SKU Rationalization

April’2021

Reckitt Benckiser Group plc (RB)

 # of Skus Historical

In 2020, the # of SKUs increased by 14% and NR increased by 4%. Which means a
decrease in SKU productivity by 9%.
In 2021, RB is projecting to improve the productity of the SKUs in 3%.
** NR assumption for 21 is SOP growing +9% vs LY (+3% vs REPLAN)

Detail by Category
Comparison between the categories on SKU productivity

Veja and Vanish are the two

main categories with
significant # of SKUs 2
increase in 2021
 #26 SKUs in Delist threshold
Items per Brand
Threshold
19
• Vol < 2% of Segment
• NR < 2% of Segment
• GM < 2% of Segment
• Excluded MTO items 4
3
• Excluded NPDs 0

Full Potential GM
Improvement GM (£)
£981k mainly driven by 0.59m 0.0m -0.9m 0.45m
Special pack GM improvement

3
Assumption of potential substitute SKU improving GM
Reckitt Benckiser Group plc (RB)
 Delist
Discuss
Not to Delist
Veja VMU % of segment

Specific for C&C, the rest of the 750ml portfolio was delisted in Q4´20 to be replaced by 500ml that offers a better
price competitiveness and fits with the market dynamics.

Market share risk mainly in SP and RJ:

Watchouts:
100% MULTIPURPOSE - lower incremental volume (+0,4% for total VMU)
SHARE VALOR SHARE TDP
T. Brazil 1,0 1,2
- do not bring incremental penetration
Hiper 2,7 2,4 - volume is decreasing mainly in KAM (60% of total loss)
Super big 2,8 2,5 - 85% of consumers are migrating to other VMU formats
Super small 1,5 1,8

2 alternatives: replace to 2 VMUs + 1 bath pack aiming to achieve 34% GM or delist

**GM of the segment is 30,3% Penetration: 0,3% and 14% of incremental volume – we should have this benefit for Veja portfolio, that´s why the
reco is to delist only after VMU disinfection full line launch in April´22
SKUS which appeared on the last Portfolio review
 VMU Strategy: SKUs optimization From 20 to 16 SKUs
Evaluate in Q1 2022 if Hipermarket C&C specific item to be delisted na
improved it performance focused should be on 500ml
ORIGINAL CAMPESTRE FLORAL LAVANDA E ÁLCOOL MAÇÃ VERDE
500ml Reg 500ml Promo 700ml 750ml 500ml Reg 500ml Promo 750ml 500ml Reg 500ml Promo 750ml 500ml Reg 500ml Promo 500ml

% Vol. T. Veja 6,57% 10,71% 0,98% 1,25% 1,34% 2,82% 0,53% 1,10% 2,23% 0,32% 1,03% 2,63% 0,65%

% NR T. Veja 6,70% 10,26% 0,59% 0,83% 1,37% 2,69% 0,35% 1,11% 2,11% 0,21% 1,06% 2,47% 0,70%

% GM T. Veja 44,4% 40,7% 32,8% 36,8% 42,7% 38,2% 33,9% 42,5% 38,5% 34,4% 41,4% 36,1% 44,3%

Share Valor 9,4 14,3 0,9 1,1 1,7 2,3 0,5 1,2 1,6 0,3 1,1 1,6 0,7

DELIST Q1
2021 EPD as Perfume Explosion

BIO ÁLCOOL PURPOSE A&P ANTIBAC PERFUME EXPLOSION PROFESSIONAL

Share Valor vs YTD – GM%, NR% & Volume vs Plan 21

500ml 750ml 500ml 500ml Cereja Tropical Frescor Violeta Maçã Verde 5L

DELIST Q1 DELIST Q1
DESOVA
2021 2022
H1´21

% Vol. T. Veja 1,24% 0,17% 0,45% 0,55% 0,12% 0,12% NEW NEW
2022 2021
% NR T. Veja 1,32% 0,12% 0,46% 0,57% 0,13% 0,13%

% GM T. Veja 43,4% 36,6% 36,5% 39,4% 44,1% 44,1%

Share Valor 1,1 0,2 NA 0,1 NA NA

 PROMO PACKS strategy: SKUs optimization + profitability
From 6 to 4 SKUs

Delist in
Q3´21
VMU – Packs
4 VMU 3 VMU VMU + BAN + COZ 2 Power Fusion Power Fusion + 2VMU 2VMU + 1 COZ

% Vol. T. Veja 1,49% 6,77% 0,82% 0,43% 0,54% 0,2%

% NR T. Veja 1,20% 4,45% 0,82% 0,51% 0,43% 0,2%

% GM T. Veja 21,8% 4,8% 11,7% 12,9% -3,2% 34,2%

Share Valor 14,3 14,3 14,3 0,5 0,5 -

Share Valor vs YTD – GM%, NR% & Volume vs Plan 21

May´21: Choose only 1 option or replace VMU + BATH + KIT to “2 VMUs +

Bath”

Improve the profitability:

E2E: Sept´21
New channel strategy: Q4´21
 % of segment

Veja VPS
**GM of the segment is 34%

1. Higher risk of share lost 3. Romance brings a higher level of loyalty

100% FD
Romance 500ml Romance 1L Energia 1L Energia 2L
T. Brazil 0,4 0,5 0,4 0,6
Hiper 0,5 0,6 0,8 1,7
Super Big 0,6 0,7 0,8 0,9
Super Small 0,5 0,5 0,5 0,4
Indep. 0,3 0,2 0,2 0,1
C&C 0,3 0,7 0,5 0,6
4. Energia is gaining penetration over the last months
2. These itens bring incremental buyers for total VPS

Watchout: Romance consistent volume loss to other

brands
Veja VPS
% of segment

500ml was delisted in Q4´20 and 1L/ 2L should be delisted when Euforia will be relaunched in BB

Keep Alegria full line to complete Aroma Sense total portfolio

**GM of the segment is 34%

SKUS which appeared on the last Portfolio review

 Estratégia de VPS: re-equilibrar portfolio entre baseline e premium From 30 to 28 SKUs

DOY PACK LAVANDA DA FRANÇA FLORES DO MEDITERRÂNEO TULIPA DA HOLANDA JASMIM DO CARIBE EUFORIA
500 ml 5OOml 1lt 2lts
5OOml 1lt 2lts 5OOml 1lt 2lts 5OOml 1lt 2lts 5OOml 1lt 2lts
Lavanda
(FROM 12 TO 16)
BASE BUSINESS

NEW
% Vol. T. Veja 2023 1,25% 1,98% 5,14% 0,90% 1,43% 3,10% 0,45% 0,36% 0,45% 0,45% 0,38% 0,56% NEW
2022 Migração
% NR T. Veja 1,01% 0,46% 3,40% 0,73% 1,03% 2,10% 0,34% 0,25% 0,29% 0,35% 0,25% 0,34%
para baseline
%GM 29,2% 1,42% 25,2% 27,3% 27,6% 26,8% 24,2% 21,0% 22,9% 27,9% 20,1% 19,5%

Share Valor 1,3 1,6 3,5 1,0 1,2 2,1 0,0 0,0 0,0 0,0 0,0 0,1

2022: delist when Euforia become BB DELIST

ROMANCE ENERGIA ALEGRIA FRESCOR BEM ESTAR EUFORIA

5OOml 1lt 2lts 5OOml 1lt 2lts 5OOml 1lt 2lts 5OOml 1lt 2lts 5OOml 1lt 2lts 5OOml 1lt 2lts
(FROM 18 TO 12)
AROMA SENSE

% Vol. T. Veja 0,15% 0,26% 0,55% 0,13% 0,28% 0,37% 0,12% 0,26% 0,39% 0,06% 0,15% 0,24% 0,15% 0,16% 0,19% 0,16% 0,17% 0,18%

% NR T. Veja 0,17% 0,26% 0,49% 0,13% 0,26% 0,35% 0,14% 0,28% 0,33% 0,07% 0,15% 0,21% 0,15% 0,14% 0,16% 0,15% 0,15% 0,17%

%GM 35,5% 35,5% 34,8% 33,9% 34,6% 34,4% 35,7% 35,7% 35,0% 34,8% 35,3% 33,9% 25,9% 27,4% 29,8% 32,6% 33,1% 44,5%

Share Valor 0,3 0,4 0,7 0,2 0,4 0,5 0,4 0,5 0,4 0,2 0,2 0,3 0,0 0,0 0,0 0,0 0,0 0,0

Share Valor vs LP – GM%, NR% & Volume vs Plan 21 DELIST

 Delist
Discuss

Veja VLP % of segment **GM of the segment is 49,9% Not to Delist

General usage new segment which is growing in volume and value. Veja plays only with “Uso Direto”
Importance
MAT'20 MAT'21 VAR
Cloro Gel
T. HD 6% 5%
T. General Use 3% 4%
T. Kitchen 6% 6%
T. Disinfectant 34% 37%
T. Bathroom 5% 5%
T. Glass 3% 3%
T. FD 17% 17%
T. MPC 21% 20%

Veja is reducing relevance while gel format is raising trial and importance

Plan: replace 2 SKUs of “Uso Direto” to new Veja Cloro Gel in Q2´22
 Delist
Discuss

Veja Bathroom % of segment **GM of the segment is 64,6%

Not to Delist

Bath is growing as a segment and Bath Oxi plays a very important role, supporting growth and profitability

MS – Veja Bath

34,7% 37,3% 36,2% 35,6% 35,8% 33,5% 36,0% 34,6%

32,7% 32,9% 34,1% 35,7% 35,1%
32,4% 32,8% 31,8% 33,3%

7,9% 8,9% 7,9% 8,2% 7,8% 7,6% 6,8% 7,3% 7,2% 7,5% 7,6% 8,1% 9,0% 9,3% 9,3% 8,7% 8,6%

YTD'20 YTD'21 JAN 2020 FEV 2020 MAR 2020 ABR 2020 MAI 2020 JUN 2020 JUL 2020 AGO 2020 SET 2020 OUT 2020 NOV 2020 DEZ 2020 JAN 2021 FEV 2021 MAR 2021

T. VEJA BATH OXY ACTION T. VEJA BATH X-14

Sellout
Sellin
YTD'20 YTD'21 Var.
YTD'20 YTD'21 Var.
T. BATH 68.301 75.806 11,0%
T. VEJA BATH 447.521 460.600 2,9%
T. VEJA BATH 27.770 33.048 19,0%
T. VEJA BATH OXY ACTION 41.883 64.434 53,8% 11
T. VEJA BATH OXY ACTION 5.423 6.738 24,3%
T. VEJA BATH X-14 181.878 165.866 -8,8%
T. VEJA BATH X-14 22.347 26.308 17,7%
 Delist
Discuss

Vanish % of segment
Not to Delist

Important to hold %TDP and equity; also used as primary pack (in addition to 450g) for the segment.

Pre.Treat as MS% leaky bucket; plan 2022 to address portfolio gaps and close a final strategy for
the segment. Reco to reassess in 6 months.

SKUS which appeared on

the last Portfolio review
Item not listed on MSL; opportunity to bring new claims and reframe value proposition.

12
 Delist
Discuss

Pest - SBP Aero Not to Delist

% of segment

**GM of the segment is 41,8%

CATEGORY RECOMMENDATION

VAR MAT21 MS% Main Focus

SKU MS% T.BR VAR MAT21 vs. 20 WD1 WD2
vs. 20 Channel/Region Channel/Region
SBP MLT CITR 12X550ML 0,80% +10bps 4,2% +64bps 18 73 Direct Channel
SBP MLT CITR 24X273ML 0,60% +38bps 1,1% +60bps 16 56 NENO
SBP ANTI AEDES 273ML 0,40% +28bps 1,0% +74bps 22 75 NENO
SBP ANTI AEDES 450ML 1,20% +75bps 3,2% +189bps 30 84 Direct Channel

▪ 550ml: core item for KAM w/ MS% parity vs. multi & high distribution. Lost
MS% in short term due to cans availability

▪ 450ml ANTI AEDES: also focused on KAM/SUPER, started MS% recover after
line price adjustment

▪ 273ml: increased significant WD in NENO (higher sell-in during issues

w/cans) and started to perform in NENO → here the suggestion is to track
vs. 380ml for 6 months

Reckitt Benckiser Group plc (RB) 14

Next Steps

• Develop a Threshold for MTO portfolio

• Next portfolio Review to be in Sep/21