfied with the reasonableness of the terminal growth
	rate when compared against independent market growth projections and
	long-term country inflation rates.

The table below shows the sensitivity of the recoverable amount to reasonably possible changes

in key assumptions. The table assumes no related response by management (for example, to drive

further cost savings) and hence is theoretical in nature.

	31 December
	2024
	£m
Expected net revenue growth rates (2025 to 2029) adjusted by 100bps	+45/-40
Expected EBIT growth rates (2025-2029) adjusted by 100bps	+30/-25
Terminal growth rate (applied from 2030) adjusted by 50bps	+45/-40
Pre-tax discount rate adjusted by 50bps	+45/-40

10 Property, Plant and Equipment

	Land and	Plant and	Right of	Assets under
	buildings	equipment	use assets	construction	Total
	£m	£m	£m	£m	£m
Cost
At 1 January 2023	1,409	2,368	580	394	4,751
Additions	13	38	56	301	408
Disposals	(17)	(48)	(53)	(6)	(124)
Reclassifications (including held for sale)	92	231	11	(349)	(15)
Exchange adjustments	(34)	(59)	(27)	(11)	(131)
At 31 December 2023	1,463	2,530	567	329	4,889
Additions	34	52	70	266	422
Disposals	(23)	(100)	(57)	–	(180)
Reclassifications (including held for sale)	66	196	–	(242)	20
Exchange adjustments	(35)	(63)	(16)	(5)	(119)
At 31 December 2024	1,505	2,615	564	348	5,032
Accumulated depreciation and impairment
At 1 January 2023	556	1,511	206	5	2,278
Charge for the year	68	199	96	–	363
Disposals	(16)	(42)	(28)	–	(86)
Impairment	4	4	–	–	8
Reclassifications (including held for sale)	(1)	(3)	–	–	(4)
Exchange adjustments	(16)	(41)	(11)	(1)	(69)
At 31 December 2023	595	1,628	263	4	2,490
Charge for the year	66	202	85	–	353
Disposals	(13)	(91)	(42)	–	(146)
Impairment	3	3	–	2	8
Reclassifications (including held for sale)	(1)	8	–	2	9
Exchange adjustments	(16)	(42)	(9)	–	(67)
At 31 December 2024	634	1,708	297	8	2,647
Net book value
As at 31 December 2023	868	902	304	325	2,399
As at 31 December 2024	871	907	267	340	2,385

Strategic report Governance Financial statements Other information Reckitt Annual Report and Accounts 2024

176

10 Property, Plant and Equipment continued

At 31 December 2024, the Group’s right of use assets included land and buildings of £232 million

(2023: £276 million) and other assets of £35 million (2023: £28 million). The depreciation charged on

the right of use assets comprises £71 million (2023: £82 million) on the land and buildings and

£14 million (2023: £14 million) on the other assets.

At 31 December 2024, the Group has commitments to purchase property, plant and equipment

of £70 million (2023: £69 million).

11 Equity Instruments

			2024				2023
		Fair value	Fair value			Fair value	Fair value
		through	through other			through	through other
	Equity	profit or	comprehensive		Equity	profit	comprehensive
	method	loss	income	Total	method	or loss	income	Total
	£m	£m	£m	£m	£m	£m	£m	£m
Equity
investments	–	57	51	108	–	45	69	114
Investments in associates	–	–	–	–	4	–	–	4
	–	57	51	108	4	45	69	118

Equity investments at 31 December 2024 and 2023 is composed of a number of listed and unlisted

equity investments in which the Group has a minority stake.

In 2024, equity investments includes investments of £57 million (2023: £45 million) principally in

equity mutual funds which are made in the name of the Group, but the proceeds of which are

provided to employees as part of their compensation arrangements.

The Group also holds a number of individually immaterial investments in associates over which it

exercises a significant influence. In 2024, there are no impairments and gains or losses associated

with equity accounted investments that are less than £1 million.

12 Deferred Tax

	Accelerated		Short-term		Retirement
	capital	Intangible	temporary		benefit
	allowances	assets	differences	Tax losses	obligations	Total
Deferred tax	£m	£m	£m	£m	£m	£m
At 1 January 2024	(60)	(3,121)	511	64	(6)	(2,612)
(Charged) / credited to the Income Statement	(18)	19	46	(13)	(6)	28
Credited/(charged) to other comprehensive income	–	–	(5)	–	–	(5)
Exchange differences	(5)	12	(18)	(6)	–	(17)
At 31 December 2024	(83)	(3,090)	534	45	(12)	(2,606)

	Accelerated		Short-term		Retirement
	capital	Intangible	temporary	Tax	benefit
	allowances	assets	differences	losses	obligations	Total
2024	£m	£m	£m	£m	£m	£m
Deferred tax assets	18	(27)	197	44	11	243
Deferred tax liabilities	(101)	(3,063)	337	1	(23)	(2,849)
Deferred tax	(83)	(3,090)	534	45	(12)	(2,606)

	Accelerated		Short-term		Retirement
	capital	Intangible	temporary	Tax	benefit
	allowances	assets	differences	losses	obligations	Total
Deferred tax	£m	£m	£m	£m	£m	£m
At 1 January 2023	(54)	(3,274)	503	46	(14)	(2,793)
Credited/(charged) to the Income Statement	(10)	11	39	19	(7)	52
Credited/(charged) to other comprehensive income	–	–	(11)	–	16	5
Arising on business
combinations	–	–	(1)	–	–	(1)
Exchange differences	4	142	(19)	(1)	(1)	125
At 31 December 2023	(60)	(3,121)	511	64	(6)	(2,612)

Notes to the Financial Statements continued

Strategic report Governance Financial statements Other information Reckitt Annual Report and Accounts 2024

177

Notes to the Financial Statements continued

12 Deferred Tax continued

	Accelerated		Short-term		Retirement
	capital	Intangible	temporary		benefit
	allowances	assets	differences	Tax losses	obligations	Total
2023	£m	£m	£m	£m	£m	£m
Deferred tax assets	16	(38)	237	62	10	287
Deferred tax liabilities	(76)	(3,083)	274	2	(16)	(2,899)
Deferred tax	(60)	(3,121)	511	64	(6)	(2,612)

Deferred tax assets and liabilities have been offset where they relate to income taxes levied by

the same taxation authority. Deferred tax on short-term temporary differences of £534 million

(2023: £511 million) are comprised of accrued expenses deductible for tax on a cash basis of £362

million (2023: £404 million), other short-term temporary differences of £205 million (2023: £140

million) and net of deferred tax liabilities on unremitted earnings of £33 million (2023: £33 million).

Unrecognised deferred tax assets

Deferred tax assets on certain corporation tax losses and other short-term temporary differences

totalling £4,738 million gross (2023: £4,734 million gross) have not been recognised at 31 December

2024 as the likelihood of future economic benefit is not sufficiently assured. These assets will be

recognised if utilisation of the losses and other temporary differences become probable.

Unrecognised deferred tax liabilities

The aggregate amount of gross temporary differences associated with investments in subsidiaries,

branches and associates and interest in joint ventures, for which deferred tax liabilities have not

been recognised at 31 December 2024 is £7,405 million (2023: £7,833 million).

13 Inventories

	2024	2023
	£m	£m
Raw materials and consumables	359	401
Work in progress	87	82
Finished goods and goods held for resale	1,071	1,154
Total inventories	1,517	1,637

The total cost of inventories recognised as an expense and included in cost of sales amounted to

£5,324 million (2023: £5,577 million). This includes inventory write-offs and losses of £112 million

(2023: £111 million).

The Group inventory provision at 31 December 2024 was £153 million (2023: £108 million).

14 Trade and Other Receivables

		2024	2023
Amounts falling due within one year	Note	£m	£m
Trade receivables		1,783	1,741
Less: Provision for impairment of receivables		(33)	(36)
Trade receivables – net		1,750	1,705
Other receivables	14b	218	266
Prepayments and accrued income		123	91
Trade and other receivables		2,091	2,062

The carrying amounts of the Group’s trade and other receivables are denominated in the

following currencies:

	2024	2023
Currency analysis	£m	£m
US dollar	616	575
Euro	283	302
Sterling	169	173
Brazilian real	142	170
Other currencies	881	842
Trade and other receivables	2,091	2,062

The maximum exposure to credit risk at the year end is the carrying value of each class of

receivable mentioned above.

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14 Trade and Other Receivables continued

a. Trade receivables

Trade receivables consist of amounts due from customers. The Group’s customer base is large

and diverse and consequently there is limited concentration of credit risk. Credit risk is assessed

at a subsidiary and Group level and takes into account the financial positions of customers, past

experience, future expectations and other relevant factors. Individual credit limits are established

based on those factors.

The following table provides an ageing analysis of trade receivables at year end:

	2024	2023
	£m	£m
Not overdue	1,514	1,455
Up to 3 months overdue	219	250
Over 3 months overdue	50	36
Trade receivables	1,783	1,741

At 31 December 2024, a provision of £33 million (2023: £36 million) was recorded against certain

trade receivables based on a forward-looking assessment of the lifetime expected credit loss as

required by IFRS 9. This assessment considered the ageing profiles of specific trade receivable

balances along with the risk of future customer defaults.

As at 31 December 2024, trade receivables of £236 million (2023: £250 million) were past due but

not impaired. These receivables were not impaired because having considered their nature and

historical collection, recovery of the unprovided amounts is expected in due course.

b. Other receivables

Other receivables includes recoverable indirect tax of £156 million (2023: £187 million).

c. Other non-current receivables

Other non-current receivables consists of:

	2024	2023
	£m	£m
Other receivables	63	72
Prepayments	22	20
Non-current tax recoverable	28	30
Derivative financial instruments	17	50
Other non-current receivables	130	172

d. Financial instruments (Note 15)

At 31 December 2024, £1,853 million (2023: £1,836 million) of the current and non-current

receivables totalling £2,221 million (2023: £2,234 million) are financial assets. These mainly related

to amounts owed from customers or government bodies and are typically non-interest bearing.

Amounts that are not financial assets are mostly prepayments, recoverable sales tax and employee

benefit assets.

Notes to the Financial Statements continued

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Notes to the Financial Statements continued

15 Financial Instruments and Financial Risk Management

Financial instruments by category

				At 31 December 2024					At 31 December 2023
					Fair value					Fair value
			Derivatives	Fair value through other				Derivatives	Fair value through other
		Amortised	used for	through profit	comprehensive	Carrying	Amortised	used for	through profit	comprehensive	Carrying
		cost	hedging	or loss	income	value total	cost	hedging	or loss	income	value total
	Note	£m	£m	£m	£m	£m	£m	£m	£m	£m	£m
Assets as per the Balance Sheet
Current and non-current trade and other receivables	14d	1,853	–	–	–	1,853	1,836	–	–	–	1,836
Derivative financial instruments
FX forward exchange contracts	17	–	30	31	–	61	–	48	16	–	64
Cross currency interest rate swaps	17	–	17	–	–	17	–	50	–	–	50
Equity instruments	11	–	–	57	51	108	–	–	45	69	114
Cash and cash equivalents	16	880	–	–	–	880	1,387	–	–	–	1,387
Liabilities as per the Balance Sheet
Current and non-current trade and other payables	21	5,050	–	–	–	5,050	5,276	–	–	–	5,276
Share repurchase liability	24	477	–	–	–	477	296	–	–	–	296
Borrowings (loans, overdrafts and other non-current
borrowings) 1	17	157	–	–	–	157	43	–	–	–	43
Lease liabilities	19	300	–	–	–	300	327	–	–	–	327
Senior notes	17	1,307	–	–	–	1,307	1,292	–	–	–	1,292
Bonds	17	6,302	–	–	–	6,302	6,875	–	–	–	6,875
Commercial paper	17	592	–	–	–	592	–	–	–	–	–
Derivative financial instruments
FX forward exchange contracts	17	–	19	19	–	38	–	20	58	–	78
Interest rate swaps	17	–	158	–	–	158	–	115	–	–	115
Cross currency interest rate swaps	17	–	15	–	–	15	–	72	–	–	72

1 The categories in this disclosure are determined by IFRS 9. Lease liabilities are outside the scope of IFRS 9, but they remain within the scope of IFRS 7, and therefore have been shown separately

The fair value measurement hierarchy levels have been defined as follows:

• Quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1)

• Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices) (level 2). If all significant inputs

required to fair value an instrument are observable, the instrument is included in level 2

• Inputs for the asset or liability that are not based on observable market data (i.e. unobservable inputs) (level 3)

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15 Financial Instruments and Financial Risk Management continued

The following table categorises the Group’s financial assets and liabilities held at fair value by the

valuation methodology applied in determining their fair value.

			At 31 December 2024				At 31 December 2023
	Level 1	Level 2	Level 3	Total	Level 1	Level 2	Level 3	Total
	£m	£m	£m	£m	£m	£m	£m	£m
Assets as per the Balance Sheet
Derivative financial
instruments
FX forward exchange
contracts	–	61	–	61	–	64	–	64
Cross currency interest
rate swaps	–	17	–	17	–	50	–	50
Equity instruments	25	57	26	108	22	45	47	114
Liabilities as per the Balance Sheet
Derivative financial
instruments
FX forward exchange
contracts	–	38	–	38	–	78	–	78
Interest rate swaps	–	158	–	158	–	115	–	115
Cross currency interest
rate swaps	–	15	–	15	–	72	–	72

The fair value of forward foreign exchange contracts was determined using forward exchange

rates derived from market sourced data at the Balance Sheet date, with the resulting value

discounted back to present value (level 2 classification). The fair value of the interest rate swap

contracts and the cross currency interest rate swaps was calculated using discounted future cash

flows at floating market rates (level 2 classification).

The fair value of equity instruments at 31 December 2024 and 31 December 2023 was determined

using quoted share price information (level 1 classification), other observable market data (level 2

classification) and other non-market information (level 3 classification).

Except for the bonds and senior notes, the carrying values of other financial assets and liabilities

held at amortised cost approximate their fair values. The fair value of the bonds as at 31 December

2024 is a liability of £6,189 million (2023: £6,788 million) and the fair value of the senior notes as at

31 December 2024 is a liability of £1,191 million (2023: £1,203 million). The fair value of the bonds and

senior notes was derived using quoted market rates in an active market (level 1 classification).

Offsetting financial assets and financial liabilities

The majority of the Group’s derivative agreements are entered into under International Swaps and

Derivatives Association (ISDA) master netting agreements. In certain circumstances – for example,

when a credit event such as a default occurs – all outstanding transactions under the agreement

are terminated, the termination value is assessed and only a single net amount is payable in

settlement of all transactions.

The ISDA agreements do not meet the criteria for offsetting in the statement of financial position.

This is because the Group does not currently have any legally enforceable right to offset

recognised amounts, because the right to offset is enforceable only on the occurrence of future

events such as a default event.

The following table sets out the carrying amounts of recognised financial instruments that are

subject to the above agreements.

	Gross amounts of
	recognised financial	Related financial
	assets/liabilities in	instruments that
	the Balance Sheet	are not offset	Net amount
At 31 December 2024	£m	£m	£m
Financial assets
Derivative financial instruments	77	(31)	46
Financial liabilities
Derivative financial instruments	(211)	31	(180)

	Gross amounts of
	recognised financial	Related financial
	assets/liabilities in	instruments that
	the Balance Sheet	are not offset	Net amount
At 31 December 2023	£m	£m	£m
Financial assets
Derivative financial instruments	114	(39)	75
Financial liabilities
Derivative financial instruments	(265)	39	(226)

Notes to the Financial Statements continued

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Notes to the Financial Statements continued

15 Financial Instruments and Financial Risk Management continued

Financial risk management

The Group’s multinational operations expose it to a variety of financial risks that include the effects

of changes in foreign currency exchange rates (foreign exchange risk), market prices, interest

rates, credit risks and liquidity. The Group has in place a risk management programme that uses

foreign currency financial instruments, including debt, and other instruments, to limit the impact of

these risks on the financial performance of the Group.

The Group’s financing and financial risk management activities are centralised into Group Treasury

(GT) to achieve benefits of scale and control. GT manages financial exposures of the Group

centrally in a manner consistent with underlying business risks. GT manages only those risks and

flows generated by the underlying commercial operations; speculative transactions are not

undertaken.

The Board of Directors reviews and agrees policies, guidelines and authority levels for all areas of

Treasury activity and individually approves significant activities. The GT function is subject to

periodic independent reviews and audits, both internal and external.

1. Market risk

(a) Currency risk

The Group operates internationally and enters into transactions in many currencies and as such is

exposed to foreign exchange risk arising from various currency exposures. Foreign exchange risk

arises from future commercial transactions, recognised assets and liabilities and net investments

in foreign operations.

The Group’s policy is to align interest costs and operating profit of its major currencies in order to

provide some protection against the translation exposure on foreign currency profits after tax. The

Group may undertake borrowings and other hedging methods in the currencies of the countries

where most of its assets are located.

It is the Group’s policy to monitor and, where appropriate, hedge its foreign currency transaction

exposure. These transaction exposures arise mainly from foreign currency receipts and payments

for goods and services and from the remittances of foreign currency dividends and loans. Where

the Group enters into hedges and applies hedge accounting, hedges are documented and tested

for effectiveness on an ongoing basis with any ineffectiveness recorded in the Income Statement.

The local business units enter into forward foreign exchange contracts with GT to manage these

exposures where practical and allowed by local regulations. GT matches the Group exposures, and

hedges the position where possible, using spot and forward foreign currency exchange contracts.

The Group’s strategy is to minimise Income Statement volatility by monitoring foreign currency

balances, external financing, and external hedging arrangements. The Group’s hedging profile is

regularly reviewed to ensure it is appropriate and to mitigate these risks as far as possible.

The notional principal amount of the outstanding forward foreign exchange contracts at 31

December 2024 was £7,565 million receivable (2023: £8,426 million) and £7,546 million payable

(2023: £8,440 million).

These forward foreign exchange contracts are mainly expected to mature over the period

January 2025 to December 2025 (2023: January 2024 to December 2024).

Cash flow hedging is applied with the economic relationship and expected effectiveness being

assessed at inception, with any ineffectiveness recognised in the Income Statement. The

ineffective portion recognised in the Income Statement arising from cash flow hedges is

immaterial (2023: immaterial).

Gains and losses recognised in other comprehensive income and the hedging reserve on forward

exchange contracts in 2024 of £38 million gain, net of tax (2023: £39 million loss, net of tax) are

recognised in the Income Statement in the periods in which the hedged forecast transaction

affects the Income Statement.

At 31 December 2024, the Group had forward contracts used for cash flow hedging with total fair

value of £14 million asset (2023: £1 million liability). These contracts are denominated in a diverse

range of currency pairings, where a fluctuation of 5% in any one of the contract pairings, with all

others remaining constant, would have a maximum effect of £4 million (2023: £4 million) on

shareholder equity, until the point at which the contracts mature and the forecast transaction

occurs. The four largest contract pairings in order of nominal value were British pound sterling/

euro, US dollar/Thai baht, euro/Australian dollar and euro/Canadian dollar.

Where the Group is exposed to currency risk on its borrowings, the Group seeks to minimise the

impact of foreign exchange on the Income Statement through placing debt within a net

investment hedge or using financial instruments.

The net gain or loss under these arrangements is recognised in other comprehensive income. The

net effect on other comprehensive income for the year ended 31 December 2024 was a

£85 million gain (2023: £42 million gain). If Sterling weakens by 5% against the US dollar and euro,

the maximum impact on shareholders’ equity due to the net investment hedging on US dollar

forward currency swap contracts and euro bond/forward currency swaps would be £20 million

loss and £96 million loss respectively (2023: £20 million loss and £101 million loss respectively).

In 2020, the Group issued a €850 million bond due in 2026. Concurrent with the issue of the bond,

the Group entered into a €850 million cross currency interest rate swap on similar terms to the

2026 bond to mitigate foreign exchange currency risk, for which hedge accounting has been

applied. Sources of ineffectiveness on this hedge relationship will come from a difference in credit

ratings between the counterparties.

In 2023, the Group issued a €650 million bond due in 2028 and a €750 million bond due in 2033.

Concurrent with the issue of these bonds, the Group also entered into a cross currency interest

rate swap on similar terms to the 2028 bond and the 2033 bond, to mitigate foreign exchange

currency risk, for which hedge accounting has been applied. Sources of ineffectiveness on these

hedge relationships will come from a difference in credit ratings between the counterparties and

modifications to the terms of either hedged item or instrument. At 31 December 2024 no material

ineffectiveness (2023: no material ineffectiveness) has been recognised in the Income Statement.

The interest rate element of the swap is discussed in interest rate risk below.

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182

15 Financial Instruments and Financial Risk Management continued

Financial risk management continued

1. Market risk continued

(a) Currency risk continued

The remaining major monetary financial instruments (liquid assets, receivables, interest and

non-interest-bearing liabilities) are either denominated in the functional currency of the Group

or the functional currency of the local entity.

In 2024, the Group issued two new bonds comprising of a €900 million and £300 million bonds due

to expire in June 2029 and December 2032 respectively. The bonds were issued as part of

refinancing repayment of the $2 billion bond in June 2024. The bonds carry fixed interest rates of

3.625% and 5.000% respectively. No hedging instruments were issued in relation to these bonds.

The gains and losses from fair value movements on derivatives held at fair value through profit or

loss, recognised in the Income Statement in 2024, was a £63 million loss (2023: £109 million loss).

These derivatives are used to hedge foreign exchange gains and losses on non-sterling financing

assets and financing liabilities between the Group’s treasury company and fellow Group subsidiaries.

(b) Cost inflation risk

Due to the nature of its business the Group is exposed to commodity, freight and other inflation

risks. Short-term volatility in pricing of these products is mitigated through medium-term

contracts, inventories of key materials and financial hedging. Over the medium and long term,

the Group mitigates the impact of inflation through: implementing pricing and revenue growth

management; identifying productivity and efficiency opportunities; and improving sales mix.

The Group has both interest-bearing and non-interest bearing assets and liabilities. The Group

monitors its interest income and expense rate exposure on a regular basis. The Group sets its

desired level of fixed and floating rate exposure as part of its interest risk management strategy.

The mix of fixed and floating exposure on interest-bearing assets or liabilities is managed by

using a mixture of fixed and floating rate deposits, borrowings and interest rate derivatives.

In 2020 the Group issued two €850 million bonds due in 2026 and 2030. In order to maintain a level

of floating rate debt in line with the Group’s interest management strategy the Group entered into

a €850 million cross currency interest rate swap on similar terms to the 2026 bond and an interest

rate swap on the coupon payments due on the 2030 bond. The accounting for the foreign

exchange element of the cross currency swap is described above. The interest rate element

swaps the fixed coupon payments on the bond for floating rate (the cross currency interest rate

swap with reference to adjusted reference rates following GBP LIBOR cessation, and the interest

rate swap with reference to EURIBOR). The interest rate swaps have been placed into a fair value

hedge relationship with the related bonds.

During 2023 , the Group entered into a £747 million nominal value floating-to-fixed interest rate

swap due in 2026 to reduce the level of exposure to floating interest rates. This interest rate

swap has been designated as a cash flow hedge against the payments made on the floating

leg of the Group’s existing cross currency interest rate swap. Sources of ineffectiveness on this

hedge relationship may come from a difference in credit ratings between the counterparties

and modifications to the terms of either the hedged item or the hedging instrument.

At 31 December 2024 no material ineffectiveness has been included in the Income Statement.

In 2023 the Group issued a €650 million bond due in 2028 and a €750 million bond due in 2033. In

order to maintain a level of fixed or floating rate debt in line with the Group’s interest management

strategy the Group entered into €650 million of cross currency interest rate swaps on similar terms

to the 2028 bond and €750 million cross currency interest rate swaps on similar terms to the 2033

bond. The accounting for the foreign exchange and interest rate element of the cross currency

swaps have been described above.

On the €650 million bond due in 2028, the cross currency interest rate swaps the fixed euro

coupon payments on the bond for fixed GBP payments. On the €750 million bond due in 2033,

the cross currency interest rate swap swaps the fixed coupon payments on the bond for a GBP

floating rate (with reference to SONIA) payments. The €650 million cross currency interest rate

swap has been placed into a cash flow hedge relationship with the bond due in 2028, and the

€750 million has been placed into a fair value hedge relationship with the bond due in 2033.

Sources of ineffectiveness on these hedge relationships will come from a difference in credit

ratings between the counterparties and modifications to the terms of either the hedged item

or the hedging instrument. At 31 December 2024 no material ineffectiveness (2023: no material

ineffectiveness) has been recognised in the Income Statement.

Various scenarios are simulated taking into consideration refinancing, renewal of existing positions,

alternative financing and hedging. Based on these scenarios, the Group calculates the impact on

the Income Statement of a defined interest rate shift. For each simulation, the same interest rate

shift is used for all currencies, calculated on a full-year and pre-tax basis.

The scenarios are only run for liabilities that represent the major interest-bearing positions. Based

on the simulations performed, the impact on the Income Statement of a 50 basis-point shift

in interest rates would be a maximum increase of £10 million (2023: £11 million) or decrease of

£10 million (2023: £11 million), respectively for the liabilities covered. The simulation is done on a

periodic basis to verify that the maximum loss simulated is within the limit given by management.

There is also an impact on the Income Statement of a 50 basis-point shift of £4 million (2023: £4

million) on an asset that are inherently linked to a liability included above, resulting in a net impact

of £6 million.

Notes to the Financial Statements continued

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Notes to the Financial Statements continued

15 Financial Instruments and Financial Risk Management continued

Financial risk management continued

2. Credit risk

The Group has no significant concentrations of credit risk. Credit risk arises from cash and cash

equivalents, derivative financial instruments, deposits with banks and financial institutions, as well

as credit exposures to customers. The assessment of lifetime expected credit losses relating to

trade and other receivables is detailed in Note 14. Financial institution counterparties are subject to

approval under the Group’s counterparty risk policy and such approval is limited to financial

institutions with a BBB rating or above. The Group uses BBB and higher rated counterparties to

manage risk and only uses sub-BBB rated counterparties by exception. The amount of exposure to

any individual counterparty is subject to a limit defined within the counterparty risk policy, which is

reassessed annually by the Board of Directors. Derivative financial instruments are only traded with

counterparties approved in accordance with the approved policy. Derivative risk is measured using

a risk weighting method.

The Group has counterparty risk from asset positions held with financial institutions. This is

comprised of short-term investments, cash and cash equivalents and derivative positions. For risk

management purposes the Group assesses the exposure to major financial institutions by looking

at the deposits, cash and cash equivalents and a percentage of the nominal amount of derivative

contracts taking into account the time to maturity and the nature of the product. The following

table summarises the Group’s assessment of its exposure.

	2024		2023
	Limit	Exposure	Limit	Exposure
Credit ratings	£m	£m	£m	£m
AAA+ to AAA-	3,156	26	3,156	292
AA+ to AA-	550	196	275	84
A+ to A-	3,750	1,118	4,000	1,568
BBB+ and below	205	116	125	84

3. Liquidity risk

Liquidity risk is the risk that the Group cannot repay financial liabilities as and when they fall due.

The Group’s liquidity risk is concentrated towards bond and senior note principal repayments due

between 2025 and 2044.

The Group has various borrowing facilities available to it. The Group has bilateral and syndicated

credit facilities provided by high-quality international banks which include a financial covenant and

which is not expected to restrict the Group’s future operations.

At the end of 2024, the Group had long-term debt excluding lease liabilities of £7,014 million

(2023: £6,609 million), of which £6,325 million (2023: £6,010 million) is repayable in more than two

years. In addition, the Group has committed borrowing facilities totalling £4,450 million

(2023: £4,500 million), of which £3,500 million (2023: £4,450 million) expires after more than two

years. The committed borrowing facilities, together with central cash and investments, are

considered sufficient to meet the Group’s projected cash requirements.

All borrowing facilities are at floating rates of interest.

The facilities have been arranged to cover general corporate purposes, including support for

commercial paper issuance. All facilities incur commitment fees at market rates.

The Group’s borrowing limit at 31 December 2024 calculated in accordance with the Articles of

Association was £20,097 million (2023: £25,344 million).

The following tables analyse the Group’s financial liabilities and derivatives which will be settled on

a net basis into relevant maturity groupings based on the remaining period at the Balance Sheet

date to the contractual maturity date. The amounts disclosed in the table are the contractual

undiscounted cash flows which have been calculated using spot rates and interest rates at the

relevant Balance Sheet date, including interest to be paid.

		Less than	Between	Between	Over
	Total	1 year	1 and 2 years	2 and 5 years	5 years
At 31 December 2024	£m	£m	£m	£m	£m
Bonds	(7,450)	(179)	(882)	(3,640)	(2,749)
Commercial paper	(594)	(594)
Senior notes	(1,834)	(656)	(33)	(98)	(1,047)
Trade and other payables	(5,207)	(5,118)	(89)	–	–
Share repurchase liability	(477)	(477)	–	–	–

		Less than	Between	Between	Over
	Total	1 year	1 and 2 years	2 and 5 years	5 years
At 31 December 2023	£m	£m	£m	£m	£m
Bonds	(7,983)	(1,731)	(138)	(3,586)	(2,528)
Senior notes	(1,858)	(56)	(645)	(96)	(1,061)
Trade and other payables	(5,276)	(5,208)	(68)	–	–
Share repurchase liability	(296)	(296)	–	–	–

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184

15 Financial Instruments and Financial Risk Management continued

Financial risk management continued

3. Liquidity risk continued

The table below analyses the Group’s derivative financial instruments which will be settled on a

gross basis into relevant maturity groupings based on the remaining period between the Balance

Sheet date and the contractual maturity date. The amounts disclosed in the table are the

contractual undiscounted cash flows which have been calculated using spot rates at the relevant

Balance Sheet date.

	Less than		Between	Between	Over
	1 year		1 and 2 years	2 and 5 years	5 years
At 31 December 2024	£m		£m	£m	£m
FX forward exchange contracts
Outflow	(7,527)		(19)	–	–
Inflow	7,	54 6	19	–	–
Cross currency interest rate swaps
Outflow		(111)	(88)	(1,472)	(776)
Inflow		46	46	1,352	717
Interest rate swaps
Outflow		(58)	(43)	(86)	(14)
Inflow		40	22	16	5

	Less than	Between	Between	Over
	1 year	1 and 2 years	2 and 5 years	5 years
At 31 December 2023	£m	£m	£m	£m
FX forward exchange contracts
Outflow	(8,428)	(6)	(6)	–
Inflow	8,414	6	6	–
Cross currency interest rate swaps
Outflow	(116)	(116)	(1,534)	(824)
Inflow	48	48	1,440	776
Interest rate swaps
Outflow	(67)	(67)	(126)	(55)
Inflow	44	44	35	11

GT monitors forecasts of the Group’s liquidity requirements to ensure it has sufficient cash to meet

operational needs while maintaining sufficient headroom on its undrawn committed borrowing

facilities. Funds over and above those required for short-term working capital purposes by the

local businesses are generally remitted to GT. The Group uses the remittances to settle obligations,

repay borrowings, or, in the event of a surplus, invest in short-term instruments issued by

institutions with a BBB rating or above.

4. Capital management

		2024	2023
	Note	£m	£m
Cash and cash equivalents including overdrafts		879	1,380
Financing liabilities	17	(8,793)	(8,670)
Net debt		7,914	7,290
Total equity		6,720	8,469
		14,634	15,759

The Group considers capital to be net debt plus total equity. Net debt is calculated as total

financing liabilities less cash and cash equivalents and short-term deposits. Total equity includes

share capital, reserves and retained earnings as shown in the Group Balance Sheet.

The objectives for managing capital are to safeguard the Group’s ability to continue as a going

concern, in order to provide returns for shareholders and benefits for other stakeholders and to

maintain an efficient capital structure to optimise the cost of capital.

In 2024, the Group provided returns to shareholders in the form of dividends and through buying

back shares. Refer to Note 24 for further details.

The Group monitors net debt which at year end was £7,914 million (2023: £7,290 million). In 2023

the Group began a share buyback programme funded by surplus free cash flow (see Note 24)

in line with the Group’s capital allocation policy of returning surplus cash to shareholders.

Supply chain finance

The Group participates in a supply chain finance programme (SCF) under which certain suppliers

to the Group are able to access an SCF arrangement that enables them to fund their working

capital. The principal purpose of this programme is to facilitate efficient payment processing and

enable the willing suppliers to sell their receivables due from the Group to a bank before their due

date. The Group does not incur any additional interest towards the bank on the amounts due to

the suppliers.

Notes to the Financial Statements continued

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185

Notes to the Financial Statements continued

15 Financial Instruments and Financial Risk Management continued

Supply chain finance continued

The balance payable is recorded within trade payables on the Balance Sheet and all cash flows

associated with the programme are included within operating cash flows as they continue to

be part of the normal operating cycle of the Group and their principal nature remains operating,

being payments for the purchase of goods and services. Security or guarantees have not been

provided by Group.

	End of reporting period
	31.12.2024
	£m
Carrying amount of financial liabilities
Presented in trade and other payables 1 :	437
– of which suppliers have received payment from finance provider	347
Range of payment due dates (Goods and Freight Providers) 2
Liabilities that are part of the arrangements	Cost of inventories: 90 Days - 210 Days
	Freight: 60 Days - 210 Days
	Net Operating Expenses: 30 Days - 210 Days
Comparable trade payables that are not part	Cost of inventories: 30 Days - 180 Days
of the arrangements 2	Freight: 30 Days - 150 Days
	Net Operating Expenses: 0 Days - 150 Days
Non-cash changes
There were no material business combinations or foreign exchange differences in either period.
There were non-cash transfers from trade payables to finance payables of £nil in 2024.

1 The carrying amount of financial liabilities presented in trade and other payables as at 31 December 2024 is £437m

(1 January 2024 £396m). The first-year application exemptions have been utilised for the disclosure of opening balances

2 Comparable payables have been identified based on the type of product supplied and legal entity who purchases the goods

or services

16 Cash and Cash Equivalents

	2024	2023
	£m	£m
Cash at bank and in hand	504	647
Short-term bank deposits	376	740
Cash and cash equivalents	880	1,387

The Group operates in a number of territories where there are either foreign currency exchange

restrictions, or where it is difficult for the Group to extract cash readily and easily in the short-term.

As a result, £120 million (2023: £229 million) of cash included in cash and cash equivalents is

restricted for use by the Group, yet available for use in the relevant subsidiary’s day-to-day

operations.

17 Financial Liabilities – Borrowings

		2024	2023
	Note	£m	£m
Current
Bank loans and overdrafts 1		148	30
Commercial paper		592	–
Bonds		–	1,571
Senior notes		604	–
Lease liabilities	19	79	78
Total short-term borrowings		1,423	1,679
Non-current
Bonds		6,302	5,304
Senior notes		703	1,292
Other non-current borrowings		9	13
Lease liabilities	19	221	249
Total long-term borrowings		7,235	6,858
Total borrowings		8,658	8,537
Derivative financial instruments – as shown below Less overdrafts presented in cash and cash equivalents in		136	140
the Cash Flow Statement		(1)	(7)
Total financing liabilities		8,793	8,670

1 Bank loans are denominated in a number of currencies: all are unsecured and bear interest based on market short-term

interest rates

The Group uses derivative financial instruments to hedge certain elements of interest rate and

exchange risk on its financing liabilities. The split between these items and other derivatives on

the Balance Sheet is shown below:

		Assets		Liabilities
2024 (£m)	Current	Non-current 1	Current	Non-current
Derivative financial instruments (financing
liabilities)	32	14	(25)	(157)
Derivative financial instruments
(non-financing liabilities)	29	3	(13)	(16)
At 31 December 2024	61	17	(38)	(173)

1 Included within other non-current receivables on the Balance Sheet

Strategic report Governance Financial statements Other information Reckitt Annual Report and Accounts 2024

186

17 Financial Liabilities – Borrowings continued

		Assets		Liabilities
2023 (£m)	Current	Non-current 1	Current	Non-current
Derivative financial instruments (financing
liabilities)	45	50	(58)	(177)
Derivative financial instruments
(non-financing liabilities)	19	–	(20)	(10)
At 31 December 2023	64	50	(78)	(187)

1 Included within other non-current receivables on the Balance Sheet

	2024	2023
Reconciliation of movement in financing liabilities to the Cash Flow Statement	£m	£m
At 1 January	8,670	9,140
Proceeds from borrowings	1,768	1,638
Repayment of borrowings	(1,687)	(1,855)
Other financing cash flows	(47)	(84)
Total financing cash flows	34	(301)
New lease liabilities	70	44
Exchange, fair value and other movements	19	(213)
Total non-cash financing items	89	(169)
At 31 December	8,793	8,670

	2024	2023
Maturity of borrowings (excluding lease liabilities)	£m	£m
Bank loans and overdrafts repayable:
Within one year or on demand	148	30
Other borrowings repayable:
Within one year:
Commercial paper	592	–
Bonds	–	1,571
Senior notes	604	–
After one year and in less than five years:
Bonds	3,949	3,205
Senior notes	–	599
After five years or longer:
Bonds	2,353	2,099
Senior notes	703	693
Other non-current borrowings	9	13
	8,210	8,180
Gross borrowings (unsecured)	8,358	8,210

18 Provisions for Liabilities and Charges

	Legal	Other	Total
	provisions	provisions	provisions
	£m	£m	£m
At 1 January 2023	221	65	286
Charged to the Income Statement	7	14	21
Utilised during the year	(63)	(1)	(64)
Released to the Income Statement	(17)	(11)	(28)
Reclassification	1	(2)	(1)
Exchange adjustments	(12)	(3)	(15)
At 31 December 2023	137	62	199
Charged to the Income Statement	23	18	41
Utilised during the year	(7)	–	(7)
Released to the Income Statement	(36)	(17)	(53)
Reclassification	–	–	–
Exchange adjustments	(5)	(1)	(6)
At 31 December 2024	112	62	174

Provisions have been analysed between current and non-current as follows:

	2024	2023
	£m	£m
Current	112	142
Non-current	62	57
Total	174	199

Provisions are recognised when the Group has a present or constructive obligation as a result of

past events, it is more likely than not that there will be an outflow of resources to settle that

obligation, and the amount can be reliably estimated. As at 31 December 2024, the Group

recognised legal provisions of £112 million (2023: £137 million) in relation to a number of historical

regulatory and other matters in various jurisdictions.

These provisions relate to matters where the Group is currently involved with, or potentially will be

involved in, litigation. The provision represents the Group’s best estimate of the likely settlement.

Due to the uncertain nature of the resolution of majority of these matters, £82 million (2023: £109

million) is recorded as a current provision as it is possible the matter could be settled in the next 12

months, however, it is possible that they may not be. Legal provisions include £30 million (2023: £27

million) relating to the Humidifier Sanitiser (HS) issue in Korea (see Note 20).

Other provisions include environmental and other obligations throughout the Group, the majority of

which are expected to be utilised within five years.

Notes to the Financial Statements continued

Strategic report Governance Financial statements Other information Reckitt Annual Report and Accounts 2024

187

Notes to the Financial Statements continued

19 Lease Liabilities

	2024	2023
Maturity analysis – contractual undiscounted cash flows	£m	£m
Within one year	87	81
Later than one and less than five years	172	199
After five years	99	103
Total undiscounted lease liabilities at 31 December	358	383
Lease liabilities included in the statement of financial position
at 31 December	300	327
Current	79	78
Non-current	221	249

Interest charged on lease liabilities amounted to £13 million (2023: £14 million).

20 Contingent Liabilities and Assets

Humidifier Sanitiser issue

The Humidifier Sanitiser (HS) issue in South Korea was a tragic event. The Group continues to make

both public and personal apologies to the victims who have suffered lung injury as a result of the

Oxy HS product and the role that the Oxy HS product played in the issue.

As previously reported, the South Korean government had designated a number of diseases

as HS injuries, in addition to the HS lung injury for which Reckitt Korea’s compensation plan was

established. These include asthma, toxic hepatitis, child interstitial lung disease (ILD), bronchitis,

upper airway disease, pneumonia, skin disease (accompanied by respiratory injuries) and

depression (accompanied by respiratory injuries).

The Korean National Assembly passed a bill on 6 March 2020 to amend the HS law with the main

changes in the amendment relating to: (i) the definition of HS injury (essentially allowing the MOE

to recognise a variety of disease as IRF injury based on individual review of each IRF application);

(ii) the legal presumption of causation (shifting the burden of proof for causation to the defendant

if the plaintiff demonstrates ‘epidemiological correlation’ between HS exposure and their injury),

and (iii) amendments to the fund set up by the government and funded by the government and

HS companies (the Special Relief Fund (SRF), now called the Injury Relief Fund (IRF)) to provide

expanded support payments to HS victims which would cover all elements of court awarded

damages except mental distress, aside from KRW 100 million consolation payments for death

cases, and partial lost income. The Group currently has a provision of £30 million (2023: £27 million)

in relation to the HS issue in South Korea. In addition, there are further potential costs that are not

considered probable and cannot be reliably estimated at the current time. The impact of the HS

law amendments will require further monitoring and analysis, in particular those which will be

subject to court interpretation, such as the new epidemiological correlation standard, any limitation

applied by courts to damage awards, the interest rate applied by individual courts to damage

awards and external factors such as the rate of future IRF applications/recognitions. Accordingly,

it is not possible to make any reliable estimate of liability for individuals recognised by the

government as having HS injuries.

Necrotizing Enterocolitis (NEC)

Product liability actions relating to NEC have been filed against certain Group subsidiary

companies, or against certain Group subsidiary companies and Abbott Laboratories, in state and

federal courts in the United States. The actions allege injuries relating to NEC in preterm infants.

Plaintiffs contend that human milk fortifiers (HMF) and preterm formulas containing bovine-derived

ingredients cause NEC, and that preterm infants should receive a diet of exclusive breast milk. The

Company has denied the material allegations of the claims. It contends that its products provide

critical tools to expert neonatologists for the nutritional management of preterm infants for whom

human milk, by itself, is not available or nutritionally sufficient. The products are used under the

supervision of medical doctors. Any potential costs relating to the product liability actions are not

considered probable and cannot be reliably estimated at the current time. Given the uncertainty

on the number of cases and range of possible results and/or outcomes on each case, the possible

economic outflow cannot be reliably estimated, but may be significant. In 2025 there are currently

two trials scheduled, these are currently expected to take place in H2 2025.

Whitfield Case

On 31 October 2024, a state court jury in the city of St. Louis, Missouri ruled in favour of Mead

Johnson. The case involved a child who was born prematurely, developed NEC and has allegedly

experienced subsequent long-term health issues. Given the verdict, an economic outflow is not

considered probable. The Plaintiff has filed a post-trial motion seeking a new trial.

Watson Case

On 13 March 2024, a state court jury in Belleville, Illinois awarded $60 million to a mother of a child

who was born prematurely and died 25 days later from Necrotizing Enterocolitis (NEC). Reckitt

believe the allegations from the plaintiff’s lawyers in this case were not supported by the science

or the experts in the medical community. Reckitt are appealing the verdict, and at this time,

an economic outflow is not considered probable. There is a possible outcome that may be

unfavourable, however, the Group expects to benefit from relevant product liability insurance

subject to limits and deductibles that the Group considers to be reasonable.

Phenylephrine

Starting in September 2023, putative class action lawsuits have been filed against the Group

and competitor companies in various United States jurisdictions that generally allege that the

defendants made misrepresentations about the effectiveness of products containing

phenylephrine. In December 2023, the Judicial Panel on Multidistrict Litigation (JPML) transferred all

currently pending federal court cases and any similar, subsequently filed cases to a coordinated

multi-district litigation (MDL) in the Eastern District of New York for pre-trial purposes. In October

2024, a motion to dismiss the lawsuits was granted, dismissing all claims. The plaintiffs are

appealing that ruling. Potential costs relating to these actions are not considered probable and

cannot be reliably estimated at the current time.

Other

From time to time, the Group is involved in discussions in relation to ongoing tax matters in a

number of jurisdictions around the world. Where appropriate, the Directors make provisions based

on their assessment of each case (see Note 7).

Strategic report Governance Financial statements Other information Reckitt Annual Report and Accounts 2024

188

21 Trade and Other Payables

	2024	2023
	£m	£m
Trade payables	2,268	2,194
Other payables	151	118
Forward share purchase liability 1	133	158
Other tax and social security payable	161	163
Interest accrued on tax balances	101	122
Indemnity provisions for disposed businesses	47	48
Accruals	2,430	2,703
Trade and other payables	5,291	5,506

1 Relates to an agreement signed in May 2023 to acquire the remaining interests associated with the Company’s majority owned

activities in mainland China and Hong Kong (RB Manon) from its existing minority shareholders

Included within accruals is £1,074 million (2023: £1,125 million) in respect of amounts payable to

trade customers and government bodies for trade spend.

Other non-current liabilities

	2024	2023
	£m	£m
US employee-related payables	57	45
Indemnity provisions for disposed businesses	2	–
Other	22	22
Other non-current liabilities	81	67

Financial instruments (Note 15)

At 31 December 2024, £5,050 million (2023: £5,276 million) of the current and non-current trade and

other payables totalling £5,372 million (2023: £5,573 million) are financial liabilities. These mainly

relate to amounts owed to suppliers in respect of goods or services and are typically non-interest

bearing. Amounts that are not financial instruments comprise employee-related liabilities, social

security liabilities and accrued interest.

22 Current and Non-current Tax Liabilities

	2024	2023
	£m	£m
Current tax liabilities	602	620
Non-current tax liabilities	–	28
Total current and non-current tax liabilities	602	648

Certain tax positions taken by us are based on industry practice, tax advice and drawing

similarities from our facts and circumstances to those in case law. In particular, international

transfer pricing is an area of taxation that depends heavily on the underlying facts and

circumstances and generally involves a significant degree of judgement.

Tax assets and liabilities are offset where there is a legally enforceable right to do so. Included

within current tax liabilities is an amount of £595 million (2023: £619 million) relating to uncertain tax

positions. Within this, £257 million (2023: £187 million) relates to amounts recognised using the

most likely outcome method, where the resolution of the uncertainty is concentrated on one

binary outcome. There is no individual tax uncertainty calculated with this method that is material

to the Financial Statements.

Also within uncertain tax positions is an amount of £338 million (2023: £432 million) recognised

using the expected value method. The liabilities calculated using this method are not material in

isolation, are individually assessed and cover multiple jurisdictions and issues. Therefore, it is not

meaningful to provide aggregated sensitivity estimates. The sources of estimation uncertainty

underlying this amount are shown in Note 1.

The recognition of uncertain tax positions is reviewed regularly for changes in circumstances and

estimates are updated as potential resolutions for the tax uncertainties are encountered through

specific audits or wider case law. As a result, given the size, possible range of outcomes and

timing of resolution, there is a significant risk of material adjustment to the aggregate carrying

amount of these liabilities within the next financial year.

The disputes underlying the liability recognised in respect of uncertain tax positions may take

several years to resolve (see Note 1). Notwithstanding this, the carrying amount of £595 million

(2023: £619 million) has been presented as a current liability. The associated interest accrued on

uncertain tax positions of £101 million (2023: £122 million) also is presented as a current liability.

23 Pension and Post-Retirement Commitments

Plan details

The Group operates a number of defined benefit and defined contribution pension plans around

the world covering many of its employees. The majority of these plans are funded. The Group’s

most significant pension plan (UK) is set up under Trust and is a separate entity from the Group.

The defined benefits section of this plan closed to accrual from 31 December 2017. Members have

a normal retirement age of 65. Trustees of the plan are appointed by the Group, active members

and pensioner membership, and are responsible for the governance of the plan, including paying

all administrative costs of the defined benefit section and compliance with regulations. The

defined benefit section of the plan is funded by the payment of contributions as required,

following each Triennial Valuation.

The principal UK plan also had a defined contribution section which was closed on 31 March 2024;

from that date, UK employees were moved into a separate master trust arrangement and their

funds within the defined contribution section were transferred over to the master trust in July

2024. For the principal UK plan, a full independent actuarial valuation is carried out on a triennial

basis. The most recent valuation was carried out as at 5 April 2022 and as the plan was in surplus

on its technical provisions funding basis, no contributions are required to be paid by the Group in

2025 (2024: £nil). Funding levels are monitored on an annual basis.

Notes to the Financial Statements continued

Strategic report Governance Financial statements Other information Reckitt Annual Report and Accounts 2024

189

Notes to the Financial Statements continued

23 Pension and Post-Retirement Commitments continued

Plan details continued

The Group continues to monitor the impact of UK High Court rulings clarifying the requirements to

equalise the Guaranteed Minimum Pension element of benefits for men and women within the UK

Pension schemes from Guaranteed Minimum Pension accrued from post 17 May 1990 pensionable

service. A method has been agreed with the pension trustees from all defined benefit schemes

in the UK. Benefit changes and back payments have been made to members of one of the smaller UK

schemes, with work continuing on the other schemes to calculate the required adjustments to benefits.

The Group also operates a number of other post-retirement plans in certain countries. The two

major plans are the US Retiree Health Care Plan and the Mead Johnson & Company, LLC Medical Plan

(together, the US (Medical) plans). In the US Retiree Health Care Plan, salaried participants become

eligible for retiree healthcare benefits after they reach a combined ‘age and years of service rendered’

figure of 70, although the age must be a minimum of 55. This plan closed to new members in 2009. In

the Mead Johnson & Company, LLC Medical Plan, acquired as part of the acquisition of MJN on 15 June

2017, participants become eligible for retiree healthcare benefits if they leave employment after the

age of 65, leave after the age of 55 and have completed 10 years of service, or have their employment

involuntarily terminated after the age of 55. A Benefits Committee is appointed by the Group for both

of these plans, responsible for the governance of the US plans, including paying all administrative costs

and compliance with regulations. Both of these plans are unfunded. For the US (Medical) plans, a full

independent actuarial valuation is carried out on an annual basis. The most recent valuation was

carried out on 1 January 2024. For both of these plans, funding levels are monitored on an annual

basis with contributions made equal to the claims made each year. It is expected that the

combined contributions in 2025 will be £6 million (2024: £8 million). For the purpose of IAS 19, the

projected unit valuation method was used for the UK and US plans, as per the principal UK plan

triennial valuation results (at 5 April 2022) and the US (Medical) plan annual valuations to 31

December 2024. For the UK plans, the weighted average duration of the deferred benefit

obligation is 11.3 years (2023: 12.4 years). The decrease from the prior year has been driven by rises

in bond yields, changes to demographic assumptions, and an ageing scheme population.

Significant actuarial assumptions

The significant actuarial assumptions used in determining the Group’s defined benefit obligation

for the UK and US (Medical) plans as at 31 December were:

		2024	2023
	UK	US (Medical)	UK	US (Medical)
	%	%	%	%
Rate of increase in pensionable salaries	N/A	–	N/A	–
Rate of increase in deferred pensions
during deferment	2.9	–	2.8	–
Rate of increase in pension payments	3.2	–	3.1	–
Discount rate	5.6	5.4	4.7	4.9
Inflation assumption – RPI	3.3	–	3.2	–
Annual medical cost inflation	–	5.0-7.0	–	5.0-8.0

Assumptions regarding future mortality experience are set in accordance with published statistics

and experience in each territory. The expected lifetime of a participant aged 60 and the expected

lifetime of a participant who will be aged 60 in 15 years (20 years in the US) are detailed below:

	2024		2023
	UK years	US years	UK years	US years
Number of years a current pensioner
is expected to live beyond 60:
Male	27.0	25.1	27.2	25.3
Female	28.6	27.3	28.8	27.4
Number of years a future pensioner
is expected to live beyond 60:
Male	28.3	26.8	28.4	27.0
Female	29.9	28.9	30.0	28.9

For the principal UK plan, the mortality assumptions were based on the standard SAPS mortality table

3NMA for males (scaled by 98%) and table 3NFA for females (scaled by 117%). Allowance is made for

future improvements in mortality by adopting the CMI’s published 2023 improvement tables with a

long-term improvement trend of 1.5% per annum from 2013 onwards, an initial addition to mortality

improvements of 0.25% pa, the core period smoothing parameter of 7.0, and default weightings of

0% / 0% / 15% / 15% applied to 2020 / 2021 / 2022 / 2023 calendar year data, reflecting the extent to

which high levels of mortality experienced since 2020 as a result of the COVID-19 pandemic may be

expected to reoccur in the future. For the US plan the mortality assumptions were determined using

the Pre-2012 Total Dataset and projected with Mortality Improvement Scale MP-2021.

Amounts recognised on the Balance Sheet

The amounts recognised on the Balance Sheet are as follows:

	2024	2023
	£m	£m
Balance Sheet liability for:
US (Medical)	(64)	(73)
Other	(171)	(160)
Liability on Balance Sheet	(235)	(233)
Balance Sheet assets for:
UK	214	206
Other	55	64
Asset on Balance Sheet	269	270
Net pension asset	34	37

Strategic report Governance Financial statements Other information Reckitt Annual Report and Accounts 2024

190

23 Pension and Post-Retirement Commitments continued

Amounts recognised on the Balance Sheet continued

The UK surplus of £214 million (2023: £206 million) relates mainly to the Reckitt Benckiser Pension

Fund. This surplus has been recognised as the Group has concluded it has an unconditional right to

a refund of any surplus once all member benefits have been paid. The Group’s judgement is based

on legal advice that the Trustees would be unable to unconditionally wind up the plan or enhance

members’ benefits without the Group’s consent.

The funded and unfunded amounts recognised on the Balance Sheet are determined as follows:

		2024				2023
		US				US
	UK	(Medical)	Other	Total	UK	(Medical)	Other	Total
	£m	£m	£m	£m	£m	£m	£m	£m
Present value of funded
obligations	(853)	–	(410)	(1,263)	(969)	–	(400)	(1,369)
Fair value of plan assets	1,070	–	419	1,489	1,178	–	443	1,621
Surplus of funded plans	217	–	9	226	209	–	43	252
Present value of unfunded obligations	–	(64)	(125)	(189)	–	(73)	(139)	(212)
Irrecoverable surplus	(3)	–	–	(3)	(3)	–	–	(3)
Net pension surplus/
(liability)	214	(64)	(116)	34	206	(73)	(96)	37

Group plan assets are comprised as follows:

		2024				2023
		US				US
	UK	(Medical)	Other	Total	UK	(Medical)	Other	Total
	£m	£m	£m	£m	£m	£m	£m	£m
Equities	68	–	97	165	60	–	99	159
Government bonds	123	–	74	197	136	–	108	244
Corporate bonds	289	–	168	457	290	–	150	440
Real estate/property –
unquoted	8	–	6	14	28	–	11	39
Insurance contracts	249	–	–	249	273	–	–	273
Other assets – unquoted	333	–	74	407	391	–	75	466
Fair value of plan assets	1,070	–	419	1,489	1,178	–	443	1,621

In 2020 and 2021, the Trustees of three of the UK pension plans entered into annuity buy-in

agreements which cover, in aggregate, £249 million of pension liabilities valued under IAS 19 at 31

December 2024 (£273 million of pension liabilities valued under IAS 19 at 31 December 2023). The

agreements involved the purchase of bulk annuity policies under which the insurer will pay the UK

pension funds amounts equivalent to the benefits payable to members. These purchases were

conducted by the trustees to ensure the pension fund had an asset that would match its obligation

to members. The policies are valued in accordance with IAS 19 by the plans’ actuary such that the

fair value on the annuity policies is deemed to be the present value of the related obligation

measured using the assumptions underpinning the valuation of the defined benefit obligation. The

pension liabilities remain with, and the matching annuity policies are held within, the UK pension

funds. As this was an investment decision by the trustees, the immaterial reduction in the valuation

of plan assets (due to the difference between the purchase price of the annuity policy and the

accounting value of the buy-in asset) arising on each buy-in was recorded within other

comprehensive income. The Trustees have not entered any such buy-in agreements in the years

2022 to 2024.

At 31 December 2024 the Group has not committed to any buy-out arrangements in respect of any

of the UK pension schemes.

Included in other assets are £273 million (2023: £319 million) relating to liability driven investment

funds. This is a bespoke pooled investment vehicle, a unit linked insurance policy fund (ULIP) with

underlying listed bonds, equities and structured notes. The fair value of the vehicle is provided by

the fund manager based on the underlying value of the securities held within the vehicle. The

trustees purchased these investments in 2021 to lower risk within the portfolio without reducing

potential returns. These investments have a low leverage percentage and sufficient capital

collateral in place. The remaining other assets are cash.

The present value of obligations for the combined UK plans and the US (Medical) plans at last

valuation date is attributable to participants as follows:

	2024		2023
	UK	US (Medical)	UK	US (Medical)
	£m	£m	£m	£m
Active participants	–	(14)	(1)	(19)
Participants with deferred benefits	(286)	(1)	(334)	(1)
Participants receiving benefits	(567)	(49)	(634)	(53)
Present value of obligation	(853)	(64)	(969)	(73)

Notes to the Financial Statements continued

Strategic report Governance Financial statements Other information Reckitt Annual Report and Accounts 2024

191

Notes to the Financial Statements continued

23 Pension and Post-Retirement Commitments continued

Amounts recognised on the Balance Sheet continued

The movement in the Group’s net surplus/(deficit) is as follows:

		Present value of obligation					Fair value of plan assets
	UK	US (Medical)	Other	Total	UK	US (Medical)	Other	Total
	£m	£m	£m	£m	£m	£m	£m	£m
At 1 January 2023	941	81	532	1,554	(1,186)	–	(426)	(1,612)
Current service cost	–	–	10	10	–	–	–	–
Administrative costs	3	–	3	6	–	–	–	–
Interest expense/(income)	47	4	12	63	(58)	–	(13)	(71)
	50	4	25	79	(58)	–	(13)	(71)
Remeasurements:
Return on plan assets, excluding amounts included in interest income	–	–	–	–	5	–	10	15
(Gains) from changes in demographic assumptions	(16)	–	(1)	(17)	–	–	–	–
(Gains)/Losses from changes in financial assumptions	34	2	(15)	21	–	–	–	–
Experience (gains)/losses	21	(5)	7	23	–	–	–	–
	39	(3)	(9)	27	5	–	10	15
Exchange differences	–	(4)	(20)	(24)	–	–	20	20
Contributions – employers	–	–	–	–	–	(5)	(23)	(28)
Benefit payments	(61)	(5)	(26)	(92)	61	5	26	92
Scheme assets and obligations previously presented net	–	–	37	37	–	–	(37)	(37)
As at 31 December 2023	969	73	539	1,581	(1,178)	–	(443)	(1,621)
Current service cost	–	–	12	12	–	–	–	–
Administrative costs	3	–	–	3	–	–	2	2
Interest expense/(income)	44	4	21	69	(54)	–	(20)	(74)
	47	4	33	84	(54)	–	(18)	(72)
Remeasurements:
Return on plan assets, excluding amounts included in interest income	–	–	–	–	103	–	17	120
(Gains)/losses from changes in demographic assumptions	(8)	(4)	11	(1)	–	–	–	–
(Gains) from changes in financial assumptions	(81)	(3)	(11)	(95)	–	–	–	–
Experience (gains)/losses	(15)	–	4	(11)	–	–	–	–
	(104)	(7)	4	(107)	103	–	17	120
Exchange differences	–	–	(3)	(3)	–	–	(1)	(1)
Contributions – employers	–	–	–	–	–	(6)	(12)	(18)
Benefit payments	(59)	(6)	(38)	(103)	59	6	38	103
As at 31 December 2024	853	64	535	1,452	(1,070)	–	(419)	(1,489)

Strategic report Governance Financial statements Other information Reckitt Annual Report and Accounts 2024

192

23 Pension and Post-Retirement Commitments continued

Amounts recognised in the Income Statement

The charge for the year ended 31 December is shown below:

	2024	2023
	£m	£m
Defined contribution plans	48	44
Defined benefit plans (net charge excluding interest)
UK	3	3
Other	12	13
Total pension costs included in operating profit (Note 5) 1	63	60
Pension net finance income included in net finance expense (Note 6)	(5)	(8)
Income Statement charge included in profit before income tax	58	52
Remeasurement gains/(losses) for 2 :
UK	1	(44)
US (Medical)	7	3
Other	(21)	(1)
	(13)	(42)

1 The Income Statement charge recognised in operating profit includes current service cost, past service cost and

administrative costs

2 Remeasurement gains/(losses) exclude £nil (2023: £1 million) recognised in OCI for irrecoverable surplus

Sensitivity of significant actuarial assumptions

The sensitivity of the UK defined benefit obligation to changes in the principal assumptions is

shown below:

		Change in defined
2024	Change in assumption	benefit obligation
Discount rate	Increase 0.1%	Decrease by 1.1%
Discount rate	Increase 1.0%	Decrease by 9.9%
RPI increase	Increase 0.1%	Increase by 0.9%
RPI increase	Increase 1.0%	Increase by 7.7%
Life expectancy	Members live 1 year longer	Increase by 3.1%

		Change in defined
2023	Change in assumption	benefit obligation
Discount rate	Increase 0.1%	Decrease by 1.2%
Discount rate	Increase 1.0%	Decrease by 10.7%
RPI increase	Increase 0.1%	Increase by 1.0%
RPI increase	Increase 1.0%	Increase by 8.9%
Life expectancy	Members live 1 year longer	Increase by 3.3%

The above sensitivity analyses are based on a change in an assumption while holding all other

assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions

may be correlated.

Impact of medical cost trend rates

A 1% change in the assumed healthcare cost trend rates would have an immaterial impact on the

service cost, interest cost and post-retirement benefit obligation.

Risk and risk management

Through its defined benefit pension plans and post-employment medical plans, the Group is

exposed to a number of risks, the most significant of which are detailed as follows:

Asset volatility

The plan liabilities are calculated using a discount rate set with reference to corporate bond yields.

If plan assets underperform this yield, this will create a deficit/reduce the surplus. The US plans

hold a significant proportion of equities, which are expected to outperform corporate bonds in

the long term while providing volatility and risk in the short-term. However, the Group believes that

due to the long-term nature of the plan liabilities and the strength of the supporting group, a level

of continuing equity investment is an appropriate element of the Group’s long-term strategy to

manage the plans efficiently.

Notes to the Financial Statements continued

Strategic report Governance Financial statements Other information Reckitt Annual Report and Accounts 2024

193

Notes to the Financial Statements continued

23 Pension and Post-Retirement Commitments continued

Risk and risk management continued

Asset volatility continued

Investments are well diversified, such that the failure of any single investment would not have a

material impact on the overall level of assets. A portion of assets consists of unit linked insurance

policies with underlying investments in quoted equities and quoted bonds, although the Group also

invests in property and cash. The Group believes that quoted equities offer the best returns over the

long term with an acceptable level of risk. The Trustees of all the UK funds have moved the majority

of their assets to low-cost investment funds in consultation with the Group whilst maintaining

prudent diversification and appropriate interest and inflation hedging. The Trustees and the Group

have aligned goals in respect of climate risk which includes a 50% reduction in carbon footprint

ambition by 2030. The trustees of the principal UK plan have carried out climate change scenario

analysis to help them understand and quantify the potential effects of climate change on the plan’s

assets and liabilities and identify possible actions to address the risks and opportunities presented.

Changes in bond yields

A decrease in government and corporate bond yields will increase plan liabilities, although this will

be partially offset by an increase in the value of the plans’ bond holdings

Inflation risk

Some of the Group’s pension obligations are linked to inflation, and higher inflation will lead to higher

liabilities (although, in most cases, caps on the level of inflationary increases are in place to protect the

plan against extreme inflation). In order to manage inflationary risks, the Trustees’ investment strategy

within the UK plan provides a high level of protection against higher than expected long-term inflation

through investments in index-linked gilts, liability driven investments and insurance contracts. In the

US plans, the pensions in payment are not linked to inflation, so this is a less material risk.

Life expectancy

The majority of the plans’ obligations are to provide benefits for the life of the member. Whilst

the plans allow for an increase in life expectancy, increases above this assumption will result in

an increase in the plans’ liabilities. This is particularly significant in the UK plan, where inflationary

increases to benefits result in higher sensitivity to improvements in life expectancy. In 2020 the

principal UK scheme reduced its exposure by purchasing an insurance product that will pay the

pensions of some of the plan’s pensioners. In 2021 two other UK pension schemes purchased

a similar insurance policy covering 100% of their members’ benefits.

Change in regulations

The Group is aware that future changes to the regulatory framework may impact the funding basis

of the various plans in the future. The Group’s pensions department monitors the changes in

legislation and analyses the risks as and when they occur.

In June 2023, the High Court in England handed down a decision in the case of Virgin Media

Limited v NTL Pension Trustees II Limited and others relating to the validity of certain historical

pension changes due to the lack of actuarial confirmation required by law. In July 2024, the Court

of Appeal dismissed the appeal brought by Virgin Media Ltd against aspects of the June 2023

decision. The conclusions reached by the court in this case may have implications for other UK

defined benefit plans. The Group and pension trustees are currently considering the implications

of the case for the Group’s UK plans. The defined benefit obligation has been calculated on the

basis of the pension benefits currently being administered, and at this stage the Directors do not

consider it necessary to make any adjustments as a result of the Virgin Media case.

24 Share Capital

		Nominal
	Equity ordinary	value
Issued and fully paid	shares number	£m
At 31 December 2023	736,535,179	74
At 31 December 2024	736,535,179	74

The holders of ordinary shares (par value 10 pence) are entitled to receive dividends (Note 28)

as declared from time to time and are entitled to one vote per share at meetings of the

Parent Company.

Repurchase of ordinary shares

In July 2024, the Group announced a new share buyback programme of an amount of £1 billion

to be effected over 12 months. During 2024, as part of this share buyback programme, the Group

entered into commitments to purchase £1 billion of ordinary shares.

A share repurchase liability of £477 million has been recognised in the Balance Sheet as at

31 December 2024 (2023: £296 million), reflecting contractual obligations to purchase ordinary

shares (including associated costs).

During the year to 31 December 2024, 28,488,957 shares have been purchased at a total cost of

£1,328 million. Repurchased ordinary shares have been included in the Treasury shares (see below).

Allotment of ordinary shares and release of Treasury shares

During the year nil ordinary shares (2023: nil ordinary shares) were allotted, 1,083,133 ordinary shares

were released from Treasury (2023: 2,047,518) and 28,488,957 ordinary shares (2023: 3,782,835

ordinary shares) were bought back, to satisfy vesting/exercises under the Group’s various share

schemes as follows:

		2024		2023
	Number of	Consideration	Number of	Consideration
Ordinary shares of 10p	shares	£m	shares	£m
Released from Treasury
Executive Share Options – exercises	18,117	1	380,348	19
Restricted Shares Awards – vesting	1,013,180	–	1,037,960	–
Total under Executive Share Option
and Conditional Award Schemes	1,031,297	1	1,418,308	19
Savings-related Share Option Schemes
–exercises	51,836	2	629,210	29
Total released from Treasury	1,083,133	3	2,047,518	48
Bought into Treasury
Repurchase of shares	(28,488,957)	(1,328)	(3,782,835)	(207)
Total	(27,405,824)	(1,325)	(1,735,317)	(159)

Strategic report Governance Financial statements Other information Reckitt Annual Report and Accounts 2024

194

24 Share Capital continued

Allotment of ordinary shares and release of treasury shares continued

In 2024, 1,083,133 Treasury shares were released (2023: 2,047,518) and 28,488,957 ordinary shares

(2023: 3,782,835 ordinary shares) were bought back, leaving a balance held at 31 December 2024

of 49,912,354 (2023: 22,506,530). Proceeds received from the reissuance of Treasury shares to

exercise share options were £3 million (2023: £48 million).

25 Share-Based Payments

The Group operates a number of incentive schemes, including a Long-Term Incentive Plan (LTIP),

and various other share plans. All awards under these plans are equity-settled. The total expense

recognised in respect of share-based payments for the year was £85 million (2023: £102 million).

Executive share awards

Executive share awards granted to the senior management team under the LTIP consist of

Performance Share Options, Performance Shares, and Time-Vested Shares. For Performance Share

Options and Performance Shares, vesting is conditional on achievement of specified performance

targets over a three-year period as well as continued employment. For Time-Vested Shares,

vesting is conditional only on continued employment, typically over three years from grant. For

Performance Share Options, the exercise price is determined on the grant date and becomes

payable on exercise, which may be up to seven years after the options have vested. Performance

Shares and Time-Vested Shares entitle the recipient to receive shares at no cost following

satisfaction of the vesting conditions.

The performance metrics and associated weightings for LTIP awards from 2022 to 2024 are as follows:

LTIP performance metrics – 2022, 2023 and 2024 awards	Weighting
Like-for-like net revenue growth	40%
Return on Capital Employed (ROCE)	25%
Relative Total Shareholder Return (TSR)	25%
Sustainability	10%

LTIP awards with a market-based TSR performance condition were first granted in 2022. For LTIP

awards granted before 2022, LTIP awards included only non-market performance conditions.

For the Executive Committee and members of the Group Leadership Team, vesting conditions

must be met over the three-year performance period and are not retested. For awards granted to

other members of the senior management team before 2021, the targets could be retested in

years four or five of the scheme. The final retest date was in 2024, at which point any remaining

unvested shares or options lapsed. For awards granted in May 2021 and thereafter, vesting

conditions must be met over the three-year period and are not retested.

Other share awards

Other share awards include savings-related share options (offered to all staff within the relevant

geographic area) and a number of Senior Executive Share Ownership Policy Plan (SOPP) awards.

Other share awards have contractual lives of between three and eight years and are generally not

subject to any vesting conditions other than the employee’s continued employment.

Individual tranches of these other share awards are not material for detailed disclosure and

therefore information about these awards is presented only on an aggregated basis.

Valuation of share awards

The fair value of share options granted is calculated using a Black-Scholes model. Performance

Share Options and Performance Shares which include the market-based TSR performance target

are valued by a third-party expert using a Monte Carlo model. For Performance Shares with

non-market performance conditions and for Time-Vested Shares, the fair value is the share price

on the date of grant. From 2022 onwards, no adjustment to the market price at grant is required

because all new Performance Shares and Time-Vested Shares accrue dividend equivalents.

Performance Options do not accrue dividend equivalents.

The weighted average fair value of the LTIP Performance Share Options granted in the year and

the key assumptions made in arriving at that fair value were as follows:

		Performance Share Options
	2024	2023
Exercise price	£50.90	£58.28
Performance period	2024-26	2023-25
Share price on grant date	£50.14	£59.18
Volatility	22.3%	22.6%
Dividend yield	3.9%	3.1%
Expected life	6.9 years	6.6 years
Risk-free interest rate	3.9%	3.2%
Weighted average fair value per award	£7.68	£10.49

An estimate of future volatility is made with reference to historical volatility over a similar time

period to the expected life of the option. Historical volatility is calculated based on the annualised

standard deviation of the Group’s daily share price movement, which approximates the

continuously compounded rate of return on the share.

The weighted average fair value of the LTIP Performance Shares granted in the year was £41.65

per award (2023: £51.38 per award).

Notes to the Financial Statements continued

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195

Notes to the Financial Statements continued

25 Share-Based Payments continued

Movements in the year

The following table shows movements in the total number of outstanding awards across all award

types:

		Year ended		Year ended
	31 December 2024		31 December 2023
		Weighted		Weighted
	Number of	average	Number of	average
	awards	exercise price	awards	exercise price
Outstanding at 1 January	18,562,750	£45.24	18,707,602	£44.99
Granted	6,449,300	£31.65	4,806,191	£36.92
Exercised	(1,112,643)	£2.90	(2,084,209)	£23.51
Lapsed	(4,628,219)	£46.90	(2,866,834)	£45.48
Outstanding at 31 December	19,271,188	£42.73	18,562,750	£45.24
Exercisable at 31 December	4,273,783	£63.35	3,009,018	£61.36

The weighted average share price over the year was £47.28 (2023: £58.38).

Summary of outstanding awards

For awards outstanding at the year end the weighted average remaining contractual life is 5.0

years (2023: 5.3 years) and the range of exercise prices is as follows:

	Price to be paid			Number of awards
	£			outstanding
			at 31 December	at 31 December
	From	To	2024	2023
LTIP – performance share options	42.01	78.00	11,621,996	11,522,463
LTIP – performance shares	–	–	3,404,027	3,584,219
LTIP – time-vested shares	–	–	1,197,033	861,596
SOPP	–	–	141,400	150,200
Savings-related share options	40.49	62.44	2,906,732	2,444,272
Total			19,271,188	18,562,750

For LTIP awards with non-market performance conditions, assumptions regarding the number of

awards that will eventually vest are based on the Directors’ expectations in light of the Group’s

business model and relevant published targets.

There has been no material modification of outstanding awards such as would impact the expense

recognised in respect of share-based payments.

26 Other Reserves

		Foreign
		currency	Total
	Hedging	translation	other
	reserve	reserve	reserves
Attributable to owners of the parent	£m	£m	£m
Balance at 1 January 2023	13	(307)	(294)
Other comprehensive income/(expense):
Fair value losses on cash flow hedges, net of tax	(16)	–	(16)
Reclassification of cash flow hedges to the Income Statement	(23)	–	(23)
Net exchange losses on foreign currency translation, net of tax	–	(638)	(638)
Gains on net investment hedges, net of tax	–	42	42
Reclassification of foreign currency translation reserves on disposal or liquidation of foreign operations, net of tax	–	(131)	(131)
Total other comprehensive expense for the year	(39)	(727)	(766)
Balance at 31 December 2023	(26)	(1,034)	(1,060)
Other comprehensive income/(expense):
Fair value gains on cash flow hedges, net of tax	9	–	9
Reclassification of cash flow hedges to the Income Statement	29	–	29
Net exchange losses on foreign currency translation, net of tax	–	(442)	(442)
Gains on net investment hedges, net of tax	–	85	85
Reclassification of foreign currency translation reserves on disposal or liquidation of foreign operations, net of tax	–	(11)	(11)
Total other comprehensive income/(expense) for the year	38	(368)	(330)
Balance at 31 December 2024	12	(1,402)	(1,390)

The hedging reserve comprises the effective portion of the cumulative net change in fair value of

cash flow hedging instruments related to hedge transactions that are extant at year end.

The foreign currency translation reserve contains the accumulated foreign exchange differences

from the translation of the Financial Statements of the Group’s foreign operations arising when the

Group’s entities are consolidated. The reserve also contains the translation of liabilities that hedge

the Group’s net exposure in a foreign currency.

During the year ended 31 December 2024, a net gain of £11 million (2023: £131 million net gain) was

reclassified to the Income Statement from foreign currency reserves following the disposal or

liquidation of foreign operations, of which a net gain of £nil million (2023: £130 million net gain)

related to the liquidation of subsidiaries (see Note 6 for further details).

Strategic report Governance Financial statements Other information Reckitt Annual Report and Accounts 2024

196

Notes to the Financial Statements continued

27 Related Party Transactions

The Group has related party relationships with its Directors and key management personnel

(Note 5).

28 Dividends

		2024	2023
		£m	£m
Cash dividends on equity ordinary shares:
2023	Final paid: 1 1 5.9p (2022: Final paid 1 1 0 . 3p) per share	820	790
2024	Interim paid: 8 0 . 4p (2023: Interim paid: 76. 6p) per share	561	549
Total dividends for the year		1,381	1,339

The Directors are proposing a final dividend in respect of the financial year ended 31 December

2024 of 12 1 .7 pence per share which will absorb an estimated £830 million of shareholders’ funds. If

approved by shareholders it will be paid on 29 May 2025 to shareholders who are on the register

on 11 April 2025, with an ex-dividend date of 10 April 2025.

29 Acquisitions and Disposals

Acquisitions

On 25 September 2023, the Group acquired a business distributing Reckitt products in the

Kingdom of Saudi Arabia. This was accounted for as a business combination with the purchase

consideration £79 million, of which a preliminary fair value of £56 million was allocated to goodwill

and intangible assets, and a preliminary fair value of £23 million to inventories acquired.

The measurement period to finalise the purchase price allocation concluded in 2024. The

finalisation led to a £3 million increase in goodwill and other intangible assets and a £6 million

reduction in inventory assets during the year.

Disposals

There were no disposals material to the Group during 2024 and 2023.

30 Discontinued Operations

The expense in the current year from discontinued operations of £4 million relates to interest

accruing on an uncertain tax position relating to the former RB Pharmaceuticals business (now

Indivior plc). The income in the prior year from discontinued operations of £9 million relates to the

Group’s disposal of the RB Pharmaceuticals business (now Indivior plc).

31 Post Balance Sheet Events

There have been no events subsequent to the Balance Sheet date which require disclosure.

Strategic report Governance Financial statements Other information Reckitt Annual Report and Accounts 2024

197

The five-year summary below is presented on an IFRS basis. The years ending 31 December 2020, 31 December 2021, 31 December 2022, 31 December 2023 and 31 December 2024 show the results for

continuingoperations.

Income Statement

2024

£m

2023

£m

2022

£m

2021

£m

2020

£m

Net revenue 14,169 14,607 14,453 13,234 13,993

Operating profit/(loss) 2,425 2,531 3,249 (804) 2,160

Net finance (expense)/income (321) (130) (161) 547 (286)

Share of loss and impairment of equity-accounted investees, net of tax – – (21) (3) (1)

Profit/(loss) before income tax 2,104 2,401 3,067 (260) 1,873

Income tax (charge)/credit (672) (753) (711) 208 (720)

Attributable to non-controlling interests (2) (14) (19) (11) (16)

Net profit/(loss) attributable to owners of the Parent Company from continuing operations 1,430 1,634 2,337 (63) 1,137

Balance Sheet

Net assets 6,720 8,469 9,483 7,453 9,159

Key Statistics – IFRS basis

Operating margin 17.1% 17.3% 22.5% (6.1%) 15.4%

Diluted earnings per share, continuing 203.8p 227.4p 325.7p (8.8p) 159.3p

Declared total dividends per ordinary share 202.1p 192.5p 183.3p 174.6p 174.6p

Five-Year Summary (Unaudited)

Strategic report Governance Financial statements Other information Reckitt Annual Report and Accounts 2024

198

Parent Company Balance Sheet

As at 31 December 2024

Note

2024

£m

2023

£m

Fixed assets

Investments 2 15,248 15,174

Current assets

Debtors due within one year 3, 6 313 185

Debtors due after more than one year 4, 6 8 14

321 199

Current liabilities

Creditors due within one year 5, 6 (3,901) (5,361)

Share repurchase liability 6, 8 (477) (296)

Net current liabilities (4,057) (5,458)

Total assets less current liabilities 11,191 9,716

Provisions for liabilities and charges 7 (25) (26)

Net assets 11,166 9,690

Equity

Share capital 8 74 74

Share premium 254 254

Retained earnings 10,838 9,362

Total equity 11,166 9,690

Reckitt Benckiser Group plc has made a profit of £4,280 million (2023: £4,135 million) for the

financial year.

The Financial Statements on pages 198-217 were approved by the Board of Directors and signed

on its behalf on 5 March 2025 by:

Sir Jeremy Darroch Kris Licht

Director Director

Reckitt Benckiser Group plc Reckitt Benckiser Group plc

Company Number: 06270876

capital

£m

premium

£m

Retained

earnings

£m

Total

equity

£m

Balance at 1January2023 74 254 6,921 7,249

Comprehensive income

Profit for the financial year – – 4,135 4,135

Total comprehensive income – – 4,135 4,135

Transactions with owners

Treasury shares reissued – – 48 48

Purchase of ordinary shares by employee

share ownership trust – – (2) (2)

Repurchase of shares – – (503) (503)

Share-based payments – – 6 6

Capital contribution in respect of share-

based payments – – 96 96

Cash dividends – – (1,339) (1,339)

Total transactions with owners – – (1,694) (1,694)

Balance at 31 December 2023 74 254 9,362 9,690

Comprehensive income

Profit for the financial year – – 4,280 4,280

Total comprehensive income – – 4,280 4,280

Transactions with owners

Treasury shares reissued – – 3 3

Purchase of ordinary shares by employee

share ownership trust – – (2) (2)

Repurchase of shares – – (1,509) (1,509)

Share-based payments – – 11 11

Capital contribution in respect of share-

based payments – – 74 74

Cash dividends – – (1,381) (1,381)

Total transactions with owners – – (2,804) (2,804)

Balance at 31 December 2024 74 254 10,838 11,166

Reckitt Benckiser Group plc has £9,912million (2023:£8,521million) of its retained earnings

available for distribution. Details of Treasury shares and other equity transactions are included in

Note24 of the Group Financial Statements.

Parent Company Statement of Changes in Equity

For the year ended 31 December 2024

Strategic report Governance Financial statements Other information Reckitt Annual Report and Accounts 2024

199

1 Parent Company Accounting Policies

The principal accounting policies are summarised below. They have all been applied consistently

throughout the year and the preceding year.

General information and basis of accounting

Reckitt Benckiser Group plc is a company incorporated in the United Kingdom, registered in

England and Wales under the Companies Act 2006, and is a public limited company. The address

of the registered office is given on page 230.

The Company is the parent of the Reckitt Benckiser Group and its principal activity is to act as

aholding company for the Group. The nature of the Group’s operations and its principal activities

are set out in the Strategic Report on pages 1-57.

Statement of compliance

The Financial Statements have been prepared under the historical cost convention and in

compliance with United Kingdom Accounting Standards, including Financial Reporting Standard

102, The Financial Reporting Standard applicable in the United Kingdom and the Republic

ofIreland(FRS 102) and the Companies Act 2006.

The functional currency of Reckitt Benckiser Group plc is considered to be pounds sterling because

that is the currency of the primary economic environment in which the Company operates.

As permitted by s408 of the Companies Act 2006, a Statement of Comprehensive Income

isnotpresented for Reckitt Benckiser Group plc.

Going concern

Having assessed the principal risks and other matters discussed in connection with the Group’s

Viability Statement as set out on page 57 of the Group Annual Report, the Directors considered

itappropriate toadopt the going concern basis of accounting in preparing the Company Financial

Statements. Whenreaching this conclusion, the Directors took into account the Company’s overall

financial position and exposure to principal risks.

Financial Reporting Standard 102 – Reduced Disclosure Exemptions

FRS 102 allows a qualifying entity certain disclosure exemptions, subject to certain conditions,

which have been complied with.

The Company has taken advantage of the following exemptions:

(i) from preparing a Statement of Cash Flows, on the basis that it is a qualifying entity and the

Group Cash Flow Statement, included in these Financial Statements, includes the Company’s

cash flows; and

(ii) from disclosing the Company key management personnel compensation, as required by FRS

102 paragraph 33.7.

The Company’s results are included in the publicly available consolidated Financial Statements

ofReckittBenckiser Group plc and these Financial Statements may be obtained from 103-105

BathRoad, Slough, Berkshire SL1 3UH or at www.reckitt.com.

Foreign currency translation

Transactions denominated in foreign currencies are translated using exchange rates prevailing

atthe dates of the transactions. Foreign exchange gains and losses resulting from the settlement

of foreign currency transactions and from the translation at year end exchange rates of monetary

assets and liabilities denominated in foreign currencies are recognised in the Statement of

Comprehensive Income.

Taxation

The tax charge/credit is based on the result for the year and takes into account taxation deferred

due to timing differences between the treatment of certain items for taxation and accounting

purposes. Deferred tax liabilities are provided for in full and deferred tax assets are recognised

tothe extent that they are considered recoverable.

A net deferred tax asset is considered recoverable if it can be regarded as more likely than not

that there will be suitable taxable profits against which to recover carried forward tax losses

andfrom which the future reversal of underlying timing differences can be deducted.

Deferred tax is recognised in respect of all timing differences that have originated but not

reversed at the Balance Sheet date, where transactions or events that result in an obligation

topaymore tax in the future or a right to pay less tax in the future have occurred at the

BalanceSheet date.

Deferred tax is measured at the average tax rates that are expected to apply in the periods

inwhich the timing differences are expected to reverse, based on tax rates and laws that have

been enacted or substantively enacted by the Balance Sheet date. Deferred tax is measured

onanundiscounted basis.

The Company has applied the temporary mandatory exception from accounting for deferred taxes

arising from the Pillar Two model rules as set out in ‘International Tax Reform – Pillar Two Model

Rules (Amendments to FRS 102)’ issued by the FRC in July 2023.

Notes to the Parent Company Financial Statements

Strategic report Governance Financial statements Other information Reckitt Annual Report and Accounts 2024

200

Notes to the Parent Company Financial Statements continued

1 Parent Company Accounting Policies continued

Fixed asset investments

Fixed asset investments are stated at the lower of cost or their recoverable amount, which

isdetermined as the higher of net realisable value and value-in-use. A review of the potential

impairment of an investment is carried out by the Directors if events or changes in circumstances

indicate that the carrying value of the investment may not be recoverable. Such impairment

reviews are performed inaccordance with FRS 102 Section 27 ‘Impairment of assets’.

Employee share schemes

Incentives in the form of shares are provided to employees under equity-settled share option and

restricted share schemes, which have various combinations of market-based and non-market

performance conditions, service conditions, and non-vesting conditions.

The fair value determined at the award grant date takes into account the probability of any

relevant market-based performance conditions and non-vesting conditions being satisfied and is

subsequently expensed on a straight-line basis over the vesting period, based on the Company’s

estimate of equity instruments that will eventually vest. This estimate takes into account the

expected outcome for relevant non-market performance conditions and service conditions but

assumes satisfaction of all market-based performance conditions and non-vesting conditions. At

each Balance Sheet date, the Company revises its estimate of the number of equity instruments

expected to vest. The impact of the revision of the original estimates, if any, is recognised in the

Statement of Comprehensive Income such that the cumulative expense reflects the revised

estimate, with a corresponding adjustment to equity reserves.

Additional employer costs, including social security taxes, in respect of options and awards are

charged to the Statement of Comprehensive Income over the same period with a corresponding

liability recognised.

The grant by the Company of options over its equity instruments to the employees of subsidiary

undertakings in the Group is treated as a capital contribution. The fair value of employee services

received, measured by reference to the grant date fair value, is recognised over the vesting period

as an increase to investment in subsidiary undertakings, with a corresponding credit to equity

inthe Company Financial Statements.

Financial instruments

The Company recognises financial instruments when it becomes a party to the contractual

obligations of the instrument.

(i) Financial assets

Basic financial assets are initially recognised at transaction price, unless the arrangement

constitutes a financing transaction, where the transaction is measured at the present value

ofthefuture receipts. Such assets are subsequently carried at amortised cost.

At the end of each reporting period financial assets measured at amortised cost are assessed for

objective evidence of impairment. If an asset is impaired the impairment loss is the difference

between the carrying amount and the present value of the estimated cash flows discounted at

the asset’s original effective interest rate. The impairment loss is recognised in comprehensive

income or expense.

Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset

expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are

transferred to another party, or (c) control of the asset has been transferred to another party who

has the practical ability to unilaterally sell the asset to an unrelated third party without imposing

additional restrictions.

(ii) Financial liabilities

Basic financial liabilities, including loans from fellow Group companies, are initially recognised

attransaction price, unless the arrangement constitutes a financing transaction, where the

debtinstrument is measured at the present value of future payments. Debt instruments are

subsequently carried at amortised cost.

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual

obligation is discharged, cancelled or expires.

(iii) Derivative Financial Instruments

Derivatives, including forward foreign exchange contracts, are not basic financial instruments.

Derivatives are initially recognised at fair value on the date a derivative contract is entered into

and subsequently remeasured at their fair value.

Strategic report Governance Financial statements Other information Reckitt Annual Report and Accounts 2024

201

Notes to the Parent Company Financial Statements continued

1 Parent Company Accounting Policies continued

Provisions

Provisions are recognised when the Company has a present legal or constructive obligation as a

resultofpast events; it is more likely than not that there will be an outflow of resources to settle

that obligation; and the amount can be reliably estimated. Provisions are valued at the present

value of the Directors’ best estimate of the expenditure required to settle the obligation at the

Balance Sheet date. Where it ispossible that a settlement may be reached or it is not possible

tomake a reliable estimate ofthe estimated financial impact, appropriate disclosure is made

butno provision recognised.

Where a company enters into a financial guarantee contract to guarantee the indebtedness

ofother companies within its Group, the Company treats the guarantee contract as a contingent

liability until such a time as it becomes probable that the Company will be required to make

apayment under theguarantee.

Share capital transactions

When the Company purchases equity share capital, the amount of the consideration paid,

including directly attributable costs, is recognised as a charge to equity. Purchased shares are

either held in Treasury in order to satisfy employee options, or cancelled and, in order to maintain

capital, an equivalent amount to the nominal value of the shares cancelled is transferred from

retained earnings.

Repurchase and reissuance of ordinary shares

When shares recognised as equity are repurchased, the amount of the consideration paid,

including directly attributable costs, is recognised as a charge to equity. Repurchased shares

areclassified as Treasury shares and are presented in retained earnings. When Treasury shares are

sold or reissued subsequently, the amount received is recognised as an increase in equity and the

resulting surplus ispresented within share premium.

Dividend distribution

Dividends to owners of the Parent Company are recognised as a liability in the period in which

thedividends are approved by the Company’s shareholders. Interim dividends are recorded

intheperiod inwhich they are approved and paid.

Accounting estimates and judgements

In preparing these Financial Statements, management has made judgements and estimates that

affect the application of the Company’s accounting policies and the reported amounts of assets,

liabilities, income and expenses. Actual amounts and results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to

accounting estimates are recognised in the period in which the estimate is revised if the revision

affects only thatperiod, or in the period of the revision and future periods if the revision affects

both current andfuture periods.

Key sources of estimation uncertainty

Each year, management is required to make a number of assumptions regarding the future.

Therelated year-end accounting estimates will, by definition, seldom equal the final actual results.

The estimates andassumptions that have a significant risk of causing a material adjustment to

thecarrying amounts ofassets and liabilities within the next financial year are addressed below.

Tax provisions

Current tax liabilities include an amount of £245million (2023:£156million) relating to uncertain

taxpositions in respect of tax deductibility of management expenses. The exposure recognised

iscalculated based on the expected value method and the most likely amount method.

Theaccounting estimates and judgements considered include:

• status of the unresolved matter;

• clarity of relevant legislation and related guidance;

• advice from related party specialists and unrelated third parties;

• range of possible outcomes; and

• statute of limitations.

The recognition of uncertain tax positions is reviewed regularly for changes in circumstances and

estimates are updated as potential resolutions for the tax uncertainties are encountered through

specific audits or wider case law. As a result, given the size, possible range of outcomes and

timing of resolution, there is a significant risk of material adjustment to the aggregate carrying

amount of these liabilities within the next financial year.

Legal provisions

The Company recognises legal provisions in line with the Company’s provisions policy. The level

ofprovisioning in relation to civil and/or criminal investigations is an area where management

andlegal judgement is important, with individual provisions being based on best estimates of

theprobable loss, considering all available information, external advice and historical experience.

As at 31 December 2024, the Company recognised legal provisions of £25million (2023:£26million)

in relation to a number of historical regulatory matters. Refer to Note7 of the Company Financial

Statements for further information.

The Company’s Directors are of the opinion that there are no other judgements and no further key

sources of estimation uncertainty in applying the Company’s accounting policies.

Strategic report Governance Financial statements Other information Reckitt Annual Report and Accounts 2024

202

Notes to the Parent Company Financial Statements continued

2 Investments

Shares in

subsidiary

undertakings

£m

Cost

At 1January2023 15,078

Additions during the year 96

At 31 December 2023 15,174

Additions during the year 74

At 31 December 2024 15,248

Provision for impairment

At 1January2023 –

At 31 December 2024 –

Net book value

At 31 December 2023 15,174

At 31 December 2024 15,248

The Directors believe that the carrying value of the investments is supported by their underlying

netassets.

The subsidiary undertakings as at 31 December 2024, all of which are included in the Group

Financial Statements, are shown in Note12 of the Company Financial Statements.

With the exception of Reckitt Benckiser Limited, none of the subsidiaries are directly held

byReckitt Benckiser Group plc. All subsidiaries have a financial year ending 31 December with

theexception of: Reckitt Benckiser (India) Private Limited, Reckitt Benckiser Healthcare India

Private Limited, Mead Johnson Nutrition (India) Private Limited and Reckitt Piramal Private Limited

which have a year ending 31 March; Scholl Latin America Limited which has a year ending 4 March;

Reckitt Benckiser Health Kenya Limited which has a year ending 30 April; Reckitt Benckiser

(CzechRepublic) spol. s r.o which has a year ending 31 May; Lloyds Pharmaceuticals which

hasayear ending 24 August and RBHCR Health Reckitt Costa Rica Sociedad Anónima which

hasayear ending 30 September.

Additions during the year, and in 2023, relate to the grant by the Company of options over

itsequity instruments to the employees of subsidiary undertakings in the Group.

3 Debtors Due Within One Year

2024

£m

2023

£m

Amounts owed by Group undertakings 307 178

Other debtors 6 7

313 185

Amounts owed by Group undertakings are unsecured, interest free and are repayable on demand

(2023:same).

4 Debtors Due After More Than One Year

2024

£m

2023

£m

Deferred tax assets 2 1

Other debtors 6 13

8 14

Deferred tax assets consist of short-term timing differences.

5 Creditors Due Within One Year

2024

£m

2023

£m

Amounts owed to Group undertakings 3,639 5,196

Taxation and social security 246 157

Derivative liabilities 1 1

Other creditors 15 7

3,901 5,361

Included in the amounts owed to Group undertakings is an amount of £3,613 million (2023: £5,123

million) which is unsecured, carries interest at the official SONIA fallback rate and is repayable

ondemand (2023: interest at the official ISDA fallback rate and is repayable on demand). All other

amounts owed to Group undertakings are unsecured, non-interest bearing and are repayable

ondemand (2023: same).

Included within taxation and social security creditors is an amount recognised in respect of

uncertain tax positions may take several years to resolve (Note 1). Notwithstanding this, the

presentation of corporation tax liabilities has been assessed to reflect that there is not an

unconditional right to defer settlement of these liabilities and the carrying amount of £245 million

(2023: £156 million) has been presented as a current liability.

Strategic report Governance Financial statements Other information Reckitt Annual Report and Accounts 2024

203

Notes to the Parent Company Financial Statements continued

6 Financial instruments

2024

£m

2023

£m

Financial assets measured at amortised cost

Amounts owed by Group undertakings 307 178

Other debtors – current and non-current 12 20

319 198

Financial liabilities

Derivative financial instruments measured at fair value

throughprofit or loss

Derivative liabilities (1) (1)

Financial liabilities measured at amortised cost

Amounts owed to Group undertakings (3,639) (5,196)

Share repurchase liability (477) (296)

Other payables – (7)

(4,117) (5,500)

7 Provisions for Liabilities and Charges

Legal

provisions

£m

Total

provisions

£m

At 1January2023 44 44

Charged to the Statement of Comprehensive Income 1 1

Utilised during the year (18) (18)

Released to the Statement of Comprehensive Income (1) (1)

At 31 December 2023 26 26

Charged to the Statement of Comprehensive Income 1 1

Utilised during the year (1) (1)

Released to the Statement of Comprehensive Income (1) (1)

At 31 December 2024 25 25

Provisions have been analysed between current and non-current as follows:

2024

£m

2023

£m

Current 25 26

Non-current – –

25 26

Provisions relate to legal provisions in relation to a number of historical matters.

8 Share Capital

Issued and fully paid

Equity

ordinary

Nominal

value

£m

At 31 December 2023 736,535,179 74

At 31 December 2024 736,535,179 74

The holders of ordinary shares (par value 10 pence) are entitled to receive dividends as declared

from time to time and are entitled to one vote per share at meetings of the Parent Company.

Dividends proposed and paid are disclosed in Note28 of the Group Financial Statements.

The allotment of ordinary shares and release of Treasury shares are disclosed in Note24

oftheGroup Financial Statements.

In addition, the Company announced a share buyback programme also disclosed in Note 24

oftheGroup Financial Statements.

9 Related Party Transactions

There were no transactions with related parties other than wholly owned companies within

theGroup.

Strategic report Governance Financial statements Other information Reckitt Annual Report and Accounts 2024

204

Notes to the Parent Company Financial Statements continued

10 Contingent Liabilities

The Company has issued a guarantee to the trustees of the Reckitt Benckiser Pension Fund

covering the obligations of certain UK subsidiaries of the Group who are the sponsoring employers

of the UK defined benefit pension fund. The guarantee covers any amounts due to the pension

fund from these subsidiaries if they fail to meet their pension obligations.

The Company issued a guarantee on behalf of Reckitt Benckiser Treasury Services plc in relation to

the issuance of a $2,500 million bond (2023: $4,500 million bond), made up of one tranche of

$2,500 million (2023: one tranche of $2,500 million and one tranche of $2,000 million). The

Company has issued a further guarantee in relation to the issuance of a £500 million bond (2023:

same). Details are included in Note 15 of the Group Financial Statements.

The Company also issued a guarantee on behalf of Reckitt Benckiser Treasury Services plc in

relation to the issuance of a €1,400 million bond, made up of one tranche of €750 million and one

tranche of €650 million (2023: same). The Company has issued a further guarantee in relation to

the issuance of a £300 million bond (2023: same). Details are included in Note 15 of the Group

Financial Statements.

During the year, the Company issued a guarantee on behalf of Reckitt Benckiser Treasury Services

plc in relation to the issuance of a €900 million bond. The Company has issued a further guarantee

in relation to the issuance of a £300 million bond. Details are included in Note 15 of the Group

Financial Statements.

During the year, the Company continued to provide a guarantee on behalf of Reckitt Benckiser

Treasury Services plc in relation to issuance of commercial paper under a USD-denominated

$8,000 million commercial paper programme and a €3,000 million euro commercial paper

programme. Details are included in Note 15 of the Group Financial Statements.

The Company issued a guarantee on behalf of Reckitt Benckiser Treasury Services plc in relation to

committed borrowing facilities totalling £4,450 million (2023: £4,500 million). Details of the facilities

are included in Note 15 of the Group Financial Statements.

The Company issued a guarantee on behalf of Mead Johnson Nutrition Company in relation to

outstanding senior notes of $1,550 million (2023: same) issued by Mead Johnson Nutrition Company

prior to acquisition. The senior notes consist of one tranche of $750 million, one tranche of $500

million and one tranche of $300 million (2023: same).

The Company has also issued a guarantee on behalf of Reckitt Benckiser Treasury Services

(Nederland) BV in relation to the issuance of two €850 million bonds (2023: same). Details are

included in Note 15 of the Group Financial Statements.

The Company has provided a guarantee to certain subsidiary undertakings to exempt them from

audit under Section 479a of the Companies Act 2006. The companies to which a guarantee has

been issued for this purpose are highlighted in Note 12.

Other contingent liabilities are disclosed in Note 20 of the Group Financial Statements.

11 Post Balance Sheet Events

There are no events subsequent to the Balance Sheet date that require disclosure.

Strategic report Governance Financial statements Other information Reckitt Annual Report and Accounts 2024

205

Subsidiary Undertakings

Key: In liquidation

Registered address country different to country of registration

◊

Branch

12 Subsidiary Undertakings

In accordance with section 409 of the Companies Act 2006 (CA 2006) and schedule 4 of The

Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, a full

list of related undertakings as at 31 December 2024 is disclosed below. All undertakings are

indirectly owned by Reckitt Benckiser Group plc, unless otherwise stated. All shares detailed

below are 100% owned, unless specified otherwise. The percentage held by the Group reflects

both the proportion of nominal capital and voting rights unless stated otherwise.

From time to time, management reviews the Group structure and seeks to remove redundant,

dormant or non-trading entities. During the year ended 31 December 2024, six legal entities were

dissolved, liquidated or otherwise disposed of (2023: five legal entities). The removal of legal

entities ultimately allows management to focus on the core business, reduces compliance

obligations and costs, and improves transparency of the Group to external parties.

All subsidiary undertakings of Reckitt Benckiser Group plc are included in the consolidated

Financial Statements of the Group.

Entity name Key

Overall % owned by

Group, if not 100% Share class name(s)

Argentina

Bucarelli 2608 PB "A", Ciudad Autonoma de Buenos Aires, Argentina

Reckitt Benckiser Argentina S.A. Ordinary

Reckitt Benckiser Health Argentina S.A. Ordinary

Australia

King & Wood Mallesons, ‘Governor Phillip Tower’ Level 61, 1 Farrer Place, Sydney NSW 2000, Australia

Mead Johnson Nutrition (Australia) Pty Ltd Ordinary

Level 47, 680 George Street, Sydney NSW 2000, Australia

RB (Hygiene Home) Australia Pty Limited Ordinary

Reckitt Benckiser (Australia) Pty Limited Ordinary, Preference

Reckitt Benckiser Healthcare Australia Pty Limited Ordinary

SSL Australia Pty Ltd Ordinary

Austria

Guglgasse 15, 1110, Vienna, Austria

RB Hygiene Home Austria GmbH Ordinary

Reckitt Benckiser Austria GmbH Ordinary

Bahamas

c/o 103-105 Bath Road, Slough, Berkshire SL1 3UH, United Kingdom

Scholl Latin America Limited

◊

Ordinary

Entity name Key

Overall % owned by

Group, if not 100% Share class name(s)

Bahrain

Building 330, Road 1506, Block 115, Bahrain International Investment Park, Hidd. Kingdom of

Bahrain, Bahrain

Reckitt Benckiser Bahrain W.L.L Ordinary

Bangladesh

58-59 Nasirabad Industrial Area, Chittagong 4209, Bangladesh

Reckitt Benckiser (Bangladesh) PLC 82.96122751 Ordinary

Belarus

of. 166, 66, K Liebknekhta st., Minsk, 220036, Belarus

Reckitt Benckiser BY LLC Charter Capital

Belgium

20 Allée de la Recherche, 1070 Anderlecht, Belgium

RB Hygiene Home Belgium SA Ordinary

Reckitt Benckiser (Belgium) SA/NV Ordinary

Bermuda

Clarendon House, Church Street, Hamilton HM11, Bermuda

Suffolk Insurance Limited Common/Equity

Bolivarian Republic of Venezuela

251 Little Falls Drive, Wilmington DE 19808, United States

Mead Johnson Nutrition Venezuela SCA

◊ -

Avenida Mara con Calle San José, Centro Comercial Macaracuay Plaza, Nivel C3, Locales 5 y 12.

Urb. Colinas de la California., Caracas, Bolivarian Republic of Venezuela

Reckitt Benckiser Venezuela S.A. Ordinary

Urb. Las Mercedes, Av. Orinoco cruce con Mucuchies Torre Nordic, Piso 1, Oficina 1 y 2, Municipio

Baruta Caracas, Bolivarian Republic of Venezuela

Mead Johnson Nutrition Venezuela, S.C.A. Partnership

Interest

Strategic report Governance Financial statements Other information Reckitt Annual Report and Accounts 2024

206

Subsidiary Undertakings continued

Key: In liquidation

Registered address country different to country of registration

◊

Branch

Entity name Key

Overall % owned by

Group, if not 100% Share class name(s)

Brazil

Av Guarapari, S/N, Galpao1 – Modulos 05 Ao 14cond Log Vianaii Bus/Park, Viana, Es, 29.136-344,

Brazil

Reckitt Benckiser (Brasil) Comercial de Produtos de

Hygiene, Limpeza e Cosméticos Ltda. – Branch Viana

Av. Portugal, nº 1.100, Setor Rua 6 Parte A12, Bairro Itaqui, Itapevi, São Paulo, 06696-060, Brazil

Reckitt Benckiser Health Comercial Ltda.

Avenida Presidente Juscelino Kubitschek, n° 1909, 24° andar, Parte B, Torre Norte, Condomínio São

Paulo Corporate Towers, Vila Nova Conceição, Sao Paulo – SP, CEP 04.543-907, Brazil

Mead Johnson do Brasil Comércio e Importação de

Produtos de Nutrição Ltda.

Ordinary

Reckitt Benckiser (Brasil) Comercial de Produtos de

Hygiene, Limpeza e Cosméticos Ltda.

Ordinary

Reckitt Benckiser Health Comercial Ltda Ordinary

Est Dona Maria Jose Ferraz Prado, 1481, Cond Dist. Park Embu, Brazil

Reckitt Benckiser (Brasil) Comercial de Produtos de

Hygiene, Limpeza e Cosméticos Ltda. – Branch

Embu

Estm Maria Margarida Pinto Dona Belinha, 742, GalpaO3, Bloco I/A, Brazil

Reckitt Benckiser (Brasil) Comercial de Produtos de

Hygiene, Limpeza e Cosméticos Ltda. - Branch

Extrema

Rod Dom Gabriel Paulino Bueno Couto, 1606, Brazil

Reckitt Benckiser (Brasil) Ltda – Branch Itupeva

Rod Governador Mario Covas, 7270, KM 264 Parte RB, Serra/ES, Brazil

Reckitt Benckiser (Brasil) Comercial de Produtos de

Hygiene, Limpeza e Cosméticos Ltda. - Branch Serra

Rua Vereador Germano Luiz Vieira, 500, Armazém 3, Sala 17, Bairro Itaipava, Itajaí, Santa

Catarina, 88316-701, Brazil

Mead Johnson Do Brasil Comércio E Importação De

Produtos De Nutrição Ltda.

Rodovia Raposo Tavares, 8015 km 18, Jardim Arpoador, Sao Paolo, CEP 05577-900, Brazil

Fenla Indústria, Comércio e Administração Ltda Ordinary

Reckitt Benckiser (Brasil) Ltda Ordinary

Estrada Fukutaro Yida, n. 930, Bairro Cooperativa, Sao Bernardo Do Campo, Sao Paulo, 09852-

060, Brazil

Apenas Boa Nutrição Indústria de Alimentos Ltda. Ordinary

Entity name Key

Overall % owned by

Group, if not 100% Share class name(s)

Bulgaria

22 Zlaten rog Street, Floor 3, Office 4, District of Lozenets, City of Sofia, Bulgaria

Reckitt Benckiser Romania, representative office

Canada

Suite 600, 1741 Lower Water Street, Halifax NS B3J 0J2, Canada

Mead Johnson Nutrition (Canada) Co. Common/Equity

Suite 2300, 550 Burard Street, Vancouver BC V6C 2B5, Canada

RB Health (Canada) Inc. Common/Equity

1680 Tech Avenue, Unit 2, Mississauga ON L4W 5S9, Canada

Reckitt Benckiser (Canada) Inc. Common/Equity

Cayman Islands

PO Box 309, Ugland House, Grand Cayman, KY1-1104, Cayman Islands

Reckitt Benckiser (Cayman Islands) Limited Ordinary

Chile

Avenida Presidente Kennedy Lateral 5454, Oficina 1602, Vitacura, Región Metropolitana, Chile

Reckitt Benckiser Chile S.A. Ordinary

China

B01, Suite 401, Unit 2, No. 9 Dongdaqiao Road, Chaoyang District, Beijing, China

RB (China) Holding Co. Limited Capital

Contribution

Room 101, 102, 103, 2F, 4F and 5F, Building 43, No. 1015, Tianlin Road, Minhang District, Shanghai, China

RB (Shanghai) Technology Co., Ltd Ordinary

C6-8 Site 6F, No.333 Futexi Road, Waigaoqiao Free Trade Zone, Shanghai City, China

Reckitt Benckiser Home Chemical Products Trading

(Shanghai) Co. Limited

Ordinary

Ketian Aquatic Science and Technology Industrial Park, No. 3949 Kunlunshan Avenue, Lanzhou

New Area, Lanzhou City, Gansu Province, China

Lanzhou Keshi Xixili Healthcare Technologies Co. Ltd 80 Ordinary

No. 3, Canglian 1 road, ETDZ, Guangzhou, China

Reckitt & Colman (Guangzhou) Limited Ordinary

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207

Subsidiary Undertakings continued

Key: In liquidation

Registered address country different to country of registration

◊

Branch

Entity name Key

Overall % owned by

Group, if not 100% Share class name(s)

No. 34 East Beijing Road, Jingzhou, Hubei, 434001, China

Reckitt Benckiser Household Products (China)

Company Limited

Capital

Contribution

No. 99, Changjiang Da Road, Fuqiao Town, Taicang City, China

RB (Suzhou) Co. Ltd Capital

Contribution

No.1-13 Shangma, Aodong Road, High-tech Industrial Development Zone, Qingdao City, Shandong

Province, China

Qingdao London Durex Co., Limited Ordinary

Qingdao New Bridge Corporate Management

Consulting Company Limited

Ordinary

Room 1605, No.660 Shangcheng Road, Pudong District, Shanghai City, China

SSL Healthcare (Shanghai) Limited Ordinary

Room 1701, No. 1033, Zhao Jia Bang Road, Xuhui District, Shanghai, China

RB & Manon Business Co. Limited 90 Capital

Contribution

Room 2109, Floor 2, No.10 Chaoyangmenwai Street, Chaoyang District, Beijing City, China

Tai He Tai Lai Culture Communication Co Limited

Maker Space No.13, Building A3, Double Innovation Center, No.2 Shuguang Road, Economic and

Technological Development Zone, Jingzhou City, Hubei Province, China

RB & Manon Business Co., Ltd - Jingzhou Branch

Unit 4205-4210, 42F, Gateway Building Hongqiao Road 3#, Xuhui District, Shanghai, China

RB (China) Holding Co. Ltd Shanghai Branch

Colombia

Calle 76 No 11-17, Edificio Torre, Los Nogales Piso 2, Bogota, CO, Colombia

Mead Johnson Nutrition Colombia Ltda Ordinary

RB (Health) Colombia S.A.S. Ordinary

Carrera 6 #45-105, Cali, Colombia

Reckitt Benckiser Colombia S.A Ordinary

Costa Rica

San Jose-Escazu En Escazu Corporate Center, Setimo Piso, Costado Sur De Multiplaza Escazu,

Costa Rica

Entity name Key

Overall % owned by

Group, if not 100% Share class name(s)

RBHCR Health Reckitt Costa Rica Sociedad

Anónima

Common/Equity

Reckitt Benckiser (Centroamérica) S.A. Ordinary

Croatia

Ulica Grada Vukovara 269d, 10 000 Zagreb, Hrvatska, Croatia

Reckitt Benckiser d.o.o. Ordinary

Cyprus

1 Lampousas Street, P.C. 1095, Nicosia, Cyprus

Gainbridge Investments (Cyprus) Limited Ordinary

Czech Republic

Vinohradská 2828/151, 130 00 Praha 3-Žižkov, Czech Republic

RB (Hygiene Home) Czech Republic, spol. s.r.o. Ordinary

Reckitt Benckiser (Czech Republic) spol s.r.o. General Partner/

Partnership

Interest

Denmark

Vandtårnsvej 83 A, 2860, Søborg, Denmark

RB Health Nordic A/S Ordinary

RB Hygiene Home Nordic A/S Ordinary

Dominican Republic

Av. Winston Churchill No. 1099 Torre Acrópolis, Piso 12, Santo Domingo, República Dominicana

Mead Johnson Nutrition (Dominicana) S.A.

Ecuador

Av CoruñaN27-88 y Orellana, Edificio Coruña Plaza 7mo Piso, Quito, 170150, Ecuador

RB Health Ecuador Cía. Ltda Ordinary

Oficina 4C, Av. 12 de Octubre, #26-48 y Orellana, Edificio Mirage, Piso 4, Quito, 170525, Ecuador

Reckitt Benckiser Ecuador S.A. Ordinary

Strategic report Governance Financial statements Other information Reckitt Annual Report and Accounts 2024

208

Entity name Key

Overall % owned by

Group, if not 100% Share class name(s)

Egypt

Polyom Building, 22 Off Road 90, Fifth District, Fifth Settlement, New Cairo, Cairo, Egypt

Reckitt Benckiser Egypt Limited Ordinary

Building A1, Second Floor, Plot #A14b01, Cairo Festival City, First District, Fifth Settlement, New

Cairo, Cairo, Egypt

Reckitt Benckiser Hygiene Home Egypt Limited Ordinary

Estonia

Harju maakond, Rae vald, Rae küla, Raeküla tee 5, 75310, Estonia

Reckitt Benckiser (Latvia) SIA Eesti filiaal

Finland

Itsehallintokuja 6, 02600 Espoo, Finland

RB Health Nordic A/S sivuliike Suomessa

RB Hygiene Home Nordic A/S, sivuliike Suomessa

France

38 rue Victor Basch- 91300 Massy, France

Airwick Industrie SAS Ordinary

RB Holding Europe Du Sud SAS Ordinary

RB Hygiene Home France SAS Ordinary

Reckitt Benckiser France SAS Ordinary

Reckitt Benckiser Healthcare France SAS Ordinary

102 rue de Sours, 28000, Chartres, France

Reckitt Benckiser Chartres SAS Ordinary

Germany

Darwinstrasse 2-4, 69115, Heidelberg, Germany

RB Hygiene Home Deutschland GmbH Capital

Contribution

Reckitt & Colman Sagrotan

Verwaltungsgesellschaft GmbH

Common/Equity

Reckitt Benckiser Detergents GmbH Ordinary

Entity name Key

Overall % owned by

Group, if not 100% Share class name(s)

Reckitt Benckiser Deutschland GmbH Common/Equity

Reckitt Benckiser Holding GmbH & Co KG Capital

Contribution

Heinestrasse 9, 69469, Weinheim, Germany

Kukident GmbH Common/Equity

Robert-Koch-Straße 1, 69115, Heidelberg, Germany

Propack Produkte fur Haushalt und Korperpflege

GmbH

Ordinary

Reckitt Benckiser Global R&D GmbH Common/Equity

Greece

7 Taki Kavalieratou Street, Kifissia, 145 64, Greece

Reckitt Benckiser Hellas Healthcare S.A. Ordinary

Reckitt Benckiser Hellas Hygiene Home S.A. Ordinary

Guernsey

1st and 2nd Floors, Elizabeth House, Les Ruettes Brayes, St Peter Port, GY1 1EW, Guernsey

Reckitt Benckiser Holdings (Channel Islands) Limited Bonus, Ordinary

Hong Kong

Room 2001, 20/F, Greenfield Tower, Concordia Plaza, No.1 Science Museum Road, Tsim Sha Tsui,

Kowloon, Hong Kong

RB & Manon Business Limited 90 Ordinary

RB & Manon Hygiene Home Limited 80 Ordinary

Rooms 2206-11, 22 Floor, Chubb Tower, Windsor House, 311 Gloucester Road, Causeway Bay, Hong Kong

London International Trading (Asia) Limited Ordinary

Reckitt Benckiser Hong Kong Limited Ordinary

Hungary

Bocskai út 134-146, Budapest, H-1113, Hungary

RB (Hygiene Home) Hungary Kft Ordinary

Reckitt Benckiser Kereskedelmi Kft General Partner/

Partnership Interest

Reckitt Benckiser Tatabánya Kft Ordinary

Subsidiary Undertakings continued

Key: In liquidation

Registered address country different to country of registration

◊

Branch

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Subsidiary Undertakings continued

Key: In liquidation

Registered address country different to country of registration

◊

Branch

Entity name Key

Overall % owned by

Group, if not 100% Share class name(s)

India

DLF Cyber Park, 6th & 7th Floor (Tower C), 405 B, Udyog Vihar Phase III, Sector 20, Gurugram,

Haryana, 122016, India

Reckitt Benckiser (India) Private limited Common/Equity

Reckitt Benckiser Healthcare India Private Limited 99.999934 Ordinary

Unit No. 54, 5th Floor, Kalpataru Square, Andheri-Kurla Road, Andheri (East), Mumbai, Maharashtra,

400059, India

Mead Johnson Nutrition (India) Private Limited Ordinary

Reckitt Piramal Private Limited 99.9999 Ordinary

Indonesia

Jl. Raya Narogong, Chamber A.I, Kel. Pasirangin, Kec Cileungsi , Kab. Bogor. Provinsi. Jawa Barat,

16820, Indonesia

PT Reckitt Benckiser Trading Indonesia Ordinary

Treasury Tower 58th Floor, District 8, SCBD, Jalan Jendral Sudirman Kav 52-53, Jakarta, 12190,

Indonesia

PT Mead Johnson Indonesia 90.1 Ordinary

PT Reckitt Benckiser Indonesia Ordinary

Treasury Tower 59th Floor, District 8, SCBD, Jalan Jendral Sudirman Kav 52-53, Jakarta, 12190,

Indonesia

Pt. Reckitt Benckiser Hygiene Home Indonesia Ordinary

Pt. Reckitt Benckiser Hygiene Home Trading Indonesia Ordinary

Islamic Republic of Iran

1st Floor, unit 11, No.88 Baran Building, Sayed Road, Opposite Mellat Park, Vali-e-Asr Avenue,

Tehran, Islamic Republic of Iran

Reckitt Benckiser Pars PJSC Ordinary

Ireland

c/o TMF Group, Ground Floor, Two Dockland Central, Guild Street, North Dock, Dublin, D01 K2C5,

Ireland

Dorincourt Holdings (Ireland) Limited Ordinary

Reckitt Benckiser Ireland Limited Ordinary

Reckitt Benckiser Management Services Unlimited

Company

Ordinary-A, B, C, D,

E, F, G, H, I, J, K

Entity name Key

Overall % owned by

Group, if not 100% Share class name(s)

6th Floor, 2 Grand Canal Square, Dublin 2, Ireland

RB Ireland Hygiene Home Commercial Limited Ordinary

Israel

6A Hangar Street, PO Box 6440, I.Z., Neve Nee'man B, Hod Hasharon, 457703, Israel

Reckitt Benckiser (Near East) Limited Ordinary

Italy

Via Spadolini 7, 20141, Milano, Italy

Reckitt Benckiser Commercial (Italia) S.r.l. Quota

Reckitt Benckiser Healthcare (Italia) S.p.A. Ordinary

Reckitt Benckiser Holdings (Italia) S.r.l. Quota

Reckitt Benckiser Italia SpA Ordinary

Japan

3-20-14 Higashi-Gotanda, Shinagawa-ku, Tokyo, 141-0022, Japan

Reckitt Benckiser Asia Pacific Limited

Sumitomo Fudosan Takanawa Park Tower 14F, 3-20-14 Higashi-Gotanda, Shinagawa-ku, Tokyo,

141-0022, Japan

Reckitt Benckiser Japan Ltd Ordinary

Jersey

44 Esplanade, St Helier, JE4 9WG, Jersey

SSL Capital Limited Ordinary

IFC 5, St. Helier, JE1 1ST, Jersey

Reckitt & Colman (Jersey) Limited Ordinary

Reckitt & Colman Capital Finance Limited Ordinary-A,

Ordinary-B

Reckitt Benckiser Jersey (No.3) Limited Ordinary

Reckitt Benckiser Jersey (No.5) Limited Ordinary

Reckitt Benckiser Jersey (No.7) Limited Ordinary,

Redeemable

Preference - Class

A/C/D

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Entity name Key

Overall % owned by

Group, if not 100% Share class name(s)

Kazakhstan

Bld. 15/A, Koktem-1, Almaty, 050040, Kazakhstan

Reckitt Benckiser Health Kazakhstan LLP Charter Capital

Office 302, Building 15a, Koktem-1, Micro District,

Almaty City, Kazakhstan

Reckitt Benckiser Kazakhstan LLP Ordinary

Kenya

Plot 209/2462, Likoni Road, Nairobi, Kenya

Reckitt Benckiser East Africa Limited 99.98990909 Ordinary

14 Riverside Drive, Arlington Building, 3rd Floor, Nairobi, 209/19, Kenya

Reckitt Benckiser Health Kenya Limited Ordinary

LR.NO.1870/1/569, 2nd Floor, Apollo Centre, Ring Road Westlands, Kenya

Reckitt Benckiser Services (Kenya) Limited Ordinary

Latvia

Strēlnieku iela 1A - 2, Rīga, LV-1010, Latvia

Reckitt Benckiser (Latvia) SIA Ordinary

Lithuania

Vilniaus m. sav. Vilniaus m. Olimpiečių g. 1A, Lithuania

Reckitt Benckiser (Latvia) SIA LT filialas

◊ -

Luxembourg

1 Rue de la Poudrerie, Leudelange, L-3364, Luxembourg

Canterbury Square Holdings S.à.r.l Ordinary-A

RB Holdings (Luxembourg) S.à.r.l Ordinary-A

RB Holdings Luxembourg (2018) S.à.r.l Ordinary

Reckitt Benckiser Investments (No. 1) S.à.r.l Ordinary

Reckitt Benckiser Investments (No. 2) S.à.r.l Ordinary

Reckitt Benckiser Investments (No. 4) S.à.r.l Ordinary

Reckitt Benckiser Investments (No. 5) S.à.r.l Ordinary

Reckitt Benckiser Investments (No. 7) S.à.r.l Ordinary

Entity name Key

Overall % owned by

Group, if not 100% Share class name(s)

Reckitt Benckiser Investments (No. 8) S.à.r.l Ordinary

Reckitt Benckiser S.à.r.l. Ordinary-A

Reigate Square Holdings S.à.r.l. Ordinary

Reckitt Benckiser N.V.

Reckitt Benckiser Holdings (USA) Limited

Malaysia

Level 7, Menara Milenium, Jalan Damanlela, Pusat Bandar Damansara Damansara Heights 50490,

Kuala Lumpur, W.P., Malaysia

Mead Johnson Nutrition (Malaysia) Sdn Bhd Ordinary

RB (Health) Malaysia Sdn Bhd Ordinary

Reckitt Benckiser (Malaysia) Sdn Bhd Ordinary

Mexico

Av de las Granjas 972, Col. Santa Barbara, Azcapotzalco, CDMX, 02230, Mexico

Manufactura MJN, S. de R.L. de C.V. Ordinary

Av. Ejército Nacional No.769, Corporativo Miyana Torre B, Piso 6, Alcaldía Miguel Hidalgo, Colonia

Granada, CP 11520, Mexico

Mead Johnson Nutricionales de México, S. de R.L.

de C.V.

Ordinary

RB Health México, S.A. de C.V. Ordinary-A,

Ordinary-B

RB Health Services, S.A. de C.V. Ordinary

Reckitt Benckiser Mexico, S.A. de C.V. Ordinary - Fixed/

Variable

Servicios Nutricionales Mead Johnson S.de R.L. de C.V. Ordinary

Calzada de Tlalpan No. 2996, Col. Ex Hacienda Coapa, Del. Coyoacán, Cd. de México, C.P.

04980, Mexico

RB Salute Mexico S.A. de C.V. Ordinary

Circuito Dr Gustavo Baz, 7, No. 7, Fracc Industrial El Pedregal, Atizapan de Zaragoza, Edomex, Mexico

Reckitt Benckiser Services S.A. de C.V. Ordinary

Morocco

59 Boulevard Zerktouni, Residence Les Fleurs 6eme étage, Casablanca, Morocco

Reckitt Benckiser Morocco SARL/AU Ordinary

Subsidiary Undertakings continued

Key: In liquidation

Registered address country different to country of registration

◊

Branch

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Subsidiary Undertakings continued

Key: In liquidation

Registered address country different to country of registration

◊

Branch

Entity name Key

Overall % owned by

Group, if not 100% Share class name(s)

Netherlands

225 North Canal Street, Floor 25, Chicago IL 60606, United States

Mead Johnson One C.V. ◊ Membership

Interest

Mead Johnson Two C.V. ◊ Membership

Interest

Siriusdreef 14, 2132 WT, Hoofddorp, The Netherlands

Beleggingsmaatschappij Lemore B.V. Ordinary

Central Square Holding B.V. Ordinary

Grosvenor Square Holding B.V. Ordinary

Hamol NL B.V. Ordinary

Maddison Square Holding B.V. Ordinary

MJN Global Holdings B.V. Ordinary

MJN Holdings (Netherlands) B.V. Ordinary

MJN Innovation Services B.V. Ordinary

New Bridge Holdings B.V. Ordinary

RB Hygiene Home Netherlands BV Ordinary

RB LATAM Holding B.V. Ordinary

RB NL Brands B.V. Ordinary

Reckitt Benckiser (South America) Holding B.V. Ordinary

Reckitt Benckiser (Spain) B.V. Ordinary

Reckitt Benckiser Brands Investments B.V. Ordinary

Reckitt Benckiser Calgon BV Ordinary

Reckitt Benckiser Fabric Treatment B.V. Ordinary

Reckitt Benckiser Finish B.V. Ordinary

Reckitt Benckiser FSIA B.V. Ordinary

Reckitt Benckiser Healthcare B.V. Ordinary

Reckitt Benckiser Hygiene Home Brands B.V. Ordinary

Reckitt Benckiser Laundry Detergents (No. 1) B.V. Ordinary

Reckitt Benckiser Laundry Detergents (No. 2) B.V. Ordinary

Reckitt Benckiser Lime-A-Way B.V. Ordinary

Reckitt Benckiser Marc B.V. Ordinary

Reckitt Benckiser N.V. Ordinary

Entity name Key

Overall % owned by

Group, if not 100% Share class name(s)

Reckitt Benckiser Oven Cleaners BV Ordinary

Reckitt Benckiser Power Cleaners B.V. Ordinary

Reckitt Benckiser Tiret B.V. Ordinary

Reckitt Benckiser Vanish B.V. Ordinary

Schiphol Boulevard 267, 1118, BH Schiphol, Netherlands

Reckitt Benckiser (ENA) B.V. Ordinary

Reckitt Benckiser Treasury Services (Nederland) B.V. Ordinary

New Zealand

2 Fred Thomas Drive, Takapuna, Auckland, 0622, New Zealand

RB (Hygiene Home) New Zealand Limited Ordinary

Reckitt Benckiser (New Zealand) Limited Ordinary

SSL New Zealand Limited Capital

Contribution

Nigeria

12, 11th Floor Heritage Place, 21 Lugard Avenue Ikoyi, Lagos State, Nigeria

Reckitt Benckiser Nigeria Limited Ordinary

Norway

Henrik Ibsens gate 60A, 0255 Oslo, Norway

RB Health Nordic, NUF

RB Hygiene Home Nordic NUF

Pakistan

Tenancy 04 & 05, 3rd Floor, Corporate Office Block, Dolmen City, HC, Block 4, Scheme 5, Clifton,

Karachi, 75600, Pakistan

Reckitt Benckiser Pakistan Limited 98.68464476 Ordinary

Panama

Apartment 6G, 6th Floor, Edificio Bladex, Calle Avenida La Rotonda. Business Park, Corregimiento

de Juan Diaz, Urbanización Costa Del Este, Provincia De Panamá, Distrito de Panama, Panama

Mead Johnson Nutrition (Panama), S.de R.L. Ordinary

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212

Entity name Key

Overall % owned by

Group, if not 100% Share class name(s)

Peru

Av. Republica de Panama # 2577, Urb. Santa Catalina, La Victoria, Lima, Peru

Reckitt Benckiser Peru S.A. Ordinary

Calle Dean Valdivia No. 148, Torre 1, Ofic. 501, Urb. Jardín, San Isidro, Lima, Peru

RB Health Peru S.R.L Ordinary

Philippines

2309 Don Chino Roces Avenue Extension, Makati City, PH 1321, Philippines

2309 Realty Corporation 61.996 Ordinary-A,

Ordinary-B

Mead Johnson Nutrition (Philippines), Inc. 99.99964222 Ordinary

Sphinx Holdings Company, Inc. 32.8125 Common,

Preference

3rd Floor Mead Johnson Nutrition Philippines Inc., 2309 Don Chino Roces Extension, Makati City,

1231, Philippines

Reckitt Benckiser Healthcare (Philippines), Inc. 99.99783148 Common,

Preference

Poland

Nowy Dwór Mazowiecki, Ul. Okunin 1, 05-100, Poland

RB (Hygiene Home) Poland Sp. z.o.o. Ordinary

Ul. Okunin 1, 05-100 Nowy Dwor Mazowiecki , Poland

Reckitt Benckiser (Poland) S.A. Ordinary

Reckitt Benckiser Production (Poland) Sp z.o.o. Ordinary

UL. Wołoska 22, 02-675, Warsaw, Poland

Mead Johnson Nutrition Trading Poland S.p z.o.o. Membership

Interest

Reckitt Business Services sp. z o.o. General Partner/

Partnership

Interest

Portugal

Estrada Malhada dos Carrascos, 12, Porto Alto, 2135-061, Samora Correia, Portugal

Reckitt Benckiser Porto Alto Lda Quota

Rua D. Cristóvão da Gama, n.º 1, 1º, C/D, 1400-116, Lisboa, Portugal

Entity name Key

Overall % owned by

Group, if not 100% Share class name(s)

Reckitt Benckiser (Portugal), S.A. Ordinary

Reckitt Benckiser Healthcare, Lda Quota

Republic of Korea

24th Floor, Two IFC, 10 Gukjegeumyung-ro, Youngdeungpo-gu, Seoul, 07326, Republic of Korea

Oxy Reckitt Benckiser LLC Capital

Contribution

Puerto Rico

Los Frailes Industrial Park, Ave. Esmeralda, Calle C # 475, Guaynabo, 00969, Puerto Rico

Mead Johnson Nutrition (Puerto Rico) Inc.

Romania

Iancu de Hunedoara Boulevard, Nr. 48, 11th Floor, Crystal Tower Building, 1st District, Bucharest,

011745, Romania

Reckitt Benckiser (Romania) S.R.L General Partner/

Partnership

Interest

Str. Grigore Alexandrescu 89-97, Aripa Vest, Et. 5, Finish room, Sect. 1, Bucuresti, 010624, Romania

RB (Hygiene Home) Romania S.R.L Ordinary

Russian Federation

3rd Floor, 4 Shluzovaya emb., Zamoskvorechye Municipal district, Moscow, 115114, Russia

Reckitt Benckiser Healthcare LLC Charter Capital

Reckitt Benckiser IP LLC Charter Capital

4 Shluzovaya emb., Zamoskvorechye Municipal district, Moscow, Russia

Reckitt Benckiser LLC Ordinary

Klin City, Tereshkovoy Street, 1, 14160052/1, Moscow Region, Russian Federation

Branch of Reckitt Benckiser LLC in city Klin,

Moscow region, Russia

Saudi Arabia

Office number 51, Fifth floor, Mukmal Plaza Center, Al Hamra District Palestine Street, Jeddah

City, Saudi Arabia

Reckitt Sanabil for Trading Co LLC 51.00000036 Ordinary

Subsidiary Undertakings continued

Key: In liquidation

Registered address country different to country of registration

◊

Branch

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Subsidiary Undertakings continued

Key: In liquidation

Registered address country different to country of registration

◊

Branch

Entity name Key

Overall % owned by

Group, if not 100% Share class name(s)

Singapore

12 Marina Boulevard, #19-01 Marina Bay Financial Centre, 018982, Singapore

Mead Johnson Nutrition (Asia Pacific) Pte. Ltd. Ordinary

Mead Johnson Nutrition (Singapore) Pte. Ltd. Ordinary

Mead Johnson Nutrition Holdings (Singapore) Pte. Ltd. Ordinary

Reckitt Benckiser (Singapore) Pte. Limited Ordinary

138 Cecil Street, #13-02 Cecil Court, 069538, Singapore

RB & Manon Business Limited Singapore Branch

Slovakia

Drieňová 3, 821 08 Bratislava, Slovakia

RB (Hygiene Home) Slovakia spol. s.r.o Ordinary

Reckitt Benckiser (Slovak Republic), spol s.r.o. General Partner/

Partnership

Interest

South Africa

Ground Floor, North Wing, Allandale Building, 39 Magwa Crescent, Waterfall City, Midrand,

Gauteng, 2090, South Africa

Reckitt Benckiser Pharmaceuticals (Proprietary)

Limited

Ordinary

Reckitt Benckiser South Africa Health Holdings

(Pty) Limited

Ordinary

Reckitt Benckiser South Africa Proprietary Limited Ordinary

Spain

Carrer de Mataró, 28, 08403, Granollers, Barcelona, Spain

Norwich Square Holdings S.L.U. Ordinary

RB Square Holdings (Spain) S.L. Ordinary-A,

Ordinary-B

Reckitt Benckiser (España), S.L.U. Ordinary

Reckitt Benckiser (Granollers) S.L.U. Ordinary

Reckitt Benckiser Healthcare S.A.U. Ordinary-A,

Ordinary-B

Entity name Key

Overall % owned by

Group, if not 100% Share class name(s)

Fray Carbo, 24, 08400, Granoliers, Spain

Relcamp Aie + Ordinary

No. 151, Avda. Can Fatjó, Rubi, Barcelona, Spain

SSL Healthcare Manufacturing S.A.U. Ordinary

Sri Lanka

No.25, Shrubbery Garden, COLOMBO-04, Sri Lanka

Reckitt Benckiser (Lanka) Limited 99.99905658 Ordinary

Sweden

Box 190, 101 23 Stockholm, Sweden

SSL Healthcare Sverige AB Ordinary

c/o Reckitt Benckiser Nordic A/S, Danmark Filial, Regeringsqatan 29, 111 53, Stockholm, Sweden

RB Health Nordic A/S, filial

Vretenvägen 2, 4th Floor, 171 54 SOLNA, Sweden

RB Hygiene Home Nordic A/S, filial

Switzerland

Richtistrasse 5, 8304 Wallisellen, Switzerland

RB Hygiene Home Switzerland AG Ordinary

Reckitt Benckiser (Switzerland) AG Ordinary

Reckitt Benckiser AG Ordinary

Taiwan

6F, No. 136, Sec. 3, Ren-Ai Rd., Da-An Dist., Taipei City 10, 10657, Taiwan

Reckitt Benckiser Hong Kong Limited Taiwan

branch

8 of 6F, No. 205, Section 1, Dunhua South Road, Da’an District, Taipei, Taiwan (Province of China)

RB & Manon Business Limited Taiwan Branch

Thailand

100 Moo 5, Bangsamak Sub-District, Bangpakong District, Chachoengsao Province 24180, Thailand

SSL Manufacturing (Thailand) Limited 99.99 Ordinary-A,

Ordinary-B

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Entity name Key

Overall % owned by

Group, if not 100% Share class name(s)

65 Moo 12 Lardkrabang-Bangplee Road, Bangplee Yai District, Bangplee, Samutprakarn, 10540,

Thailand

Reckitt Benckiser Healthcare Manufacturing

(Thailand) Limited

99.99 Ordinary

No. 388 Exchange Tower, 14th Floor, Sukhumvit Road, Klongtoey, Bangkok, TH 10110, Thailand

Mead Johnson Nutrition (Thailand) Ltd 100 Common/Equity

RB Hygiene Home (Thailand) Limited 99.99 Common/Equity

Reckitt Benckiser (Thailand) Limited 99.99 Ordinary

Reckitt Benckiser Holding (Thailand) Limited 45 Common/Equity,

Preference

Suite 402, 4th Floor, No. 235 Dong Khoi Street, Ben Nghe Ward, District 1, Ho Chi Minh City, Vietnam

The Representative Office of Reckitt Benckiser

(Thailand) Ltd in Ho Chi Minh City

◊ -

Turkey

Esentepe Mah., Büyükdere Cad., Tekfen Blok No:209/2, Şişli, İstanbul, Turkey

Reckitt Benckiser Ev ve Hijyen Ürünleri Levent Şubesi

Esentepe Mahallesi Büyükdere Caddesi Tekfen, Tower No: 209 A Blok D:2 34394 4., Levent, Şişli,

İstanbul, Turkey

Reckitt Benckiser Temizlik Malzemesi Sanayive

Ticaret A.S.

Capital

Contribution

Orta Mahallesi Demokrasi, Caddesi Benckiser Sitesi No.92, Tuzla, Istanbul, Turkey

Reckitt Benckiser Ev ve Hjyen Ürünleri A.Ş. Capital

Contribution

Ukraine

28A Stepana Bandery, Bld.G, Office 80, Kiev, 04073, Ukraine

Reckitt Benckiser Household and Health Care

Ukraine LLC

Charter Capital

Reckitt Benckiser Hygiene Home Ukraine LLC Charter Capital

40-Richchia Zhovtnia avenue, 120, 1 Block, Kyiv, 03127, Ukraine

Medcom Marketing and Prodazha Ukraine LLC Charter Capital

Entity name Key

Overall % owned by

Group, if not 100% Share class name(s)

United Arab Emirates

309, Floor 3, Dubai Science Park Laboratory Complex, Dubai, United Arab Emirates

Reckitt Benckiser Arabia * -

Al Seer Corporate Office, Behind Al Tayer Motors, Sheikh Zayed Road, Al Quoz Industrial Area 3,

Dubai, 31587, United Arab Emirates

Reckitt Benckiser Arabia Trading LLC 48.6897 Ordinary

Level 27, Tower B, JAFZA One, Jebel Ali Free Zone, Dubai, PO Box 461344, United Arab Emirates

RB Hygiene Home Arabia FZE Ordinary

Reckitt Benckiser Arabia FZE Ordinary

Office 1801, 1803, 1804, Emaar Real Estate Burj Khalifa, Dubai, United Arab Emirates

Reckitt Benckiser (RUMEA) Limited – Dubai Branch

Unit 05, Level 3, Gate Village Building 04, Dubai Investment Financial Centre, PO BOX 677, United

Arab Emirates

RB Investment Company Limited 0.5 Ordinary-A,

Ordinary-B

United Kingdom

103-105 Bath Road, Slough, Berkshire, SL1 3UH, United Kingdom

103-105 Bath Road Limited Ordinary

Access VC Limited Ordinary

Crookes Healthcare Limited Ordinary, Bonus

Cupal, Limited Ordinary, Bonus

Dakin Brothers Limited Ordinary, Bonus

Durex Limited Ordinary

eRB Trading Limited Ordinary

Glasgow Square Limited Ordinary, Bonus

Green, Young & Company Limited Ordinary, Bonus

Hamol Limited Ordinary, Bonus

Helpcentral Limited + Ordinary, Bonus

Howard Lloyd & Company,Limited Ordinary

LI Pensions Trust Limited Ordinary

Linden Germany A Limited Ordinary

Linden Germany B Limited Ordinary

Subsidiary Undertakings continued

Key: In liquidation

Registered address country different to country of registration

◊

Branch

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Subsidiary Undertakings continued

Key: In liquidation

Registered address country different to country of registration

◊

Branch

Entity name Key

Overall % owned by

Group, if not 100% Share class name(s)

Lloyds Pharmaceuticals Ordinary, Bonus

London International Group Limited Ordinary B

LRC Products Limited Ordinary

LRC Secretarial Services Limited Ordinary

MJ UK Holdings Limited Ordinary

MJN International Holdings (UK), Ltd. Ordinary

Nurofen Limited Ordinary

Optrex Limited Ordinary

Pharmalab Limited Ordinary, Bonus

R&C Nominees Limited Ordinary

R&C Nominees One Limited Ordinary

R&C Nominees Two Limited Ordinary

RB (China Trading) Limited 80 Ordinary,

Ordinary-A

RB Asia Holding Limited Ordinary

RB Holdings (Nottingham) Limited Ordinary, Bonus

RB Luxembourg (2016) Limited Ordinary

RB Luxembourg Holdings (TFFC) Limited Ordinary

RB Mexico Investments Limited Ordinary

RB Reigate (2019) Ltd. Ordinary

RB Reigate (UK) Limited Ordinary, Bonus

RB UK Commercial Limited Ordinary

RB UK Hygiene Home Commercial Limited Ordinary

RB USA (2019) Ltd. Ordinary

Reckitt & Colman (Overseas) Health Limited Ordinary

Reckitt & Colman (Overseas) Hygiene Home Limited Ordinary

Reckitt & Colman (Overseas) Limited Ordinary

Reckitt & Colman (UK) Limited Ordinary,

Irredeemable

Cumulative

Preference

Reckitt & Colman Holdings Limited Ordinary, Bonus

Reckitt & Colman Pension Trustee Limited Ordinary

Reckitt & Sons Limited Ordinary

Reckitt Benckiser (Brands) Limited Ordinary

Entity name Key

Overall % owned by

Group, if not 100% Share class name(s)

Reckitt Benckiser (Grosvenor) Holdings Limited Ordinary, Bonus

Reckitt Benckiser (Health) Holdings Limited Ordinary

Reckitt Benckiser (Hygiene Home) Holdings Limited Ordinary

Reckitt Benckiser (RUMEA) Limited Ordinary

Reckitt Benckiser (UK) Limited Ordinary

Reckitt Benckiser (USA) Limited Ordinary

Reckitt Benckiser Asia Pacific Limited Ordinary

Reckitt Benckiser Corporate Services Limited Ordinary

Reckitt Benckiser Expatriate Services Limited Ordinary

Reckitt Benckiser Finance (2005) Limited Ordinary, Bonus

Reckitt Benckiser Finance (2007) Ordinary

Reckitt Benckiser Finance (2010) Limited Ordinary, Bonus

Reckitt Benckiser Finance Company Limited Ordinary

Reckitt UK Holdings Limited Ordinary-A,

Preference

Reckitt Benckiser Health Limited Ordinary

Reckitt Benckiser Healthcare (Central & Eastern

Europe) Limited

Ordinary

Reckitt Benckiser Healthcare (CIS) Limited Ordinary

Reckitt Benckiser Healthcare (MEMA) Limited + Ordinary, Bonus

Reckitt Benckiser Healthcare (UK) Limited Ordinary

Reckitt Benckiser Healthcare International Limited Ordinary

Reckitt Benckiser Holdings (Channel Islands) Limited

Reckitt Benckiser Holdings (Luxembourg) Limited Ordinary, Bonus

Reckitt Benckiser Holdings (Overseas) Limited Ordinary

Reckitt Benckiser Holdings (TFFC) Limited Bonus

Reckitt Benckiser Holdings (USA) Limited Ordinary

Reckitt Benckiser Jersey (No.3) Limited

Reckitt Benckiser Jersey (No.5) Limited

Reckitt Benckiser Investments Limited Ordinary, Bonus

Reckitt Benckiser Limited Ordinary

Reckitt Benckiser Luxembourg (2010) Limited Ordinary

Reckitt Benckiser Luxembourg (No. 1) Limited + Ordinary

Reckitt Benckiser Luxembourg (No.2) Limited Ordinary

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Entity name Key

Overall % owned by

Group, if not 100% Share class name(s)

Reckitt Benckiser Luxembourg (No.3) Limited Ordinary, Bonus

Reckitt Benckiser Luxembourg (No.4) Limited Ordinary, Bonus

Reckitt Benckiser Service Bureau Limited Ordinary

Reckitt Benckiser Treasury (2007) Limited Ordinary-B

Reckitt Benckiser Treasury Services plc Ordinary

Reckitt Benckiser Treasury Services (Nederland) B.V.

Reckitt Benckiser USA (2010) LLC

Reckitt Benckiser USA (2013) LLC

Reckitt Benckiser USA Finance (No.1) Limited Ordinary

Reckitt Benckiser USA Finance (No.2) Limited Ordinary

Reckitt Benckiser USA Finance (No.3) Limited Ordinary

Reckitt Colman Chiswick (OTC) Limited Ordinary, Bonus

Reckitt Seton Limited Ordinary,

Convertible,

Cumulative

Preference

Reckitt Sonet (UK) Limited Ordinary

Scholl Consumer Products Limited Ordinary

Sonet Dormant Company No.1 Limited Ordinary, Deferred

Sonet Investments Limited Ordinary, Bonus

Sonet Overseas Investments Limited Ordinary, Bonus

Sonet Prebbles Limited Ordinary

Sonet Products Limited Ordinary

Sonet Seton UK Limited + Ordinary

SSL (MG) Polymers Limited + Ordinary

SSL (RB) Products Limited Ordinary

SSL International plc Ordinary

SSL Products Limited Bonus

Tubifoam Limited Ordinary, Bonus

W.Woodward, Limited Ordinary

7 Castle Street, Edinburgh, EH2 3AH

Benckiser + Ordinary, Bonus

Founders Factory (Level 7), Arundel Street Building, 180 Strand, 2 Arundel Street, London, WC2R

3DA, United Kingdom

FF Homecare & Hygiene Limited 75 Ordinary,

Preference

Entity name Key

Overall % owned by

Group, if not 100% Share class name(s)

United States

2400 W. Lloyd Expressway, Evansville IN 47721, United States

Mead Johnson & Company, LLC Ordinary

Mead Johnson Nutrition Company Ordinary

399 Interpace Parkway, Parsippany NJ 07054, United States

Biofreeze IP Holdings, LLC Membership

Interest

Blisa, L.L.C. Ordinary

Exponential Health LLC Ordinary

Lanai Holdings 1.5, Inc. Common/Equity

Mead Johnson Nutrition (Dominicana) S.A. Ordinary

Mead Johnson Nutrition (Puerto Rico) Inc. Ordinary

Mead Johnson Nutrition (Venezuela) LLC Ordinary

Mead Johnson Nutrition Nominees LLC Membership

Interest

MJ USA Holdings LLC Ordinary

MJN Asia Pacific Holdings LLC Ordinary

MJN U.S. Holdings LLC Ordinary

RB Health (US) LLC Ordinary

RB Health Manufacturing (US) LLC Ordinary

Reckitt Health Pain (US) LLC Ordinary

TheraPearl LLC Ordinary

Corporation Service Company, 251 Little Falls Drive, Wilmington, New Castle County DE 19808,

United States

LRC North America Inc. Common/Equity,

Preference

RB Manufacturing LLC Ordinary

RB USA Holdings LLC Ordinary

Reckitt Benckiser LLC Ordinary

Reckitt Benckiser USA (2010) LLC Ordinary

Reckitt Benckiser USA (2012) LLC Membership

Reckitt Benckiser USA (2013) LLC Ordinary

SSL Holdings (USA) Inc. Ordinary

Reckitt US Holdings LLC Ordinary

Subsidiary Undertakings continued

Key: In liquidation

Registered address country different to country of registration

◊

Branch

Strategic report Governance Financial statements Other information Reckitt Annual Report and Accounts 2024

217

Subsidiary Undertakings continued

Key: In liquidation

Registered address country different to country of registration

◊

Branch

Entity name Key

Overall % owned by

Group, if not 100% Share class name(s)

Vietnam

Unit 401, 4th Floor, Metropolitan Building, No. 235 Dong Khoi Street, Ben Nghe Ward, District 1, Ho

Chi Minh City, Vietnam

Mead Johnson Nutrition (Vietnam) Company Limited Capital

Contribution

Subsidiary audit exemptions

The following subsidiary undertakings are exempt from the requirements under section 479A of

the CA 2006 relating to the audit of their individual accounts, as Reckitt Benckiser Group plc has

guaranteed them under section 479C of the CA 2006.

Company Company Number

103-105 Bath Road Limited 7415344

Access VC Limited 12057280

Howard Lloyd & Company,Limited 124747

London International Group Limited 488344

MJ UK Holdings Limited 10698251

MJN International Holdings (UK), Ltd. 10773207

Optrex Limited 301618

R&C Nominees Limited 3646801

RB Holdings (Nottingham) Limited 4367123

RB Luxembourg Holdings (TFFC) Limited 8963782

RB Mexico Investments Limited 10141275

RB Reigate (2019) Ltd. 10952298

RB USA (2019) Ltd. 10996097

Reckitt & Colman (Overseas) Limited 593047

Reckitt & Colman (UK) Limited 341605

Reckitt & Sons Limited 561576

Reckitt Benckiser (Grosvenor) Holdings Limited 5698731

Reckitt Benckiser (RUMEA) Limited 8496512

Company Company Number

Reckitt Benckiser Finance Company Limited 4749202

Reckitt Benckiser Healthcare (Central & Eastern Europe) Limited 3368448

Reckitt Benckiser Healthcare (CIS) Limited 3376759

Reckitt Benckiser Holdings (Overseas) Limited 4617051

Reckitt Benckiser Holdings (USA) Limited 4906543

Reckitt Benckiser Luxembourg (2010) Limited 7323959

Reckitt Benckiser Service Bureau Limited 3605068

Reckitt Benckiser Treasury (2007) Limited 6365837

Reckitt Benckiser USA Finance (No.1) Limited 4902703

Reckitt Benckiser USA Finance (No.2) Limited 4902747

Reckitt Benckiser USA Finance (No.3) Limited 4902776

Reckitt Colman Chiswick (OTC) Limited 593046

Reckitt Seton Limited 1914860

Reckitt Sonet (UK) Limited 2285039

Sonet Dormant Company No.1 Limited 220272

Sonet Overseas Investments Limited 3671350

SSL Products Limited 1026788

Strategic report Governance Financial statements Other information Reckitt Annual Report and Accounts 2024

218

Climate-Related Financial Disclosures

Listing Rule 9.8.6R Compliance Statement

Reckitt plc has complied with the requirements

ofLR 9.8.6R by including applicable and material

climate-related financial disclosures in this

section (and by reference as indicated),

consistent withthe Taskforce on Climate-related

FinancialDisclosures (TCFD) recommendations.

Weconsider our disclosure to be consistent

withallthe TCFD Recommendations and

Recommended Disclosures including section C

ofthe 2021-TCFD Annex entitled ‘Guidance for

allSectors’ and section E of the TCFD Annex

entitled ‘Supplemental Guidance for

Non-FinancialGroups’.

In addition to these Climate-related Financial

Disclosures, we provide information on our

environmental performance and Greenhouse

Gas emissions on page 46. We consider the

potential financial impacts of climate change

inthe scenario modelling within our Viability

Statement on page 57 and impairment/

intangibles note on page 171. Detail on

ourscenario modelling can be found in our

Basis of Reporting Criteria at www.reckitt.com/

reporting-hub.

Governance

(a) Board oversight

The Board is responsible for overseeing

Reckitt’s ESG strategy, including climate-

related risks and opportunities, as set out in

itsterms of reference (schedule of matters

reserved for the Board). Through review and

monitoring, the Board ensures the integrity

ofthe Group’s corporate responsibility,

sustainability, ethics and compliance strategies,

policies, programmes and activities.

The Board discusses ESG and climate matters at

least once per year and more often as required,

alongside at least an annual review ofReckitt’s

Sustainability Ambitions. The Board regularly

reviews progress and performance against ESG

and climate targets and last did soat its May

2024 meeting. Prior to June 2024, a sub-

Committee of the Board had responsibility for

ESG and climate matters which met quarterly and

discussed climate change at every meeting.

As part of the Board’s annual review of

principal and emerging risks, sustainability and

climate risk were considered. The Board’s focus

included both ESG performance and climate

reporting regulation.

The Audit Committee also has a monitoring

function in respect of risk management and

internal control systems, which includes the

assurance framework established by

management to identify and monitor risks

identified.

See pages 69-73 and 103-104 for more detail on

our governance framework and mechanisms,

remuneration policy and Board activities during

the year

(b) Management’s role

The CEO is accountable for sustainability

performance at executive level, including

climate-related matters and agreeing new

sustainability and climate-related targets. The

CEO chairs the Group Executive Committee

(GEC) which is responsible for overseeing and

delivering Reckitt’s strategic and operational

management and ensuring collaboration

between functions and in-market operations. It

recommends and implements the strategy and

related budget as approved by the Board. The

GEC drives business and cultural

transformation, reviews business performance

and approves business development plans and

major investments. It oversees the integration

of sustainability within business operations.

With the business reorganisation in 2025, these

risk reviews will form part of routine GEC

meetings rather than as a separate meeting. This

risk review will continue on a quarterly basis.

Our Sustainability Ambitions are delivered

through the GEC and management team who

are responsible for ensuring adequate action

plans and investment are in place. Sustainability

forms part of the Supply function but leads

sustainability-related strategy development and

compliance acrossthe organisation, with

strategic directionand activity agreed at the

GEC. Programmes to meet our operational,

product and value chain targets are

implemented by our Brands, Supply Chain, R&D,

Safety, Quality and Regulatory and Compliance

teams.

We conduct monthly environmental reporting

at site and regional level. Progress against our

targets is reviewed monthly at supply chain

leadership forums and quarterly through

function and global business risk reviews,

enabling us to manage activity and deal with

emerging issues on an ongoing basis.

Executive ownership of ‘ESG transition risk’ as a

principal risk resides directly with the CEO and

the Chief Supply Officer.

Supporting these formal management

structures are cross-functional steering

committees who provide governance and

oversight across key transition risks and

sustainable product activities.

In 2024, the GEC continued to review Reckitt’s

carbon footprint and carbon reduction

strategies in support of Reckitt’s Sustainability

Ambitions, specifically our Scope 3 emissions

reduction targets. The GEC also reviewed

ongoing development of IT and Data solutions

to enable performance management of carbon

and plastics, while enabling future disclosure

requirements under emerging legislation,

particularly within the European Union.

Risk management

(a) Processes for identifying and assessing

climate-related risks

Reckitt operates an integrated company-wide

risk management process for financial and

non-financial risks which includes the

identification and monitoring of potential

impacts, mapping current controls and

developing action plans.

The Group risk assessment identifies the principal

and emerging risks with the greatest potential to

have a substantive financial or strategic impact

on the Group. The assessment is completed

annually in advance of the business strategic

planning process, taking into consideration the

outcomes of detailed risk assessments

conducted in specific areas throughout the year,

for example, climate-related physical and

transition risk scenario analysis. Additionally,

through our 2023-24 double materiality

assessment, we reassessed climate-related

impacts, risks and opportunities across our value

chain. Operational risks are assessed across sites

through annual global asset and environmental

risk reviews. Within specific climate-related

financial risks we undertake a range of analysis,

evaluation and mitigation activities which are

summarised below.

‘ESG transition risk’, including the risk of

climate-related impacts, is identified as a

principal risk, reflecting both its importance and

its central role in Reckitt’s growth strategy. We

manage the risk by embedding our sustainability

strategy and targets within R&D and our supply

chain, through customer-facing programmes

and partnership, product innovation, and our

ongoing work on decarbonisation, packaging,

ingredient management, and sustainable

sourcing programmes.

See page 52 for more detail on the Group’s risk

management approach and updates during the year

Our approach to understanding climate-related

risks and opportunities is underpinned by

scenario analysis (see below). Climate and

enterprise analytics technology (developed by

the Cambridge-based consultancy Risilience and

built on research and frameworks pioneered by

Cambridge Centre for Risk Studies) provides

quantitative analytics that inform risk

management and decision-making across the

Group. This has helped extend existing corporate

risk management activity in relation to business

continuity, which might be created in terms of

extreme weather events and other climate-

related risks.

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219

Climate-Related Financial Disclosures continued

Monitoring emerging policy and regulatory

frameworks, together with financial tracking of

fiscal policy requirements on taxation, informs

our planning activity and response to address

climate-related policy risks. We continue to

track litigation, functionally and, within our

business units and markets, we monitor

emerging regulations on climate-related

reporting and disclosure requirements.

During the year, we reviewed the risks from

climate change to identify any new or

emerging risks, and to reassess the impact of

existing risks. We performed targeted updates

to our climate-risk modelling and analysis.

Specifically, we reviewed three risks where the

climate models have changed since our prior

analysis. These included Consumer market risk,

Facility disruption and Raw material supply risk.

Overall, our exposure has decreased based on

projections for the household products sector

more broadly combined with our ongoing

efforts to decarbonise our operations and

value chain. We continued to embed the

management of climate-related risks and

opportunities within our enterprise risk

management processes.

Strategy

We remain committed to delivering our

science-based targets and working towards net

zero by 2040. In line with the routine 5-yearly

review cycle, we will be reviewing our science-

based targets during 2025. Our Sustainability

Ambitions are embedded into our business

strategy for growth, and support both resilience

and opportunities for our operations and brands.

(a) Climate-related risks and opportunities

over the short, medium and long term

We consider physical and transition risks from

climate change over the short term (up to

three years) in line with our Group risk

assessment, over the medium term (three to

five years) in line with our strategic planning

cycle, and over the longer term (10 years+) in

line with the useful life of brand intangible

assets and through our work with Risilience.

Short to medium term

From our analysis over the past three years,

transition-related risks consistently emerge as

having the greatest potential impact in the

short to medium term. Specifically, changing

consumer preference in favour of low impact

products and policy-driven carbon price

increases risk, most significantly in a 1.5°C

scenario. Policy risks identified include energy

and commodity cost rises across our

operations, upstream and downstream with

our value chain. A more likely, phased policy

approach and changes in consumer preference,

alongside our ongoing mitigation activity to

reduce emissions across our supply networks

and innovation in more sustainable products,

would not be material for Reckitt. While we are

seeing an increase in the frequency and

severity of extreme weather events, physical

risk represents a smaller proportion of total

earnings value than transition risk.

Long term

In the longer term, we expect increases in the

frequency and severity of extreme weather

events, water stress and higher ambient

temperatures to impact our global sites, supply

networks and consumer value chains. Changes

to regional climates may lead to a reduction in

the availability of natural raw materials and

associated costs and the nature of products

that are most viable in certain regions may

change. The aggregate impact of all modelled

physical risks is currently not material.

Climate scenario analysis

Since 2018, we have conducted climate-risk

modelling and scenario analysis to consider

thelonger-term impacts of climate change

andto identify emerging climate-related

risksand opportunities.

In partnership with Risilience, we have

developed a digital twin model of our

business.The Climate Risilience™ platform

captures Reckitt’s commercial and physical

footprint, including financial, operational,

emissions and raw materials data. It enables

usto assess the impact of multiple climate

scenarios.

The analysis provides quantitative earnings

value at risk estimations over a five- and

10-year timeframe and a long-term qualitative

risk outlook up to 20 years.

i. Scenarios used

Our modelling considers five climate scenarios.

These scenarios are a combination of the

SSP-RCP pathways from the Intergovernmental

Panel on Climate Change’s (IPCC) Sixth

Assessment Report for both physical and

transition risks (SSP1–SSP 8.5).

We focus on two scenarios which are

considered to represent a best and worst case

scenario for physical and transition risks, and

which highlight the variation in risks and

opportunities in meeting our science-based

targets by 2030 and net zero ambition by 2040:

• SSP1-1.9 (1.5°C pathway aligned to the Paris

Ambition) represents the most rapid

transition pathway as extreme actions are

taken to reduce emissions globally with

widespread policy changes to achieve net

zero by 2050

• SSP3-7.0 (3°C aligned to Current Policy) is

defined by the climate-related policies in place

today i.e. if no further policy action is taken

See our Basis of Reporting Criteria for detail on

the modelled pathways used at reckitt.com/

reporting-hub

ii. Risk types considered

We modelled the potential impact of transition

risks derived from policy development,

consumer preference change, investor

sentiment, asset liabilities, climate activism and

litigation, together with acute and chronic

physical risks to the value chain, including

disruption to our direct and upstream operations

and the supply of natural raw materials.

Specifically, we modelled the potential financial

impacts of climate change by region, product,

facility and hazard (i.e. drought, flooding,

heatwaves). For the purposes of our disclosure,

we aggregate and present consolidated results

for the Group global business. The potential

material earnings value at risk is quoted as a

range reflecting the uncertainty and assumptions

associated with climate-related modelling.

iii. Climate-related risks and potential financial

impacts

The table below summarises the potential

earnings value at risk associated with our

modelled risks over the short to medium term

(up to five years) and a qualitative assessment

of how these risks could evolve over the longer

term (10 to 20 years). Our potential earnings

value at risk estimations represent gross risk for

the Group as a whole. Materiality is assessed

using the same thresholds as our financial

statements.

We have modelled the impacts of the

following risks:

• Market risk: Consumer preference change –

the impact of changing consumer preferences

and sustainable purchasing trends including

the potential uptake rates of consumers

transitioning from conventional to less

emissions- intensive products and services,

including single use vs reusable packaging,

organic vs chemical cleaners, concentrates,

and dairy vs alternative proteins.

• Market risk: Investor sentiment – the risks and

effects stemming from changes to the

discount rate, relative to the economic sector,

transition pathway, debt and equity structure

• Policy risk: Carbon price legislation – an

increase in future carbon pricing where

policies (either emissions trading systems

orcarbon taxes) are implemented variably

inall jurisdictions

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220

Climate-Related Financial Disclosures continued

• Technology risk: Low carbon transition – the

risk of asset impairment under different

climate-related economic transitions

• Liability risk: Climate-related litigation – the

potential for litigation or civil/criminal

penalties for a company’s climate-related

activities, including greenwashing and

pollution

• Reputation risk: Climate activism – the

potential uptake rates of sector activism and

company-specific activism, including the risk

of consumer boycotts

• Facility disruption risk – the risk of physical

damage to assets from extreme weather

events (heatwaves, droughts, freezing,

flooding and windstorms), financial losses

from stock, contents and buildings damage,

and operational disruption due to the

disruption in capacity

• Raw materials supply risk – changes in the

supply of raw materials under the influence

of a changing climate and the potential

impact of decreases in yield

• Market disruption – the disruption to sales

due to customer demand fluctuations

induced by regional-scale climate threats

including heatwaves, droughts and freezes

Individually, the modelled impacts of these risks are not material to our business under the five scenarios assessed. The aggregate potential impact

ofthese risks manifesting under a Current Policy (3°C) and Paris Ambition (1.5°C) pathway is outlined below.

The risk values presented represent gross risk to the Group and assume none of the mitigating actions outlined below are in place.

Pathway

Unmitigated

potential annual

impact over 5 years 5–10-year modelled scenario impacts andassumptions (to 2030)

10–20-year modelled scenario impacts and

assumptions (to2040-2050)

3°C

Current Policy

Not material Consumer preference change

• Conventional shopping preferences continue, with existing levels of uptake for sustainable options continuing,

resulting in only minimal decline in demand for conventional products

3°C

Current Policy

Not material Other modelled physical and transition risks

• Carbon prices remain between $5-8 ($/tCO

e) up to 2050 with inconsistent global implementation. Sectors

covered by policies today remain static and are not expanded

• Inaction by governments and corporates results in an acceleration of climate change, increasing public and

consumer activism is used as a mechanism for corporate accountability

• Exposure to climate-related litigation varies depending on historical emissions responsibility and the extent of

current commitment and action on addressing future emissions

• Local distribution of goods from warehouse to point of sale is disrupted and/or consumer demand fluctuates as a

result of climate-related weather events

• Increase in the severity of climate hazards and extreme weather events including heatwaves, freezes, droughts,

flooding and windstorms

• Raw materials production fluctuates as a result of climate variability and long-term climate change

1.5°C

Paris Ambition

£0–£130m Consumer preference change

• Consumers increasingly switch from non-sustainable products to more

sustainable options. Low-carbon alternative products progressively increase

market share, supported by policy frameworks including carbon labelling

• Market demand for sustainable

products and services becomes

mainstream. Consumer habits have

to shift more dramatically to meet

global emissions reduction targets

1.5°C

Paris Ambition

£0–£130m Other modelled physical and transition risks

• Carbon prices increase to $83 ($/tCO

e) over the next five years, radical action

by governments to reduce emissions, driven by carbon price mechanisms

• Assets intrinsically linked to the use of fossil fuels become impaired in direct

proportion to the rate at which fossil fuels are phased out

• Public sentiment towards climate change remains strong and persistent and

decarbonisation pathways are met or exceeded without major disruption to

economic activity

• The ‘consumer staples’ sector experiences relatively low exposure to capital

flight during economic transition

• Local distribution of goods from warehouse to point of sale is disrupted and/

or consumer demand fluctuates as a result of climate-related weather events

• Raw materials production fluctuates as a result of climate variability

• Radical action by governments to

reduce emissions, driven by

carbon price mechanisms. Carbon

prices increase significantly, with

rapid adoption across developed

economies

Strategic report Governance Financial statements Other information Reckitt Annual Report and Accounts 2024

221

Climate-Related Financial Disclosures continued

(b) Impact on business, strategy and

financial planning

Our climate scenario analysis supports financial

and operational planning. We focus activity

through routine business and financial planning

within our brands and supply chain, in annual

and three-year cycles, in order to manage risks

and deliver against our Sustainability Ambitions.

We assume that all aspects of our value chain

will be susceptible to climate-related transition

and physical risks to varying degrees.

The rate of global decarbonisation and the

implementation of associated policy

frameworks are critical determinants of the

magnitude of climate-related impacts on

Reckitt. The 1.5°C pathway assumes a fast

adoption of sustainable alternatives and a

significant reduction in consumer demand for

less sustainable and more carbon intensive

products, whereas the 3°C pathway assumes a

limited reduction in current demand.

There is potential for Reckitt brands to be

variably exposed to demand loss, depending

on the environmental impact of the product

(including raw material composition,

manufacturing and consumer use). While we

continue to see increased consumer interest in

more sustainable products, there remains a

‘say-do’ gap for the vast majority, with

consumers remaining focused primarily on

value and efficacy. This exposure therefore has

negligible current impact. Nonetheless, our

sustainable product innovation programme

continues to inform our product development

pipeline and supports our ambition for 50% of

net revenue from more sustainable products by

2030. This programme also supports activity to

reduce product carbon footprints, and is linked

to management reward incentives.

We are actively working to reduce our GHG

emissions in line with our 2030 reduction

targets for Scopes 1, 2 and 3, and our

commitment to achieving net zero by 2040.

Our Climate Transition Plan identifies where we

are targeting decarbonisation opportunities in

our operations, products and value chain. The

complexity of our global value chain requires

multiple interventions with our suppliers

andcustomers.

During 2024 we increased the breadth and

depth of data-driven analysis across our supply

chain to better identify and mitigate emissions-

intensive activities. Specifically, we are

focusing on several initiatives to reduce CO

in materials by:

• targeting suppliers to use renewable energy

in their operations;

• using less of certain ingredients while

maintaining the efficacy of products;

• using alternative ingredients with a lower

e footprint. Such substitution may take

longer if different ingredients require

qualification, particularly in regulated

products;

• reducing the water in our products by

developing concentrates which reduces the

transport footprint and packaging use; and

• using recycled materials – our targeted

switch to 25% PCR and using less virgin

plastic will deliver CO

e savings that we will

model across the value chain.

This activity contributes to reducing our

exposure to increases in carbon pricing and

other transition related risks. We have assumed

that together with shifts in consumer behaviour

and general market pricing we are able to

mitigate the risks identified above.

Our mitigation activities and the opportunities

we have identified encompass:

1. Our operations

Optimising our processes to reduce carbon

emissions throughcontinuedand increasing

support for renewable electricity and low-

carbon energy

For Scopes 1 and 2, we have made progressive

improvements in carbon reduction. Switching

from gas in low-mid thermal energy needs is a

near-term focus alongside the continued

sourcing of renewable electricity. Capital

allocation for environmental improvements on

carbon are built into current planning and

progress is reviewed monthly.

Potential damage to assets and the frequency

of such events arising from extreme weather

and other potential climate-related events

(including associated remediation costs) are

reviewed through our risk management and

business continuity programmes and connect

into our financial programmes on insurance.

Site location planning and building design

considers temperature, adverse weather and

water stress risks. Additionally, water stress

risks are mitigated by our water efficiency and

catchment area management activity, which

aims for all sites in water-stressed locations to

be water positive by 2030. Further details on

our wider environmental targets and

performance can be found on pages 46-48.

2. Product innovation

Meeting emerging consumer demand for

moresustainable products, developing

products that are well placed for a low-carbon,

low-water policy and physical environment,

alongside increased use of recycled and

recyclable materials

We use a range of tools to assess climate-

related factors across the product lifecycle,

from material sourcing to consumer use, as part

of our innovation process. Our Sustainable

Innovation Calculator informs new and existing

product development which helps us design

for lower carbon and water footprints in use,

mitigates physical risks in the marketplace and

helps us to meet emerging consumer

preferences. The calculator considers the

product carbon and water footprint, plastics

and packaging, and ingredients metrics.

Product innovation provides opportunity for

growth, by meeting emerging consumer

demands and expectations and developing

products that are well placed for emerging

fiscal policy and physical environments.

3. Supply chain resilience

Building more resilient supply chains at site

level and for key natural raw materials, and

engaging our suppliers to help measure, track

and reduce supplier-related carbon emissions

Our procurement teams continually review

supply chains to mitigate the impact of

commodity cost rises. We are also working

directly with key suppliers and third-party

manufacturers to help them measure and

progressively reduce their emissions which will

build resilience to physical and transition risks

from climate change both within our supply

chain, and for our suppliers.

Our Scope 3 emissions have reduced year-on-

year. Our principle remains to abate first and

offset last, and we prioritise reducing our

direct footprint. We are however, considering

appropriate carbon market management

approaches for the longer term. Our existing

Trees for Change programme was our first step

in this programme. We also address

deforestation risks within our wider supply

chain, working with suppliers of materials such

as palm oil. This is routinely in collaboration

with peers within the Consumer Goods Forum,

with joint activity to prevent deforestation. Our

renewed partnership with WWF will also

support action on this from 2025 onwards.

Strategic report Governance Financial statements Other information Reckitt Annual Report and Accounts 2024

222

Climate-Related Financial Disclosures continued

climate scenarios (including 2°C or lower)

Collective climate change impacts may present

risks to Reckitt’s activity. However our strategy,

targets, activity and progress help mitigate

these risks, build resilience and create future

opportunities. Our 2030 targets for 50% of net

revenue from more sustainable products, 50%

reduction in Scope 3 emissions and 65%

reduction in operational carbon emissions,

collectively enable Reckitt’s brand portfolio

and supply chain to become more resilient.

We have assessed that the modelled scenarios

and associated climate-related risks outlined

above are not material to ongoing business

operations, and that our business has

increasing resilience across a spectrum of

scenarios, including one where warming is

limited to 1.5°C. This assessment is based on a

number of factors, which include:

• the strength of our market-leading portfolio

of health and hygiene brands and core

capabilities in adapting and innovating our

existing ranges while launching new products

to meet emerging consumer demands;

• an active programme to improve the carbon,

water, plastic, chemical and packaging

footprint of our products (more sustainable

products) which accounts for 34.9% of net

revenue and which we continue to grow; and

• an extensive global and geographically

diverse sourcing base characterised by

strong and established strategic

relationships with suppliers, which gives us a

natural hedge against weather extremities.

Metrics and targets

Reckitt has established sustainability metrics

and targets to drive performance on climate

change and related environmental matters in

areas both directly controlled and across our

value chain (see dashboard page 38). We have

considered all cross-industry climate-related

metrics set out in the TCFD All Sector

guidance. The metrics set out below are those

considered to be material.

GHG emissions

Our ambition is to achieve net zero across our

value chain (excluding indirect consumer use

emissions) by 2040. We have set near-term

GHG reduction targets which cover emissions

from our operations as well as our value chain:

1. Our operations (Scope 1 and 2)

Reduce our absolute Scope 1 and 2 GHG

emissions 65% by 2030, from a 2015 base year

(SBTi validated as 1.5°C-aligned). Increase

annual sourcing of renewable electricity to

100% by 2030.

We have already surpassed this target for GHG

emissions reduction and will review the target

within our 2025 SBTi review.

2. Our value chain (Scope 3)

Reduce absolute Scope 3 GHG emissions from

purchased goods and services (associated with

ingredients and packaging materials), direct

emissions from use of sold products and end

of life treatment of sold products by 50% by

2030, from a 2015 base year (SBTi validated).

See pages 46-48 for more information on our

netzero, water, waste and packaging targets

andperformance, and our GHG emissions data,

including Scopes 1, 2 and selected Scope 3

disclosures

Climate-related physical and transition risks

and opportunities

Please refer to pages 219-220.

Capital deployment and internal

carbonpricing

We are considering an internal carbon pricing

approach, which will allow us to strengthen the

assessment of climate impact in future

investment decisions.

Remuneration

Our Long-Term Incentive Plan (LTIP) includes

net revenue from more sustainable products

(which includes our product carbon footprint)

and reduction in GHG emissions from our

operations. The CEO and CFO’s bonus

opportunities are based on the delivery of

Reckitt’s strategy, including progress against

our 2030 Sustainability Ambitions as a whole.

For more information on remuneration

measures see page 103.

Other metrics

• We track stakeholder sentiment through

routine dialogue and engagement with key

stakeholders including investors, customers

and NGOs. See more on pages 74-77. In

addition, we strive to maintain and improve

our performance in external benchmarks

andratings, including MSCI, Sustainalytics

and CDP

• We track consumer spending patterns

through sales data and broader consumer

insight and research at brand and sector

level, which informs our product innovation

programme and R&D pipeline

We are using the Transition Plan Taskforce

framework, Science Based Targets initiative

(SBTi) and Forest, Land and Agriculture (FLAG)

guidance to guide our actions.

Strategic report Governance Financial statements Other information Reckitt Annual Report and Accounts 2024

223

Alternative Performance Measures

The Annual Report and Accounts include financial information prepared in accordance with

International Financial Reporting Standards (IFRS Accounting Standards) as well as information

presented on an adjusted (non-IFRS) basis.

Financial information presented on an adjusted basis excludes certain cash and non-cash items.

These items have a pattern of recognition that is largely uncorrelated with the trading

performance of the business. Management reviews the business on this basis for the purpose of

making operating decisions and showing these adjusted measures in addition to the IFRS

measures provides useful additional information on trading performance to the users of the

Financial Statements. These adjusted measures should not be considered in isolation from, as

substitutes for, or superior to the financial measures prepared in accordance with IFRS.

The following items (adjusting items) are excluded from IFRS earnings in calculating adjusted earnings.

• Impact of business combinations, and similar purchases of equity, where IFRS accounting

results intherecognition of certain costs that are not comparable with those for internally

generated assets, (although the net revenues and other costs of these business combinations

are not adjusted for):

– amortisation of (a) acquired brands, trademarks and similar assets and (b) certain other

intangible assets recorded as the result of a business combination;

– inventory fair value adjustments;

– professional and advisor costs recorded as the result of a business combination;

– changes in the amount of consideration paid or expected to be paid (including changes in fair

value) and associated tax impacts; and

– changes to deferred tax liabilities relating to (a) acquired brands, trademarks and similar assets

and (b) certain other intangible assets recorded as the result of a business combination as the

amortisation or profit on disposal of these brands would be treated as an adjusting item.

• Profits or losses relating to the sale of brands and related intangible assets as the continued

active management of our portfolio results in the recognition of profits or losses relating to

disposals of brands and related intangible assets which are largely uncorrelated with the trading

performance ofthe business

• Recycled foreign exchange translation reserves upon the sale, liquidation, repayment of share

capital or abandonment of a subsidiary previously controlled by the Group, as the gain or loss

relates tomainly exchange movements in previous periods rather than the current period

• The reclassification of finance income/(expenses) on tax balances into income tax expense,

to align with the Group’s tax guidance. As a result, the income/(expenses) are presented as part

of income tax expense on an adjusted basis

• Other individually material items of expense or income. Some of these items are resolved

over aperiod of time such that the impact may affect more than one reporting period

Adjusted measures

• Adjusted Operating Profit and Adjusted Operating Profit margin: Adjusted operating profit

reflects the IFRS operating profit excluding items in line with the Group’s adjusted items policy.

See page 226 for details on the adjusting items and a reconciliation between IFRS operating

profit and adjusted operating profit. The adjusted operating profit margin is the adjusted

operating profit expressed asapercentage of net revenue

• Adjusted tax rate: The adjusted tax rate is defined as the adjusted continuing income tax

expense asa percentage of adjusted profit before tax

• Adjusted diluted EPS: Adjusted diluted EPS is the IFRS diluted EPS excluding items in line with

the Group’s adjusted items policy. See page 226 for details on the adjusting items and a

reconciliation between IFRS net income and adjusted net income. The weighted average

number of shares for theperiod is the same for both IFRS diluted EPS and adjusted diluted EPS

• Adjusted EBITDA (earnings before interest, tax, depreciation and amortisation): Adjusted

operating profit less depreciation and amortisation (excluding adjusting items)

Other non-GAAP measures

• Like-for-like (LFL): Net revenue growth or decline at constant exchange rates (see below)

excluding the impact of acquisitions, disposals and discontinued operations. Disposals include

low margin manufacturing revenues which are agreed at the time of sale of a brand or business.

Completed disposals are excluded from LFL revenue growth for the entirety of the current and

prior years. Acquisitions are included in LFL revenue growth twelve months after the completion

of the relevant acquisition. LFL growth also excludes countries with annual inflation greater than

100% (Venezuela and Argentina)

• Constant exchange rate (CER): Net revenue and profit growth or decline adjusting the actual

consolidated results such that the foreign currency conversion uses the same exchange rates as

were applied in the prior period and excludes the effect of applying hyperinflation accounting in

the relevant subsidiaries

• Brand Equity Investment (BEI): BEI is the marketing support designed to capture the voice,

mind and heart of our consumers

• Net working capital (NWC): NWC is the total of inventory, trade and other receivables and trade

and other payables less interest accrued on tax balances, indemnity provisions for disposed

businesses and forward purchase liabilities. NWC is calculated as a % of last twelve months net

revenue to compare changes in NWC to the growth of the business

• Net Debt: The Group’s principal measure of net borrowings being the total of cash and cash

equivalents, short-term and long-term borrowings, lease liabilities and derivative financial

instruments on debt

• Free Cash Flow and Free Cash Flow Conversion: The Group’s principal measure of cash flow

defined as net cash generated from continuing operating activities less net capital expenditure.

A reconciliation of cash generated from operations to Free Cash Flow is shown on page 225.

TheGroup tracks Free Cash Flow as a % of adjusted net income to understand the conversion

ofadjusted profit into cash

Strategic report Governance Financial statements Other information Reckitt Annual Report and Accounts 2024

224

Alternative Performance Measures continued

Other definitions and terms

• Category Market Unit (CMU): Reckitt analyses its market share by CMUs, which represent

country andeither brand or category, e.g. US Lysol. This allows us to analyse the components of

market share growth taking into account both geography and brand/category. Management has

identified those CMUs that are the most strategically important (top CMUs). The list of CMUs is

kept under continual review and will change over time based on strategic decisions. Currently,

CMUs cover c.67% ofGroup net revenue and between c.63% to c.81% of each Global Business

Unit’s (GBU) net revenue. As a measure of competitiveness, management tracks the percentage

of CMUs holding or gaining market share, weighted by net revenue

• Discontinued operations: Includes credits or charges related to the previously demerged RB

Pharmaceuticals business that became Indivior plc. Net profit/(loss) from discontinued

operations ispresented as a single line item in the Group Income Statement

• Return on Capital Employed (ROCE): Defined as adjusted operating profit after tax divided by

monthly average capital employed. Capital employed comprises total assets less current

liabilities other than borrowings-related liabilities. Total assets exclude cash, retirement benefit

surplus, current tax and a technical gross-up to goodwill that arises because of deferred tax

liabilities recorded against identified assets acquired in business combinations. Total assets have

been adjusted to add back impairments of Goodwill except where the impaired asset has been

disposed or partially disposed. Current liabilities exclude the share repurchase liability, legal

provisions recorded as a result of adjusting items and current tax

• Net revenue attributable to ‘more sustainable’ products: A product is defined as ‘more

sustainable’ when it scores a total of 10 or more points across five parameters (carbon, water,

plastics, packaging and ingredients) at time of launch using our Sustainable Innovation Calculator

(a streamlined Lifecycle Assessment tool that models the environmental impacts of products).

The net revenue from ‘more sustainable’ products is expressed as a percentage of total net

revenue. The calculation is done on thebasis of a 12 month period ending September (to allow

for the assembling of the related data)

• Reconciliation of IFRS like-for-like net revenue excluding seasonal OTC brands: LFL is shown

excluding net revenue from seasonal OTC products that are affected by the Cold and Flu

season. As this season can vary both in intensity and timing in the year, presenting net revenue

growth excluding this can provide a view of growth excluding this factor.

Reconciliation of IFRS to like-for-like net revenue (by GBU)

For the year ended 31 December

Net revenue

Hygiene

£m

Health

£m

Nutrition

£m

Group

£m

2023 IFRS 6,135 6,062 2,410 14,607

M&A – (61) (25) (86)

Exchange and hyperinflation (26) (7) – (33)

2023 Like-for-like 6,109 5,994 2,385 14,488

2024 IFRS 6,140 5,882 2,147 14,169

M&A – (21) (16) (37)

Exchange and hyperinflation 223 256 80 559

2024 Like-for-like 6,363 6,117 2,211 14,691

Like-for-like growth 4.2% 2.1% (7.3%) 1.4%

Reconciliation of IFRS like-for-like net revenue excluding seasonal OTC brands

For the year ended 31 December

Net revenue

Health

£m

Health &

Hygiene

£m

Group

£m

2023 Like-for-like 5,994 12,103 14,488

2023 seasonal OTC 1,480 1,480 1,480

2023 LFL excluding seasonal OTC 4,514 10,623 13,008

2024 Like-for-like 6,117 12,480 14,691

2024 seasonal OTC 1,365 1,365 1,365

2024 LFL excluding seasonal OTC 4,752 11,115 13,326

2024 Like-for-like growth 2.1% 3.1% 1.4%

2024 LFL growth excluding seasonal OTC 5.3% 4.6% 2.4%

Strategic report Governance Financial statements Other information Reckitt Annual Report and Accounts 2024

225

Alternative Performance Measures continued

Reconciliation of Operating Cash Flow to Free Cash Flow

31 Dec 2024

£m

31 Dec 2023

£m

Cash generated from continuing operations 3,675 3,829

Less: net interest paid (292) (263)

Less: tax paid (700) (922)

Less: purchase of property, plant & equipment (370) (348)

Less: purchase of intangible assets (95) (101)

Plus: proceeds from the sale of property, plant & equipment 14 63

Free cash flow 2,232 2,258

Free cash flow conversion 91% 97%

12 months Adjusted EBITDA to Net Debt

Adjusted EBITDA

31 Dec 2024

£m

31 Dec 2023

£m

Operating profit 2,425 2,531

Excluding: adjusting items 1,050 842

Adjusted operating profit 3,475 3,373

Excluding: adjusted depreciation and amortisation 436 444

Adjusted EBITDA 3,911 3,817

Net debt

31 Dec 2024

£m

31 Dec 2023

£m

Cash and cash equivalents (inc. overdrafts) 879 1,380

Financing liabilities (8,793) (8,670)

Net debt (7,914) (7,290)

Net debt/Adjusted EBITDA (times) 2.0 1.9

Dividend Cover

31 Dec 2024

£m

31 Dec 2023

£m

Interim dividend paid in year 561 549

Final dividend proposed 830 828

Total dividends 1,391 1,377

Adjusted net income 2,449 2,323

Dividend cover (times) 1.8 1.7

Net Working Capital

31 Dec 2024

£m

31 Dec 2023

£m

Inventories 1,517 1,637

Trade and other receivables 2,091 2,062

Trade and other payables (5,291) (5,506)

Less: Forward purchase liability 133 158

Less: Interest accrued on tax balances 101 122

Less: Indemnity provisions for disposed businesses 47 48

Net working capital (1,402) (1,479)

Net working capital as percentage of 12-month net revenue (10%) (10%)

ROCE Calculation

31 Dec 2024

£m

31 Dec 2023

£m

Adjusted operating profit 3,475 3,373

Less: taxation on adjusted operating profit (771) (850)

Adjusted net operating profit after tax 2,704 2,523

IFRS total assets 25,298 27,136

IFRS total current liabilities (7,943) (8,338)

IFRS total assets less current liabilities 17,355 18,798

Excluding IFRS items not included in capital employed:

Short-term borrowings 1,423 1,679

Current tax liabilities 602 620

Legal provisions 30 30

Interest accrued on tax balances 101 122

Share repurchase liability 477 296

Cash and cash equivalents (880) (1,387)

Current tax recoverable (45) (80)

Retirement benefit surplus (269) (270)

IFRS balances included in capital employed 18,794 19,808

Add back: impact of unrealised impairments 4,921 4,078

Less: goodwill due to deferred tax on intangibles (4,303) (4,265)

Impact of average in year vs closing balance 687 531

Average capital employed 20,099 20,152

Return on capital employed 13.5% 12.5%

Strategic report Governance Financial statements Other information Reckitt Annual Report and Accounts 2024

226

Alternative Performance Measures continued

The table below reconciles the Group’s IFRS measures to its adjusted measures for the year ended 31 December 2024.

Adjusting items

IFRS

£m

Impact of

business

combinations

£m

Net gain on

disposal of

brands

£m

Finance

expense

reclass

£m

Other

individually

material items

of income and

expense

£m

Adjusted

£m

Net revenue 14,169 – – – – 14,169

Cost of sales (5,574) – – – – (5,574)

Gross profit 8,595 – – – – 8,595

Net operating expenses (6,170) 40 (9) – 1,019 (5,120)

Operating profit 2,425 40 (9) – 1,019 3,475

Net finance expense (321) 17 – (15) (4) (323)

Profit before income tax 2,104 57 (9) (15) 1,015 3,152

Income tax charge (672) (6) - 15 (38) (701)

Net income from continuing operations 1,432 51 (9) – 977 2,451

Less: Attributable to non-controlling interests (2) – – – – (2)

Net income from continuing operations attributable to owners of

the Parent Company 1,430 51 (9) – 977 2,449

Net loss from discontinued operations (4) – – – 4 –

Total net income attributable to owners of the Parent Company 1,426 51 (9) – 981 2,449

Earnings per share (EPS)

Continuing operations

Basic 204.2 7.3 (1.3) – 139.5 349.7

Diluted 203.8 7.3 (1.3) – 139.2 349.0

Discontinued operations

Basic (0.6) – – – 0.6 –

Diluted (0.6) – – – 0.6 –

Total operations

Basic 203.6 7.3 (1.3) – 140.1 349.7

Diluted 203.2 7.3 (1.3) – 139.8 349.0

1 EPS is calculated using 700.4 million shares (basic) and 701.7 million shares (diluted)

Impact of business combinations comprised:

• £25 million of amortisation of certain

intangible assets recognised as a result

ofhistorical business combinations and

arelated £6 million tax credit

• £15 million related transitional service charge

associated with the acquisition of the

minority interest

• £17 million relating to remeasurement of

payments as part of an agreement to acquire

remaining interests from minority shareholders

Net gain on disposal of brands comprises

£9million profit on sale of certain small

developing market brands completed in 2024.

Reclassification of finance expense of

£15million relates tothe reclassification of

interest expense on income taxbalances from

net finance expense to income tax.

Other individually material items of income

and expensecomprise:

• Restructuring and other projectcosts of

£167million linked to the group strategic

announcements in 2024. This principally

includes professional advisor fees and

severance costs relating to business

transformation and portfolio changes;

• £13 million expense relating to costs

incurredin relation tothe Korean

HumidifierSanitiser issue;

• £838 million expense relating to the

impairment of IFCN and Biofreeze

intangibleassets (note 9);

• £38 million tax credit on the intangible

assetimpairment, restructuring and other

project costs; and

• £4 million from discontinued operations

relating to interest accruing on an uncertain

tax position relating to the former RB

Pharmaceuticals business (now Indivior plc).

Strategic report Governance Financial statements Other information Reckitt Annual Report and Accounts 2024

227

Alternative Performance Measures continued

The table below reconciles the Group’s IFRS measures to its adjusted measures for the year ended 31 December 2023.

Adjusting items

IFRS

£m

Impact of

business

combinations

£m

Net gain on

disposal

of brands

£m

Reclassified

foreign

exchange

translation on

liquidation of

subsidiaries

£m

Finance

income

reclass

£m

Other

individually

material items

of income

and expense

£m

Adjusted

£m

Net revenue 14,607 – – – – – 14,607

Cost of sales (5,847) – – – – – (5,847)

Gross profit 8,760 – – – – – 8,760

Net operating expenses (6,229) 28 1 – – 813 (5,387)

Operating profit 2,531 28 1 – – 813 3,373

Net finance expense (130) (9) – (130) 22 – (247)

Profit before income tax 2,401 19 1 (130) 22 813 3,126

Income tax charge (753) (4) (9) – (22) (1) (789)

Net income from continuing operations 1,648 15 (8) (130) – 812 2,337

Less: Attributable to non-controlling interests (14) – – – – – (14)

Net income from continuing operations attributable

to owners of the Parent Company 1,634 15 (8) (130) – 812 2,323

Net profit from discontinued operations 9 – – – – (9) –

Total net income attributable to owners of the

Parent Company 1,643 15 (8) (130) – 803 2,323

Earnings per share (EPS)

Continuing operations

Basic 227.9 2.1 (1.1) (18.1) – 113.3 324.1

Diluted 227.4 2.1 (1.1) (18.1) – 113.1 323.4

Discontinued operations

Basic 1.3 – – – – (1.3) –

Diluted 1.3 – – – – (1.3) –

Total operations

Basic 229.2 2.1 (1.1) (18.1) – 112.0 324.1

Diluted 228.7 2.1 (1.1) (18.1) – 111.8 323.4

1 EPS is calculated using 716.7 million shares (basic) and 718.3 million shares (diluted)

Impact of business combinations comprises:

• £27 million relates principally to amortisation

of certain intangible assets recognised as a

result of historical business combinations and

a related £4 million tax credit;and

• £9 million finance credit relating to reduction

in the liability under the agreement to

purchase the non-controlling interest in RB

Manon, and£1million of related professional

fees.

Net gain on disposal of brands includes

charge of £2 million relating to remeasurement

on held for sale of certain small developing

market brands, a related £9 million tax credit

and £1 million of residual income relating to

previous brand sales.

Reclassified foreign exchange translation on

liquidation ofsubsidiaries of £130 million

relates to a gain following theliquidation of

legal entities as part of simplification

oftheGroup’s legal entity structure.

Reclassification of finance income of £22

million relates tothe reclassification of net

interest expense on income taxbalances from

net finance expense to income tax.

Other individually material items of income

and expensecomprise:

• £810 million impairment of goodwill in IFCN

(note 9);

• £3 million expense relating to costs incurred

in relation tothe Korean Humidifier Sanitiser

issue; and

• £9 million income from discontinued

operations which relates to the DoJ

settlement in 2019.

Strategic report Governance Financial statements Other information Reckitt Annual Report and Accounts 2024

228

Shareholder Information

Annual General Meeting

Our Annual General Meeting (AGM) will be held on 8 May 2025 at 14:00 at the London Heathrow

Marriott Hotel, Bath Road, Hayes, Middlesex UB3 5AN.

The Notice convening the AGM meeting, together with the business to be considered at the

meeting, is contained in a separate document for shareholders and is available on our website at

www.reckitt.com/investors/annual-general-meetings.

2025 financial calendar and key dates

Record date for 2024 final dividend 11 April 2025

Announcement of Quarter 1 trading statement 23 April 2025

Annual General Meeting 8 May 2025

Payment of 2024 final ordinary dividend 29 May 2025

Announcement of 2025 interim results 24 July 2025

Record date for 2025 interim dividend 8 August 2025

Payment of 2025 interim ordinary dividend 18 September 2025

Announcement of Quarter 3 trading statement 22 October 2025

Dividend

The Directors recommend a final dividend of 121.7 pence per share for the year ended

31December 2024. Subject to shareholder approval at the 2025 AGM, payment of the final

dividend will be made on 29 May 2025 to all shareholders on the register as at 11 April 2025.

Thelatest date for receipt of new applications to participate in the Dividend Reinvestment Plan

(DRIP) in respect of the 2024 final dividend is 7 May 2025. Details on how to join the DRIP can

befound below.

Dividend Reinvestment Plan (DRIP)

Shareholders participating in the DRIP receive additional shares purchased in the market instead of

receiving a cash dividend. You can elect to join the DRIP by registering on the Computershare

Investor Centre at www.investorcentre.co.uk. Alternatively, you can request a DRIP mandate form

and terms and conditions by contacting Computershare on +44 370 703 0118.

Mandatory direct credit

We no longer pay dividends by cheque. Instead, cash dividends are now paid directly to

shareholders’ bank accounts. This is known as ‘mandatory direct credit’. Receiving dividends this

way means that shareholders receive dividend funds quicker. It also means the Company reduces

its environmental impact, incurs lower administration costs and reduces the risk of cheque fraud.

To have your dividends paid directly into your bank account, please provide your bank details to

our Registrar, Computershare, either by accessing Computershare’s Investor Centre at

www.investorcentre.co.uk or by telephone on +44 370 703 0118. We will hold your dividends for

you until you provide valid bank details and charges may be applied to reissue any outstanding

dividend payments.

If you are based overseas, Computershare can offer an international payment option to have your

dividends paid into your local account in a preferred currency. Please register online by visiting

www.investorcentre.co.uk, where you can review the full details and associated fees.

Share dealing facility

The Company’s shares can be traded through most banks, building societies, stockbrokers or

‘share shops’. In addition, UK-based shareholders can buy or sell the Company’s shares using a

share dealing facility made available by Computershare, which includes internet and postal share

dealing.

Internet share dealing

Internet share dealing is available to shareholders residing in the UK. This service offers

shareholders a straightforward way to buy or sell the Company’s shares on the London Stock

Exchange. The commission is 1.4%, subject to a minimum charge of £40. In addition, stamp duty,

currently 0.5%, is payable on purchases. Real-time dealing is available during UK market hours

(08:00 to 16:30). In addition, you can place a sale instruction outside of market hours.

To access the service, log on to www.computershare.com/dealing/uk. Shareholders must have

their Shareholder Reference Number (SRN) available. The SRN appears on share certificates.

Internet share dealing is only available to residents in either the UK, Channel Islands or Isle of Man.

Postal share dealing service

The postal share dealing service offers a way to sell or purchase shares (subject to availability). To

use the service you must be a resident of the UK or one of the permitted jurisdictions. A full list of

permitted jurisdictions can be found at www.computershare.com/dealing/uk. If you wish to use

the service, you can download a postal share dealing form and the terms and conditions at

www.computershare.com/dealing/uk. The fee for this service is 1.4% of the value of each sale or

purchase and is subject to a minimum charge of £40. Stamp duty of 0.5% may be payable on

purchases.

Detailed terms and conditions for both internet and postal dealing are available upon request by

calling +44 370 702 0000.

Strategic report Governance Financial statements Other information Reckitt Annual Report and Accounts 2024

229

Shareholder Information continued

Electronic shareholder communications

We encourage all shareholders to receive an email notification when shareholder documents

become available online, to reduce our impact on the environment. An election to receive

electronic shareholder communications will:

• Result in cost savings to the Company since less paper documentation will need to be produced

and posted

• Allow for quicker and more effective communications with shareholders

• Support Reckitt’s corporate responsibility profile

Shareholders can register for electronic communications by registering at www.investorcentre.co.uk.

Shareholders who have elected for electronic communications will receive an email whenever

shareholder documents are available on the Company’s website. Shareholders who have elected

by deemed consent, in accordance with the Companies Act 2006, will receive a hard copy notice

of availability of a document on the Company’s website and are entitled to request a hard copy of

any such document, at any time, free of charge from Computershare. Shareholders can revoke

their consent to receive electronic communications at any time by contacting Computershare.

The Company’s 2024 Annual Report and Notice of the 2025 AGM are available to view at

www.reckitt.com. The Investor section of the website also contains up-to-date information for

shareholders to view throughout the year, including:

• Detailed share price information

• Financial results

• Regulatory announcements

• Dividend history, payment dates and amounts

• Access to shareholder documents including the Annual Report and Notice of AGM

• Share capital information

Analysis of shareholders as at 31 December 2024

Distribution of shares by type of shareholder No. of holdings Shares

Nominees and institutional investors 2,561 723,138,516

Individuals 9,482 13,396,663

Total 12,043 736,535,179

Size of shareholding No. of holdings Shares

1–500 6,955 1,312,126

501–1,000 1,868 1,350,527

1,001–5,000 1,855 3,856,419

5,001–10,000 267 1,925,879

10,001–50,000 491 12,208,357

50,001–100,000 176 12,382,570

100,001–1,000,000 328 113,429,676

1,000,001 and above 103 590,069,625

Total 12,043 736,535,179

American Depositary Receipts (ADRs)

ADRs are dollar-denominated securities that represent the ownership of ordinary shares in a

non-US company, quoted and traded in US dollars in the US securities market. ADRs facilitate

thepurchase, holding and sale of non-US shares by US investors. Dividends are paid to investors

inUS dollars.

Reckitt Benckiser Group plc ADRs are traded on the over-the-counter (OTC) market under the

symbol RBGLY. Five ADRs represent one ordinary Reckitt share. J.P. Morgan Chase Bank N.A. is the

Depositary. The table below provides details of the identification of Reckitt securities on the US

market place and the London Stock Exchange.

Symbol Security Listing/trading CUSIP/ISIN

RBGLY US security (ADR) OTC Pink 756255204

RKT.L. Ordinary share London Stock Exchange GB00B24CGK77

Strategic report Governance Financial statements Other information Reckitt Annual Report and Accounts 2024

230

Shareholder Information continued

ADR Depositary Bank

J.P. Morgan Chase Bank N.A. sponsors and administers the Reckitt ADR facility.

J.P. Morgan ADR shareholder services can be contacted as follows:

J.P. Morgan Chase Bank N.A.

383 Madison Avenue, Floor 11, New York, NY 10179

Telephone number for general queries: +1 800 990 1135

Telephone number from outside the US: +1 651 453 2128

Website: www.shareowneronline.com

Company Secretary

Catheryn O’Rourke

Registered office

103-105 Bath Road, Slough, Berkshire SL1 3UH, United Kingdom

Telephone: +44 1753 217800

Registered in England and Wales, No. 6270876

Company status

Public Limited Company

Auditor

KPMG LLP

Solicitors

Slaughter and May

Registrar

The Company’s Registrar, Computershare, is responsible for maintaining and updating the

shareholder register and making dividend payments to shareholders. If you have any queries

relating to your shareholding, please contact Computershare.

Computershare Investor Services PLC

The Pavilions, Bridgwater Road, Bristol BS99 6ZZ

Shareholder helpline

Telephone: +44 370 703 0118

Website: www.computershare.com/uk

Share buyback programme

On 24 July 2024, the Company announced the continuation of the share buyback programme and

the intention to buy back £1 billion worth of shares by 30 June 2025.

Charity donation

ShareGift is a UK registered charity (No.1052686) which specialises in realising the value locked up

in small shareholdings for charitable purposes. The resulting proceeds are donated to a wide range

of charities, reflecting suggestions received from donors. If you have only a small number of

Reckitt shares which are uneconomic to continue holding, you may wish to consider donating them

to ShareGift. Please visit www.sharegift.org/donate-shares or telephone +44 207 930 3737 for

more information.

Unsolicited mail

We are legally obliged to make our register of shareholders available to the public, subject to a

proper purpose test. As a result, some shareholders might receive unsolicited mail. Shareholders

wishing to limit the amount of such mail should write to the Mailing Preference Service, MPS

FREEPOST 29 LON20771, London W1E 0ZT, or register online at www.mpsonline.org.uk.

Share fraud and ‘boiler room’ scams

Share fraud is a deceptive practice that induces investors to make sales and purchases based on

inaccurate information and in violation of security laws. In boiler room scams, fraudsters will entice

investors into scams through increased persuasion and high-pressure tactics through cold calling

or random contact.

Reckitt is aware of these deceptions and urges shareholders who are offered unsolicited

investment advice, discounted shares, a premium price for shares, or free company or research

reports to investigate thoroughly before making any decision.

If you receive any form of unsolicited investment advice, please take the following steps:

• Confirm the name of the person and/or organisation

• Check the Financial Conduct Authority’s (FCA) Financial Services Register at

https://register.fca.org.uk to ensure they are authorised

• Use the details on the Financial Services Register to contact the firm

• Call the FCA Consumer Helpline on +44 800 111 6768 (freephone) or 0300 500 8082 (from the

UK), if there are no contact details on the Register or if they are out of date

• Search the FCA’s list of unauthorised firms and individuals at

www.fca.org.uk/consumers/unauthorised-firms-individuals to avoid doing business with

reported offenders

• If you are approached by fraudsters please contact the FCA using its helpline or share fraud

reporting form

• Consider getting independent financial advice

Using an unauthorised firm to buy or sell shares or other investments will prohibit access to the

Financial Ombudsman Service or Financial Services Compensation Scheme (FSCS) should the

investment be unsuccessful. Remember: if it sounds too good to be true, it probably is. If you think

you have been a victim of these scams, the matter should be reported to the Police and to Action

Fraud. For more information, please visit the Serious Fraud Office website at

www.sfo.gov.uk/contact-us/reporting-serious-fraud-bribery-corruption.

Strategic report Governance Financial statements Other information Reckitt Annual Report and Accounts 2024

231

Shareholder Information continued

Cautionary note concerning forward-looking statements

This Annual Report and Financial Statements contains statements with respect to the financial

condition, results of operations and business of Reckitt Benckiser Group plc and the Reckitt group

of companies (the ‘Group’) and certain plans and objectives of the Group that are forward-looking

statements. Words such as ‘intends’, ‘targets’, or the negative of these terms and other similar

expressions of future performance or results, and their negatives, are intended to identify such

forward-looking statements. In particular, all statements that express forecasts, expectations and

projections with respect to future matters, including targets for net revenue, operating margin and

cost efficiency, are forward-looking statements. Such statements are not historical facts, nor are

they guarantees of future performance.

By their nature, forward-looking statements involve risk and uncertainty because they relate to

events and depend on circumstances that will occur in the future. There are a number of factors

that could cause actual results and developments to differ materially from those expressed or

implied by these forward-looking statements, including many factors outside the Group’s control.

Among other risks and uncertainties, the material or principal factors which could cause actual

results to differ materially are: the general economic, business, political, geopolitical and social

conditions in the key markets in which the Group operates; the Group’s ability to innovate and

remain competitive; the Group’s investment choices in its portfolio management; the ability of the

Group to address existing and emerging environmental and social risks and opportunities; the

ability of the Group to manage regulatory, tax and legal matters, including changes thereto; the

reliability of the Group’s technological infrastructure or that of third parties on which the Group

relies including the risk of cyber attack; interruptions in the Group’s supply chain and disruptions to

its production facilities; economic volatility including tariffs and increases in the cost of labour, raw

materials and commodities; the execution of acquisitions, divestitures and business transformation

projects; product safety and quality, and the reputation of the Group’s global brands; and the

recruitment and retention of key management.

These forward-looking statements speak only as of the date of this Annual Report and Financial

Statements. Except as required by any applicable law or regulation, Reckitt expressly disclaims any

obligation or undertaking to release publicly any updates or revisions to any forward-looking

statements contained herein to reflect any change in the Group’s expectations with regard thereto

or any change in events, conditions or circumstances on which any such statement is based.

Any information contained in the 2024 Annual Report and Financial Statements on the price at

which shares or other securities in Reckitt Benckiser Group plc have been bought or sold in the

past, or on the yield on such shares or other securities, should not be relied upon as a guide to

future performance.

Strategic report Governance Financial statements Other information Reckitt Annual Report and Accounts 2024

232

Notes

Reckitt Benckiser Group plc’s commitment to environmental issues is reflected in this Annual Report,

which has been printed on Inaset Offset and Edixion Offset, an FSC® certified material. This document

was printed by Park Communications using its environmental print technology, which minimises the

impact of printing on the environment. Vegetable-based inks have been used and 99% of dry waste

isdiverted from landfill. The printer is a CarbonNeutral® company. Both the printer and the paper mill

are registered to ISO 14001.

CBP029655

Reckitt Benckiser Group plc

Registered office

103-105 Bath Road

Slough, Berkshire

SL1 3UH, UK

Registered in England and Wales

No 6270876

Reckitt Annual Report and Accounts 2024