Bringing Our Purpose to Life
Our strategic moves during 2017 position the Group extremely well for the future.
We employ outstanding people, who work in a unique culture that harnesses their passion and allows them to make a real difference
We have 20 Powerbrands, which are leaders in their markets and offer faster growth and higher margins
We have deep consumer understanding, proven R&D capabilities and an agile organisation, which gets products to market fast
We develop strong, value-creating relationships with customers, consumers, suppliers and communities
Our business is underpinned by well-invested manufacturing sites, R&D laboratories and logistics centres
Shareholders’ equity, debt and retained profit give us the financial resources to implement our strategy
In 2017, RB was organised into three operating segments – Europe and North America (ENA), Developing Markets (DvM) and Infant and Child Nutrition (IFCN).
Europe (including Russia/CIS and Israel), North America and Australia/New ZealandNet Revenue £6.7bn
Africa, Middle East (excluding Israel), Turkey, Asia (excluding Russia/CIS) and Latin AmericaNet Revenue £3.3bn
IFCN is the acquired MJN business, which includes the world’s leading franchise in infant and children’s nutrition
Nourishing the best start to life with the IFCN business, and treatments for everyday issues such as pain and flu, wellness products covering sexual wellbeing, footcare, vitamins and supplements
Personal and home hygiene products, which provide the foundation for healthy living
Brands that make the home environment more harmonious and less stressful, so families are happier every day
From Q1 2018, RB is developing a platform for future growth and outperformance by creating two focused, fully accountable and more agile business units - Health and Hygiene Home.
Powerful long-term trends are influencing our markets and driving demand for our products, from longer lives and increasing incomes to the relentless rise of technology and e-commerce.
We have designed our strategy to respond to these trends and deliver long-term success.betterbusiness
How we outperform, through our focus on our brands, markets, people and creating a digitally connected companybettersociety
How we support our communities and drive quality and safety in all we dobetterenvironment
How we reduce our environmental impact and ensure we source materials responsibly
Our three-part model enables us to rapidly scale up our ideas and offer them to consumers worldwide.Create
Create innovative products that meet consumers' under-served demandsScale
Scale our innovations, to make them as global as possibleActivate
Activate our ideas through our customer relationships, while driving consumer demand through offline and digital channels
Our values help us to realise our vision and purpose and are key to our distinct culture.
RB provides exciting and challenging careers, with excellent rewards for outstanding performance
Consumers receive innovative, safe and high-quality products, which give them healthier lives and happier homes
Total Shareholder Return since adoption of new strategy in 2012
Shareholders benefit from strong operational and financial performance, resulting in attractive returns via dividends and long-term share price appreciation
people reached with health and hygiene messaging
Our products and social programmes lead to improved health and hygiene standards
Customers gain from selling our leading brands, which grow each category and drive customer value in relevant channels
We have 16 Powermarkets. These are the markets which have the highest absolute growth potential for us and where we see the greatest ability to win. They are weighted towards developing markets which have greater economic growth, rising middle classes and more opportunities to increase market penetration.1 As a percentage of RB base business
We invest heavily in our portfolio of 20 market-leading Powerbrands. They provide over 80% of our revenue and offer higher growth and margins.1 As a percentage of RB base business
Growth in Net Revenue, excluding the impact of changes in exchange rates, acquisitions and disposals
|3 - 5%||2 - 3%|
|Ambition||Upper end||In line to upper end|
Females in Top 40024% Target:
Expand our focus on diversity and talent by improving the retention rates of women from managers to senior managers. This is in line with out goal of doubling the number of women in senior management roles from a 2016 base lineCommentary
Our people are what make us outperform. Respecting them, keeping them safe and developing their skills and careers is essential if we are to be successful. We recognise and embrace the value that a diverse, engaged and motivated workforce can bring.
Continued decrease of rateCommentary
Definition: Number of incidents resulting in at least one lost day of work per 100,000 hours worked.Increase in our LWDAR since 2012: 13%*
*We have revised the classification of our Lost Work Day Accident Rate (LWDAR) from 2017 to include accidents associated with organised travel and commercial offices. Excluding accidents from organised travel and commercial offices, there has been a 36% reduction in LWDAR since 2012.
Improving health and hygiene through our products, brand educational programmes and corporate social investment.
Continual increase in social impact investmentCommentary
We recognise the role we must play in making a positive impact and transforming the health and lives of communities around the world. Our social impact investment strategy focuses on three areas that have a direct connection with our business: sexual health and rights, malnutrition and stunting, and health and hygiene.Note: 2017 includes broader social impact investment and brand contributions
33% of Net RevenueCommentary
Designing and launching more sustainable products.
1 As a percentage of RB base business
Reducing our GHG emissions in our operations and across our product lifecycle, through energy efficiency programmes, investing in renewable technologies and procuring electricity from renewable sources, and product innovation.
The percentage reduction in our total carbon footprint per dose of product manufactured, against our 2012 baseline.(2)% Target to 2020:
Reducing carbon footprint per dose of product remains challenging
The percentage reduction in total water consumption per unit of production, against our 2012 baseline(37)% Target to 2020:
Total water used during the product’s life cycle, from material sourcing to disposal or recycling, adjusted to reflect water scarcity at each stage, and divided by the number of product doses manufactured(8)% Target to 2020:
Reducing the water impacts of our products throughout their lifecycle, including reducing water use in our manufacturing operations, especially in water-scarce regions.
The percentage of our factories achieving zero waste to landfill, including both hazardous and non-hazardous waste100% Target to 2020:
The percentage reduction in manufacturing waste per unit of production, against our 2012 baseline(21)% Target to 2020:
Reducing our manufacturing waste and ensuring zero manufacturing waste is sent to landfill.