FY Results 2012

13 February 2013 2012 TARGETS ACHIEVED STRATEGY WELL ON TRACKResults at a glance Q4 % change % change FY % change % change(unaudited) £m actual constant £m actual constant exchange exchange exchange exchangeNet revenue 2,476 +2 +6 9,567 +1 +4- Like-for-like growth* +7 +5Operating profit - 2,435 +2 +5reportedOperating profit - 2,570 +3 +6adjusted**Net income - reported 1,829 +5 +8Net income - adjusted** 1,938 +7 +10EPS (diluted) - reported 249.5p +5EPS (diluted) - 264.4p +7adjusted**

* Like-for-like ("LFL") growth excludes the impact of changes inexchange rates, material acquisitions and disposals.

** Adjusted results exclude exceptional items.

Highlights: Full Year

- LFL +5% ex RBP (+5% incl. RBP), well ahead of our market growth, driven byEmerging Market Areas and Europe North America (ENA).

- Health & Hygiene led growth; Durex, Gaviscon, Strepsils, Dettol, Lysol,Harpic and Finish.

- Increased brand equity investment (BEI) of £100m1, +70bps, (ex RBP).

- Gross margin +50bps to 57.9%. "Project Fuel" targets fully achieved.

- Adjusted operating margin** +70bps to 26.9% via gross margin expansion andearly ENA cost savings.

- Adjusted net income** +7% (+10% constant): adjusted diluted EPS of 264.4p(+7%).

- Net working capital of minus £700m (2011: minus £701m).

- Net debt after dividends, acquisitions and restructuring of £2,426m (2011:£1,795m).

- The Board recommends an +11% increase in the final dividend to 78p per sharebringing the total dividend for 2012 to 134p (+7% versus 2011).

Highlights: Q4

- Q4 LFL growth +6% ex RBP (+7% incl. RBP), reflecting steadily improvingin-year performance.

- Further improvement in ENA +3% LFL, assisted by higher incidencesof cold and flu.

Commenting on these results, Rakesh Kapoor, Chief ExecutiveOfficer, said:

"A year ago we set a new purpose driven strategy to deliver growth andoutperformance over the next decade.

We are laying the foundations for RB to succeed in a world where health andhygiene play an increasingly important role in terms of both economic andsocial development. We enhanced our focus on our 16 Powermarkets, many ofwhich are in the emerging market areas that now represent 44% of our core netrevenue. I am very pleased that our 2012 achievements demonstrate the strengthof this strategy and its ability to create sustainable value for all of ourstakeholders.In environmental sustainability we have already reduced the carbon footprintof our products by 20% and have now set an ambitious target to reduce that bya further third, while also cutting the water use associated with our productsby the same amount.While much has yet to be done and markets remain challenging, we approach 2013with the confidence that we have the right strategic focus, the rightorganisation and culture, and with the right innovation platforms. We areparticularly excited by our entry into the vitamins, minerals and supplements(VMS) market with the acquisition of Schiff. We are supporting our brands withmore and better quality brand equity investment to deliver further growth inan increasingly competitive consumer environment.We remain committed to our goal of net revenue growth on average +200bps perannum above our market growth, and moderate operating margin expansion (exRBP). For 2013, we are targeting net revenue growth of +5-6%2 includingacquisitions and disposals announced to date. Given the early achievement ofcost savings in 2012, we expect to maintain operating margins in 2013. Thesetargets exclude RBP.

This will allow us to further accelerate the shape of our core business inline with our strategy. We are now setting the target of Health & Hygienecategories to become 72%, and our emerging market areas to become 50%, of ourcore business net revenue by 2015. This is a year earlier than previouslytargeted."

1 at constant rates

2 at constant rates including announced acquisitions and disposals /withdrawal from Private Label and other minor items, ex RBP. Together theywill have a net impact of c.+100bps

Basis of Presentation and Exceptional Items

Where appropriate, the term "like-for-like" (LFL) describes theperformance of the business on a comparable basis, excluding the impact ofmajor acquisitions, disposals and discontinued operations. It is measured on aconstant exchange basis.

ENA is the Europe and North America area structure. RUMEA is theRussia and CIS, Middle East and Africa area structure. LAPAC is the LatinAmerica, Asia and Asia Pacific area structure.

Where appropriate, the term "core business" represents the ENA,RUMEA and LAPAC geographic areas, and excludes RBP and Food.

Where appropriate, the term "adjusted" excludes the impact ofexceptional items. There was an exceptional pre-tax charge of £135m in FY 2012mainly relating to restructuring costs in respect of the new strategyreorganisation, integration costs arising from the acquisition of SSL, andcosts associated with acquisitions. This exceptional pre-tax charge isreflected in reported operating profit. Exceptional items in FY 2011 were £92min reported operating profit and £4m in net interest. The tax effect ofexceptional items in the period is £26m (2011: £23m).As communicated in RB's February 2012 "Strategy for ContinuedOutperformance" announcement, the Group now uses a number of new, or refined,measures to monitor progress. This includes a revised gross margin definition(discussed in note 3 to the Half Year Condensed Financial Statements), as wellas a new definition of net working capital (inventories, trade and otherreceivables and trade and other payables) and a new measure of total brandequity building investment (BEI). Detailed Operating Review: Total Group

Full Year 2012

Total FY net revenue was £9,567m, an increase of +5% LFL. Growthwas driven by a strong performance in our emerging market (LAPAC and RUMEA)areas, with an improving result from ENA despite challenging marketconditions. Health and Hygiene led performance with strong results from HealthPowerbrands Durex and Gaviscon, and from Hygiene Powerbrands Dettol, Lysol,Finish and Harpic.

Gross margin increased by +50bps to 57.9%. The significantimprovement in margins during the second half, as expected, was driven by anumber of factors - a more benign input cost environment, pricing, improvedmix and savings from our ongoing cost optimisation programme (Project Fuel),where we delivered savings of £50m, as targeted. These improvements werepartially offset by adverse foreign exchange.

Our newly defined BEI metric increased by £100m (constant) +70 bpsto 12.7% of net revenue (ex RBP). Within this, media increased by +50bps to11.7% of net revenue (ex RBP).

Operating profit was £2,435m, +5% constant versus FY 2011 (+2%actual). There was an exceptional pre-tax charge of £135m (FY 2011: £92m). Onan adjusted basis, operating profit was ahead +6% (constant) to £2,570m.Adjusted operating margin increased by +70bps to 26.9% (ex RBP +70bps to23.3%). This margin increase was in part due to early achievement of some ofthe £30m costs savings from the new ENA structure targeted for 2013.Net finance expense was £15m (FY 2011: £19m). The tax rate was 24%,(FY 2011: 26%). This reduction was primarily due to the benefit in 2012 of the2% reduction in the UK corporate tax rate (both the reduction in the currentyear tax liability, and the reduction to deferred tax liability in respect oftax payable in future years), and the favourable settlement of certain taxcases.

Reported net income was £1,829m, an increase of +8% constant (+5%actual). On an adjusted basis net income rose +10% constant (+7% actual).Diluted earnings per share of 249.5 pence was +5% higher on a reported basisand on an adjusted basis, the growth was +7% to 264.4 pence.

Fourth quarter 2012

Total Q4 net revenue was £2,476m, a +7% LFL increase. Growth trendsin Emerging Markets were similar to those in Q3, whilst ENA continued toimprove its performance with +3% LFL growth. Health category performance wasdriven by Strepsils and Mucinex following a higher incidence of flu, but alsofrom our non-seasonal brands with Durex having a particularly strong quarter.In Hygiene, growth was driven by strong performances from Dettol / Lysol andFinish, and in Home, Air Wick had a strong quarter. Portfolio DevelopmentWe have made progress in strengthening and reshaping the corebusiness in line with our new strategy. Our private label business did not fitwith our future strategic focus and we withdrew from it during 2012. We alsosold our non-core Paras Personal Care business and a number of other minorbusinesses.

We continue to strengthen our global health care franchise byentering the VMS market with the acquisition of Schiff, and building localhealth care platforms in China and Latin America via a number of smallacquisitions, including the recently announced collaboration withBristol-Myers Squibb.

Sustainability & Social ContributionWe increased our global partnership with Save the Children in order to supporthealth and hygiene programmes in more than 40 countries, taking fundscontributed to £3.5m, up +60% from £2.2m in 2011. In 2012 we helped to reachapproximately 325,000 children and families and since our relationship beganin 2006 it has reached nearly 900,000 vulnerable children and families. 2013will see this partnership continuing and expanding further still.In sustainability, we achieved our targeted 20% carbon reductionper dose of product since 2007 ahead of schedule and by year end had reducedit by 21%. In 2012 specifically our carbon reduction was the equivalent oftaking 2.4 million cars off the road. We maintained our effectively carbonneutral global manufacturing status, which started in 2006, with an additional370,000 trees planted, taking it to 5.8 million trees planted in total. Wehave set further ambitious sustainability goals for 2020. These are to furtherreduce our per dose carbon footprint by 1/3, reduce our water impact by 1/3and innovate such that 1/3 of our net revenue comes from more sustainableproducts. FY 2012 Business Review

Summary: % net revenue growth

FY 2012 Like-for-like Acquisitions & Exchange Reported Disposals*ENA +1% -1% -3% -3%LAPAC +11% 0% -6% +5%RUMEA +8% -1% -4% +3%Food +2% 0% +1% +3%Group ex-RBP +5% -1% -4% 0%RBP +10% 0% 0% +10%TOTAL +5% -1% -3% +1%

* Reflects the acquisition of Paras (Q1), Schiff and other minoracquisitions (Q4), withdrawal from Private Label (Propack), disposal of ParasPersonal Care and a number of minor businesses.

Analyses by operating segment of net revenue and adjusted operatingprofit, and of net revenue by product group are set out below. The ExecutiveCommittee of the Group assesses the performance of the operating segmentsbased on net revenue and adjusted operating profit. This measurement basisexcludes the effect of exceptional items.

Review by Operating Segment

Quarter ended Full Year ended 31 December 31 December 2012 2011 % change 2012 2011 % change £m £m exch. rates £m £m exch. rates actual const. actual const. Total Net revenue 1,236 1,245 -1 +2 ENA 4,678 4,837 -3 0 591 568 +4 +9 LAPAC 2,327 2,210 +5 +11 327 316 +3 +6 RUMEA 1,404 1,364 +3 +7 93 94 -1 0 Food 321 312 +3 +2 2,247 2,223 +1 +5 Total - ex RBP

8,730 8,723 0 +4

229 193 +19 +22 RBP

837 762 +10 +10

2,476 2,416 +2 +6 Total 9,567 9,485 +1 +4 Operating profit - adjusted* ENA 1,156 1,157 0 +3 LAPAC 464 417 +11 +17 RUMEA 290 293 -1 +3 Food 92 92 0 -1 Corporate** 32 10 n/a n/a Total - ex RBP 2,034 1,969 +3 +7 RBP 536 518 +3 +3 Subtotal before exceptional items 2,570 2,487 +3 +6 Exceptional items (135) (92) Total 2,435 2,395 +2 +5 Operating margin - adjusted* % % ENA 24.7 23.9 LAPAC 19.9 18.9 RUMEA 20.7 21.5 Food 28.7 29.5 Corporate ** n/a n/a Total - ex RBP 23.3 22.6 RBP 64.0 68.0 Total 26.9 26.2

* Adjusted to exclude the impact of exceptional items.

**Items of income and expense which are not part of the results andfinancial position of the reported segments, and therefore reported to theChief Operating Decision Maker outside of the individual segment financialinformation, are shown in the Corporate segment. For the 12 months ended 31December 2012, these items include profits on disposals of intangibles and theParas Personal Care business, expenses for legal matters and movements incorporate provisions.

The Business Review below is given at constant exchange rates.

ENA 56% of core net revenue

FY 2012 total net revenue was £4,678m, with LFL growth of +1%. Wecontinue to witness difficult market conditions in many parts of Europe.Despite this the new organisation delivered a consistently improvingperformance through the year across ENA, supported with higher levels of BEI.Additionally, the 2nd half witnessed a higher incidence of flu than in thecomparable period.

Growth in our Health platform was driven by Durex, Gaviscon,Mucinex, and Strepsils. Hygiene brands of Dettol, Lysol and Finish performedstrongly, particularly in Europe behind Dettol No-Touch, and in the US behindFinish Quantum and All-in-1 gel packs and tablets. In the Home category, AirWick achieved good growth in H2 driven by a strong performance from the newlylaunched Filter & Fresh and Black Edition candles.

FY adjusted operating profit was £1,156m, an increase of +3% atconstant. The adjusted operating margin increased +80bps, with increased BEImore than offset by a combination of gross margin expansion, and fixed costsavings. These savings came from the early achievement of cost savings fromthe new structure in H2. This has effectively brought forward some of theplanned cost savings originally targeted for 2013.

Q4 LFL growth was +3%.

LAPAC 27% of core net revenue

FY 2012 total net revenue increased to £2,327m, with LFL growth of+11%. Growth came from Latin America, North Asia and South East Asia, drivenby distribution expansion, innovation and increasing penetration. In Health,all Powerbrands grew, with exceptionally strong performances from Durex inChina, Scholl in Japan, Paras brands in India, and Gaviscon rollouts in anumber of markets. In Hygiene, Dettol, Lysol, Harpic and Veet delivered stronggrowth from initiatives such as Dettol Daily Care and Re-energize, andPowerPlus in Harpic. Vanish and Air Wick performed well in the Home category.

FY adjusted operating profit increased +17% to £464m. Adjustedoperating margin was +100bps higher at 19.9%. Increased investment behind BEIwas more than offset by good gross margin, volume leverage and fixed costcontainment.

Q4 LFL growth was +11%.RUMEA 17% of core net revenueFY 2012 net revenue of £1,404m was ahead +8% on LFL basis (+7%total), driven by strong growth in Russia & CIS. In Health, growth was drivenby Durex, Gaviscon, and Strepsils. Hygiene Powerbrands Dettol, Finish, Harpicand Veet performed particularly well supported by initiatives such as DettolDaily Care and Re-energize. Air Wick performed well in the Home category withgrowth driven by Freshmatic and Aqua Mist.The 2nd half saw the upscheduling of certain Nurofen products inRussia, an increased promotional environment and some operational andsocio-political challenges in certain markets. These headwinds will continuethrough the year but we remain confident about the underlying strength of thebusiness.FY adjusted operating profit increased by +3% to £290m. Thisresulted in a -80bps decline in the adjusted operating margin to 20.7%. Thiswas due to adverse FX impacting gross margin and increased investment in bothBEI and the new area structure, to support the business and drive futuregrowth.Q4 LFL growth was +7%.Food

FY 2012 net revenue increased +2% to £321m underpinned by continuedgrowth in French's Mustard and Frank's Red Hot Sauce. The 2nd half was flatdue to weaker US market conditions and increased private label activity,particularly around French Fried Onions. Our core French's Mustard and Frank'sRed Hot franchises remain strong.

Operating margins fell by -80bps to 28.7% due to adverse mix andinput costs.

Q4 LFL growth was 0%.Pharmaceuticals ("RBP")FY 2012 net revenue increased +10% to £837m. Growth came fromcontinued strong volume growth in the US. This was offset by dilution from theincreased Film penetration, which is a lower priced product, and governmentprice reductions in a number of European markets. Conversion from tablets toFilm in the US continues to increase with market volume share now 64%, up from48% at the end of 2011, creating a significantly more sustainable business.

Q4 net revenue growth of +22% was helped by the lapping of the adjustmentsmade on Medicaid accruals in Q4 2011. The underlying growth trends in thequarter were similar to those experienced throughout 2012.

FY operating profit increased +3% to £536m. The operating margin was down-400bps to 64.0%, due to the factors, as communicated during the Q3 IMSconference call. These factors included lower margins of the film variant,downward pricing pressure in Europe, and 2nd half increase in BEI foradvertising and marketing programmes to increase patient awareness about theFilm and treatment. We also increased investment in the clinical pipeline. Weexpect this gradual increase in investment to continue into 2013 and beyond aswe build a strong, sustainable growth business.

RBP recently announced its voluntary discontinuation of Suboxonetablets in the USA due to increasing concerns with pediatric exposure. Furtherdetails can be found on our website - www.rb.com

At this time the Group does not know the timing of potentialgeneric competition to Suboxone in the US. For further information surroundingSuboxone products, please refer to page 11 of the 2011 Annual Report andFinancial Statements.

FY 2012 Category Review Quarter ended Full Year ended 31 December 31 December 2012 2011 % change 2012 2011 % change £m £m exch. rates £m £m exch. rates actual const. actual const. Net revenue by category 606 546 +11 +13 Health 2,068 2,000 +3 +6 897 902 -1 +4 Hygiene 3,682 3,643 +1 +5 501 506 -1 +3 Home 1,966 2,009 -2 +2 150 175 -14 -11 Portfolio Brands 693 759 -9 -4 93 94 -1 0 Food 321 312 +3 +2 2,247 2,223 +1 +5 Total - ex RBP 8,730 8,723 0 +4 229 193 +19 +22 RBP 837 762 +10 +10 2,476 2,416 +2 +6 Total 9,567 9,485 +1 +4 Operating profit - adjusted Health, Hygiene, Home & Portfolio 1,910 1,867 +2 +6 Food 92 92 0 -1 Corporate 32 10 n/a n/a Total - ex RBP 2,034 1,969 +3 +7 RBP 536 518 +3 +3 Total 2,570 2,487 +3 +6 Exceptional items (135) (92) Total 2,435 2,395 +2 +5 Operating margin - adjusted % % Health, Hygiene, Home & Portfolio 22.7 22.2 Food 28.7 29.5 Corporate n/a n/a Total - ex RBP 23.3 22.6 RBP 64.0 68.0 Total 26.9 26.2

The Category Review below is given at constant exchange rates.

Health 25% of core net revenue

Net revenue increased to £2,068m, with LFL growth of +6%. Higherincidences of cold and flu in Q4 in ENA drove improved performances of ourseasonal brands Mucinex and Strepsils. The non-seasonal Powerbrands performedwell particularly Durex, Paras brands and Gaviscon. Growth in Nurofen wasimpacted by upscheduling of certain products in Russia. New initiatives suchas Performax Intense condoms, plus increased distribution in China drove Durexgrowth, and the roll out of Double Action in a number of emerging marketsstrengthened performance from Gaviscon.

Q4 LFL growth was +10%.

Hygiene 44% of core net revenue

Net revenue increased to £3,682m with LFL growth of +6%, driven bystrong growth in the Dettol / Lysol franchise across all three of our areas.New initiatives such as Dettol Daily Care and Re-energize in emerging marketsand the recently launched Lysol No-Touch Kitchen System in ENA underpinnedthis strong performance. Finish continues to perform well in a number ofmarkets globally, and particularly in the US where Quantum and All-In-1tablets and gel packs have gained market share. Veet delivered good growthbehind initiatives such as the Veet Easy Wax Electrical Roll-On. Harpicenjoyed very strong growth in LAPAC and RUMEA by driving category penetrationvia consumer education and increased distribution, backed by the continuedsuccess of Harpic Powerplus, and Harpic Hygienic blocks in all geographies.

Q4 LFL growth was +6%.

Home 23% of core net revenue

Net revenue increased to £1,966m, with LFL growth of +2%. Growthcame from Vanish where there has been excellent growth in a number of emergingmarket countries, combined with more stable market shares in ENA where we havelapped competitive entries. Growth was also driven by Air Wick which produceda good performance behind Freshmatic, candles and "Flip & Fresh".

Q4 LFL growth was +3%.

Portfolio 8% of core net revenue

Net revenue was £693m, with LFL growth of +1%. The totalperformance of -4% was primarily due to the discontinuation of the PrivateLabel business where all contracts are now terminated.

Q4 LFL growth was -2%.

New Product Initiatives: H1 2013

RB announces a number of new product initiatives for the first halfof 2013:

Health:

- Launch of Mucinex Sinus-Max range. A Triple Action formula thatrelieves sinus pressure, breaks down mucus and helps get rid of headaches withmaximum strength medicines.

- Launch of Nurofen next generation heat patch. A flexible patchthat starts to heat up in just five minutes from application.

- Launch of Nurofen Meltlets for youth, even on-the-go.

- Strepsils Children 6+ Lozenges. The product acts directly at thesite of pain, providing fast and long lasting relief for `little ones' sorethroats.

- Launch of Durex Feel Real. Polyisoprene condom using a softermore flexible material to provide a more natural feeling during sex.

- Launch of Gaviscon Instant Granules. Dissolves in seconds andsoothes in minutes.

- Launch of Scholl Hard Skin and Callus Express treatment. Itdelivers soft feeling skin in one application without using a blade.

Hygiene:

- Launch of Finish Quantum with Power Gel. New formula of FinishQuantum that now comes with a revolutionary gel chamber that deliversamazingly clean and shiny dishes.

- Launch of Dettol Kitchen Gels - India and South Korea. A uniquedish wash gel that gives you healthy dishes and kitchen surfaces. It makesyour dishes, sink and counter top sparkling clean and kills 100 times moregerms than an ordinary dish wash.

- Launch of Dettol Radiance Soap and Body Wash. Contains a uniqueblend of Vitamins B3 & C that helps rejuvenate and purify the skin for it toregain its radiance.

- Launch of Veet Naturals Hair Removal Cream. Combines Veet's hairremoval expertise with nature's skin care ingredients.

Home:

- Launch of Vanish Gel Treat and Go: Treat the stains directly,soak or add to the washing machine - for amazing stain removal first time.

- Launch of Air Wick Filter & Fresh Car. Physically captures odoursas well as adding great fragrance, thanks to its Activated Carbon Filter. Atruly clean, fresh fragrance experience!

- Launch of Air Wick EverFresh Gels. Slow release gel forbathrooms.

Financial Review

Basis of preparation. The unaudited financial information isprepared in accordance with IFRSs as adopted by the European Union and IFRSsas issued by the International Accounting Standards Board, and with theaccounting policies set out in the Group's 2011 Annual Report and FinancialStatements, and as updated by the 2012 Interim Statement.

Constant exchange. Movements in exchange rates relative to Sterlingaffect actual results as reported. The constant exchange rate basis adjuststhe comparative to exclude such movements, to show the underlying growth ofthe Group.

Net finance expense. Net finance expense was £15m (2011: netfinance expense of £19m), reflecting the acquisition of SSL and Paras. The2011 net finance expense includes a £4m exceptional charge in respect offinancial costs associated with the acquisition of SSL.

Tax. The tax rate was 24%, a reduction from the 2011 rate of 26%.This was primarily due to a 2% reduction in the UK corporate tax, associateddeferred tax benefits and the favourable settlement of certain tax cases.

Net working capital (inventories, short-term receivables andshort-term liabilities excluding borrowings and provisions) of minus £700m,which is in line with the 31 December 2011 level, despite the acquisition ofSchiff.Cash flow. Cash generated from operating activities was £2,423m(2011: £2,430m) and net cash flow from operations was £1,735m (2011: £1,581m).Net interest paid was £7m (2011: net interest paid of £13m) and tax paymentswere £528m (2011: £677m). Capital expenditure was lower than the prior year at£177m (2011: £205m). Acquisition of businesses of £877m related to theacquisition of Schiff, and other minor acquisitions.Net debt at the end of the year was £2,426m (December 2011: netdebt of £1,795m). This reflected strong free cash flow generation, offset bythe payment of two dividends totaling £916m and the acquisition of businesses(principally Schiff) for £877m. The Group regularly reviews its bankingarrangements and currently has adequate facilities available to it.

Restructuring charge. A total pre-tax exceptional charge of £135mhas been incurred during the year in respect of the following:

- The remaining restructuring costs in respect of the acquisitionof SSL;

- Costs associated with the new strategy and Private Label businessclosure costs and

- Acquisition costs associated with the acquisition of Schiff andother acquisitions

In FY 2011, an exceptional pre-tax charge of £96m was incurred, ofwhich £92m is reflected in reported operating profit and £4m is included innet interest.

Acquisition of Schiff. On 14 December 2012, the Group acquired Schiff whichwas funded by existing facilities. The following provisional items wererecognised on the Group's balance sheet as at 31 December 2012: Intangibleassets (£807m), Goodwill (£371m), net working capital assets (£26m), deferredtax liabilities (£267m), provisions (£45m) and other net assets (£27m). Theseprovisional values will be finalised during 2013.Balance sheet. At the end of 2012, the Group had total equity of£5,922m (2011: £5,781m), an increase of +2%. Net debt was £2,426m (2011: netdebt of £1,795m) and total capital employed in the business was £8,348m (2011:£7,576m).This finances non-current assets of £12,023m (2011: £11,188m), ofwhich £737m (2011: £732m) is property, plant and equipment, the remainderbeing goodwill, other intangible assets, deferred tax, available for salefinancial assets, retirement benefit surplus and other receivables. The Grouphas net working capital of minus £700m (2011: minus £701m), current provisionsof £128m (2011: £60m) and long-term liabilities other than borrowings of£2,668m (2011: £2,642m).

The Group's financial ratios remain strong. Return on shareholders'funds (net income divided by total shareholders' funds) was 31.0% on areported basis and 32.8% on an adjusted basis (2011: 30.3% on a reported basisand 31.6% on an adjusted basis).

Dividends. The Board of Directors recommends a final dividend of 78pence (2011: 70 pence), an increase of +11%, to give a full year dividend of134 pence (2011: 125 pence), an overall increase of +7%. The dividend, ifapproved by shareholders at the AGM on 2 May 2013, will be paid on 30 May toshareholders on the register at the record date of 22 February. Theex-dividend date is 20 February and the last date for election for the sharealternative to the dividend is 8 May. The final dividend will be accrued onceapproved by shareholders.

Contingent liabilities. The Group is involved in a number ofinvestigations by government authorities and has made provisions for suchinvestigations, where appropriate. Where it is too early to determine thelikely outcome of these matters, the Directors have made no provision for suchpotential liabilities.

The Group has received a civil claim for damages from theDepartment of Health and others in the United Kingdom, regarding allegedanti-competitive activity involving the Gaviscon brand. The claim is underreview and at this time the Directors do not believe that any potential impactwould be material to the Group financial statements.

The Group from time to time is involved in discussions in relationto ongoing tax matters in a number of jurisdictions around the world. Whereappropriate, the Directors make provisions based on their assessment of eachcase.

Post balance sheet event. On 8 January 2013 the Group obtained control ofOriental Medicine Company Limited, a manufacturer of traditional Chinese sorethroat products, by acquiring 100% of the share capital.

On 10 February 2013, the Group entered into a 3 year collaboration agreementwith Bristol-Myers Squibb, for a number of market-leading over-the-counterconsumer health care brands in Brazil, Mexico and certain other parts of LatinAmerica. The Group will make an upfront cash payment of $482m (£300m) to enterinto the arrangement which also includes personnel, supply contracts and anoption to acquire legal title to the related intellectual property at the endof the collaboration period for a multiple of earnings. The transaction willbe accounted for as a business combination and the Directors are in theprocess of revaluing the assets and liabilities acquired to fair value,including the value of any acquired intangible assets.

Further disclosure will be provided in the 2013 Half Year Announcement.

Medium term KPIs

We continue to target net revenue growth on average +200bps per annum aboveour market growth, and moderate operating margin expansion (ex RBP).

However, given the initial progress against our new strategy and our recentacquisitions we are accelerating two of our medium term KPIs from 2016 to2015. We are now targeting:

- Health & Hygiene revenues to be 72% of core net revenues by the end of 2015

- LAPAC and RUMEA revenues to be 50% of core net revenues by theend of 2015

Both these KPIs are one year ahead of our ingoing expectations.

2013 Targets

In 2012 we discontinued our Private Label business, and sold a number of smallnon-core brands. 2013 will benefit from a number of acquisitions. Togetherthey will have a net impact of c.+100bps. Taking these into account, we aretargeting:

- net revenue growth of +5-6%**;

- further increased investment in our brands (BEI); and

- maintain operating margins*

These targets exclude RBP.

* adjusted to exclude the impact of exceptional items.

** at constant rates including acquisitions and disposals / withdrawal fromPrivate Label and other minor items, excluding RBP.

For further information, please contact:

Reckitt Benckiser +44 (0)1753 217800Richard JoyceDirector, Investor RelationsAndraea Dawson-ShepherdSVP, Global Corporate Communication and AffairsBrunswick (Financial PR) +44 (0)20 7404 5959David Litterick / Max McGahanNotice to shareholders

Cautionary note concerning forward-looking statements

This document contains statements with respect to the financialcondition, results of operations and business of Reckitt Benckiser and certainof the plans and objectives of the Group with respect to these items. Theseforward-looking statements are made pursuant to the "Safe Harbor" provisionsof the United States Private Securities Litigation Reform Act of 1995. Inparticular, all statements that express forecasts, expectations andprojections with respect to future matters, including trends in results ofoperations, margins, growth rates, overall market trends, the impact ofinterest or exchange rates, the availability of financing to the Company,anticipated cost savings or synergies and the completion of strategictransactions are forward-looking statements. By their nature, forward-lookingstatements involve risk and uncertainty because they relate to events anddepend on circumstances that will occur in the future. There are a number offactors discussed in this report, that could cause actual results anddevelopments to differ materially from those expressed or implied by theseforward-looking statements, including many factors outside Reckitt Benckiser'scontrol. Past performance cannot be relied upon as a guide to futureperformance.

The Group at a Glance (Unaudited)

Quarter ended 31 December Full year ended 31 December 2012 2011 2012 2011 £m £m £m £m 2,476 2,416 Net revenue - total 9,567 9,485 +7% +3% Net revenue growth - +5% +4% like-for-like +6% +8% Net revenue growth - +4% +13% constant +2% +6% Net revenue growth - total +1% +12% Gross margin 57.9% 57.4% EBITDA - adjusted* 2,717 2,642 EBITDA margin - adjusted* 28.4% 27.9% EBIT 2,435 2,395 EBIT - adjusted* 2,570 2,487 EBIT margin 25.5% 25.3% EBIT margin - adjusted* 26.9% 26.2% Profit before tax 2,420 2,376 Net income 1,829 1,745 Net income - adjusted* 1,938 1,818 EPS, basic, as reported 252.5p 239.8p EPS, adjusted and diluted* 264.4p 247.1p

* Adjusted to exclude the impact of exceptional items.

Group balance sheet data 31 December 31 December 2012 2011 £m £mNet working capital * (700) (701)Net debt (2,426) (1,795)* Net working capital is defined as inventories, trade and other receivablesand trade and other payables.Shares in issue Millions31 December 2011 728.6Issued 5.631 December 2012 734.2Group Income Statement

For the 12 months ended 31 December 2012 (unaudited)

Unaudited Audited Year ended Year ended 31 December 31 December 2012 2011 (restated)(a) £m £mNet revenue 9,567 9,485Cost of sales (4,030) (4,036)Gross profit 5,537 5,449Net operating expenses (3,102) (3,054)Operating profit 2,435 2,395Operating profit before exceptional 2,570 2,487itemsExceptional items (135) (92)Operating profit 2,435 2,395Finance income 26 23Finance expense(b) (41) (42)Net finance expense (15) (19)Profit on ordinary activities before 2,420

2,376

taxation

Tax on profit on ordinary activities (587)

(622)

Net income for the period 1,833

1,754

Attributable to non-controlling 4 9

interests

Attributable to owners of the parent 1,829

1,745

Net income for the period 1,833

1,754

Earnings per ordinary share:Basic earnings per share 252.5p 239.8pDiluted earnings per share 249.5p 237.1p(a) The income statement for the year ended 31 December 2011 has been restatedto reflect a change in the Group's accounting policy for certain consumerpromotional costs. The Group now treats certain consumer promotional costs ascost of sales where previously these were classified as marketing in netoperating expenses. The Directors believe that this change provides morerelevant information about the performance of the Group and aligns the Group'saccounting policies with common industry practice.

(b) Finance expense for the year ended 31 December 2011 includes anexceptional charge of £4m, relating to financial costs associated with theacquisition of SSL.

Group Statement of Comprehensive Income

For the 12 months ended 31 December 2012 (unaudited)

Unaudited Audited Year ended Year ended 31 December 31 December 2012 2011 £m £mNet income for the period 1,833 1,754Other comprehensive incomeNet exchange losses on foreign currencytranslation, net of tax (255) (226)Actuarial losses, net of tax (49) (49)Gains on cash flow hedges, net of tax 3 3Reclassification of foreign currency 9 -translation reserves on disposal ofsubsidiary, net of taxOther comprehensive income for the period,net of tax (292) (272)Total comprehensive income for the period 1,541 1,482Attributable to non-controlling interests (1) 4Attributable to owners of the parent 1,542 1,478 1,541 1,482

Group Balance Sheet

As at 31 December 2012 (unaudited)

Unaudited Audited 31 December 31 December 2012 2011 £m £mASSETSNon-current assets:Goodwill and other intangible assets 11,175 10,258Property, plant and equipment 737 732Deferred tax assets 49 150Available for sale financial assets 2 10Retirement benefit surplus 27 32Other receivables 33 6 12,023 11,188Current assets:Inventories 735 758Trade and other receivables 1,407 1,442Derivative financial instruments 4 67Current tax receivables 20 21Available for sale financial assets 4 11Cash and cash equivalents 887 639 3,057 2,938Total assets 15,080 14,126LIABILITIESCurrent liabilities:Borrowings (3,271) (2,505)Provisions for liabilities and charges (128) (60)Trade and other payables (2,842) (2,901)Derivative financial instruments (43) (7)Current tax liabilities (203) (227) (6,487) (5,700)Non-current liabilities:Borrowings (3) (3)Deferred tax liabilities (1,814) (1,772)Retirement benefit obligations (426) (502)Provisions for liabilities and charges (100) (118)Non-current tax liabilities (311) (211)Other non-current liabilities (17) (39) (2,671) (2,645)Total liabilities (9,158) (8,345)Net assets 5,922 5,781EQUITYCapital and reserves:Share capital 73 73Share premium 184 86Merger reserve (14,229) (14,229)Hedging reserve 2 (1)Foreign currency translation reserve (131) 110Retained earnings 20,022 19,672 5,921 5,711Non-controlling interests 1 70Total equity 5,922 5,781

Group Statement of Changes in Equity

For the 12 months ended 31 December 2012 (unaudited)

Foreign Total currency attributable Non- Share Share Merger Hedging translation Retained to owners of controlling TotalUnaudited capital Premium reserve reserve reserve earnings the parent interests equity £m £m £m £m £m £m £m £m £mBalance at 1 73 59 (14,229) (4) 331 18,828 5,058 72 5,130January 2011Net income 1,745 1,745 9 1,754Other comprehensiveincomeActuarial losses, net of tax (49) (49) (49)Gains on cash flow 3 3 3hedges, net of taxNet exchange adjustmentson foreign currencytranslation, net of tax (221) (221) (5) (226)Total other comprehensive - - - 3 (221) (49) (267) (5) (272)incomeTotal comprehensive - - - 3 (221) 1,696 1,478 4 1,482incomeTransactions with ownersProceeds from share issue 27 27 27Share based payments 61 61 61Deferred tax on share awards (13) (13) (13)Current tax on share awards 2 2 2Dividends (873) (873) (7) (880)Non-controlling interest 1 1arising on businesscombinationPut option issued to non- (29) (29) (29)controlling interestTotal transactions - 27 - - - (852) (825) (6) (831)with ownersBalance at 73 86 (14,229) (1) 110 19,672 5,711 70 5,78131 December 2011Net income 1,829 1,829 4 1,833Other comprehensiveincomeActuarial losses, net of tax (49) (49) (49)Gains on cash flow hedges, 3 3 3net of taxNet exchange adjustments (250) (250) (5) (255)on foreign currency translation,net of taxReclassification of foreign 9 9 9currency reserves on disposalof subsidiary, net of taxTotal other comprehensive - - - 3 (241) (49) (287) (5) (292)incomeTotal comprehensive income - - - 3 (241) 1,780 1,542 (1) 1,541Transactions with ownersProceeds from share issue 98 98 98Share based payments 49 49 49Current tax on share awards 23 23 23Shares repurchased (535) (535) (535)and held inTreasuryDividends (916) (916) (4) (920)Acquisition of non-controlling (51) (51) (55) (106)InterestDeconsolidation of (9) (9)non-controllinginterest following loss ofcontrolTotal transactions - 98 - - - (1,430) (1,332) (68) (1,400)with ownersBalance at 73 184 (14,229) 2 (131) 20,022 5,921 1 5,92231 December 2012Group Cash Flow Statement

For the year ended ended 31 December 2012 (unaudited)

Unaudited Audited Year ended Year ended 31 December 31 December 2012 2011 £m £mCASH FLOWS FROM OPERATING ACTIVITIESCash generated from operations:Operating profit 2,435

2,395

Depreciation of property, plant & equipment, 148

157

and amortisation & impairment of intangibleassetsFair value (gains) / losses (7)

1

Gain on sale of property, plant & equipment and (13)

(9)

intangible assetsGain on sale of businesses (32)

-

Decrease / (Increase) in inventories 19

(131)

Increase in trade and other receivables (16)

(113)

(Decrease) / Increase in payables and (160)

69

provisions

Share based payments 49

61

Cash generated from operations: 2,423 2,430Interest paid (34) (35)Interest received 27 22Tax paid (528) (677)Net cash generated from operating activities 1,888

1,740

CASH FLOWS FROM INVESTING ACTIVITIESPurchase of property, plant and equipment (166)

(164)

Purchase of intangible assets (11)

(41)

Disposal of property, plant and equipment 13

5

Disposal of intangible assets 9

12

Acquisition of businesses, net of cash (877)

(460)

acquired

Disposal of businesses, net of cash disposed 81

-

Maturity / (Purchase) of short-term 7

(2)

investments

Maturity of long-term investments 14

2

Net cash outflow on deconsolidation of a (6)

-

subsidiary

Net cash generated used in investing (936)

(648)

activities

CASH FLOWS FROM FINANCING ACTIVITIESProceeds from issue of ordinary shares 98

27

Shares purchased and held as Treasury shares (535) -Proceeds from borrowings 887 249Repayments of borrowings (112) (400)Dividends paid to owners of the parent (916)

(873)

Dividends paid to non-controlling interests (4)

(7)

Acquisition of non-controlling interest (106)

-

Net cash used in financing activities (688)

(1,004)

Net increase in cash and cash equivalents 264

88

Cash and cash equivalents at beginning of 634

568

period

Exchange losses (16)

(22)

Cash and cash equivalents at end of period 882

634

Cash and cash equivalents compriseCash and cash equivalents 887 639Overdrafts (5) (5) 882 634

RECONCILIATION OF NET CASH FLOW FROM OPERATIONS

Net cash generated from operating activities 1,888

1,740

Net purchases of property, plant and equipment (153)

(159)

Net cash flow from operations 1,735

1,581

Management uses net cash flow from operations as a performance measure.

Earnings per Ordinary ShareFor the year ended 31 December 2012 (unaudited) 2012 2011 pence penceBasic earnings per share 252.5 239.8Diluted earnings per share 249.5 237.1Adjusted basic earnings per share 267.6 249.9Adjusted diluted earnings per share 264.4 247.1

Basic

Basic earnings per share is calculated by dividing the net income attributableto owners of the parent (2012: £1,829m (2011: £1,745m)) by the weightedaverage number of ordinary shares in issue during the year (2012: 724,238,235(2011: 727,628,580)).DilutedDiluted earnings per share is calculated by adjusting the weighted averagenumber of shares outstanding to assume conversion of all potentially dilutiveordinary shares. The Company has two categories of potentially dilutiveordinary shares: those resulting from exercises under the Executive ShareOption and Employee Sharesave schemes. The options only dilute earnings whenthey result in the issue of shares at a value below the market price of theshare and when all performance criteria (if applicable) have been met. As at31 December 2012, there were 4m (2011: 4m) of Executive Share Options notincluded within the dilution because the exercise price for the options wasgreater than the average share price for the year.The Directors believe that diluted earnings per ordinary share, adjusted forthe impact of exceptional items after the appropriate tax amount, providesadditional useful information on underlying trends to shareholders in respectof earnings per ordinary share.Details of the adjusted net income attributable to owners of the parent are asfollows: 2012 2011 £m £mNet income attributable to owners of the parent 1,829 1,745Exceptional items 135 92Exceptional charge included in finance expense - 4Tax effect of exceptional items (26) (23)

Adjusted net income attributable to owners of the parent 1,938 1,818

The reconciliation between the weighted average number of shares used in thecalculation of the earnings per share is set out below:

2012 2011 Average Average number of number of shares sharesOn a basic basis 724,238,235 727,628,580Dilution for Executive Options outstandingand Executive Restricted Share Plan 8,098,123 7,423,757Dilution for Employee Sharesave schemeoptions outstanding 659,327 780,818On a diluted basis 732,995,685 735,833,155

The Directors believe that diluted earnings per ordinary share, adjusted forthe impact of the exceptional charge (net of tax) in the current year,provides the most meaningful measure of earnings per ordinary share.