Reckitt Benckiser

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Reckitt Benckiser
A Business Case Study
Finance Department, May 2006
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Reckitt Benckiser Business Case Study

• Business Overview
• Annual Report
• Comparison Ratios, Competitors Risk
• Finance Team in RB ANZ
• Questions?

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Reckitt Benckiser Business Case Study

• Business Overview
• Annual Report
• Comparison Ratios, Competitors Risk
• Finance Team in RB ANZ
• Questions?

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Reckitt Benckiser Worldwide

• Reckitt Benckiser is the world leader in
  Household Cleaning (excl laundry).
• RB sells its products in some 180 countries and
  has operations in 60 countries.

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Our Categories Share of 2005 Net Revenue
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Our Categories Market Position
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Reckitt Benckiser Business Case Study

• Business Overview
• Annual Report
• Comparison Ratios, Competitors Risk
• Finance Team in RB ANZ
• Questions?

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Annual Report
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Chairman's Statement
Chairmans Statement
Chief Executives Review
Corporate Business Review
Board of Directors
Report of the Directors
Financial Statements
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CEO Review
Chairmans Statement
Chief Executives Review
Corporate Business Review
Board of Directors
Report of the Directors
Financial Statements
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Corporate Business Review
Chairmans Statement
Chief Executives Review
Corporate Business Review
Board of Directors
Result further market share growth virtually
everywhere, and even stronger global brand
leadership. Our formula works like magic. Like
Vanish.
Report of the Directors
Financial Statements
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Corporate Business Review
Chairmans Statement
Chief Executives Review
Corporate Business Review
Worldwide, its taken our share to record levels
and brought private label share growth to a
standstill.
Board of Directors
Report of the Directors
Financial Statements
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Corporate Business Review
Chairmans Statement
Chief Executives Review
Corporate Business Review
Bang now has the top-selling trigger pack and two
of the top-selling powder packs on the
multi-purpose cleaner market.
Board of Directors
Report of the Directors
Financial Statements
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Corporate Business Review
Chairmans Statement
Chief Executives Review
Were moving up the supply chain helping
suppliers cut their own costs, so they can curb
their prices to us. That way, everyone wins our
suppliers, shareholders and consumers.
Corporate Business Review
Board of Directors
Report of the Directors
Financial Statements
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Board Of Directors
Chairmans Statement
Chief Executives Review
Corporate Business Review
Board of Directors
Report of the Directors
Financial Statements
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Report of the Directors
Chairmans Statement
Chief Executives Review
Corporate Business Review
Board of Directors
Report of the Directors
Financial Statements
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Annual Report
Chairmans Statement
Chief Executives Review
Corporate Business Review
Board of Directors
Report of the Directors
Financial Statements
Profit Loss
Balance Sheet
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Profit Loss Statement
Financial Statements
Profit Loss
Balance Sheet
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Profit and Loss Statement

• Raw Materials
• Packaging
• Labour
• Depreciation

• RD
• Marketing
• Other Overheads

• millions

• Gross Sales minus Trade Spend

• Also known as Gross Margin

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Balance Sheet
Financial Statements
Profit Loss
Balance Sheet
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Balance Sheet

• Creditors
• Borrowings
• Conv Capital Bonds

• millions

• Stocks
• Debtors
• Investments
• Cash

• Creditors
• Borrowings

• Share Capital
• Retained Earnings

• Intangible Assets
• Tangible Assets

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Reckitt Benckiser Business Case Study

• Business Overview
• Annual Report
• Comparison Ratios, Competitors Risk
• Finance Team in RB ANZ
• Questions?

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Comparison Ratios

• Why use ratios?
• Understand business trends over time.
• Used as key performance indicator to measure
  business performance.
• Understand where problems exist - and how to fix
  them.
• Drive accountability.
• Benchmark against competitors.

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Comparison Ratios

• Profit Loss Ratios
• Net Revenue Growth
• Gross Profit of Net Revenue
• Operating Profit Growth
• Operating of Net Revenue
• Balance Sheet Ratios
• Debt to Equity
• Current Asset to Current Liabilities

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Profit and Loss Ratios

• Gross Profit of Net Revenue
• 2004 55
• 2003 53

• millions

• Operating Profit of Net Revenue
• 2004 20
• 2003 18

• Net Revenue Growth
• Growth of 4 on 2003

• Operating Profit Growth
• Growth of 12 on 2003

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Balance Sheet ratios

• Creditors
• Borrowings 82
• Conv Capital Bonds 40

• Current Asset / Current Liabilities
• 2004 1709 / 1519 1.13
• 2003 1.08

• millions

• Creditors
• Borrowings 118

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Comparison Ratios
We can analyse our competitors using Ratio
Analysis Our competitors include SC
Johnson Unilever Sara Lee Clorox Proctor
Gamble Colgate

• Profit Loss Ratios
• Net Revenue Growth
• Gross Profit of Net Revenue
• Operating Profit Growth
• Operating of Net Revenue
• Balance Sheet Ratios
• Debt to Equity
• Current Asset to Current Liabilities

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Treasury

• Global Treasury manages three main risks
• Translation Risk
• Financial statements reported in s but business
  conducted in other currencies
• Managed through currency swaps
• Transaction Risk
• Purchases of Goods Services and receipts from
  customers in other currencies
• Managed through derivatives
• Interest Rate Risk
• 65 of financial liabilities at fixed interest
  rates

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Reckitt Benckiser Business Case Study

• Business Overview
• Annual Report
• Comparison Ratios, Competitors Risks
• Finance Team in RB ANZ
• Questions?

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Finance Charter

• The purpose of finance is to be a business
  partner that adds value to the organisation

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Organisation Chart

• Sales Pricing Analysis.
• Marketing Commercial Analysis.
• Monthly Overheads Reports.
• New Product Development Analysis.
• Planning forecasting.

• Preparation of Monthly Results to HO.
• General Ledger Maintenance.
• Fixed Assets.
• Taxation.
• Insurance.
• Bank Accounts Treasury Liaison.

• Preparation of Factory Budgets Forecasts.
• Monthly Factory Reporting.
• COGS Information for NPD.
• Standard Cost Maintenance.
• Inventory Management.

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Questions