BUILDING BRANDS

FOR LIFE. TODAY

AND FOR FUTURE

GENERATIONS.

PZ Cussons plc / Annual Report and Accounts 2024

2024

2023

2022

£527. 9m

£656.3m

£592.8m

2024

2023

2022

(19.6)%

10.7%

(1.7)%

2024

2023

2022

4.4%

6.1%

2.9%

2024

2023

2022

(15.9)%

9.1%

11.1%

2024

2023

2022

11.0%

11.2%

2024

2023

2022

£(115.3)m

£5.7m

£(9.8)m

11.3%

2024

2023

2022

3.60p

6.40p

2024

2023

2022

(13.60)p

8.70p

11.88p

Financial performance in FY24 has been

materially impacted by the devaluation

of the Nigerian Naira which commenced

in June 2023.

Summary of Financial Performance

FOR EVERYONE,

FOR LIFE,

FOR GOOD.

Revenue

£527.9m

Operating margin – Statutory

(15.9)%

Dividend per share

3.60p

Revenue growth – Statutory

(19.6)%

Operating margin – Adjusted¹

11.0%

Basic (loss)/earnings

per share – Statutory

(13.60)p

LFL revenue growth¹

4.4%

Net (debt)/cash

£(115.3)m

2024

2023

2022

8.02p

11.23p

12.57p

Adjusted basic earnings per share¹

8.02p

1 AlternativeperformancemeasuresareexplainedandreconciledtothemostdirectlycomparablefinancialmeasurepreparedinaccordancewithIFRSonpages206to209.

PZ Cussons plc / AnnualReportandAccounts2024

Europe and the Americas

Asia Pacific

Africa

Revenue

split

38%

29%

33%

SeeKeyPerformanceIndicatorsonpage 16

Readourreportonline

www.pzcussons.com/investors

Contents

CONTENTS AT A GLANCE

STRATEGIC REPORT

02 A Word from our Chair

04 PZ Cussons at a Glance

06 FY24 A Year in Review

10 Chief Executive's Review

14 Business Model

16 Key Performance Indicators

18 Financial Review

22 People and Culture

28 Sustainability

38 Taskforce on Climate-

Related Financial

Disclosures

42 Risk Management and

Principal Risks

51 Viability and Going Concern

54 Non-Financial

and Sustainability

Information Statement

55 Section 172(1) Statement

GOVERNANCE

64 Our Board

66 Our Executive

Committee

68 Chair’s Introduction

to Governance

70 Board Activity at a Glance

72 Corporate Governance

Statement 2024

80 Nomination

Committee Report

84 Audit and Risk

Committee Report

90 Environmental and Social

Impact Committee Report

92 Remuneration

Committee Report

98 Remuneration Policy

107 Report on the

Directors’ Remuneration

120 Report of the Directors

FINANCIAL STATEMENTS

128 Independent

Auditor’s Report

138 Consolidated

Income Statement

139 Consolidated Statement

of Comprehensive Income

140 Consolidated Balance Sheet

142 Consolidated Statement

of Changes in Equity

143 Consolidated Cash

Flow Statement

144 Notes to the Consolidated

Financial Statements

198 Company Balance Sheet

199 Company Statement

of Changes in Equity

200 Notes to the Company

Financial Statements

ADDITIONAL INFORMATION

206 Alternative Performance

Measures

210 Greenhouse Gas Emissions

(former reporting

methodology)

211 Glossary

212 Shareholder Information

FY24 A Year in Review

Sustainability

Financial Review

People and Culture

Wecurrentlyreporttheactivitiesofourbusiness

acrossthreeoperationalsegments,describedright:

HOW WE REPORT

Governance

FINANCIAL STATEMENTS ADDITIONAL INFORMATIONGOVERNANCESTRATEGIC REPORT

A Word from our Chair

During the year, the Board

carried out a detailed strategic

review which we believe will

maximise shareholder value

inthe years ahead.

David Tyler

Chair

DEAR SHAREHOLDER

I am pleased to present the Annual Report for PZ Cussons for

the year ending 31 May 2024.

TheGroupwasbadlyaffectedbythesteepdeclineinthevalue

oftheNaira,theNigeriancurrency,fallingby70%againstSterling

overthecourseofthetwelvemonths.Despitesignificantprofit

growthintheUKandsomeotherpartsoftheGroup,weare

thereforesettingoutadisappointingsetofresultsinthepages

whichfollow.Earningspersharedeclinedsubstantiallyandwe

thereforeintendtoreducetheannualdividendby44%.

Duringtheyear,theBoardcarriedoutadetailedstrategicreview.

Asaresultofthis,weannouncedaplantofocusourportfolio

onfeweractivities–thosewherewecanbemostcompetitive.

Webelievethatthiswillmaximiseshareholdervalueinthe

yearsahead.

FY24 performance

InmyChair’sStatementthistimelastyear,Iwarnedaboutthe

seriouseffectofthedevaluationoftheNairaontheCompany.

Sincethen,ithasfallenfurther.Thishasbeenbyfarthemost

significantchallengewehavefacedinthelasttwelvemonths,

especiallyasNigeriahasbeenoneoftheGroup'slargest

marketsformanyyears.

ThisdevaluationhasputenormouspressureontheNigerian

consumerandonourbusinessinNigeria.Ithasalsoputpressure

ontheGroup’sfinancialpositionbecauseofthehighlevelsof

cashheldinNaira,thevalueofwhichdeclinedgreatlywiththe

devaluation.ThecashhadbeenleftinNairabecauseofthe

barriersinplaceinNigeriatoinhibitoverseascompaniesreturning

profitsanddividendstotheirparents.Thedevaluationreduced

thevalueoftheGroup’scashby£140million.

Theexecutiveteamhasworkedtirelesslyintheyeartofind

effectivemeanstoreducetheGroup’sfutureexposuretothe

Naira.IthasalsofoundwaystorepatriatecashfromNigeriawhich

hashelpedustopaydowntheGroup’sgrossdebt.Thereisnow

minimalsurpluscashinNigeria.

ThisissuehasnaturallybeenamajorfocusfortheBoardthroughout

theyear.ItremainsfirmlyinourmindstodayastheNairahas

weakenedfurtheroverrecentmonths.

PZ Cussons plc / AnnualReportandAccounts2024 / Strategic Report

OutsideNigeria,however,wemadeprogressagainstthestrategic

prioritieswesetoutatthestartofFY24.Ihavebeenparticularly

pleasedtoseethegrowthofrevenueandprofitinourUK

personalcarebusinesswhichbenefitedfromnewleadership

andfromorganisationalchangesannouncedpartwaythrough

theyear.ChildsFarmcontinuestomakegoodprogressandour

Australianbusinessout-performedexpectations,growingits

profitmateriallyinFY24.

Maximising shareholder value through

portfolio transformation

TheBoard’smainobjectiveistomaximiselong-termshareholder

value.Inthelightofthisyear’sresults,wehavespentsignificant

timedeliberatingonwhatouroptimalportfolioforthefuture

shouldbe,andvigorouslydebatingthealternatives.Asaresult,we

haveagreedtofocustheGrouponfeweractivities–thosewhere

wehavethepotentialforcompetitiveadvantageinmarketswhich

canbeexpectedtogrow.So,weannouncedinApriltheplanned

saleofSt.TropezandastrategicreviewofourAfricaportfolio.

St.Tropezisaveryattractivebrandwithenormousgrowth

potential.However,webelievethattheseopportunitieswouldbe

bettercapturedunderalternativeownershipandasalesprocess

isthereforenowwellunderway.

OurportfolioinAfricaiscomplexandsoweareevaluating

strategicoptionsbothtoreduceriskandtomaximiseshareholder

value.Thereisnopre-determinedoutcomebut,havingreceived

expressionsofinterestfromanumberofparties,theBoardisnow

exploringtransactionsthatcouldleadtothepartialorfullsaleof

ourAfricanbusiness.

TheaimwithbothoftheseprocessesistotransformPZCussons

intoabusinesswithamorefocusedportfolio,delivering

sustainable,profitablegrowth.Weplantouseanyproceeds

initiallytopaydowndebt.Beyondthat,weplantoinvest

organicallyinthebusinesstoenhanceperformanceandtolookin

adisciplinedwayatpotentialacquisitionsofbrandsorbusinesses

whichfitcloselywithourfuturemorefocusedactivities.We

willupdateinvestorsinduecourseaboutprogressinexecuting

thisstrategy.

Directorate changes

JeremyTownsendsteppeddownfromtheBoardofPZCussons

inFebruarytofocusonhisexecutiveresponsibilitiesandIwould

liketothankhimforhiscontributiontotheCompany.Overhis

fouryearsontheBoard,JeremywasastrongandeffectiveNon-

ExecutiveDirectorandwearegratefulforhischairmanshipofthe

AuditandRiskCommittee.

InMay,weweredelightedtowelcomeVivekAhujatothe

BoardasaNon-ExecutiveDirectorandasChairoftheAudit

andRiskCommittee.Hebringsawealthofexperiencefromhis

extensivecareerinseniorfinancialandgeneralmanagement

rolesininternationalfinancialservicesandprivateequity.Heis

alreadymakingasignificantcontributiontotheBoardandthe

widerbusiness.

Inaddition,IwouldliketoexpressmygratitudetoJohnNicolson

whohasdecidedtostanddownfromtheBoardatourAGMon

21November2024.JohnhasbeenaDirectorforeightandahalf

yearsandourSeniorIndependentDirectorfornearlyallofthat

time.Hiswisdomandhiscourtesyhavemadetheirmarktogreat

effectaroundtheBoardtableovertheyearsandtheCompanyhas

benefitedfromhislongexperienceatinternationalfast-moving

consumergoodscompanies.

WehavedecidednottobringanotherNon-ExecutiveDirector

ontotheBoardtoreplaceJohnatpresent,preferringinsteadto

waitforourplannedstrategicchangestoprogressbeforedeciding

whatadditionalskillswillbemostimportantfortheBoardinthe

comingyears.However,wehavedecidedthatVivekAhujawill

beappointedasournewSeniorIndependentDirectoronJohn’s

retirement.Ilookforwardtoworkingcloselywithhim.

Finally,onbehalfoftheBoard,Iwouldliketothankallour

colleaguesverymuchfortheirskillandhardworkinwhathas

beenachallengingyear.Iwouldalsoliketothankourcustomers,

suppliers,shareholdersandotherstakeholdersfortheir

partnershipandtrustinPZCussons.

David Tyler

Chair

STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION

PZ Cussons at a Glance

WE ARE A BRANDED

CONSUMER GOODS BUSINESS.

£527.9m

Revenue in FY24

140 years

Of heritage

4.4%

LFL revenue growth

in FY24

2,500+

Employees

Priority markets

With140yearsofheritage,weemploy

over2,500peopleacrossouroperations

inEurope,NorthAmerica,AsiaPacific

andAfrica.Sinceourfoundingin1884,

wehavebeencreatingproductsto

delight,careforandnourishconsumers.

Wearebuildingonthesefoundations

withourstrategyandbusiness

transformation,aswelooktothefuture.

1 AlternativeperformancemeasuresareexplainedandreconciledtothemostdirectlycomparablefinancialmeasurepreparedinaccordancewithIFRSonpages206to209.

2 ExcludingGroupcentralrevenue.

Must Win Brands

(51% of FY24 revenue)

• Competitivebrandinvestmentlevels

• Stronginnovationpipeline

• Focusforcommercialcapabilities

• Validated,repeatablegrowthwheel

• Robustandregularmanagementreview.

Portfolio Brands

(49% of FY24 revenue)

• Brilliantexecution

• Clearroleforeachbrand

• Resourcestailoredtospecificrole

• Incubatorsupportforbrandswithfurtherpotential.

Weseeourbrandsasbeing‘locally-loved’,solidifyingtheirmarket

presencebyusinglocalknowledgeandcustomerrelationshipsto

competeagainstglobalrivals.Simultaneously,wecapitaliseonour

globalcapabilities,efficienciesandbestpracticestoout-perform

domesticoperators.

Locally-loved brands

Itisthisapproachthatpositionsourbusinessnotasmulti-

national,butas'multi-local'.

Acrossthesemarkets,ourMustWinBrands,andthemajorityof

ourPortfolioBrands,arecentredaroundthethreecorecategories

ofHygiene,BabyandBeauty.

PZ Cussons plc / AnnualReportandAccounts2024 / Strategic Report

Our Markets in Focus

Macro-economic

environment

Changing economic conditions drive near-term trading performance

Anumberofourmarketshaveseenchallengingmacro-economicconditionsduringFY24.Mostnotably,Nigeria

inJune2023experiencedadevaluationofitscurrency,theNaira.Inadditiontocreatinginflationarypressures

inthemarket,thishashadamaterialimpactonthetranslationoftheGroup'sreportedresults.

Evolving stakeholder expectations create a number of commercial risks and opportunities

Consumersnowhavehigherexpectationsforthebrandstheybuyandthecompaniesbehindthem.They

areactivelyseekingreassuranceregardingethicallysourcedingredients,absenceofharshchemicalsand

environmentalhazards,aswellasaguaranteethatproductsarecruelty-free.Additionally,consumersare

becomingmoreconsciousofpackagingchoices,favouringrecycledandrecyclablematerialsovervirginplastic.

Africa and Indonesia are expected to benefit from long-term growth

Notwithstandingshort-termvolatilityanddisruptionasnotedabove,weseelong-termopportunitiesinour

developingmarkets.Nigeria,forexample,isexpectedtoseeitspopulationdoubleby2050,becomingthe

world’sthirdmostpopulouscountry,trailingonlyChinaandIndia.

Changing consumer buying habits have implications for our route-to-market strategy

Acrossanumberofourmarkets,weareseeingchangestothewayinwhichconsumerssearchfor,andpurchase,

goods.Indevelopedmarkets,consumersareincreasinglybuyingonline,frequentlyhavinglearnedabout

productsandofferingsthroughdigitalmedia.Whileindevelopingmarkets,weareseeingashiftasconsumers

movetowardssupermarketsandmodernretailandawayfromthelegacymarketsandtraditionaltrade.

Rapidly changing technologies can offer risks and opportunities and drive investment choices

TechnologicalchangeiseverpresentandwecontinuetoseeasignificantriseintheuseofgenerativeArtificial

Intelligence(AI).Whileitremainsearlydays,thetechnologycouldhaveprofoundimplicationsformanyaspects

ofourbusiness,creatingefficienciesandrequiringnewwaysofworking.

Channel

disruption

Technology

Sustainability

Developing

markets

Trends affecting our business

FY24 revenue split

Our priority markets are:

UK Nigeria Indonesia Australia/New Zealand

Themajorityofourbrandsoperateinthesefourmarkets.

LeadingpositionsinWashingand

Bathing,withstrongdistribution

andin-housemanufacturing

ANZ

LeadingHomecareandBaby

Foodbrands,focusedon

Australia’stwoleadinggrocers

NIGERIA

StrongfootprintinFamilyCare

withjointventurepartnerships

inElectricalsandEdibleOils

INDONESIA

Leadingtoiletriesbrandwith

CussonsBaby

By region

34%

18%

24%

11%

13%

OTHER*

* OtherrevenueprimarilyrelatestoouroperationsintheUS,GhanaandKenya,andothermarketsaccessedthroughdistributors.

STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION

FY24 A Year in Review

Our progress

Investinginour

brandstodrive

awarenessand

consumer loyalty.

Winningwhere

the shopper shops.

Simplifyingour

operationsand

portfolioto

improve returns

andreducerisk.

Investinginour

teamstostrengthen

capabilities.

Actinginthe

rightwayfor

long-termgrowth.

BUILD

BRANDS

BUILD BRANDS

SERVE

CONSUMERS

REDUCE

COMPLEXITY

DEVELOP

PEOPLE

DEVELOP PEOPLE

GROW

SUSTAINABLY

GROW SUSTAINABLY

InMarch2021,wesetoutourstrategy:‘Buildingbrandsforlife.Todayandforfuturegenerations.’Wedefinedwherewewill

play,focusingonthecorecategoriesofHygiene,BabyandBeautyinourfourprioritymarketsoftheUK,ANZ,Indonesiaand

Nigeria,withaparticularfocusonourMustWinBrands.Underpinningthisstrategy,ourgrowthwillbeenabledbystrengthening

ourapproachtocapabilities,talentandleadership,cultureandsustainability.Runningthrougheverythingwedoisadriveto

dramaticallyreducecomplexityacrossourbusiness.

Throughouttheyear,wemadegoodprogressacrossthekeyfocusareasofourstrategy.

Introduction

OUR STRATEGY

AND PROGRESS.

A new people strategy

Weestablishedanewpeoplestrategytoenableusto

attract,growandretaintalentedpeopleatPZCussons.

Aspartofthis,wecreatedanextendedleadership

teamcalled‘PZPioneers’-agroupofaround50

ofourmostseniorleaderswhoreporttoour

ExecutiveCommitteewithamissiontodrivebusiness

performanceandemployeeengagement.Wehave

alsorenewedourcommitmenttoDiversity,Equityand

Inclusiontoensurethatouremployeesfeelapartof,

andreflect,thecommunitiesthatweserve.

Brand specific sustainability plans

Wedevelopedtailoredsustainabilityplansforbrandssuchas

SanctuarySpaandOriginalSource,withanarrativethatisintimately

linkedtoeachbrandpurpose.Aspartofthis,apackaging‘future

plan’wasdesignedforourUKandIrelandandANZbusinessunits,

withprioritisedupstreamtechnologiesandotherchangesthatwill

allowustomeetourcorporatepackaging-relatedgoalsby2030.

AUG 2023 SEP 2023

Read more on page 32

PZ Cussons plc / AnnualReportandAccounts2024 / Strategic Report

GROW SUSTAINABLY

Reducing our impact

on the environment

Ourcommitmenttosustainabilityis

reflectedintherobustgovernance

structurewehaveestablishedfor

managingScopes1and2emissions,

waterandwasteinthelastdecade.In

FY24,wehavemadesolidimprovements

inmeasuringourScope3emissionsasan

annualpractice,beingabletocalculate

andverifyourFY21baselinewithan

improvedmethodology,andourFY23

inventory.Thisbuildsonourrobustclimate

planandimprovedperformanceinour

CDPsubmission,progressingourscore

in2023comparedto2022.

FEB 2024

BUILD BRANDS

REDUCE COMPLEXITY

SERVE CONSUMERS

GROW SUSTAINABLY

Joining the UN Global Compact

InDecember2023,wejoinedtheUNGlobalCompact,

whichhelpsustovalidateandshowcaseprogressin

ourEnvironmentalandSocialImpactprogramme.

TheUNGlobalCompactisthelargestcorporate

sustainabilityinitiativeintheworldandavoluntary

leadershipplatformtoalignbusinessstrategyand

operationswithtenuniversallyacceptedprinciples

intheareasofhumanrights,

labour,environmentand

anti-corruption.

Simplifying our business and investing in capabilities

Aspartofourcontinuedefforttotransformthecapabilitiesofthe

Group,wehavemadeafundamentalchangetoourorganisational

structureaswereorganiseandsimplifyourUKbusinesswhile

strengtheningouroverallGroupbrand-buildingandinnovation

capabilities.Firstly,wehavemergedourUKPersonalCareandBeauty

businessunitsintooneUKandIreland(UKI)businessunit.Thechange

willdrivesignificantlygreaterscaleandfasterdecision-making,with

oneteamandone‘facetothecustomer’.Secondly,wehavecreateda

GrowthMarketsbusinessunit,andwearestrengtheningfurtherour

brand-buildingcapabilities,particularlybehindourbrandswiththe

mostgrowthpotential.

Reaching underserved consumers

CharlesWorthingtonlaunchedanew

innovation,calledMenoPlex.Thisisarange

offourproducts,developedandtestedon

perimenopausalandmenopausalwomen.

With87%ofmenopausalwomenfeeling

overlookedbybrandsaccordingtothe

GenMInvisibilityreport

,theseproducts

helptostrengthenhairanditsdensity.Our

commitmenttosupportingunderserved

consumerswasdemonstratedbyusbeing

thefirsthaircarebrandtopartnerwithGen

Mandtoproudlydisplaythe‘MTick’on

thepackaging.

DEC 2023

FEB 2024

Read more on page 26

BUILD BRANDS

Making handwashing fun

Carexlaunchedathree-yearpartnershipwithMagic

LightPictures,thelicenceownerofthemuch-

lovedpicturebookThe Gruffalo,tohelpcombat

thespreadofgermsamongstchildren.HalfofUK

parentssurveyed

thinkmakinghandwashingmore

funwillencouragechildrentoimprovetheirhand

hygiene.Thishandwashusesartworkfromthe

popularchildren’sbookonitspackaging,featuring

abrightpurplecolour,anodtotheiconic‘purple

prickles’fromtheGruffalo’sback.

MAR 2024

1 FurtherinformationregardingtheGenMinvisibilityreportcanbefoundontheirwebsitewww.gen-m.com.

2 ResearchcommissionedbyPZCussonsandconductedbyToluna.Asurveyof151UKparentsconcludedthatalmosthalf(42%)thinkmakinghandwashingmorefunwillencourage

handwashingamongstchildren.

STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION

REDUCE COMPLEXITY

Maximising shareholder value

through portfolio transformation

InApril,followingastrategicreviewofour

brandsandgeographies,weannounced

ourdecisiontorefocusourPZCussons

portfolioonwherethebusinesscan

bemostcompetitiveandwhereitcan

createmostvalueforshareholders.

Weannouncedourintentiontosell

theSt.Tropezbrand,andthatwewere

exploringstrategicalternativesforour

Africabusiness.

BUILD BRANDSSERVE CONSUMERS

Recruiting the next generation of

parents in Indonesia and Nigeria

InIndonesia,ourinnovative,newCussons

BabyMinyakTelonPlusrangecanbeused

atallstagesofababy’sdevelopmentand

incorporatesTelonOil,whichisingrained

inIndonesianculturethankstoitscalming

propertiesandmosquitoprotection.

InNigeria,ourCussonsBabybrand

hasdrivendemandthroughahospital

programme,focusingonpartnerships

withhospitalsandhealthcare

professionalsandeducatingand

reassuringover800,000pregnant

andnewmumsaroundthecountry.

FY24

Geographic expansion

ChildsFarmisdisruptingthebabycategoryinmultiplemarketswithuniqueselling

points.InFY24,wesawdouble-digitgrowthonAmazonintheUS.ByNovember

2023,thebrandbecamethefastestgrowingbabybrandintheportfolioof

Germany'sleadingpharmacychain,drogeriemarkt(dm),withover200

four-orfive-starreviewsinthefirstthreemonthsoflaunch.

ThebrandislaunchinginAlNahdi,thenumberonepharmacychaininSaudi

ArabiaalongsideourpresenceinBootsInternational;andwithRossmananddm,

thebrandalsolaunchedintheCzechRepublic,IcelandandMaltaandinBIPA

storesinSwitzerland.

OriginalSourcelaunchedinSpaininFY23,andFY24hasseenanumberoffun

anddisruptivecampaignstodriveawarenessandtrial.InGermanyandPoland,

thebrandisinnovatingwithnew,sweetfragrancestosuitregionalpreferences.

ImperialLeatherlaunchedinThailand,expandingintothepremiumherbaland

healthsegmentwithnewbarsoaps,andalsotargetingyoungerconsumersin

collaborationwithlocalinfluencersandfashionbrands.

SERVE CONSUMERS

FY24 A Year in Review continued

FY24APR 2024

PZ Cussons plc / AnnualReportandAccounts2024 / Strategic Report

Driving value for consumers

FollowingthelaunchofCussonsCreations

inMay2022,thebrandcontinuesto

performwell,deliveringtoitsbrand

positioningof'Alittlefun,alotofvalue',

andhadthefastestvolumegrowthinthe

WashingandBathingcategory.Thisgrowth

hascomefromservingmoreconsumers–

withdistributiongainsandgoodproduct

development,including‘MallowMagic’,

andafocusonseasonaleventssuchas

Christmaswith‘Dachshundthroughthe

snow’and‘DrivingGnomeforChristmas’

trends.Thebrandisalsostartingtomove

intoadjacentcategories,withthelaunch

ofGiftingSKUsandplansinplacetoenter

theKid’sHaircarecategory.

FY24

SERVE CONSUMERS

BUILD BRANDS

A locally-loved brand in ANZ

Radiantlaundrydetergentlaunchedin

Australiain1988.Asalocally-lovedbrand,

Radianthasbeensteadilygrowingmarket

shareinrecentyearsandisoneofthe

mosttrustedlaundrydetergentbrands

inthecategory.Radiantsaleshavegrown

morethan50%overthepasttwoyears;

brandgrowthhasbeenfuelledbyamajor

re-stageincludingoptimisationofpack

pricearchitecture,evolvedpromotional

programmesandafocusoninnovation.Of

notehasbeentherecentlaunchofRadiant

intothefast-growingCapsulessegment.

Radiantisnowthenumberthreebrand

usedbyoneinsevenANZhouseholds.

FY24

BUILD BRANDS

A brand for all seasons

Stella,thelargestbrandinourFamily

CarebusinessinNigeria,isamoisturising

jellythatisusedinthedryernorthof

thecountryandparticularlyduring

theHarmattandryseason.InFY24,we

workedto‘de-seasonalise’tradingand

communicatewiderusageoccasionsfor

ourconsumersbyemphasisingthebenefit

ofdailymoisturisationandtargeting5,000

stores in prominent open markets.

FY24

STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION

We remain confident in the long-term

potential for PZ Cussons as a business

with stronger brands in a more focused

portfolio, delivering sustainable,

profitable growth.

Jonathan Myers

Chief Executive Officer

TRANSFORMING

PZ CUSSONS.

Chief Executive’s Review

INTRODUCTION FROM OUR CHIEF EXECUTIVE OFFICER

Fouryearsago,weembarkeduponamulti-yearjourneyto

transformPZCussons–acompanywithinherentlystrongbrands,

excellentpeopleandattractiveunderlyingmarketsandcategories.

Wedefinedourstrategybyfocusingonthecorecategoriesof

Hygiene,BabyandBeautyinourfourprioritymarkets:theUK,

ANZ,Indonesia,andNigeria.Wehavebeenprioritisingspending

onthosebrandswhereweseethegreatestopportunityforreturn

oninvestment:ourMustWinBrands.Underpinningthisstrategy,

ourgrowthisenabledbystrengtheningourcapabilities,talent,

leadership,culture,andourapproachtosustainability.Running

througheverythingwedoisadrivetoreducecomplexityacross

ourbusiness.Assuch,wehavesummarisedourstrategyaround

fivechoices:BuildBrands,ServeConsumers,ReduceComplexity,

DevelopPeopleandGrowSustainably.

Overthistime,wehavecomealongway.Wehavestrengthened

ourbrands,re-energisedandprofessionalisedtheorganisation,

andraisedthebaronperformance.Nevertheless,ourFY24

reportedresultsfellshortofourinitialexpectations,primarily

duetothemacroeconomicdevelopmentsinNigeria,which,as

weindicatedlastyear,wouldsignificantlyaffectourresults.The

70%currencydevaluation

overthecourseofthefinancialyear

has,therefore,causedasignificantimpactnotonlyonourlocal

businessbutalsoontheprofitabilityandfinancialpositionof

the Group.

Againstthisbackdrop,oureffortshavebeenfocusedonour

strategicprioritiesforFY24,whicharedetailedbelow.Wehave,

therefore,soughttoaddressourchallengesandopportunities

head-on.Inparticular,wehavemadegoodprogressin

strengtheningandsimplifyingouroperationsinNigeriatothe

pointwherethebusinessnolongerreliesonlendingfromthe

GrouptoprovideitwithUSDollars.Thereisnowminimalsurplus

cashinNigeriafollowingtherepatriationofcashtotheUK.

1 Referencetodevaluationisbasedupon

31 May 2023 to 31 May 2024.

PZ Cussons plc / AnnualReportandAccounts2024 / Strategic Report

LFL revenue growth

+4.4%

Cash repatriated from Nigeria

c.£50m

Recycled, reusable or

compostable packaging

85.6%

AsweannouncedinApril2024,thereismuchmoretodo

todeliveratransformationofPZCussonsandunlockthefull

potentialofthebusiness.Despitetheprogressalreadymadein

reducingcomplexity–bothintermsofourportfoliofootprintand

operations–theGroupremainstoocomplexforitssize.Resource

isspreadtoothinlytogenerateconsistentlyhighreturnsandwe

cannotalwaysfullybenefitfromcompetitiveadvantageswhere

wehavethem.ThereisasignificantopportunityfortheGroup

toout-competebothlargermultinationalplayersandsmaller

localplayersbyconcentratingonastrongportfoliooflocally-

lovedbrandswithoperationsfocusedinmarketswherewecan

leverageourexistinginfrastructure,suchasmanufacturingor

commercialcapabilities.However,thereisonlysomuchthatcan

beachievedwithintheframeworkofourexistingportfolio,which

spansmultiplemarketsandcategories.Tothisend,thedisposal

ofSt.Tropezisprogressingandwearenowconsideringapartial

orfullsaleofourAfricanbusiness,havingreceivedexpressions

ofinterestfromanumberofparties.

Weremainconfidentinthelong-termpotentialforPZCussons

asabusinesswithstrongerbrandsinamorefocusedportfolio,

deliveringsustainable,profitablegrowth.

OnbehalfoftheBoard,IwouldliketothankthePZCussons

teamsfortheircontinuedenergyandtenacityamidst

challengingconditionsandoursuppliersandcustomers

fortheirvaluedpartnership.

Delivering against FY24 strategic priorities

Throughouttheyear,wemadegoodprogressacrosstheyear’s

strategicpriorities:

#1: Further simplifying and strengthening Nigeria

AmajorfocusfortheGroupthroughouttheyearhasbeenforeign

exchangeandcashmanagementactivityinNigeria.Wehave

reducedourrequirementsforforeigncurrencywhilstexpanding

anddiversifyingouraccesstoUSDollarssowecanrepatriate

cashfromNigeriaandrepayUKborrowings.Indoingso,wehave

beenabletoreducegrossborrowingsandlimittheimpactof

furthercurrencydevaluation.Specifically,wehaverepatriated

approximately£50millionoverthecourseoftheyear,resultingin

minimalsurpluscashinNigeriaasattheendoftheyear.Critically,

thebusinesswilleffectivelybeself-fundinggoingforward,with

littlerelianceonGrouplending.

Wehavebeenfocusedonstrengtheningtheoperationsofthe

Nigerianbusiness,andgiventhenumberofcompetitorsexiting

themarket,therehavebeenopportunitiesformarketsharegains.

Inaddition,duringtheyear,weidentifiedmorenon-tradingassets

inNigeriatobedivested.Weexpecttheseassetstobesoldduring

thecourseofFY25andproceedswillberepatriatedtotheUKand

usedtoreducegrossdebtfurther.

Ourplanstode-listandbuyoutminorityshareholdersofour

Nigerian-listedentitywerepausedduringtheyear,inpartas

aresultoftheGroup’sbroaderportfoliotransformationplans,

announcedinApril2024.

STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION

#2: Returning the UK to sustainable, profitable growth

OurUKPersonalCarebusinesshasperformedverystronglyin

FY24withdouble-digitrevenuegrowthandasignificantmargin

improvement.Thisperformanceistheresultofastrengthened

leadershipteamandamoredeterminedfocusonbuildingback

coreexecutionalcapabilities.Wearemoredisciplinednow

infocusingontherightbrands,intherightsizes,intheright

channelsattherightprices.Wehaveseenparticularsuccesswith

OriginalSource–growingrevenuebyover20%andreaching

itshighest-everlevelsofhouseholdpenetration.Therehas

beensuccessfulRevenueGrowthManagement(RGM)activity

acrosstheportfolio,andcontinuedsuccesswiththere-staging

ofImperialLeatherandthelaunchofCussonsCreations.Carex

alsoreturnedtogrowthfortheyearasawhole,supportedbyits

successfulcollaborationwiththeGruffaloandthelaunchofthe

1-litrerefillpacks.

Lookingahead,thereremainsfurtheropportunitytoregain

previousprofitabilitylevelsinourUKPersonalCarebusinessand

weareworkingtoimprovetheperformanceofourotherUK

brands,suchasSanctuarySpa,CharlesWorthington,andFudge,

whichhavepreviouslybeenmanagedaspartofourBeauty

businessunit.

#3: Driving further expansion from the core

WehavehadcontinuedsuccesswithChildsFarmduringthe

year,whichreporteditssecondyearofdouble-digitrevenue

growth.Inaddition,wehaveseenfurthergrowthindistribution,

withsuccessfulinternationallaunchesintheyear.IntheUS,we

continuedtobuildourpositionwithAmazon,andinAugust2024,

welaunchedthebrandinWegmans,apremiumgrocerychain,

throughitsonlineandin-storeofferings.InGermany,thebrand

waslaunchedviadm–amajorretailer–andourSleepMist

productbecamethenumberoneonlineSKUwithinthecategory

indm.

OriginalSourceinSpaincontinuestodevelop,andduringtheyear

weextendedourdistributioninoneoflargesthypermarketsin

Spain,Carrefour.

#4: Continuing to transform capabilities

Wecontinuetostrengthenthebusiness'scapabilitiestosupport

ourgrowthplans.Duringtheyear,wemadeasignificantchange

tosimplifyourorganisationalstructure,allowingustostrengthen

ourUKbusinesseswhileimprovingbrand-buildingcapabilitiesand

strengtheninggrowthplansacrosstheGroup.

Firstly,havingpreviouslyoperatedastwoseparatebusinessunits,

withtwoleadership,twocommercialandtwosupportteams,

wehavemadegoodprogressincombiningourUKPersonalCare

andBeautybusinesses.Withonecombinedleadershipteamand

one‘facetothecustomer,’weanticipatebenefitsfromgreater

scaleandfaster,moreefficientdecision-making.Wehavealready

seensomebenefitsemergeaswecombineshelvingspaceatkey

retailersandleveragetheUKPersonalCarecommercialexecution

withBeautyinfluenceranddigitalmediaexpertise.

Chief Executive’s Review continued

Secondly,wehavetakenfurtherstepstostrengthenbrand-

buildingteamcapabilitiesunderPaulYocum,previouslyManaging

DirectorofBusinessDevelopment,inthenewroleofChiefGrowth

andMarketingOfficer.Theorganisationalchangeswillleadto

greaterconsolidationofcentralR&Dandinnovationresources

whichwillallowustoevaluateopportunitiesmoreeffectively

andprovidebettersupporttoourBusinessUnits.Thiswillenable

ustoleveragethebenefitsofcentralisingcertainactivitieswhile

retainingthelocalinsightsourmulti-localportfoliofootprint

canprovide.

Growing sustainably

Wearemakinggoodprogresstowardsbecomingamore

sustainablebusiness.KeyachievementsinFY24included:

• A42.8%reductioncomparedtobaselineinScopes1and2

carbonemissions(FY23: -0.3%)

• A9.2%reductioninvirginplasticcomparedtobaseline

(FY23: -7.8%)

• 85.6%packagingisnowrecyclable,reusableorcompostable

(FY23:84.4%).

Wehavedecidedtostrengthenourcommitmenttosustainability

byjoiningtheUNGlobalCompact,thelargestcorporate

sustainabilityinitiativeintheworld.Bybecomingaparticipant,

wehavecommittedtoaligningourstrategyandoperationswith

theUN’sTenPrinciplesforhumanrights,labour,environment,

andanti-corruption.Wewillalsocommittosubmittinganannual

CommunicationonProgressreport.

FY25 priorities

FY25issettobeayearofsignificantchangeforPZCussons.

Wearespecificallyfocusedonthreeprioritiestosupportour

transformation:

1. driveourbusinessesintheUK,ANZandIndonesia;

2. strengthenourbrand-buildingcapabilitiesandembed

ournewoperatingmodel;and

3. delivertheportfoliotransformationtomaximise

shareholdervalue.

Jonathan Myers

Chief Executive Officer

18September2024

PZ Cussons plc / AnnualReportandAccounts2024 / Strategic Report

STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION

Business Model

WE BUILD BRANDS ENABLING

US TO CREATE VALUE FOR ALL

OUR STAKEHOLDERS.

Our competitive advantage

Our strength is in being a multi-local rather than multi-national

business, with the level of focus, experience and dedication to

our priority markets that this brings.

Our brands

High-quality,trusted

andwell-lovedbrands

Our people

Diverse,skilledandpassionate

employees.Leadersatalllevels

Our infrastructure

World-classmanufacturing

anddistributioncapabilities

inselectedgeographies

Our stakeholders

Closeworkingrelationships

withcustomers,consumers,

suppliersandcommunities

Our financials

Strongbalancesheetreflecting

ourdisciplinedfinancialapproach

We are a branded consumer goods business.

What we do

All underpinned by our purpose,

culture, values, governance and ethics

Trial and loyalty

Delightconsumersthrough

theuseofourproducts

Advertising and

marketing

Investinmulti-channeladvertising

andmarketingcampaignstoconnect

withconsumersandbuildmemorable,

trustedandwell-lovedbrands

Sales and

distribution

Establishcustomerpartnershipsand

channelstodeliverourproductsto

whereverourshoppersshop

PZ Cussons plc / AnnualReportandAccounts2024 / Strategic Report

Our business model creates shared, sustainable value for all

our stakeholders.

FOR CONSUMERS

Innovative, high-quality and

trusted brands

FOR EMPLOYEES

Engaged teams and

relationships, training and

development opportunities

and a supportive culture

and values

FOR SOCIETY

Community and charitable

initiatives linked to our

priority markets

FOR CUSTOMERS

Our retail partners and

customers benefit from

selling our leading brands

FOR INVESTORS

A plan to transform PZ

Cussons into a business with

a more focused portfolio

and stronger brands,

delivering sustainable,

profitable growth

FOR THE ENVIRONMENT

Sustainability at the heart

of what we do. Sustainable

sourcing practices on plastic,

paper and palm oil; for

better products and reduced

carbon emissions, water

use and landfill waste; for

better operations

The value we create

Insight and

innovation

Obtaininsightsintocurrent

consumerneedsand

longer-termtrends.Through

continuousinnovation,use

theseinsightstocontinuously

developbrandsandproducts

thatconsumerswant

anddesire

Sourcing and

manufacturing

Serviceconsumerdemand

bysourcingethically-

responsiblerawmaterials

andmanufacturingtheminto

high-qualityfinishedproducts,

eitherinourownworld-class

facilitiesorthroughcarefully-

selected,trustedthird-party

supplierrelationships

STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION

Key Performance Indicators

HOW WE MEASURE

OUR PERFORMANCE.

FINANCIAL KEY PERFORMANCE INDICATORS

Financial performance in FY24 has been materially impacted by the devaluation of the Nigerian Naira which commenced

inJune 2023.

Revenue growth

Revenuegrowthallowsmanagementandinvestorstomeasureourrelativeperformance.Sustainablerevenuegrowth

isakeystrategicambition.

Operating margin – Statutory

(19.6)%

(15.9)%

2024

2023

2022

(19.6)%

10.7%

(1.7)%

LFL revenue growth

Operating margin – Adjusted

4.4%

11.0%

2024

2023

2022

4.4%

6.1%

2.9%

2024

2023

2022

(15.9)%

9.1%

11.1%

2024

2023

2022

11.0%

11.2%

11.3%

Revenue growth – Statutory

Profit margin

Profitmarginallowsmanagementandinvestorstodetermineourrelativeperformance.

Basic (loss)/earnings per share

Basicearningspershareprovidesmanagementandinvestorswithakeyindicatorofvalueenhancementtoshareholders.

(13.60)p

3.60p

2024

2023

2022

(13.60)p

8.70p

11.88p

Adjusted basic earnings per share

8.02p

(115.3)m

2024

2023

2022

8.02p

11.23p

12.57p

2024

2023

2022

3.60p

6.40p

2024

2023

2022

£(115.3)m

£5.7m

£(9.8)m

Basic (loss)/earnings per share – Statutory

Dividend per share

Dividendpaymentsallowinvestorstoreceiveacashreturn

ontheirinvestmentinPZCussonsplc.Dividendgrowthisa

keyindicatorintermsoftangiblereturntoshareholders.

Net (debt)/cash

Netdebtisanindicatoroftheoveralldebtpositionanda

waytoevaluatethefinancialstrengthoftheGroup.

PZ Cussons plc / AnnualReportandAccounts2024 / Strategic Report

NON-FINANCIAL KEY PERFORMANCE INDICATORS

Our sustainability key performance indicators embody our ongoing commitment to key strategic priorities, providing

management and investors with a clear measure of our progress.

Scope 1 and 2 (market-based)

42.8%

Reduction since 2021

Carbon neutrality in our operations

26%

of our emissions in 2024

Carbon reduction and neutrality

Achieve42%reductioninScopes1and2carbon

emissions(alignedwithscience-basedtargets)by2030.

Packaging reduction

Reducevirginplasticby33%by2030froma2021baseline.

69%

Reduction since 2021

Waste reduction

Achievezerowastetolandfillby2030inthosecountries

whereappropriateinfrastructureexists.

Engagement score³

Theglobalengagementsurveyallowsmanagementand

investorstoassesshowwellouremployeesareengaged,

whichisakeydriverofbusinessperformance.

9.2%

Reduction in virgin plastic

since 2021

85.6%

Recyclable, reusable or

compostable packaging in 2024

Engagement score

2 Refertopages28to41forfurtherdetailsonoursustainabilitytargetsandouremissionsreportingmethodology.

3 Refertopage27forfurtherdetailsonouremployeeengagementsurvey.

SUSTAINABILITY

EMPLOYEE

Achievecarbonneutralityinouroperationsby2025.

Achieve100%recyclable,reusableorcompostable

packagingby2030.

STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION

Financial Review

MANAGING THROUGH

VOLATILITY.

OVERVIEW OF GROUP FINANCIAL PERFORMANCE

OurFY24financialperformancehasbeendefinedbythematerial

adverseimpactofthedevaluationoftheNigerianNaira,which

firsttookplaceinJune2023.Ithassignificantlyimpactedthe

tradingofourNigeriabusinessandhascausedadeterioration

intheGroup’sbalancesheet.

AkeyfocusfortheGroupthroughouttheyearhastherefore

beeninmitigatinganyfurtherimpactthroughstrengtheningthe

operationsoftheNigerianbusinesswithafocusonprofitability

andrepatriatingcashtotheUK–reducingexposuretofurther

devaluationandallowingustorepaygrossborrowings.Atthe

sametime,wecontinuedtoinvestacrossthebusinesstoensure

continueddeliveryagainstourstrategy.

Revenuedeclinedby19.6%,impactedbytheNairadevaluation.

LFLrevenuegrowth¹was4.4%,whichreflectedprice/mixgrowth

of6.8%andvolumedeclinesof2.4%.

Adjustedgrossprofitmargin¹increasedby60bpsto39.8%.This

increaseprimarilyreflectsthestrongunderlyingimprovementin

theEuropeandAmericassegment.Therewasalsoafavourable

currencymixeffectasAfrica,withlowermargins,representeda

smallerproportionofrevenuecomparedtotheprioryearasa

resultoftheNairadevaluation.

MarketinginvestmentwasreducedslightlyinFY24,mainlydue

toareductioninallocationtoourUK-basedBeautybrands.

Centralcostsincreasedby£11.9millioncomparedtotheprior

year,butincludedan£8.9millioncostrelatedtothecancellation

ofadebtpreviouslyattributabletoourAfricaregion.PZWilmar,

ourcookingoilsjointventurewithWilmarInternational,

performedstronglyandcontributed£10.7milliontooperating

profit(FY23:£7.5million).

Adjustedoperatingprofit¹declinedby£15.0millionatreported

FXrates.AdjustedEPS¹declinedby28.6%–lowerthanthe

39.7%declineinadjustedprofitbeforetax¹duetoareduction

intheEffectiveTaxRateandalowernon-controllinginterest.On

astatutorybasis,theoperatinglosswas£83.7millionprimarily

duetotheforeignexchangelossof£107.5million,whicharose

primarilyonthetranslationandsettlementofUSD-denominated

liabilitiesinourNigeriansubsidiariesfollowingtheNairadevaluation.

Freecashflow¹was£41.6million,whichwaslowerthantheprior

year’s£69.9million,dueprincipallytoloweroperatingprofitand

workingcapitaloutflow.

Ournetdebtwas£115.3million,whichrepresentsamaterial

changefromthe£5.7millionnetcashpositionintheprioryear,

drivenlargelybythe£139.9millionreductioninthevalueofcash

heldinNigeriaduetothedevaluation.

A key focus for the Group throughout the

year has been in mitigating any further

impact of the Naira devaluation through

strengthening the operations of the Nigerian

and repatriating cash to the UK.

Sarah Pollard

Chief Financial Officer

PZ Cussons plc / AnnualReportandAccounts2024 / Strategic Report

PERFORMANCE

BY GEOGRAPHY

EUROPE AND THE AMERICAS

(38.0% OF FY24 GROUP REVENUE)

£m, unless otherwise

stated FY24 FY23

Reported

growth/

(decline) (%)

Revenue 200.7 205.8 (2.5)%

LFLrevenuegrowth¹ (1.9)% (0.5)% n/a

Adjusted

operatingprofit¹ 32.6 29.3 11.3%

Adjustedmargin¹ 16.2% 14.2% 200bps

Operatingprofit 0.7 0.4 75.0%

Margin 0.3% 0.2% 10bps

Revenuedeclinedby1.9%onalike-for-likebasis¹duetothe

declineinourBeautybrands,partlyoffsetbystronggrowthin

ourUKPersonalCarebusiness.Price/mixgrowthwas0.1%and

volumedeclinedby2.1%.

OurUKPersonalCarebusiness,consistingprimarilyofCarex,

OriginalSource,andImperialLeather,hasdelivereddouble-digit

revenuegrowth.TheUKwashingandbathingcategorygrew6%in

valuetermsasconsumersbegantoincreasespendingfollowinga

periodofcost-of-livingchallenges.Ourmarketsharegrew140bps

involumetermswithimprovementsinallsub-categoriesandwas

unchangedonavaluebasis.Carexreturnedtogrowthfortheyear

asawholeanddeliveredimprovingtrendsthroughouttheyear,

supportedbyitssuccessfulcollaborationwiththeGruffaloandthe

launchofthe1-litrerefillpacks.OriginalSourcerevenuegrewby

over20%duetostrongcampaignactivityandincreasedlistings,

withdistributionpointsgrowingby12%.Wehaveseencontinued

successoftheImperialLeatherrelaunch,whichbeganinFY22

andwhichwassupportedbythelaunchofCussonsCreationsata

valuepricepoint,withthebrandstogethergrowingdouble-digits

inFY24.CussonsCreationswasoneofthefastest-growingbrands

intheWashingandBathingcategory.ImperialLeathermaintained

itsmarketsharewithimprovedpackaging,whichprovided

increasedin-storeprominence.

InourlegacyBeautybusinessunit,whichconsistsprimarily

ofSt.Tropez,SanctuarySpa,Fudge,andCharlesWorthington,

revenuedeclinedbydouble-digits.Thisdeclinewasprimarily

drivenbySt.Tropez,whereweexperiencedde-stockingfroma

majorcustomerandslowertradingintheUS,drivenbyoverall

softerconsumersentimentandpoorweather.SanctuarySpa’s

revenuedeclinedinthefirsthalfoftheyear,reflectingthe

decisiontoreducetheChristmasgiftingproductportfolioto

protectprofitability.However,itsawgoodrevenuegrowthin

thesecondhalfoftheyear.

ChildsFarmreportedasecondfullyearofdouble-digitrevenue

growthunderourownership.Thisgrowthwasdrivenbycontinued

strongcommercialexecution,witha5%increaseindistribution

points,andongoingbrandstrengtheningwithawareness

improvingandaneardoublingofsocialmediafollowersoverthe

pasttwoyears.Together,theseelementshaveresultedingood

marketsharegains.

Despitethereductioninrevenue,adjustedoperatingprofit¹

andadjustedmargin¹improved.At19.5%,theH2FY24adjusted

operatingprofitmargin¹isthehighestsincetheCovid-19peak

inFY21andwasachieveddespiteasofterperformancefrom

ourhigher-marginbrandssuchasSt.Tropez.Thisimprovement

inadjustedoperatingmargin¹wasprimarilydrivenbyourUK

PersonalCarebusinessfollowingthestrongRGMandcost

initiativesthroughouttheyear.ChildsFarmrecordedpositive

adjustedoperatingprofit¹,primarilyduetoimprovedadjusted

grossprofitmargin¹.Onastatutorybasis,operatingprofitwas

£0.7million,whichincludesinvestmentintransformationprojects

andtheimpairmentofSanctuarySpainthefirsthalfoftheyear.

ASIA PACIFIC

(33.3% OF FY24 GROUP REVENUE)

£m, unless otherwise

stated FY24 FY23

Reported

growth/

(decline) (%)

Revenue 175.2 190.7 (8.1)%

LFLrevenuegrowth¹ (3.4)% 4.4% n/a

Adjustedoperating

profit¹ 28.0 27.5 1.8%

Adjustedmargin¹ 16.0% 14.4% 160bps

Operatingprofit 27.0 29.6 (8.8)%

Margin 15.4% 15.5% (10)bps

Revenuedeclined8.1%duetoadeclineinLFLrevenue¹and

unfavourableFX,drivenbyadepreciationintheIndonesianRupiah

andAustralianDollar.OnaLFLbasis¹,revenuedeclined3.4%with

consistentgrowthinANZoffsetbyadeclineinIndonesia.

CussonsBabyinIndonesiadeclinedslightly,reflectingsofter

consumersentimentandareductionindistributorstocklevels

throughoutmuchoftheyear.Thebusinessreturnedtorevenue

andmarketsharegrowthinQ4,however,anddistributorstock

asattheendoftheyearhadreturnedtonormallevels.Despite

somelossofmarketsharefortheyearasawhole,CussonsBaby

retained#1or#2positionsinmostofthesub-categoriesinwhich

itplays.ThelaunchofCussonsBabyintothewarmingoilsegment,

acategoryestimatedtobeusedbyover80%ofIndonesianmothers,

hasgonewell.Wecontinuetoseemeaningfulopportunitieswith

thisinnovation.

STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION

Financial Review continued

ANZdeliveredcontinuedsolidgrowth.ThiswasledbyRadiant,

updouble-digits,resultinginitbecomingthethirdlargestbrand

inthelaundrymarket(upfromsixthpreviously).Growthcame

throughbothpricevolumeandprice/mix,drivenbythesuccessful

launchofcapsulesalongsidetheexistingpowderandliquid

products.MorningFreshalsoperformedwell,maintainingits

nearly50%categoryshare.TheFY23launchoftheMorningFresh

autodishwashrangealsocontributedtorevenue,althoughits

performancehasbeensofterthaninitiallyanticipatedduetoa

strongcompetitorresponse.Ourlong-termambitiontoleverage

thesignificantbrandequityofMorningFreshtoextend‘beyond

thesink’isunchanged.Rafferty’sGardenrevenueslightlydeclined

butmarketsharewasstable.

Despitethedeclineinrevenue,adjustedoperatingmargin¹

grewby160bps.Thiswasprincipallyduetoafurthersignificant

improvementinprofitabilityinANZ,wherenewproduct

innovationhasbeenhighlyaccretivetomargins,andreduced

freightcosts.Profitabilitywasalsoimprovedduetothereduction

incostassociatedwithourwidermanufacturingoperationsin

Asia,albeitoffsetbythechallengingtradinginIndonesia.Ona

statutorybasis,marginsdeclinedby10bps.

AFRICA

(28.7% OF FY24 GROUP REVENUE)

£m, unless otherwise

stated FY24 FY23

Reported

growth/

(decline) (%)

Revenue 151.7 256.3 (40.8)%

LFLrevenuegrowth¹ 26.5% 13.4% n/a

Adjustedoperating

profit¹ 30.3 37. 2 (18.5)%

Adjustedmargin¹ 20.0% 14.5% 550bps

Operating(loss)/

profit (50.7) 48.3 n.m.

Margin (33.4)% 18.8% (5,220)bps

TheresultsshouldbeseeninlightoftheNairadevaluation

throughoutthisyear.Thisdevaluationhascreatedhighinflation

levels,andwehaveneededtocarryoutnearly30roundsofprice

increasesduringtheyear.Thishasbeenakeydriverofthe26.5%

LFLrevenuegrowth¹.Volumesdeclinedby4.7%inFY24,butthis

trendimprovedthroughouttheyear.Onareportedbasis,revenue

declinedby40.8%duetotheNairabeing57%lowerinFY24

comparedtotheprioryear.Thecontinuedtransformationofour

route-to-markethasbeenamajordriverofrevenuegrowthinour

Nigerianbusinessandhashelpedtolimitthedeclineinvolumes.

Firstly,wehavecontinuedtoincreasetheavailabilityofour

productsthroughexpandingthenumberofstoresserveddirectly

asopposedtoviawholesalers.Weserveapproximately151,000

storestoday–over50%higherthanattheendofFY23andmore

thandoublethenumberoftwoyearsago.Secondly,wehave

alsocontinuedtoincreasethenumberof‘priority’stores–those

whichattractgreatercommercialfocusandaretypicallysupplied

withawiderrangeofproducts.Thirdly,theproductivityofour

existingdistributionhasincreasedwithvansandbikesreaching

morecustomerandconsumerlocations.Oursalespervanhave

morethandoubledduetothisincreasedefficiency.

Asaresultoftheimproveddistribution,themarketsharesofour

keyNigerianbrandshaveremainedlargelyunchangeddespite

thesignificantpriceincreases.MorningFresh,however,hasseen

somesharelossduetoitspricingrelativetocompetitorproducts.

Revenueinourelectricalsbusinessgrewover20%onaLFLbasis,

contributingrevenueof£56.6million.Grossmarginsdeclinedas

priceincreasesdidnotfullyoffsettheincreasedcostsresulting

fromthedevaluationoftheNaira.Comparedtotherestofour

Nigerianbusiness,theelectricalsbusinessseesgreaterinput

costsdenominatedinUSDollars.

ThePZWilmarjointventurecontributed£10.7million

(FY23:£7.5million)toadjustedoperatingprofit¹.Compared

totheprioryear,thisimprovementreflectscontinuedstrong

commercialexecution.

Adjustedoperatingprofitmargin¹grewby550bps.Profithowever

includedan£8.9millioncreditfromsomeintra-Groupdebt

forgiveness,withthelossbeingrecordedinourCentralsegment.

Excludingthis,Africaadjustedoperatingprofitmargin¹declined

by40bps.Onastatutorybasis,wereportedanoperatinglossof

£50.7million,reflectingtheincreasedvalueoftradeandloan

liabilitiesdenominatedinUSDollars.

2 Referenceismadetoaninterim,ratherthanfinal,dividendduetothedistributablereservesintherelevantCompanybeingnegativeasat31May2024.TheGrouphassubsequently

reversedthispositionandfuturedividendpaymentswillnotbeaffected.

OTHER

FINANCIAL ITEMS

ADJUSTING ITEMS

Adjustingitemsintheyeartotalledanetexpenseof£140.6million

beforetax.Thisrelatedprimarilytoa£107.5millionforeignexchange

lossarisingfromthedevaluationoftheNigerianNaira.Acharge

of£24.4millionwasincurredduetotheimpairmentofthe

SanctuarySpabrand,andcostsof£10.1millionwereincurred

onsimplificationandtransformationprojects.

ThedevaluationoftheNigerianNairahashadasignificantimpact

onourfinancialresultsandcomparisonstotheprioryear.The

foreignexchangelossof£107.5millionprimarilyaroseonthe

translationandsettlementofUSD-denominatedliabilitiesinour

Nigeriansubsidiariesandiswhollytheresultofthedevaluation

oftheNaira,whichfellby70%from31May2023to31May2024.

SeefurtherdetailsontheNairaratesusedinourfinancial

statementsinthetableonpage21.

Afteraccountingforadjustingitems,theGroup'sstatutory

operatinglosswas£83.7millioncomparedtoastatutory

operatingprofitof£59.7millionintheprioryear.

PZ Cussons plc / AnnualReportandAccounts2024 / Strategic Report

FOREIGN EXCHANGE

ThedevaluationoftheNairaresultedina£130.6millionadverse

impactonyear-on-yearrevenueinFY24whentranslatedinto

Sterling.OutsideofNigeria,thegeneralstrengtheningofSterling

againstothercurrenciesresultedina£19.3millionreductionin

FY24revenuecomparedtoFY23.

Average FX rates

% of FY24

revenue FY23 FY24

Revenue

impact (£m)

GBP 34% 1.0 1.0 –

NGN 24% 536.3 1,256.7 (130.6)

AUD 17% 1.8 1.9 (6.7)

IDR 12% 18,174.2 19,549.7 (5.3)

USD 6% 1.2 1.3 (1.9)

Other 7% – – (5.4)

Total 100% – – (149.9)

GiventhematerialityofthemovementintheNigerianNairain

recentperiods,theratesusedinrecentreportingperiodsare

summarisedbelow.Thecurrencydevaluedby70%from31May

2023to31May2024,andwasonaverage57%lowerforthe

financialyearasawhole:

NGN/GBP FY22 FY23 FY24

RateusedforP&L 558 536 1,256

Rateusedfor

balancesheet 530 577 1,893

ThevalueoftheNigerianNairacontinuedtodepreciate

subsequenttotheyearend.AttheendofQ1FY25,theclosing

Naira/GBPratewas2,100(31May2024:1,893)andtheaverage

Naira/GBPratewas1,979(31May2024:1,256).

TAXATION

Onanadjustedbasis,theeffectivetaxratewas14.5%(FY23:27.1%)

reflectingtheunderlyingcashtaximpacttoGroup.Theyear-on-

yearreductionwasprimarilyduetoachangeinthetaxregime

operatinginNigeriawhereby,forloss-makingbusinesses,taxis

assessedonthebasisofrevenueratherthanprofitability,together

withthetaxdeductibilityofrealisedFXimpactsarisingasaresult

ofthecashrepatriationfromNigeriatotheUK.

Onareportedbasis,thetaxcreditfortheyearwas£24.1million

comparedtoataxchargeof£15.4millionintheprioryear.

Theeffectivetaxratefortheyearis25.0%(2023:24.9%).

LIQUIDITY

Cashandcashequivalentsat31May2024were£51.3million

(FY23:£256.4million).Thedecreasewasdrivenprincipallyby

£109.7millionnetcashoutflowsfromfinancingactivitiesand

adverseforeignexchangemovementsof£120.7millionwhich

werepartiallyoff-setbynetcashinflowsfromoperatingand

investingactivitiesof£12.9millionand£12.4millionrespectively.

Thereductioninnetassetsfrom£422.1millionto£235.2million

isprimarilytheresultoflossesrelatingtothedevaluationofthe

Nairaanda£24.4millionimpairmentoftheSanctuarySpabrand,

partlyoffsetbytheGroup'sunderlyingnetprofit.

TheGrouphasa£325.0millioncommittedcreditfacilitywhich

isavailableforgeneralcorporatepurposes.Thecreditfacility

incorporatesbothatermloan,ofupto£125.0million,withthe

balanceasarevolvingcreditfacility(RCF)structure.Enteredinto

inNovember2022,thetermloanisatwo-yearfacilityandthe

RCFafour-yearfacility,withbothfacilitiesretainingtwo,one-year

extensionoptions,thefirstofwhichwasexecutedinOctober

2023.At31May2024,thisfacilitywas£161.0milliondrawn

(FY23:£252.0million).

Totalfreecashflow¹was£41.6million,whichwaslowerthanthe

prioryear’s£69.9milliondueprincipallytoloweroperatingprofit

andaworkingcapitaloutflow.

DIVIDEND

TheBoardannouncesitsintentiontodeclareaninterimdividend

of2.10ppershare

,down44%comparedtolastyear'sfinal

dividendof3.73p.Thisrepresentsafullyeardividendof3.60p

whichisalsodown44%,reflectingtheimpactoftheNaira

devaluationonearningspersharewhilemaintaininganearnings

coverofapproximatelytwotimes.

Thedividendwillbepaidon4December2024toshareholders

ontheregisteratthecloseofbusinesson1November2024.

OUTLOOK

Current trading

TheFY25financialyearhasstartedpositively,withGroupLFL

revenuegrowth¹of4.7%drivenbystronggrowthinbothAfrica

andEuropeandtheAmericas.

Operating profit guidance

GuidancehasbeenprovidedtoseparatetheimpactoftheNaira

uncertaintyontheGroup’sresults.Assumingthattheaverage

FXratesinQ1FY25prevailforthebalanceoftheyear,theGroup

expectstodeliveradjustedoperatingprofit¹intherangeof

£47–53million.Basedontheseexchangerates,FY24adjusted

operatingprofit¹wouldhavebeenapproximately£40million.

MovementsintheNairaareexpectedtobeakeydeterminant

oftheGroup’sreportedFY25result.Suchmovementsimpactthe

translationoflocalcurrencyearningswhenreportedinSterling,as

wellastheforeignexchangerevaluationofintra-groupliabilities.

Theadjustedoperatingprofit¹sensitivityrelatedtothelatterhas

increasedinFY25duetonecessaryaccountingchangesbrought

aboutbytheincreasedlikelihoodoftherepaymentofinter-

companyloansfollowingthereceiptofexpressionsofinterest

relatingtoourAfricanbusiness.Wewillprovideananalysisofthe

impactoftherevaluationoftheseliabilitiesonourearningsin

futurefinancialresults.

Sarah Pollard

Chief Financial Officer

18September2024

STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION

DEVELOPING PEOPLE

AT PZ CUSSONS.

AT PZ CUSSONS WE ARE

GUIDED BY OUR PURPOSE, ‘FOR

EVERYONE, FOR LIFE, FOR GOOD’,

CHAMPIONING THE WELLBEING OF

OUR CONSUMERS, OUR PEOPLE

AND OUR COMMUNITIES AROUND

THE WORLD.

Asamulti-localbusinesswithapproximately2,500employees

workingforus,wecontinuetoalignourpeoplestrategy

withourbusinessstrategy.Thisistoensurewehavean

agile,future-fitorganisationwithpioneeringleadershipand

aperformanceculture.Ourfocusisalsoon‘brilliantbasics’,

simplifyingourpeopleprocessesandinvestingintechnology

toprovidedataandinsightstoinformdecision-making.The

deliveryofourpeoplestrategywillcontinueinFY25,andwe

arealreadymakinggoodprogress.

STRATEGY DEPLOYMENT

Thisyearwere-energisedourorganisationwithconversations

aboutourbusinessstrategyandchangestoouroperatingmodel.

Wecreatedanextendedleadershipteam,thePZPioneers.These

leadersare‘changeagents’,drivinghigherlevelsofperformance

andembeddingnewwaysofworkingtohelpusachieveour

goals.TheExecutiveCommitteeisnowengagingwiththisgroup

regularly,fromglobalvirtualeventsandbriefingsoncriticaltopics

tointeractiveQ&Asessions.

Tobuildonthis,weinvitedourUKPZPioneerstoaninnovative

andinteractivepilot‘StrategyExperience’eventwhichwasheld

overseveraldaysandconsistedofavarietyofeventformats

rangingfrompresentationstoteamactivities.Ouraimwasto

ensurethateveryoneunderstoodourstrategicdirectionandthe

changestonewprocessesandwaysofworkingthatneedtobe

made.Thiseventallowedustheopportunitytoensureallour

PZPioneersunderstoodtheirroleandcommitmentsasleadersin

drivingthischange.WithhelpfromourPZPioneers,weextended

thisconversationtoeveryoneworkingforusviaaseriesofevents

inourmarketshostedbytheExecutiveCommittee,withplentyof

opportunitytoaskquestionsandgetinvolved.

We have a powerful PZCussons

purpose, ‘For everyone, for life,

forgood’, championing the

wellbeing of our consumers:

people, families and

communitieseverywhere.

People and Culture

PZ Cussons plc / AnnualReportandAccounts2024 / Strategic Report

LEADERS AT ALL LEVELS

Pioneeringleadershipisacriticalenablerofeverythingwewantto

achieve,andourfocushasturnedtohowweleadatPZCussons

andtoensuringthatcolleaguesaresetupforsuccess.Buildingon

thelaunchofourPZPurposeandBESTvaluestwoyearsago,we

workedwithcolleaguestodevelopagloballeadershipframework

thatwillapplytoallleadersglobally.Thiswillbeembeddedinto

ourprocessesinFY25includingperformancemanagement,

recruitmentanddevelopmenttoensurethatweareattracting,

developingandretainingleaderswhowillbesuccessful.

Duringtheyear,weestablishedanewDiversity,Equityand

Inclusion(DEI)strategy.Wecontinuedtoinvestin‘EarlyCareers’,

partofourdiverseworkforce,andwewelcomedacohortofsix

multi-disciplinegraduatesintothebusinessintheUK,whowill

rotatearoundkeyfunctionsoverthenexttwoyears.Inparallel,

wehavealsorecruitedafurthersixgraduatesintoPZCussonswho

willjointhekeycapabilityfunctionsofCommercial,Marketing,

SupplyChainandITinOctober2024.

OUR VALUES

OurBESTvaluesweredefinedbyourpeople,forourpeopleand

wehaveembeddedtheseintoourprocessesandcommunications,

ensuringthateveryoneisfamiliarwiththemandunderstandsour

waysofworking.

FEARLESS, PIONEERING AND

PASSIONATE, OPEN AND HONEST,

TRUE TO OURSELVES AND PROUD

OF WHO WE ARE

RAISING THE BAR, PUSHING

PERFORMANCE, AIMING HIGH

AND ACHIEVING MORE

DYNAMIC AND PROACTIVE, CAPABLE

AND FLEXIBLE, EMBRACING CHANGE

AND MOVING FAST INTO THE FUTURE

ONE FAMILY, MANY VOICES;

SUPPORTED, INCLUDED, RESPECTFUL,

EMPOWERED, AND WITH JOY IN WHAT

WE DO

BOLD

AS INDIVIDUALS WE ARE

AS A BUSINESS WE ARE

IN OUR TEAMS WE ARE

OUR SHARED CULTURE BRINGS US

STRIVING

ENERGETIC

TOGETHER

STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION

FULFILLING CAREERS.

PAUL YOCUM

Chief Growth and Marketing Officer

Passionate about anticipating and responding to

what our consumers need and want

PaulYocumbecameChiefGrowthandMarketingOfficerin

FY24,withresponsibilityforacceleratingthefuturegrowth

ofthebusinessininternationalmarkets,andleadingour

brand-building,innovationandbrand-planningcapabilities

inlinewithourbusinessstrategy.

HejoinedPZCussonsasInterimManagingDirectorof

ourBeautybusinessin2021,successfullyleadingthe

teamduringabusytransitionperiod,andremainingon

theExecutiveCommitteetoaccepttheroleofManaging

Director,BusinessDevelopment,andthenChiefGrowth

andMarketingOfficerinDecember2023.

Paulbringsablendofover25years’experiencein

consumermarketing,salesandgeneralmanagement.

HestartedhiscareeratProcterandGamble,quickly

progressingthroughvariousseniormanagementrolesto

ManagingDirectorforCosmeticsInternationalOperations

anddrivinghouseholdpenetrationforbrandsincluding

MaxFactorandOlay.

Paul’spassionforunderstandingtheconsumerisinspiring.

Heencourageshisteamstostaycurious.Recently,Paul

sharedthat"turninginsightsintopowerfulideasiskeyto

unlockingourbrands'potential."Thisbeliefiscentralto

hisvisionforbuildingworld-classmarketingcapabilities

andinnovation.

People and Culture continued

KATIE BARKER

Marketing and Innovation Director

Building brands for life

KatiehasbeenwithPZCussonssinceSanctuarySpawas

acquiredin2008andhersuccessfulcareeristestament

totheexpertise,energyandcommitmentshebringsto

anychallenge.

BeginninginproductmanagementmarketingonSanctuary

SpaandthenSt.Tropez,shequicklyprogressedtoHeadof

MarketingforHaircare,workingonseveralbrandre-stages

includingCharlesWorthingtonandFudgeProandthentook

asecondmentroleasGeneralManagerofourUSoffice.

FollowingtheGroup’sacquisitionofChildsFarm,Katie

movedtooverseemarketing,commercialandtechnical

responsibilities,includingspearheadingthebrand’sfirst

everTVcommercial.

Morerecently,KatiehasbeenpromotedtoMarketingand

InnovationDirectorforourGrowthMarketsbusinessunit,

combiningherexperienceonglobalbrandsanddistributors

tohelptodrivegrowthinternationally.

Katiesays:“IhavebeenveryluckyatPZCussonstocomein

viaaproductmarketingrolewithamarketingbackground,

andtohavetheopportunitiestomoveintofullbrand

management,thentoleadacommercialfunctionandto

haveaninternationalsecondment.Allthetimeworking

withtalentedcolleaguesacrosstheGroup.Iampassionate

aboutPZ’sbrandsandseeingthedifferencethattheymake

inthelivesofourconsumers.”

Four colleagues share their stories here:

PZ Cussons remains committed to creating opportunities for career development for talented colleagues

at all levels of the business.

PZ Cussons plc / AnnualReportandAccounts2024 / Strategic Report

WAHYU WIKANDARI

Head of Manufacturing

A trailblazer in manufacturing in Indonesia

Earlythisyear,wepromotedWahyuWikandari(knownas

'Wiwi')toHeadofManufacturingatourTangerangfactory,

nearJakarta,Indonesia.

WiwibeganherjourneywithPZCussons20yearsago

inthefactory.Hercareerdevelopmenthasbeenshaped

byhercommitmenttoexcellenceineveryprojectand

everyinnovation,andbyturningeverychallengeinto

an opportunity.

Herinclusiveandinsightfulleadershipstylehasdriven

strongresultsatthefactory,andshehasalsonurtureda

generationoffutureleaders.Whenaskedwhatdrivesher

passionforPZafteralltheseyears,Wiwisaid:“PZCussons

islikemysecondhome.IsharethevaluesoftheCompany,

soIalsofeeltheresponsibilitytoensuremycontribution

tothebusinessismeaningful.Havingtheopportunityto

grow,tobeinvolvedinpositivechangewheretheproducts

aremanufacturedandbeacatalystforotherstodevelop,

iswhatdrivesmeeveryday.”

Giventhestereotypesthatcansometimesprevailwithinthe

manufacturingenvironmentinIndonesia,Wiwiisatrailblazer

andarolemodelforotherwomeninmanufacturing.

IFEANYICHUKWU ABADOM

Supply Chain Director

An expert ‘ahead of the curve’ in Africa

ChemicalEngineerbytraining,IfeanyichukwuAbadom

beganhiscareerwithPZCussonsin2002,whenhejoined

thesoapplantinNigeriaasaproductionManager.

Ifeanyichukwu’sexpertiseinoptimisationandcontrol,

coupledwithexperienceoftheFood,Pharmaceuticals

andChemicalssectors,madeIfeanyichukwuwell-placed

toexcelincapabilitybuilding,capacityexpansion,process

managementandpeoplemanagement.

Overtime,IfeanyichukwuprogressedtobecomingFactory

ManagerandlaterHeadofManufacturingforPZCussons

NigeriaandmostrecentlyhebecameSupplyChainDirector

forourAfricaregion.Ifeanyichukwuisfocusedonbuilding

asustainable,valuechainforPZCussonstomeetthe

businessambitionsfortodayandforthefuture.Heleads

thisthroughteamwork,developinggreatrelationshipsand

supportingpeopletoperformtheirrolestotheverybest

oftheirability.Ifeanyichukwubringsenergyanddrivetoall

ofhisroles,andsaysheis'drivenbyadesiretobe‘ahead

ofthecurve’inanunpredictableenvironment'.Heisan

excellentexampleofhowwellcareerscanprogressand

developatPZCussonsandisalsoarolemodelforothers.

STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION

People and Culture continued

WELLBEING

Ourphilosophyforsupportingthewellbeingofourpeopleis

acombinationofimmediatesupportwhereitisneededmost,

aswellasmorelong-termpositiveandpreventativeapproaches

tohelppeopletothriveatwork.

Weofferflexibleworkingincludinghybridworkingtosupport

peopletoperformattheirbestandmaintaintheirwork-life

balance.Annually,andtargetedbymarket,wealsoofferour

teamsawellbeingdaytotakeimportantdowntimefollowing

theirhardworkduringtheyear.Privatehealthcareandemployee

assistanceprogrammessupportcolleaguesallyeararound,and

ourline-managersareexpectedtohaveregularonetooneswith

theirdirectreportsaspartofourperformanceprocesstoensure

visibilityandresponsivenessforanyconcerns.

Wepromotetheimportanceofphysicalwellbeinginsupportof

mentalwellbeingandofferonlineandin-personfitnessfacilitiesto

helpcolleaguesbuildtimeintotheirschedules,fromonlineapps

andgymstotimeforwellbeingwalks.

Ourwellbeingapproachisparticularlystrongwhenourinternal

initiativesalignwithourmarketingactivityandinclude:

• CelebratingInternationalWomen'sDayandthencelebrating

InternationalMen’sDaywithPremierCooltotalkaboutmen’s

mental health

• OurDEIstrategylaunchinconjunctionwithourexternal

MenoPlexlaunch

• ProvidingCussonsBabygiftpackstonewparentsworkingat

PZCussons.

Wealsorecognisetheimportanceofpromotinghealthyfinancial

wellbeingand,inadditiontoprovidingtargetedcost-of-living

supportincertainmarketsduringhighinflation,wehavealso

offeredarangeoffinancialseminarsandeventsacrosstheGroup.

DIVERSITY, EQUITY AND INCLUSION (DEI) IS AT THE

HEARTOF OUR PEOPLE STRATEGY

WehaveadiverseandexperiencedBoard.Wehavethreewomen

Directorsrepresenting37.5%oftheBoard.Oneofthefoursenior

positionsontheBoardisheldbyawoman.Inaddition,threeof

ourDirectorsarefromaminorityethnicbackgroundwhichmeans

thatweexceedtheParkerReviewtargetofhavingoneethnic

minorityDirector.

TheParkerReviewhasaskedeveryFTSE-350companytoseta

targetfor2027fortheproportionofitsseniormanagementgroup

madeupofexecutivesfromminorityethnicbackgrounds.Wehave

setatargetof35%for2027andtheshareofthemanagement

groupinDecember2023was33%.

This is the first DEI strategy for PZ Cussons, and it comprises

four pillars:

CULTURE OF BELONGING PIONEERING LEADERSHIP

TALENT DIVERSITY OUR COMMUNITIES

Inadditiontothegloballaunchcall,weheldlocaleventsand

associatedactivitiesinallofourbusinessunitsaroundtheworld.

InIndonesia,wehostedacoffeemorningforfemaleemployees,

wherewomenfromaroundthebusinesscametogethertoshare

inspiringstories.InAfrica,theteampartneredwiththreefemale

relatedbrands,createdanInternationalWomen’sDaynewsletter

andhostedatalkon‘InspiringInclusion’.IntheUK,inadditionto

celebratingwomenatPZCussonsbyencouragingpledgesfrom

theteams,wetooktheopportunitytolaunchthegroundbreaking

MenoPlexhaircarerangeforperimenopausalandmenopausal

womenduringthesameweek,whichwaswellreceivedbyboth

themarketandcolleagues.

IntheUK,our'ProudlyPZ'employeeengagementgrouphasalso

raiseddiversityawarenessthroughaseriesofeventsincluding

RaceEqualityWeek,aRamadanone-dayFast,DeafAwareness

focusandnewsletterscelebratingPridemonth,BlackHistory

MonthandLGBTHistoryMonth.

PZ Cussons plc / AnnualReportandAccounts2024 / Strategic Report

BOARD PRIORITISING ENGAGEMENT

Designated Non-Executive Director for employee

engagement: Kirsty Bashforth

Kirstyplaysanactiveroleensuringthatworkforceengagement

continuestobepartoftheBoard’sagenda.Bytakingpartina

wideselectionofinternalmeetingssheisabletosharewiththe

Board,onaregularbasis,anyobservationsandinsightsforthe

Boardtoconsider,includingkeychallengesandopportunitiesin

ourmarkets.Herpresenceasaparticipantenablescolleaguesto

understandhowtheBoardworksandtoseetheNon-Executive

Directorroleasconnectedwiththebusiness.Thisyear,Kirsty

hastakenpartinglobalTownHalls,anInternationalWomen's

Dayevent,internalproductlaunchesforTelonOil;inJakartaand

MenoPlex;globally,aPeopleLeadershipTeammeetingdiscussing

insightsonworkforcethemesinkeymarkets,aUKannualpriority-

settingevent,andafocusgrouparoundevolvingourculturefor

thenextphaseofourtransformation.

Global Engagement Survey 2024

Wearepleasedtohavemaintainedouroverallemployee

engagementscoreat73(2023:73)againstanindustry

benchmarkof71whilewecontinuedtonavigatethechallenges

ofourexternalenvironmentandchangestoourbusinessunits.

Coincidentally,wealsoachievedthesame96%participation

rateasin2023followingasustainedeffortacrossPZtoensure

thateveryonehadtheopportunitytotelluswhatisworking

andwherewecanimprove.Thisincludedkiosksforcolleagues

workinginfactoriesandprovidingappropriatetranslation.

Employeesrespondedfavourablytoquestionsabouttheir

work/lifebalanceatPZCussons,andalsowhatisexpected

ofthemintheirroles,bothofwhichareencouraging

culturalindicators.Thesetwoscoresareparticularlyhighin

comparisontoourindustrybenchmark.Thereremainsahigh

awarenessofourBESTvalues,whichwillbeimportantaswe

continuetoevolveourculture.

Weanticipatedthatour‘TotalRewardoffer’wouldbealower

scoreinthesurveyresultsthisyearandincludedspecific,

additionalquestionsthatwillhelpustodevelopthiswork

inFY25.Wewilldevelopatargetedrewardandrecognition

planthatmeetsglobalandlocalmarketneeds,aspartofour

peoplestrategy.

AcceptingthatchangewillbeaconstantinFY25,wewill

engageourPZPioneerleadershipaswecontinuetotransform

PZCussonsandsupportourpeoplewitheffectivechange

managementandcommunications.Colleagueshavetoldusin

surveycommentsthattheywantmoresupportwhenweare

makingorganisationalchanges,andthattheywouldlikemore

supportonstructuredcareerprogression.

HOW THE GLOBAL ENGAGEMENT SURVEY INFORMS

OUR WORK

GlobalTownHallcalls,hostedbytheChiefExecutiveOfficer

andExecutiveCommittee,takeplaceeachquarter.The

purposeistocommunicatewitheverycolleagueonimportant

topicsinatransparentwayandtherebydriveunderstanding,

engagement,advocacyandcommitment.TheEngagement

Surveyisreferencedregularly.Eachmarkethasitsownaction

plan,createdasaresultoftheGlobalEngagementSurvey

scoresandsentiments.TheIndonesiateamforexamplehas

createdtheBESTLunch,amonthlyinitiativewhereasmall

groupofemployeesshareamealwiththeleadershipteam,

withtheaimofbreakingdownhierarchiesandpromoting

openandhonestdialogue.InAustraliaandNewZealandand

AfricatheyhaveaspotlightonRecognition.InAfrica,they

haveintroducedtheBESTAwards,withquarterlywinners

showcasedtotherestoftheregion’semployeesandthe

overallwinnerselectedinDecember.TheUKhasfocusedon

personaldevelopmentandalsovolunteering,partneringwith

ourchosencharities.

I am proud

to work for

PZ Cussons

86%

(2023: 88%)

I would recommend PZ

Cussons as a great place

to work

85%

(2023: 85%)

SurveyrunbyCultureAmp.BenchmarkConsumerGoodsandServices,January2024.

STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION

Sustainability

INTRODUCTION TO ENVIRONMENTAL AND SOCIAL IMPACT AT PZ CUSSONS

Werecogniseourimpactsontheplanetandsociety,takeresponsibilityforaddressingtheseimpactsandworkinpartnershipwithoursuppliers,

customersandcommunitiestomakeadifference.OurCompany'spurposeguidesus:ForEveryone,ForLife,ForGood,whichhelpsusconsider

theconsumers,customersandcommunitiesweserve,ouremployees,andtheplanetwhenwemakedecisionsasabusiness.

OurEnvironmentalandSocialImpact(ES)framework,whichwecall‘BetterforAll’,alignswithourpurpose,andoursustainabilitystrategy

helpseveryoneinthebusiness,whatevertheirrole,understandhowtheycanhelpusachieveourtargets.Theframeworkisalsosupported

bytheKPIswehaveset.AGroup-widematerialityassessmentvalidatedanddeterminedtheareaswithintheframeworkwefocuson.

THE UNITED NATIONS SUSTAINABLE DEVELOPMENT GOALSAND GLOBAL COMPACT

The17UNSustainableDevelopmentGoals(SDGs)andtheirassociatedtargetsofferablueprintforachievingamorepeacefuland

prosperousworldby2030.TodelivertheSDGs,businessesmustfocustheireffortswheretheiractualandpotentialimpactisgreatest.

Inlinewiththis,wehaveidentifiedtheSDGswherewecanhavethemostsignificantimpactasabusiness.ThisSustainabilityReport

showswherethesegoalsguideouractions.

InFY24,westrengthenedourcommitmentbyjoiningtheUNGlobalCompact,thelargestcorporatesustainabilityinitiativeintheworld.

Bybecomingaparticipant,wehavecommittedtoaligningourstrategyandoperationswiththeUN’sTenPrinciplesinhumanrights,

labour,environment,andanti-corruption.We’llalsocommittosubmittinganannualCommunicationonProgressReport.

IT’S IN THE DNA OF

PZCUSSONS TO BE A FORCE

FORPOSITIVECHANGE.

PZ Cussons plc / AnnualReportandAccounts2024 / Strategic Report

Decision &

monitoring

Board Environmental and Social Impact Committee –approvalofstrategyandmonitoringofdelivery,

includingcorporateKPIs.

Sustainability team

Functional workstreams–developmentand

managementofplanstoachievestrategicaims

andKPIsfromaworkstreamperspective.

Market delivery projects –fullP&L

accountability,hastoalignwithbusinesscontext;

responsiblefordeliveryofESprojectsona

businessunitlevel.

ES Executive Committee Forum (sub-setoftheExecutiveCommittee)–makesoperationaland

investmentsdecisions.

Sustainability Steering Group (SSG)(reporttoExecutiveCommittee)–monitoringofESgoals;

oversightofinternalandexternalcommunications.

Decision,

collaboration

& monitoring

Delivery

FOR EVERYONE

Our impacts on people:

Thisaddressesourimpactonpeople,our

employees’safetyandwellbeing,andthe

communitiesthatweserve.

Formoredetailsseepage 30

This section of our Annual Report provides a summary of our sustainability activity.

Formoredetailsvisitourwebsite:

www.pzcussons.com/sustainability

Our environmental impacts:

Thisaddressesourenvironmentalimpactson

theatmospherethroughourcarbonemissions

impact;ontheEarththroughthesourcing

decisionswemakeandthewaywemanage

wasteandpackaging;andontheoceansthrough

ouruseofwaterandtheimpactofourproducts.

FOR LIFE

Our behaviours as a business:

Thisaddresseshowwebehaveasabusinessand

thedecisionswemake,includingthewaywe

marketandsellourproducts,managementof

oursupplychain,ESandcorporategovernance.

FOR GOOD

GOVERNANCE

TheBoardoverseesoursustainabilitystrategyviaasub-committee,theEnvironmentalandSocialImpact(ES)Committee.TheExecutive

Committeeisresponsiblefordevelopingthestrategy,presentingittotheBoardESCommitteeforapproval,andmonitoringprogresstowards

oursustainabilitykeyperformanceindicators(KPIs).

TheSustainabilitySteeringGroup(SSG)reportstotheESExecutiveCommittee.TheSSGcomprisesrepresentativesfromourdifferent

marketsandbusinessfunctions,anditsroleistoreviewtheplansinplaceandourprogresstowardsourcorporateandmarketKPIs.

TheSSGmonitorsprogresstowardourESgoalsandoverseescommunicationeffortstobothinternalandexternalaudiences.Itensures

theeffectiveimplementationofourESstrategyacrosstheGroupandmarketlevels,supportingtheachievementofourKPIs.

TofacilitatetheexecutionofourESobjectives,wehaveestablishedfunctionalandregionalworkingteamsthatreporttotheSSG.

Theseteamsmeetregularlytodevelopandimplementbusinessunitandfunctionallevelprojects.

InthesecondhalfofFY24,theglobalSustainabilityFunctionwasintegratedintotheGlobalbrand-buildingorganisation.Thisstrategic

moveaimstoembedsustainabilitypracticesmoredeeplyintoouroperations,enhancebrandvalue,andcreateoperationalefficiencies.

 Formoredetailsseepage 32  Formoredetailsseepage 36

STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION

FOR EVERYONE.

We are committed to providing high-quality and safe products to our consumers and customers,

and we regard quality and consumer safety as a fundamental business responsibility.

AllourmanufacturingsitesareaccreditedtoISO9001forquality.

WeusetheprinciplesestablishedinISO10377,thestandardfor

consumerproductsafetytoassessandimproveourperformance.

Ourambitionistoinspireresponsibleconsumptionofour

productsanddisposalofourpackagingbyadaptingourpack

communicationsoconsumerscanmakeinformedchoices.

WearemembersoftheEcoBeautyScoreConsortium,which

aimstodevelopanenvironmentalimpactassessmentand

scoringsystemforcosmeticproductstoenableconsumersto

makeinformedandsustainablechoices.Wearealsoadopting

anon-packrecyclinglabels(OPRL)labellingsystemacrossthe

UKportfoliobeforetheEPR(ExtendedProducerResponsibility)

mandatorydeadline.

HEALTH AND SAFETY

OurmanufacturingsitesremainaccreditedtoISO45001,andinFY24,wecontinuetomakepositiveprogressinhealthandsafetyacross

ourKPIs.Wecontinuestrengtheningourhealthandsafetyculturethroughoutouroperationsbyfocusingonbehaviouralsafetyand

reporting/closureoftheleadingsafetyindicators.InFY24,wehaveseena14%reductioninthenumberofhealthandsafetyincidents

recordedversusthepreviousyear.

Unfortunately,wedidreporttwolosttimeincidents(LTI)fromoneofourmanufacturingsitesinAfrica.Theseincidentswerefully

investigated,andanauditwascarriedoutonthehealthandsafetyconditions.Wefullyexpectthattheactionsimplementedafter

theseincidentswilldeliverthedesiredresultsofcreatingaworkenvironmentandculturethatleadstoazeroLTImentality.

FY23 FY24

Change vs

prior year

Fatalities 0 0 0

LTI

/Yr. 1 2 +1

LTIFR

0.02 0.04 +0.02

AAIFR

1.15 0.82 -0.33

1 LTIdefinedasLostTimeIncidents.LTIreferstoanincidentsustainedatworkthathasresultedinthelossofproductiveworktimeintheformofabsenteeism.Thisapplieswhentimeis

loststartingfromthenextworkingday.

2 LTIFRdefinedasLostTimeIncidentFrequencyRate.

3 AAIFRdefinedasAllAccidentIncidentFrequencyRate.

Sustainability continued

PZ Cussons plc / AnnualReportandAccounts2024 / Strategic Report

Aligning to the SDGs

COMMUNITIES

Wewanttocreatepositivesocialchangeinthecommunitieswhereweoperate.OurCodeofEthicalConductrequiresthatourcharitable

donationsarefreefrompoliticalaffiliationsorconflictsofinterest.InFY24,werolledoutourCharityPartnershipFrameworkacross

theGrouptoidentifygapsandimproveourcommunityprogramme.WealsojoinedtheBusinessforSocietalImpact(B4SI)networkto

helpusmeasureandunderstandoursocialimpact.Inthenextyear,wewilllooktooptimiseoursocialimpact,continuingtoencourage

partnershipsthatalignwithourcorporatepurposeandbrands,withanadditionalemphasisonemployeeengagement.

Formoredetailsvisitourwebsite:

www.pzcussons.com/sustainability/for-everyone

EmployeesinUKandIrelandparticipatedinadragonboatracetofundraisefor

WoodStreetMission,whosupportfamilieslivingonalowincome.

EmployeesinNigeriacollectedplasticwastefromthelocalcommunityanddonatedit

toGreenhillRecycling,helpingreduceuseofvirginmaterials.

EmployeesinAustraliavolunteeredwithFoodbank,whoprovidefoodandgroceryreliefto

thoseinneed.

PZCussonsIndonesia,togetherwiththePKKMotherscommunity,commemorated

theFamilyEmpowermentandWelfareMovementUnityDay,whichaimstoimprove

communitywelfare.

STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION

FOR LIFE.

We address all our environmental impacts through the lens of our purpose.

WearecommittedtominimisingourimpactontheEarthand

oceans.Wedothisbyreducingourcarbonemissions,considering

oursourcingdecisions,andmanagingourpackaging,wasteand

wateruse.

Wemeasure,manageandreportourperformanceintheareaswe

believearemostimportanttothebusinessandwherewehave

themostsignificantimpactincluding:

• Carbonemissions

• Waterusage

• Landfillwaste

• Plasticconsumptionanddisposal

• Sustainablesourcingofpalmoilandpaper.

Allouroperatingsitescomplywithlocalregulationsandour

Groupstandards.Inadditiontothis,allourmanufacturingsites

arecertifiedtoISO14001,includingourKenyasitethatreceived

thecertificationinFY24.Weoperateacontinuousimprovement

programmeinourfactories,whichreducesourcarbonemissions,

wateruseandlandfillwaste.

PLASTICS AND PACKAGING

Thepackagingagendaishighonourlistofpriorities.Reducingour

packagingfootprintisasimportantasitischallenging.

Thisyear,wedevelopedspecificprogramsforbrandswithhigher

consumerexpectationsforsustainability,bothenvironmental

andsocial,likeSanctuarySpaandOriginalSource.Wehavebeen

choicefulaboutthesustainabilitynarrativethatisintimatelylinked

tothebrandpurposeandwillhelpinformactivationplansand

behind-the-scenesinterventionsforthenearandlongterm.

Furthermore,wehavedevelopedafuturepackagingtrajectory

forourUKandANZbusinessunitstohelpprioritiseupstream

technologiesandotherchangesrequiredtomeetourcorporate

packaging-relatedgoalsby2030.OtherBUswillfollow.

Ourglobalpapertargetalignswithourbusinessstrategyand

underscoresourcommitmenttosustainability.Weareactively

increasingtheuseofcertifiedorrecycledpaper,ensuringthatour

materialscomefromresponsiblymanaged,certifiedforestssuch

asFSC,PEFCorequivalentcertification.Thisapproachnotonly

makesthemostofpreciousforestresources,butalsoreducesthe

pressure to harvest more trees.

FY24 current

reporting year

FY23 previous

reporting year

Reducevirginplasticin

ourpackagingbyone

thirdby2030froma

2021baseline

-9.2% compared

to baseline

-7.8%compared

tobaseline

Ensure100%

recyclable,reusableor

compostablepackaging

by2030

85.6% 84.4%1

Use100%certifiedor

recycledpaperby2025

97%2 96%

1 FY23recyclable,reusableorcompostable%coveragehasbeencorrectedfrom88.4%

to 84.4%.

2 Thedatacoversover95%(bytonnage)ofourmanufacturedandthird-party

sourcedconsumergoods.Certificationandrecycledcontentisbasedonsupplier

documentationandhasnotbeenindependentlyverifiedorphysicallyreviewed.

Sustainability continued

PZ Cussons plc / AnnualReportandAccounts2024 / Strategic Report

Target

FY24 current

reporting year

FY23 previous

reporting year

Achievecarbonneutralityinour

operationsby2025

26% of our

emissions

19%ofour

emissions

Achievea42%reduction

inScopes1and2carbon

emissions(alignedwithscience-

basedtargets)by2030

-42.8%

compared to

baseline

-0.3%

comparedto

baseline

Achievenetzeroemissions

acrossScopes1,2and3

by2045

-11.7% vs

baseline

n/a

1 Vercoprovidelimitedassurance,followingtheISO14064-3:2019GHG–Part3.

Boundary:PZCussonsandallsubsidiariesworldwideonanoperationalcontrolbasis.

Basedontheverificationworkundertaken,VercoconsiderthatallmaterialGHG

emissionsourceshavebeenappropriatelyidentified,measured,andreported.It

isVerco’sconclusionthatthereisnoevidencetosuggestthattheGHGemissions

statementforFY24arenotmateriallycorrectorarenotafairrepresentationofPZ’s

operations.ItisVerco’sconclusionthatthereisnoevidencetosuggestthattheGHG

emissionscalculationhavenotbeenpreparedinaccordancewiththeWRI/WBCSD

GHGProtocol.

2 EcoActprovidedalimitedlevelofverificationalignedwiththeISO14064-3:2019

standardwithspecificationandguidancefortheverificationandvalidationof

greenhousegasstatements.TheorganisationalboundaryofPZCussonswas

establishedastoincludeoperationsitesinFY23.EcoActusedtheoperationalcontrol

approach,whichiswherethebusinesshasfulloperationalcontrol.Basedonthedata

andinformationprovidedbyPZCussonsandtheprocessesandproceduresfollowed,

nothinghascometoEcoAct'sattentiontoindicatethattheGHGScope3emissions

totalsreportedforFY23arenotfairlystatedandfreefrommaterialerror.

3 FY23carbonneutrality%coveragehasbeencorrectedfrom22%to19%dueto

calculationmethodologychangefromusingmarket-basedemissionsinFY23vsusing

location-basedemissionsinFY24.

4 CalculatingandverifyingScope3dataisacomplexandtime-consumingexercise.

ThefigurespresentedforFY24currentreportingyeararefromthelatestavailabledata

whichforScope3istheFY23inventoryandforScopes1&2istheFY24inventory.Both

areverifiedbythird-partyexperts.TheGroupwillseektoprogressthetimelinesofour

reportingsuchthattheScope3inventorydisclosurealignstothereportingfinancial

cycleinthefuture.

REDUCING CARBON EMISSIONS

Reducingcarbonemissionsisapriorityforourbusiness,and

wecontinuetosubmitafullclimatereporttotheCarbon

DisclosureProject(CDP).OurScopes1and2near-term

reductiontargetsandourScope3long-termcommitments

alignwithscience-basedmethodology.

InFY24,theGroup’scarbonfootprintforScopes1and2(market-

based)decreasedby42.8%comparedtoourbaseline,andwe

reducedourenergyconsumptionby32%comparedtoFY23.This

reductionhasbeenachievedthroughtheoutsourcingofpower

generationatourIkorodufactoryinNigeria,enteringamore

reliablegassupplycontractforourAbafactoryinNigeriaand

furthercontinuousimprovementofenergyefficiencyinitiatives

acrossallouroperations.

InFY24,wecontinuetoachievecarbonneutralityintheUK,

Beauty,ANZ,andAsianoperations.Carbonneutralitymeans

wehaveoff-setourremainingScopes1and2emissionsby

purchasingGoldStandardVERcarboncredits.Wehavedonethis

byincreasingenergyefficiency,movingtorenewableelectricity

andpurchasingcarbonoff-sets.Wepurchased13,000tonnesof

eoff-sets,supportingtransformationacrosstwoprojects,in

NigeriaandIndonesia.Bothprojectsmeettherequirementsofthe

GoldStandard,aninternationallyrecognisedoff-settingprovider.

Wecompletedtheenergyassessmentforourorganisationsinthe

UKthatmeetthequalificationcriteriaundertheUKGovernment

EnergySavingsOpportunityScheme(ESOS)phase3.

WefollowtheUKGovernment’senvironmentalreporting

guidance,includingtheStreamlinedEnergy&CarbonReporting

(SECR)requirements.Inaddition,wehavealsousedtheGHG

ProtocolCorporateAccountingandReportingStandardRevised

Edition.OuremissionsarecalculatedusingtheUKGovernment

GHGConversionFactorsforCompanyReportingandtheIEA

factorsforoverseaselectricity.

Verco1hasassuredouremissionsdataforScopes1and2and

EcoAct2forScope3,bothofwhichareindependent

third-partyexperts.

Aligning to the SDGs

STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION

Sustainability: For Life continued

EMISSIONS TABLES

Greenhouse gas emissions and energy consumption*:

FY24 current reporting year FY23 FY21 baseline year

UK Global Total UK Global Total UK Global Total

Energyconsumptionusedtocalculate

emissions (MWh) 6,361 112,883 119,244 6,518 169,868 176,386 6,209 158,214 164,423

Scope 1

Emissions from activities for which the

Company owns or controls including

combustion fuel & operation of facilities

(Scope 1) (tCO

e) 507 20,238 20,745 642 32,912 33,554 785 30,637 31,422

Scope 2

Emissions from purchase of electricity, heat,

steam and cooling purchased for own use

(Scope2location-based)(tCO

e) 741 6,396 7,137 676 5,569 6,245 833 7,815 8,648

Emissions from purchase of electricity, heat,

steam and cooling purchased for own use

(Scope2market-based)(tCO

e) 0 1,903 1,903 0 5,569 5,569 0 7,81 5 7,815

Total Scopes 1 & 2

TotalgrossScope1and2location-based

emissions(tCO

e) 1,248 26,634 27,882 1,318 38,481 39,799 1,618 38,451 40,069

TotalgrossScope1andScope2market-based

emissions(tCO

e) 507 22,141 22,648 642 38,481 39,123 785 38,451 39,236

IntensityratiotCO

e(Scope1and2

market-based)/£100,000revenue 0.25 6.78 4.29 0.31 8.61 5.96 0.18 21.55 6.50

Total Out of Scope Emissions (tCO

0 2,028 2,028 0 2,390 2,390 0 2,159 2,159

Scope 3

2,3,4

Cat1Purchasedgoodsandservices 504,712 594,048 521,474

Cat2Capitalgoods 373 332 312

Cat3Fuelandenergyrelatedactivities  7,952 8,486 6,315

Cat4Upstreamtransportanddistribution 89,055 102,670 155,957

Cat5Wastegeneratedinoperations 1,802 1,565 1,950

Cat6Businesstravel 1,200 726 227

Cat7Employeecommuting 1,872 1,915 2,268

Cat8Leasedassets 545 561 608

Cat9Downstreamtransportanddistribution 30,404 30,926 48,390

Cat10Processingofsoldproducts n/a n/a n/a

Cat11Useofsoldproducts 5,616,201 6,206,104 6,364,955

Cat12End-of-lifetreatmentofsoldproducts 64,533 61,372 69,634

Cat13Downstreamleasedassets n/a n/a n/a

Cat14Franchises n/a n/a n/a

Cat15Investments

432,568 462,727 463,188

* AllemissionshavebeencalculatedfollowingtheGreenhouseGasProtocolandusingtheUKGovernmentGHGConversionFactorsforCompanyReporting.Scopes1and2emissions

havebeencalculatedusingactualdata.Scope3emissionshavebeencalculatedusingspenddataandindustryaverageemissionfactors.

1 InformationassuredandverifiedbyVercoAdvisoryServicesLimited.

2 InformationassuredandverifiedbyCarbonClearLimitedtradingas'EcoAct'forFY23andFY21inventories.FY22isunverifiedbutadjustedinlinewithverificationrecommendations.

3 InFY24,wehaveimprovedthemethodologyofourScope3emissionsfor2021andsubsequentyearsinlinewithverificationrecommendation.Duetochangesinthemethodology

approach,therevisedGHGScope3emissiontotalsforFY21resultedinadecreaseof12%incomparisontotheScope3emissionsinitiallyreportedinFY23AnnualReport.Thedecrease

wasaresultofimproveddataqualityandreportingprocedures,includinguseofactualactivitydataasbasisofthecalculations,standardisationofdatareportingacrossBUsand

rectificationoferrorsidentifiedintheScope3emissionsinitiallyreportedintheoriginalFY21baseline.Correctionstodataerrorsweremostlyrelatedtodownstreamtransportation

anddistribution,wastegeneratedinoperationsandbusinesstravel.

4 CalculatingandverifyingScope3dataisacomplexandtime-consumingexercise.ThefigurespresentedforFY24currentreportingyeararefromthelatestavailabledatawhichfor

Scope3istheFY23inventory.ForFY23disclosurethisistheFY22Scope3inventory.Bothareverifiedbythird-partyexperts.TheGroupwillseektoprogressthetimelinesofour

reportingsuchthattheScope3inventorydisclosurealignstothereportingfinancialcycleinthefuture.

5 Category15InvestmentsincludeemissionsassociatedwiththePZWilmarjointventure6Outofscopeemissionsrelatetoouruseofbiomassforthegenerationofsteaminour

Kenyanoperations.

PZ Cussons plc / AnnualReportandAccounts2024 / Strategic Report

WASTE

InFY24,wereducedourabsoluteamountofoverallwastetolandfillby69%comparedtoaFY21baseline,withourUKoperations

maintainingzerowastetolandfillachievement.Weareprogressingtowardsourtargetofzerowastetolandfillby2030inthe

marketswhereappropriateinfrastructureexists.Weaimtoreducetheamountofsolidwastesenttolandfillyear-on-year,andallour

factoriesandlocationshavewastereductionprogrammesinplace,achievinga40%reductioninFY24versusthepreviousyearwhere

infrastructureexists.Westudyandmapourlandfillwastetoidentifyimprovementactions,whichweimplementviaourcontinuous

improvementprogramme.

Target FY24 current reporting year FY23 previous reporting year FY21 baseline year

By2030,weaimtosendzerowaste

tolandfillinthosecountrieswhere

appropriateinfrastructureexists

-69% reduction from a

FY21 baseline

-49%reductionfroma

FY21baseline

141 tonnes

WATER

Reducingtheamountofwaterweuseisessential,andwehaveacontinuousimprovementprogrammetoensureweuseiteffectively.In

FY24,wereducedourwaterconsumptionpertonneoffinishedproductby16%comparedtoaFY21baseline.Ourabsoluteoperational

water

1consumptionwasreducedby29%comparedtoaFY21baselineand7%reductionversuslastyear.Followingonfromourfirst

watersubmissiontotheCarbonDisclosureProject(CDP)lastyearweexpecttomakeafullsubmissionin2024.

Target FY24 current reporting year FY23 previous reporting year FY21 baseline year

Reducewaterintensityby30%from

2021baselineby20302

-16% reduction from a

FY21 baseline

-12%reductionfroma

FY21baseline

5.64m

/tofproduction

1 Operationalwaterisdefinedasthetotalwaterusednetofwaterinourfinishedproducts.

2 Waterintensityisdefinedastheoperationalwaterusepertonneofproduction.

BIODIVERSITY

Wepurchaseandsourcerawmaterialsthat,insomecases,impactbiodiversityandforests.Ourmostsignificantpurchasesarepaper-

basedmaterialsandpalmoil.WehavebeendisclosingdataontheimpactsofthosecommoditiesyearlytoCDP.

Targets

Continuetouse100%responsiblepalmoilinourproducts(nodeforestation,peatorexploitation)

100%ofourpaperwillbecertifiedorrecycledby2025

Wecontinueworkingtowards100%NDPE(NoDeforestation,NoPeatandNoExploitation)palmoilsupply.

Our progress in palm

99%ofourcrudepalmoil(CPO)

andpalmkerneloil(PKO)is

suppliedbydirectsuppliers

withNDPEcommitments

alignedwithours.

98%ofpalmoilderivativesare

suppliedbysupplierswithNDPE

commitmentsalignedwithours.

98%oftheCPO/PKOweuseis

fullytraceabletomill.

98%ofthederivativesweuseare

fullytraceabletomill.

Wearecommittedtouse100%certifiedorrecycledpaperby2025andhavereached97%inFY24.

Formoredetailsvisitourwebsite:

www.pzcussons.com/sustainability/for-life

STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION

Sustainability continued

FOR GOOD.

We behave ethically as a business through our decisions and our corporate, environmental and

social impact governance processes.

Weoperateinanopen,honestandfairbusinessenvironmentwithoursuppliers,customersandbusinesspartners.Ourethicalprinciples,

rootedinrespectandintegrity,guideourdealingswithallstakeholders,ensuringtheyfeelvaluedandrespected.

Thepoliciesandstandardswhichgovernourapproachinclude:

• CodeofEthicalConduct

• ModernSlaveryStatement

• SupplierCodeofConduct.

Code of Ethical Conduct

TheCodeofEthicalConduct(theECCode)setsoutour

statementofethicalprinciplesandthebehavioursexpected

acrossthebusiness.Itprovidesrulesandguidancetoensure

wecomplywiththeUKBriberyActandequivalentlegislation

inothercountries.TheECCodeappliestoallemployees,

contractors,Directorsandseniormanagement,jointventure

partners,suppliers,agents,consultantsandadvisers.

TheECCodealsosetsoutourpositiononanimaltesting,

anti-slaveryandforcedlabour,supplychainduediligence,

ourresponsibilitiestowardsouremployees,theprevention

offinancialcrime(includingzerotoleranceofallformsofbribery

andcorruptionandtheprohibitionofpaymentofbribes,

kickbacks,andfacilitationpayments)andtheprotectionof

whistle-blowers.TheECCodeissupportedbyanumberof

otherpolicies,detailedintheAuditandRiskCommitteeReport

onpages84to89ofthisAnnualReportandAccounts.

InFY24,weconductedourannualECCodeconfirmationsurvey

whichwascompletedbyalleligibleemployees.Theconfirmation

soughtfeedbackonthelevelofembeddednessofourECCode

andhowwellitwasunderstoodacrossourbusiness.Thefeedback

showedastrongunderstandingoftheECCodeandtheprocedures

inplacetomakewhistle-blowingreports.

Thenewjoinersprocessisworkingwell,andwiththeuseof

WorkdayandtheTraceInternationallearningmanagement

systemportal,allnewjoinersaretrackedtoensurethey

havereadtheECCodeandcompletedtheAnti-Briberyand

Corruptiontraining.TheHeadofEthics&Complianceand

localcompliancechampionsconductedadditionalface-to-face

trainingontheECCodeinhigh-riskmarkets.Wealsoconducted

face-to-facetrainingforemployeesatseveralfactorysites,

withover400employeesattending.

PZ Cussons plc / AnnualReportandAccounts2024 / Strategic Report

Modern Slavery Act and Supplier Code of Conduct

OurSlaveryandHumanTraffickingStatementsetsoutour

commitmenttodetectingandpreventingtheuseofallformsof

slaveryinoursupplychain.ItissupportedbyourSupplierCodeof

Conduct(SCOC)andprocurementpoliciestoensurethatwedo

notengagedirectlyorindirectlywithslaveryorhumantrafficking.

OurSCOCincorporatesourModernSlaveryActstatementand

mirrorsourethicalprinciplessetoutintheECCode,requiring

oursupplierstoadheretothesamestandardstowhichwehold

ourselves,includingbutnotlimitedtocompliancewithrelevant

lawsandregulatorystandardsinallcountriesinwhichwe

operateaswellascommittingtonottestfinishedproductsor

ingredientsonanimals.99.8%ofourhigh-valuedirectsuppliers

havesignedtheSCOCordemonstratedtheymaintainan

equivalentcodewithintheirbusiness.

InFY24,weimplementedourSupplierSustainabilityPrinciples*,a

statementofkeyprinciplesaroundsuppliersustainabilitybehaviour.

ItbuildsonourSupplierCodeofConducttoencouragemore

sustainablebehaviourinoursupplychainandcanbefound

onourwebsite.88.5%ofourhigh-valuedirectsuppliershave

acknowledgedtoworktowardsthoseprinciples.

Wehaveevolvedoursupplierriskduediligenceinthepast

12monthsbyconductingaglobalriskassessmentacrossour

vendorbaseandourregionsofoperations.

OurriskassessmentcoversspecificsectorrisksacrossPeople&

Ethics,EnvironmentalandSupplyChainriskmanagement.We

havecalibratedourinternalriskusingexternalcontrolsacross

DowJonesandSedex,whileourSCOChasfurtherreducedour

riskprofileacrossoursupplierlandscape.

Inparallel,weplantoreducethenumberofsupplierswe

workwithtoimprovegovernanceandcontrol.

* Samedocumentisbeingreferencedonpage112astheSustainabilityCharter.

Formoredetailsvisitourwebsite:

www.pzcussons.com/sustainability/policies-and-disclosures

STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION

Wesetoutbelowourclimate-relateddisclosureswhichcomply

withUKLR6.6.6Rbyincorporatingclimate-relatedfinancial

disclosuresconsistentwiththeTaskForceonClimate-related

FinancialDisclosures(TCFD)recommendationsandrecommended

disclosuresaswellastheguidanceforallsectorsassetoutinthe

'Annex'publishedinOctober2021.

OurTCFDreportingcomplieswithallrequirementsexcept

forStrategy(b)disclosure.Weanticipatebecomingfully

compliantinthecomingyearswhentheexpectedregulationon

climatetransitionplansforUKlistedissuersisintroduced.The

finalisationofourtransitionplanandimpactofclimate-related

risksandopportunitieswillthenbefurtherembeddedintoour

financialplanning.

GOVERNANCE

Board oversight

PZCussons’climateriskisultimatelygovernedandoverseenby

theBoard.TheBoardapprovesandoverseesoursustainability

strategy,committingtheGrouptoenvironmental,socialand

governanceperformanceandthatwedeliveragainstourgoals.

TheBoardisalsoresponsibleforsettingourriskappetiteand

monitoringtheapplicationofourRiskManagementFramework

andmethodology.

ThreeBoardCommitteesarealsocloselyinvolvedinreviewing

theelementsofsustainabilitythatimpactthekeyareasof

ourbusiness:

• TheEnvironmentalandSocialImpactCommitteereviews

andapprovesthesustainabilitystrategy,goalsand

implementationplans

• TheAuditandRiskCommitteeensuresoversightoftherisk

managementprocess.TheAuditandRiskCommitteeassesses

theextenttowhichclimatechangeandotherESGrisksare

likelytohaveamaterialimpactuponourfinancialstatements

• TheRemunerationCommitteeensuresongoingfocusonkey

environmentalandsocialcommitmentsthroughtheirapproach

totheRemunerationPolicyandrelatedincentiveschemesas

detailedonpages92to95ofthisreport.

SeeourESgovernanceinfographiconpage 29

TheEnvironmentalandSocialImpact(ES)Committeemetthree

timesduringtheyear.Throughouttheyear,theESCommittee

monitoredprogressagainstthegoalssetoutintheGroup’s

sustainabilitystrategy.Thestrategyprovidesoperationalfocus

and,alongsideasetofclearlydefinedperformancetargets,

supportstheCompanyinachievingitsgoals.TheESCommittee

ispleasedtoseethattheCompanyisontracktomeetingits

targetsofbeingcarbonneutralinoperationsby2025,reachinga

42%reductionagainst2021by2030,andnetzeroacrossScopes

1,2and3by2045.TheESCommitteewillcontinuetomonitor

andadviseonprojectswhichwillbestachievethesetargets.Key

prioritiesfortheESCommitteeforFY25includecontinuously

reviewingtheGroup’ssustainabilitystrategyandgoalsand

monitoringprogressagainsteach,ensuringrequiredprocesses

andcapabilitiesareinplacetodeliverthegoalsandfurther

optimisingsustainabilityreporting.

Readmoreaboutourprioritieson page 91

Management’s roles and responsibilities

OurChiefExecutiveOfficerisresponsibleforourenvironmental

andsocialimpactpoliciesandclimatecommitments.Key

management-levelindividuals,suchastheChiefSupplyChain

Officer,ChiefFinancialOfficer,andHeadofRisk,aretaskedwith

identifyingandenactingclimate-relatedchangeswithinthe

business.Sustainabilitymanagementisresponsibleforpresenting

climate-relatedissuestotheESCommitteeatleasttwiceayear

beforeannualreporting.Wehaveestablishedarobustgovernance

structurethatoperatestop-downthroughtheESCommittee,

asdescribedonpage29.PZCussonshasadedicatedTCFD

workinggroupwithrepresentativesfromtheSustainability,

RiskManagementandFinancefunctions.

Sustainability strategy

Wehaveidentifiedclimatechangewithinthe"Sustainabilityand

theEnvironment"principalrisk.Tobetterunderstandthepotential

impacts,wehaveconductedquantitativescenarioanalysisof

physicalandtransitionrisksovertheshort,mediumandlong

termtotesttheresilienceofourbusiness,underarangeoffuture

climatescenarios.Asaninternationalconsumergoodsbusiness

withmainmarketsintheUK,Nigeria,IndonesiaandAustralia,

ourbusinessisexposedtomultipleandvaryinggeographical

physicalandtransitionrisks.Thenatureofourbusinessmeans

thatwehaveofficesandmanufacturingfacilitiesspreadglobally,

whichfurtherincreasesourrelativeexposuretophysicalrisks

likeextremeweatherandtransitionrisks,includingchanging

regulatoryenvironments.

Scenario modelling

Wehaveassessedpotentialimpactsacrosstwofuturescenarios

coveringphysicalandtransitionrisksandopportunitiesthatmay

impactourbusinessinthefuture.

1) Net zero scenario: Thelowcarbonrevolutionisanambitious

scenariothatlimitsglobalwarmingto<2°Cby2100throughstringent

andimmediatelyintroducedclimatepoliciesandinnovation,reaching

netzeroCO

emissionsaround2050.ItislinkedtoRCP2.6,which

involvesmoretransitionrisksearlyonbutmanagestolimit

physicalriskstoaminimum(NGFSScenario:NetZero2050).

2) Current policies: Assumesthatonlycurrentlyimplemented

policiesarepreserved.Theworlddoesnotcutemissions,and

climatechangeaccelerates,causing2.5°Cofwarmingby2050and

>4°Cby2100,bringingirreversiblechanges.ItislinkedtoRCP8.5,

andinvolveslittletonotransitionrisksearlyonbutresultsin

irreversibleandgloballydisruptingphysicalrisks(Networkforthe

GreeningtheFinancialSystem(NGFS)Scenario:CurrentPolicies).

Transition riskswereassessedbyconsideringpossiblerisksand

opportunitiesfortheGroupovertheshort,medium,andlong

termresultingfromeconomic,marketandregulatorychanges.

Financialmodellinghasbeenconductedforthesetransitionrisks

usingavailablePZCussonsdataandassumptionsandexternal

datafromsourcesincluding:

• InternationalEnergyAgency(IEA)

• NetworkfortheGreeningtheFinancialSystem(NGFS)

• InternationalInstituteforAppliedSystemsAnalysispreparing

theSharedSocio-economicPathways(SSP)

• IntergovernmentalPanelonClimateChange(IPCC).

Taskforce On Climate-Related Financial Disclosures (TCFD)

PZ Cussons plc / AnnualReportandAccounts2024 / Strategic Report

Physical riskswereassessedbymodellingtheexposureofallPZ

Cussons’facilitiesacrossmanufacturing,storageanddistribution

operationswiththeassistanceofathird-partyprovider,leveraging

toolsandmodelsdevelopedfortheinsuranceindustrythat

integrateclimateprojections.Wealsoassessedtherisktoselected

keyglobalsuppliersofrawandpackagingmaterialsandfinished

goods.Exposurewasassessedforarangeofacuteandchronic

climaterisksundertwophysicalriskscenarios,specificallyRCP2.6

andRCP8.5.Wewillcontinuetoanalysethedetailsofthese

physicalrisksandtheorganisation'sresilienceandputmitigation

plansinplace.Ourprogresswillbedisclosedinnextyear's

AnnualReport.

Wedefinelow/medium/highrelativeimpactbasedonthenetprofit

financialimpactthresholdsfromourRiskManagementMethodology:

Lowrisk

Insignificanttomoderatefinancialimpact:

<8%ofadjustedoperatingprofit

Mediumrisk

Majorfinancialimpact:>8%and<12%of

adjustedoperatingprofit

Highrisk

Severefinancialimpact:>12%ofadjusted

operatingprofit

1 Alternativeperformancemeasuresareexplainedandreconciledtothemostdirectly

comparablefinancialmeasurepreparedinaccordancewithIFRSonpages206to209.

Time horizons: Wehaveassessedpotentialimpactsacrossthree

timehorizons(short/medium/longterm)accordingtoourcurrent

targets,commitmentsandusefulassetlives.Wehaveselected

thesehorizonsinaccordancewithTCFDandtheirrelevanceto

ourbusinessasexplainedbelow.

Short: 1-5years,whichislinkedtoourshort-termfinancial

planninghorizons

Medium: 5-10years,whichislinkedtoourmedium-term

commitmentsandtargets

Long: 10+years,whichislinkedtotheoperationallifetime

ofourexistingassetsandournetzerocommitment

Considering risks on our business, strategy and

financial planning

Climateriskshavebeenconsideredthroughourfinancial

modellingoftransitionandphysicalriskstoestablishtherelative

low/medium/highimpactonthebusinessoverthreedifferent

timehorizonsandtwoclimatescenarios.Wehaveconsideredthe

impactoftheidentifiedclimate-relatedrisksandopportunities

onthebusinessandstrategy.Toprepareforthesescenarios,we

haveembeddedmitigatingactionsamongourtransitionrisksand

opportunitiestomanagepotentialrisksandcapitaliseonpotential

opportunities.Seepages40and41.

PZCussonsisundertakingfurtheranalysistofullyembedclimate

risksintothebusinessandstrategy,especiallywithinthefinancial

planningprocesses.

Weaimtodisclosehowtheserisksareconsideredinourfinancial

planningprocessesinfuturedisclosures.

Wearecontinuallyreviewing,updatingandenhancingour

understandingofclimate-relatedrisksandopportunitiesand

theresultantimpactsonourbusinessinlightofexternaltrends,

newinformationandchangestoourbusiness.Wewillcontinue

toassesschangestoouroverallresilienceasourunderstanding

ofclimate-relatedrisksandopportunitiesmatures,andifour

businessstrategieschange.Wearedevelopingourtransitionplan

inlinewiththeTransitionPlanTaskforce(TPT),whichdescribes

ourprogresstodateagainstourclimate-relatedtargetsand

initiativesforreducingcarbonemissions.

Basedonourriskassessmentandscenarioanalysisresults,the

transitiontoalow-carboneconomyconsistentwitha2°Corlower

scenario(our‘netzero’scenariodescribedabove)isnotexpected

tofundamentallyimpactourbusinessmodel.However,theGroup

hasseveraldirectandsupplieroperationsinlocationsexposedto

heatstress,floodingandheavyprecipitation.Webelievethatthe

mitigationplansthatareinplaceandfurthermitigationactions

willprovidebusinessandorganisationalresiliencetoourshort-

andmedium-termrisks,andweconsiderourstrategiestobe

appropriateformanagingouridentifiedrisks.Wewillcontinueto

assessourclimate-relatedrisksandopportunitiesunderdifferent

scenariosanddetermineouroverallresilience,asweacknowledge

thatchangestointernalandexternalfactorsovertimewillimpact

theresilienceofourbusinessstrategiestoclimatechange.

RISK MANAGEMENT

Climaterisksareintegratedintoouroverallriskmanagement

process.Ourriskmanagementprocessisbasedonacommon

riskframeworktoensureweidentify,assessandmitigateallrisks,

i.e.,productsafetyandquality,healthandsafety,cybersecurity,

legalcompliance,climatechange,environmentalandregulatory

compliancerisksthatthreatenthesuccessfuldeliveryof

ourstrategicobjectives.Youcanfindfulldetailsonourrisk

managementprocessonpages42to50ofthisAnnualReport

andAccounts.

Specifically,ourRiskManagementMethodologyonpage43

describesourprocessesforidentifying,assessingandmitigating

allrisks,includingclimate-relatedrisks.Wealsoidentifynewand

emergingrisksthroughanumberofapproachesthatarelistedon

page44.Climatechangeformspartofoursustainabilityandthe

environment’sPrincipalRisk,withfurtherinformationonhowwe

managethisriskprovidedonpage49.

STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION

PHYSICAL RISKS

Group operations

Description of material risk or opportunity: BusinessinterruptionoftheGroup’soperationcausedbyclimatechangeimpacts,suchas

extremeheat,extremerainfall,heatstress,precipitationstress,droughtstress,fireandsealevelrise.

Potential financial impact Modelling approach Scenario

Relative impact

How we’re respondingST MT LT

TheGroup’sdirectoperations

mightbeaffectedbyphysical

impacts,whichmayleadto

increasedcostsforrepair/

retrofitofimpactedassets

anddecreasedrevenuedue

tooperationaloutages.

Exposureofeachasset

isdeterminedbasedon

locationandtheseverity/

intensityofaclimate

hazardoccurringateach

location,withthevalue

exposedbeingthefull

assetvaluelocatedinan

areaofmaterialclimate

hazardintensity.

Netzero

L H H

TheGroupwillcontinuetoanalysea

varietyoflocationswhicharekeytothe

business,coveringimportantpartsofthe

valuechain,ourinternaloperationsand

importantcustomermarkets,anduse

scenarioanalysisandclimatemodelling

tobetterunderstandtherangeofphysical

riskstheGroupisexposedto.

Highest exposure countries:

Nigeria,Indonesia

Currentpolicies

L H H

Supplier operations

Description of material risk or opportunity: BusinessinterruptionoftheGroup’ssuppliers’operationscausedbyincreasedfrequencyand

severityoffloodrisk.

Potential financial impact Modelling approach Scenario

Relative impact

How we’re respondingST MT LT

TheGroup’ssupplychain

mightbedisruptedby

physicalrisksresultingin

increasedcostsandlossof

revenueduetochangesin

theavailabilityofgoodsand

servicesfromsuppliers.

Exposureofeachasset

isdeterminedbasedon

locationandtheseverity/

intensityofaclimate

hazardoccurringateach

location,withthevalue

exposedbeingthefull

assetvaluelocatedinan

areaofmaterialclimate

hazardintensity.

Netzero

L H H

TheGroupanalysesexposureforarange

ofacuteclimaterisksandputsmitigation

plansinplace.Furthermitigationactions

willprovidebusinessandorganisational

resiliencetoacute/chronicrisks.

Alternativesupplierswithlower

exposuretoclimateriskmightbetaken

intoconsiderationtomitigatetheriskin

thefuture.

Highest exposure countries:

China,Taiwan

Currentpolicies

L H H

Low risk

Medium risk

High risk

TRANSITION RISKS

Carbon pricing

Description of material risk or opportunity: Increasedcostsassociatedwithcarbonpricingandtaxation.

Potential financial impact Modelling approach Scenario

Relative impact

How we’re respondingST MT LT

Carbonpricingalreadyexists

insomeoftheGroup's

jurisdictions,includingthe

EUandUK.Underdifferent

scenarios,carbontaxesare

expectedtoincrease,which

couldincreasetheGroup's

directoperatingcosts,

resultinginalossofrevenue.

CarbonpricesfromNGFS

appliedtoourlong-term

emissionsforecasts.

Scope1&2:

netzero

L L L

Inoursustainabilitystrategy,weare

settingambitioustargets;seepage33,

toreduceGHGemissionsthroughoutour

valuechain,reducingourdependenceon

futurecarbontaxesandvoluntaryoff-set

markets.Wealsomonitorgovernment

policiesandclimatechangeactionsand

take necessary steps to minimise the

impactonourbusiness.

Highest exposure countries: Nigeria

Currentpolicies

L L L

Scope3:

netzero

L H H

Currentpolicies

L L L

Taskforce On Climate-Related Financial Disclosures (TCFD) continued

ST Short-term MT Medium-term LT Long-term

PZ Cussons plc / AnnualReportandAccounts2024 / Strategic Report

Extended producer responsibility

Description of material risk or opportunity: IntroductionofcarbonfootprintlabellingandExtendedProducerResponsibility(EPR).

Potential financial impact Modelling approach Scenario

Relative impact

How we’re respondingST MT LT

Increasingregulatory

pressureandtaxesregarding

thesustainabilityofmaterials

usedinthemanufacturing

ofproductsmayimpact

profitabilitythrough

increasedcostofgoods.

EstimatedEPRcosts

appliedtoourlong-term

packagingforecasts.

Netzero

L H H

Wemonitorregulatorydevelopmentsand

workwiththewiderindustrytoprepare.

Weareafoundingmemberofthe

EcoBeautyScoreConsortium,whichaims

todevelopanenvironmentalimpact

assessmentandscoringsystemfor

cosmeticproductstoenableconsumers

tomakeinformedandsustainable

choices.Wearealsoadoptingon-pack

recyclinglabels(OPRL)labellingsystem

acrosstheUKportfoliobeforetheEPR

mandatorydeadline.

Highest exposure country:UK

Currentpolicies

L L L

Cost of energy

Description of material risk or opportunity: Abruptandunexpectedshiftsinenergycosts.

Potential financial impact Modelling approach Scenario

Relative impact

How we’re respondingST MT LT

TheGroupanticipates

higherlevelsofenergyprice

volatility.Thiswillimpact

energycostsassociatedwith

theGroup’soperations,which

willalsoaffectoursupply

chainresultinginincreased

costsandlossofrevenue.

EnergypricesfromNGFS

appliedtoourlong-term

energyforecasts.

Netzero

L L L

Throughourcontinuousimprovement

programmeinourfactories,wecontinue

toincorporateenergyreductioninitiatives

acrossoursitestominimisetheriskof

increasedenergycosts.

Highest exposure country:Nigeria

Currentpolicies

L L L

OPPORTUNITY

Energy efficiency

Description of material risk or opportunity: Reducedenergycoststhroughefficiencygainsandcostreductions.

Potential financial impact Modelling approach Scenario

Relative impact

How we’re respondingST MT LT

Reducedenergycosts

maydecreasetheGroup’s

operationalcosts.

EnergypricesfromNGFS

appliedtoourlong-term

energyforecasts.

Netzero

L L L

Wewillcontinueimprovingtheenergy

efficiencyofourassetsandsuppliers

throughourcontinuousimprovement

programmes,whichwillalsoresultin

loweroperationalcosts.InFY24,we

completedtheoutsourcingofpower

generationatourIkorodu(Nigeria)

manufacturingsite,reducingourcost

perkWhby17%.

Highest exposure country:Nigeria

Currentpolicies

L L L

Metrics and targets

Weconsidergreenhousegasemissions,energyconsumption,landfillwasteandpackagingreductionsasprincipalmetricsthatallow

ustomonitorprogressregardingclimate-relatedrisksandopportunities.Weensureongoingfocusonourenvironmentalandsocial

commitmentsthroughourapproachtotheRemunerationPolicyandrelatedincentiveschemes.Wedonotcurrentlyhaveaninternal

carbonpricingmechanism.However,wewillcontinuetoassessthefeasibilityofintroducingonetomitigateourexternalexposureto

carbontaxationandlegislation.

Wewillcontinuetoensureourmetricsandtargetsareappropriateforourriskprofileandexpandourmetricsinthefuture,considering

theTCFDall-sectorandcross-industrymetricguidance.Wecurrentlyuseourexistingenvironmentalmetricstotrackprogressagainstour

targetsandwillfurtherdevelopprocessestobettertrackandmanageourprogressovertime.

Fulldetailsonourmetricsandtargets,includingtheKPIsweusetotrackprogress,canbefoundonpages 32 to 35ofthisAnnualReportandAccounts

STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION

Risk Management and Principal Risks

HOW WE

MANAGE RISK.

RISK CULTURE

PZ Cussons is committed to conducting its business responsibly, prioritising safety and adhering to all legal requirements. We integrate

risk awareness into our decision-making processes, ensuring informed responses to both opportunities and potential threats.

As an international business, we acknowledge the inherent risks and uncertainties associated with executing our strategy across our

key markets. Through effective risk management practices and proactive identification of opportunities, we strengthen our capacity

to achieve our strategic objectives.

GOVERNANCE AND OVERSIGHT

TheBoardhasultimateresponsibilityforestablishingthe

Group'sriskappetiteandensuringtheeffectivenessoftheRisk

ManagementFramework.Thislatterresponsibilityisdelegatedto

theAuditandRiskCommittee,whichreviewsthemostsignificant

risksfacedbytheGroupatleasttwiceayear.TheBoardhas

completedarobustassessmentoftheGroup'semergingand

principal risks.

WhiletheAuditandRiskCommitteeconductsin-depthreviewsof

specificrisks,otherBoardCommitteesandsub-committeesalso

reviewrisksrelevanttotheirrespectiveareasofoversight.

Atthemarketlevel,businessunitleadershipteamsimplementthe

RiskManagementFrameworkwiththesupportofanetworkof

RiskChampions.LeadershipteamssupportedbyRiskChampions

areresponsibleforensuringtheaccuracyandrelevanceofmarket

levelriskinformation,thatmayrequireescalationtotheAuditand

RiskCommitteeasnecessary.

AttheGrouplevel,theExecutiveCommitteeadoptsacombined

top-downandbottom-upapproachtoreviewingrisksacrossthe

Group.Thisensurestheidentificationandmonitoringofboth

strategicandoperationalrisksofsignificantimpact.TheExecutive

CommitteealsoassessallPrincipalRisksandemergingrisksand

mayconductdeeperanalysesofcriticalPrincipalRiskstoverify

adequateresourceallocationforcontrolsandmitigations.

OwnershipofeachPrincipalRiskisassignedtoaspecificExecutive

Committeemember.TheGroupInternalAuditFunctionprovides

independentassurancetoboththeExecutiveCommitteeandthe

AuditandRiskCommitteeregardingtheeffectivenessoftheRisk

ManagementFrameworkandinternalcontrolsystems.Forjoint

ventureagreements,whereapplicable,theGroupimplementsits

establishedriskmanagementprocesses.

ItisimportanttonotethattheGroup'sriskmanagement

processesaredesignedtomanage,noteliminate,riskentirely.

Theseprocessesprovidereasonable,butnotabsolute,assurance

againstmaterialmisstatementorloss.

Board of Directors

Definespolicy,setsriskappetiteandassessesPrincipalRisksfortheGroup.

Hasoverallresponsibilityforsoundriskmanagementandinternalcontrols.

AUDIT AND

RISK COMMITTEE

Assessesandreviews

theeffectivenessofthe

Group’sRiskManagement

Frameworkandinternal

control systems.

EXECUTIVE

COMMITTEE

EnsuresthattheRisk

ManagementFramework

isembeddedandoperates

throughouttheGroup.

Regularlyreviewsthe

regionalandconsolidated

riskregistersandensures

thatmitigationactivities

are in place.

GROUP RISK TEAM

Overseestheconsistent

applicationoftheGroup’sRisk

ManagementFramework.

REGIONAL AND

BUSINESS UNIT

MANAGEMENT

EnsuresthattheRisk

ManagementFramework

isembeddedataregional

andlocallevel.Regularly

reviewstheriskregister

andensuresthatmitigation

activitiesareinplace.

PZ Cussons plc / AnnualReportandAccounts2024 / Strategic Report

RISK APPETITE

TheBoardiscommittedtomanagingriskinawaythatisalignedwithourvisionandculture.Weareawareofthemanyrisksthat

ourbusinessfacesandwehaveaprocessinplacetoidentify,assessandmitigatetheserisks.

Wehavealowerriskappetiteforrisksthatcoulddamageourreputationorbusinessopportunities.Theseincluderisksrelatedto:

• Productsafetyandquality

• Healthandsafety

• Legalcompliance

• Environmentalandregulatorycompliance

• Cybersecurityanddataprotection.

Wehaveahigherappetiteforrisksthatareassociatedwithgrowthandtheachievementofourboldstrategicambitions.Theseinclude:

• Ourinvolvementinemergingmarkets

• Businesstransformation.

Weseektomitigateourriskexposuretowithinappetitethroughavarietyofmeansincludinginsurancecover,planningandcontrol

processes,andnaturalportfoliohedgessuchasthediversityofoursupplychain,brandandproductranges,andglobalfootprint.

OUR RISK MANAGEMENT METHODOLOGY

TheGroupleveragesacomprehensiveriskmanagementprocessandstandardisedframeworktoproactivelyidentify,assess,andmitigate

risksthatcouldimpedethesuccessfulexecutionofourstrategicobjectives.Theriskmanagementmethodologyandframeworkare

appliedconsistentlyacrossalllevels,encompassingPrincipalRisksdowntomarketandoperatingunitlevels.

InFY24,weenhancedourriskmanagementmethodologyandframework,ensuringconsistencyofapplication,relevantriskassessment

criteriaandanimprovedbottom-upprocess.Thestrengthenedframeworkandmethodologyhavebeenbolsteredbyadedicated

programofengagementandtrainingactivities,includingworkshops,theembeddingofRiskChampionsacrosstheGroup,andenhanced

reportingandinsights.TheseinitiativescontributesignificantlytofosteringarobustriskculturethroughouttheGroup.

Theinitialidentificationofrisks,

includingemergingrisksatthe

operationallevel.

Theresultsandstatusofthose

riskactionsaremonitoredbythe

GroupRiskTeam,management

andsecondlineassurance

functions.

Thestatusofriskactionsis

reportedfrequentlytothe

AuditandRiskCommittee.

These risks are then assessed,

includinganassessmentofthe

potentialimpactoftheriskon

ourbusiness,andtheextentto

whichtheriskcanbemitigated

orcontrolled.

Actionsareimplemented

byregionalandbusiness

unitmanagement.

Mitigatingactionsare

then planned,agreedand

communicatedtotherelevantrisk

ownersthroughouttheGroup.

STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION

Risk Management and Principal Risks continued

EMERGING RISKS

Aformal,biannualreviewofemergingrisksisundertakenbytheAuditandRiskCommitteeinconjunctionwiththePrincipalRisks

assessment.Inaddition,newandemergingrisksareidentifiedinanumberofwaysasillustratedinthediagrambelow.

Webelievethatourapproachtoidentifyingnewandemergingrisksiscomprehensiveandeffective.Bytakingavarietyofapproaches,we

areabletoidentifyrisksthatmaynotbeimmediatelyobviousandtotakestepstomitigatethembeforetheycauseharmtoourbusiness.

OUR PRINCIPAL RISKS

Themostsignificantrisks,thosethatcouldaffectourstrategic

ambitions,futureperformance,viabilityand/orreputation,

formourPrincipalRisks.

ThefollowingtablesetsoutourPrincipalRisks.Thisincludesa

summaryofkeyinformation,includingthetypeofrisk,linkstoour

strategicdriversandresidualrisktrends.Thislistdoesnotinclude

allourrisks.Otherrisks,notpresentlyknown,orthosewecurrently

considertobelessmaterial,mayalsohaveadverseeffects.

Changes to our Principal Risks in the year:

AsperourRiskManagementFramework,weformallyassessthe

PrincipalRisksfacingtheGrouponabi-annualbasis;theresults

ofthatassessmenthaveidentifiedchangestothePrincipalRisks:

Macro-economic and Financial Volatility, inc. Foreign Exchange

AsaglobalGroup,macro-economicandfinancialfactorsimpact

theGroupinanumberofwaysincludingglobalfinancialmarket

volatilityimpactingexchangerates,particularlyinNigeria,political

changeresultinginevolvingtaxregimes,andworldwidemarket

dynamicsimpactingaccesstocapital.TheGrouphaveupdated

thisPrincipalRisktomoreaccuratelyreflectthebroadscope

ofriskfactors,havingpreviouslybeencalled'FinancialControls

(ForeignExchange,TreasuryandTax)'.

Geopolitical Instability

GiventheglobalfootprintoftheGroup,theeffectsofincreasing

geopoliticaltensionsandescalatingconflicts,alongsideglobal

politicalupheavalrelatedtoelectionsandenergycrises,impactour

businessoperationsandsupplychain.TheGrouphaveupdatedthis

PrincipalRisk,previouslycalled‘MarketandEconomicDisruption

inc.EmergingMarkets’tobetterreflecttheimpactstotheGroup.

Consumer Safety

Inpreviousyears,the'HealthandSafety'PrincipalRiskhas

encompassedbothemployeehealthandsafetyandconsumer

safety.Recognisingthatconsumersafety,especiallyinbaby

foodproductssoldinAustraliaandNewZealand,istheprimary

riskdriver,theGrouphasupdatedthisPrincipalRiskwhilestill

includingtheemployeehealthandsafetyelements.

The Principal Risks that have increased in the year:

Talent Development and Retention

ThestrategicreviewofourAfricanbusinessincreasesthe‘Talent

DevelopmentandRetention’PrincipalRiskintheregionowingto

uncertainty,coupledwiththisistherelatedtalentandpeoplerisks

associatedwithotherongoingstrategictransformationprogrammes.

Business Transformation

Wearestrategicallytransformingthebusinessbyenhancingour

organisationaldesignandimprovinginternalefficienciestoreduce

complexity.Consequently,duetoitssignificanceforthefutureof

theGroup,the‘BusinessTransformation’PrincipalRiskisincreasing.

Reporting to the Board:

Potentialnewandemergingrisks

arereportedtotheBoardand

consideredduringitsperiodic

reviewsofGrouprisks.

Discussions with

external advisers:

Theseprocessesareinformed

byregulardiscussionswiththe

Group’snetworkofexternaladvisers

includingitslawyersacrossall

relevantterritories,accountants

andtaxadvisers,internalaudit

partners,insurancebrokers,health

andsafetyadvisersandsustainability

andPRadvisers.TheGroupisalso

amemberofvarioustradeand

industrybodiesacrosstheworldand

leveragestheexperienceofitspeers

andexternalindustryexperts.

Considering Principal Risks:

Informulatingandevolvingthe

Groupriskregister,theExecutive

CommitteeandtheBoardconsider

thePrincipalRisks,andthose

identifiedbyindividualmarketsand

functionstodeterminewhether

thereareanynewriskswhichrequire

Group-widefocusandmitigation.

Awareness of emerging

macro trends:

Ourin-houseGroupRiskTeamensures

weareawareofemergingmacro

trendsandrisksassociatedwithour

industryandgeographicalfootprint.

PZ Cussons plc / AnnualReportandAccounts2024 / Strategic Report

TREND

Increased

No change

Decreased

New

LINK TO STRATEGY

Build Brands

Serve Consumers

Reduce Complexity

Grow Sustainably

Develop People

RISK 1: MACRO-ECONOMIC AND

FINANCIALVOLATILITY INC.

FOREIGN EXCHANGE

Trend:

Link to Strategy:

Description of risk: How we manage the risk:

Duetoourinternationalfootprint,weare

exposedtoavarietyofexternalfinancialrisks

inrelationtoForeignExchange,Treasuryand

Tax.Macro-economicvolatilityanddisruption

cancausetherelativevalueofexchangerates

tofluctuatesignificantlyand,asaresultofour

globaloperations,canhaveamaterialimpacton

financialperformance.Inaddition,becausewe

consolidateourfinancialstatementsinGBP,we

aresubjecttoexchangerateriskassociatedwith

thetranslationofourunderlyingnetassetsand

earningsofourforeignsubsidiaries.

Givenourgeographicfootprint,wearealso

subjecttoexchangeratefluctuationsand

macro-economicpoliticaldecisionsand

theconsequencesthereofinsomeofour

jurisdictionsthatimpactourabilitytoaccess

foreigncurrencytosettleintercompanyliabilities

thatmayincludetherepatriationofcashto

theUKbywayofdividendpayments.InFY24,

wesawthismacroeconomicandfinancial

volatilitymateriallyimpacttheGroupduetoour

operationsinNigeriaandexposuretotheNaira.

Amaterialshortfallinouroperatingcashflow

and/orourabilitytoaccessappropriatesources

andlevelsoffundingcouldundermineour

ongoingbusinessactivityandthenextstageof

businesstransformation.Intimesoffinancial

volatility,wemaynotbeabletoraisefunds

oraccesscreditinanappropriatejurisdiction

duetomarketilliquidity.Wearealsoexposed

tocounterpartyriskswithbanks,suppliers,

customersandothercreditproviderswhich

themselvescouldbeimpactedbymacro-

economicvolatilityandhencecouldresult

infinanciallossestotheGroup.

Taxisacomplexandeverevolvingareawhere

lawsandtheirinterpretationchangefrequently,

andwhichmayleadtounexpectedornewtax

exposures.AsaglobalGroup,wearesubjectto

transferpricingandgeneraltaxationpoliciesand

regulation,whicharealsosubjecttointernational

andlocalregulatorychangesthatmayhavean

impactonbusinessperformance.

• ManagingtheGroup'sexposuretotheNairaisakeypriorityfortheExecutive

Committee.AdedicatedSteeringCommitteemeetsregularlytocloselymonitor

foreignexchangeriskanddevelopstrategiestomanagetheGroup'sexposure

• TheAuditandRiskCommitteeoverseestreasuryandtaxrelatedrisks,witha

significantfocusandoversightonforeignexchangeexposurerelatedtotheNigerian

currency,theNaira.Additionally,theCommitteeoverseestaxandtreasurystrategy,

potentialtaxobligations,andfinancialcontrols

• Aspartofthemonthlybusinessperformancecycle,cashflowforecastsfromoperating

unitsarereviewed,scrutinisedandconsolidated;themonthlyperformancecycle

alsoincludesindepthanalysisoftheoutlookforallcovenantsrelatedtoourbanking

facilitiestoinformstrategicdecision-making

• WemaintainanestablishedGroupTreasuryfunctionandourGroupTreasuryPolicy

definesournon-speculativeapproachtothemanagementofforeigncurrencyand

otherfinancialmarketexposures

• Transactionalcurrencyexposuresaremanagedwithinprescribedlimitswith

short-tomedium-termforwardexchangecontractstakentoreduceourexposure

tofluctuations

• Marginimprovementprojectstodeliversavingsandmitigatethecostimpactof

currencydevaluation,aswellascashrepatriationstrategiestomovecashfrom

NigeriatotheUKandreduceborrowingcostsandinterestpayments,areinplace

• Localsourcingofrawmaterialsandservicestakesplacewherepossibletoreduce

exposuretoforeigncurrencytransactionsandinflation

• AGrouptaxationstrategyisinplacethatdefinesthewayinwhichweconduct

ourselveswithrespecttoourtaxaffairs.Ourin-houseGroupTaxcapabilityis

complementedbytheuseofspecialisttaxconsultantstoensurecompliancewith

alllocalandinternationaltaxregulationsandtreaties,andtoensurethatchanges

inregulationsaretakenintoconsiderationaspartofourfuturebusinessstrategy

• Treasuryandtaxcontrolsareanimportantpartofouroverallfinancialcontrol

framework,whichcontinuestoevolvetoremainfitforpurposeandreflective

ofthenatureofbusinessrisks.

STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION

RISK 2: IT AND INFORMATION SECURITY

Trend:

Link to Strategy:

Description of risk: How we manage the risk:

Wecommunicatewithourcustomersand

supplierselectronically,andourmanufacturing,

salesanddistributionoperationsaredependent

onreliableITsystemsandinfrastructure.

Prolongeddisruptiontothesesystemscouldhave

asignificantnegativeimpactontheperformance

oftheGroup.

Ongoingglobalinstabilityanduncertaintyhave

kepttheriskofcyberattackshigh,potentially

affectingthesecurityofthepersonaldatawe

holdaswellasbusiness-criticalinformation,

andtheautomatedsystemsweuseacrossour

supply chain.

Additionally,thegrowinguseofgenerativeAI

introducesnewandadaptivecybersecurity

threats,increasingtherisksassociatedwith

databreaches.

• AcentrallygovernedITfunctioncontinuallymonitorsknownandemergingthreats

that may impact us

• Anindustry-approvedcybersecuritycontrolframeworkhasbeendeployedand

externalreviewsofthisframeworkhavebeenconducted,evidencingitseffectiveness

• Wehavedeliveredacomprehensiveinformationsecurityawarenessprogrammeto

ensurebothbusinessandpersonalinformationremainprotected

• Criticaldataisbackedupregularlyinaccordancewithourcontrolframeworkand

recoverytestingisundertaken

• WehavefurtherembeddedourrelationshipwithourdedicatedCybersecuritypartner,

includingmakinguseofadditionalmodulesintheyear

• WehavecontinuedourrelationshipwiththeNationalCyberResilienceCentre

toensureweareawareofemergingrisksaroundCyberIncidentResponse(and

reactions,includingransomapproach),industryinsightsandapproachesand

cyberintelligence

• WehaveanITriskgovernanceframeworkinplace,withriskinformationreviewed

monthlybytheITLeadershipTeam,managingtheriskprofileforthedeliveryof

ITServicesacrossCybersecurity,ITOperationalRisk,AuditandComplianceand

DisasterRecovery

• TheITinformationSecurityRiskCommitteeisnowfullyestablished.Thisgroupmeets

monthlyandhasrepresentationfromHR,Marketing,SupplyChain,Legal,Audit

andRiskandIT.TheCommitteegovernsandreviewsitemssuchastheuseofAI,

cyberattacksandremediations,andotherITsecurityrisks

• AcomprehensivesuiteofITpoliciesisinplacecoveringacceptableuse,network

security,removablemedia,informationsecurity,ITandthird-partysecurity,access

controlandmanyothers.

RISK 3: BUSINESS TRANSFORMATION

Trend:

Link to Strategy:

Description of risk: How we manage the risk:

Businesstransformationencompassesboththe

reviewoforganisationaldesignandongoing

functionalandoperationalchanges,aimedat

reducingcomplexities,drivingefficienciesand

deliveringenhancedshareholdervalue.

Wecontinuetotransformthebusinessacrossall

functionalareasandmarketstoachieveourlong-

termstrategicaims.Wemustsuccessfullymanage

theimpactsoftheseongoingactivities,whileat

thesametimedeliveringunderlyinggrowth.

Therearebusinessrisksrelatedtothe

achievementofourtransformativeobjectives,

includingouracquisitionsanddisposalsstrategy,

organisationaldesignchangesaswellas

technologyandinfrastructuralchallenges.

Wehaveawide-rangingnumberof

transformationprogrammes;failuretoexecute

theseinitiativeseffectivelycouldresultin

adeclineinbusinessperformanceoran

under-deliveryoftheexpectedbenefitsand

consequentlyimpactthereturnweareable

tomaketoourshareholders.

• Periodicreportingonkeybusinessandfunctionalbusinesstransformationinitiatives

isprovidedtotheAuditandRiskCommittee

• Allsignificanttransformationprogrammesaresponsoredandownedbyamember

ofourExecutiveCommittee

• AcrossourtransformationprogrammewehavededicatedSteeringCommittees,often

chairedbyExecutiveCommitteemembers,includingtheChiefExecutiveOfficerand

ChiefFinancialOfficerandprojectdeliveryteams,whoconductin-depthanalysisof

progressandregularlyreporttotheBoard

• OurGroupwideControlsTransformationProject,whichimprovestheglobalcontrol

framework,hasbeenbroughtin-houseandnowoperatesas'businessasusual'

• AnewGlobalTransformationDirectorhasbeenappointedtooverseetheCompany

transformationagenda,whichwillfurtherstrengthenthemanagementofthisrisk

intoFY25

• OurGroupInternalAuditfunctionissupportingthemanagementandoversight

ofkeytransformationprogrammesasabusinesspartneringexercise

• Thetransformationofourinternalbusinessandconsumerdatacapabilityisled

byadedicatedspecialistteamtosupportourwiderdigitaltransformation.

Risk Management and Principal Risks continued

PZ Cussons plc / AnnualReportandAccounts2024 / Strategic Report

TREND

Increased

No change

Decreased

New

LINK TO STRATEGY

Build Brands

Serve Consumers

Reduce Complexity

Grow Sustainably

Develop People

RISK 4: TALENT DEVELOPMENT AND RETENTION

Trend:

Link to Strategy:

Description of risk: How we manage the risk:

Werecognisethattodeliversustained,profitable

growthwerequirethebesttalent.Weare

focusedonattracting,developingandretaininga

diverserangeofskilledpeoplewiththepotential

todeliverourambitiousgrowthagenda.

Thecompetitionfortoptalentremains

high;attractingkeytalentinsomeregionsis

challengingduetomarketdynamicssuchasin

Nigeriawiththetrendtoemigrationofnationals,

andinbothIndonesiaandtheUKwithhighly

competitiveemploymentmarkets.

Withcontinuedglobaluncertainty,wealsosee

employeeengagement,rewardandwellbeingas

continuedpriorities.

Theimpactofthestrategicreviewofour

Africanbusiness,alongwithothertransformation

programmes,isalsofactoredintothisPrincipalRisk.

• Specificemployeeretentionstrategieshavebeenimplementedwithinourbusiness

toensureappropriateemployeemanagementandmaintenanceisachievedduring

aperiodoftransformationalchange

• Wecontinuallymeasureoverallengagementandourengagementscoreshavebeen

consistentoverthelastthreeyears,despitealandscapeofinternalandexternal

change.96%ofourpeoplecompletedthesurvey,andweachievedanengagement

scoreof73%

• Wecontinuetohavevibrantandopenconversationswithourpeople,throughGroup-

widesocialmedia,communicationplatformsandquarterlyglobalTownHallmeetings;

theseareaugmentedbyweeklyteamandmarket‘Pulses’andregular‘PZTalks’

designedtokeepemployeesinformedofkeystrategicinitiativesandgoals

• Wehaveacontinuedfocusonwellbeing,withspecificinitiativesinourmarketsaimed

atsupportaroundhealthandwellnesseducation.Weencouragework/lifebalance,

includingonFridays,whenmanyofouroffice-basedpeopleareabletofinishwork

at 1pm

• Ourglobalperformancemanagementprocesshelpsourpeopletoreachhigh

performance,growtheirskillsandexperience,andprogresstheircareer

• ThroughtheuseofLinkedInLearningandotherexternallyhostedtrainingplatforms,

wehavemadecontinuousskillsdevelopmentavailabletoall

• Wemanagearegularcycleoftalentandsuccessionplanningforourseniorleadersat

alllevelsofthebusiness.Usingourpeoplesystem(Workday),wehavevisibilityofthe

experience,potentialandaspirationofourpeople;unlockingourabilitytoidentify

andmovetalentaroundPZCussons.Wehavealsoassessedtherisktoandimpact

ofretentionofourfutureleadersandcriticaltalent

• FY24sawthefurtherembeddingofourWorkdaysystem,drivingbetteremployee

performancemanagement,feedback,talentmanagementandlearning.Allemployeescan

seetheexplicitlinkbetweenemployeegoals,performance,developmentandreward

• Wecontinuetoofferhybridandvirtualworkingarrangementsacrossourmarkets,

whichareenabledbythedeploymentofITplatformssuchasMicrosoftTeamsand

Office365aswellasensuringourofficesaresetuptechnologicallyforbothhome

andofficeworkingemployeestocollaborate.

STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION

RISK 5: CONSUMER AND CUSTOMER TRENDS

Trend:

Link to Strategy:

Description of risk: How we manage the risk:

Ourconsumerscontinuetofacecost-of-living

crisesacrossourmarkets.Theriskofcompetition

inthemarketplace,especiallyinonline-only

offeringsandacrosslowerquality,lower

pricedproducts,continuestorepresentarisk

tothefinancialperformanceoftheGroupas

consumerscontinuallyreviewexpenditureon

keyhouseholditems.

Failuretounderstandourconsumers,manage

ourcustomerrelationshipsandinnovatein

responsetounderlyingtrendscouldleadto

financialandreputationallossfortheGroup.

• Weusethelatestmarketresearchandinsightsdata,includingtheuseofAItomonitor

ourconsumers’needs

• Specialistonline-onlymarketingandsalesteamsareinplace

• Wecontinuetofocusonmaintainingstrongrelationshipswithourexistingcustomers

anddevelopingrelationshipswithnewcustomers

• Weremainfocusedoncuttinganycostswecanfromourproductsthatdonotimpact

theconsumerexperienceorsacrificeperformanceorquality

• Wehavediversifiedourproductoffering,includingbrandstargetedatamorecost

focusedconsumerbase

• Wehaveinvestedinourinternalbusinessandconsumerdatacapabilitytomore

closelyanalyse,andadaptto,changingconsumertrends

• WehaverenewedourfocusonR&Dandinnovation,placingitattheheartof

ourstrategy.

RISK 6: GEOPOLITICAL INSTABILITY

Trend:

Link to Strategy:

Description of risk: How we manage the risk:

Geopoliticalevents,includingconflicts,trade

wars,economicandpoliticalpolarisation,

nationalisationofsupplychainsandenergy

crisescoulddisruptouroperationsbothwithin

themarketsinwhichweoperateandalsoinour

widersupplychain.

Additionally,politicalinstabilitycanleadto

changesingovernmentpolicies,regulations,

andtaxes.Thisriskisparticularlystarkacross

emergingmarkets,mostnotablywithin

Nigeria,andcanleadtodisruptiontobusiness

operations,increasedcosts,anddifficultyin

strategicforwardplanning.

Politicalinstabilityinresource-richregionscan

leadtosignificantfluctuationsinthepriceof

rawmaterialsandenergy,impactingproduction

costs.Tradewarsandembargoescanleadto

increasedtariffsandimport/exportrestrictions,

drivingupthefinalcostofgoods.Geopolitical

volatilitycanalsoincreaseinsurancepremiums

forbusinessesoperatinginriskyregions.

Failuretoreacttochangingmarketconditions

couldleadtoamaterialeffectontheGroup’s

financialperformance,marketshareor

reputationalstanding.

• WehaveadedicatedGroupRiskManagementFunctionthatreportstotheBoard,

viatheAuditandRiskCommitteematerialmattersofconcerninrelationtoemerging

Geopoliticalrisks

• Wehavebrandsacrossmultiplesegmentsandpricepointsacrossmultiplemarkets,

whichensureswehavesufficientdiversificationacrossourproductmixtocaterfora

widerangeofconsumersandwecontinuetodiversifyourproductioncapabilitiesand

thesimplificationofourglobalsupplychain

• OurGlobalProcurementTeamestablishesforwardcontractswherepossibleto

mitigatetheexposuretoinstabilityinrawmaterialcommodityprices

• Wehaveextensiveexperienceoperatingwithinemergingmarketsandusethis

experiencetomanageregionalisedinstabilityrisks

• Withbothourin-houseandexternallegalexpertise,weensureweareawareof

emergingmarket-relatedlegalandcompliancerelatedrisks

• Trendsinrelationtogeopoliticalinstabilityaremonitoredandmodelledregularlyand

integratedintoourmonthlybusinessperformancecycle.

Risk Management and Principal Risks continued

TREND

Increased

No change

Decreased

New

LINK TO STRATEGY

Build Brands

Serve Consumers

Reduce Complexity

Grow Sustainably

Develop People

PZ Cussons plc / AnnualReportandAccounts2024 / Strategic Report

RISK 7: LEGAL AND REGULATORY COMPLIANCE

Trend:

Link to Strategy:

Description of risk: How we manage the risk:

Wearesubjecttoawidespectrumoflegislation,

regulationandcodesofpracticethatcan

varybetweenthegeographiesinwhichwe

operate.Examplesincludeproductsafety,

competition,anti-briberyandcorruptionand

employment.Failuretoadheretosuchlawsand

regulationscanresultinreputationaldamage,

aswellassignificantfinesandthepossibilityof

criminalliability.

AstheuseofgenerativeAIcontinues,thereisan

increasedriskofIPinfringementandleakageof

confidentialinformationasemployeesestablish

howtousethenewtools.Thereisalsoan

increasedriskthatregulationsfailtokeeppace

withtheemergingtechnologies,exposingthe

Grouptopotentialissues.

Alongsidethis,likeallcompanies,weareexposed

tolitigationriskinthemarketsinwhichwe

operateandmustcontinuallyremainvigilant

totheriskoffinancialliabilityinrespectofour

contractualobligations.

• WehaveanexperiencedEthicsandComplianceTeam,ledbyourHeadofEthics&

Compliance,reportingintotheGeneralCounsel,withourethicsandcompliance

programmebeingoverseenbytheAuditandRiskCommitteeandCompanySecretary

• OurGroupRiskTeamisnowestablished,overseenbytheAuditandRiskCommittee

• OurlegalandregulatoryspecialistsatbothGroupandregionallevelmonitorand

reviewtheexternallegalandregulatoryenvironmenttoensurethatweremain

awareofandareuptodatewithallrelevantlawsandlegalobligations

• Wearesupportedbyanetworkofexternalexpertswhocanbeengagedasrequired

andhelpustohorizonscanandidentifyemergingrisks.Thisisparticularlyimportant

indevelopingcountrieswherechangesinthelawcanbesuddenandunpredictable

• WehaveaGroup-wideCodeofEthicalConductwhichemployeessignuptoandthis

iscomplementedbyanannualcertificationexercise

• Wehaveacomprehensivetrainingprogrammeincludingethicsandcomplianceand

anti-briberyandcorruptionmodules

• WehaveacomprehensiveAIAcceptableUsePolicywhichisavailabletoallemployees

viatheintranet,thisisoverseenbytheInformationSecurityRiskCommittee

• In-houselegalleadswithineachMarketleadershipteam

• Athird-partyconfidentialwhistle-blowinglineisinoperation,whichgivesemployees

andcontractorsthechancetoraiseissuestobeinvestigatedbytheEthicsand

ComplianceTeam.

RISK 8: SUSTAINABILITY AND THE ENVIRONMENT

Trend:

Link to Strategy:

Description of risk: How we manage the risk:

Theeffectsofclimatechangerepresenta

materialrisktothebusiness,thereforethe

needtofindmoresustainablewaysofdoing

businessisvital.Thisincludesensuringtheraw

materialswerequireareresponsiblysourcedand

efficientlyusedandthatwearearesponsible

andintegralpartofthecommunitiesinwhich

weoperate.

Oneofourkeystrategicobjectivesistogrow

sustainably.Tothatend,wehavesetourselves

sciencealignedsustainabilitygoals;failure

toachievethosetargetsrisksalienating

keystakeholders,includingconsumersand

customers,whoareincreasinglyfocusedon

environmentalsustainabilityandtransparencyin

supplychains,anddamagingthegoodwillinour

brands,withconsequentlimitationofourability

togrowandcreatevalue.

• OurBoard-appointedEnvironmentalandSocialImpactCommitteeprovides

governanceandoversightoverourSustainabilityFunctionandactivities.Belowthis,

workingforumsareinsitu,includingregularfunctionalandregionalforumswith

SustainabilityChampionsacrossdifferentdepartmentsandbusinessunits

• DowJonesandSedexsupplierriskmanagementtools,whichincludesustainability

factorsandrequirementsarenowwellembedded

• FY24sawtherolloutofourSupplierSustainabilityPrinciples,outliningourkey

expectationsandrequirements

• Todriveawarenessandrelevancyofsustainabilitytoemployees’jobsandpersonal

lives,wehaveanemployeeintranethuboutliningourstrategicaims,sustainability

ambitions,ourprogrammealliancesandpartnershipsandgeneralsustainableliving

practicesandexamplesforemployeesintheirdailylives

• OurcarboninventoryforScope1,2and3isverifiedbythird-partyexpertsandis

publishedonourwebsite.

STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION

RISK 9: CONSUMER SAFETY

Trend:

Link to Strategy:

Description of risk: How we manage the risk:

Ourbrandportfolioincludeswashingandbathing

items,beautyproductsandfooditems,assuch

thesafetyandqualityofourproductsisof

paramountimportancetotheGroup;theriskof

contamination,mislabellingorunsafeuseofraw

materialsremainsasignificantrisktotheGroup.

Afailureinthepracticesweadopttoensure

consumersafetymayresultinreputational

damage,significantfinanciallossfromproduct

recallsandfinesfromregulators,togetherwith

possiblecriminalliabilityfortheGroup.

• Weapplyrobustqualitymanagementstandardsandsystems,rigorouslymonitoring

themthroughoutallsupplychainstages.Thisappliesnotonlytoourownproduction

facilitiesbutalsotoourthird-partymanufacturers

• WelaunchedournewQualityandConsumerSafetyPolicytoensurethatour

standardsinthisareaaremaintainedanddevelopedwherenecessary

• Wealsomaintainadedicatedconsumercomplaintshotline.Anyincidentsrelatingto

thesafetyofourconsumers,orthequalityofourproductsareactivelyinvestigatedto

ensurethattimelyandeffectiveactionistaken

• ThesameappliestohealthandsafetyincidentsacrosstheGroup,whereweseek

toidentify,assessandrespondtoincidentstoensurewecontinuouslyimproveour

HealthandSafetyFramework.

RISK 10: SUPPLY CHAIN AND LOGISTICS

Trend:

Link to Strategy:

Description of risk: How we manage the risk:

Ourproductionanddistributionfacilitiescould

beseverelyimpactedbyadverseeventsaffecting

thecontinuityofsupply,suchasafailureofa

keysupplier,ahealthandsafetyincident,an

environmentalfailure,orglobalevents.

Ourconsumersandcustomerscouldbeseverely

impactedbymaterialincreasesininputcostsof

rawmaterials,freightanddistributioncostsand

aninabilitytosupplyfinishedproducts.

Failuretogettheproducttoourconsumersor

failingtoprovidethatproductatareasonable

pricecouldhaveamaterialeffectonbusiness

performanceandourreputationalstanding.

• Weundertakearigorousselectionprocessbeforeengagingwithnewthird-party

suppliersandperformongoingauditsandperformancemonitoringtoensurethat

contractedstandardsarebeingmaintainedorexceeded

• Wehaveinplaceathird-partyriskmanagementsolution,whichenablesustoforesee

emergingthirdparty-relatedrisksandissues

• WeusemultiplesupplierswherepossibleandhaveadedicatedGlobalProcurement

Teamwhocansourcealternativesupplierswherenecessary,complementedbyaQuality

ManagementTeamabletoappropriatelyassesspotentialreplacementproducts

• OurdedicatedGroupProcurementTeamhasspecialistknowledgeandunderstanding

ofkeyrawmaterialsandcommoditiesmarkets,andoursystemsallowustoreview

forwardrequirementsandtoobtainvalue

• Weuseourgloballyrecognisedlogisticspartnerstoensureweareadequatelyaware

ofspecificgeopoliticalorsecurityriskswithinthemarketsinwhichweoperate.

Risk Management and Principal Risks continued

TREND

Increased

No change

Decreased

New

LINK TO STRATEGY

Build Brands

Serve Consumers

Reduce Complexity

Grow Sustainably

Develop People

PZ Cussons plc / AnnualReportandAccounts2024 / Strategic Report

Viability and Going Concern

GOING CONCERN STATEMENT

TheGroup’sbusinessactivities,togetherwiththefactorslikely

toaffectitsfuturedevelopment,performanceandpositionare

setoutintheStrategicReport.Thefinancialpositionofthe

Group,liquiditypositionandavailableborrowingfacilitiesare

describedwithintheFinancialReview.Inaddition,note19ofthe

ConsolidatedFinancialStatementsincludespoliciesinrelation

totheGroup’sfinancialinstrumentsandriskmanagementand

policiesformanagingcreditrisk,liquidityrisk,marketrisk,foreign

exchangerisk,pricerisk,cashflowandinterestrateriskand

capital risk.

TheGroupmeetsitsfundingrequirementsthroughinternalcash

generationandborrowings.Borrowingsareamountsdrawnunder

bothcommittedanduncommittedborrowingfacilities.TheGroup

hasa£325.0millioncommittedcreditfacilitywhichisavailable

forgeneralcorporatepurposes.Asat31May2024,theGroup

hadheadroomonthecommittedfacilityof£164.0millionand

netdebtof£115.3millioncomprisingcashof£51.3millionand

borrowingsof£166.6million.

Inassessinggoingconcern,theGrouphaspreparedbothbase

caseandseverebutplausiblecashflowforecastsforaperiodof

18monthsuntiltheendofNovember2026(the“goingconcern

reviewperiod”),whichisatleast12monthsfromthedateof

approvalofthefinancialstatements.TheGroup’sbasecase

forecastsarebasedontheBoard-approvedbudgetandthe

firstyearofthecurrentfive-yearplan,andindicateforecasted

continuedcompliancewithitsbankingcovenantsandsufficient

liquiditythroughoutthegoingconcernreviewperiod.

TheDirectorshaveconsideredaseverebutplausibledownside

scenario(excludingtheuncertaintyregardingtheNigerianNaira)

whichmodelsthefollowingassumptions:

• 5%reductioninGrouprevenue;and

• Groupgrossmargindeclineof200bps.

Thisdownsidescenarioalsoshowsbothcontinuedcompliance

withitsbankingcovenantsandsufficientliquiditythroughoutthe

goingconcernreviewperiod.

However,overthepastyeartherehavebeensignificant

fluctuationsintheNairaexchangeratewhich,duetothesize

oftheGroup’soperationsinNigeria,needstobeconsidered

aspartofourgoingconcernassessment.TheDirectorshave

thereforeconsideredanadditionalseverebutplausibledownside

NairaexchangeratescenariotostresstesttheGroup’sfinancial

forecasts,usingaNairaexchangeratedeclineofgreaterthan10%

fromtherateasatthestartofSeptember2024.Thisunmitigated

downsidescenarioshowsapotentialbreachoftheinterestcover

financialcovenantasat29November2024whichifmanagement

mitigationactionsprovedinsufficient,wouldresultintheGroup

needingtonegotiateawaiverofitsinterestcovercovenantto

ensurethebusinessmeetsitsborrowingfacilityobligationsover

thegoingconcernreviewperiodasthecommittedcreditfacility

maybecomerepayableondemand.TheDirectorsaresatisfied

thatthisunmitigateddownsidescenariodoesnotpotentially

breachanyoftheGroup’sotherfinancialcovenants.

Managementconsidertheretobesignificantandfeasible

mitigationsinplace.Theseincludebothshort-termandstructural

costreductions,aswellasthepotentialdisposalofnon-core,

non-operatingassets.Althoughmanagementacknowledges

thatcertainofthesemitigationsareoutsidetheircontrolin

theveryshortterm,anumberofthesemitigatingactionsare

alreadyunderway.

TheGroupiscurrentlyengagedinaprocesstosellitsSt.Tropez

brandandisexploringpotentialtransactionsthatcouldleadtoa

partialorfullsaleofitsAfricabusiness,havingreceivedanumber

ofexpressionsofinterest.ApartialorfullsaleoftheGroup’s

AfricabusinesscouldmateriallyreducetheGroup’sexposureto

fluctuationsintheNairaexchangerate.TheBoardhascommitted

tousinganyproceedsfromthesetransactionstofirstreduce

grossborrowings,andconsequentlytheleveloftheGroup’snet

interest cost.

Afterreviewingthecurrentliquidityposition,financialforecasts,

stresstestingofpotentialrisksandconsideringtheuncertainties

describedabove,andbasedonthecurrentfundingfacilities,the

DirectorsexpecttheGrouptohavethefinancialresourcesto

continuetooperatethebusinessfortheforeseeablefuture.For

thesereasons,theDirectorscontinuetoadoptthegoingconcern

basisofaccountinginpreparingtheGroupfinancialstatements.

However,shouldmanagementmitigationsproveinsufficient,

theimpactofNairaexchangeratevolatilityonforecastinterest

cover covenant compliance represents a material uncertainty that

maycastsignificantdoubtupontheGroup’sabilitytocontinue

asagoingconcern.Thefinancialstatementsdonotinclude

theadjustmentsthatwouldresultiftheGroupwereunableto

continueasagoingconcern.

VIABILITY STATEMENT

Assessment of prospects

InassessingtheprospectsoftheGroup,theBoardhastaken

accountofthefollowing:

• TheBusinessmodelonpages14to15andtheGroup’s

diversifiedportfolioofproducts,operationsandcustomers,

whichreduceexposuretospecificgeographiesandmarkets,

aswellaslargecustomer/productcombinations,strongproduct

demand,theshareofthemarketandproductpenetration

ourfocusbrandshaveandtheresilienceandstrengthof

manufacturingfacilitiesandoverallsupplychain

• TheGroup’scashgenerationandthattheGroupcurrently

hassignificantcommittedfacilitiesheadroominitsexisting

committedbankingarrangements.

STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION

Viability and Going Concern continued

Assessment of viability

Indeterminingtheappropriateviabilityperiod,theBoardhas

takenaccountofthefollowing:

• Thefinancialandstrategicplanningcycle,whichcoversa

five-yearperiod.Thestrategicplanningprocessisledbythe

ChiefExecutiveOfficerandisfullyreviewedbytheBoard

• Theinvestmentplanningcycle,whichalsocoversfiveyears.

TheExCoconsiders,andtheBoardreviews,likelycustomer

demandandmanufacturingcapacityforeachofitskeymarkets.

Thefive-yearperiodreflectsthetypicalmaximumleadtime

involvedindevelopingnewcapacity.TheBoardconsiders

that,inassessingtheviabilityoftheGroup,itsinvestmentand

planninghorizon,supportedbydetailedfinancialmodelling,

thatfiveyearsistheappropriateperiod.

Assessment period

TheBoardhavedeterminedthatthefive-yearperiodtoMay

2029isanappropriateperiodoverwhichtoprovideitsviability

statement.ThisperiodformspartoftheGroup’sstrategicplanning

processandreflectstheBoard’sbestestimateofthefuture

viabilityofthebusiness.

Scenario testing

TotesttheviabilityoftheCompany,wehaveundertakenarobust

scenarioassessment:

• ‘Top-down’sensitivityandstress-testing.Thisincludeda

recentreviewbytheAudit&RiskCommitteeoffive-yearcash

projectionswhichwerestresstestedtodeterminetheextent

towhichtradingcashflowswouldneedtodeterioratebefore

breachingtheGroup’sfacilities.Inaddition,thefinancial

covenantsattachedtotheGroup’sdebtwerestresstested

• Thelikelihoodandimpactofseverebutplausiblescenariosin

relationtoprincipalrisksasdescribedonpages44to50.These

principalriskswereassessedbothindividuallyandcollectively.

Whiletheprincipalrisksallhavethepotentialtoaffectfuture

performance,noneofthemareconsideredlikely,either

individuallyorcollectively,togiverisetoatradingdeterioration

ofthemagnitudeindicatedbythestresstestingandto

threatentheviabilityofthebusinessoverthefive-year

assessmentperiod.

InconcludingonthefinancialviabilityoftheGroup,having

consideredthescenariosreferredtoabove,theDirectorshavea

reasonableexpectationthattheCompanyandtheGroupwillbe

abletocontinueinoperationandmeetallitsliabilitiesastheyfall

dueuptoMay2029.Fortheviabilityassessment,management

consideredtheavailabilityofcommittedcreditfacilitiesthrough

theviabilityperiod.Duringtheprioryear,theGroupagreedanew

£325.0millioncommittedcreditfacilitywhichincorporatesaterm

loanandarevolvingcreditfacility,andtheBoardisconfidentthat

duringtheperioditwillbeabletoexercisetheoptionsavailable

toextendthefacility,andtoreplacethetermloanfacilitywhich

maturesduringtheviabilityperiodatthesamelevelifrequired.

Thescenariosmodelledareoutlinedonpage53andmanagement

considertheretobesignificantandfeasiblemitigationsinplace

suchthatnoindividualeventorplausiblecombinationofevents

wouldhaveafinancialimpactsufficienttoendangertheviability

oftheGroupintheperiodassessed.Thesemitigationsinclude

bothshort-termandstructuralcostreductions,aswellasthe

potentialdisposalofnon-core,non-operatingassets.Furthermore,

thescenariosdonotreflectthattheGroupiscurrentlyengaged

inaprocesstosellitsSt.Tropezbrandandisexploringpotential

transactionsthatcouldleadtoapartialorfullsaleofitsAfrica

business,havingreceivedanumberofexpressionsofinterest.

TheBoardhascommittedtousinganyproceedsfromthese

transactionstofirstreducegrossborrowings.Itwould,therefore,

belikelythattheGroupwouldbeabletowithstandtheimpactof

suchscenariosoccurringovertheassessmentperiodandwould

continuetooperateinaccordancewithitsbankcovenants.

Reverse stress testing

Managementhasperformedreversestress-testingonthekey

bankingcovenantstoassessbyhowmuchtheperformanceof

theGroupwouldneedtodeterioratefortheretobeabreach

ofthecovenants.Forthekeyleveragecovenanttobebreached

EBITDAwouldneedtofallsignificantlyfromthecurrentlevel,

andtheBoarddoesnotbelievethisscenariotobeplausible.

Insuchanevent,managementwouldtakemitigatingactionsto

reducetheimpactofareductioninEBITDAby,forexample,strict

managementoftheGroup’scostbase,andtightmanagementof

theGroup’scash,forexample,reducingthedividendpayment,

stoppingcapitalexpenditureandtakingotheractionsto

preserve cash.

Viability statement

Afterconductingtheirviabilityreview,theBoardconfirm

thatsubjecttothematerialuncertaintynotedinthebasisof

preparationinnote1oftheConsolidatedFinancialStatements

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five-yearperiodoftheirassessmentto31May2029.

PZ Cussons plc / AnnualReportandAccounts2024 / Strategic Report

2024 Scenarios modelled Link to Principal Risks Mitigation

1. MACRO-ECONOMIC AND GEOPOLITICAL

Inability to repatriate cash back to the UK due to local market

illiquidity –nocashrepatriatedtotheUKfromNigeriainFY25

andFY26.

Nigerian Naira devaluation –reducedprofitabilityasaresult

ofa50%devaluationoftheNigerianNairathroughoutthe

viabilityperiod.

1.Macro-economic

andfinancial

viability

6.Geopolitical

instability

Sufficientcommittedcreditfacilitiesheadroom

maintainedandtightcostcontrol.

Adedicatedsteeringcommitteewhichdevelops

strategiestomanageforeignexchange

exposureandmarginimprovementprojectsto

deliversavingsandmitigatethecostimpactof

currencydevaluation.

2. CONSUMER AND CUSTOMER

Competitive landscape and consumer trends leading to

pricing pressures –5%year-on-yearreductioninGrouprevenue

comparedtobase.

Consumers impacted by high inflationary environment with

inability to pass through cost inflation –5%year-on-yearreduction

inrevenueinUKandIndonesiamarkets;reductioningrossmargin

percentagecomparedtobasecaseby250bpsinthesamemarkets.

Competitive landscape leading to higher marketing and

consumer spend–M&Cspendpercentageincreasedby5ppt

abovebasecase.

5.Consumerand

customertrends

TheGrouphasandiscontinuingtostrengthen

itscapabilitiesinrevenuegrowthmanagement,

marketingandsupplychainoptimisation.In

additiontothis,ourdiverseproductportfolio,

renewedfocusonR&Dandinnovation,and

investmentinconsumerdatainsightsare

important to counteract such pressures.

TheGrouphasalsoalreadyconsistently

demonstrateditsabilitytomitigatesignificant

inputcostinflationoverrecentyears.

3. SUPPLY CHAIN AND LOGISTICS

Closure of UK in-house manufacturing for six months –no

revenuefromin-housemanufacturedproductsforsixmonths

inFY26.

10.Supplychain

andlogistics

AdedicatedGlobalProcurementTeamwhocan

sourcealternativesupplierswherenecessary,

complementedbyaqualitymanagement

teamabletoappropriatelyassesspotential

replacementproducts.

4. IT, LEGAL AND REGULATORY COMPLIANCE AND

CONSUMER SAFETY

Fines–one-offchargeof5%ofworldwiderevenueinFY26.

2.ITandinformation

security

7.Legalandregulatory

compliance

9.Consumersafety

TheGrouphasspecialistteamsinplacewhich

managetherisksrelatingtoITandinformation

security,legalandregulatorycompliance,and

consumersafety.

ByorderoftheBoard,on18September2024.

Kareem Moustafa

General Counsel and Company Secretary

STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION

Non-Financial and Sustainability Information Statement

CA Ref Disclosure Group approach (including policies and due diligence) Reference

A1 Climate-related financial disclosures

OurTCFDdisclosures

OurEnvironmentalandSocialImpactframework

andgovernance

OurEnvironmentalandSocialImpactCommitteehasTerms

ofReferencewhichareapprovedbytheBoardandwillbe

reviewedannually

Page38

Page29

1(a) Environment

Wemeasureanumberofmetricstoreflectour

environmentalimpact,includingcarbonemissions,water

usage,landfillwaste,plasticconsumptionandsustainable

sourcingofpalmoil

Ourenvironmentalperformance,policiesanddue

diligenceactivities

Pages28to37

1(b) Employees

Ouremployeeengagementpoliciesandpractices Page56

1(c) Society

Weareproudofthecontributionsweareabletomaketothe

communitiesinwhichweoperate

Pages31and57

1(d) Human rights

Ourpoliciesandduediligencetoensuretheintegrityofour

supply chain

Page37

1(e) Anti-corruption and anti-bribery

Wehavezerotoleranceforcorruptionorbriberyandthisis

setoutinourCodeofEthicalConduct

Page36

2(a) Business model

OurBusinessModel Page14

2(d) Principal risks

OurPrincipalRisks

Ourapproachtoriskmanagement

Page44

Page42

2(e) Non-financial key performance indicators

Ourprimarynon-financialkeyperformanceindicators Page17

Sections 414CA and 414CB of the Companies Act 2006 require us to disclose certain information

to allow readers to understand our development, performance and position and the impact of our

activities. These are set out below, with references to further disclosure throughout this report

asappropriate.

Forfurtherdetailsonoursustainabilitypoliciesanddisclosures,seeourwebsite

www.pzcussons.com/sustainability

PZ Cussons plc / AnnualReportandAccounts2024 / Strategic Report

Section 172(1) Statement

CREATING A DIALOGUE

WITH OUR STAKEHOLDERS.

OUR APPROACH TO DOING BUSINESS IS FOUNDED ON THE PRINCIPLE OF CREATING

SUSTAINABLE VALUE FOR ALL OUR STAKEHOLDERS.

WebelievethatPZCussonsthrivesinthelongtermwhentheinterestsofdifferentstakeholdersarebalancedsothattheyallshareinour

success.Itisthereforeimportantthatwefullyunderstandallstakeholders’priorities,expectationsandconcerns.

THE IMPACT OF STAKEHOLDER ENGAGEMENT ON BOARD DECISION-MAKING

Wemakeuseofvariousengagementchannelstoreceiveinformativefeedbackfromourkeystakeholderswhichcanbefactoredintoour

principaldecisionsandactivities.

Section 172(1) of the Companies Act 2006 (Section 172(1)) requires a director of a company to act in the way that he or she

considers, in good faith, would most likely promote the success of the company for the benefit of its members as a whole.

ThetablebelowsetsoutwhereyoucanreadmoredetailinthisAnnualReportandAccountsonhowtheBoardhasdischargeditsSection

172(1)dutythisyear.TheDirectors,bothindividuallyandcollectively,believetheyhavegivendueregardtothestakeholdersandmatters

setoutinSection172(1)(a)to(f)aslistedbelow:

Section 172(1) factor (a) to (f) Relevant disclosures Page number or website

(a) consequence of any decision

in the long-term

• Companyvalues

• OurBusinessModel

• Ourstrategy

• Boardactivity

Page23

Page14

Page6

Page70

(b) the interests of the company’semployees

• Peopleandculture

• Diversityandinclusion

• EnvironmentalandSocialImpactCommitteeReport

• Boardactivity

Page22

Page26

Page90

Page70

business relationships with suppliers,

customers and others

• SustainabilityReport

• ModernSlaveryStatement

• Boardactivity

Page28

Page37andwebsite

Page70

(d) the impact of the company’s operations

on the community andtheenvironment

• SustainabilityReport

• ModernSlaveryStatement

• Boardactivity

• Palm oil promise

Page28

Page37andwebsite

Page70

Page35andwebsite

(e) the desirability of the company

maintaining a reputation for high

standards of business conduct

• ModernSlaveryStatement

• CodeofEthicalConduct

Page37andwebsite

Page36andwebsite

(f) the need to act fairly as between

members of the company

• Shareholderengagement

• AGM

• RemunerationPolicy

• Votingrights

Page57

Page69

Page98

Page123

STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATIONADDITIONAL INFORMATIONFINANCIAL STATEMENTSGOVERNANCE

Section 172(1) Statement continued

Why We Engage

Key Priorities

How The Group

Engages

Board Activity/

How The Board

Engages

Strategic Objective

Priorities For

The Year Ahead

• Toensureloyaltyandtrust

• Tocontinuedelightingconsumers

• Tohelpourportfoliotowin

• Tocreateenthusiasticconsumersand

advocatesforourbrands.

• Environmentalsustainabilityandtransparency

in the supply chain

• Customerservice

• Accesstoourproductsthroughdigitalchannels

• Valueandcosts.

• Strategicpartnershipwithkeycustomers:

– shopperinsights

– proposingpromotionsandproducts

– assistingwithdevelopingstrategies.

• Market research

• Socialmedia

• Directfeedback

• Salesdata.

• Visitallmarketsandmeetwithcustomers

andconsumersonanadhocbasisduring

site visits

• TheBoardreceivesregularmarketreviews

frombusinessunitleadershipteams

• Reviewingcustomerservice,consumer

insightsanddataaspartofmonitoring

businessperformance.

• Toimproveouroperationaldashboard

tofacilitatetheBoard’soversightofhow

weservecustomersandconsumersand

continuetoincreasehouseholdpenetration.

• Successionplanningandensuringarobust

talentpipelineofdiversetalentthroughout

the Group

• TocontinuetoworkwithExecutiveCommittee

todefineourDiversity,EquityandInclusion

strategyandimplementationplans.

• Tocreateasupportiveenvironment,where

everyonefeelsvaluedandliketheybelong

• Tovalueideasequally

• To maintain an open culture

• Tofostergenuinelyopencommunication

• Todevelopengagedemployeesandunlock

theirpotential

• Toincreaseproductivityandperformance

throughanengagedworkforce.

• Strategy

• Purposeandvalues

• Safetyandwellbeing

• Careerdevelopment,learningandleadership

• Waysofworking.

• Localandglobal‘TownHall’meetings

• FunctionalTeamscalls

• Leadershipevents

• StrategyDeploymentevents.

• KirstyBashforthisourdesignatedNon-

ExecutiveDirectorforemployeeengagement,

withaspecificmandatetoensuretheBoard

hearsandunderstandstheemployeevoice

• OurDirectorstraveltoourmarketswhen

possibleandholddedicatedemployee

engagementsessionsonsuchtrips.

Customers and Consumers Employees

The following table shows how our stakeholders are integral to delivering our strategy. We have grouped our

stakeholders into five key categories and provided an overview of why we value them, the key priorities to our

stakeholders and the ways in which the Group, and the Board in particular, have engaged with them during this

financial year.

PZ Cussons plc / AnnualReportandAccounts2024 / Strategic Report

• Toensureoursupplierrelationships

remainaslong-termpartnerships

• Tocreateandsustainrobust,lasting

andmutuallybeneficialrelationships.

• Toensurestable,long-termandmutually

beneficialrelationships

• Nottoincreasecosts

• Toensureproductandservicequality

• Tobeinnovative.

• TheBoardengagesviaadedicated

procurementfunction

• TheBoardensuresopen,

dynamiccommunication.

• TheCFOreviewspaymentpractices

andpoliciesandmonitorstrendsin

theCompany’sperformancetwice

yearly,reportingtotheAuditand

RiskCommittee

• CEOandCFOengagedirectlywith

distributorsandsuppliers.

• Itisofutmostimportancethatwe

developgoodrelationswiththelocal

communitieswhereweoperate

• Tomakeapositivecontribution

to society

• Tominimiseanynegativeimpactsfrom

ouroperations.

• Toreducetheenvironmental

impactofourproducts

(packagingandformulation)

• Toreduceourcarbonemissions

• Tobeawareofcost-of-livingand

livingstandards

• Toengageemployeesandhavea

positiveimpactonlocalcommunities.

• Wehaveestablishedkeycharity

partnershipsinourbusinessunits

• Thesepartnershipsarealignedtoour

corporatepurposeandbrands

• Employeeengagementisencouragedto

optimiseimpactonourlocalcommunities.

• TheBoard’sEnvironmentalandSocial

Impact(ES)Committeeisresponsiblefor

sustainabilityanditsdirectionoftravel

• TheESCommitteeapprovedthe

environmentalandsocialimpact

framework‘Betterforall’.

Distributors and Suppliers Communities

• Tounderstandtheirinvestment

objectivesandgoals

• Topursueourstrategicobjectives

• TohelpmovetheCompanyforward.

• Todebateandsetthenextphaseof

ourstrategyfocusingonstrategic

growthoptionsandthejourney

fromturnaroundtotransformation.

• ToimproveBoardmaterialsanddata

presentationtofacilitatetheBoard’s

oversightofoperationalperformance

ensuringweareservingourcustomers

andoptimisingoursupplychain

• TocontinuetoworkwithExecutive

Committeetodriveoursupplychain

transformationprogramme.

• ToencourageBoardtraveltoour

prioritymarketstoengagewithour

Communitystakeholders

• TocontinuetheESCommittee’swork

progressingtheSustainabilityprogramme

• Continuetoensurethatthevoiceof

ourcommunitiesarereflectedinBoard

deliberationsanddecision-making.

• Financialandoperatingperformance

ofthebusiness

• Purpose,valuesandcultureof

thebusiness

• Risksandopportunities

• Long-termsustainableand

profitablegrowth

• Sustainabilityissues

• Capitalallocationdecisions

• Goodgovernance.

• Q&Asessionsandroadshowsforour

majorshareholders

• Adhocinvestorevents

• OurAnnualGeneralMeeting(AGM)isan

opportunitytolistentoourshareholders

andrespondtoanyconcernstheymayhave

orperspectivestheymaywishtoshare

• OurdedicatedInvestorRelations

Directorwhosepurposeisto

strengthenourengagementwith

the investment community.

• TheChairandourExecutive

Directorsperiodicallymeetwith

ourmajorshareholders

• TheCEOandCFOdeliverthe

Group’sinterimandfinalresults,

withpresentations

• OurBoardmembersandourCompany

SecretaryattendtheAGM

• TheChair,theSeniorIndependent

DirectorandtheCompanySecretary

areavailableatalltimestohearany

concernsraisedbyshareholders.

Investors

LINK TO STRATEGY

Build Brands Serve Consumers Reduce Complexity Grow SustainablyDevelop People

STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION

Section 172(1) Statement continued

Our stakeholders are

integral to delivering

our strategy.

It is important that we

considerhow our decision-

making affects them.

Customers and

Consumers

Distributors

and Suppliers

Employees

Communities

Investors

PZ Cussons plc / AnnualReportandAccounts2024 / Strategic Report

PRINCIPAL DECISIONS IN FY24

TheBoardconsidersallitsdutiesundertheCompaniesAct2006includingSection172(1)factors(a)to(f)andmanyotherfactorsin

allofthedecisionsitmakes.Principaldecisionsareexplicitlyframedinthecontextoftheinterestsofandimplicationsforallaffected

stakeholders.InFY24,theBoardcontinuedtoreceivepapersthatincludedasummaryofstakeholderslikelytobeimpactedbythe

mattertobediscussedandanydecisionstobemade.

Thefollowingdemonstrateshowthesematterswereconsideredinthreekeydecisionstakenthisyear.

Principal decision 1: Portfolio choices

Thisyear,wehavemadefurthersignificantstrategicprogressinsimplifyingourbusiness.TheBoardconductedastrategicreviewof

ourbrandsandgeographiesandcommencedplanstotransformourportfolio,refocusingonwherewecanbemostcompetitive.The

conclusionofthereviewwasthattheGroupistoocomplexforitssize,withfinancialandhumanresourcesspreadacrosstoomany

brandsandproducts,therebyreducingtheabilitytocompetewithlargemultinationalcompanies,andsomefocused,smallerones.

Asaresult,thedecisionwasmadetoselltheSt.Tropezbrand.Thisprojecthascommencedandisintheearlystages.

In making the decision, we considered:

The long-term effect

TheSt.Tropezbrandhasgrownsignificantlysinceitwasfirstacquired.Thereremainsfurtherlong-termgrowthpotentialanditisintendedthat

asaletoanewowner,thatisbetterpositionedtomaximisethebrand'spotential,willfurtherunlockthelong-termpotentialofthebrand.For

PZCussons,thedecisiontorefocustheportfolioonwherethebusinesscanbemostcompetitivewillbettersupportouraimtosupportlong-

termsustainablegrowthandcreatevalueforshareholders.TherewillbeagreaterfocusontheMustWinBrandstoincreasebrandinvestment

andimprovereturns.

Affected stakeholder groups

Customers and consumers

St.Tropezhasestablishedaleadingpositioninitskeypremiumself-tanningmarketoftheUS.Thedecisiontosellthebrandisdrivenbyits

impactoncustomersandconsumers.Thedisposalwillallowforlong-termgrowthpotentialintheUS,aswellasinnewgeographicalareasand

relatedproductcategories.Consideringthestrengthofthebrand'sequity,significantpotentialremains.However,achievingthisgrowthunder

ourcurrentownershipischallengingduetoallocationofresourcesacrossproductcategories.Thedecisionhasbeenmadetosellthebrand

inthebestinterestsofcustomersandconsumers.Moreover,proceedsfromthesalecan,inpart,beappliedtoimprovingourservicesand

performanceforexistingandnewcustomersandconsumersinourcoremarketsandcategories.

Employees

TheBoardcarefullyexaminedplansforhowtomanagetheimpactedemployees.Communicationactivitywasputinplaceandonthedayof

theannouncementourCEOhostedaglobalTownHallforallemployees.Thisprovidedaforumfortherationalebehindthedecisiontobe

explainedandforanyquestionstoberaised.

Investors

Ourinvestorswantimprovedfinancialperformanceandlong-termsustainablegrowth.Theactionswearetakingwillcrystallisevalueforour

investorsfromassetsbettersuitedtoalternativeownershipstructures.Thiswillenableustoinvestourresourcesinthekeygeographiesand

categoriesinwhichwecanwinandgeneratesuperiorreturns.WearetransformingPZCussonsintoabusinesswithstrongerbrandsinamore

focusedportfolio,deliveringsustainableprofitablegrowth.

Distributors and suppliers

Ourpartnersarecrucialtous,soweareensuringthatatransitionplanisinplace.Communicationwithoursuppliersanddistributorsanda

detailedmigrationplanarekeypartsoftheplanningprocessaroundthisproject.

The environmental impact

Simplifyingourbusinessandoperationswillsupportoursustainabilitystrategybyreducingtheenvironmentalimpactofouroperationsandour

carbonfootprint.

The impact on our reputation and the need to act fairly

ThecontinuedcommitmenttosimplifyingourbusinessandoperationsandbuildingourMustWinBrandsshowsourcommitmenttothe

agreedstrategy.

STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION

Section 172(1) Statement continued

Principal decision 2: Change to interim dividend

InconsideringtheFY24interimresultsandthepaymentofapotentialdividend,theBoarddeterminedthatanFY24interimdividendbepaid

of1.50p.Thiswasa44%reductionontheFY23interimdividendandwasannouncedwiththeFY24interimsresultsinFebruary2024.

ForfulldetailsofthetotaldividendsinyearseetheReportoftheDirectorsonpage 120

In making the decision, we considered:

The long-term effect

Inlightoftheverychallengingmacro-economiccircumstancesofthedevaluationoftheNaira,theBoardconsidereditaprudentstepto

reducetheFY24interimdividend.TheBoardconsideredthelong-termeffectsofthisdecisionanditsimpactonvariousstakeholdergroups.

Affected stakeholder groups

Investors

Wecreatevalueforinvestorsbygeneratingstrongandsustainableresultsthatwillenabledividendstobepaid.Ourinvestorsalsowantlong-

termsustainablegrowth.Afterdueconsiderationofthedividend,theBoarddetermineditwouldbeprudenttoreducetheinterimdividend.

Employees

ThedividenddecisionwasannouncedintheFY24interimresults.Whileouremployeesarenotdirectlyaffectedbythisdecision,werecognise

theimportanceofmaintainingopencommunicationandfosteringapositivecompanyculture.Assuch,ourCEOissuesglobalcommunications

toallemployeesfollowingthereleaseofinterimandfull-yearresults,summarisingthecontentandensuringthatouremployeesare

keptinformed.

Customers and consumers

Ensuringongoingstrategicinvestmentinourbusinessandlong-termsustainablegrowthenablesustocontinuetobuildanddeliverour

portfolioofbrandsandproductsandbetterserveourcustomersandconsumers.

Community

ThefoundingZochonisfamilyremainmajorshareholdersinPZCussons.SirJohnZochonisfoundedtheZochonisCharitableTrust(theTrust)in

1977tosupportcharitiesoperatingprimarilyintheNorthWestofEngland,closetotheManchesterheadquartersofPZCussons.Thisremains

theprincipalfocusoftheTrustwithimportantsupportalsobeinggiventocharitiesoperatinginGhanaandSierraLeone.TheZochonisfamily

managestheTrustindependentlyfromtheCompanyusingdividendsfromitsPZCussonsshareholdingtofunditscharitabledonations.The

BoardwasmindfuloftheimpactofareduceddividendontheTrust'sincome.However,theBoarddeterminedthatthereductionwastheright

decisioninthecontextoflong-termsustainablegrowthforallshareholdersandinvestors.

Areductioninthedividendwouldnothaveasignificantimpactonthelocalcommunityotherwise.TheCompanyremainscommittedto

supportingthecommunitythroughitsvariousinitiativesandprogrammes.

The environmental impact

Long-termsustainablegrowthisvitaltothesuccessfulsupportofourenvironmentalandsocialimpactframework.

The impact on our reputation and the need to act fairly

TheCompanyisnotrequiredtohaveaformaldividendpolicy.TheBoarddeterminesthepaymentandlevelofdividendbasedonaffordability

andsufficiencyofdistributablereserveswhilecarefullyconsideringwhatisreasonableandalternativescenarios.TheBoardisconcernedwith

findingtheoptimalbalancebetweengeneratingvalueandreturnforourshareholders,whilealsoensuringthesustainabilityandlong-term

successofthebusiness.

PZ Cussons plc / AnnualReportandAccounts2024 / Strategic Report

Principal decision 3: Creation of a combined UK and Ireland business unit

WesawafundamentalchangetoourorganisationalstructureinFY24astheUKbusinesswasreorganisedandsimplifiedintothecreation

ofonecombinedUKandIrelandbusinessunit,incorporatingourPersonalCareandBeautyteams.TheBoardwaspleasedtosupport

thisworkandreceivedregularupdateswhichsawtheappointmentofoneleaderacrossthecombinedUKbusinesscomparedtothe

previouslyseparatePersonalCareandBeautyapproach.Adedicatedteamwasalsocreatedtofurtherstrengthenouroverallbrand-

buildingandinnovationcapabilities.

In deciding to create a new combined UK and Ireland business unit, we considered:

The long-term effect

Thiswasafurthersuccessfulstepinourstrategytoreducecomplexityandbuildahighergrowth,highermargin,simplerandmoresustainable

business,allowingustooperatemoreefficientlyandengagewithourretailcustomersmoreeffectively.

Affected stakeholder groups

Customers and consumers

Ourcustomersandconsumersareatthecoreofourstrategy.Ourambitiontocreate‘onefacetothecustomer’hasbeenakeystepinour

strategicactivity.IncommonwithourSupplyChainTransformationprogramme,thesimplificationworktocreateoneUKbusinessunitenables

ustolookforopportunitiestoscaleandremoveunnecessarycoststhatourcustomersandconsumersdonotvalue.

Employees

TheBoardcarefullyreviewedplansformanagingimpactedemployees.Acommunicationplanwasimplementedtoensureregulardialogue

betweenleadersandimpactedcolleagues.Whererelevant,othercolleaguesintheGroupwerenotifiedofthechanges,sothatthey

understoodwhytheywerehappeningandweregiventheopportunitytoaskquestions.

Investors

Ourinvestorsarefocusedonachievinglong-term,sustainablegrowth.Thedecision-makingprocessconsideredtheannualisedbenefitsarising

fromtheformationofacombinedbusinessunit.

Distributors and suppliers

Wepartnerwithlargeretailerstogrowourbusinessandtheirs.Thechangetoourstructurehasprovidedmoresimplifiedoperationsforour

retailcustomerswithasinglebusinessunittosupportourdriveforcategorygrowthandsalestoourmutualbenefit.

The environmental impact

Deliveryofoursustainabilityambitionsarecentraltoourstrategyandoperationalactivitiesanddecisions.ThecreationofacombinedUK

andIrelandbusinessunitisafurtherstepinoursimplificationandtransformationactionswhichwillassistinthedeliveryofamorefocused

sustainabilityagenda.

The impact on our reputation and the need to act fairly

TheBoardconsideredtheplansandtheinterestsofstakeholdersthroughout,cognisantofthecommitmenttostrategyandourvalues.The

creationoftheUKbusinessunitdemonstratesthestrengthofourcommitmentsandoverarchinggoalofsustainableprofitablerevenuegrowth.

STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION

PZ Cussons plc / AnnualReportandAccounts2024 / Governance

64 Our Board

66 Our Executive Committee

68 Chair’s Introduction to Governance

70 Board Activity at a Glance

72 Corporate Governance Statement 2024

80 Nomination Committee Report

84 Audit and Risk Committee Report

90 Environmental and Social Impact Committee Report

92 Remuneration Committee Report

98 Remuneration Policy

107 Report on the Directors’ Remuneration

120 Report of the Directors

CORPORATE

GOVERNANCE

STRATEGIC REPORT GOVE R NANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION

Male

Female

0–3 years

4–7 years

Asian/Asian British

White British

8-9 years

Mixed/Multiple

Gender

diversity

Tenure

Ethnic

background

62.5%

37.5%

62.5%

25.0%

12.5%

62.5%

25.0%

12.5%

Our Board

A DIVERSE AND

EXPERIENCED BOARD.

Committees

AuditandRiskCommittee

NominationCommittee

RemunerationCommittee

DesignatedNon-Executive

Directorforemployee

engagement

Executive

EnvironmentalandSocial

ImpactCommittee

Chair

Allfiguresareasatthedateofthis

AnnualReportandAccounts.

Other

David Tyler

Non-Executive Chair

Kirsty Bashforth

Non-Executive Director

Jonathan Myers

Chief Executive Officer

Jitesh Sodha

Non-Executive Director

Sarah Pollard

Chief Financial Officer

John Nicolson

Senior Independent Director

Valeria Juarez

Non-Executive Director

Vivek Ahuja

Non-Executive Director

PZ Cussons plc / AnnualReportandAccounts2024 / Governance

David Tyler

Non-Executive Chair

Appointed: 2022

Skills & experience:DavidTylerjoinedthePZCussons

BoardasaNon-ExecutiveDirectorin2022,becoming

ChairinMarch2023.Hisbusinessexperiencespans

theconsumer,retail,businessservicesandfinancial

servicessectors.Hisexecutivecareer(1974to2006)

wasspentinfinancialandgeneralmanagementat

Unilever,NatWest,Christie’sandGUS.Since2007,he

hashadanon-executivecareer,chairingSainsbury’s,

Logica,Hammerson,3iQuotedPrivateEquity,the

WhiteCompany,ImagrandHampsteadTheatre.He

hasalsobeenaNon-ExecutiveDirectoratExperian,

Burberry,ReckittBenckiserandRubix.Davidcurrently

chairsDomestic&General,JoJoMamanBébéandthe

Government-backedParkerReviewonethnicdiversity

inUKbusiness.

Other appointments:

• DirectorandChairofDomestic&GeneralLimited

• DirectorandChairofJoJoMamanBébéLtd.

Kirsty Bashforth

Non-Executive Director

Appointed: 2019

Skills & experience: Kirstyisanexperienced

remunerationcommitteechairandholdsspecific

expertiseinorganisationalcultureandchange

management.Inherexecutivecareerofmorethan

30years,sheiscurrentlyChiefPeople&Culture

OfficeratDelinianTradingLtd,havingcompleted

athree-yearassignmentasChiefBusinessOfficer

atDiaverumAB,and24yearsatBPplcinsenior

executivepositions,includingGroupHeadof

OrganisationalEffectivenessandleadingthestrategic

coordinationofthecompany’sglobalB2Bbusiness.

KirstyalsochairstheCorporateResponsibility

CommitteeatSercoGroupplc.

Other appointments:

• Non-ExecutiveDirectorofSercoGroupplc(Chair

oftheCorporateResponsibilityCommittee)

• Chair,TheNorthernSuperchargersLtd.

Jonathan Myers

Chief Executive Officer

Appointed: 2020*

Skills & experience:Jonathanisanexperienced

FMCGexecutive,havingworkedforanumberofwell-

knownglobalbrandedconsumergoodsbusinesses

acrossarangeofcategoriesincludingbeauty,personal

care,homecareandfood.PriortojoiningPZCussons,

hewasChiefOperatingOfficeratAvonProductsInc,

withoverallresponsibilityforsupplychain,marketing,

digital,researchanddevelopmentandITfunctionsand

wasacorememberoftheexecutiveteamdelivering

asuccessfulturnaroundofthebusiness.Hespent

thefirst21yearsofhiscareeratProcter&Gamble,

workingacrossawiderangeofcategorieswith

extensiveexperienceindevelopedanddeveloping

markets,progressingtoGeneralManager,oralcare

andfemininecarefortheGreaterChinaRegion.He

hasalsoheldseniorleadershippositionsattheKellogg

Company,servingasManagingDirector,UKand

IrelandandalsoVicePresident,Europeanmarkets.

Jitesh Sodha

Non-Executive Director

Appointed: 2021

Skills & experience:JiteshSodhaisanexperienced

FTSEdirector.JiteshwasmostrecentlyChiefFinancial

OfficeratSpireHealthcareGroupplc,wasChairof

theSustainabilityCommitteefrom2018to2024,

andsatontheDisclosureCommittee,Executive

CommitteeandSafety,QualityandRiskCommittee.

Priortothat,JiteshwasChiefFinancialOfficerat

DeLaRuebetween2015and2018,andatGreenergy

International,MobileStreams,whereheledtheir

IPO,andT-MobileInternationalUK.

Vivek Ahuja

Non-Executive Director

Appointed: 2024

Skills & experience:Vivekisaglobalbusinessleader

withover30yearsofseniorgeneralmanagement

experienceininternationalfinancialservicesandprivate

equity.Inhisexecutivecareer,hewasmostrecently

CEOofTerraFirma,aleadingEuropeanPrivateEquity

firmandpriortothatDeputyGroupCFOatStandard

Charteredplc.Heisanexperiencednon-executive

directorandcurrentlychairstheRiskCommitteeat

NatWestMarketsplcandservesontheCouncilatKings

CollegeLondon.Withextensiveboardandchairrolesas

anInvestorDirector,Vivekbringsawealthofstrategic

andfinancialexpertisetomultisectorbusinesses.

Other appointments:

• Non-ExecutiveDirectorofNatWestMarketsplc

(ChairoftheRiskCommittee).

Sarah Pollard

Chief Financial Officer

Appointed: 2021*

Skills & experience:SarahjoinedPZCussons

fromNomadFoods,Europe’sleadingfrozenfood

company,wheresheservedasDeputyChiefFinancial

Officer.Priortothat,shewasChiefFinancialOfficer

fortheirBirdsEyebusiness.Sarahisachartered

managementaccountant,havingqualifiedwith

PricewaterhouseCoopers,andsubsequentlyworked

ininvestmentbanking,specificallyinmergersand

acquisitionsatDeutscheBank.PriortoNomadFoods,

Sarahheldanumberofseniorfinancepositions

atDiageo,TescoandUnilever.Shehasworkedin

commercial,operationalandcorporatefinanceroles

includinginvestorrelationsandsobringswithhera

deepunderstandingofcreatingshareholdervaluein

theconsumergoodssector.

John Nicolson

Senior Independent Director

Appointed: 2016

Skills & experience:Johnhassignificantexperience

ofglobalconsumergoodsforbothdevelopedand

emergingmarkets.Hisearlycareerinmarketingand

saleswasspentatICI,UnileverandFostersBrewing

Group,thenincorporatedevelopmentandgeneral

management.HewasaplcboardmemberatScottish

&Newcastleplc,RegionalPresidentAmericasand

ExecutiveCommitteememberatHeinekenNVand

morerecentlyChairofAGBarrplc.Hehasalsoheld

thepositionsofSeniorIndependentDirectoratStock

SpiritsGroupplc,ChairmanatBaltikaOAO,Deputy

ChairmanatCCUSA,DirectoratUnitedBreweries

LtdIndia,Non-ExecutiveDirectoratNorthAmerican

Breweries,andmemberoftheEdinburghUniversity

BusinessSchoolAdvisoryBoard.

Valeria Juarez

Non-Executive Director

Appointed: 2021

Skills & experience:Valeriaisaninternational

businessleaderwithafocusondigital,brand-

buildingandbusinesstransformation.Overthelast

27years,shehasworkedforbothdevelopedand

emergingmarketsatRalphLauren,Amazon,Diageo,

BostonConsultingGroupandProcter&Gamble.She

hasextensiveexperienceofgeneralmanagement,

digital,strategy,commercial,innovationand

marketingcoveringbrandedconsumergoods,

fashionandonlineretailing.SheistheformerSVP

ofdigitalcommerceforRalphLaurenInternational.

Directors’ core areas of expertise

• UKinstitutionalshareholders • Retailexperience • M&A,strategicpartnerships

• Recentfinancialexperience • Africaexperience • M&Aintegration

• Remunerationexperience • South-EastAsiaandANZexperience • Businesstransformation

• Chairskills • Entrepreneurialexperience • E-commerce

• Mentoringandcoachingskills • Operationalexperience • Salesandmarketing

• Sectorexperience • Strategy

* AllDirectorswereindependentonappointmentexceptforJonathanMyersandSarahPollard.

STRATEGIC REPORT GOVE R NANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION

Our Executive Committee

Sarah Pollard

Chief Financial Officer

Appointed to current role: 2021

Jawaz Illavia

Chief Information Officer

Appointed to current role: 2023

Robert Spence

Managing Director – UK & Ireland

Appointed to current role: 2024

Steve Noble

Chief Supply Chain Officer

Appointed to current role: 2021

Ningcy Yuliana

Managing Director – PZ Cussons

Indonesia

Appointed to current role: 2023

Jonathan Myers

Chief Executive Officer

Appointed to current role: 2020

Oghale Elueni

Managing Director – Africa

Consumer Business

Appointed to current role: 2023

Alastair Smith

Managing Director – ANZ

Appointed to current role: 2022

Cath Bailey

Chief People Officer

Appointed to current role: 2023

Kareem Moustafa

General Counsel and

Company Secretary

Appointed to current role: 2024

Dimitris Kostianis

Transformation Leader, and Chief

Executive Officer – PZ Cussons

Nigeria Plc

Appointed to current role: 2023

Paul Yocum

Chief Growth and Marketing Officer

Appointed to current role: 2024

PZ Cussons plc / AnnualReportandAccounts2024 / Governance

STRATEGIC REPORT GOVE R NANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION

Chair’s Introduction to Governance

DEAR SHAREHOLDER

ItistheresponsibilityoftheBoardtoestablishandupholdhigh

standardsofcorporategovernancebysettinganappropriatetone

fromthetop.IampleasedtopresentthisGovernanceReportfor

theyearended31May2024onbehalfoftheBoard.

Ithasbeenabusyandchallengingyearwithsignificantstrategic

progressmade,forexampleinthecreationofonecombinedUK

andIrelandbusinessunitwhichsupportsourstrategytobuilda

simplerandmoresustainablebusiness.However,therehavealso

beensignificantchallengesinourmarketswhichwediscussinthe

StrategicReport.

Weannouncedon18September2024thatJohnNicolsonwill

beretiringfromtheBoardofDirectorsandnotstandingfor

re-electionattheAGMon21November2024.Onbehalfof

theBoard,IwouldliketothankJohnforhisverysignificant

contributiontotheCompanyovereightandahalfyears.

HehasbeenavaluedBoardDirectorandhehasalsoserved

asSeniorIndependentDirectorformorethansevenyears.

WewishJohnallthebestforthefutureandwethankhimvery

muchforhisservice.Wewillmisshiswitandhiscourtesyaround

theBoardtable.

Wealsoannouncedon1December2023thatJeremyTownsend

wassteppingdownbecauseheneededtoconcentrateonhis

executivecommitmentsatMarksandSpencerGroupplcwherehe

hasbeenservingasCFOinrecentyears.Iwouldliketoexpressmy

gratitudeforhiscommitmenttotheCompanyoverhisfouryears

ontheBoardandfortheclarityofhisthinkingandadviceover

thisperiod.

IdrawattentionasfollowstokeyareasoffocusfortheBoard

duringtheyear.

BOARD EFFECTIVENESS

AninternalreviewoftheeffectivenessoftheBoardandits

Committeeswasconductedduringtheyear.Thisconcluded

thattheBoardworkedwellbutopportunitieswereidentified

forfurtherimprovement,asdetailedinthe2024Boardand

Committeeevaluationonpage83.Effectivegovernanceiscrucial

forthesuccessofpubliclytradedcompanies,andtheBoard

recognisesthatitsownefficiencyplaysacentralroleinachieving

this.IcanalsoconfirmthateachDirector’sperformancecontinues

tobeeffectiveandthattheydemonstratedahighlevelof

commitment to their roles.

BOARD COMPOSITION AND SUCCESSION PLANNING

TheBoardiscomposedofaNon-ExecutiveChair,ChiefExecutive

Officer,ChiefFinancialOfficerandfiveindependentNon-Executive

Directors.Wewillcontinuetofocusthisyearonsuccessionplanning

fortheBoardandparticularlyfortheExecutiveCommittee.

FormoreonBoardeffectiveness,Boardchangesinthelastyearandplans

forthefuture,seetheNominationCommitteeReportonpage 80

EFFECTIVE GOVERNANCE AND A STRONG BOARD ARE

ESSENTIAL FOR THE LONG-TERM SUCCESS OF OUR

ORGANISATION. WEHAVE AWELL-FUNCTIONING BOARD

WITHA DIVERSE RANGE OF SKILLS AND PERSPECTIVES.

PZ Cussons plc / AnnualReportandAccounts2024 / Governance

BOARD COMMITTEES

OurBoardCommitteeshavefocusedonkeyactivitiesundertheir

remitasfollows:

• TheAuditandRiskCommitteeoversawtheonboarding

ofPricewaterhouseCoopersLLP(PwC)followingtheir

appointmentasourGroupauditors.Inaddition,theCommittee

continuedtoreviewprogressagainstourmulti-yearcontrols

improvementjourney

• TheRemunerationCommitteehasappliedthenewDirectors’

RemunerationPolicywhichwasapprovedbyshareholdersat

the2023AnnualGeneralMeeting(AGM)

• TheEnvironmentalandSocialImpact(ES)Committeehas

continuedtomakeprogressinoursustainabilityjourneyand

approvedtheCompanyjoiningtheUNGlobalCompact

• TheNominationCommitteehascontinuedtofocuson

successionplanning.

DIVERSITY, EQUITY AND INCLUSION

TheBoardwaspleasedtoapprovetheCompany’sDiversity,

EquityandInclusion(DEI)strategythisyear.Diversityremainsa

priorityfortheBoardandwearecommittedtocreatingabusiness

environmentwhereeveryonefromeverybackgroundcanthrive

andfeelwelcome.DEIinfluencestheorganisation’scultureand

theeffectivenessofdecision-makingbymanagement.

ThereisalsoanInclusionandDiversityPolicyforBoardand

ExecutiveCommitteeappointmentswhichisavailableinfull

ontheCompany’swebsite.

STAKEHOLDER ENGAGEMENT

TheBoardregularlyengageswithshareholderstohelpinform

strategicdecision-makingandtounderstandtheirviews.

Throughouttheyear,theBoardreceivedupdatesonshareholders,

includingtheirfeedbackandkeyareasoffocusandviews.

StakeholderfeedbackiscriticaltotheBoard,influencingits

decision-making.TheChairoftheBoardandtheCommittee

Chairsareavailabletoshareholderstorespondtoquestions.

Directorsseekopportunitiestoengage,whetherinpersonatthe

AGMorothershareholderengagementevents,orthroughour

InvestorRelationsteamreachingouttokeyshareholders,offering

meetingsonrelevanttopics.

Formoreondialoguewithourstakeholders,seepage 55

OUTLOOK

Inthecomingyear,theBoardwillcontinuetooverseethe

Company'sperformanceanditsstrategy,inparticularonthe

planstofocusonfeweractivities.

THE ANNUAL GENERAL MEETING

OurAGMthisyearwillbehostedattheCompany’soffices,

ManchesterBusinessPark,3500AviatorWay,Manchester,

M225TGon21November2024.Togetherwithmyfellow

Directors,IlookforwardtomeetingshareholdersatourAGM.

Wewillwelcomeyourfeedbackonthatoccasionand,indeed,

atanytimeduringtheyear.

David Tyler

Non-Executive Chair

18September2024

2024 FOCUS AREAS.

Strategic

review

DEI

strategy

UN Global

Compact

Auditor

onboarding

Succession

planning

Remuneration

Policy

implementation

STRATEGIC REPORT GOVE R NANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION

Board Activity at a Glance

ServeConsumers ReduceComplexity

Link to

strategy

BuildBrands

GrowSustainablyDevelopPeople

STRATEGY

Board matters discussed Stakeholders affected Link to strategy

FY24 Strategy day

• Portfoliotransformation

• Organicgrowth

• M&Aambitions

• Digitalcapabilities

• Sustainability

• Organisationaldesign

• Customers/Consumers

• Investors

• Communities–Environment

• Suppliers

Strategic review of brands and geographies • Customers/Consumers

• Investors

• Employees

• Communities

• Suppliers

ES strategy and frameworks • Communities

• Investors

• Employees

Diversity, Equity & Inclusion strategy • Employees

OPERATIONS

Board matters discussed Stakeholders affected Link to strategy

UK and Ireland business unit integration • Investors

• Customers/Consumers

• Suppliers

• Employees

Digital strategy • Customers/Consumers

• Employees

• Investors

Inlinewiththeannualrollingagenda,theBoardconsideredanumberoftopicsonaregularbasis.Theseincludedthefollowingstanding

agendaitems:

• Executivereports,includingoperationalandfinancialperformance,marketsummaries,healthandsafetyandothermatters

• Strategyandstrategicprojects

• ReportsfromeachBoardCommitteefollowingCommitteemeetings

• ReportsfromthedesignatedNon-ExecutiveDirectorforemployeeengagement

• Governance,complianceandlegalmatters.

Inadditiontothestandingitems,thematterssetoutbelowwereconsideredandapproved.

PZ Cussons plc / AnnualReportandAccounts2024 / Governance

FINANCE

Board matters discussed Stakeholders affected Link to strategy

Central costs and efficiencies • Investors

• Suppliers

• Employees

Results reporting, including Annual Report and Accounts • Investors

• Employees

Dividend payments • Investors

Principal and emerging risks • Investors

• Employees

• Community

Budget approval • Employees

• Investors

Group tax strategy • Investors

GOVERNANCE

Board matters discussed Stakeholders affected Link to strategy

Director appointment and reappointment and

Board composition

• Employees

• Investors

Shareholder communications including Annual

General Meeting

• Investors

Governance disclosures including Modern

Slavery Statement

• Employees

• Community

Board and Committees evaluation • Customers/Consumers

• Investors

• Communities–Environment

• Suppliers

Review of Board policies

Board reserved matters

Statement of Board responsibilities

Terms of Reference

• Investors

STRATEGIC REPORT GOVE R NANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION

Corporate Governance Statement 2024

ThisCorporateGovernanceStatementasrequiredbytheUKFinancialConductAuthority’sDisclosureGuidanceandTransparencyRules

7.2(DTR7.2),togetherwiththerestoftheCorporateGovernanceReportandtheCommitteeReports,formspartoftheReportofthe

DirectorsandhasbeenpreparedinaccordancewiththeprinciplesoftheFinancialReportingCouncil’sUKCorporateGovernanceCode

2018(the2018Code).Acopyofthe2018CodecanbefoundontheFinancialReportingCouncil’swebsite:www.frc.org.uk.

AdditionalrequirementsundertheDTR7.2arecoveredingreaterdetailthroughouttheAnnualReportandAccountsforwhichwe

providereferenceasfollows:

TheGroup’sriskmanagementandinternalcontrolarefoundonpage 87

InformationwithregardstosharecapitalispresentedintheReportoftheDirectorsfrompage 120

InformationonBoardandCommitteecompositioncanbefoundonpage 64

InformationonBoarddiversityincludingtheBoardInclusionandDiversityPolicycanbefoundonpage 81

TheCompany’sobligationistostatewhetherithascompliedwiththerelevantprinciplesandprovisionsofthe2018Code,ortoexplain

whyithasnotdonesouptothedateofthisAnnualReportandAccounts.TheCompanyhascompliedwiththeprinciplesandprovisions

ofthe2018Codeduringthefinancialyearended31May2024saveforthefollowing.Inrelationtoprovision24,themembershipofthe

AuditandRiskCommitteecomprisedoftwodirectorsduringtheperiodfrom28February2024to1May2024,howevernomeetingsof

theCommitteewereheldduringthisperiod.

ThefollowingpageswilloutlinehowtheCompanycomplieswiththeprinciplesandprovisionsofthe2018Code.Wheresupporting

informationisfoundoutsideoforinadditiontothisGovernanceReport,thepagereferenceisgiveninthetablesbelow.

BOARD LEADERSHIP AND COMPANY PURPOSE

Code Principle and Description Annual Report and Accounts Reference

A EffectiveBoard • NominationCommitteeReport

Seepage 80

B Purpose,strategy,values

andculture

• StrategicReport

Seepage 14

C Prudentandeffectivecontrols

andBoardresources

• StrategicReport–Howwemanagerisk

Seepage 42

D Stakeholderengagement • Creatingadialoguewithourstakeholders

Seepage 55

E Workforcepoliciesandpractices

• Non-FinancialInformationandSustainabilityStatement

• AuditandRiskCommitteeReport

Seepages 54 and 84

Effective Board

TheBoardunderstandsthatitsroleistoprovideleadershipandsetthepurpose,valuesandstandardsoftheCompanyandtheGroup.

PZCussons’strategyandbusinessmodelaresetoutonpages6and14oftheStrategicReportanddescribesthebasisuponwhichthe

Companygeneratesandpreservesvalueoverthelongterm.

TheCompanyisledbyaneffectiveandentrepreneurialBoard,whoseroleistopromotethelong-termsustainablesuccessofthe

Company,therebygeneratingvalueforinvestorsandcontributingtowidersociety.

AninternalBoardevaluationwascarriedoutinAprilandMay2024.

Formoreonthis,seetheNominationCommitteeReportonpage 83

DirectorshavetherighttoraiseconcernsatBoardmeetingsandcanaskforthoseconcernstoberecordedintheBoardminutes.

TheGrouphasalsoestablishedaprocedurewhichenablesDirectors,inrelevantcircumstances,toobtainindependentprofessional

adviceattheCompany’sexpense.

Board development and training

TheChairisresponsibleforleadingthedevelopment,andmonitoringtheeffectiveimplementation,oftrainingpoliciesandprocedures

fortheDirectors.Onappointment,eachDirectorreceivesaformalandtailoredinduction.Thereisalsoaprogrammeofongoingtraining

forDirectors.TheDirectorsarecommittedtotheirownongoingprofessionaldevelopmentandtheChairdiscussestrainingwitheach

Non-ExecutiveDirectoratleastannually.TheBoardundertakesacycleoftrainingonrelevantcorporategovernancemattersandmatters

relevanttooperationalandstrategicobjectives.TrainingistypicallyprovidedbytheCompany’sexternaladvisers.

PZ Cussons plc / AnnualReportandAccounts2024 / Governance

Stakeholder engagement

Werecognisetheimportanceofclearcommunicationandproactiveengagementwithallofourstakeholders.Duringtheyearunder

review,theBoardusedvariousengagementchannelstoreceivevaluablefeedbackfromourkeystakeholders.

FormoredetailsseeourSection172(1)Statement:Creatingadialoguewithourstakeholdersonpage 55

Shareholder engagement

Atthe2023AGM,theresolutiontoapprovetheDirectors’RemunerationPolicywaspassedwiththenecessarymajoritybutwithmore

than20%againstbyshareholders.Anupdatestatementwasprovidedtoshareholderson10May2024.ThePolicywasproposedafter

thoroughengagementandconsultationwithmajorshareholdersandtheBoard,andtheRemunerationCommitteewillkeepinmindthe

viewsexpressedbyshareholderswhenplanningfuturerenewalsofthePolicy.

STATEMENT OF ENGAGEMENT WITH EMPLOYEES

TheBoardrecognisesthatemployeeengagementistheresponsibilityofthewholeBoardandthatouremployeesareourbiggestasset.

TheBoardhasanapprovedplansettingoutagreedprinciplesonengagement,corethemestoaddressbasedonfeedbackfromthe

globalemployeesurveyandacalendarofeventstoensureengagementtakesplaceacrosstheyear,andacrossallmarkets.

Corethemesfortheyearhavebeen:

• Strategy,includingcultureandleadership

• ExecutiveDirectorremunerationanditsalignmentwithbroaderworkforceremunerationpolicies

• Employeesafetyandwellbeing

• Learningandcareers

• Diversityandinclusion.

Aswellastheglobalemployeesurvey,otherformsofengagementincluderegularTownHalls–bothgloballyandlocally,employee

engagementonexecutiveremuneration,designatedmarketvisitsbyNon-ExecutiveDirectors,Boarddinnerswithseniormanagement

andregularmeetingswithCultureAmbassadorswhoplayanimportantroleindrivingculturalchange.

Designated Non-Executive Director for employee engagement

Inlinewiththe2018Code,KirstyBashforthisourdesignatedNon-ExecutiveDirectorforemployeeengagementwithresponsibility

forensuringthattheBoardengageseffectivelywithourworkforce.

Engagement methods

• Attendedanumberofsessionsondifferentplatforms

• EngagementsincludedglobalTownHalls,globalInternationalWomen’sDayeventandsmallergroupsessions.

Workforce concerns

• Confidencearoundchange

• Reward,inflationandcostofliving.

FormoredetailsseePeopleandCulture:BoardPrioritisingEngagementonpage 27

Purpose, culture and values

Ourbusinessmodelisunderpinnedbyourpurpose,cultureandvaluesandthestrategythattheBoardhasset.TheBoardcontinues

tounderstand,monitorandassesstheCompany’sculturethroughvariousmethods,including:

• Employeeengagement:TheBoardreceivesanannualreportfrommanagementontheresultsoftheemployeeengagementsurvey

whichgivestheBoardinsightsintoworkforceexperiencesandconcerns,ensuringalignmentwithourculture,purpose,andstrategic

priorities.ThedesignatedNon-ExecutiveDirectorforemployeeengagementalsoprovidesregularreportstotheBoard

• Safety:TheBoardreceivesregularreportsonHealthandSafetythroughtheCEOReporttoeachBoardcycle

• Sitevisits:Directorsconductsitevisitsandexperiencetheculturefirsthandanddeepentheirunderstandingofourbusiness.

Recently,variousmembersoftheBoardhavevisitedourNigeriaandIndonesiabusinessesandinteractedwithemployees

• Policiesandprocedures:Practicesandprocessesareinplacetosupportourculture,coveringareaslikesustainability,ethicalconduct,

anti-bribery,andwhistle-blowing.Thesepoliciesarereviewedandupdatedasnecessary

• Whistle-blowing:TheBoardthroughtheAuditandRiskCommitteereviewsreportsagainsttheGroup’sCodeofEthicalConduct

includingfromtheGroup’swhistle-blowingfacilityandevaluatestheeffectivenessofthesearrangements.

STRATEGIC REPORT GOVE R NANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION

Corporate Governance Statement 2024 continued

STATEMENT OF ENGAGEMENT WITH OTHER BUSINESS RELATIONSHIPS

TheDirectorshaveregardfortheneedtofostertheCompany’sbusinessrelationshipswithsuppliers,customersandothers,andthe

effectofthatregard,includingontheprincipaldecisionstakenbytheCompanyduringthefinancialyear.

ThisstatementshouldbereadinconjunctionwithourSection172(1)Statement:Creatingadialoguewithourstakeholdersonpage 55,

theNon-FinancialInformationandSustainabilityStatementon page 54andBoardprincipaldecisionsonpage 59

DIVISION OF RESPONSIBILITIES

Code Principle and Description Annual Report and Accounts Reference

F Boardroles • OurBoard

Seepage 64

G Independence

• OurBoard

• NominationCommitteeReport

Seepages 64 and 80

H Externalcommitments • OurBoard

Seepage 64

I Boardefficiency:KeyBoardactivities • Section172(1)Statement

Seepage 55

Board roles

TheresponsibilitiesoftheChair,ChiefExecutiveOfficer,SeniorIndependentDirectorandBoardandBoardCommitteesareclear,setout

inwritingandregularlyreviewedbytheBoard.ThereisacleardivisionbetweentheExecutiveandNon-Executiveresponsibilities.

Role Responsibilities

Chair of the Board

DavidTyler

TheChairoftheBoardisresponsibleforensuringoverallBoardandindividualDirectoreffectivenessandfor

creatingandembeddingtherightgovernanceframeworkwithintheBoard.Specificresponsibilitiesinclude:

• EffectiverunningoftheBoardincludingsettingtheagendaandensuringthattheBoardplaysafulland

constructivepartintheapprovaloftheGroup’sstrategyandoverallcommercialobjectives

• EnsuringmembersoftheBoardreceiveaccurate,timelyandclearinformation

• ReviewingandagreeingtraininganddevelopmentfortheBoard

• EnsuringanappropriatebalanceismaintainedbetweenExecutiveandNon-ExecutiveDirectorswiththeskills,

experienceandexpertisetoprovideguidance,challengeandoversighttotheBoardandexecutivemanagement

• EnsuringthereiseffectivecommunicationwiththeGroup’sshareholdersandotherstakeholders

• EnsuringthattheperformanceoftheBoardasawhole,itsCommitteesandindividualDirectorsisformally

evaluatedand

• PromotinghighstandardsofintegrityandcorporategovernancethroughouttheGroup,particularlyat

Boardlevel.

Chief Executive Officer

Jonathan Myers

TheChiefExecutiveOfficerisaccountabletotheChairandtheBoardforprovidingtimely,accurateandclear

informationinrelationtotheGroup’sperformanceanddeliveryofitsstrategyandoverallcommercialobjectives.

Specificresponsibilitiesinclude:

• DevelopingtheGroup’sobjectivesandstrategyforapprovalbytheBoard,andwithregardfortheGroup’s

shareholders,customers,employeesandotherstakeholders

• ThesuccessfulachievementofobjectivesandexecutionoftheGroup’sstrategy

• ManagingtheGroup’sriskprofileinlinewiththeCompany’sriskappetiteandensuringthateffectiveinternal

controls are in place

• Ensuringeffectivecommunicationswithshareholders

• ExecutivemanagementmattersaffectingtheGroupandleadingtheExecutiveCommittee

• PromotingandconductingtheaffairsoftheGroupwithstandardsofintegrityandcorporategovernance

thataligntotheGroup’sintegrityandpurpose

• Advisingandmakingrecommendationsinrespectofmanagementsuccessionplanningandtomake

recommendationsonthetermsofemploymentandremunerationoftheExecutiveCommittee

• Ensuringopen,honestandtransparentdialoguebetweentheBoardandtheExecutiveCommittee

• Ensuring,withthesupportoftheCompanySecretary,thattheExecutiveCommitteecomplywiththeir

delegatedauthorityandthemattersreservedfortheBoard

• Leadingandoverseeingthedevelopmentandimplementationofgoodgovernancepoliciesrelatingto

whistle-blowing,insiderdealing,disclosure,anti-corruption,safetyandsustainability

• Promotinganentrepreneurialandethicalculturewhichwelcomesandsupportsadiverseworkforceand

• ChampioningtheGroup’svaluesandbehaviours.

PZ Cussons plc / AnnualReportandAccounts2024 / Governance

Role Responsibilities

Chief Financial Officer

SarahPollard

TheChiefFinancialOfficer’sspecificresponsibilitiesinclude:

• ImplementingtheGroup’sfinancialstrategy,includingbalancesheetmanagementandcapitalallocation

• SupportingtheChiefExecutiveOfficerinthedeliveryoftheGroup’sstrategyandfinancialperformanceand

• Overseeingfinancialreportingandinternalcontrols.

Senior Independent

Director

JohnNicolson

TheSeniorIndependentDirector’sspecificresponsibilitiesinclude:

• ActingasasoundingboardfortheChairandservingasintermediaryfortheotherDirectorswhennecessary

• BeingavailableforconfidentialdiscussionswithotherNon-ExecutiveDirectors

• EvaluatingtheChair’sperformanceaspartoftheBoard’sevaluationprocessandensuringthatanindependent

evaluationoftheperformanceoftheChairiscompletedbyanexternalevaluatoratleastonceeverythreeyears

• ChairingmeetingsoftheNon-ExecutiveDirectorsorothermeetingswhereappropriateand

• BeingavailabletoshareholdersshouldtheoccasionoccurwhenthereisaneedtoconveyconcerntotheBoard

otherthanthroughtheChairortheChiefExecutiveOfficer.

Non-Executive Directors TheNon-ExecutiveDirectors’specificresponsibilitiesinclude:

• ContributingtothedevelopmentoftheGroup’sstrategy

• PromotingandsupportingtheGroup’svaluesandcommitmenttohighstandardsofcorporategovernanceand

• Reviewing,oversightandconstructivechallengeoftheExecutiveCommitteeonthedeliveryoftheCompany’s

objectivesandstrategy.

GOVERNANCE FRAMEWORK

TheBoardrecognisesthatagoodgovernancestructureisnotstaticbutallowstheGrouptogrowanddevelop.

TheBoardhasoverallauthorityforthemanagementandconductoftheGroup’sbusiness,strategyanddevelopmentandisresponsible

forensuringthatthisalignswiththeGroup’sculture.TheBoardensuresthemaintenanceofasystemofinternalcontrolsandrisk

management(includingfinancial,operationalandcompliancecontrols)andreviewstheoveralleffectivenessofthesystemsinplace.

TheBoarddelegatestheday-to-daymanagementofthebusinesstotheExecutiveDirectorsandtheExecutiveCommittee.Thereisa

scheduleofmattersreservedfortheBoard’sdecisionwhichformspartofadelegatedauthorityframework.MattersfortheBoard’s

decisionincludeapprovaloftheGroup’sstrategyandobjectives,settingthepurposeandvaluesoftheGroup,annualbudget,material

agreementsandmajorcapitalexpenditure.Thescheduleisreviewedregularlytoensurethatitiskeptuptodatewithanyregulatory

changesandisfitforpurpose.

STRATEGIC REPORT GOVE R NANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION

THE BOARD DELEGATES RESPONSIBILITY FOR CERTAIN MATTERS TO ITS PRINCIPAL COMMITTEES*

Corporate Governance Statement 2024 continued

TheBoard’sroleistoprovideleadershipandsetthepurpose,valuesandstandardsoftheCompanyandtheGroup.

TheBoardhasultimateresponsibilityforthelong-termsuccessandsustainabilityofthebusiness.Itapprovesthe

Group’slong-termobjectivesandcommercialstrategyandprovidesoversightoftheGroup’soperations.

TheBoardhasdelegatedresponsibilityforthedeliveryoftheGroup’sstrategyandtheday-to-dayoperationalperformance

ofthebusinesstotheExecutiveDirectorswhoworkcloselywiththewiderExecutiveCommitteetodeliverthisstrategy.

Audit and Risk Committee

ReviewingtheGroup’s

accountingandfinancial

policies,itsdisclosure

practices,internal

controls,internalaudit

&riskmanagement

andoverseeingall

mattersassociatedwith

appointment,terms,

remunerationand

performanceofthe

ExternalAuditor.

Nomination Committee

Ensuringthatthe

structure,sizeand

compositionofthe

BoardandtheExecutive

Committeearebestsuited

todelivertheCompany’s

strategyandmeetcurrent

andfutureneeds.

Remuneration Committee

Reviewingand

recommendingthe

frameworkandpolicy

forremunerationofthe

ExecutiveDirectorsand

seniorexecutives.

Environmental and Social

Impact (ES) Committee

ApprovingtheGroup’sES

strategyandperformance

targets,monitoring

performancebytheGroup

againstitsESstrategyand

howtheGroupengages

withkeystakeholders.

THE BOARD

THE EXECUTIVE COMMITTEE

* InadditiontoitsprincipalCommittees,theBoard,fromtimetotime,dealswithcertainmattersinotherCommittees,bothformalandadhoc.

 TermsofReferenceforeachCommitteelistedaboveareavailableontheCompany’swebsite.

BALANCE OF INDEPENDENCE

TheBoardcurrentlycomprisesfiveindependentNon-ExecutiveDirectors(excludingtheChair)andtwoExecutiveDirectors.TheBoard

isoftheopinionthattheNon-ExecutiveDirectorsremainindependent,inlinewiththedefinitionsetoutinthe2018Codeandarefree

fromanyrelationshiporcircumstancesthatcouldaffect,orappeartoaffect,theirindependentjudgement.TheChairwasindependent

on appointment.

CONFLICTS OF INTEREST

TheCompanySecretarykeepsaregisterofallDirectors’interests.TheregistersetsoutdetailsofsituationswhereeachDirector’sinterest

mayconflictwiththoseoftheCompany(situationalconflicts).TheregisterisconsideredandreviewedateachBoardmeetingsothatthe

Boardmayconsiderandauthoriseanynewsituationalconflictsidentified.

PZ Cussons plc / AnnualReportandAccounts2024 / Governance

COMPANY SECRETARY

AllDirectorshaveaccesstotheadviceoftheCompanySecretary.TheappointmentandremunerationoftheCompanySecretaryis

amatterfortheBoard.

BOARD TIME COMMITMENTS

AllDirectorsarerequiredtoobtainpermissionoftheBoardinrespectofanyproposedappointmentstootherlistedcompanyboards

priortocommittingtothem.TheNon-ExecutiveDirectorsarerequired,bytheirlettersofappointment,todevotesufficienttimeto

meettheexpectationsoftheirroleasrequiredbytheBoardfromtimetotime.TheBoardremainssatisfiedthatalltheDirectors

spendconsiderablymorethanthisamountoftimeonBoardandCommitteeactivity.

BOARD MEETING ATTENDANCE

EachoftheDirectorshascommittedtoattendallscheduledBoardandrelevantCommitteemeetingsandhascommittedtomakeevery

efforttoattendadhocmeetings,eitherinpersonorbytelephone/videocall.TheNon-ExecutiveDirectorsmeetwithouttheExecutive

DirectorsandtheChairpresentatleastonceayear.ThefollowingtablesetsouttheattendanceofDirectorsatthescheduledBoard

meetingsheldduringtheyear.AttendanceisshownasthenumberofmeetingsattendedbyeveryDirectoreligibletoattend.Attendance

atCommitteemeetingsisshowninthetablesatthebeginningofeachCommitteereport.

Board members Member since Meetings attended

DavidTyler 2022 7/7

Jonathan Myers 2020 7/7

SarahPollard 2021 7/7

JohnNicolson 2016 7/7

KirstyBashforth 2019 7/7

DariuszKucz

2018 1/1

JeremyTownsend

2020 4/5

JiteshSodha 2021 7/7

ValeriaJuarez 2021 7/7

VivekAhuja

2024 1/1

1 SteppeddownasaDirectoron14September2023.

2 SteppeddownasaDirectoron28February2024.

3 AppointedasaDirectoron1May2024.

BOARD ACTIVITY

Duringtheyear,theBoardheldsixscheduledmeetingsandaBoardstrategyday.Arollingagendaandforwardcalendarhavebeen

agreedandtheagendaforeachmeetingisagreedwiththeChairandExecutiveDirectors.BoardpapersarecirculatedtoDirectorsin

advanceofthemeetings.IfaDirectorcannotattendameeting,heorsheisabletoconsiderthepapersinadvanceofthemeetingand

willhavetheopportunitytodiscussthemwiththeChairorChiefExecutiveOfficerandtoprovidecomments.

Inlinewiththeannualrollingagenda,theBoardconsideredanumberoftopicsonaregularbasis.

Formoredetailsseepages 70 to 71

PrivatemeetingsoftheNon-ExecutiveDirectorsarealsoheldonaregularbasisattheconclusionofBoardmeetings.

STRATEGIC REPORT GOVE R NANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION

Corporate Governance Statement 2024 continued

BOARD COMPOSITION, SUCCESSION AND EVALUATION

Code Principle and Description Annual Report and Accounts See page

J AppointmentstotheBoard • OurBoard

Seepage 64

K Boardcomposition

• Boardskillsandexperience

• Succession

• OurBoard

• NominationCommitteeReport

Seepage 64

Seepage 80

L Evaluation • NominationCommitteeReport

Seepage 80

Appointments to the Board

VivekAhujawasappointedtotheBoardon1May2024.SeeOurBoardonpage64forhisbiography,skillsandexperience.

Skills, experience and knowledge

OurBoardisadiverseandeffectiveteam,focusedonpromotingthelong-termsuccessoftheGroupforthebenefitofallstakeholders.

FormoredetailsseeOurBoardonpages 64 and 65for:

– Directors’coreareasofexpertise  – Genderdiversity

– Ethnicbackground   – Tenure

– Independence    – Externalappointments

AUDIT, RISK AND INTERNAL CONTROL

Code Principle and Description Annual Report and Accounts See page

M EffectivenessofExternalAuditorand

internalaudit&integrityofaccounts

• AuditandRiskCommitteeReport

Seepage 84

N Fair,balancedandunderstandable

assessmentofCompany’sprospects

• AuditandRiskCommitteeReport

• ReportoftheDirectors

Seepage 84

Seepage 120

O Internalfinancialcontrolsand

riskmanagement

• AuditandRiskCommitteeReport

• RiskManagementandPrincipalRisks

Seepage 84

Seepage 42

TheBoard’sobjectiveistogiveshareholdersafair,balancedandunderstandableassessmentoftheGroup’spositionandprospectsfor

thebusinessmodelandstrategyandithasresponsibilityforpreparingtheAnnualReportandAccounts.TheBoardisalsoresponsible

formaintainingadequateaccountingrecordsandseekstoensurecompliancewithstatutoryandregulatoryobligations.Youcanfind

anexplanationfromtheDirectorsabouttheirresponsibilityforpreparingthefinancialstatementsintheStatementofDirectors’

responsibilitiesintheReportoftheDirectorsonpage125.

PZ Cussons plc / AnnualReportandAccounts2024 / Governance

REMUNERATION

TheCodeprovidesthatremunerationpoliciesandpracticesmustbedesignedtosupporttheCompany'sstrategyandpromotelong-term

sustainablesuccess.TheBoarddelegatesresponsibilitytotheRemunerationCommittee,comprisedofexclusivelyindependent

Non-ExecutiveDirectors,toensurethatthereareformalandtransparentproceduresinplacefordevelopingthepolicyforthe

remunerationofExecutiveDirectorsandseniormanagementandtheapplicationofthepolicy.

Code Principle and Description Annual Report and Accounts See page

P Linkingremunerationpurpose

andstrategy

• RemunerationCommitteeReport

• RemunerationPolicy

Seepage 92

Seepage 98

Q Aformalandtransparentprocedure

fordevelopingpolicy

• RemunerationPolicy

Seepage 98

R Independentjudgementanddiscretion • RemunerationCommitteeReport

Seepage 92

TheRemunerationCommitteeReportsetsouttheDirectors’RemunerationPolicy,howtheDirectors’RemunerationPolicywasapplied

throughoutFY24andhowitwillbeappliedduringFY25.

 Formoredetailssee:

– Financialreportingpage 89 – Significantfinancialjudgements page 87

– Internalfinancialcontrolspages 84 to 89 – Assuranceoverexternalreportingpages 128 to 137

– Internalandexternalauditpages 84 to 89 – Auditoronboarding page 86

– Riskmanagementpages 44 to 50 – Businesscontinuityanddisasterrecoverypage 46

– Cybersecuritypage 46 – ReportontheDirectors’Remunerationpage 108

STRATEGIC REPORT GOVE R NANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION

Nomination Committee Report

THIS YEAR, THE

COMMITTEEHAS FOCUSED

ON THE PROCESS FOR

BOARD ANDEXECUTIVE

COMMITTEESUCCESSION.

COMMITTEE MEMBERSHIP AND ATTENDANCE

Committee members Member since Attendance

DavidTyler 2022 2/2

JohnNicolson 2016 2/2

KirstyBashforth 2019 2/2

JeremyTownsend

2023 1/1

JiteshSodha 2023 2/2

ValeriaJuarez 2023 2/2

VivekAhuja

2024 1/1

1 SteppeddownasaDirectoron28February2024.

2 AppointedtotheCommitteeon1May2024.

ACTIVITIES OF THE COMMITTEE DURING THE YEAR

• Successionplanning

• 2024BoardandCommitteesinternalevaluation

• ReviewedtheBoardandCommitteemembershipand

composition(includingdiversity).

DEAR SHAREHOLDERS,

On behalf of the Board, and as Chair of the Nomination

Committee, I am pleased to present its report for the year

ended 31 May 2024.

Duringtheyear,theCommitteefocuseditstimeonBoardand

ExecutiveCommitteesuccessionplanninganditsinternalBoard

evaluation.Considerationwasalsogiventotheimpacton

membershipoftheCommitteesoftheBoardasaresultofthe

changestotheBoard’smembership.Successionplanningforthe

Board,itsCommitteesandtheExecutiveCommitteewillcontinue

tobeakeyfocusfor2025.

HOW THE COMMITTEE OPERATES

TheCommitteemeetsaminimumoftwiceayearandmore

frequentlyasnecessary.Duringtheyear,theCommitteemet

formallytwice.

OnlymembersoftheCommitteeareentitledtoattendthe

meetings.Otherindividuals,suchastheChiefExecutiveOfficer,

ChiefPeopleOfficerandexternaladvisers,maybeinvitedto

attendallorpartsofanymeetingasandwhenappropriate.The

Committee,however,ensuresthatitdedicatessufficienttimeto

discussionswithoutadviserspresenttofacilitatecandidexchanges

ofviewsbyitsmembersandtoensuretheindependenceofthe

Committeeismaintained.

TheTermsofReferencewerereviewedduringtheyeartoensure

thattheyarecompatiblewiththeCorporateGovernanceCode

2018(the2018Code).

David Tyler

Nomination Committee Chair

PZ Cussons plc / AnnualReportandAccounts2024 / Governance

COMMITTEE ROLE

• Regularlyreviewtheleadershipandsuccessionneeds

ofthebusiness

• Regularlyreviewthestructure,sizeandcomposition

oftheBoardanditsCommittees

• Identifyandnominateforapprovalcandidatestofill

Boardvacancies

• EvaluatetheBoard’sdiversityandbalanceofskills

• EvaluatetheperformanceoftheBoard

• Ensureadiversepipelineforsuccession.

PRIORITIES FOR 2025

• ToapproveformalsuccessionplansfortheBoard,

itsCommitteesandseniormanagement

• ConductaninternalBoardevaluation.

DetailedresponsibilitiesaresetoutintheCommittee’s

TermsofReference,whichcanbefoundontheCompany’s

websitewww.pzcussons.com

BOARD MEMBERSHIP

On1December2023,JeremyTownsendinformedtheCompany

thathewouldstepdownfromtheBoardwitheffectfrom

28February2024.TheCommitteeengagedexecutivesearchfirm

EgonZehnder,whohasnootherconnectiontotheCompanyor

itsDirectorsandisasignatorytotheVoluntaryCodeofConduct

forExecutiveSearchFirms,tosupportthesearchforanew

Non-ExecutiveDirector.Followingtheselectionprocess,the

NominationCommitteerecommendedandtheBoardapproved

theappointmentofVivekAhujaasaNon-ExecutiveDirectorand

thenewChairoftheAuditandRiskCommitteewitheffectfrom

1 May 2024.

TheCommitteeapprovedarecommendationtotheBoardthat

JiteshSodhabereappointedasaNon-ExecutiveDirectorwith

effectfrom1July2024ashisfirstthree-yeartermexpiredon

30 June 2024.

BOARD COMMITTEE MEMBERSHIP

VivekAhujajoinedtheAuditandRiskCommitteeandNomination

Committeeonappointment.Theup-to-datemembershipsof

eachCommitteecanbeseenonpage64.

KirstyBashforthcontinuestobethedesignatedNon-Executive

Directorforemployeeengagement.

INDEPENDENCE

TheNominationCommitteeisoftheopinionthattheNon-

ExecutiveDirectors,inlinewiththedefinitionsetoutinthe2018

Code,arefreefromanyrelationshiporcircumstancesthatcould

affect,orappeartoaffect,theirindependentjudgement.The

Chairwasindependentonappointment.ThebalanceofDirectors

(excludingtheChair)wastwoExecutiveDirectorsandfive

independentNon-ExecutiveDirectorsonthedateofthisreport.

TheBoardcomplieswiththeprovisionsofthe2018Code

thatrequirethateachDirectorseeksre-electionannually.The

existenceofagroupofcontrollingshareholders(seetheReport

oftheDirectorsonpage120)andtheelectionorre-electionof

independentDirectorsissubjecttoadualshareholdervoteatthe

AGM,pursuanttowhichre-electionorelectionmustbeapproved

byamajorityvoteoftheshareholdersoftheCompanyand,

separately,byamajorityvoteoftheshareholdersexcludingthe

controllingshareholders.

BOARD INCLUSION AND DIVERSITY

TheCompanyiscommittedthatthemembershipoftheBoard

(includingtheBoardCommittees)andtheExecutiveCommittee

reflectthediversityofourworkforceandconsumersinthe

countriesinwhichweoperateandisproudtosupportthe

FTSEWomenLeadersReviewandParkerReview.

TheBoardandExecutiveCommitteearecommittedtocreating

aninclusiveworkenvironmentwhichencouragesmembersfrom

diversebackgroundsandwithdiverseperspectivesandskillsto

collaborateandworktogethertowardsacommonobjective.The

BoardhasapprovedanInclusionandDiversityPolicyforBoardand

ExecutiveCommitteeappointmentswhichisavailableinfullon

theCompany’swebsite.

OurBoardmeetsthetargetsetbytheParkerReviewonethnic

diversitybyhavingthreeDirectorsfromaminorityethnicbackground.

Webelievethatgenderdiversityisgoodforourbusiness.The

Board’sfemalerepresentationatthedateofthisreportis37.5%.

Wearecommittedtothe40%targetintheFTSEWomenLeaders

Review,whichtheCompanymetforsometimepreviously.However,

therelativelysmallsizeofourBoardmeanstheimpactofasingle

changeismagnifiedascomparedtolargerboards.Wecontinueto

meettheFTSEWomenLeadersReviewtargetforatleastonesenior

positiontobeheldbyawoman.Wewillbearinmind,whenmaking

futureappointmentstotheBoard,thatwehaveamodestshortfall

againstthetargetforfemalerepresentation.

Whenevaluatingcandidates,theCompanyseekstomake

decisionsbasedonmeritandobjectivecriteriaaswellasthe

needsoftheBoardandExecutiveCommittee,havingdueregard

tothebenefitsofalltypesofdiversity,includingdiversityof

age,gender,socialandethnicbackgrounds,disability,sexual

orientation,educationalandprofessionalbackgroundsand

cognitiveandpersonalstrengths.

Whereexternalrecruitmentagenciesareused,theCompanyuses

agencieswhohavesigneduptothevoluntarycodeofconduct

ondiversityandbestpracticeorwhocandemonstrateequivalent

commitmentstoinclusionanddiversity.

TheCompanyaimstoachievelongandshortlistsofcandidatesthat

reflectitsdiversitycommitments.InrespectofBoardappointments,

theCompanyconsiderscandidatesfromnon-traditionalcorporate

backgrounds,includingfromnon-profitorganisations,thepublic

sectorandacademia.Priorlistedboardexperienceisnota

requirementforeveryappointment.

STRATEGIC REPORT GOVE R NANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION

Datainrelationtothegenderofemployeesiscollectedvoluntarily

viaourpeoplemanagementinformationsystemWorkdaythrough

whichtheindividualself-reportstheirgenderidentity(orspecifies

theydonotwishtoreportsuchdata).Thecriteriaofthestandard

formquestionnairearefullyalignedtothedefinitionsspecified

intheUKListingRules,withindividualsrequestedtospecify:self-

reportedgenderidentity.Selectionfrom‘a’male;‘b’female;‘c’

othercategory/pleasespecify;‘d’notspecified(duetolocaldata

privacylaws);or‘e’prefernottosay.ForNon-ExecutiveBoard

members,wecollectdatavoluntarilythroughamanualprocess.

Datainrelationtoethnicityiscurrentlycollectedviaamanual

process.EachindividualBoardmemberandmemberof

theExecutiveCommitteeisrequestedtoself-reportethnic

backgroundinaccordancewiththeclassificationsprescribedin

theUKListingRulesasdesignatedbytheUKOfficeofNational

Statistics.Assetoutinthetableabove,theseare‘a’WhiteBritish

orotherWhite;‘b’MixedorMultipleEthnicGroups;‘c’Asian

orAsianBritish;‘d’Black;‘e’Otherethnicgroup/pleasespecify;

or‘f’notspecified/prefernottosay.

BOARD AND EXECUTIVE MANAGEMENT DIVERSITY DATA

WereportourBoardandexecutivemanagementdiversitydataasfollowsasatourchosenreferencedateof18September2024

(thedateofthisAnnualReportandAccounts)furthertotheUKListingRulesrequirements.

Asat31May2024and18September2024,theBoardincludedthreewomenDirectorsrepresenting37.5%oftheBoard.Oneofthefour

seniorpositionsontheBoardwasheldbyawomanandthreeDirectorswerefromaminorityethnicbackground.

TheCompanyiscommittedtohavingaBoardandExecutiveCommitteethatreflectthediversityofourworkforceandconsumersinthe

countriesinwhichweoperate.

ThenamesofourBoardandExecutiveCommitteemembersaresetoutonpages64to66.

Board and executive management reporting on gender identity or sex

No. of Board

members

of the Board

No. of senior

positions on

the Board (CEO,

CFO, SID and

Chair)

No.

in executive

management

% of executive

management

Men 5 62.5% 3 9 75%

Women 3 37.5% 1 3 25%

Othercategories 0 – 0 0 –

Notspecified/prefernottosay 0 – 0 0 –

1 ExecutivemanagementmeanstheExecutiveCommittee(themostseniorexecutivebodybelowtheBoard).TheChiefExecutiveOfficerandChiefFinancialOfficerareincludedinthe

datafieldsforboththeBoardandtheExecutiveCommitteeastheyaremembersofbothrespectively.

Board and executive management reporting on ethnic background

No. of Board

members

of the Board

No. of senior

positions on

the Board (CEO,

CFO, SID and

Chair)

No.

in executive

management

% of executive

management

WhiteBritishorotherWhite

(includingminority-whitegroups) 5 62.5% 4 8 66.7%

Mixed/MultipleEthnicgroups 1 12.5% 0 1 8.3%

Asian/AsianBritish 2 25.0% 0 2 16.7%

Black/African/Caribbean/BlackBritish 0 0 0 1 8.3%

Otherethnicgroup,includingArab 0 0 0 0 0

Notspecified/prefernottosay 0 0 0 0 0

datafieldsforboththeBoardandtheExecutiveCommitteeastheyaremembersofbothrespectively.

Nomination Committee Report continued

SENIOR MANAGEMENT AND THEIR DIRECT REPORTS

AS AT 31 MAY 2024

Seniormanagement*andtheirdirectreports(excluding

administrativestaff)aredisclosedinaccordancewiththe

2018Code.

52%

48%

* Thedefinitionof‘seniormanagement’forthispurposeistheExecutiveCommittee.

ThenamesofourExecutiveCommitteemembersaresetoutonpage66.

Male

Female

Gender

diversity

PZ Cussons plc / AnnualReportandAccounts2024 / Governance

SUCCESSION PLANNING

Progresshasbeenmadeanddiscussionshavetakenplaceonthismatterduringtheyear.TheCommitteewillcontinuetofocuson

successionplansduringFY25.

TheCommitteewillalsocontinuetoensurethatenhancingtheBoard’sskillsanddiversityremainonitsagenda.

2024 BOARD AND COMMITTEE EVALUATION

Toevaluateitsowneffectiveness,inaccordancewithbestpracticeandtherequirementsofthe2018Code,theBoardundertakesannual

effectivenessreviewsusingacombinationofexternallyfacilitatedandinternallyrunevaluationsoverathree-yearcycle.Eachprocessis

facilitatedbytheCompanySecretary,workingwiththeChair.ThecycleoftheBoardevaluationsissummarisedasfollows:

YEAR 1

ExternallyfacilitatedBoardevaluation

usinginterviews.

YEAR 2

Follow-uponactionspreparedin

responsetotheyearoneevaluationusing

internallyfacilitatedquestionnaires.

YEAR 3

Continuedfollow-uponactionsarising

fromtheprevioustwoyearsusing

internallyfacilitatedquestionnaires.

TheCommitteeispleasedtoreportthattheBoardhasmadeprogressagainsttheprioritiesitsetinthe2023evaluation.Inparticular,the

Boardhasworkedpurposefullyandwithfocustoensurethatthesuccessfulexecutionofstrategyisdelivered.Continuedexecutionofthe

strategyremainsapriorityfortheBoardassetoutbelow.ThesizeandcompositionoftheBoard,whichwasalsoamatterforreviewin

the2023priorities,wasconsideredandaffirmedbytheCommitteeintheyear.

TheBoardrecognisestheimportanceofcontinuallymonitoringandimprovingitsperformance.Inaccordancewiththethree-yearcycle,

aninternalevaluationtookplacethisyearfacilitatedbytheCompanySecretary.

Process Conclusions and actions agreed from 2024 evaluation

Asreportedlastyear,the2023Boardevaluationwas

externallyfacilitatedbyapartnershipofBoardClic,

BoardIntelligenceandAlisonPurdueAssociates.The

2024internalBoardevaluationreportwascompiled

followingcompletionoftailoreddigitalsurveys

createdbyBoardClicinwhichallDirectorssubmitted

responses.

TheBoardevaluationalsoincludedareviewofthe

AuditandRiskCommitteeandtheRemuneration

Committee.QuestionsinthemainBoardevaluation

werealsospecificallyrelatedtotheNomination

Committee,ChairandSeniorIndependentDirector.

Thisyear'sreviewhasyieldedpositiveresults,confirmingtheeffectivenessofthe

Boardasawhole.ThetwoCommitteesevaluatedwerealsofoundtobeeffective.

AreasidentifiedtoenhancetheBoard'seffectivenessforthecomingyearare

detailedbelow.Someoftheseareashaveevolvedfromthepreviousyearand

arebeingactivelyprogressed.

• Executionoftherevisedstrategy,includingstrategicactionsrelatingto

portfoliotransformationandthecontinuedjourneyfromturnaround

totransformation

• Continuetore-balanceBoardagendastoincreasethefocusonmatters

ofstrategicimportanceandmonitoringtheimplementationofstrategic

decisions.EnablebetteruseoftheDirectors'skillsbetweenBoardmeetings

• FosterbothasupportiveandchallengingenvironmentfortheExecutive

DirectorsaroundtheexecutionanddeliveryoftheCompany'splans

• ContinuetoengagestakeholdersindeterminingCompanyriskappetiteto

informthestrategy.Continuetostrengthenriskmanagementprocessesto

enablegreaterunderstandingofriskandtomanagewithintolerances

• Focusontalentdevelopmentandestablishacultureofagilityandeffective

decision-makingthatempowersemployees,fostersinnovationanddrives

businesssuccess

• KeepunderreviewthesizeandcompositionoftheBoardtoalignwiththe

Groupsizeandstructure.

Thefindingsandrecommendationsoftheevaluation

werepresentedtoandconsideredbytheBoardatits

Maymeeting.

TheAuditandRiskandRemunerationCommittees

consideredtheresultsoftheirownevaluations.

Anumberofrecommendationsweremadetothe

Boardandactionsagreed.

David Tyler

Nomination Committee Chair

18September2024

STRATEGIC REPORT GOVE R NANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION

Audit and Risk Committee Report

THE COMMITTEE WILL

FOCUS ON THE GROUP'S

RISK MANAGEMENT

AND CONTROLS

EFFECTIVENESS.

COMMITTEE MEMBERSHIP AND ATTENDANCE

Committee members Member since Attendance

VivekAhuja

2024 1/1

JeremyTownsend

2020 2/3

JohnNicolson 2016 4/4

DariuszKucz

2018 1/1

JiteshSodha

2021 4/4

1 AppointedtotheCommitteeandappointedChairon1May2024.

2 SteppeddownasaDirectorandChairoftheCommitteeon28February2024.

3 SteppeddownasaDirectoron14September2023.

4 ActedasChairforthemeetingon5February2024inJeremyTownsend'sabsence.

ACTIVITIES OF THE COMMITTEE DURING THE YEAR

Overthecourseofthisfinancialyear,theCommittee:

• OversawtheonboardingofPricewaterhouseCoopersLLP(PwC)

followingitsappointmentastheCompany’sExternalAuditor.

Thisfollowedacompetitivetenderprocessasdetailedinlast

year’sCommitteereport

• OversawcontinuedprogressoftheControlsTransformation

Projectwhichstartedin2022andwillresultinanimprovedinternal

controlframeworkandenvironment,andanimprovementinthe

financesharedservicesorganisationdesign,capability,control

andefficiency

• Hasreviewedthesignificantfinancialreportingmattersand

judgementsidentifiedbythefinanceteamandPwCthroughthe

externalauditprocess,andtheapproachtoaddressingthose

mattersissetoutinthetableonpage87ofthisAnnualReport

andAccounts

• Closelymonitoredimprovementsinpaymentpracticeswhich

areregisteredwiththeGovernment’sonlineportal

• Heldaregularprogrammeofmeetingsanddiscussions,

supportedbyourinteractionswiththeCompany’s

management,ExternalAuditorandthequalityofthereports

andinformationprovidedtous,enablestheCommittee

memberstoeffectivelydischargeourdutiesandresponsibilities

• Oversawandmonitoredtheriskmanagementprocess,ensuring

alignmentwiththeriskmanagementframework,includingthe

identificationandassessmentofemergingandPrincipalRisks.

Vivek Ahuja

Audit and Risk Committee Chair

PZ Cussons plc / AnnualReportandAccounts2024 / Governance

DEAR SHAREHOLDERS,

I am pleased to present the Committee’s report for the financial

year ended 31 May 2024 which sets out a summary of the work

of the Committee and how it has carried out its responsibilities

during the year.

TheCommitteehascontinuedtomonitortheembeddingof

theprocessesandcontrolsthathavebeendesignedaspart

ofourongoingcontrolsimprovementprogramme(Controls

Transformation),theCommitteeseethemainbenefitsof

thisprogrammerelatingtoriskreduction.Theimportanceof

theControlsTransformationworkisonlyheightenedbythe

Government’sproposedregulatorychangeandcorporate

governancecodereformleadingtoincreasedfuture

requirementsofauditassuranceandDirectors'declarations

overtheeffectivenessofmaterialinternalcontrolsover

reporting.TheCommitteerecognisestheprogressbeing

madeinthisareaandsupportsmanagementinadaptingplans

wherenecessarytoensurecontinuedfocusonimprovingthe

overall control environment.

TheCommitteerecognisesthatInternalAuditandRiskplaysakey

roleincontrolsimprovementandensuringculturalchangesare

embeddediscriticalbutcanbedifficulttomeasureandquantify.

COMMITTEE ROLE

• Monitortheintegrityofthefinancialstatementsand

announcementsandreviewsignificantfinancialreporting

requirements,issuesandjudgements

• Recommendtheappointmentandremoval,approvethe

termsandremuneration,andassesstheindependenceand

performanceoftheExternalAuditor,reviewingthescope,

findings,costeffectivenessandqualityoftheaudit

• ReviewtheadequacyandeffectivenessoftheGroup’srisk

managementsystemsandmitigationprogrammes

• ReviewtheadequacyandeffectivenessoftheGroup’ssystems

andprocessesforinternalfinancialcontrol

• Reviewtheindependence,effectivenessandoutputofthe

Group’sInternalAuditandRiskFunctionandprogramme

• ReviewtheadequacyoftheGroup’swhistle-blowing

arrangementsandproceduresfordetectingfraud.

PRIORITIES FOR 2025

• Overseeandassessmanagement’scontinuedprogressonthe

strengtheningofinternalcontrols,enablingreadinessfor

corporategovernancereform

• Reviewsignificantfinancialreportingmattersandjudgements

astheyrelatetotheGroup'sinterimandfullyearfinancialresults

• OversightandsupporttotheExternalAuditorduringtheirsecond

year-endaudit

• Leveragingtheriskmanagementframeworktoproactively

supporttheGroupasitadvancesitstransformativejourney.

TheCommitteewillconcentrateontheevolvingriskprofile

andoverseemitigationsinresponsetostrategicand

operationalinitiatives

• ContinuetosupporttheimprovementoftheInternalAuditand

RiskFunction,supportingacultureofriskmanagementand

embeddingandstrengtheninginternalcontrolsacrosstheGroup

• IncreasedoversightofrisktoleranceastheGroupcontinuesto

strengthenitsriskappetiteframework.

DetailedresponsibilitiesaresetoutintheCommittee’s

termsofreference,whichcanbefoundontheCompany’s

websitewww.pzcussons.com

HOW THE COMMITTEE OPERATES

TheCommitteemeetsaminimumofthreetimesayearandmore

frequentlyasnecessary.DuringtheyeartheCommitteemetfour

times.Thisenabledafocusonthefull-yearandinterimresults

inSeptemberandFebruaryrespectivelyandafocusoninternal

audit,riskandauditplanningintheremainingmeetings.

OnlymembersoftheCommitteeareentitledtoattendthe

meetings.However,otherDirectorsandotherindividuals

(includingrepresentativesofexternaladvisers)maybeinvitedto

attendforallorpartsofanymeetingasandwhenappropriate.

TheChiefFinancialOfficer,GroupInternalAuditandRiskDirector

andExternalAuditleadpartnerareinvitedtoattendmeetingsof

theCommitteeonaregularbasis.DuringtheyeartheChairof

theBoard,theChiefExecutiveOfficerandothermembersofthe

managementteamroutinelyattendedtoreviewspecificrisksand

mitigatingactionplans.

TheCompanySecretaryactsassecretarytotheCommittee.

TheexperienceoftheCommitteemembers,includingmyself,is

summarisedonpage65.TheBoardconsiderseachCommittee

memberisindependentandhasabroadanddiversespread

ofcommercialandrelevantindustryexperience,suchthatthe

BoardissatisfiedthattheCommitteehastheappropriateskills

andexperiencetobefullyeffectiveandmeetsthe2018Code

requirementthatatleastonememberhassignificant,recent

andrelevantfinancialexperience.

STRATEGIC REPORT GOVE R NANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION

RELATIONSHIP WITH THE EXTERNAL AUDITOR

TheCommitteehasprimaryresponsibilityformanagingtherelationshipwiththeExternalAuditor,includingassessingtheirperformance,

effectivenessandindependenceannuallyandrecommendingtotheBoardtheirreappointmentorremoval.

JonathanStudholmehasbeenleadpartnersincetheappointmentofPwCasExternalAuditorin2023.

Duringtheyear,themembersoftheCommitteeregularlymetwithrepresentativesfromPwCwithoutmanagementpresent,toensure

thattherewerenoissuesintherelationshipbetweenmanagementandtheExternalAuditorwhichitshouldaddress.Therewereno

materialissuesraisedinthisregardthroughoutFY24.

TheCommitteeconsidersthenature,scopeandresultsoftheExternalAuditor’sworkandreviews,developsandimplementsapolicy

onthesupplyofanynon-auditservicesthataretobeprovidedbytheExternalAuditor.ItreceivesandreviewsreportsfromtheGroup’s

ExternalAuditorrelatingtotheGroup’sAnnualReportandAccountsandtheexternalauditprocess.

Inrespectoftheauditforthefinancialyearended31May2024,PwCpresenteditsauditplantotheCommittee.Theauditplanincluded

anassessmentofauditrisks,scopeandmateriality,androbusttestingprocedures.

TheCommitteeapprovedtheimplementationoftheplanfollowingdiscussionswithbothPwCandmanagement.

Audit and non-audit Fees

TheCompanypaid£4.0millioninauditfeesforthefinancialyearended31May2024.TheCompanyalsopaidformerExternalAuditor,

DeloitteLLP,£0.4millioninrespectoflatefeesrelatingtotheirauditofthe2023AnnualReportandAccounts.

Regardingnon-auditservices,theCompanyhasapracticeoflimitingPwCtoworkingontheauditorsuchothermatterswheretheir

expertiseastheCompany’sExternalAuditormakesthemthelogicalchoiceforthework.Thisistopreservetheirindependenceand

objectivity.Intheyear,theGrouppaid£0.3milliontoPwCinrespectofthereviewoftheinterimstatementreleasedinFebruary2024.

Thenon-auditfeewas7.5%oftheauditfees.

Effectiveness and independence

TheChairoftheCommitteespeakstotheauditpartnertodiscussanyconcerns,todiscusstheauditreportsandtoensurethatthe

ExternalAuditorhasreceivedsupportandinformationrequestedfrommanagement.

InaccordancewiththeguidancesetoutintheFinancialReportingCouncil’s‘Practiceaidforauditcommittees’theassessmentofthe

externalaudithasnotbeenaseparatecomplianceexercise,oranannualone-offexercise,butratherithasformedanintegralpartof

theCommittee’sactivities.

ThishasallowedtheCommitteetoformitsownviewonauditquality,andontheeffectivenessoftheexternalauditprocess,basedon

theevidenceithasobtainedduringtheyear.

Sources of evidence obtained and observations during the year:

By referring to the

FRC’s practice aid on

audit quality

TheCommitteehaslookedtothispracticeaidforguidanceandhasensuredthatassessmentoftheauditisa

continuingandintegralpartoftheCommittee’sactivities.

Observations of,

and interactions with,

the External Auditor

TheCommitteehasmetwiththeleadauditpartnerwithoutmanagementandhashadanopendialogueregarding

theCommittee’sviewofPwC’sperformanceandoverallworkingrelationshipbetweentheCompanyandits

ExternalAuditor.

The audit plan, the

audit findings and

the External Auditor

external report

TheCommitteescrutinisesthesedocumentsandreviewsthemcarefullyatmeetingsandbydoingsotheCommittee

hasbeenabletoassesstheExternalAuditor’sabilitytoexplainincleartermswhatworktheyperformedinkey

areas,andalsoassesswhetherthisisconsistentwithwhattheycommunicatedtotheCommitteeattheaudit

planningstage.TheCommitteehasalsoregularlydiscussedthecontentofthesereportsinthemeetings.

Input from those

subject to the audit

TheCommitteehasrequestedtheinsightsfromtheChiefFinancialOfficer,theGroupInternalAudit&RiskDirector

andtheGroupExternalReportingDirectorduringtheauditprocess.

HavingregardtothesematterstheCommitteehasconsideredtheeffectivenessoftheexternalauditprocessandisoftheopinionthat

theExternalAuditorhasdemonstratedprofessionalscepticismandchallengedmanagement’sassumptionswherenecessary.

TheCommitteeissatisfiedwiththescopeofPwC’swork,andthatPwCcontinuestobeindependentandobjective.

Audit and Risk Committee Report continued

PZ Cussons plc / AnnualReportandAccounts2024 / Governance

KEY JUDGEMENTS AND ESTIMATES

TheCommitteereviewedtheexternalreportingoftheGroupincludingtheinterimreviewandtheAnnualReportandAccounts.

InassessingtheAnnualReportandAccountstheCommitteeconsidersthekeyjudgementsandestimates.Thesignificantissues

andimprovementsconsideredbytheCommitteeinrespectoftheyearended31May2024aresetoutbelow:

Significant issues

and judgements Decisions and improvements

Areas of significant

financial judgement

TheCommitteeconsideredanumberofareasofsignificantfinancialjudgementthroughouttheyear.Thekey

areascoveredincludedconsiderationoftheimpactofNigerianNairadevaluationontheGroup;thetreatment

aspermanentasequityofcertainintercompanybalancesheldwithourNigerianbusinesses;impairmenttesting

ofgoodwill,intangibleassetsandtangibleassetsandassociateddiscountrates;thetreatmentofuncertaintax

positionsacrosstheGroup;andtheclassificationanddisclosureofadjustingitemsandthetreatmentoftrade

expenditureandtheprocessesandcontrolsinplacetomanageassociatedrisks.TheCommitteeacceptedthe

judgementsrecommendedbymanagementhavingchallengedthemandconsideredalternativeoptions.

Controls Transformation TheCommitteemonitoredimprovementstointernalcontrolsandincreaseditsfocusontheworkunderwayto

designandthenembedcontrolsimprovementsthroughouttheGroup.TheControlsTransformationprojectis

focusedonimprovingtheuseofSAP,standardisingprocessesandembeddingcontrols.Itaimstoestablishan

effectiveinternalcontrolsframeworkinanticipationoffuturecorporategovernancereformchangesaswellas

improvingfinancesharedservices,organisationdesign,capabilityandefficiency.

Risk management TheCommitteereviewedthedevelopmentofriskmanagementacrosstheGroupandapprovedtheappointment

ofthenewGroupInternalAuditandRiskDirectoraswellasanewHeadofGroupRisk.

Ethics and compliance TheCommitteemonitoredinvestigationreportsandwassatisfiedthatmanagementwassignificantlyreducingthe

Company’sriskprofileforfraudandcomplianceissues.

TCFD TheCommitteereceivedreportsonthestepstoachievecompliancewithTCFD,riskidentificationandrelated

mitigationplans.TheCommitteereceivedanddiscussedtheassuranceprocessforthefinalTCFDstatement.

RISK MANAGEMENT AND INTERNAL CONTROLS

Internal control structure

TheBoardoverseestheGroup’sriskmanagementandinternalcontrolsanddeterminestheGroup’sriskappetite.TheBoardhas,however,

delegatedresponsibilityforthereviewoftheriskmanagementmethodology,andtheeffectivenessofinternalcontrolstotheCommittee.

Review of control environment

FinancialcontrolimprovementshavebeenprogressedincludingthefurtherdevelopmentofaGroup-wideframeworkofcontrol,balance

sheetaccountreconciliationscontrolsandthecompletionofamanagementself-assessmentexercise.

TheCodeofEthicalConductprovidesaframeworkdocumentforthePZCussonsethicsandcompliancesystem.TheCodeissupported

byarangeofpoliciesincluding:

• Conflictsofinterestpolicy–settingexpectationsfortheavoidanceofconflicts

• Whistle-blowingpolicy–settingtheexpectationofa‘speak-up’culture

• Giftsandhospitalitypolicy–establishingthecircumstancesforgiftsandhospitality

• Insideinformationandsharedealingpolicies–ensuringcompliancewithListingRulesandMarketAbuseRegulations

• Anti-fraudpolicy–establishingazerotoleranceforfraud

• Failuretopreventthefacilitationoftaxevasionpolicy–ensuringcompliancewiththedutytopreventcriminalfacilitationoftaxevasion

• RiskManagementFramework.

Duringthepreviousyear,theBoardreviewedtheirapproachtoriskmanagementandasaresultanewGroupRiskManagement

FrameworkwasapprovedbytheAuditandRiskCommitteein2023,andhasbeenoperationalacrosstheGroupinFY24.This

complementstheworkthattheAuditandRiskCommitteehassetforthemulti-yearcontrolsimprovementplanstoaddressexisting

weaknessesidentifiedincludingupgradingthesystemsusedtorecordtradepromotions,improvingourjoiners,moversandleavers

processesthroughoptimisationofourhumanresourcessystemandaddressingoutstandingsegregationofdutyconflictswithinour

enterprisemanagementsystems.

STRATEGIC REPORT GOVE R NANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION

TheCommitteenotesthecontrolsimprovementsmadeoverthe

courseofFY24,includingthedesignandfurtherdevelopment

ofaGroup-wideframeworkofinternalcontrolsoverfinancial

reportingandanimprovementintheprocesstotrackandclose

auditactions.TheCommitteealsoreviewedandapprovedfurther

plansincludingtheworkneededtoensureappropriatematerial

controlsoverbothreportingdisclosuresandprincipalrisksarein

placeandoperatingeffectivelyinadvanceofregulatorychange.

Thisproject,enabledthroughatransformativechangeinour

financefunction,willcontinuetorequiresignificantworkin

FY25andbeyond.

INTERNAL AUDIT FUNCTION

InternalAuditisanindependentandobjectivefunctionthat

deliversassuranceovertheGroup’sgovernance,internal

controls,andriskmanagementstructures.ItassiststheGroup

inaccomplishingitsobjectivesbybringingasystematicand

disciplinedapproachtoevaluatetheeffectivenessofsystems,

processes,andcontrolsacrosstheGroup.

InternalAuditisacomponentoftheGroupInternalAuditand

Riskteam,reportingtotheCommitteeandadministrativelytothe

ChiefFinancialOfficer.TheGroupInternalAuditandRiskDirector

overseestheInternalAuditteamintheCompany'skeymarkets,

includingin-houseteamsinAfricaandAsia.IntheUK,thefunction

issupportedbyourexternalpartner,KPMGLLP.

TheGroupAuditCharterprovidestheframeworkfordischarging

theresponsibilitiesoftheInternalAuditfunction.TheAudit

CharterisapprovedannuallybytheAuditandRiskCommittee

andformallydefinesthepurpose,authority,andresponsibilities

ofInternalAudit.TheGroupInternalAuditandRiskDirector

isresponsibleforensuringthatInternalAuditfulfiltheir

responsibilitiesandmandateoutlinedinthisAuditCharter.

TheAuditandRiskCommitteeapprovestherisk-basedinternal

auditplanonanannualbasis.Anyamendmentsmadethroughout

theyearrequireCommitteeapproval.Theinternalauditplanis

continuallyevaluatedandadjustedtoensureitremainsrelevantin

lightofevolvingrisks,businesspriorities,andexternalconditions.

TheGroupInternalAuditandRiskDirectorupdatestheCommittee

onprogressandsignificantfindingsrelatedtotheInternalAudit

PlanduringCommitteemeetings.Regulardiscussionswiththe

AuditandRiskCommitteeChairandtheChiefFinancialOfficerare

undertakenbytheGroupInternalAuditandRiskDirectoroutside

theCommitteemeetingsasappropriate.

AspertheAuditCharter,anExternalQualityAssessment(EQA)

wasperformedintheyearbythirdparty,BDOLLP,thefunction

wasdeemed‘effective’withsomeimprovementopportunities

identifiedtofurtherstrengthenactivities.TheCommitteeis

satisfiedthatthecurrentarrangementsremainappropriate

andeffectivefortheCompany.

RISK MANAGEMENT

WhiletheBoardoverseestheGroup’sRiskManagementFramework,

itdelegatesresponsibilityforreviewoftheriskmanagement

methodologyandframeworkandtheeffectivenessofinternal

controlstotheAuditandRiskCommittee.TheGroupusesadefined,

standardisedandannuallyapprovedRiskManagementFramework

thatreaffirmstheBoard’srecognitionthatthemanagementofrisk

isanimportantcomponentofgoodmanagementpractice,italso

ensuresthattheGrouphasanopenandreceptiveapproachto

identifying,discussingandaddressingrisk.

TheRiskManagementFrameworkensurestheGroupidentifies,

assesses,mitigatesandmonitorsrisksthatthreatenthesuccessful

deliveryofourstrategicobjectives.Theframeworkoutlinesthe

Group’sunderlyingapproachtoriskmanagement,documents

therolesandresponsibilitiesofkeystakeholdersandoutlines

keyaspectsoftheriskmanagementmethodology.

Theriskmanagementmethodologycoversinitialrisk

identification,includingemergingrisks,assessmentand

evaluationofrisk,theextenttowhichriskscanbemitigated,

theimplementationofeffectiveriskmitigationactivities,and

theeffectivemonitoringandreportingofrisk.

TheGroupoperatesbothtop-downandbottom-upapproaches

toensurethatsignificantstrategicandoperationalrisksare

identified,includingreviewandapprovalofthePrincipalRisksas

canbeseenonpages42to50.TheGroupInternalAuditFunction

providesindependentassurancetobothmanagementandthe

CommitteeontheeffectivenessoftheGroup’sRiskManagement

Frameworkandastowhethersoundinternalcontrolsystems

operatetomitigatetheserisks.

TheCommitteehascompletedarobustassessmentofthe

Group'semergingandprincipalrisksandissatisfiedthattheRisk

ManagementFrameworkiseffective.Theframeworkcontinues

toprovideastrongfoundationforthefurtherembeddingofrisk

managementprinciplesacrosstheGroup.

SeeRiskManagementandPrincipalRiskssectiononpage 42for

furtherdetails

WHISTLE-BLOWING POLICY

TheCompanyisrequiredtomaintainamechanismforthe

confidentialreportingofsuspectedfraudandotherwrongdoing.

TheCompanyhasastandaloneWhistle-blowingPolicywhichlinks

totheCodeofEthicalConduct,thisissubjecttooversightbythe

AuditandRiskCommittee.

NavexGlobal,aleadingwhistle-blowingsystemprovider,is

engagedtoprovideatelephoneandweb-basedreportingsystem

forusewiththeWhistle-blowingPolicy.

Thewhistle-blowingsystemismaintainedbytheGroupGeneral

CounselandCompanySecretaryalongwiththeGroupHeadof

EthicsandCompliance.TheCommitteereceivesreportsonthe

effectivenessoftheWhistle-blowingPolicyandreportsregularly

totheBoardonthesematters.

CLIMATE-RELATED RISKS

TheCompanysupportstherecommendationsoftheFinancial

StabilityBoard’sTaskForceonClimate-relatedFinancial

Disclosures(TCFD).TheCommitteereceivedreportsonthesteps

toachievecompliancewithTCFD,riskidentificationandrelated

mitigationplans.TheCommitteereceivedanddiscussedthe

assuranceprocessforthefinalTCFDstatement,whichcanbe

foundonpages40to41.

Audit and Risk Committee Report continued

PZ Cussons plc / AnnualReportandAccounts2024 / Governance

STATEMENT OF COMPLIANCE

TheCompanyconfirmsthatithascompliedwiththetermsofthe

StatutoryAuditServicesforLargeCompaniesMarketInvestigation

(MandatoryUserofCompetitiveTenderProcessesandAudit

CommitteeResponsibilities)Order2014(theOrder)throughout

theyear.Inadditiontorequiringmandatoryauditre-tenderingat

leasteverytenyearsforFTSE350companies,theOrderprovides

thatonlytheAuditandRiskCommittee,actingcollectivelyor

throughitsChair,andforandonbehalfoftheBoardispermitted:

• Totheextentpermissibleinlawandregulation,tonegotiateand

agreethestatutoryauditfeeandthescopeofthestatutoryaudit

• Toinitiateandsuperviseacompetitivetenderprocess

• TomakerecommendationstotheDirectorsastotheExternal

Auditorappointmentpursuanttoacompetitivetenderprocess

• Toinfluencetheappointmentoftheauditengagementpartner

• ToauthoriseanExternalAuditortoprovideanynon-auditservices

totheGroup,priortothestartofthosenon-auditservices.

TheBoardisultimatelyresponsiblefortheGroup’ssystemof

internalcontrolsandriskmanagementanddischargesitsduties

inthisareaby:

• HoldingregularBoardmeetingstoconsiderthematters

reservedforitsconsideration

• Receivingregularmanagementreportswhichprovidean

assessmentofkeyrisksandcontrols

• SchedulingregularBoardreviewsofstrategyincludingreviews

ofthematerialrisksanduncertainties(includingemergingrisks)

facingthebusiness

• Ensuringthereisaclearorganisationalstructurewithdefined

responsibilitiesandlevelsofauthority

• Ensuringtherearedocumentedpoliciesandproceduresinplace

• SeekingassurancefromtheGroupInternalAuditfunction

• Reviewingregularreportscontainingdetailedinformation

regardingfinancialperformance,rollingforecasts,actualand

forecastcovenantcompliance,cashflowsandfinancialand

non-financialKPIs.

Notwithstandingthecontinuedfocusoncontrolsimprovement

tobedeliveredinFY25,theoverallcontrolsenvironmentofthe

Companyhasimprovedyear-on-year.

FAIR, BALANCED AND UNDERSTANDABLE

TheDirectorsarerequiredtoconfirmthattheyconsider,takenas

awhole,thattheAnnualReportandAccountsisfair,balancedand

understandableandthatitprovidestheinformationnecessaryfor

shareholderstoassesstheCompany’spositionandperformance,

businessmodelandstrategy.

TheCommitteehassatisfieditselfthatthefinancialreporting

processesandcontrolsovertheinformationpresentedinthe

AnnualReportandAccountsaresatisfactory,thattheinformation

ispresentedfairly(includingthecalculationsanduseofalternative

performancemeasures)andhasconfirmedtotheBoardthatthe

financialreportingprocessesandcontrolsaroundthepreparation

oftheAnnualReportandAccountsareappropriate,allowingthe

Boardtomakethe‘fair,balancedandunderstandablestatement’

intheReportoftheDirectorsonpage125.

FINANCIAL REPORTING

TheCompanyreportstoshareholdersonitsfinancialperformance

twiceayear.Duringthe12monthspriortothedateofthisreport,

theCommitteereviewedtheinterimfinancialstatementsforthe

sixmonthsto2December2023andthefull-yearAnnualReport

andAccountsfortheyearto31May2024.Theprincipalsteps

takenbytheCommitteeduringthepast12monthsinrelation

toitsreviewofthepublishedfinancialstatementswere:

• Reviewofthe2023interimfinancialstatementsand2023

interimannouncementandconsiderationofPwC’scomments

onthedraftsofthesedocuments

• ReviewofplanforpreparingtheAnnualReportandAccounts

fortheyearending31May2024

• Reviewofthesignificantjudgementsandestimatesthatimpact

thefinancialstatements

• ReviewoftheAnnualReportandAccountsfortheyearending

31May2024andconsiderationofPwC’scommentsonthese

documents.

TheCommitteemonitorstheimplicationsofnewaccounting

standardsandotherregulatorydevelopmentsfortheCompany’s

financialreportingandregularlyreceivestechnicalupdates

fromtheExternalAuditor.Thesetechnicalupdateshavekept

theCommitteeinformedontheUKCorporateReformandthe

expectedtimescales,theAuditMarketReformandtheproposed

introductionofUKregulationinrespectofinternalcontrolson

reportingandauditassurancepolicy.

VIABILITY STATEMENT AND GOING CONCERN

TheCommitteehasreviewedthebasisfortheCompany’sviability

statementonpage51to53thatisdraftedwithreferencetothe

financialforecastsforthenextfouryears.Inlightoftheimpact

ofrisinglivingcostsontheglobaleconomyandthedevaluation

oftheNairacurrencyinNigeriawheretheGroupoperates,the

Committeeplacedadditionalscrutinyontheassumptionsused

intheforecaststoensuretheyareappropriate.TheCommittee

providesadvicetotheBoardontheviabilitystatement.

TheCommitteeensuredsufficientreviewwasundertakenofthe

adequacyofthefinancialarrangementsandcashflowforecasts.

Accordingly,theCommitteerecommendedtotheBoardthatthis

statementbeapproved.

Similarly,theCommitteeplacedadditionalfocusonthe

appropriatenessofadoptingthegoingconcernbasisinpreparing

theGroup’sfinancialstatementsfortheyearended31May2024

andsatisfieditselfthatthegoingconcernbasisofpresentationof

thefinancialstatementsandtherelateddisclosureisappropriate.

TheDirectorsnotethataseverebutplausibledownsidescenario

againsttheGroup’sFY25forecastofadeclineintheNaira

exchangerateofmorethan10%,ifnotcounteredbymanagement

mitigations,couldresultinabreachoftheGroup’sinterestcover

covenantasat29November2024.Furtherdetailsareprovided

onpage51.

Vivek Ahuja

Audit and Risk Committee Chair

18September2024

STRATEGIC REPORT GOVE R NANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION

Environmental and Social Impact Committee Report

ON BEHALF OF THE BOARD,

THE COMMITTEE WAS

PLEASED TO APPROVE

THEDEI STRATEGY FOR

THE GROUP.

COMMITTEE MEMBERSHIP AND ATTENDANCE

Committee members

Member since Attendance

ValeriaJuarez

2022 3/3

Jonathan Myers 2022 3/3

KirstyBashforth 2022 3/3

1 DirectorsDavidTyler,SarahPollard,JohnNicolson,DariuszKucz,JeremyTownsend

andJiteshSodhasteppeddownfromtheCommitteeon19June2023.

2 AppointedasChairoftheCommitteeon19June2023.

DEAR SHAREHOLDERS,

On behalf of the Board, and as Chair of the Environmental and

Social Impact (ES) Committee, I am pleased to present its report

for the year ended 31 May 2024.

TheCommitteeispleasedtoreportthecontinuedprogress

againstthegoalssetoutintheGroup'sESstrategy.Duringthe

year,theCommitteereviewedtheGroup'sESprioritiesand

initiativestoensuretheeffectivenessoftheprogrammeand

itsalignmentwithourwiderstrategicgoals.

TheCommitteeoverseesandmonitorsperformanceagainstthe

Company’ssustainabilitystrategyandgoalsandhowPZCussons

considers,engageswith,reportstoandmaintainsitsreputation

withkeystakeholders.TheCommitteeissupportedbythe

ExecutiveCommitteethroughitsESForumwhichoversees

theexistingandfutureworkstreamswithintheCompanyon

importantESmattersandtheSustainabilitySteeringGroupwhich

comprisesrepresentativesfromacrossourdifferentmarketsand

businessfunctions.

InaccordancewiththeTermsofReference,theCommitteemet

threetimesintheyear.OnlymembersoftheCommitteeare

entitledtoattendthemeetings.However,otherDirectorsand

otherindividualsmaybeinvitedtoattendforallorpartsofany

meetingasandwhenappropriate.TheCompanySecretaryacts

assecretarytotheCommittee.

TheCommittee’sTermsofReferencewereupdatedintheyear

toreflecttheCommittee’srevisedremitandresponsibilityfor

environmentalandsocialimpactmattersandtoensurethat

theyarecompatiblewiththeCorporateGovernanceCode2018

(the2018Code).

Valeria Juarez

Environmental and Social Impact Committee Chair

PZ Cussons plc / AnnualReportandAccounts2024 / Governance

COMMITTEE ROLE

• RegularlyreviewtheGroup’sESstrategyand

performancetargets

• MonitorprogressbytheGroupagainstitsESstrategyandgoals

• OverseehowtheGroupengageswithkeystakeholdersonES

• Considertheclimate-relatedriskandopportunitiesfacing

the Group.

PRIORITIES FOR 2025

• ContinuouslyreviewtheGroup’sESstrategyandgoalsand

monitorprogressagainsteach

• Ensurerequiredprocessesandcapabilitiesareinplaceto

deliverthegoals

• Overseetheimplementationandembeddingofthe

UNGlobalCompact

• FurtherembedtheDEIstrategyandgoalsandthedevelopment

oftargetsandmetrics

• FurtheroptimiseESreporting.

DetailedresponsibilitiesaresetoutintheCommittee’s

TermsofReference,whichcanbefoundontheCompany’s

websitewww.pzcussons.com

ACTIVITIES OF THE COMMITTEE DURING THE YEAR

Diversity, Equity and Inclusion (DEI) strategy

FollowingthecompletionofanexternalDEImaturityassessment,

aDEIstrategywasdevelopedtoformalisetheCompany’sclear

intentionandcommitmenttoaccelerateandfocusonDEIand

wasapprovedbytheCommitteeinNovember2023.Thestrategy

waslaunchedacrossthebusinessonInternationalWomen’sDay

inMarch2024.TargetsandmetricswillbesetforFY25tomonitor

progressagainstthestrategyduringthecomingyear.

UN Global Compact

TheCommitteesupportedtheExecutiveCommittee’s

recommendationtoseektojointheUNGlobalCompactand

committoaligningourstrategyandoperationstoitstenprinciples

regardinghumanrights,labour,theenvironmentandanti-

corruption.TheCompanywassuccessfulinbeingacceptedasa

participantinDecember2023.Thisstrengthensourcommitment

totheUN17SustainableDevelopmentGoals(SDGs)andtheir

associatedtargets.

Charity Partnership Framework and Business for

Societal Impact (B4SI)

Duringtheyear,theCommitteesupportedtheroll-outofthe

CharityPartnershipFramework,toaligncommunityactivity

withcorporatepurposeandtooptimisethesocialimpactof

ourpartnerships.Alongsidetheroll-out,theCompanyhasalso

adoptedtheBusinessforSocietalImpact(B4SI)framework

tobetterassess,measureandreviewthesocialimpactofour

partnershipsandcharitableinvestmentonindividuals,the

community,theenvironmentandthebusiness.

Carbon-neutrality and reduction commitments

TheCommitteeispleasedtoseethattheCompanyisontrack

tomeetingitstargetstoreduceandoff-setitsGHGemissions.

InFY24,PZCussonsachievedcarbonneutralityinitsUK,Beauty,

ANZandAsianoperationsandisontracktoreachcarbon

neutralityacrossitsglobaloperationsby2025.TheCompanyis

alsoontracktoreachitsnearandlongtermambitiontoreduce

emissions:a42%reductioninScopes1and2againstthe2021

baselineby2030andnetzeroacrossScopes1,2and3by2045.

TheneartermgoalwasachievedinFY24astheGroupreported

a42.8%reductioninScopes1and2againstthe2021baseline.

TheCommitteewillcontinuetomonitorandadviseonprojects

whichwillbestachievethesetargets.

Plastic and packaging reduction

InFY24,wereducedtheuseofvirginplasticinourpackagingby

9.2%vsbaselineand85.6%ofourpackagingisnowrecyclable,

reusableorcompostable.InAustralia,MorningFreshhas

commencedincorporationofPostConsumerRecycledmaterials

(PCR)intoitsmanualdishwashingrangeofproducts.

ES strategy

Throughouttheyear,theCommitteemonitoredprogress

againstthegoalssetoutintheGroup’sESstrategy.Thestrategy

providesoperationalfocusand,alongsideasetofclearlydefined

performancetargets,supportstheCompanyinachievingitsgoals.

TheCommitteehasreviewedoverallinitiativesacrosstheCompany

andprioritisedthecriticalinitiativestodelivertheESstrategy.

MoreinformationabouttheESstrategycanbefoundonpage 28

Valeria Juarez

Environmental and Social Impact Committee Chair

18September2024

STRATEGIC REPORT GOVE R NANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION

Remuneration Committee Report

FIRST YEAR

IMPLEMENTATION OF

THE REMUNERATION

POLICY.

COMMITTEE MEMBERSHIP AND ATTENDANCE

Committee members Member since Attendance

KirstyBashforth 2019 5/5

JeremyTownsend

2020 n/a

JiteshSodha 2021 5/5

ValeriaJuarez

2021 4/5

1 SteppeddownfromtheCommitteeon19June2023priortothefirstmeeting

oftheyearandtheBoardon28February2024.

2 DidnotattendtheinterimAugust2023meeting.

DEAR SHAREHOLDERS

On behalf of the Board, I am pleased to present our 2024

Remuneration Committee Report. This report is divided into

three sections as set out below.

(1)ThisRemunerationCommitteeChairStatement–providing

asummaryofkeyrewardactivityduringtheyear.

(2)TheDirectors’RemunerationPolicy(thePolicy)–our2023–26

Policyasapprovedbyourshareholdersinabindingvoteatour

2023AnnualGeneralMeeting(AGM)on23November2023.

(3)TheReportonDirectors’Remuneration–settingouthowthe

Directors’RemunerationPolicywasappliedthroughoutFY24

andhowtheCommitteeintendstoapplyitinFY25.

Iwouldliketostartmystatementbyacknowledgingthe2023

AGMvoteonthe2023–26Policy.ThePolicywasproposedafter

thoroughengagementandconsultationwithmajorshareholders

andIwouldliketoexpressmyappreciationforthetimetaken

tomeetwithme,thelevelofengagementandthefeedback

givenduringthosemeetings.WhiletheCommitteewaspleased

thatover70%ofshareholdersvotedforthe2023–26Policy,it

understandsthatthevotesagainstwereprimarilyattributable

totheadoptionofaRestrictedSharePlan(RSP)whereanumber

ofshareholdersexpressedopposingviewsduringconsultation.

TheCommitteeprovidedanexplanationintheFY23Directors'

RemunerationReportofthereasonsforthemigrationtoaRSP,

whichincludedaneedtoprovidecompetitivevariablepayforits

seniorleadershipandtoaligntheinterestsoftheexecutivewith

thelong-terminterestsofourshareholders.

TheCommittee'sviewisthatitactedinthebestinterestsofthe

Companyandallitsstakeholders,howevertheCommitteewill

keepinmindtheviewsexpressedbyshareholdersonthisissue

asitplansforfutureamendmentsandrenewalsoftheDirectors'

RemunerationPolicy.

Kirsty Bashforth

Remuneration Committee Chair

PZ Cussons plc / AnnualReportandAccounts2024 / Governance

COMMITTEE ROLE

• Toset,developandoverseetheimplementationoftheDirectors’RemunerationPolicyfortheExecutiveDirectorsandsenior

executives,havingregardfortheremunerationprinciplesofthewiderorganisationandtherelationshipbetweentheremuneration

ofthemembersoftheBoardandthewideremployeepopulation

• ToevaluatetheperformanceofanddeterminespecificremunerationpackagesforeachExecutiveDirector,theChair,theCompany

Secretaryandtheotherseniorexecutives

• Tomaintainanactivedialoguewithstakeholders,ensuringthattheshareholdersandotheradvisorybodies’viewsaretakeninto

accountwhensettingtheremunerationofseniorexecutivesandmembersoftheBoard.

DetailedresponsibilitiesaresetoutintheCommittee’sTermsofReference,

whichcanbefoundontheCompany’swebsite: www.pzcussons.com

BUSINESS CONTEXT FOR THE YEAR ENDED 31 MAY 2024

TheGroup'sfinancialperformanceinFY24fellbelowourinitial

expectations,largelyasaresultoftheadverseimpactofthe

devaluationoftheNigerianNairawhichtookplaceinJune

2023.Thisresultedinasignificantdeclineinreportedrevenue,

operatingprofitandearningspershare.Asaresult,theBoard

hasannounceditsintentiontodeclareaninterimdividendof

2.10pcomparedtolastyear'sfinaldividendof3.73ppershare,

representingafullyeardividendof3.60p.

TheCommitteeconsidersthatthebusinessdeliveredimproved

financialperformanceinanumberofareas,includingintheUK

andANZ,whilemakingkeyinterventionsintheNigerianbusiness

tolimittheimpactofthedevaluation.TheGroupalsomadegood

progressagainstitsstatedstrategicprioritiesforFY24.Inparticular:

• Simplifying and strengthening Nigeria:theGroupimproved

itssourcingofUSDollarsinNigeriawhichhasenabledthe

repatriationofcashsoastopaydownSterling-denominated

borrowingsandreducestheriskoffurtherdevaluation.

• UK growth:theGroupdeliveredstrongrevenuegrowthinits

UKPersonalCarebusiness–withdouble-digitgrowthinOriginal

Source,ImperialLeatherandChildsFarmandwithCarexback

ingrowth.

• Expansion from the core:ChildsFarmhaslaunched

successfullyintheUSandGermany,andthebrandasawhole

hasdeliveredanotheryearofdouble-digitgrowth.

Furthermore,inApriltheGroupannounceditsplanstomaximise

shareholdervaluethroughthedisposalofSt.Tropezandthrough

aprocesstoevaluatestrategicoptionsfortheAfricaportfolio.The

announcementfollowsastrategicreviewoftheGroup'sportfolio

ofbrandsandgeographies.

REMUNERATION DECISIONS YEAR ENDED 31 MAY 2024

Variable remuneration earned during the year

TheCommitteecarefullyconsideredtheprogressmade

bymanagementduringtheyear,theimpactofthetrading

environmentonGroupperformanceandtheexperienceofboth

theshareholdersandwiderworkforcethroughthefinancialyear

whenreviewingincentiveplanoutturns.Asummaryofdecisions,

andthecontextinwhichtheyweremade,follows.

Annual bonus payout

Assetoutinlastyear'sreport,wemadeanumberofchangestothe

annualbonusforFY24.Were-weightedtheprofitmeasureto50%

from40%,therevenuemeasureto20%from30%andmaintained

theweightingofthecash-basedmeasureat10%.Wealsomoved

toAdjustedOperatingProfitfromProfitBeforeTaxandFreeCash

FlowfromNetWorkingCapital.Assetoutpreviously,theuseof

AdjustedOperatingProfitreducesvolatilityandthepotentialfor

windfallgainswhileprovidingenhancedfocusonaligningpaywith

profitability.FreeCashFlowisamorecomprehensivemeasureof

theCompany’sabilitytogeneratecash,explicitlyconsideringthe

costofcapitalinvestment.Theapproachtokeybusinessobjectives

wasalsoupdatedforFY24tofurtheralignthemwithourstrategy

andkeyprioritiesforFY24.

TheCommitteereviewedthebonusoutcomeinthecontext

ofoverallGroupperformance,takingintoconsiderationthe

experienceofthekeystakeholders,includingemployeesand

shareholdersduringtheyear.TheCommitteeconsideredboth

thedriversandoutcomesofadjustedandstatutoryfinancial

performance,togetherwiththeindividualcontributionofthe

CEOandCFOinnavigatingachallengingenvironment,particularly

inourAfricabusinesswhichwasmateriallyimpactedbya

volatileandlargedevaluationoftheNigerianNaira.Takingall

thesefactorsintoaccount,theCommitteeexerciseddownwards

discretionof2.2%forfinancialperformancefortheExecutive

Directors.Postthisadjustment,theCommitteeconcludedthatthe

bonusoutcomewasafairreflectionofunderlyingandindividual

performanceandagreedthefollowing:

• 51.4%ofthe80%ofmaximumopportunityofbonusassessed

againstfinancialperformancewasachieved.Fulldetailsof

thetargetsandperformanceagainstthemcanbefoundon

pages108and109.

• TheCommitteealsoassessedtheperformanceagainstthekey

businessobjectivesanddeterminedthat15%oftheavailable

20%wasearnedforbothExecutiveDirectors.

• Assuch,66.4%ofthemaximumbonuswasearnedbytheCEO

andCFO,resultinginawardsof99.6%ofsalaryfortheCEOand

83.0%ofsalaryfortheCFO.40%ofthebonusearnedwillbe

deferredintosharesfortwoyears,achangefromtheprevious

Policywhere25%wasdeferredforthreeyears.Fulldetailsof

theperformanceassessmentagainstboththefinancialandkey

businessobjectivescanbefoundonpages108and109.

STRATEGIC REPORT GOVE R NANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION

Vesting of the FY22 Performance Share Plan (PSP)

PSPawardsrelatingtotheyearended31May2022(FY22)were

basedonthreekeyperformanceindicators:60%EarningsPer

Share(EPS)growth,20%revenuegrowthfromMustWinBrands

measuredrelativetogrowthinrevenuefromPortfolioBrandsand

20%relatingtosustainabilitytargets.BoththeEPSgrowthand

revenuegrowthtargetswerenotmet.

Theelementrelatingtosustainabilitywasbasedonthreekey

measures,(i)ethicalsourcing,(ii)CarbonDisclosurePerformance

and(iii)ouremployeeengagement,eachofwhichdeterminethe

vestingofone-thirdofthe20%portionoftheawardbasedon

sustainability.Assessmentoftheperformanceagainstthesethree

measuresissetoutinfullonpage112andresultsin8.67%ofthe

maximumawardvesting,equivalentto13.0%fortheCEOand

10.8%fortheCFO.

Board changes

JeremyTownsendsteppeddownfromtheCommitteeon19June

2023andtheBoardon28February2024.Iwouldliketotakethis

opportunitytothankJeremyforhiscontributiontotheCommittee

overthecourseofhismembership.

VivekAhujajoinedtheBoardasaNon-ExecutiveDirectoron

1May2024.HehaschairedtheAuditandRiskCommitteesince

hisdateofjoiningandisamemberoftheNominationCommittee.

TheNon-ExecutiveDirectorfeespayabletoJeremyandVivek

duringFY24wereagreedbytheBoardandpro-ratedtoreflect

thetimeeachservedontheBoard.DetailoffeespaidtoNon-

ExecutiveDirectorsduringFY24canbefoundonpage107.

OUR APPROACH TO REMUNERATION FOR THE YEAR

ENDING 31 MAY 2025

ThekeychangestotheimplementationofpayforFY25include:

Base salaries

ThebasesalariesfortheCEOandCFOhavebeenincreased

by4%to£665,600and£416,000respectivelywitheffectfrom

1September2024.Thisisbelowtheaverageincreaseforthe

wideremployeepopulationintheUK.

FY25 annual bonus

FortheFY25annualbonus,theAdjustedOperatingProfitmeasure

hasbeenincreasedfrom50%to60%andtheFreeCashFlow

measurefrom10%to20%toprioritisefocusfortheExecutive

Directorsonprofitabilityandcashmanagement.Whilebelow

thePolicylevel,toalignbehaviours,revenueremainsaweighted

bonusmetricforlocalleadersandwillbeconsideredaspartofthe

Committee'sholisticreviewoffinancialperformanceattheendof

theyear.Theremaining20%continuestobelinkedtokeybusiness

objectives,whichhavebeenupdatedtofurtheralignthemwithour

strategyandkeyprioritiesforFY25.Moredetailontheweightings

andmeasuresisprovidedonpage110.Aminimumof40%ofthe

bonusearnedwillbedeferredintosharesforatleasttwoyears.

Therearenochangestothethreshold,targetormaximumlevel

ofaward.

TheCommitteesettheFY25annualbonustargetsona

business-as-usualbasisnotwithstandingtheCompany’srecent

announcementthatitintendstoselltheSt.Tropezbrandandwill

undertakeastrategicevaluationofGroupoperationsinAfrica.

TheCommitteewillreviewtheappropriatenessofthetargets

setortheoutcomeoftheFY25annualbonusshouldasale

occur,andalsofollowingthestrategicreview,toensurethatthe

originaltargetsremainappropriatelystretchingandthattheFY25

annualbonusoutcomeisafairreflectionofunderlyingfinancial

performanceandtheshareholderexperience.

FY25 RSP awards

AtthetimetheCommitteeapprovedtheFY25RSPawardfor

theExecutiveDirectors,itnotedthesharepriceperformance

sincethepreviousyear'sgrantandparticularlythelinkbetween

thelargestdevaluationinthehistoryoftheNigerianNaira,

theprudentrevisionintheFY24profitoutlookandreduction

inthehalf-yeardividend.TheCommitteealsoconsideredthe

proactivestepstakenbyleadershiptomitigatetheimpactof

this,includingdeliveryoftherevisedprofitoutlookforFY24and

theannouncementofthesaleofSt.Tropezandstrategicreview

ofoperationsinAfrica,aswellastheimpactontheexisting

shareholdingsoftheCEOandCFO.

Basedonthis,theCommitteeconcludedthatitwouldnotbe

appropriatetoreducetheleveloftheFY25RSPawardandas

such,theCEOwillbegrantedanawardof90%ofsalaryandthe

CFO,75%ofsalary.TheCommitteedoesnotbelievethereisarisk

oftheCEOandCFObenefitingfroma'windfallgain',however,the

Committeewillconsiderthisandtherelevantunderpinswhen

determiningthelevelofvestingattheendofthethree-year

vestingperiod.Thefollowingunderpinswillcontinuetobeapplied

fortheFY25award:

• Nomaterialweaknessintheunderlyingfinancialhealthor

sustainabilityofthebusiness.

• Maintenanceofappropriategovernanceframeworks,including

acceptablecontrolsandcomplianceperformanceandnoevents

thatresultinsignificantreputationaldamagetotheCompany

(asdeterminedbytheBoard).

• ToensureongoingfocusonourcriticalESGcommitments,

satisfactoryperformanceagainstenvironmentalandsocietal

commitments.

TheCommitteeretainsthediscretiontoreducevesting,

potentiallytonil,subjecttoperformanceagainsttheunderpins

acrossthevestingperiod.

Non-Executive Director fees

TherewillbenofeeincreaseforNon-ExecutiveDirectorsin

FY25.ThisfollowsacomprehensivereviewoffeesinFY24and

anincreasetothebasefeeandAuditandRiskCommitteeand

RemunerationCommitteeChairfeesfrom1September2023

asdisclosedinlastyear'sreport.

FurthersummarydetailsonhowweintendtoimplementthePolicyin

FY25aresetoutinthe‘Ataglancesummary’onpages 96 and 97with

fulldetailsonpages 98 to 106

Remuneration Committee Report continued

PZ Cussons plc / AnnualReportandAccounts2024 / Governance

Wider employee experience

TheCommitteecontinuestotakeaccountofremuneration

policiesandpracticesacrosstheGroupwhenconsideringthe

remunerationarrangementsfortheExecutiveDirectorsandother

seniorexecutives.Duringtheyear,therewereanumberofchanges

totheExecutiveCommittee,reflectingchangestothestructureof

thebusiness.TheCommitteecarefullyconsideredtheremuneration

approachforthewideremployeegroup,alongsiderelevantmarket

datawhenmakingremunerationdecisionsforthisgroup.

Updatesonthewideremployeeexperiencecontinuetobe

regularlyprovidedtotheCommitteebythemanagementteam,

particularlyinlightoftheongoingchallengingmacro-economic

environment.InmyroleasdesignatedNon-ExecutiveDirector

foremployeeengagement,aswellasChairoftheRemuneration

Committee,ImetagainwiththeHRLeadershipTeamduringthe

year,todiscusstheGroupremunerationstrategyandcontext.Once

again,thiswasawide-rangingdiscussionthatgavetheCommittee

goodinsightsintoourcolleagues’viewsonremuneration.Ialso

hadtheopportunitytojoinanumberofengagementsessions

withemployeeswhichaddedfurthercontext.

Thekeyremunerationactivitiesforthewideremployee

populationforFY24consideredbytheCommitteewhenmaking

itsdecisionsaresetoutbelow:

• Employeesalarylevelscontinuetobereviewedannuallyagainst

arangeofrelevantfactorswhichincludemarketdata,economic

forecastsandGroupfinancialbudgets.Thesalaryincrease

budgetforFY24forUK-basedemployeeswas5%,withsalary

awardsbasedonindividualperformance,assessedthroughour

performancemanagementprocess.Manyofourothermarkets

wereabovethistoreflectlocaleconomicfactorsandourneed

toattractandretainthetalentneededtodeliverourambitious

strategy.Forexample,thebudgetinNigeriawas23%andin

Indonesiawas6%.

• Wealsocontinuedtomonitorandreviewthesupportwe

offeredouremployeesduringthecost-of-livingchallenges

facingmanyofourmarkets.Thisremainedparticularlyevident

inAfricawhereweonceagainmadeone-offpaymentstosupport

ourpeople.Thebusinesscontinuestokeepthisunderreview.

• ForFY24,allbonusesforeligibleemployeescontinuedto

includeanelementofGroupperformance.Thisgavethe

potentialforemployeestoberewardedfortheircontributionto

theoverallsuccessofthePZCussonsGroupaswellastheirown

businessunit.Ourleaderscontinuetohaveanelementrelating

totheirpersonalcontribution.

• Wecontinuetorewardcriticaltalentandsupportretention

bygrantingshareawardsintheformofRSPstoseniorleaders

andmanagers.WebelievethattheuseofRSPsenablesthe

Companytocompeteinternationallyforthebestexecutive

talentandprovidesapowerfultooltohelpretainandmotivate

keymembersofourcurrentandfutureleadershipteams.

Theseawardsarewellreceivedbyparticipants.

• TheShareIncentivePlan(SIP),launchedin2021,created

furtheralignmentbetweenemployeesandinvestors.Under

HMRCrules,onlyUKemployeescanparticipate.Thecurrent

take-upoftheSIPis39%.Arangeofmarket-alignedincentives

areappliedinothercountriestoprovideshareholderalignment.

Concluding remarks

InreachingitsdecisionsonDirectors'remunerationforFY24and

FY25,theCommitteecarefullyconsideredthereportedfinancial

performanceoftheGroupalongsidethestrategicprogressthat

hasbeenmade,aswellasourshareholderandwiderstakeholder

experience.TheCommitteebelievesthatdecisionsmade

reflectunderlyingfinancialandindividualperformance,andthe

approachforFY25continuestosupportclearalignmentbetween

remunerationandkeyareasofstrategicfocus.Iwelcomeyour

viewsonanyofthematterssetoutinthisreportandlookforward

togainingyoursupportattheAGM.

Kirsty Bashforth

Remuneration Committee Chair

18September2024

STRATEGIC REPORT GOVE R NANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION

Remuneration Committee Report continued

AT A GLANCE SUMMARY: DIRECTORS’ REMUNERATION AND HOW IT WILL BE IMPLEMENTED IN FY25

TheCommitteeisresponsiblefordetermining,andagreeingwiththeBoard,theDirectors’RemunerationPolicyandhasoversightofits

implementation,inlinewithitsclearTermsofReference.

ThefollowingtablesetsoutasummaryoftheDirectors’RemunerationPolicyasapprovedbyshareholdersattheNovember2023AGM

andhowitwillbeimplementedinFY25.Fulldetailisprovidedonpages98to106.

Key policy features Implementation in FY24 Proposed approach for FY25

Salary

Base salaries are normally

reviewedannuallytakinginto

accountanumberoffactors

includingsizeofrole,performance

andexperienceoftheindividual

andpayincreasesacrossthe

widerworkforce.

Salaries from 1 September 2023:

• CEO:£640,000

• CFO:£400,000.

Salaries from 1 September 2024:

• CEO:£665,600(4%increase)

• CFO:£416,000(4%increase).

Pension/benefits/all-employee share schemes

ExecutiveDirectorswillreceive

pensionbenefitsinlinewiththose

generallyprovidedtoemployees

inthelocationinwhichthey

arebased.

Directorsreceivemarket

competitivebenefitsandmay

participateinall-employee

benefitarrangements.

CEOandCFO:10%ofsalaryinlinewithUK

employeepopulation.

CEOandCFO:10%ofsalaryinlinewith

UKemployeepopulation.

Annual bonus

Incentiveschemewhichfocuses

Directorsondeliveryofannual

goalsandmilestoneswhichare

consistentwiththeGroup’slonger-

termstrategicaims.

Opportunity:

Policymaximumof150%ofsalary.

MaximumbonusforFY24:

• CEO:150%ofsalary

• CFO:125%ofsalary.

Performance metrics:

• 50%:AdjustedOperatingProfit

• 20%:Revenuegrowth

• 10%:FreeCashFlow

• 20%:Keybusinessobjectives.

Actualbonusoutcomeof66.4%ofmaximum

fortheCEOandCFO.

40%ofanybonusearneddeferredintoshares

fortwoyears.

Opportunity:

Policymaximumof150%ofsalary.

MaximumbonusforFY25:

• CEO:150%ofsalary

• CFO:125%ofsalary.

Performance metrics:

• 60%:AdjustedOperatingProfit

• 20%:FreeCashFlow

• 20%:Keybusinessobjectives.

40%ofanybonusearneddeferredintoshares

fortwoyears.

PZ Cussons plc / AnnualReportandAccounts2024 / Governance

Key policy features Implementation in FY24 Proposed approach for FY25

Long-Term Incentive Plan (LTIP)

LTIPwhichfocusesongenerating

sustainedshareholdervalueover

thelonger-termandaligningthe

Directors’interestswiththoseof

theCompany’sshareholders.

RestrictedSharePlan(RSP)subjectto

underpins.

Opportunity:

AwardsmadeinFY24totheCEOandCFO

equivalentto:

• CEO:90%ofsalary

• CFO:75%ofsalary.

Underpins:

ThevestingoftheRSPissubjecttothe

underpinssetoutbelow.TheCommitteeretains

theabilitytoreducevesting(includingtonil)

subjecttotheunderpinsmeasuredoverthe

vestingperiod.Theunderpinsare:

• Nomaterialweaknessintheunderlying

financialhealthorsustainabilityof

thebusiness

• Maintenanceofappropriategovernance

frameworks,includingacceptablecontrols

andcomplianceperformanceandnoevents

thatresultinsignificantreputationaldamage

totheCompany(asdeterminedbytheBoard)

• ToensureongoingfocusonourcriticalESG

commitments,satisfactoryperformanceagainst

environmentalandsocietalcommitments

• Aholdingperiodappliesfortwoyears

followingvesting(i.e.fiveyearsfromgrant).

Recoveryandwithholdingprovisionsapply.

RestrictedSharePlan(RSP)subjecttounderpins.

Opportunity:

AwardsmadeinFY25totheCEOandCFO

equivalentto:

• CEO:90%ofsalary

• CFO:75%ofsalary.

Underpins:

Therearenochangestotheunderpinsorholding

periodforFY25.

Recoveryandwithholdingprovisionscontinue

to apply.

Shareholding guidelines

AlignmentoftheExecutive

andNon-ExecutiveDirectors’

interestswiththoseofthe

Group’sshareholders.

RequirementforExecutiveDirectorstobuildup

interestsintheCompany’ssharesworth200%

ofsalary.

ExecutiveDirectorswillbeexpectedtoretaina

minimumofhalftheafter-taxnumberofvested

sharesfromcurrentPSPandRSPawardsuntil

theysatisfytheshareholdingguideline.

TheChairandNon-ExecutiveDirectorsare

expectedtobuildupinterestsintheCompany’s

sharesworth100%oftheirnetbasefeewithin

fouryearsofappointment.

NochangeforExecutiveDirectors,Chairand

Non-ExecutiveDirectors.

CurrentshareholdingoftheExecutiveDirectors

andNon-ExecutiveDirectorsisshowonpage114.

STRATEGIC REPORT GOVE R NANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION

Remuneration Policy

DIRECTORS’ REMUNERATION POLICY

ThispartofthereportsetsouttheDirectors’RemunerationPolicy

andcomplieswiththerelevant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).Ithasalsobeenpreparedtakingintoaccountthe

2018UKCorporateGovernanceCode(the2018Code)andthe

requirementsoftheUKLAListingRules.

TheDirectors’RemunerationPolicyreceivedapprovalthougha

bindingvoteatthe2023AGMheldon23November2023.The

RemunerationPolicy;asapprovedbyshareholders,canbefound

intheAnnualReport&FinancialStatements2023ontheCompany

website:www.pzcussons.com/investors/general-meetings.

TheCommitteeconsideredtheprincipleslistedinthe2018Code

whendesigningtheDirectors’RemunerationPolicyandtookthese

intoaccountinitsdesignandimplementation:

Clarity, simplicity and balance: Remunerationarrangements

havedefinedparameterswhicharetransparentlycommunicated

toshareholdersandotherstakeholders,includingmaximum

incentivequantumandincentiveplanpay-outschedules.Withthe

proposedintroductionoftheRSP,wehavesoughttosimplifyour

remunerationarrangementsfurther,whilemaintainingfocusand

balancebetweenshort-andlong-termperformance.

Linked to the strategy and performance of the business:Our

remunerationframeworksincentivisebothshort-termobjectives

throughtheannualbonusplanandourlong-termtransformation

objectivesandshareholdervaluecreationthroughourRSP.

DIRECTORS’ REMUNERATION POLICY TABLE

ThecomponentsofExecutiveDirectors’remunerationaredescribedbelow:

Element Purpose and link to strategy Operation Maximum opportunity Performance measures

Fixed remuneration

Base salary Toprovideanappropriatelevelof

fixedcashincometorecruitand

retaintalentthroughtheprovision

ofcompetitivelypositioned

basesalaries.

Basesalariesarenormallyreviewedannuallytakingintoaccount:

• ThescopeoftheroleandthemarketsinwhichPZCussonsoperates

• Theperformanceandexperienceoftheindividual

• Paylevelsinotherorganisationsofasimilarsizeandcomplexity

• PayincreaseselsewhereintheGroup.

ToavoidsettingexpectationsofExecutiveDirectorsandotheremployees,

thereisnooverallmaximumforsalaryincreasesunderthispolicy.

Salaryincreasesarereviewedinthecontextofsalaryincreasesacross

thewiderGroup.

AnyincreaseinexcessofthoseelsewhereintheGroupwouldbe

consideredverycarefullybytheCommittee.Fulldisclosurewouldbe

includedintherelevantRemunerationReport.Thecircumstancesin

whichhigherincreasesmaybeawardedincludebutarenotlimitedto:

• Anincreaseinthescopeand/orresponsibilityofarole

• AnincreaseuponpromotiontoExecutiveDirector

• Whereasalaryhasfallensignificantlybelowmarketpositioning

• ThetransitionovertimeofanewExecutiveDirectorrecruitedona

belowmarketsalarytoamorecompetitivemarketpositioningasthe

ExecutiveDirectorgainsexperienceintherole.

None,althoughoverallperformanceoftheindividualisconsidered

bytheCommitteewhensettingandreviewingsalaries.

Benefits Recruitmentandretentionof

seniorexecutivetalentthrough

theprovisionofacompetitively

positionedandcost-effective

benefitspackage.

Benefitsthatmaybeprovidedincludecarbenefits,lifeassurance,healthinsurance

foreachExecutiveDirectorandfamily,permanenthealthcoverandpersonal

taxadvice.

ExecutiveDirectorsmayalsoparticipateinanyall-employeeshareorbenefitsplans

onthesamebasisasanyotheremployees.

Whererelevant,additionalbenefitsmaybeofferedifconsideredappropriateand

reasonablebytheCommittee,suchasassistancewiththecostsofrelocation.

Themaximumopportunitywillbebasedonthecostofprovidingthe

benefits.ThiswillbesetatalevelthattheCommitteeconsidersappropriate

toprovideasufficientlevelofbenefitbasedonindividualcircumstances.

Notapplicable.

Provision for

retirement

DesignedtoenableanExecutive

Directortogenerateanincome

inretirementandtoprovidean

overallremunerationpackagethat

iscompetitiveinthemarket.

Participationinadefinedcontributionpensionplanorprovisionofacash

allowanceinlieuofapensioncontribution.

ACompanypensioncontributioninlinewiththerateprovidedto

thewiderworkforceinthecountrytheExecutiveDirectorisbased.

FortheUK,thisiscurrently10%ofbasesalaryinrespectofeach

financialyearintotheschemeonbehalfoftheExecutiveDirector

(or cash payment in lieu).

Notapplicable.

PZ Cussons plc / AnnualReportandAccounts2024 / Governance

Shareholder value and alignment:Remunerationshouldsupport

andalignwithourshareholders'long-terminterestsbylinking

theannualbonustoourkeystrategicmeasuresandhaving

therightunderpinsinplacefortheRSP.Ourincreasedbonus

deferral,alongsideourRSP,deliversasignificantproportionof

remunerationinshares,someofwhichhavetoberetainedin

linewithourshareholdingguidelines.Wearealsointroducinga

shareholdingguidelineforourNon-ExecutiveDirectorstoensure

aconsistentfocusonsustainablegrowthofshareholdervalue.

Alignment to culture, purpose and the wider workforce:

Ourpurpose–ForEveryone,ForLife,ForGood–supports

theapproachofcascadingdowntheDirectors’remuneration

arrangementsthroughtheorganisationasappropriate,ensuring

thattherearecommongoalsandoutcomes.TheCommittee

reviewsremunerationarrangementsthroughouttheCompanyand

takestheseintoaccountwhensettingDirectors’remuneration.

Risk, proportionality and governance:Ourincentiveplansare

designedtohavearobustlinkbetweenpayandperformance,by

usingGroupkeyperformanceindicatorsthroughtheannualbonus

andRSPunderpins.TheCommitteeisabletoexercisediscretionto

adjustincentiveoutturnsattheendoftheperformanceperiodto

mitigateanyriskofpaymentforfailure,oranyriskthatExecutives

havebeenundulypenalisedbythestructureoftheincentive.

Provisionsarealsoinplacetoallowfortheapplicationof

clawbackand/ormalusinspecificcircumstances.

Predictability:TheCommitteeseekstomaintainaconsistent

approachtoitsannualdutiesincludingsettingtargetsand

underpins,reviewingincentiveoutturnsandsalaryreview.

Consistencyofprocesshelpstoensureconsistencyofoutcomes.

DIRECTORS’ REMUNERATION POLICY TABLE

ThecomponentsofExecutiveDirectors’remunerationaredescribedbelow:

Element Purpose and link to strategy Operation Maximum opportunity Performance measures

Fixed remuneration

Base salary Toprovideanappropriatelevelof

fixedcashincometorecruitand

retaintalentthroughtheprovision

ofcompetitivelypositioned

basesalaries.

Basesalariesarenormallyreviewedannuallytakingintoaccount:

• ThescopeoftheroleandthemarketsinwhichPZCussonsoperates

• Theperformanceandexperienceoftheindividual

• Paylevelsinotherorganisationsofasimilarsizeandcomplexity

• PayincreaseselsewhereintheGroup.

ToavoidsettingexpectationsofExecutiveDirectorsandotheremployees,

thereisnooverallmaximumforsalaryincreasesunderthispolicy.

Salaryincreasesarereviewedinthecontextofsalaryincreasesacross

thewiderGroup.

AnyincreaseinexcessofthoseelsewhereintheGroupwouldbe

consideredverycarefullybytheCommittee.Fulldisclosurewouldbe

includedintherelevantRemunerationReport.Thecircumstancesin

whichhigherincreasesmaybeawardedincludebutarenotlimitedto:

• Anincreaseinthescopeand/orresponsibilityofarole

• AnincreaseuponpromotiontoExecutiveDirector

• Whereasalaryhasfallensignificantlybelowmarketpositioning

• ThetransitionovertimeofanewExecutiveDirectorrecruitedona

belowmarketsalarytoamorecompetitivemarketpositioningasthe

ExecutiveDirectorgainsexperienceintherole.

None,althoughoverallperformanceoftheindividualisconsidered

bytheCommitteewhensettingandreviewingsalaries.

Benefits Recruitmentandretentionof

seniorexecutivetalentthrough

theprovisionofacompetitively

positionedandcost-effective

benefitspackage.

Benefitsthatmaybeprovidedincludecarbenefits,lifeassurance,healthinsurance

foreachExecutiveDirectorandfamily,permanenthealthcoverandpersonal

taxadvice.

ExecutiveDirectorsmayalsoparticipateinanyall-employeeshareorbenefitsplans

onthesamebasisasanyotheremployees.

Whererelevant,additionalbenefitsmaybeofferedifconsideredappropriateand

reasonablebytheCommittee,suchasassistancewiththecostsofrelocation.

Themaximumopportunitywillbebasedonthecostofprovidingthe

benefits.ThiswillbesetatalevelthattheCommitteeconsidersappropriate

toprovideasufficientlevelofbenefitbasedonindividualcircumstances.

Notapplicable.

Provision for

retirement

DesignedtoenableanExecutive

Directortogenerateanincome

inretirementandtoprovidean

overallremunerationpackagethat

iscompetitiveinthemarket.

Participationinadefinedcontributionpensionplanorprovisionofacash

allowanceinlieuofapensioncontribution.

ACompanypensioncontributioninlinewiththerateprovidedto

thewiderworkforceinthecountrytheExecutiveDirectorisbased.

FortheUK,thisiscurrently10%ofbasesalaryinrespectofeach

financialyearintotheschemeonbehalfoftheExecutiveDirector

(or cash payment in lieu).

Notapplicable.

STRATEGIC REPORT GOVE R NANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION

Element Purpose and link to strategy Operation Maximum opportunity Performance measures

Variable remuneration

Annual bonus

scheme and

deferred

annual bonuses

DesignedtomotivateExecutive

Directorstofocusonannualgoals

andmilestonesthatareconsistent

withtheGroup’slonger-term

strategicaims.

Measuresandtargetsaresetannuallyatthebeginningoftherelevantfinancial

yearandpayoutlevelsaredeterminedbytheCommitteeaftertheyear-endbased

onperformanceagainstthosetargets.

Typically,aminimumof40%ofthebonusearnedwillbedeferredinto

shares.Thedeferralperiodwillusuallybetwoyears(unlesstheCommittee

determinesotherwise).

Adividendequivalentmaybepayableondeferredsharesthatvest.

TheCommitteemayapplydiscretiontoamendthebonuspayoutshouldthis

not,intheviewoftheCommittee,reflectunderlyingbusinessperformanceor

individualcontribution.

Recoveryandwithholdingprovisionsapplytocashanddeferredshares.

Themaximumannualbonusopportunitythatmaybeearnedforany

yearis150%ofbasesalary.

ThemaximumopportunityforcurrentExecutiveDirectorsare:

• ChiefExecutive:150%ofsalary

• OtherExecutiveDirectors:125%ofsalary.

TheperformancemeasuresandtargetsaresetbytheCommittee

each year.

Themajorityoftheannualbonusisbasedonchallengingfinancial

targetsthataresetinlinewiththeGroup’sKPIs.

Inaddition,asmallerelementoftheannualbonusmaybesubject

toachievementagainstkeybusinessobjectivesand/orpersonally

tailoredobjectives.

Foreachfinancialobjectiveset,upto10%oftherelevantpartof

thebonusbecomespayableatthethresholdperformancelevel

risingonagraduatedscaletothemaximumperformancelevel.

Thestructureandnatureofthestrategicobjectivesvary,suchthat

itisnotpracticaltospecifyanypre-setpercentageofbonusthat

becomespayableforthresholdperformance.

Restricted Share

Plan (RSP)

Designedtosimplifylong-term

incentivesandalignrewardfor

theExecutiveDirectorswiththe

deliveryofshareholdervalue

creationthroughsustainable

sharepricegrowthandcontinued

dividendpaymentsbydeliveryof

thebusinessstrategy.

Annualawardsofrightsoversharescalculatedasapercentageofbasesalary.

Awardsnormallyvestthreeyearsfromthedateofgrantsubjecttoreviewby

theCommitteeofperformanceagainstpre-determinedunderpins.Ifanyofthe

underpincriteriaarenotmet,theCommitteewillconsiderwhethertoreduce

vesting(includingtonil).Aftervesting,sharesareusuallysubjecttoanadditional

two-yearholdingperiod.

Inadditiontotheunderpins,theCommitteeretainsgeneraldiscretiontoadjust

thevestinglevelstoensuretheyappropriatelyreflecttheunderlyingperformance

oftheGrouporindividual.

DividendequivalentsaccrueonsharessubjecttoRSPawardsandarepaidon

vestinginrespectofthosesharesthatvest.

Awardlevelsandunderpinsarereviewedbeforeeachawardcycletoensurethat

they remain appropriate.

RecoveryandwithholdingprovisionsapplytoawardsgrantedundertheRSP.

Awardopportunitiesinrespectofanyfinancialyeararelimited

torightsovershareswithamarketvaluedeterminedbythe

Committeeatgrantofamaximumof90%ofbasesalary.

ThecurrentmaximumopportunityforExecutiveDirectorrolesis:

• ChiefExecutive:90%ofsalary

• FinancialOfficer:75%ofsalary.

Performanceunderpinsmaybebasedaroundkeyfinancial,

governanceandstrategicmeasures.Theywillbesettakinginto

accountthebusinessstrategyandmayvaryfromyear-to-yearifthe

Committeedeemsitappropriate.Fulldisclosureoftheunderpins

willbeprovidedintherelevantRemunerationReport.

Other aspects

Shareholding

guidelines

AlignmentoftheExecutive

Directors’interestswiththose

oftheGroup’sshareholders.

RequirementtobuildupinterestsintheCompany’ssharesworth200%ofsalary.

ExecutiveDirectorswillberequiredtoretainaminimumofhalftheafter-tax

numberofvestedsharesfromcurrentPSPandRSPawardsuntiltheysatisfythe

shareholdingguideline.

Notapplicable. Notapplicable.

Post-

employment

share ownership

requirements

Ensuresthereisanappropriate

amountof‘tailrisk’forExecutive

Directorspostcessation

ofemployment.

Executiveswillberequiredtomaintainaminimumshareholdingof200%ofsalary

forthefirstyearfollowingceasingtobeaBoardDirectorand100%ofsalaryfor

thesecondyear,orineithercaseiflower,thefullshareholdingoncessation.

Notapplicable. Notapplicable.

Remuneration Policy continued

PZ Cussons plc / AnnualReportandAccounts2024 / Governance

100

Element Purpose and link to strategy Operation Maximum opportunity Performance measures

Variable remuneration

Annual bonus

scheme and

deferred

annual bonuses

DesignedtomotivateExecutive

Directorstofocusonannualgoals

andmilestonesthatareconsistent

withtheGroup’slonger-term

strategicaims.

Measuresandtargetsaresetannuallyatthebeginningoftherelevantfinancial

yearandpayoutlevelsaredeterminedbytheCommitteeaftertheyear-endbased

onperformanceagainstthosetargets.

Typically,aminimumof40%ofthebonusearnedwillbedeferredinto

shares.Thedeferralperiodwillusuallybetwoyears(unlesstheCommittee

determinesotherwise).

Adividendequivalentmaybepayableondeferredsharesthatvest.

TheCommitteemayapplydiscretiontoamendthebonuspayoutshouldthis

not,intheviewoftheCommittee,reflectunderlyingbusinessperformanceor

individualcontribution.

Recoveryandwithholdingprovisionsapplytocashanddeferredshares.

Themaximumannualbonusopportunitythatmaybeearnedforany

yearis150%ofbasesalary.

ThemaximumopportunityforcurrentExecutiveDirectorsare:

• ChiefExecutive:150%ofsalary

• OtherExecutiveDirectors:125%ofsalary.

TheperformancemeasuresandtargetsaresetbytheCommittee

each year.

Themajorityoftheannualbonusisbasedonchallengingfinancial

targetsthataresetinlinewiththeGroup’sKPIs.

Inaddition,asmallerelementoftheannualbonusmaybesubject

toachievementagainstkeybusinessobjectivesand/orpersonally

tailoredobjectives.

Foreachfinancialobjectiveset,upto10%oftherelevantpartof

thebonusbecomespayableatthethresholdperformancelevel

risingonagraduatedscaletothemaximumperformancelevel.

Thestructureandnatureofthestrategicobjectivesvary,suchthat

itisnotpracticaltospecifyanypre-setpercentageofbonusthat

becomespayableforthresholdperformance.

Restricted Share

Plan (RSP)

Designedtosimplifylong-term

incentivesandalignrewardfor

theExecutiveDirectorswiththe

deliveryofshareholdervalue

creationthroughsustainable

sharepricegrowthandcontinued

dividendpaymentsbydeliveryof

thebusinessstrategy.

Annualawardsofrightsoversharescalculatedasapercentageofbasesalary.

Awardsnormallyvestthreeyearsfromthedateofgrantsubjecttoreviewby

theCommitteeofperformanceagainstpre-determinedunderpins.Ifanyofthe

underpincriteriaarenotmet,theCommitteewillconsiderwhethertoreduce

vesting(includingtonil).Aftervesting,sharesareusuallysubjecttoanadditional

two-yearholdingperiod.

Inadditiontotheunderpins,theCommitteeretainsgeneraldiscretiontoadjust

thevestinglevelstoensuretheyappropriatelyreflecttheunderlyingperformance

oftheGrouporindividual.

DividendequivalentsaccrueonsharessubjecttoRSPawardsandarepaidon

vestinginrespectofthosesharesthatvest.

Awardlevelsandunderpinsarereviewedbeforeeachawardcycletoensurethat

they remain appropriate.

RecoveryandwithholdingprovisionsapplytoawardsgrantedundertheRSP.

Awardopportunitiesinrespectofanyfinancialyeararelimited

torightsovershareswithamarketvaluedeterminedbythe

Committeeatgrantofamaximumof90%ofbasesalary.

ThecurrentmaximumopportunityforExecutiveDirectorrolesis:

• ChiefExecutive:90%ofsalary

• FinancialOfficer:75%ofsalary.

Performanceunderpinsmaybebasedaroundkeyfinancial,

governanceandstrategicmeasures.Theywillbesettakinginto

accountthebusinessstrategyandmayvaryfromyear-to-yearifthe

Committeedeemsitappropriate.Fulldisclosureoftheunderpins

willbeprovidedintherelevantRemunerationReport.

Other aspects

Shareholding

guidelines

AlignmentoftheExecutive

Directors’interestswiththose

oftheGroup’sshareholders.

RequirementtobuildupinterestsintheCompany’ssharesworth200%ofsalary.

ExecutiveDirectorswillberequiredtoretainaminimumofhalftheafter-tax

numberofvestedsharesfromcurrentPSPandRSPawardsuntiltheysatisfythe

shareholdingguideline.

Notapplicable. Notapplicable.

Post-

employment

share ownership

requirements

Ensuresthereisanappropriate

amountof‘tailrisk’forExecutive

Directorspostcessation

ofemployment.

Executiveswillberequiredtomaintainaminimumshareholdingof200%ofsalary

forthefirstyearfollowingceasingtobeaBoardDirectorand100%ofsalaryfor

thesecondyear,orineithercaseiflower,thefullshareholdingoncessation.

Notapplicable. Notapplicable.

101

STRATEGIC REPORT GOVE R NANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION

Remuneration Policy continued

LEGACY AWARDS

TheCommitteeretainstheabilitytomakeanyremuneration

paymentsorpaymentsforlossofofficenotwithstandingthat

theyarenotinlinewiththePolicysetoutabovewhere:

• ThetermsofpaymentwereagreedbeforethePolicycame

intoeffect,aslongastheywereinlinewiththeshareholder-

approvedDirectors’RemunerationPolicyinforceatthetime

theywereagreed

• Thetermsofthepaymentwereagreedatatimewhenthe

relevantindividualwasnotaDirectoroftheCompanyand

thepaymentwasnotinanticipationoftheindividualbecoming

aDirectoroftheCompany,intheCommittee’sopinion.

PERFORMANCE SCENARIOS

TheCommitteebelievesthatan

appropriateproportionoftheexecutive

remunerationpackageshouldbevariable

andperformance-relatedtoencourage

andrewardsuperiorGroupandindividual

performance.Thefollowingchart

illustratesexecutiveremunerationin

specificperformancescenariosincluding

amaximumperformancescenariowitha

50% increase in share price.

MINOR AMENDMENTS

TheCommitteeretainstheabilitytomakeminoramendmentsto

thePolicyforregulatory,exchangecontrol,taxoradministrative

purposesortotakeaccountofachangeinlegislationwithout

seekingshareholderapproval.

Jonathan Myers

Minimum

100% 32%

42%

25%

39%

31%

£754,908

£1,952,988

£2,352,348

£2,651,868

28%

38%

34%

Target Maximum Maximum

(includingshare

pricegrowth)

Fixedpay Annualbonus Long-TermIncentivePlan

NON-EXECUTIVE DIRECTORS REMUNERATION POLICY TABLE

ThecomponentsofNon-ExecutiveDirectors’remunerationaredescribedbelow:

Element Purpose and link to strategy Operation Maximum opportunity Performance measures

Non-Executive

Director fees

Toreflectthetimecommitment

inpreparingforandattending

meetings,thedutiesand

responsibilitiesoftheroleandthe

contributionexpectedfromthe

Non-ExecutiveDirectors.

Feesarenormallyreviewedeveryyearandmaybeamendedtoreflectmarket

positioningandanychangeinresponsibilities.

TheCommitteerecommendstheremunerationoftheChairtotheBoard.

FeespaidtoNon-ExecutiveDirectorsaredeterminedandapprovedbytheBoard

asawhole.

TheCompanycoversthecostsofattendingmeetingsandNon-ExecutiveDirectors

maybereimbursedforanybusinessexpensesincurred(includinganytaxdue)in

fulfillingtheirroles.

FeesarebasedontheleveloffeespaidtoNon-ExecutiveDirectors

servingonboardsofotherrelevantUK-listedcompaniesandthetime

commitmentandcontributionexpectedfortherole.

Non-ExecutiveDirectorsreceiveabasicfeeandanadditionalfee

forfurtherduties(forexample,chairingofaCommitteeorSenior

IndependentDirectorresponsibilities).

ThemaximumleveloffeespayabletotheNon-ExecutiveDirectorswill

notexceedthelimitsetoutintheCompany’sArticlesofAssociation.

Notapplicable.

Other aspects

Shareholding

guidelines

AlignmentoftheNon-Executive

Directors’interestswiththoseof

theGroup’sshareholders.

ExpectationthatNon-ExecutiveDirectorsbuildupinterestsintheCompany’s

sharesworth100%oftheirbasefee,netofstatutorydeductions,withinfouryears

ofappointment.

Notapplicable. Notapplicable.

PZ Cussons plc / AnnualReportandAccounts2024 / Governance

102

DISCRETION

TheCommitteewilloperatetheannualbonusandawardsunder

theLTIPinaccordancewiththeplanrules,shareholderapproved

PolicyandListingRuleswhereapplicable.

Aspertypicalmarketpractice,theCommitteeretainsdiscretionin

anumberofareasincluding(butnotlimitedto)theparticipants,

timing,vehicleandsizeoftheaward.TheCommitteemayamend

orsubstituteanyperformanceconditionsorunderpinsiftheyare

oftheviewthattheoriginalconditionsarenolongerappropriate

andthenewconditionsarenotmateriallylessdifficulttosatisfy.

Inexceptionalcircumstances,theCommitteehasthediscretion

tochangethevestingleveltoensurethattheoutcomesarefair,

appropriateandreflectiveoftheunderlyingfinancialperformance

oftheGroup.

Anawardmaybesubjecttoadjustmentsintheeventofa

variationoftheCompany'ssharecapital,demerger,delisting,

specialdividendorothercorporateeventmateriallyimpactsthe

valueofawards.

RECOVERY AND WITHHOLDING PROVISIONS

TheCommitteemay,initsdiscretion,subjecttoapplicable

laws,applymalusand/orclawbacktoannualbonus,PSPand

RSPawardsatanytimewithinthreeyearsofgrantorpayment

asapplicable,incircumstancesofamaterialmisstatementof

results,errorinpayoutcalculationsorthecalculationbeing

basedonincorrectinformation,misconduct,corporatefailure

orreputationaldamage.

Malusmaybeappliedatanytimepriortothevestingofany

awardorpaymentofanydeclaredbonus,andclawbackcanbe

appliedafteranawardorbonusispaidorvestsandwherethe

triggeringeventoccursatanytimepriortothethirdanniversary

ofthedatetheawardorbonusvests/ispaid.Theclawbackmay

beaffectedthroughawithholdingofvariablepay,byreducing

thesizeof,orimposingfurtherconditionson,anyoutstandingor

futureawards,orbyrequiringtheindividualtoreturnthevalue

ofthecashorsharesdeliveredtorecovertheamountoverpaid.

Sarah Pollard

Minimum

100% 36%

40%

24%

43%

28%

£474,848

£1,098,848

£1,306,848

£1,462,848

32%

36%

32%

Target Maximum Maximum

(includingshare

pricegrowth)

Fixedpay Annualbonus Long-TermIncentivePlan

NON-EXECUTIVE DIRECTORS REMUNERATION POLICY TABLE

ThecomponentsofNon-ExecutiveDirectors’remunerationaredescribedbelow:

Element Purpose and link to strategy Operation Maximum opportunity Performance measures

Non-Executive

Director fees

Toreflectthetimecommitment

inpreparingforandattending

meetings,thedutiesand

responsibilitiesoftheroleandthe

contributionexpectedfromthe

Non-ExecutiveDirectors.

Feesarenormallyreviewedeveryyearandmaybeamendedtoreflectmarket

positioningandanychangeinresponsibilities.

TheCommitteerecommendstheremunerationoftheChairtotheBoard.

FeespaidtoNon-ExecutiveDirectorsaredeterminedandapprovedbytheBoard

asawhole.

TheCompanycoversthecostsofattendingmeetingsandNon-ExecutiveDirectors

maybereimbursedforanybusinessexpensesincurred(includinganytaxdue)in

fulfillingtheirroles.

FeesarebasedontheleveloffeespaidtoNon-ExecutiveDirectors

servingonboardsofotherrelevantUK-listedcompaniesandthetime

commitmentandcontributionexpectedfortherole.

Non-ExecutiveDirectorsreceiveabasicfeeandanadditionalfee

forfurtherduties(forexample,chairingofaCommitteeorSenior

IndependentDirectorresponsibilities).

ThemaximumleveloffeespayabletotheNon-ExecutiveDirectorswill

notexceedthelimitsetoutintheCompany’sArticlesofAssociation.

Notapplicable.

Other aspects

Shareholding

guidelines

AlignmentoftheNon-Executive

Directors’interestswiththoseof

theGroup’sshareholders.

ExpectationthatNon-ExecutiveDirectorsbuildupinterestsintheCompany’s

sharesworth100%oftheirbasefee,netofstatutorydeductions,withinfouryears

ofappointment.

Notapplicable. Notapplicable.

103

STRATEGIC REPORT GOVE R NANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION

Remuneration Policy continued

FIXED ELEMENTS OF REMUNERATION

Basesalaryasat1September2024(£665,600forJonathanMyersand£416,000forSarahPollard);anestimateofthevalueofbenefits

andpensioncontributionsat10%ofbasesalary.

Minimum

performance Target performance Maximum performance Maximum performance including share price growth

Annual bonus

0% 60% of maximum opportunity

JonathanMyers–60%of150%

ofsalary

SarahPollard–60%of125%ofsalary

100% of maximum

opportunity

JonathanMyers–150%

ofsalary

SarahPollard–125%ofsalary

100% of maximum opportunity

JonathanMyers–150%ofsalary

SarahPollard–125%ofsalary

Long-Term Incentive Plan – RSP

0% 100% of award

JonathanMyers–90%ofsalary

SarahPollard–75%ofsalary

100% award

JonathanMyers–90%ofsalary

SarahPollard–75%ofsalary

100% of award with a 50% increase in

share price over the vesting period

JonathanMyers–90%ofsalary

SarahPollard–75%ofsalary

RECRUITMENT REMUNERATION ARRANGEMENTS

WhenhiringanewExecutiveDirector,theCommitteewillsetthe

ExecutiveDirector’songoingremunerationinamannerconsistent

withthePolicydetailedinthetableabove.Ourapproachto

remunerationonrecruitmentisconsistentwithouroverall

philosophyofofferingapackagesufficienttoattracttalentofthe

calibreneededwhileaimingtopaynomorethanisnecessary.

Newappointmentsmayhavetheirsalariessetatalower

levelwhiletheybecomeestablishedintheirrolewithhigher

thantypicalincreasesmadeonaphasedbasissubjecttothe

individual’sperformanceandcontributiontotheGroup.

Tofacilitatethehiringofcandidates,theCommitteemaymakean

awardtobuy-outvariableremunerationarrangementsforfeited

onleavingapreviousemployer.Indoingso,theCommitteewill

takeaccountofrelevantfactorsincludingtheformofaward,the

valueforfeit,anyperformanceconditionsandthetimeoverwhich

theawardwouldhavevested.Theintentionofanybuy-outwould

betocompensateinalikeforlikemannerasfarasispracticable.

Themaximumlevelofvariablepaythatmaybeawardedtonew

ExecutiveDirectors(excludingbuy-outarrangements)inrespect

oftheirrecruitmentwillbeinlinewiththemaximumlevelof

variablepaythatmaybeawardedundertheannualbonusplan

andLTIP.TheCommitteewillensurethatsuchawardsarelinked

totheachievementofappropriateandchallengingperformance

measuresand/orunderpinsasappropriate.

Appropriatecostsandsupportwillbecoverediftherecruitment

requiresrelocationoftheindividual.

IfanExecutiveDirectorispromotedinternally,existingawards

andongoingpriorremunerationobligationswillusuallycontinue

torunandtheywilltypicallycontinuetoparticipateinplans

orbenefitsthatwereinplacepriortotheirappointmentto

theBoard.

OnrecruitmentofaNon-ExecutiveDirector,thePolicyelements

setoutinthetableabovewillapply.

EXECUTIVE DIRECTOR CONTRACTS AND LOSS OF

OFFICE PAYMENTS

ExecutiveDirectorshaveindefiniteservicecontractsandno

ExecutiveDirectorhasanoticeperiodinexcessofoneyear

oracontractcontaininganyprovisionforpre-determined

compensationonterminationexceedingoneyear’ssalaryand

contractualbenefits.DetailsofthecurrentExecutiveDirectors’

servicecontractsareshownbelow:

Name Date of appointment

Jonathan Myers 1 May 2020

SarahPollard 4 January 2021

UpontheterminationofanExecutiveDirector’semployment,the

Committee’sapproachtodetermininganypaymentforlossof

officewillnormallybeguidedbythefollowingprinciples:

• TheCommitteeshallseektoapplytheprincipleofmitigation

wherepossible,aswellasseekingtofindanoutcomethatisin

thebestinterestsoftheCompanyandshareholdersasawhole,

takingintoaccountthespecificcircumstances

• Relevantcontractualobligations,assetoutabove,shallbe

observedortakenintoaccount

• TheCommitteereservestherighttomakeadditionalexit

paymentswheresuchpaymentsaremadeingoodfaithto

satisfyanexistinglegalobligation(orbywayofdamagesfor

breachofanysuchobligation)ortosettleorcompromiseany

claimorcostsarisinginconnectionwiththeemploymentof

anExecutiveDirectororitstermination,ortomakeamodest

provisioninrespectoflegalcostsand/oroutplacementfees

• Thetreatmentofoutstandingvariableremunerationshallbeas

determinedbytherelevantplanrules,assetoutonthenextpage

• Anypaymentsforlossofofficeshallonlybemadetotheextent

thatsuchpaymentsareconsistentwiththisPolicy.

PZ Cussons plc / AnnualReportandAccounts2024 / Governance

104

LONG-TERM INCENTIVE PLANS

Cessation of directorship/employment before the vesting date:

Death Theawardwillnormallyvestassoonaspracticablefollowingdeathandwillnottypicallybesubjecttoa

holdingperiod.

Injury,illhealth,disability,sale

oftheparticipant’semploying

companyorbusinessoutofthe

Grouporanyotherreasonifthe

Committeesodecides

Theawardwillnormallyvestontheoriginalvestingdate.TheCommitteewillhavesolediscretionastothe

extenttowhichtheawardwillvest,takingintoaccounttheextenttowhichtheperformanceconditions

andperformanceunderpinshavebeenmetforthePSPandRSPrespectively.

Alternatively,theCommitteehasthediscretiontoallowtheawardtovestatthetimeofcessation

ofdirectorship/employmentbytheGroup,takingintoaccounttheextenttowhichtheperformance

conditionsorunderpinshavebeenmetuptothatdate.

AwardswillbesubjecttoanyapplicableholdingperiodunlesstheCommitteedeterminesotherwise.

TheCommitteewillreducetheawardtoreflecttheperiodthathaselapsedatthetimeofcessationunless

theCommitteedeterminesotherwise.

Any other reason Theawardwilllapseuponcessationofdirectorship/employment.

Cessation of directorship/employment during the holding period

(i.e.inrespectofsharesheldforacompulsoryholdingperiod):

Death Theawardwillvestassoonaspracticablefollowingdeath.

LawfuldismissalwithoutnoticebytheCompany Theawardwilllapseuponcessationofdirectorship/employment.

Any other reason Theawardwillgenerallybereleasedattheendoftheholdingperiod

unlesstheCommitteedeterminesotherwise.

Annual bonus scheme – cash element

TheextenttowhichanyannualbonusispaidinrespectoftheyearofdeparturewillbedeterminedbytheCommittee(insuch

proportionofcashandsharesasitconsidersappropriate)takingintoaccounttheperformancemetricsandwhetheritisappropriateto

timepro-ratetheawardforthetimeservedduringtheyear.Thebonuswillbepaidattheusualtimeunlessinexceptionalcircumstances

whentheCommitteemaydeterminetoacceleratethepayment.

Annual bonus scheme – deferred share element

Death,injury,disability,redundancy,retirement,thesaleofthe

participant’semployingcompanyorbusinessoutoftheGrouporany

otherreasoniftheCommitteesodecides.

TheawardwillvestonthenormalvestingdateunlesstheCommittee

determinesotherwise.

Any other reason. Theawardwilllapseuponcessationofdirectorship/employment.

RETIREMENT BENEFITS

RetirementbenefitswillbereceivedbyanyExecutiveDirectorwhoisamemberofanyoftheGroup’spensionplansinaccordancewith

therulesofsuchplan.

105

STRATEGIC REPORT GOVE R NANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION

Remuneration Policy continued

COMMUNICATION WITH SHAREHOLDERS

TheCommitteeiscommittedtoanongoingdialoguewith

shareholdersandseekstheviewsofsignificantshareholders,their

representativebodiesandotherinterestedpartiessuchasproxy

agencieswhenformulatingandimplementingthePolicy.

TERMS AND CONDITIONS FOR NON-EXECUTIVE DIRECTORS

Non-ExecutiveDirectorsareappointedpursuanttotheterms

oftheirappointmentlettersforaninitialperiodofthreeyears,

normallyrenewableonasimilarbasis.Notwithstandingthis,

allNon-ExecutiveDirectorsaresubjecttoannualre-election

attheCompany’sAGMandtheirelectionissubjecttoadual-

voteincludingthevotesofonlythoseshareholderswhoarenot

membersoftheConcertPartyshareholders.Theexpirydatesof

thelettersofappointmentaresetoutbelow.

Name Expiry of term

DavidTyler(Chair) 23November2025

KirstyBashforth 31October2025

JohnNicolson 30 April 2025

JiteshSodha 30 June 2024

ValeriaJuarez 22September2024

VivekAhuja

30 April 2027

1 AppointedtotheBoard1May2024.

ThelettersofappointmentofNon-ExecutiveDirectorsandservice

contractsofExecutiveDirectorsareavailableforinspectionatthe

Company’sregisteredofficeduringnormalbusinesshoursandwill

beavailableattheAGM.

CHANGE IN CONTROL

TherulesoftheLong-TermIncentivePlanprovidethat,inthe

eventofachangeofcontrolorwinding-upoftheCompany,all

awardswillvestearlytakingintoaccount:i)theextenttowhich

theCommitteeconsidersthattheperformanceconditionsor

underpinshavebeensatisfiedatthattimeandii)thepro-rating

oftheawardstoreflecttheproportionoftheperformance

periodthathaselapsed,althoughtheCommitteecandecide

nottopro-rateanawardifitregardsitasinappropriatetodo

sointheparticularcircumstances.Deferredbonusawardswill

normallyvestinfullonatakeoverorwinding-upoftheCompany.

Intheeventofaspecialdividend,demergerorsimilarevent,the

Committeemaydeterminethatawardsvestonthesamebasis.

Intheeventofaninternalcorporatereorganisation,awards

maybereplacedbyequivalentnewawardsoversharesinanew

holdingcompany.Similarly,intheeventofamergerofequals,the

Committeemayinviteparticipantstovoluntarilyexchangetheir

awardsthatwouldotherwisevestforequivalentnewawardsover

sharesinanewholdingcompany.

TheCommitteemay,inthecircumstancesreferredtoabove,

determinetowhatextentanybonusshouldbepaidinrespectof

thefinancialyearinwhichtherelevanteventtakesplace,takinginto

accounttheextenttowhichtheCommitteedeterminestherelevant

performancemetricshavebeen(orwouldhavebeen)met.

STATEMENT OF CONSIDERATION OF EMPLOYMENT

CONDITIONS ELSEWHERE IN THE COMPANY

WhenreviewingandsettingExecutiveDirectorremuneration,the

Committeetakesintoaccountthepayandemploymentconditions

ofallemployeesoftheGroup.TheCommitteeisprovidedwith

informationateachmeetingsettingoutmanagementapproach

topayaroundtheGroup.Duringthelastyear,thishascovered

arangeofitemsincludingmanagement’sactivitiestosupport

employeesduringthecost-of-livingcrisis,otherrewardactivities

acrosstheGroupaswellastheGroup-widepayreviewbudget

whichisoneofthekeyfactorsconsideredbytheCommittee

whenreviewingthesalariesoftheExecutiveDirectors.Although

theGrouphasnotcarriedoutaformalemployeeconsultation

regardingBoardremuneration,itdoescomplywithlocal

regulationsandpracticesregardingemployeeconsultation

morebroadly.

PZ Cussons plc / AnnualReportandAccounts2024 / Governance

106

Report on the Directors’ Remuneration

ThisReportonDirectors’Remuneration,setsouthowthecurrentPolicywasappliedthroughoutFY24andhowourDirectors’

RemunerationPolicywillbeappliedduringFY25.TheReportonDirectors’Remunerationissubjecttoanadvisoryvoteatour2024AGM.

InformationcontainedwithintheReportonDirectors’Remunerationhasnotbeensubjecttoauditunlessstated.

SINGLE TOTAL FIGURE OF REMUNERATION (AUDITED)

Thetablebelowsetsoutinasinglefigurethetotalamountofremuneration,includingeachelementreceivedbyeachoftheDirectorsfor

theyearended31May2024(amountsareroundedtothenearestPoundSterling):

EXECUTIVE DIRECTORS

Jonathan Myers Sarah Pollard

Salary/fees

2024 633,245 392,500

2023 607,797 361,188

Benefits

2024 22,748 17,24 8

2023 22,575 17,075

Pension

2024 63,324 39,250

2023 62,073 36,850

Total fixed 2024 719,317 448,998

2023 692,445 415,113

Bonus

2024 637,4 4 0 332,000

2023 736,331 370,382

PSP

2024 34,045 16,036

2023 140,463 20,385

Total variable 2024 671,485 348,036

2023 876,794 390,767

Total 2024 1,390,802 797,034

2023 1,569,239 805,880

NON-EXECUTIVE DIRECTORS

David

Tyler

Kirsty

Bashforth

Dariusz

Kucz

John

Nicolson

Jeremy

Townsend

Jitesh

Sodha

Valeria

Juarez

Vivek

Ahuja

Salary/fees

2024 280,219 74,375 17,500 68,750 52,667 58,750 63,577 6,413

2023 25,048 65,000 60,000 65,000 65,000 55,000 55,000 –

Benefits

2024 – – – – – – – –

2023 – – – – – – – –

Total 2024 280,219 74,375 17,500 68,750 52,667 58,750 63,577 6,413

2023 25,048 65,000 60,000 65,000 65,000 55,000 55,000 –

1 Theamountofsalary/feespayableintheperiod,reflectingthepayincreaseseffective1September2023.

2 Taxablebenefitscompriselifeassurance,healthcareinsuranceandcarallowance.InrespectoftheNon-ExecutiveDirectors,certaintravelandaccommodationexpensesinrelationto

attendingBoardmeetingsarealsotreatedasataxablebenefit.

3 JonathanMyersandSarahPollardreceivesalarysupplementsof10%ofsalaryinlieuofpensioncontributions.

4 Detailsoftheperformancemeasuresandweightingsaswellasresultsachievedundertheannualbonusarrangementsinplaceinrespectoftheyearareshownonpages108and109.

5 Thevalueofthe2020PSPhasbeenupdatedsincethepreviousAnnualReport.Calculationsnowuseactualvestingsharepricesof£1.442and£1.302.JonathanMyers'LTIPvaluehas

alsobeenupdatedtoincludetheadditional2020LTIPawardgrantedon26November2021andvestedon27November2023which,inerror,wasnotincludedinthesinglefiguretable

lastyear.The2021PSPwasvaluedbasedonathree-monthaveragesharepriceon31May2024of£0.972.Thesharepriceatthedateofawardwas£2.265.Ofthevestedamountsfor

theExecutiveDirectors,nothingwasattributabletosharepriceappreciationovertheperformanceperiod.TheCommitteedidnotexerciseanydiscretioninrelationtothevestingof

theawardsorsharepricechanges.

6 DavidTylerwasappointedtotheBoardon24November2022andasChairon23March2023.

7 DariuszKuczretiredfromtheBoardon14September2023.

8 JeremyTownsendretiredfromtheBoardon28February2024.

9 VivekAhujawasappointedtotheboardon1May2024.

107

STRATEGIC REPORT GOVE R NANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION

Report on Directors’ Remuneration continued

BASE SALARY (AUDITED)

BasesalariesforindividualExecutiveDirectorsarereviewedbytheCommitteeannually,withincreasestakingeffectfrom1September.

SalariesaresetwithreferencetothescopeoftheroleandthemarketsinwhichPZCussonsoperates,theperformanceandexperience

oftheindividual,paylevelsinotherorganisationsofasimilarsizeandcomplexityandpayincreaseselsewhereintheGroup.

ThefollowingtablesetsoutdetailsofthechangestobasepayfortheExecutiveDirectors.

Jonathan Myers

CEO

Sarah Pollard

CFO

Salary with effect from 1 September 2024 £665,600 £416,000

Salarywitheffectfrom1September2023 £640,000 £400,000

JonathanMyers’andSarahPollard'sbasesalarieshavebothbeenincreasedby4%from1September2024.Thisisbelowtheaverage

levelawardedtothewideremployeepopulationintheUK.

NON-EXECUTIVE DIRECTOR FEES (AUDITED)

TherearenoincreasestofeesforNon-ExecutiveDirectorsforFY25.

From 1 September 2024 From 1 September 2023 Increase

Basic fees

Chair

£286,125 £286,125 0%

Non-ExecutiveDirector £60,000 £60,000 0%

Additional fees

SeniorIndependentDirector £10,000 £10,000 0%

ChairofAudit&RiskorRemunerationCommittee £12,500 £12,500 0%

ChairofanyotherCommittee £5,000 £5,000 0%

Directorresponsibleforemployeeengagement

£5,000 £5,000 0%

1 TheChairoftheBoarddoesnotreceiveadditionalfeesforchairingotherBoardCommittees.

2 TheChairoftheRemunerationCommitteealsoactedastheNon-ExecutiveDirectorresponsibleforemployeeengagementfrom14September2023.

ANNUAL BONUS FOR THE YEAR ENDED 31 MAY 2024 (AUDITED)

Inrespectoftheyearended31May2024,theCEO,JonathanMyers,andtheCFO,SarahPollard,bothparticipatedintheannual

bonusscheme.

Underthisscheme,theCEOwaseligibletoearnacashbonusofupto150%ofbasesalaryandtheCFO125%ofbasesalary.Underthe

newRemunerationPolicy,40%ofanybonusearnedwillbedeferredintoCompanyshareswhichvestaftertwoyearsandaresubjectto

recoveryandwithholdingprovisionsandcontinuedemployment.

Assetoutlastyear,theFY24annualbonuswasbasedonthreekeyfinancialindicators:50%AdjustedOperatingProfit,20%revenue

growthand10%FreeCashFlow,withtheremaining20%ofthebonusbeingsubjecttodeliveryagainstkeybusinessobjectivesrelatingto

deliveryofthestrategyandkeybusinesspriorities/personalobjectivesforFY24.Asummaryoftheperformancetargetsandoutturnsare

setoutinthefollowingtables.

FY24 FINANCIAL TARGETS

Thefinancialtargetsandourperformanceagainstthemaresetoutbelow:

Proportion of

total bonus

Threshold

(10% payout)

Target

(60% payout)

Stretch

(100% payout)

Actual

performance2

% of total

bonus payable

AdjustedOperatingProfit3 50% £65.4m £72.7m £76.3m £73.4m 34.0%

Revenuegrowth3 20% £568.6m £606.3m £636.6m £604.9m 11.7%

FreeCashFlow3 10% 73% 86% 100% 92.6% 7.9 %

Total 53.6%

1 Thefinancialtargetsweresetonaconstantcurrencybasis,consistentwithprioryearsandtypicalmarketpracticetomitigateparticipantsbenefittingorbeingpenalisedforcurrency

movementsoutsidetheircontrol.

2 TheactualperformanceinthetableisbasedonbudgetedFXratesusedformanagementreportingtodeterminethevalueofbonuspayable.

3 Alternativeperformancemeasuresareexplainedonpages206to209andintheGlossaryonpage211.

PZ Cussons plc / AnnualReportandAccounts2024 / Governance

108

FY24 KEY BUSINESS OBJECTIVES

TheFY24KeyBusinessObjectives(KBO)andmilestonesachievedaresetoutinthetablebelow.KBO1issharedbetweentheCEOand

CFO,KBO2isspecifictotheCEOandKBO3isspecifictotheCFO.

KBO Milestones achieved

1 Deliver FY24 Priorities: CEO and CFO • ThesaleoftheSt.TropezbrandandastrategicreviewoftheAfricabusinesshasbeeninitiated.

• ImprovedsourcingofUSDollarshasreducedtheriskoffurtherdevaluationofthe

NigerianNaira.

• SignificantprogresswasmadeacrosstheGrouptoreduceoverheadcosts.Activitiesincluded:

– TherestructureoftheUKbusinessasdescribedbelow.

– Africareducedoveralloverheadcostsandimplementedmultiplepriceincreasesinyear.

– TheThailandsoapfactorywasclosedaspartofthesupplychainoverallsimplificationplan.

– ThemovetoanewofficeinANZ.

• Therewascontinuedfocusonbrand-buildingcapabilitieswhichincluded:

– AnewglobalBrand-buildingorganisation,incorporatingR&Dandsustainability,was

createdtoenablefuturelong-terminnovationandgrowth.

– Anewmarketingcapabilitiesprogrammetoacceleratebuildingmarketinginnovationskills

hasbeendeveloped.

• Anewdigitalstrategyhasbeendeveloped,buildinginnewcapabilitiesindataandanalytics.

• Developmentofleadershipforthefuture:

– AnewleadershipframeworkhasbeencreatedtosupportthedeliveryofourBuilding

BrandsforLifestrategy.Thiswillbeintegratedintorecruitmentandtalentacquisition,

leadershipdevelopmentandperformancemanagement.

– AnewPZGrowthAcademyhasbeendevelopedtoprovideclearcareerpathsforour

marketingtalenttogrowtheircareersatPZCussons.

2 Develop new Operating Model: CEO • IntheUKIgeographies,anewoperatingmodelwascreatedwhichsimplifiesourorganisation

bycombiningthreebusinessunitsandinvestingincapabilitiesforBrand-building.Thenew

organisationenablesonePZCussonsfacetothecustomer.

• Anew,smallerExecutiveCommitteeOperatingModelwasimplementedduringtheyear,to

reflectthechangestothebusinessoutlinedabove.

• Aglobalfunctionsleadersgroupwasinitiatedtobuildstrategiccapabilitiesandactasan

advisoryboardfortheCEO.

• AnextendedPZPioneersgroupwascreatedtoactaschangeagentsalongsidethe

ExecutiveCommittee.

3 Further evolve finance capabilities and

governance: CFO

• Significantprogresshasbeenmadetoimprovefinancialcontrolsandfinancialreporting.

• AGlobalFinanceSharedServicesTeamhasbeenestablishedinIndonesia,tocentralise

FinanceSharedServicesinonelocationwithalowercostbase.

• Standardcontrolsandcompliancearenowinplaceacrossthebusiness,globally.

• Ournewauditorswerefullyonboardedduringtheyear.

TheCommitteereviewedthebonusoutcomeinthecontextofoverallGroupperformance,takingintoconsiderationtheexperience

ofthekeystakeholders,includingemployeesandshareholders,duringtheyear.TheCommitteeconsideredbothoutcomesanddrivers

ofadjustedandstatutoryfinancialperformanceandthedriversofthese,togetherwiththeindividualcontributionoftheCEOandCFO

innavigatingachallengingtradingenvironment;particularlyinourAfricabusinesswhichwasmateriallyimpactedbyalargedevaluation

oftheNigerianNaira.Takingallthesefactorsintoaccount,theCommitteeexerciseddownwardsdiscretionamountingtoanadjustment

of2.2%fortheExecutiveDirectors,resultingin51.4%ofmaximumbeingearnedforfinancialperformance.

TheCommitteealsoreviewedtheperformanceoftheExecutiveDirectorsagainsttheobjectivessetoutabove,whilealsotakingintoaccount

theexperienceoftheCompany’swiderstakeholders,anddeterminedabonuspayoutof15%outofamaximumof20%againsttheKBOs.

40%oftheFY24annualbonus,totalling£254,976fortheCEOand£132,800fortheCFOwillbedeferredintosharesfortwoyears.

109

STRATEGIC REPORT GOVE R NANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION

ANNUAL BONUS FOR THE YEAR ENDING 31 MAY 2025

ExecutiveDirectorswillcontinuetobeeligibletoparticipateintheannualbonusschemeinrespectoftheyearending31May2025

underthePolicy.TheannualbonusopportunityfortheCEOandCFOwillcontinuetobe150%and125%ofsalaryrespectively,whichcan

beearnedfordeliveryagainstchallengingtargets,with60%ofmaximumpayableforon-targetperformanceunderthefinancialmetrics.

FortheFY25annualbonus,theAdjustedOperatingProfitmeasurehasincreasedfrom50%to60%andtheFreeCashFlowmeasurefrom

10%to20%toprioritisefocusfortheExecutiveDirectorsonprofitabilityandcashmanagement.Revenueremainsaweightedbonus

metricforlocalleadersandwillbeconsideredaspartoftheCommittee'sholisticreviewoffinancialperformanceattheendoftheyear.

Theremainingportionofthebonus(20%)willbebasedonkeypersonalandbusinessobjectivesrelatingtodeliveryofthestrategyand

keybusinessprioritiesforFY25.

TargetsfortheFY25bonushavebeensetbytheCommitteetobeappropriatelydemandingandalsoreflectiveofcurrentcommercial

circumstances,internalplanningandmarketexpectations.Targetshavebeensetonabusiness-as-usualbasis,notwithstandingthe

Company'srecentannouncementthatitintendstoselltheSt.TropezbrandandwillundertakeastrategicevaluationofGroupoperations

inAfrica.TheCommitteewillreviewtheappropriatenessofthetargetssetortheoutcomeoftheFY25annualbonusshouldasale

occurandfollowingthestrategicreview,toensurethattheoriginaltargetsremainappropriatelystretchingandtheFY25annualbonus

outcomeisafairreflectionofunderlyingfinancialperformanceandtheshareholderexperience.TheDirectorsconsiderthattheGroup’s

futuretargetsarecommerciallysensitiveandcouldprovideourcompetitorswithinsightsintoourbusinessplansandexpectations.As

such,theyshouldthereforeremainconfidentialtotheCompanyatthistime(althoughtheywillberetrospectivelydisclosedinnextyear’s

Directors’RemunerationReport).

BonusesarepayableatthediscretionoftheCommitteeandtheCommitteemayapplydiscretiontoamendthebonuspayoutshouldit

not,intheviewoftheCommittee,reflectunderlyingbusinessperformanceorindividualcontribution.

InlinewiththePolicy,aminimumof40%oftheFY25bonusearnedwillbedeferredintoshares.Thedeferralperiodwilltypicallybetwo

years(unlesstheCommitteedeterminesotherwise).

AwardsmadeundertheannualbonusschemewillbesubjecttorecoveryandwithholdingprovisionsthatwouldenabletheCommittee

torecoveramountspaidincircumstancesofi)amaterialmisstatementofauditedresults,ii)employeemisconductassociatedwiththe

governanceorconductofthebusiness,iii)anerroneouscalculationofaperformancecondition,iv)reputationaldamageorv)corporatefailure.

TheabilitytoapplytheseprovisionsoperatesforaperiodofuptothreeyearsforawardstoExecutiveDirectorsandotherseniorexecutives.

Report on Directors’ Remuneration continued

PZ Cussons plc / AnnualReportandAccounts2024 / Governance

110

LONG-TERM INCENTIVE PLANS

Thefollowingsetsoutdetailsof:

• PerformanceSharePlanAwards

• RestrictedSharePlanAwards

• DeferredBonusAwards.

ExecutiveDirectorsandcertainseniorexecutiveswereeligibletoparticipateinthePSP,whichprovidedforthegrantofconditionalrights

toreceivenil-costsharessubjecttocontinuedemploymentoverathree-yearvestingperiodandthesatisfactionofcertainperformance

criteriaestablishedbytheCommittee.ThecurrentversionofthePSP,thePZCussonsplcLong-TermIncentivePlan2020(theLTIP2020),

wasapprovedbyshareholdersandadoptedatthe2020AnnualGeneralMeeting.FollowingshareholderapprovalofthePolicyatthe

AGMinNovember2023,theExecutiveDirectors,andotherseniorexecutives,weregrantedawardsundertheRSP.Moredetailsare

providedbelow.

PERFORMANCE SHARE PLAN AWARDS (AUDITED)

TheoutstandingawardsgrantedtoeachDirectoroftheCompanyunderthePerformanceSharePlanareasfollows:

Date of

award

Number

options/

awards

at 1 June

2023

Granted/

allocated

in year

Exercised/

vested

in year

Lapsed

in year

Dividend

Equivalent

Number of

options/

awards at 31

May 2024

price at

date of

award

(£)1

price at

date of

vesting

(£)

Vesting/

transfer

date

Exercise

date

Exercise

price

price at

date of

exercise

J Myers 27-Nov-20

3,4

375,000 – 75,000 300,000 9,043 – 2.285 1.442 27-Nov-23 27-Nov-23 Nil 1.442

SPollard 01-Feb-21

3,4

70,973 – 14,194 56,779 1,462 – 2.480 1.302 01-Feb-24 22-Feb-24 Nil 1.000

J Myers 23-Sep-21 403,806 – – – – 403,806 2.265 – 23-Sep-24 – – –

SPollard 23-Sep-21 190,198 – – – – 190,198 2.265 – 23-Sep-24 – – –

J Myers 26-Nov-21

61,046 – 12,209 48,837 1,156 – 1.958 1.442 27-Nov-23 – – –

J Myers 23-Sep-22 461,580 – – – – 461,580 2.005

– 23-Sep-25 – – –

SPollard 23-Sep-22 232,178 – – – – 232,178 2.005

– 23-Sep-25 – – –

1 Sharepriceatdateofawardforthe23September2022awardshadbeenupdatedinthisyear'sReportonDirectors'Remunerationbyoneday,movingfromsharepriceasat22

September2022,tosharepriceasat23September2022.

2 Subjecttoperformanceconditions.Sharesvestingundertheawardaresubjecttoatwo-yearpost-vestingholdingperiod.

3 Thevalueof2020LTIP(vestingFY23)hasbeenupdatedsincethedisclosureintheAnnualReportlastyear,basedonthesharepriceatthedateofvesting.Thetablehasalsobeen

updatedtoincludethePSPawardgrantedtotheCEOon26November2021,whichwaspreviouslyomittedinerror.Therefore,theCEOreceived375,000sharesatagrantshareprice

of£2.285withrespecttotheawardgrantedon27November2020,and61,046sharesatagrantsharepriceof£1.958withrespecttotheawardallocatedon26November2021.On27

November2023,nil-costoptionsvestedoveratotalof87,209shares,plus10,199dividendequivalentshares(97,408intotal).Thetotalvalueofthosesharesonthedateofvestingwas

£140,462basedonasharepriceof£1.442.Noneofthiswasduetosharepriceappreciationbetweenthedateofawardanddateofvesting.Allnil-costoptionswereexercisedonthe

samedateasvestingandastheoptionpricewasnilandsharepricewas£1.442,theoptionagainwasalso£140,462.

 On1February2021,theCFOwasgrantedanil-costoptionover70,973shares.On1February2024,theawardvestedoveratotalof14,194sharesplus1,462dividendequivalent

shares(15,656intotal).Thetotalvalueofthe15,656sharesonthedateofvestingwas£20,384,basedonasharepriceatthedateofvestingof£1.302.Noneofthiswasduetoprice

appreciationbetweenthedateofawardanddateofvesting.On22February2024,anil-costoptionwasexercisedoverall15,656shareswhichresultedinanoptiongainof£15,656,

basedonasharepriceatthedateofexerciseof£1.00.

4 Awardsgrantedon27November2020and1February2021arenil-pricedoptions,allotherawardsareconditional.Theseoptionswereexercisedonthedateofvesting.

111

STRATEGIC REPORT GOVE R NANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION

VESTING OF PSP AWARDS GRANTED IN THE YEAR ENDED 31 MAY 2022

PSPawardsweremadetotheCEOandCFOintheyearto31May2022andareduetoveston23September2024.Theyarebasedon

performanceovertheperiodfrom1June2022to31May2024.TheCEOandCFOweregranted403,806and190,198sharesrespectively

onthedateofgrant(23September2021),usingasharepriceof£2.265.Theawardsshallveston23September2024at8.67%of

maximum,basedontheperformancecriteriadetailedinthefollowingtable.Athree-monthaveragesharepriceto31May2024(£0.972)

hasbeenusedtoestimatethevalueoftheseawards.

Theperformancemetrics,asdisclosedinFY22,werealignedwiththebusiness’mid-tolong-termpriorities.Thetablebelowsetsoutthe

relativeweightingsandadescriptionofeachmeasure,aswellasthetargetsforthresholdandmaximumlevelsofvesting.Detailsofthe

performanceagainsteachofthemetricsisalsosetout.

Weighting

Threshold

(25% payout)

Maximum

(100% payout)

Actual

performance

% of maximum

payable

EPSgrowth 60% 2% p.a. 6% p.a. -15.1% 0%

RevenuegrowthfromMustWinBrands 20% 2% 6% -1.2% 0%

Sustainabilitytargets 20% Seebelow Seebelow Seebelow 8.67%

Total 8.67%

TheFY22LTIPwasthesecondyearofsustainabilitytargetsandtheoverallvestinglevelforFY22awardshasbeendiscussedindetailat

boththeESandRemunerationCommitteeswithbothCommitteesinfullagreementonthevestinglevel.Thefollowingtablesetsoutthe

detailedperformanceagainstthetargets.Eachelementisequallyweighted.

Target Sustainability target Performance description

Performance

achievement %

Ethical

sourcing

Threshold target:

• PublisharevisedSupplierCodeofConductalignedto

ourrecentlyapprovedCodeofEthicalConductand

embeditacrossthesupplierbasewithatleast90%

ofsuppliersbyvaluehavingeithersigneduptoitor

demonstratedthattheyhaveinplacetheirowncode

whichmeetsorexceedsourown.

• AdoptandpublishaPZSustainabilityCharter,setting

outourcommitmentsacrosskeyESGareasand

encourageoursupplybasetosignuptoourcharter

withatleast60%ofoursuppliersbyvaluesigning

uptoourSustainabilityCharterbytheendofthe

performanceperiod.

Stretch target:

Inadditiontothreshold:(1)achieve99%ofsuppliers

byvaluesigninguptoourSupplierCodeofConduct;

and(2)90%ofoursuppliersbyvaluesigninguptoour

SustainabilityCharter.

99.8%ofourhigh-valuedirectsuppliershavesigned

uptoourSupplierCodeofConductand88.5%ofour

directsuppliershavecompletedourSustainability

Charter.Directsuppliersareprovidersofthegoods,

rawmaterialsandthird-partymanufacturedproducts

thatimpactourreputationalriskasembeddedinto

ourBrands.

WhiletheoutputforcompletingourSustainability

Charterisbelowmaximum,thereisamaximumlevelof

performanceforsigningourSupplierCodeofConduct.

Thelevelofvestingreflectstheapplicationofahigher

weightingtotheSupplierCodeOfConduct,giventhe

legalandoperationalimpactsofnon-compliance.Our

SustainabilityCharterisvoluntaryandreflectsour

long-termsustainabilitygoalsandprinciplesandisa

guidelineforcontinuousimprovement.TheCommittee

determinedan80%vestingforthiselement.

5.33%

Carbon

Disclosure

Project (CDP)

performance

Threshold target:

• Improvefromcurrent'B-'scoretoa'B'scorebythe

endoftheperformanceperiod.

Stretch target:

• Achievean'A/A-'scorebytheendofthe

performanceperiod.

OurCDPperformanceisexternallymeasuredbythe

CarbonDisclosureProject.Thisisaglobalnon-profit

organisationwiththeprimaryfocusofcollectingand

analysingdatarelatedtoclimatechange,watersecurity

anddeforestation.Thisdataismadeavailableto

investors,policymakersandthepublicatwww.cdp.net

topromotetransparency,accountability,andinformed

decision-making.

ThelatestscorespositionPZCussonsata'B'score

forclimate.Thisisequivalenttoathresholdlevel

ofperformance.

1.67%

Employee

engagement

Threshold target:

• Improvetheemployeeengagementscoresto73%

(+1%)bytheendoftheperformanceperiod.

Stretch target:

• Improvetheemployeeengagementscoreacrossthe

Groupto75%(+3%)byimproving1%eachyearof

theperformanceperiod.

Thelatestemployeeengagementscore,providedby

ourexternalsurveyprovider,is73%.Thisisequivalent

toathresholdlevelofvesting.

1.67%

Total 8.67%

TheCommitteehasreviewedtheoveralllevelofvestingof8.67%ofmaximuminthecontextofwiderbusinessperformanceand

stakeholderexperienceandiscomfortablethatvestingisjustifiedatthislevelwithnoneedtoapplydiscretion.

Report on Directors’ Remuneration continued

PZ Cussons plc / AnnualReportandAccounts2024 / Governance

112

RESTRICTED SHARE PLAN AWARDS (AUDITED)

TheoutstandingawardsgrantedtoeachDirectoroftheCompanyundertheRestrictedSharePlanareasfollows:

Date of

award

Number of

awards at

1 June 2023

Granted/

allocated Face value Vested

Lapsed in

year

Number

of awards

at 31 May

2024

Share price

at date of

award

(£)

Share price

at date of

vesting

(£)

Gain

(£)

Vesting/

transfer

date

J Myers 27-Nov-23 – 411,899 £576,000 – – 411,899 1.442 – – 27-Sep-26

SPollard 27-Nov-23 – 214,530 £300,000 – – 214,530 1.442 – – 27-Sep-26

1 JonathanMyersandSarahPollardweregrantedtheaboveawardson27November2023,calculatedusingthefive-dayaveragemid-marketquotationatcloseofbusinesson24

November2023of£1.3984.ThesharepriceusedtodeterminethenumberofsharessubjecttotheawardwasinaccordancewiththerulesoftheLTIP2020.Theawardswereinthe

formofConditionalShares.Sharesvestingundertheawardaresubjecttoatwo-yearpost-vestingholdingperiod.

Assetoutinlastyear’sreportandfollowingshareholderapprovalofthePolicyattheAGM,theExecutiveDirectorsweregranteda

conditionalawardundertheRSPatalowervalueandwithunderpins,ratherthanPSPawards.Themaximumawardwas90%ofbase

payfortheCEOand75%ofbasepayfortheCFO.TheawardvestingdateforExecutiveDirectorswasalignedwiththatoftherestofthe

Company’sLTIPawardsat27September2026.Postvesting,awardswillbesubjecttoafurthertwo-yearholdingperiod.

ThevestingoftheRSPissubjecttothreeunderpinsdetailedbelowoverthethreefinancialyearstoMay2026.TheCommitteewillalso

retaintheabilitytoreducevesting(includingtonil)subjecttoperformanceagainsttheunderpinsmeasuredoverthevestingperiod:

• Nomaterialweaknessintheunderlyingfinancialhealthorsustainabilityofthebusiness

• Maintenanceofappropriategovernanceframeworks,includingacceptablecontrolsandcomplianceperformanceandnoeventsthat

resultinsignificantreputationaldamagetotheCompany(asdeterminedbytheBoard)

• ToensureongoingfocusonourcriticalESGcommitments,satisfactoryperformanceagainstenvironmentalandsocietalcommitments.

TheCommitteeretaineddiscretiontoensurethatoverallvestinglevelsarealignedtotheunderlyingfinancialperformanceonbotha

Groupandindividualbasis.RecoveryandwithholdingprovisionsassetoutinthePolicywillalsoapplytotheseawards.

TheExecutiveDirectorswillbegrantedawardsundertheRSPintheyearended31May2025.Themaximumawardwillbe90%ofbase

payfortheCEOand75%ofbasepayfortheCFO.Postvesting,awardswillbesubjecttoafurthertwo-yearholdingperiod.Awardsare

expectedtobemadeinSeptember2025.ThevestingoftheRSPwillremainsubjecttothethreeunderpinsdetailedaboveoverthethree

financialyearstoMay2027.TheCommitteewillretaintheabilitytoreducevesting(includingtonil)subjecttoperformanceagainstthe

underpinsmeasuredoverthevestingperiod,aswellasthediscretiontoensurethatoverallvestinglevelsarealignedtotheunderlying

financialperformanceonbothaGroupandindividualbasis.RecoveryandwithholdingprovisionsassetoutinthePolicywillalsoapply

totheseawards.

DEFERRED BONUS AWARDS (AUDITED)

UnderthecurrentDirectors'RemunerationPolicy,40%ofanybonusisdeferredintosharesfortwoyears.Thetablebelowisreflective

ofthepreviousPolicywhere25%ofanypaymentwasdeferredintosharesforthreeyears.

Scheme

Date of

award

Basis of

award

Number

of awards

at 1 June

2023

Granted/

allocated

in year

Face value

of awards

in year

Vested in

year

Lapsed

in year

Number

of awards

at 31 May

2024

price at

date of

award

(£)2

price at

date of

vesting

(£)

Gain

(£)

Vesting/

transfer

date

J Myers

DBSP

2021 23-Sep-21

25%of

annual

bonus 98,011 – – – – 98,011 2.265 – – 23-Sep-24

SPollard

DBSP

2021 23-Sep-21

25%of

annual

bonus 18,719 – – – – 18,719 2.265 – – 23-Sep-24

J Myers

DBSP

2021 23-Sep-22

25%of

annual

bonus 60,653 – – – – 60,653 2.005 – – 23-Sep-25

SPollard

DBSP

2021 23-Sep-22

25%of

annual

bonus 28,569 – – – – 28,569 2.005 – – 23-Sep-25

J Myers

DBSP

2021 27-Sep-23

25%of

annual

bonus – 115,659 £184,083 – – 115,659 1.510 – – 27-Sep-26

SPollard

DBSP

2021 27-Sep-23

25%of

annual

bonus – 58,177 £92,595 – – 58,177 1.510 – – 27-Sep-26

1 JonathanMyersandSarahPollardweregrantedtheaboveawardson27September2023,calculatedusingthefive-dayaveragemid-marketquotationatcloseofbusinesson27

September2023of£1.5916.ThesharepriceusedtodeterminethenumberofsharessubjecttotheawardwasinaccordancewiththerulesoftheDBSP2021.

2 Thesharepriceatdateofawardforthe23September2022awardshasbeenupdatedinthisyear'sReportonDirectors'Remunerationfromsharepriceasat22September2022to

sharepriceasat23September2022.

3 Awardsordinarilyvestonthethirdanniversaryofgrant,conditionalonlyoncontinuedemployment.

113

STRATEGIC REPORT GOVE R NANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION

AsdisclosedintheReportonDirectors’Remunerationfortheyearended31May2021,andinlinewiththeCompany’sRemuneration

Policyatthetime,25%oftheannualbonusearnedfortheyearended31May2021wasdeferredintoshares,intheformofconditional

awards,forbothJonathanMyersandSarahPollard.Thesearesetoutinthepriortable.Theseawardsveston23September2024,

onthethirdanniversaryofgrant,conditionalonlyoncontinuedemployment.

Lastyear’sReportonDirectors’Remunerationsetoutthedeferralofannualbonusearnedfortheyearended31May2023forboth

JonathanMyersandSarahPollard.InlinewiththeCompany’sRemunerationPolicyatthetime,25%wasdeferredintoshareswith

awardsordinarilyvestingonthethirdanniversaryofgrant,conditionalonlyoncontinuedemployment.Theseawardsaredetailed

inthepriortable.

STATEMENT OF DIRECTORS’ SHAREHOLDING AND SHARE INTERESTS

TheCommitteehasestablishedshareownershipguidelinesthatrequireExecutiveDirectors:

• Tobuildupandretainholdingsofshares(and/ordeferredsharesnetoftax)worth200%ofsalary

• Untilthisshareownershipthresholdismet,toretainshareswithavalueequalto50%ofthenetgainaftertaxarisingfromthe

acquisitionofsharespursuanttoanyoftheCompany’sshareincentiveplans

• AssetoutintheRemunerationPolicy,todefer40%ofanybonusearnedintosharesfortwoyears

• AfterceasingtobeaDirector,tomaintainthelowerof:(1)ashareholdingofatleast200%oftheirbasesalaryforthefirstyear

followingcessationoftheiremployment,and100%forthesecondyear;and(2)theirshareholdingoncessation.

Inaddition,thereisanexpectationthatNon-ExecutiveDirectorsbuildupinterestsintheCompany’ssharesworth100%oftheir

basefee,netofstatutorydeductions,withinfouryearsofappointment.

INTERESTS IN SHARES (AUDITED)

TheinterestsintheCompany’ssharesofeachoftheExecutiveDirectorsasat31May2024(togetherwithinterestsheldbyany

connectedpersons)were:

Ordinary shares

held at 31 May 2024

Interests in share

incentive schemes

that are not subject

to performance

conditions as at 31

May 20241

Interests in share

incentive schemes

that are subject

to performance

conditions as at 31

May 2024

Options that have

vested but not yet

been exercised as at

31 May 2024

Shares held under

the SIP as at 31 May

20242

Value of shares held

at 31 May 2024 as a

% of base salary

J Myers 212,771 686,222 865,386 0 4,960 100.30%

SPollard 37,738 319,995 422,376 0 4,822 58.56%

1 IncludesunvestedawardsunderthePSPthatremainsubjecttoperformanceconditions.

2 Between31May2024and12September2024,JonathanMyersandSarahPollardeachacquired721sharesundertheSIP.

WhiletheExecutiveDirectorshavenotyetmettheguidelinegiventheirdatesofappointmenttotheCompanyandBoard,progressis

beingmadetowardsachievingthe200%ofsalaryguideline.

TheinterestsintheCompany’ssharesofeachoftheNon-ExecutiveDirectors(togetherwithinterestsheldbyanyconnectedpersons)

asat31May2024,ordateofresignationifearlier,aredetailedbelow:

Name

Shareholding

requirement as %

of net fee

Ordinary shares held at

31 May 2024 or date of

resignation if earlier

Total price paid

to acquire shares

Shareholding as % of fee

at 31 May 2024 or date

of resignation if earlier

DavidTyler 100% 59,005 £76,687 51%

KirstyBashforth 100% 22,469 £38,524 121%

DariuszKucz

n/a 7,50 0 n/a n/a

JohnNicolson 100% 0 0 0

JeremyTownsend

n/a 20,000 n/a n/a

JiteshSodha 100% 22,200 £54,923 173%

ValeriaJuarez 100% 23,860 £35,386 111%

VivekAhuja 100% 20,000 £18,995 60%

1 Asatdateofresignation,14September2023.

2 Asatdateofresignation,28February2024.

Assetoutabove,Non-ExecutiveDirectorsareexpectedtobuildupinterestsintheCompany’ssharesworth100%oftheirbasefee,

netofstatutorydeductions,withinfouryearsofappointment.Asat31May2024,theNon-ExecutiveDirectorsexceededthisexpectation,

withtheexceptionofDavidTyler,JohnNicholsonandVivekAhuja,whojoinedtheBoardon1May2024.

TherehavebeennochangesintheinterestsofanyNon-ExecutiveDirectorbetween31May2024and12September2024.

Report on Directors’ Remuneration continued

PZ Cussons plc / AnnualReportandAccounts2024 / Governance

114

PENSION BENEFITS (AUDITED)

DirectorsareeligibleformembershipoftheCompany’sdefinedcontributionpensionarrangementsand/ortheprovisionofcash

allowancesinlieuthereof.ThecontributionforJonathanMyersandSarahPollardissetat10%ofsalary,inlinewiththerateapplicable

tothewiderUKemployeepopulation.NoExecutiveDirectorhasaccruedbenefitrelatingtolegacyDefinedBenefitpensionschemes

previouslyoperatedbytheGroup.

LOSS OF OFFICE PAYMENTS AND PAYMENTS TO FORMER DIRECTORS (AUDITED)

TherewerenolossofofficeorpaymentstoformerDirectorsduringtheyear.

LIMITS ON SHARES ISSUED TO SATISFY SHARE INCENTIVE PLANS

TheCompany’sshareincentiveplansmayoperateovernewlyissuedordinaryshares,treasurysharesorordinarysharespurchasedin

themarket.InrelationtoalloftheCompany’sshareincentiveplans,theCompanymaynot,inanyten-yearperiod,issue(orgrantrights

requiringtheissueof)morethan10%oftheissuedordinarysharecapitaloftheCompanytosatisfyawardstoparticipants,normore

than5%oftheissuedordinarysharecapitalforexecutiveshareplans.Inrespectofawardsmadeduringtheyearended31May2022

undertheCompany’sshareincentiveplans,nonewordinaryshareswereissued.

PERFORMANCE GRAPH

ThegraphbelowillustratestheperformanceofPZCussonsplcmeasuredbyTotalShareholderReturn(TSR)overtheten-yearperiodto

31May2024againsttheTSRofaholdingofsharesintheFTSE250Indexoverthesameperiod,basedonaninitialinvestmentof£100.

TheFTSE250IndexhasbeenchosenasPZCussonsplcisaconstituentofthatindex.

CHIEF EXECUTIVE OFFICER REMUNERATION FOR PREVIOUS TEN YEARS

Total remuneration

(£000)

Annual bonus %

of maximum opportunity

LTIP % of

maximum opportunity

2023–24 Jonathan Myers 1,391 66.4% 8.67%

2022–23 Jonathan Myers 1,569 80.1% 20.0%

2021–22 Jonathan Myers 1,151 54.4% n/a

2020–21 AlexKanellis 1,518 100.0% n/a

2019–20

AlexKanellis 660 n/a n/a

2018–19 AlexKanellis 802 0% 0%

2017–18 AlexKanellis 732 0% 0%

2016–17 AlexKanellis 1,586 100.0% 0%

2015–16 AlexKanellis 1,105 47.4% 0%

2014–15 AlexKanellis 1,463 72.8% 32.5%

1 For2019–20thefigurefortotalremunerationrepresentsthepayofAKanellisfrom1June2019to31January2020,thefeespaidtoCSilverwhileactingasExecutiveChairfrom

1February2020through30April2020andthepayofJMyerssincehisappointmenton1May2020.Nobonuswaspaidtoanyoftheseindividualsandthe2017and2018PSPawards

lapsedinfull.

PZ Cussons plc TSR vs the FTSE 250 index TSR

Value (£)

300

200

250

150

100

PZ Cussons plc FTSE 250 Index

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

115

STRATEGIC REPORT GOVE R NANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION

RELATIVE IMPORTANCE OF SPEND ON PAY

ThetablebelowshowsPZCussons’distributionstoshareholdersandtotalemployeepayexpenditureforthefinancialyearsended

31May2022and31May2023,andthepercentagechange:

2024

£m

2023

£m

Change

Total employee costs 79.7 87.21 -9%

Dividendspaid 21.9 26.8 -18%

1 RestatedtoincludethecostsofChildsFarmemployees.

CHANGE IN DIRECTORS’ REMUNERATION AND FOR EMPLOYEES

ThetablebelowshowsthechangeinannualDirectorremuneration(definedassalary,taxablebenefitsandannualbonus),comparedto

thechangeinemployeeannualremunerationforacomparatorgroup,fromFY23toFY24.

ThePZCussons(International)Limitedemployeepopulationwaschosenasasuitablecomparatorgroupbecauseitisconsideredtobe

themostrelevant,duetotheUKemploymentlocationandthestructureoftotalremuneration(employeesareabletoearnanannual

bonusaswellasreceivingabasesalaryandbenefits),andbecausePZCussonsplchasnoemployeesotherthantheExecutiveDirectors.

Employees

Jonathan

Myers

(CEO)

Sarah

Pollard

(CFO)

David

Tyler

(Chair)1

Kirsty

Bashforth

Dariusz

Kucz2

John

Nicolson

Jeremy

Townsend3

Jitesh

Sodha

Valeria

Juarez

Vivek

Ahuja4

2023–24

Salary/fees 5% 4.2% 8.7% n/a 14.4% n/a 5.8% n/a 6.8% 15.6% n/a

Benefits 7.2% 0.8% 1.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

Bonus -26.2% -13.4% -10.4% n/a n/a n/a n/a n/a n/a n/a n/a

2022–23

Salary/fees 3.5% 3.4% 8.7% n/a -0.6% -0.7% -0.6% -0.6% 9.1% 44.4% –

Benefits 0.0% 0.2% 0.3% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% –

Bonus 41.6% 52.4% 62.7% n/a n/a n/a n/a n/a n/a n/a –

2021–22

Salary/fees 3.5% 3.5% 10.5% – 6.1% 5.1% 4.7% 4.7% 100.0% 100.0% –

Benefits 0.0% 0.0% 0.0% – 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% –

Bonus -62.0% -56.0% 38.0% – n/a n/a n/a n/a n/a n/a –

2020–21

Salary/fees 3.0% 0.0% n/a – 17.5% 0.0% 0.0% (19.0)% – – –

Benefits 0.0% 0.1% n/a – -100.0% -100.0% -100.0% n/a – – –

Bonus 0.0% n/a n/a – n/a n/a n/a n/a – – –

1 DavidTylerwasappointedtotheBoardon24November2022andasChairon23March2023.The%increasefor2023–24wasskewedduetotheprioryear'sfigurereflectingan

incompletefinancialyearofservice;therefore,thefigureisinappropriateandnotpresentedinthetable.

2 DariusKuczretiredfromtheBoardon14September2023.The%feeincreasefor2023–24wasskewedonthecurrentyear'sfigure,reflectinganincompletefinancialyearofservice;

therefore,thefigureisinappropriateandnotpresentedinthetable.

3 JeremyTownsendretiredfromtheBoardon28February2024.The%feeincreasefor2023–24wasskewedduetothecurrentyear'sfigurereflectinganincompletefinancialyearof

service;therefore,thefigureisinappropriateandnotpresentedinthetable.

4 VivekAhujawasappointedtotheBoardon1May2024.

Report on Directors’ Remuneration continued

PZ Cussons plc / AnnualReportandAccounts2024 / Governance

116

CEO TO ALL-EMPLOYEE PAY RATIO

OptionAwasusedfortheanalysisbecauseitisthe‘purest’approach.UnderOptionA,companiesarerequiredtodeterminetotal

full-timeequivalenttotalremunerationforallUKemployeesfortherelevantfinancialyear.TheCEOsinglefigureisthepayreceived

byJonathanMyersinrelationtoFY24.Assetout,insettingremunerationfortheCEO,bothinternalandexternalbenchmarksare

considered,asistheremunerationofthebroaderworkforce.TheCommitteereceivesmarketupdatesfromtheirindependentadvisers

whichprovidecontextfromotherlistedcompanies.ExecutivepaypolicyfortheCEO,otherDirectorsandseniormanagementisthenset

astobeappropriatelypositionedforthesizeandscopeoftherolesandexperienceoftheindividuals.

Theratioisconsideredtobereflectiveofthepay,rewardandprogressionpolicieswithintheCompany’sUKemployeepopulation.Pay

levelsforrolesaresettakingintoaccountinternalrelativitiesandexternalbenchmarksandpromotionsareconsideredonanannualcycle.

Employeedataincludesthoseemployedasat31May2024.Foranyemployeewhojoinedafter1June2023andwasstillemployedat

31May2023,remunerationforthatemployeehasbeencalculatedasiftheemployeehadbeenemployedforthefullyear.Wherethere

wasnoidentifiableemployeeatthe25th,50thor75thpercentile,thenthedatafortheemployeeclosesttothatpercentilehasbeen

used.Iftwoemployeeswereequallyclosetotherelevantpercentilethentheemployeewiththemostrepresentativepaymixwasselected.

Additionally,wherepayincludesstatutorypaysuchasmaternity,paternityorsickpaytheseamountshavebeenincludedinthecalculation.

Method

CEO Single figure

(£000) Upper quartile Median Lower quartile

2023–24 A 1,391 14 20 30

2022–23

A 1,569 18 29 44

2021–22 A 1,151 15 23 30

2020–21 A 1,518 19 29 40

2019–20 A 660 9 13 19

1 CEOsinglefigurehasbeenupdatedtoreflectactualvestingsharepriceandtheadditionalFY21PSPaward.Seenote5undersinglefiguretable.

Itshouldbenotedthatthepayratioislikelytochangeyear-on-yeargivenasignificantproportionoftheCEO’sremunerationpackage

comprisesofvariablepay.

Thesalaryandtotalpayfortheindividualsidentifiedatthelowerquartile,medianandupperquartilepositionsasat31May2024areset

outbelow:

2024 Salary Total pay

Upperquartileindividual £77, 218 £99,940

Medianindividual £51,989 £68,091

Lowerquartileindividual £33,503 £46,382

117

STRATEGIC REPORT GOVE R NANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION

CONSIDERATION BY THE DIRECTORS OF MATTERS RELATING TO DIRECTORS’ REMUNERATION

Throughouttheyear,theCommitteehascomprisedexclusivelyindependentNon-ExecutiveDirectorsinaccordancewiththe2018Code.

TheCommitteeheldfourscheduledandoneadditionalmeetingduringthe2024financialyearwithouractivitiessummarisedinthe

tablebelow.

ThefollowingDirectorsweremembersoftheRemunerationCommitteewhenmattersrelatingtotheDirectors’remunerationforthe

yearwerebeingconsidered:

• KirstyBashforth(Chairfrom1July2020)

• JeremyTownsend(steppeddownfromtheCommitteeon19June2023andBoardon28February2024)

• JiteshSodha

• ValeriaJuarez.

Duringtheyear,theCommitteereceivedadvicefromWillisTowersWatson(WTW)inrelationtomarketpractice.WTWisamember

oftheRemunerationConsultantsGroupandhassignedthevoluntaryCodeofPracticeforremunerationconsultants.Thefeespaidto

WTWinrespectofthisworkwerechargedonatimeandmaterialsbasisandtotalled£53,450excludingVATfortheyear.WTWdoesnot

haveanyotherconnectionswithPZCussonsplcoranyDirectoroftheCompany.TheCommitteeappointedWTWfollowingafullreview

processandissatisfiedthattheadviceprovidedbyWTWisobjectiveandindependent.

Duringtheyear,theCommitteeconsultedDavidTyler(inhiscapacityasNon-ExecutiveChair)onissueswhereitfelthisexperienceand

knowledgecouldbenefititsdeliberationsandheattendedmeetingsbyinvitation.TheCommitteealsoconsultedJonathanMyersas

CEOonproposalsrelatingtotheremunerationofmembersoftheGroup’sseniormanagementteamandhetooattendedmeetingsby

invitation.TheCFO,ChiefPeopleOfficerandGroupRewardDirectoralsoattendedmeetingsbyinvitation.TheCommitteeissupportedby

theCompanySecretarywhoactsasSecretarytotheCommittee.Inviteesarenotinvolvedinanydecisionsordiscussionsregardingtheir

ownremuneration.

InsettingremunerationforExecutiveDirectorsandseniormanagers,bothinternalandexternalbenchmarksareconsidered,asisthe

remunerationofthebroaderemployeepopulation.

COMMITTEE ACTIVITIES DURING THE YEAR ENDED 31 MAY 2024

July 2023 • RemunerationPolicyreview

• ReviewofdraftRemunerationReportinrespectofFY23

• Updateonexternalenvironmentfromindependentadvisor

• ReviewannualbonusawardsforFY23

• Reviewofstructureandfinancialtargetsfortheannual

bonusschemeforFY24.

• Approvalofexecutivesalaryreview

• ReviewofvestingofpastawardsunderthePSPandupdate

ontheprogressofin-flightawards

• Reviewoflevelsofshareownership

• ReviewofCompany-wideremunerationdashboard.

August 2023 • Reviewandapprovaloffinancialtargetsfortheannualbonus

schemeforFY23.

• CPOFY23incentiveassessment.

September

2023

• Updateonexternalenvironmentfromindependentadvisor

• Approvalofshareholdercommunication

• ApprovalofFY23Directors’RemunerationReport

• ReviewofpostauditannualbonusawardsforFY23

• ReviewoffinaltargetforFY24annualbonus

• ReviewofExecutiveDirectorFY24KeyBusinessObjectives.

• InflightPSPawardupdate

• ApprovalofExecutiveDirectorFY21PSPvesting

• ReviewandapprovalofFY24RSPandDeferredBonusShare

Planawards

• ReviewofCompany-wideremunerationdashboard

• Goodleaverapproval.

March 2024 • Updateonexternalenvironmentfromindependentadvisor

• UpdateonFY24annualbonusperformance

• Updateontheprogressofin-flightPSPawards

• Reviewofseniormanagementinterimsalaryproposals.

• ReviewoftherevisedCorporateGovernanceCode

rewardprovisions

• ReviewofCompany-wideremunerationdashboard

• Goodleaverapproval

• ReviewofinterimFY24RSPawards.

May 2024 • Updateonexternalenvironmentfromindependentadvisor

• UpdateonFY24annualbonusperformance

• ConsiderationofFY25annualbonusdesignprinciples

• Updateontheprogressofin-flightPSPawards.

• ReviewofCompany-wideremunerationdashboardincluding

salaryreviewproposals

• Reviewofapproachtointerimremunerationchangesfor

ExecutiveCommittee

• ReviewofBoardChair’sfee.

Report on Directors’ Remuneration continued

PZ Cussons plc / AnnualReportandAccounts2024 / Governance

118

SHAREHOLDER ENGAGEMENT

TheCommitteerecognisestheimportanceofunderstandingtheperspectiveoftheshareholderswhentakingdecisions.We

communicatewithourshareholdersduringbothRemunerationPolicyreviewsandinadvanceofanysignificantchangestothe

implementationofourpolicy.Whilewenotethattherearearangeofdifferentviewsamonginstitutionalinvestorsonthemost

appropriatepaymodelsandperformancemetrics,wewillalwaysconsidertheviewsexpressedtousandexplainwhywetakeadifferent

approachifwechoosetodoso.

STATEMENT OF SHAREHOLDER VOTING

TheCommitteeisdirectlyaccountabletotheshareholdersand,inthiscontext,iscommittedtoanopenandtransparentdialoguewith

theshareholdersontheissueofexecutiveremuneration.Forexample,duringFY23,thistooktheformofconsultationontheproposed

Policy,aswellasquestionsatthe2023AGM.

TheRemunerationCommitteeChairwillbeavailabletoanswerquestionsfromtheshareholdersregardingremunerationatthe2024

AGMandlooksforwardtoongoingdialoguewithshareholdersduringFY25.

Thevotescastatthe2023AGMinrespectoftheadvisoryvoteonthe2023ReportonDirectors’Remunerationandinrespectofthe

bindingvotefortheDirectors’RemunerationPolicyareshownbelow:

ADVISORY VOTE ON THE 2023 REPORT ON DIRECTORS’ REMUNERATION AND THE CHAIR'S ANNUAL STATEMENT (2023 AGM)

Votes for Votes against

Votes cast Votes withheldNumber % Number %

321,140,960 93.34 22,924,118 6.66 344,065,078 47,535

BINDING VOTE ON AMENDMENTS TO THE DIRECTORS’ REMUNERATION POLICY (2023 AGM)

Votes for Votes against

Votes cast Votes withheldNumber % Number %

236,473,923 71.24 95,488,209 28.76 331,962,132 12,150,481

ByorderoftheBoardofDirectors

Kirsty Bashforth

Remuneration Committee Chair

18September2024

119

STRATEGIC REPORT GOVE R NANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION

Report of the Directors

TheDirectorspresenttheirreporttogetherwiththeauditedConsolidatedFinancialStatementsandtheReportoftheAuditorfor

theyearended31May2024.

PRINCIPAL ACTIVITIES

TheprincipalactivitiesoftheGrouparethemanufactureanddistributionofsoaps,detergents,toiletries,beautyproducts,

pharmaceuticals,electricalgoods,edibleoils,fatsandspreadsandnutritionalproducts.Thesubsidiaryundertakingsandjointventures

principallyaffectingtheprofits,liabilitiesandassetsoftheGrouparelistedinnote28oftheConsolidatedFinancialStatements.

RESULTS AND DIVIDENDS

AsummaryoftheGroup’sresultsfortheyearissetoutintheFinancialReviewonpages18to21oftheStrategicReport.

TheDirectorshaveannouncedtheirintentiontodeclareaninterimdividendof2.10p(2023:3.73p)perordinarysharetobepaidon

4December2024toordinaryshareholdersontheregisteratthecloseofbusinesson1November2024,which,togetherwiththe

interimdividendof1.50p(2023:2.67p)paidon4April2024,makesatotalof3.60pfortheyear(2023:6.40p).

SCOPE OF THE REPORTING IN THIS ANNUAL REPORT AND ACCOUNTS

TheGroup’sstatementoncorporategovernancecanbefoundonpages72to79whichisincorporatedbyreferenceandformspart

ofthisReportoftheDirectors.ForthepurposesofcompliancewithDTR4.1.5R(2)andDTR4.1.8R,therequiredcontentofthe

ManagementReportcanbefoundintheStrategicReportandthisReportoftheDirectors,includingthesectionsoftheAnnualReport

andAccountsincorporatedbyreference.

TheinformationrequiredtobedisclosedbytheUKListingRules,UKLR6.6.1R(forthepurposesofUKLR6.6.4R)andsection416(1)(a)

oftheCompaniesActcanbefoundinthefollowinglocations:

Section Topic Location

1 Detailsoflong-termincentiveschemesandother

employee share schemes

ReportonDirectors’Remuneration–pages107to119

2 WaiverofemolumentsbyaDirector ReportonDirectors’Remuneration–pages107to119

3 Shareholderwaiversofdividends EmployeeShareOwnershipTrust(ESOT):seenote24ofthe

ConsolidatedFinancialStatements

4 Shareholderwaiversoffuturedividends ESOT:seenote24oftheConsolidatedFinancialStatements

5 Agreementswithcontrollingshareholders ReportoftheDirectors–page122

AlltheinformationreferencedaboveisherebyincorporatedbyreferenceintothisReportoftheDirectors.

THE BOARD

TheDirectorswhoservedthroughouttheyear,andunlessstatedotherwisewereinofficeuptothedateofsigningthefinancial

statements,aredetailedbelow:

Service in the year ended 31 May 2024 Service in the year ended 31 May 2024

DavidTyler Servedthroughouttheyear KirstyBashforth Servedthroughouttheyear

Jonathan Myers Servedthroughouttheyear JeremyTownsend Serveduntil28February2024

SarahPollard Servedthroughouttheyear JiteshSodha Servedthroughouttheyear

JohnNicolson Servedthroughouttheyear ValeriaJuarez Servedthroughouttheyear

DariuszKucz Serveduntil14September2023 VivekAhuja Appointedon1May2024

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DIRECTORS’ INTERESTS

DetailsoftheDirectors’andconnectedpersons’interestsinthesharecapitaloftheCompanycanbefoundintheReportonDirectors'

Remunerationonpage114.NoDirectorhadanybeneficialinterestduringtheyearinsharesordebenturesofanysubsidiarycompany.

Savefortheirservicecontractsorlettersofappointment,therewerenocontractsofsignificancesubsistingduring,orattheendof,the

financialyearwiththeCompanyoranyofitssubsidiariesinwhichaDirectoroftheCompanywasmateriallyinterested.

OTHER SUBSTANTIAL INTERESTS

TheCompanyhadbeennotifiedofthefollowingdirectorindirectinterestsamountingto3%ormoreofitsissuedsharecapitalasatthe

endofthefinancialyearandat12September2024:

As at 12 September 2024 As at 31 May 2024

Number of shares % Number of shares %

ZochonisCharitableTrust 63,019,193 14.70% 63,019,193 14.70%

SirJBZochonisWillTrust 49,320,712 11.50% 49,320,712 11.50%

HeronbridgeInvestmentMgt 31,157,024 7. 27% 31,157,024 7. 27 %

FILLimited 21,848,999 5.10% 21,848,999 5.10%

MajedieAssetmanagement 21,160,944 4.94% 21,160,944 4.94%

JBZochonisSettlement 19,927,130 4.65% 19,927,130 4.65%

LindsellTrainInvestmentManagement 18,682,474 4.36% 18,682,474 4.36%

MrsCMGreenSettlement 15,322,741 3.57% 15,322,741 3.57%

Noshareswereissuedduringtheyear.FurtherinformationabouttheCompany’ssharecapitalisgiveninnote24oftheConsolidated

FinancialStatements.

121

STRATEGIC REPORT GOVE R NANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION

Report of the Directors continued

ADDITIONAL STATUTORY INFORMATION

Directors’ indemnification

and insurance

IndemnitiesareinforceunderwhichtheCompanyhasagreedtoindemnifytheDirectors,theCompanySecretary

andofficersofGroupsubsidiaries,totheextentpermittedbylaw,againstclaimsfromthirdpartiesinrespectof

certainliabilitiesarisingoutof,orinconnectionwith,theexecutionoftheirduties.Theindemnifiedindividuals

arealsoindemnifiedagainstthecostofdefendingcriminalprosecutionoraclaimbytheCompany,itssubsidiaries

oraregulatorprovidedthat,wherethedefenceisunsuccessful,theindemnifiedpersonmustrepaythose

defencecosts.

TheCompanypurchasesandmaintainsinsurancefortheDirectorsandofficersoftheCompanyinperformingtheir

duties,aspermittedbySection233oftheCompaniesAct2006.Thisinsurancehasbeeninplaceduringtheyear

andremainsinplaceatthedateofsigningthisreport.

Significant agreements –

Relationship Agreement

TheFinancialConductAuthority’sUKListingRulesrequireapremiumlistedcompanywithacontrolling

shareholder(beingashareholderwhoexercisesorcontrols,ontheirownortogetherwithanypersonwithwhom

theyareactinginconcert,30%ormoreofthevotesabletobecastonallorsubstantiallyallmattersatageneral

meeting)toenterintoawrittenandlegallybindingagreementthatisintendedtoensurethatthecontrolling

shareholdercomplieswithcertainindependenceprovisions.Theseindependenceprovisionsareundertakings

thattransactionsandarrangementswiththecontrollingshareholderand/oranyoftheirassociateswillbe

conductedatarm’slengthandonnormalcommercialterms;thatneitherthecontrollingshareholdernoranyof

itsassociateswilltakeanyactionthatwouldhavetheeffectofpreventingthelistedcompanyfromcomplyingwith

itsobligationsundertheUKListingRules;andthatneitherthecontrollingshareholdernoranyofitsassociates

willproposeorprocuretheproposalofashareholderresolutionthatisintendedorappearstobeintendedto

circumventtheproperapplicationoftheUKListingRules(together,Undertakings).

ForthepurposesoftheUKListingRules,certainshareholdersintheCompany,principallycomprisingthefounding

Zochonisfamily,relatedfamilygroupsandtrustsundertheircontrolaredeemedtobecontrollingshareholders

oftheCompany(together,theConcertParty).InFY21,theTakeoverPanelapprovedthereconstitutionofthe

ConcertPartyascomprisingthecoremembersofthefoundingZochonisfamily,relatedfamilygroupsandcertain

relatedtrustsholding.Asof31May2024,theConcertPartyheldintheaggregate,approximately42.89%ofthe

issuedsharecapitaloftheCompany.

AsrequiredbytheUKListingRules,theBoardconfirmsthattheCompanyenteredintoawrittenrelationship

agreementwiththeConcertPartyon31May2024containingtheUndertakingsandaprocurementobligation

(theRelationshipAgreement).Thisreplacedtherelationshipagreementdated17November2014.TheBoardalso

confirmsthat:

• theCompanycompliedwiththeUndertakingsintheRelationshipAgreement;

• sofarastheCompanyisaware,theUndertakingsintheRelationshipAgreementwerecompliedwithbythe

ConcertPartyanditsassociates;and

• sofarastheCompanyisaware,theprocurementobligationincludedintheRelationshipAgreementwas

compliedwithbytheConcertParty.

Political and charitable

contributions

CharitablecontributionsintheUKduringtheyearamountedto£0.3million(2023:£0.5million).

Nopoliticalcontributionsweremade(FY23:£nil).

Research and

development

TheGroupmaintainsin-houseteamsandfacilitiesforresearchanddevelopmentintheUK,Indonesia,Nigeriaand

Australia.Inaddition,researchanddevelopmentissubcontractedtoapprovedexternalorganisations.Currently

allsuchexpenditureischargedagainstprofitintheyearinwhichitisincurred,asitdoesnotmeetthecriteriafor

capitalisationunderIAS38‘IntangibleAssets’.

Greenhouse gas emissions GlobalgreenhousegasemissionsdatafortheyeararecontainedwithintheSustainability–Environmentsection

onpages33and34.

Employment of people

with disabilities

Duringtheyear,theGrouphasmaintaineditspolicyofprovidingequalopportunitiesfortheappropriate

employment,traininganddevelopmentofpeoplewithdisabilities.Ifanyemployeesshouldbecomedisabled

duringthecourseoftheiremployment,ourpolicyistooverseethecontinuationoftheiremploymentandto

arrangetrainingfortheseemployees.

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122

Employee information TheGrouprecognisesthebenefitsofkeepingemployeesinformedoftheprogressofthebusinessandofinvolving

themintheirCompany’sperformance.Themethodsofachievingsuchinvolvementaredifferentineachcompany

andcountryandhavebeendevelopedovertheyearsbylocalmanagementworkingwithlocalemployeesinways

thatsuittheirparticularneedsandenvironment,withtheactiveencouragementoftheparentorganisation.

EmployeeviewsareprovidedtotheBoardthroughupdatesfromthedesignatedNon-ExecutiveDirectorfor

employeeengagement.

Furtherdetailsonourengagementwithemployeescanbefoundonpages22to27.

Inclusion and diversity PZCussonsisanextremelydiverseorganisationintermsofitsethnicandculturalmake-upandthisissomething

thatwecontinuetopromote.WeemploymanydifferentnationalitiesincludingIndian,Chinese,Polish,

Indonesian,Singaporean,Thai,Greek,Australian,Nigerian,Ghanaian,Kenyan,American,CanadianandBritish.

Weareclearthatwewantourleadershipteamtoreflectthediversityofthemarketsinwhichwefunctionand

forthatreasonwearefocusedondevelopinglocaltalentwhounderstanddifferentcultures.Wedonotemploy

anypersonbelowthelocallegalworkingageandwewillnot,inanycircumstances,employanyonebelowthe

ageof16.

TheCompanyhasadoptedadiversityandinclusionstatementthatsetsouttheCompany’scommitmenttohaving

aBoard(includingitsCommitteesoftheBoard)andanExecutiveCommitteethatreflectsthediversityofour

workforceandconsumersinthecountriesinwhichweoperate.

ForthepurposesofdisclosureunderSection414C(8)oftheCompaniesAct,furtherdetailsonthecompositionof

ourglobalemployeepopulationasat31May2024aresetoutinthetablebelow:

2024 2023 2022 2021 2020

No. % No. % No. % No. % No. %

Femaleemployees 688 28 726 27 756 27 832 28 899 27

Male employees 1,749 72 1,918 73 2,005 73 2,111 72 2,461 73

Femaleseniormanagers 75 43 74 40 61 36 51 32 68 35

Maleseniormanagers 101 57 109 60 109 64 110 68 125 65

FemaleGroup

BoardDirectors 3 37 3 33 4 44 3 43 4 50

Male Group

BoardDirectors 5 63 6 67 5 56 4 57 4 50

External Auditor PricewaterhouseCoopersLLP(PwC)hassignifieditswillingnesstoactasExternalAuditortotheCompanyfor

theyearending31May2025and,inaccordancewithsection485oftheCompaniesAct2006,aresolutionfor

itsreappointmentwillbeproposedattheforthcomingAnnualGeneralMeeting(AGM).Astatementonthe

independenceoftheExternalAuditorisincludedintheAuditandRiskCommitteeReportonpage86.

Principal risks and

uncertainties facing the

Group

TheGroup’sbusinessactivities,financialconditionandresultsofoperationscouldbeaffectedbyavarietyofrisks

oruncertainties.ThesearesummarisedintheRiskManagementandPrincipalRiskssectiononpages42to50of

theStrategicReport.

Annual General Meeting TheCompany’s2024AGMwillbeheldatManchesterBusinessPark,3500AviatorWay,Manchester,M225TG

at10:30amon21November2024.TheresolutionsthatwillbeproposedattheAGMaresetoutintheseparate

NoticeofAGM,whichaccompaniesthisAnnualReportandAccounts.

Share capital Asof31May2024,theCompany’sissuedsharecapitalconsistedof428,724,960ordinarysharesof1peach.

Rights and obligations

attaching to shares

Subjecttoapplicablestatutesandothershareholders’rights,sharesmaybeissuedwithsuchrightsandrestrictions

astheCompanymaybyordinaryresolutiondecide,or,ifthereisnosuchresolutionorsofarasitdoesnotmake

specificprovision,astheBoardmaydecide.

Restrictions on voting UnlesstheBoarddecidesotherwise,nomembershallbeentitledtovoteatanymeetinginrespectofany

sharesheldbythatmemberifanycallorothersumthatisthenpayablebythatmemberinrespectofthatshare

remainsunpaid.

Powers of Directors SubjecttotheCompany’sMemorandumandArticlesofAssociation,theCompaniesAct2006andanydirections

givenbyspecialresolution,thebusinessoftheCompanywillbemanagedbytheBoard,whichmayexerciseallthe

powersoftheCompany.

123

STRATEGIC REPORT GOVE R NANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION

Report of the Directors continued

ADDITIONAL STATUTORY INFORMATION CONTINUED

Articles of Association TherulesgoverningtheappointmentandreplacementofDirectorsarecontainedintheCompany’sArticles

ofAssociation.ChangestotheArticlesofAssociationmustbeapprovedbyshareholdersinaccordancewith

legislationinforcefromtimetotime.

Purchase of own shares Noshareswerepurchasedfrom1June2023to31May2024(2023:nil)andnoacquisitionsweremadebythe

ESOT(seenote24oftheConsolidatedFinancialStatements).

Restrictions on the

transfer of securities

TherearenorestrictionsonthetransferofsecuritiesintheCompanyexcept:

• thatcertainrestrictionsmayfromtimetotimebeimposedbylawsandregulations(forexample,relatingto

insidertrading);and

• pursuanttotheUKListingRulesoftheFinancialConductAuthoritywherebycertainemployeesoftheCompany

requiretheapprovaloftheCompanytodealintheCompany’sordinaryshares.

Going concern TheGroup’sbusinessactivities,togetherwiththefactorslikelytoaffectitsfuturedevelopment,performanceand

positionaresetoutintheStrategicReport.ThefinancialpositionoftheGroupandliquiditypositionaredescribed

withintheFinancialReview.Inaddition,note19oftheConsolidatedFinancialStatementsincludespoliciesin

relationtotheGroup’sfinancialinstrumentsandriskmanagement,andpoliciesformanagingcreditrisk,liquidity

risk,marketrisk,foreignexchangerisk,pricerisk,cashflowandinterestrateriskandcapitalrisk.

Aftermakingenquiries,andsubjecttothematerialuncertaintynotedinnote1totheConsolidatedFinancial

Statements,theDirectorshaveareasonableexpectationthattheCompanyandtheGrouphaveadequate

resourcestocontinueinoperationalexistenceforaperiodofatleast12monthsfromthedateofapproving

theFinancialStatements.Accordingly,theycontinuetoadoptthegoingconcernbasisinpreparingtheAnnual

ReportandAccounts.AviabilitystatementhasbeenpreparedandapprovedbytheBoardandthisissetout

onpages51to53.

Events after the balance

sheet date

Therewerenopostbalancesheetevents.

Engagement with

Employees, suppliers and

Customers

PleaseseeStatementofengagementwithemployeesonpage73,Statementofengagementwithotherbusiness

relationshipsonpage74andtheSection172(1)Statementonpage55.

Additional disclosures OtherinformationthatisrelevanttotheReportoftheDirectors,andwhichisincorporatedbyreferenceintothis

report,canbelocatedasfollows:

• Proposedfuturedevelopmentsforthebusinessaresetoutonpages10to12

• DetailsofGroupsubsidiariesincludingoverseasbranchesaresetoutinnote28oftheConsolidated

FinancialStatements

• Financialinstrumentsandriskmanagementaresetoutinnote19oftheConsolidatedFinancialStatements

• Tradepayablesundervendorfinancingarrangementsaresetoutinnote20oftheConsolidated

FinancialStatements.

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124

STATEMENT OF DIRECTORS’ RESPONSIBILITIES IN RESPECT OF THE FINANCIAL STATEMENTS

TheDirectorsareresponsibleforpreparingtheAnnualReportandAccountsandthefinancialstatementsinaccordancewithapplicable

lawandregulations.

CompanylawrequirestheDirectorstopreparefinancialstatementsforeachfinancialyear.UnderthatlawtheDirectorshaveprepared

theGroupFinancialStatementsinaccordancewithUK-adoptedinternationalaccountingstandardsandtheCompanyFinancial

StatementsinaccordancewithUnitedKingdomGenerallyAcceptedAccountingPractice(UnitedKingdomAccountingStandards,

compromisingFRS101ReducedDisclosureFramework,andapplicablelaw).

Undercompanylaw,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CompanyandoftheprofitorlossoftheGroupforthatperiod.Inpreparingthefinancialstatements,

theDirectorsarerequiredto:

• selectsuitableaccountingpoliciesandthenapplythemconsistently;

• statewhetherapplicableUK-adoptedinternationalaccountingstandardshavebeenfollowedfortheGroupFinancialStatementsand

UnitedKingdomAccountingStandards,comprisingFRS101,havebeenfollowedfortheCompanyFinancialStatements,subjecttoany

materialdeparturesdisclosedandexplainedinthefinancialstatements;

• makejudgementsandaccountingestimatesthatarereasonableandprudent;and

• preparethefinancialstatementsonthegoingconcernbasisunlessitisinappropriatetopresumethattheGroupandCompanywill

continueinbusiness.

TheDirectorsareresponsibleforsafeguardingtheassetsoftheGroupandCompanyandhencefortakingreasonablestepsforthe

preventionanddetectionoffraudandotherirregularities.

TheDirectorsarealsoresponsibleforkeepingadequateaccountingrecordsthataresufficienttoshowandexplaintheGroup’sand

Company’stransactionsanddisclosewithreasonableaccuracyatanytimethefinancialpositionoftheGroupandCompanyandenable

themtoensurethatthefinancialstatementsandtheDirectors’RemunerationReportcomplywiththeCompaniesAct2006.

TheDirectorsareresponsibleforthemaintenanceandintegrityoftheCompany’swebsite.LegislationintheUnitedKingdomgoverning

thepreparationanddisseminationoffinancialstatementsmaydifferfromlegislationinotherjurisdictions.

DIRECTORS’ CONFIRMATIONS

TheDirectorsconsiderthattheAnnualReportandAccounts,takenasawhole,isfair,balancedandunderstandableandprovidesthe

informationnecessaryforshareholderstoassesstheGroup’sandCompany’spositionandperformance,businessmodelandstrategy.

EachoftheDirectors,whosenamesandfunctionsarelistedunderOurBoardonpage64confirmthat,tothebestoftheirknowledge:

• TheGroupFinancialStatements,whichhavebeenpreparedinaccordancewithUK-adoptedinternationalaccountingstandards,givea

trueandfairviewoftheassets,liabilities,financialpositionandprofitoftheGroup;

• TheCompanyFinancialStatements,whichhavebeenpreparedinaccordancewithUnitedKingdomAccountingStandards,comprising

FRS101,giveatrueandfairviewoftheassets,liabilitiesandfinancialpositionoftheCompany;and

• TheStrategicReportincludesafairreviewofthedevelopmentandperformanceofthebusinessandthepositionoftheGroupand

Company,togetherwithadescriptionofthePrincipalRisksanduncertaintiesthatitfaces.

InthecaseofeachofthepersonswhowereDirectorsoftheCompanyatthedatewhenthisreportwasapproved:

• sofaraseachoftheDirectorsisaware,thereisnorelevantauditinformation(asdefinedbytheCompaniesAct2006)ofwhichthe

Company’sExternalAuditorisunaware;and

• eachoftheDirectorshastakenallthestepsthattheyoughttohavetakenasDirectortomakethemselvesawareofanyrelevantaudit

informationandtoestablishthattheCompany’sExternalAuditorisawareofthatinformation.

ByorderoftheBoardofDirectors.

Kareem Moustafa

General Counsel and Company Secretary

18September2024

125

STRATEGIC REPORT GOVE R NANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION

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126

128 Independent Auditor’s Report

138 Consolidated Income Statement

139 Consolidated Statement of Comprehensive Income

140 Consolidated Balance Sheet

142 Consolidated Statement of Changes in Equity

143 Consolidated Cash Flow Statement

144 Notes to the Consolidated Financial Statements

198 Company Balance Sheet

199 Company Statement of Changes in Equity

200 Notes to the Company Financial Statements

FINANCIAL

STATEMENTS

STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION

127

CAREX RANGE

REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS

Opinion

Inouropinion:

• PZCussonsplc’sgroupfinancialstatementsandcompanyfinancialstatements(the“financialstatements”)giveatrueandfairviewof

thestateofthegroup’sandofthecompany’saffairsasat31May2024andofthegroup’slossandthegroup’scashflowsfortheyear

thenended;

• thegroupfinancialstatementshavebeenproperlypreparedinaccordancewithUK-adoptedinternationalaccountingstandardsas

appliedinaccordancewiththeprovisionsoftheCompaniesAct2006;

• thecompanyfinancialstatementshavebeenproperlypreparedinaccordancewithUnitedKingdomGenerallyAcceptedAccounting

Practice(UnitedKingdomAccountingStandards,includingFRS101“ReducedDisclosureFramework”,andapplicablelaw);and

• thefinancialstatementshavebeenpreparedinaccordancewiththerequirementsoftheCompaniesAct2006.

Wehaveauditedthefinancialstatements,includedwithintheAnnualReportandAccounts2024(the“AnnualReport”),whichcomprise:

theConsolidatedandCompanyBalanceSheets,asat31May2024;theConsolidatedIncomeStatement,theConsolidatedStatementof

ComprehensiveIncome,theConsolidatedandCompanyStatementsofChangesinEquity,theConsolidatedCashFlowStatementforthe

yearthenended;andthenotestothefinancialstatements,comprisingmaterialaccountingpolicyinformationandotherexplanatory

information.

OuropinionisconsistentwithourreportingtotheAuditandRiskCommittee.

Basis for opinion

WeconductedourauditinaccordancewithInternationalStandardsonAuditing(UK)(“ISAs(UK)”)andapplicablelaw.Ourresponsibilities

underISAs(UK)arefurtherdescribedintheAuditors’responsibilitiesfortheauditofthefinancialstatementssectionofourreport.We

believethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforouropinion.

Independence

Weremainedindependentofthegroupinaccordancewiththeethicalrequirementsthatarerelevanttoourauditofthefinancial

statementsintheUK,whichincludestheFRC’sEthicalStandard,asapplicabletolistedpublicinterestentities,andwehavefulfilledour

otherethicalresponsibilitiesinaccordancewiththeserequirements.

PricewaterhouseCoopersLLPinadvertentlyprovidedataxcomplianceservicetotheGroup,intheformofareportingtoolusedfor

theIndirectTaxComplianceprocess,forafeeof£2,000duringtheyearended31May2024.AstheGroupisapublicinterestentity,

taxcomplianceservicesareimpermissible,andtheprovisionofthisserviceamountedtoabreachofparagraph5.40oftheFRCEthical

Standard2019.

Weconfirmthat,basedonourassessmentofthisbreach,thenatureandscopeoftheserviceandthesubsequentactionstaken,the

provisionoftheservicehasnotaffectedourprofessionaljudgementsinconnectionwithourauditoftheyearended31May2024.

Otherthanthematterreferredtoaboveandtothebestofourknowledgeandbelief,wedeclarethatnonon-auditservicesprohibitedby

theFRCEthicalStandard2019wereprovidedtotheGroup.

Otherthanthosedisclosedinnote4,wehaveprovidednonon-auditservicestothecompanyoritscontrolledundertakingsintheperiod

underaudit.

Independent Auditor’s Report to the Members of PZ Cussons plc

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128

Material uncertainty related to going concern

Informingouropiniononthefinancialstatements,whichisnotmodified,wehaveconsideredtheadequacyofthedisclosuremade

innote1tothegroupfinancialstatementsandnote1tothecompanyfinancialstatementsconcerningthegroup’sandthecompany’s

abilitytocontinueasagoingconcern.TheDirectorshaveconsideredanadditionalseverebutplausibledownsideNairaexchangerate

scenariotostresstesttheGroup’sandCompany’sfinancialforecasts,usingaNairaexchangeratedeclineofgreaterthan10%fromthe

rateasatthestartofSeptember2024.Thisunmitigateddownsidescenarioshowsapotentialbreachoftheinterestcoverfinancial

covenantasat29November2024withinthegoingconcernreviewperiodwhichwouldrequirenegotiatingawaiverofitsinterest

covercovenanttoensuretheGroupandCompanymeettheirborrowingfacilityobligationsoverthegoingconcernreviewperiodasthe

committedcreditfacilitymaybecomerepayableondemand.Theseconditions,alongwiththeothermattersexplainedinthosenotes

tothefinancialstatements,indicatetheexistenceofamaterialuncertaintywhichmaycastsignificantdoubtaboutthegroup’sandthe

company’sabilitytocontinueasagoingconcern.Thefinancialstatementsdonotincludetheadjustmentsthatwouldresultifthegroup

andthecompanywereunabletocontinueasagoingconcern.

Inauditingthefinancialstatements,wehaveconcludedthatthedirectors’useofthegoingconcernbasisofaccountinginthe

preparationofthefinancialstatementsisappropriate.

Ourevaluationofthedirectors’assessmentofthegroup’sandthecompany’sabilitytocontinuetoadoptthegoingconcernbasisof

accountingincluded:

• Weobtainedfrommanagementtheirlatestassessmentsthatsupporttheboard’sconclusionswithrespecttothegoingconcernbasis

ofpreparationforthefinancialstatements;

• Weevaluatedmanagement’sforecastandassesseddownsidescenariosandchallengedtheadequacyandappropriatenessofthe

underlyingassumptionstoensurethattheyareappropriatelyseverebutplausible;

• Wereviewedmanagementaccountsforthefinancialperiodtodateandcheckedthatthesewereconsistentwiththestartingpointof

management’sscenariosandsupportedthekeyassumptionsincludedintheassessments;

• Weevaluatedthehistoricalaccuracyofthebudgetingprocesstoassessthereliabilityofthedata;

• Wechallengedmanagementwithregardstotheimpactofclimatechangeandhowthishasbeentakenintoaccountintheforecasts;

• WereviewedthetermsandtheavailabilityoftheRevolvingCreditFacility(‘RCF’)andtheTermLoanandmanagement’sanalysisof

bothliquidityandcovenantcompliancetosatisfyourselvesthatnobreachesareanticipatedovertheperiodofassessment.

• Wetestedthemathematicalintegrityofmanagement’sgoingconcernforecastmodels;and.

• Wereviewedthedisclosuresmadeinrespectofgoingconcernincludedinthefinancialstatements.

Inrelationtothedirectors’reportingonhowtheyhaveappliedtheUKCorporateGovernanceCode,otherthanthematerialuncertainty

identifiedinnote1tothegroupfinancialstatementsandnote1tothecompanyfinancialstatements,wehavenothingmaterialtoaddor

drawattentiontoinrelationtothedirectors’statementinthefinancialstatementsaboutwhetherthedirectorsconsidereditappropriate

toadoptthegoingconcernbasisofaccounting,orinrespectofthedirectors’identificationinthefinancialstatementsofanyother

materialuncertaintiestothegroup’sandthecompany’sabilitytocontinuetodosooveraperiodofatleasttwelvemonthsfromthedate

ofapprovalofthefinancialstatements.

Ourresponsibilitiesandtheresponsibilitiesofthedirectorswithrespecttogoingconcernaredescribedintherelevantsectionsofthis

report.

Our audit approach

Context

PZCussonsplcisalistedmanufacturerofpersonalhealthcareproductsandconsumergoods.Ithasglobaloperations,headquartered

intheUK,preparingconsolidatedfinancialstatementswhichareprimarilyanaggregationoflegalentitiesfromcountriesaroundthe

world.Theyearended31May2024isourfirstyearasexternalauditorsoftheGroupandCompany.Aspartofouraudittransition,

weperformedspecificproceduresoveropeningbalancesbyreviewingthepredecessorauditors’workingpapersandriskassessment

andre-evaluatingthepredecessorauditors’conclusionsinrespectofkeysourcesofestimationuncertaintyandcriticaljudgements

intheopeningbalancesheetat1June2023.Wealsoperformedprocesswalkthroughstounderstandandevaluatethekeyfinancial

processesandcontrolsacrosstheGroup.Asweundertookeachphaseofthisfirst-yearaudit,weregularlyreconsideredourrisk

assessmenttoreflectauditfindings,includingourassessmentoftheGroup’scontrolenvironmentandtheimpactonourplanned

auditapproach.GiventhenatureoftheGroup’soperationsandrecentresults,weconsideredthevaluationofthegoodwilland

indefinite-livedintangibleassetsforspecificcashgeneratingunits(CGUs),impairmentofinvestmentsinsubsidiaries,tradepromotions

-rebatesanddesignationofloansaspermanentasequitytobetheareasofhigherriskandjudgementandthereforehaveincluded

themaskeyauditmatters.

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Overview

Audit scope

• Ourauditfocusedonthoseentitieswiththemostsignificantcontributiontothegroup’srevenue.Ourworkincorporatedfullscope

auditsofeightcomponents,theauditoftheCompany,auditproceduresonspecificbalancesforafurthercomponent,andon

consolidationentries.

• AllfourUKcomponentaudits,aswellastheauditoftheCompany,wereperformedbytheGroupengagementteam,withthe

remainingfourcomponentauditscompletedbyoverseasPricewaterhouseCoopersComponentauditteams.

• Theentitieswhereweconductedauditwork,togetherwithauditworkperformedattheconsolidatedlevel,accountedfor

approximately90%oftheGroup’srevenue.

Key audit matters

• Materialuncertaintyrelatedtogoingconcern

• Impairmentofgoodwillandotherindefinitelifeintangibleassets(group)

• Tradepromotions-rebates(group)

• Permanentasequitybalances(group)

• Impairmentofinvestmentinsubsidiaries(parent)

Materiality

• Overallgroupmateriality:£5.3millionbasedon1.0%ofrevenue.

• Overallcompanymateriality:£0.6millionbasedon1.0%oftotalassets.

• Performancemateriality:£2.6million(group)and£0.3million(company).

The scope of our audit

Aspartofdesigningouraudit,wedeterminedmaterialityandassessedtherisksofmaterialmisstatementinthefinancialstatements.

Key audit matters

Keyauditmattersarethosemattersthat,intheauditors’professionaljudgement,wereofmostsignificanceintheauditofthefinancial

statementsofthecurrentperiodandincludethemostsignificantassessedrisksofmaterialmisstatement(whetherornotduetofraud)

identifiedbytheauditors,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.Thesematters,andanycommentswemakeontheresultsofourprocedures

thereon,wereaddressedinthecontextofourauditofthefinancialstatementsasawhole,andinformingouropinionthereon,andwe

donotprovideaseparateopiniononthesematters.

Inadditiontogoingconcern,describedintheMaterialuncertaintyrelatedtogoingconcernsectionabove,wedeterminedthematters

describedbelowtobethekeyauditmatterstobecommunicatedinourreport.Thisisnotacompletelistofallrisksidentifiedbyour

audit.

Independent Auditor’s Report to the Members of PZ Cussons plc continued

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Key audit matter How our audit addressed the key audit matter

Impairment of goodwill and other indefinite life intangible assets (group)

Asat31May2024,thegrouprecognisedindefinite-livedbrandsof£206.3m

(2023:£230.8m)andgoodwillof£54.7m(2023:£56.4)aspernote10of

thefinancialstatements.Animpairmentchargeof£24.4minrelationtothe

SanctuarySpabrandwasrecognisedduringtheyear.

Duringtheyearended31May2024,thegroupperformeditsannual

impairmentassessmentforindefinitelivedbrandsandgoodwillasrequired

byIAS36.Thegroupundertakesatwostepapproachfirsttestingthe

brands;eachbrandisconsidereditsowncashgeneratingunit(‘CGU’),and

thengoodwillisallocatedtotheCGUorgroupsofCGUsasappropriateand

representingthelowestlevelwhichgoodwillismonitoredbymanagement.

Forstepone,theprocessinvolvesdeterminingthecarryingamountofeach

brandCGUbyattributingandallocatingassetsexcludinggoodwilltothe

CGUandpreparingdiscountedcashflowsanalysestodeterminetheCGUs’

recoverableamount.Basedonourreviewofthecashflowmodelsandthe

significantassumptions,weconsiderCharlesWorthington,Rafferty’sGarden,

SanctuarySpaandChildsFarmbrandstobethemostsensitivetothechanges

inassumptions.

Forsteptwo,goodwillisallocatedtoabrandCGUortoagroupofbrand

CGUs(wheremorethanonebrandbenefitsfromthegoodwillsynergies)

todeterminethesteptwoCGUcarryingamountsforgoodwillimpairment

testing.Thediscountedcashflowanalysesusedforthepurposesofstepone

arealsousedtodeterminetherecoverableamountoftheCGUsforgoodwill

impairmenttesting.

Refertopage87oftheAuditandRiskCommitteeReportandNote1and

Note10withintheNotestotheConsolidatedFinancialStatementsofthe

AnnualReport&Accounts2024.

Inassessingtheappropriatenessofvaluationofgoodwill

andindefinite-livedintangibleassetswehaveperformed

thefollowingprocedures:

• weevaluatedandassessedtheGroup’sfuturecashflow

forecasts,theprocessbywhichtheyweredrawnup

andtestedthemathematicalaccuracyoftheunderlying

valueinusecalculations;

• weevaluatedmanagement’srationalefordetermining

theCGUsandtheallocationofassetsincludinggoodwill

tothebrandorgroupofbrands;

• wecomparedkeyassumptionsaroundrevenuegrowth

ratestoexternalmarketresearchongrowthratesand

othersupportingevidencewheretheGroupexpectsto

growinexcessofthemarket;

• wecomparedactualresultswithpreviousforecaststo

assesshistoricalaccuracyofmanagementforecasts

anddiscussedanyvarianceswiththeDirectorsand

managementtounderstandreasonsforvariances;

• weagreedforecastsusedbacktotheboardapproved

budgetandafiveyearplan;

• weassessedmanagement’sassumptionsformarginsby

comparingtohistoricaldataandreviewedthecentral

costsallocation;

• wereconciledtheassetsusedinthemodelbacktothe

groupconsolidation;

• weconsideredmanagementbiasthroughoutthe

assumptionsusedandconsideredanycontradictory

evidence;

• weengagedourinternalvaluationsexpertstoreview

themodel,assessmanagement’skeyassumptionsfor

thediscountratesusedbyassessingthecostofcapi-

talcalculationsfortheGroupandcomparingagainst

comparableorganisationsandthelong-termgrowth

ratesbycomparingwithexternalforecasts;

• wecarriedoutsensitivityanalysistochecktheimpactof

changesinthekeyassumptionssuchasrevenuegrowth

rate,longtermgrowth,discountratesandthegross

marginrate,onthevalueinuse;and

• weassessedtheadequacyofthedisclosureprovided

innote10oftheGroupfinancialstatementsinrelation

totherelevantaccountingstandards.Weconsider

disclosurestobeadequateandinlinewiththe

requirementsoftherelevantstandards.

Basedontheaboveproceduresweconcludedthatno

additionalimpairmentsarerequired,andthedisclosures

madeareappropriate.

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Key audit matter How our audit addressed the key audit matter

Trade promotions - rebates (group)

DuetotheindustryinwhichPZCussonsoperates,beingconsumergoods,itis

customarythatthereisassociatedtradeandpromotionalspendincurred.

Tradepromotionscomprisefixedandvariableelementsandweconsider

thevariableelementtobeasignificantaccountingestimate.Anumberof

estimatesaremadeinarrivingatthetradepromotionsliabilitiesandrelated

adjustmentstorevenue,whichcouldbepronetomanagementbiasand

error.

Asat31May2024,thegrouprecognisedtradepromotionliabilitiesof

£25.8mandthetotaltradepromotions(adjustmentstorevenue)included

intheconsolidatedincomestatementamountedtoc.£120.3m.Thereisa

levelofestimationinvolvedinaccruingforsucharrangementsandapotential

formanagementtomanipulateprofitandwehaveconsideredittobea

significantriskinrelationtocompletenessandaccuracyofliabilitiesand

relatedadjustmentstorevenueduetofraudorerror.

Refertopage87oftheAuditandRiskCommitteeReportandNote1within

theNotestotheConsolidatedFinancialStatementsoftheAnnualReport&

Accounts 2024.

Inassessingthecompletenessandaccuracyoftrade

promotionliabilitiesandtherelatedadjustmentsto

revenue,wehaveperformedthefollowingprocedures:

• weobtainedtheyearendincentiveaccrualcalculation

andtheschedulethatreconcilestheopeningaccrualto

theclosingaccrual;

• wetestedtheinputsoftheaccrualcalculationbytracing

asampleofopenaccrualstosupportingevidence;

• wetestedasampleofincentivespaidinthecurrentyear

toensuretheaccrualwasmadebeforetheclaimwas

paidorsettled.Forthissamesample,werecalculated

thevalueoftheaccrual,andcorroboratedtothirdparty

evidence;

• weperformedalookbacktest,byselectingasample

ofaccrualsintheopeningbalance,andtestingthemto

subsequentclaimorsettlementdata;

• wetestedpost-yearendclaimsandsettlements,and

comparedthemtotheamountsaccruedfor;and

• wealsoobtaineddetailsof“live”offersinthelastfew

daysofthefinancialyearbyvisitingkeyretailers,online

andinperson.Wecomparedthesetoarrangements

accruedforatyearend.

Basedonourauditwork,wehavefoundtheestimates

madeinrelationtotradepromotionstobeacceptable.

Wealsoconsiderthedisclosuresmadeinthefinancial

statementstobeappropriate

Permanent as equity balances (group)

PZCussonsadoptsapermanentasequityapproach(i.e.theprovisionof

loansthatareintendedtobepermanentasequity,insteadofsubscribing

foradditionalequityshares)asamethodofinvestinginitssubsidiariesin

developingmarkets,specificallyinAfrica(NigeriaandGhana).

Duringtheyear,twosettlementsofthepermanentasequitybalances

relatingtoPZWilmarweremadeamountingtoUSD10m(2023:nil).In

addition,inApril2024thegroupalsoannouncedtheirintentiontoreview

strategicoptionsfortheAfricanoperations.Thisledtoareassessmentofthe

permanentasequitydesignationmadebymanagement.Thisresultedinall

balancespreviouslymeetingtherequirementsofIAS21tobedesignatedas

permanentasequity,tobede-designated.Asatyearend31May2024,the

grouphasnoloans(2023:£152.9m)designatedaspermanentasequity.

Weconsiderthedesignationofloans,andtherelevantdateofde-designation

tobeasignificantjudgement.Theforeignexchangemovementsonthese

loans are material.

Refertopage87oftheAuditandRiskCommitteeReportandNote1and

Note14withintheNotestotheConsolidatedFinancialStatementsofthe

AnnualReport&Accounts2024.

Inassessingtheclassificationofloansaspermanentas

equityandrelatedforeignexchangemovements,wehave

performedthefollowingprocedures:

• wereviewedthetermssurroundingloansandpayable

balancesdesignatedaspermanentasequity;

• wechallengedmanagementwithregardstotheir

intentionsfortheseloansgoingforward,toassess

whetherdesignationaspermanentasequitymetthe

requirementsofIAS21;

• wereviewedtheevidencethatsuggestedfurther

settlementoftheloansarelikely;

• wechallengedmanagementtoconsiderhowexcess

cashinNigeriawouldbeusedifitwasavailable;and

• wealsoreviewedthedisclosuresmadeinthefinancial

statementsinrelationtocurrencymatters.

Wearecomfortablethatthede-designationoftheloans

isappropriate.Wearecomfortablewiththedisclosures

madeinthefinancialstatements.

Independent Auditor’s Report to the Members of PZ Cussons plc continued

PZ Cussons plc / AnnualReportandAccounts2024 / Financial Statements

132

Key audit matter How our audit addressed the key audit matter

Impairment of investment in subsidiaries (parent)

TheCompanyhasinvestmentsinsubsidiariesof£36.8m(2023:£63.2m).

Giventhemagnitudeofthebalanceweconsideredtheretobeariskthatthe

performanceofthesubsidiaryundertakingsisnotsufficienttosupportthe

carryingvalueoftheinvestmentsandmaybeimpaired.

Managementhasconsideredtheinvestmentbalancesforimpairmentand

identifiedimpairmentindicatorsrelatingtotheinvestmentinPZCussons

(International)Limited.Thesubsidiaryisinanetliabilitypositionasat31May

2024andisloss-makingbecausesomeofthecostsitincursarenotableto

berecharged.Itwillnotbeprofit-makinginthefutureanditreliesonthe

Grouptoguaranteeitsliabilitiesandprovidethenecessarysupporttobeable

tocontinueasagoingconcern.Followinganassessmentofitsrecoverable

amount,managementhasrecordedanimpairmentchargeof£28.2millionto

reducetheinvestment’scarryingvalueto£nil.

RefertoNote4withintheNotestotheCompanyFinancialStatementsofthe

AnnualReport&Accounts2024.

Inassessingtheappropriatenessofvaluationof

investmentinsubsidiarieswehaveperformedthe

followingprocedures:

• weobtainedascheduleofinvestmentsin

subsidiariesandensuredthisisreconciledtothe

financialstatements;

• weperformedareviewoftheperformanceand

netassetsofeachmaterialsubsidiaryagainstthe

carryingvalueoftheinvestmentstoidentifytriggers

forimpairment;

• weobtainedmanagement’saccountingpaperdetailing

theimpairmentconsiderationsmadeinrelationtothe

investmentinPZCussons(International)Limited;

• wehaveconsideredmanagement’spositionthatthe

entityisinanetliabilityposition,hasconsistently

generatedlosses,andisnotexpectedtomakeaprofitin

theforeseeablefuturegiventheGroup’scostrecharge

arrangements;

• wehaveconsideredmanagement’sconsiderationsin

thecontextofauditworkperformedinotherareasand

concludedthatnocontradictoryevidencewasnoted;

• wechallengedmanagementtoconsiderwhetherthe

Companyneededtorecogniseafinancialguarantee

liabilitygiventhenetliabilitypositionandthe

expectationthatPZCussons(International)Limited

isnotexpectedtobeprofitmakinginthefuture.We

understandthatthefinancialguaranteeliabilityis

recognisedinanothersubsidiaryoftheCompany;

• weassessedtheadequacyofthedisclosureprovided

intheCompanyfinancialstatementsinrelationtothe

relevantrequirementsoftheaccountingstandards.

Basedontheaboveproceduresweconcludedthatthere

werenotriggersidentifiedinrelationtotheinvestmentin

PZCussonsHoldingsLimited.Wearecomfortablethatthe

investmentinrelationtoPZCussonsInternationalLimited

isfullyimpaired,andthedisclosuresmadeareappropriate.

STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION

133

Independent Auditor’s Report to the Members of PZ Cussons plc continued

How we tailored the audit scope

Wetailoredthescopeofouraudittoensurethatweperformedenoughworktobeabletogiveanopiniononthefinancialstatements

asawhole,takingintoaccountthestructureofthegroupandthecompany,theaccountingprocessesandcontrols,andtheindustryin

whichtheyoperate.

TheGroupisamanufacturerofpersonalhealthcareproductsandconsumergoods.TheGroupoperatesworldwideespeciallyinAfrica

andothercommonwealthnations,withNigeria,IndonesiaandAustraliabeingthemostsignificantterritories.

InestablishingtheoverallapproachtotheGroupaudit,wedeterminedthetypeofworkthatneededtobeperformedattheentitiesby

us,astheGroupengagementteam,orcomponentauditorsoperatingunderourinstructions.Whereworkwasperformedbycomponent

auditors,wedeterminedthelevelofinvolvementweneededtohaveinthisworktobeabletoconcludethatsufficientappropriateaudit

evidencehadbeenobtained.Ourworkincorporatedfullscopeauditsofeightcomponentsandauditproceduresonspecificbalancesfor

afurthercomponent.

The impact of climate risk on our audit

Wemadeenquiriesofmanagementtounderstandtheprocesstheyhaveadoptedtoassesstheextentofthepotentialimpactofclimaterisk

onthegroup’sfinancialstatements,includingtheircommitmentsmadetoachievingNetZerocarbonemissionsforScope1,2&3by2045.

Thekeyareasofthefinancialstatementswheremanagementevaluatedthatclimateriskhasapotentialimpactaresetoutinnote1,inthe

notestothefinancialstatements.Thedirectorshavereachedtheoverallconclusionthattherehasbeennomaterialimpactonthefinancial

statementsforthecurrentyearfromthepotentialimpactofclimatechange.

Weusedourknowledgeofthegrouptochallengemanagement’sassessment.Weparticularlyconsideredhowclimateriskwouldimpact

theassumptionsmadeintheforecastspreparedbymanagementusedintheirimpairmentanalyses,goingconcernandviability.Wealso

consideredtheconsistencyofthedisclosuresinrelationtoclimatechange(includingthedisclosuresintheTaskForceonClimate-related

FinancialDisclosures(TCFD)section)withintheAnnualReportwiththefinancialstatementsandourknowledgeobtainedfromouraudit.

Ourproceduresdidnotidentifyanymaterialimpactinthecontextofourauditofthefinancialstatementsasawhole,oronourkeyaudit

mattersfortheyearended31May2024.

Materiality

Thescopeofourauditwasinfluencedbyourapplicationofmateriality.Wesetcertainquantitativethresholdsformateriality.These,

togetherwithqualitativeconsiderations,helpedustodeterminethescopeofourauditandthenature,timingandextentofour

auditproceduresontheindividualfinancialstatementlineitemsanddisclosuresandinevaluatingtheeffectofmisstatements,both

individuallyandinaggregateonthefinancialstatementsasawhole.

Basedonourprofessionaljudgement,wedeterminedmaterialityforthefinancialstatementsasawholeasfollows:

Financial statements - group Financial statements - company

Overall

Materiality

£5.3 million. £0.6 million.

How we

determined it

1.0%ofrevenue 1.0%oftotalassets

Rationale for

benchmark

applied

Weconsideredmaterialityinanumberofdifferentways,

andusedourprofessionaljudgementhavingapplied

‘ruleofthumb’percentagestoanumberofpotential

benchmarks.Onthebasisofthis,weconcludedthat

1.0%ofrevenueisanappropriatelevelofmateriality

consideringtheoverallscaleofthebusinessandfocusof

usersofthefinancialstatements.

Webelievethattotalassetsistheprimarymeasureused

bytheshareholdersinassessingtheperformanceofthe

entity,andisagenerallyacceptedauditingbenchmark

fornon-tradingcompanies.

Foreachcomponentinthescopeofourgroupaudit,weallocatedamaterialitythatislessthanouroverallgroupmateriality.Therange

ofmaterialityallocatedacrosscomponentswasbetween£0.3millionand£3.5million.

Weuseperformancematerialitytoreducetoanappropriatelylowleveltheprobabilitythattheaggregateofuncorrectedand

undetectedmisstatementsexceedsoverallmateriality.Specifically,weuseperformancematerialityindeterminingthescopeofouraudit

andthenatureandextentofourtestingofaccountbalances,classesoftransactionsanddisclosures,forexampleindeterminingsample

sizes.Ourperformancematerialitywas50%ofoverallmateriality,amountingto£2.6millionforthegroupfinancialstatementsand£0.3

millionforthecompanyfinancialstatements.

Indeterminingtheperformancemateriality,weconsideredanumberoffactors-thehistoryofmisstatements,riskassessmentand

aggregationriskandtheeffectivenessofcontrols-andconcludedthatanamountatthelowerendofournormalrangewasappropriate.

WeagreedwiththeAuditandRiskCommitteethatwewouldreporttothemmisstatementsidentifiedduringourauditabove£0.3

million(groupaudit)and£0.03million(companyaudit)aswellasmisstatementsbelowthoseamountsthat,inourview,warranted

reportingforqualitativereasons.

PZ Cussons plc / AnnualReportandAccounts2024 / Financial Statements

134

Reporting on other information

TheotherinformationcomprisesalloftheinformationintheAnnualReportotherthanthefinancialstatementsandourauditors’report

thereon.Thedirectorsareresponsiblefortheotherinformation.Ouropiniononthefinancialstatementsdoesnotcovertheother

informationand,accordingly,wedonotexpressanauditopinionor,excepttotheextentotherwiseexplicitlystatedinthisreport,any

formofassurancethereon.

Inconnectionwithourauditofthefinancialstatements,ourresponsibilityistoreadtheotherinformationand,indoingso,consider

whethertheotherinformationismateriallyinconsistentwiththefinancialstatementsorourknowledgeobtainedintheaudit,or

otherwiseappearstobemateriallymisstated.Ifweidentifyanapparentmaterialinconsistencyormaterialmisstatement,weare

requiredtoperformprocedurestoconcludewhetherthereisamaterialmisstatementofthefinancialstatementsoramaterial

misstatementoftheotherinformation.If,basedontheworkwehaveperformed,weconcludethatthereisamaterialmisstatementof

thisotherinformation,wearerequiredtoreportthatfact.Wehavenothingtoreportbasedontheseresponsibilities.

WithrespecttotheStrategicreportandReportoftheDirectors,wealsoconsideredwhetherthedisclosuresrequiredbytheUK

CompaniesAct2006havebeenincluded.

Basedonourworkundertakeninthecourseoftheaudit,theCompaniesAct2006requiresusalsotoreportcertainopinionsandmatters

asdescribedbelow.

Strategic report and Report of the Directors

Inouropinion,basedontheworkundertakeninthecourseoftheaudit,theinformationgivenintheStrategicreportandReportof

theDirectorsfortheyearended31May2024isconsistentwiththefinancialstatementsandhasbeenpreparedinaccordancewith

applicablelegalrequirements.

Inlightoftheknowledgeandunderstandingofthegroupandcompanyandtheirenvironmentobtainedinthecourseoftheaudit,wedid

notidentifyanymaterialmisstatementsintheStrategicreportandReportoftheDirectors.

Report on the Directors’ Remuneration

Inouropinion,thepartoftheReportontheDirectors’Remunerationtobeauditedhasbeenproperlypreparedinaccordancewiththe

CompaniesAct2006.

Corporate governance statement

TheListingRulesrequireustoreviewthedirectors’statementsinrelationtogoingconcern,longer-termviabilityandthatpartofthe

corporategovernancestatementrelatingtothecompany’scompliancewiththeprovisionsoftheUKCorporateGovernanceCode

specifiedforourreview.Ouradditionalresponsibilitieswithrespecttothecorporategovernancestatementasotherinformationare

describedintheReportingonotherinformationsectionofthisreport.

Basedontheworkundertakenaspartofouraudit,wehaveconcludedthateachofthefollowingelementsofthecorporategovernance

statementismateriallyconsistentwiththefinancialstatementsandourknowledgeobtainedduringtheaudit,and,exceptforthematters

reportedinthesectionheaded‘Materialuncertaintyrelatedtogoingconcern’,wehavenothingmaterialtoaddordrawattentiontoin

relationto:

• Thedirectors’confirmationthattheyhavecarriedoutarobustassessmentoftheemergingandprincipalrisks;

• ThedisclosuresintheAnnualReportthatdescribethoseprincipalrisks,whatproceduresareinplacetoidentifyemergingrisksand

anexplanationofhowthesearebeingmanagedormitigated;

• Thedirectors’statementinthefinancialstatementsaboutwhethertheyconsidereditappropriatetoadoptthegoingconcernbasis

ofaccountinginpreparingthem,andtheiridentificationofanymaterialuncertaintiestothegroup’sandcompany’sabilitytocontinue

todosooveraperiodofatleasttwelvemonthsfromthedateofapprovalofthefinancialstatements;

• Thedirectors’explanationastotheirassessmentofthegroup’sandcompany’sprospects,theperiodthisassessmentcoversandwhy

theperiodisappropriate;and

• Thedirectors’statementastowhethertheyhaveareasonableexpectationthatthecompanywillbeabletocontinueinoperation

andmeetitsliabilitiesastheyfalldueovertheperiodofitsassessment,includinganyrelateddisclosuresdrawingattentiontoany

necessaryqualificationsorassumptions.

Ourreviewofthedirectors’statementregardingthelonger-termviabilityofthegroupandcompanywassubstantiallylessinscopethan

anauditandonlyconsistedofmakinginquiriesandconsideringthedirectors’processsupportingtheirstatement;checkingthatthe

statementisinalignmentwiththerelevantprovisionsoftheUKCorporateGovernanceCode;andconsideringwhetherthestatement

isconsistentwiththefinancialstatementsandourknowledgeandunderstandingofthegroupandcompanyandtheirenvironment

obtainedinthecourseoftheaudit.

STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION

135

Inaddition,basedontheworkundertakenaspartofouraudit,wehaveconcludedthateachofthefollowingelementsofthecorporate

governancestatementismateriallyconsistentwiththefinancialstatementsandourknowledgeobtainedduringtheaudit:

• Thedirectors’statementthattheyconsidertheAnnualReport,takenasawhole,isfair,balancedandunderstandable,andprovides

theinformationnecessaryforthememberstoassessthegroup’sandcompany’sposition,performance,businessmodelandstrategy;

• ThesectionoftheAnnualReportthatdescribesthereviewofeffectivenessofriskmanagementandinternalcontrolsystems;and

• ThesectionoftheAnnualReportdescribingtheworkoftheAuditandRiskCommittee.

Wehavenothingtoreportinrespectofourresponsibilitytoreportwhenthedirectors’statementrelatingtothecompany’scompliance

withtheCodedoesnotproperlydiscloseadeparturefromarelevantprovisionoftheCodespecifiedundertheListingRulesforreview

bytheauditors.

Responsibilities for the financial statements and the audit

Responsibilities of directors for financial statements

AsexplainedmorefullyintheStatementofdirectors’responsibilitiesinrespectofthefinancialstatements,thedirectorsareresponsible

forthepreparationofthefinancialstatementsinaccordancewiththeapplicableframeworkandforbeingsatisfiedthattheygiveatrue

andfairview.Thedirectorsarealsoresponsiblefor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.

Inpreparingthefinancialstatements,thedirectorsareresponsibleforassessingthegroup’sandthe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the

directorseitherintendtoliquidatethegrouporthecompanyortoceaseoperations,orhavenorealisticalternativebuttodoso.

Auditors’ responsibilities for the audit of the financial statements

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anauditors’reportthatincludesouropinion.Reasonableassuranceisahigh

levelofassurance,butisnota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theaggregate,theycould

reasonablybeexpectedtoinfluencetheeconomicdecisionsofuserstakenonthebasisofthesefinancialstatements.

Irregularities,includingfraud,areinstancesofnon-compliancewithlawsandregulations.Wedesignproceduresinlinewithour

responsibilities,outlinedabove,todetectmaterialmisstatementsinrespectofirregularities,includingfraud.Theextenttowhichour

proceduresarecapableofdetectingirregularities,includingfraud,isdetailedbelow.

Basedonourunderstandingofthegroupandindustry,weidentifiedthattheprincipalrisksofnon-compliancewithlawsandregulations

relatedtotheconsumerprotectionregulations,generalproductsafetyregulationsandbriberyacts,andweconsideredtheextentto

whichnon-compliancemighthaveamaterialeffectonthefinancialstatements.Wealsoconsideredthoselawsandregulationsthat

haveadirectimpactonthefinancialstatementssuchasCompaniesAct2006andtaxlegislation.Weevaluatedmanagement’sincentives

andopportunitiesforfraudulentmanipulationofthefinancialstatements(includingtheriskofoverrideofcontrols),anddetermined

thattheprincipalriskswererelatedtopostingjournalentriestomanipulaterevenueandfinancialperformance,andmanagementbias

withinaccountingestimatesandjudgements.Thegroupengagementteamsharedthisriskassessmentwiththecomponentauditorsso

thattheycouldincludeappropriateauditproceduresinresponsetosuchrisksintheirwork.Auditproceduresperformedbythegroup

engagementteamand/orcomponentauditorsincluded:

• challengingassumptionsandjudgementsmadebymanagementintheirsignificantaccountingestimates,inparticulararoundthe

tradepromotions,uncertaintaxpositions,designationofloansaspermanentasequity,valuationofpensionliabilitiesandvaluationof

brandsandgoodwill

• identifyingandtestingjournalentries,inparticularanyjournalentriespostedwithunusualaccountcombinations;

• discussionswiththeAuditandRiskCommittee,management,internalauditandthein-houselegalteamincludingconsiderationof

knownorsuspectedinstancesofnon-compliancewithlawsandregulationorfraud;

• reviewingminutesofmeetingsofthosechargedwithgovernancethroughouttheyearandpostyearendtoidentifyanyoneoffor

unusualtransactions;

• enquiringofmanagement,theAuditandRiskCommitteeandin-houselegalcounselconcerningactualandpotentiallitigationand

claims;and

• inaddressingtheriskoffraudwithinpromotionaltradespendaccruals,performingretrospectivereviewsofprioryearpositions;

performingsubstantivetestingovertheaccrualbalanceandagreeingtocontracts;andconsideringwhetherpostyearendsettlements

supportorcontradictthosejudgementsreached.

Thereareinherentlimitationsintheauditproceduresdescribedabove.Wearelesslikelytobecomeawareofinstancesofnon-

compliancewithlawsandregulationsthatarenotcloselyrelatedtoeventsandtransactionsreflectedinthefinancialstatements.Also,

theriskofnotdetectingamaterialmisstatementduetofraudishigherthantheriskofnotdetectingoneresultingfromerror,asfraud

mayinvolvedeliberateconcealmentby,forexample,forgeryorintentionalmisrepresentations,orthroughcollusion.

Independent Auditor’s Report to the Members of PZ Cussons plc continued

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136

Ouraudittestingmightincludetestingcompletepopulationsofcertaintransactionsandbalances,possiblyusingdataauditing

techniques.However,ittypicallyinvolvesselectingalimitednumberofitemsfortesting,ratherthantestingcompletepopulations.We

willoftenseektotargetparticularitemsfortestingbasedontheirsizeorriskcharacteristics.Inothercases,wewilluseauditsamplingto

enableustodrawaconclusionaboutthepopulationfromwhichthesampleisselected.

AfurtherdescriptionofourresponsibilitiesfortheauditofthefinancialstatementsislocatedontheFRC’swebsiteat:

www.frc.org.uk/auditorsresponsibilities.Thisdescriptionformspartofourauditors’report.

Use of this report

Thisreport,includingtheopinions,hasbeenpreparedforandonlyforthecompany’smembersasabodyinaccordancewithChapter3

ofPart16oftheCompaniesAct2006andfornootherpurpose.Wedonot,ingivingtheseopinions,acceptorassumeresponsibilityfor

anyotherpurposeortoanyotherpersontowhomthisreportisshownorintowhosehandsitmaycomesavewhereexpresslyagreedby

ourpriorconsentinwriting.

Other required reporting

Companies Act 2006 exception reporting

UndertheCompaniesAct2006wearerequiredtoreporttoyouif,inouropinion:

• wehavenotobtainedalltheinformationandexplanationswerequireforouraudit;or

• adequateaccountingrecordshavenotbeenkeptbythecompany,orreturnsadequateforouraudithavenotbeenreceivedfrom

branchesnotvisitedbyus;or

• certaindisclosuresofdirectors’remunerationspecifiedbylawarenotmade;or

• thecompanyfinancialstatementsandthepartoftheReportontheDirectors’Remunerationtobeauditedarenotinagreementwith

theaccountingrecordsandreturns.

Wehavenoexceptionstoreportarisingfromthisresponsibility.

Appointment

FollowingtherecommendationoftheAuditandRiskCommittee,wewereappointedbythememberson1November2023toauditthe

financialstatementsfortheyearended31May2024andsubsequentfinancialperiods.Thisisthereforeourfirstyearofuninterrupted

engagement.

Other matter

ThecompanyisrequiredbytheFinancialConductAuthorityDisclosureGuidanceandTransparencyRulestoincludethesefinancial

statementsinanannualfinancialreportpreparedunderthestructureddigitalformatrequiredbyDTR4.1.15R-4.1.18Randfiledonthe

NationalStorageMechanismoftheFinancialConductAuthority.Thisauditors’reportprovidesnoassuranceoverwhetherthestructured

digitalformatannualfinancialreporthasbeenpreparedinaccordancewiththoserequirements.

Jonathan Studholme (Senior Statutory Auditor)

for and on behalf of PricewaterhouseCoopers LLP

Chartered Accountants and Statutory Auditors

Manchester

18September2024

STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION

137

		2024	2023
	Notes	£m	£m
Revenue	2	527 .9	65 6.3
Costofsales		(39 6 . 8)	(3 9 9.0)
Gross profit		131 . 1	257 .3
Sellinganddistributionexpense		(82 . 8)	(1 0 5. 3)
Administrativeexpense		(1 3 9. 3)	(9 9.8)
Shareofresultsofjointventure	14	7. 3	7. 5
Operating (loss)/profit	2	(8 3.7)	59 .7
Financeincome		12 .2	1 5.4
Financeexpense		(24 . 2)	(1 3 . 3)
Net finance (expense)/income	6	(1 2 . 0)	2.1
Netmonetarylossarisingfromhyperinflationaryeconomies 3		(0 . 2)	—
(Loss)/profit before taxation		(95. 9)	61 . 8
Taxation	7	24.1	(1 5 . 4)
(Loss)/profit for the year¹	4	(71 . 8)	4 6.4
Attributable to:
OwnersoftheParent		(5 7. 0)	36.4
Non-controllinginterests		(14 . 8)	10.0
		(71. 8)	46.4
		pence	pence
(Loss)/earnings per share 1
Basic (p)	9	(13.60)	8 .7 0
Diluted(p) 2	9	(13.60)	8 .67

1 Whollyderivedfromcontinuingoperations.

2 In2024,thebasicanddilutedlosspershareareequalasaresultoftheGroupincurringalossfortheyear.

3 RepresentsthehyperinflationimpactinrelationtoGhana.

Consolidated Income Statement

For the year ended 31 May 2024

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138

2024 2023

		Notes £m	£m
(Loss)/profit for the year		(71. 8)	46.4
Other comprehensive (expense)/income
Items that will not be reclassified subsequently to income statement
Remeasurementlossonnetretirementbenefitsurplus	23	(6 . 8)	(32. 8)
Taxationonothercomprehensiveexpense	21	1.7	7. 4
Total items that will not be reclassified to income statement		(5.1)	(25 . 4)
Items that may be reclassified subsequently to income statement
Exchangedifferencesontranslationofforeignoperations¹		(69. 4)	(1 9. 6)
Shareofothercomprehensiveexpenseofjointventureaccountedforusingtheequitymethod	14	(20.0)	(2 .1)
Cashflowhedges-fairvaluemovementsnetofamountsreclassified	19	(0.6)	0.4
Total items that may be subsequently reclassified to income statement		(90 .0)	(21 . 3)
Other comprehensive expense for the year		(95.1)	(4 6 .7)
Total comprehensive expense for the year		(166.9)	(0 . 3)
Attributable to:
OwnersoftheParent		(133.3)	(6. 9)
Non-controllinginterests		(33 .6)	6.6
		(166.9)	(0 . 3)

Includesahyperinflationadjustmentof£4.3million(2023:£nil)inrelationtoGhana,netof£1.3milliondeferredtaxation.

Consolidated Statement of Comprehensive Income

For the year ended 31 May 2024

STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION

139

Notes

		2024	2023
		£m	£m
Assets
Non-current assets
Goodwillandotherintangibleassets	10	279.3	312.7
Property,plantandequipment	11	42 .8	6 7. 9
Investmentproperties	12	6.6	6.4
Right-of-useassets	13	10. 2	12.5
Netinvestmentinjointventure	14	—	52.0
Tradeandotherreceivables	17	32 .1	—
Deferredtaxassets	21	2 2 .2	7. 5
Currenttaxreceivable		0.6	—
Retirementbenefitsurplus	23	32 .1	38.5
		425.9	4 9 7. 5
Current assets
Inventories	16	6 8 .5	112.9
Tradeandotherreceivables	17	9 9.0	1 19.1
Derivativefinancialassets	19	—	1.0
Currenttaxationreceivable		0. 2	1.0
Currentassetinvestments	19	—	0.5
Cashandcashequivalents	18	51 . 3	25 6.4
		219. 0	49 0.9
Assetsheldforsale	15	4.7	—
		223.7	490.9
Total assets		6 49.6	98 8 .4
Equity
Sharecapital	24	4. 3	4.3
Treasury shares	24	(3 4 . 5)	(36. 9)
Capitalredemptionreserve		0 .7	0 .7
Hedgingreserve	19	(0.4)	0 .2
Currencytranslationreserve		(159.6)	(89.0)
Retainedearnings		425.3	51 1 .7
Otherreserves		6. 5	4.6
Attributable to owners of the Parent		242.3	395.6
Non-controllinginterests		(7. 1)	26.5
Total equity		235.2	422.1

Consolidated Balance Sheet

As at 31 May 2024

TocomplywiththerequirementsofIAS1Presentation of Financial Statements,thefullbalancesofinvestmentpropertieshavebeen

restatedtobepresentedseparatelyonthefaceoftheConsolidatedBalanceSheetandinnote12.Previously,thesewereincludedwithin

theproperty,plantandequipmentbalance.

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140

		2024	2023
	Notes	£m	£m
Liabilities
Non-current liabilities
Borrowings	18,19	160. 3	2 51 . 2
Tradeandotherpayables	20	2. 6	4.1
Leaseliabilities	19	9.7	11.3
Deferredtaxationliabilities	21	39. 8	76.9
Retirementandotherlong-termemployeebenefitobligations	23	12 . 2	12.4
		224.6	355.9
Current liabilities
Borrowings	18,19	6 . 3	—
Tradeandotherpayables	20	158 .7	1 82.2
Leaseliabilities	19	2 .4	1 .7
Derivativefinancialliabilities	19	0 .5	0.5
Currenttaxationpayable		21 .7	2 5.6
Provisions	22	0 .2	0.4
		18 9. 8	210.4
Total liabilities		414 . 4	5 66. 3
Total equity and liabilities		64 9.6	98 8.4

The Consolidated Financial Statements from pages 138 to 197 were approved by the Board of Directors and authorised for issue on

18 September 2024.

They were signed on its behalf by:

J Myers S Pollard

18 September 2024

PZ Cussons plc

Registered number 00019457

STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION

141

						Attributable to owners of the Parent
				Capital		Currency			Non-
		Share	Treasury	redemption	Hedging	translation	Retained	Other	controlling
		capital	shares	reserve	reserve 1	reserve 2	earnings	reserves 3	interests 4	Total
	Notes	£m	£m	£m	£m	£m	£m	£m	£m	£m
At 1 June 2022		4.3	(4 0 . 0)	0 .7	(0. 2)	(69. 2)	52 8 .5	2. 9	21.9	4 4 8.9
Profitfortheyear		—	—	—	—	—	3 6.4	—	10.0	4 6.4
Transferbetweenreserves		—	—	—	—	(1 . 5)	1.5	—	—	—
Othercomprehensiveincome/
(expense)		—	—	—	0.4	(1 8.3)	(2 5 .4)	—	(3. 4)	(4 6 .7)
Totalcomprehensiveincome/
(expense)fortheyear		—	—	—	0.4	(1 9. 8)	12.5	—	6. 6	(0 . 3)
Transactionswithowners:
Ordinarydividends	8	—	—	—	—	—	(26. 8)	—	—	(26 . 8)
Share-basedpayments		—	—	—	—	—	—	1 .7	—	1.7
SharesissuedfromESOT		—	3.1	—	—	—	(2 . 5)	—	—	0.6
Dividendsrelatingtonon- controllinginterests,netof
forfeitures		—	—	—	—	—	—	—	(2.0)	(2.0)
Totaltransactionswithowners
recogniseddirectlyinequity		—	3.1	—	—	—	(2 9. 3)	1.7	(2 .0)	(26 . 5)
At 31 May 2023		4.3	(36 . 9)	0 .7	0.2	(8 9.0)	51 1 .7	4.6	26 .5	4 22.1
At 1 June 2023		4. 3	(36 . 9)	0.7	0. 2	(89. 0)	51 1 .7	4. 6	26.5	4 22 .1
Lossfortheyear		—	—	—	—	—	(5 7. 0)	—	(1 4 . 8)	(71. 8)
Othercomprehensiveexpense		—	—	—	(0.6)	(70.6)	(5.1)	—	(1 8 . 8)	(95.1)
Totalcomprehensiveexpensefor
the year		—	—	—	(0.6)	(70.6)	(6 2 .1)	—	(3 3. 6)	(1 66.9)
Transactionswithowners:
Ordinarydividends	8	—	—	—	—	—	(21 . 9)	—	—	(21 . 9)
Share-basedpayments		—	—	—	—	—	—	1 .9	—	1 .9
SharesissuedfromESOT		—	2.4	—	—	—	(2. 4)	—	—	—
Totaltransactionswithowners
recogniseddirectlyinequity		—	2. 4	—	—	—	(2 4 . 3)	1 .9	—	(20.0)
At 31 May 2024		4. 3	(3 4 . 5)	0.7	(0. 4)	(159.6)	425.3	6.5	(7. 1)	2 35. 2

1 Reserverelatestocontinuinghedges.

2 Includesahyperinflationadjustmentin2024of£4.3millioninrelationtoGhana.

3 OtherreservesrelatetotheGroup’sshare-basedpaymentschemes.

4 Refertonote28formoredetails.

Consolidated Statement of Changes in Equity

For the year ended 31 May 2024

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142

		2024	2023
	Notes	£m	£m
Cash flows from operating activities
Cashgeneratedfromoperations	26	4 7. 7	76.6
Interestpaid		(2 1 . 5)	(11 . 8)
Taxationpaid		(13.3)	(1 5 . 6)
Net cash generated from operating activities		12 .9	49.2
Cash flows from investing activities
Interestreceived		9.0	11. 8
Purchaseofproperty,plantandequipmentandsoftware	10,11	(6 . 1)	(6 .7)
Proceedsfromdisposalofplant,propertyandequipment		0. 8	14.4
Loansadvancedtojointventure		(4.0)	(11 . 2)
Loanrepaymentsfromjointventure		12 .7	11. 2
Net cash generated from/(used in) investing activities		12.4	19.5
Cash flows from financing activities
DividendspaidtoCompanyshareholders	8	(21 . 9)	(26. 8)
Dividendspaidtonon-controllinginterests		—	(2 .6)
Repaymentofleaseliabilities		(2. 4)	(2. 5)
Repaymentofborrowings		(20 6.0)	(2 05 .0)
Proceedsfromborrowings		12 1.4	28 3.0
Financingfeespaidoncommittedcreditfacility		(0. 8)	(2 . 8)
Net cash (used in)/generated from financing activities		(109.7)	43.3
Net (decrease)/increase in cash and cash equivalents		(8 4. 4)	112.0
Effectofforeignexchangerates		(1 2 0 .7)	(1 9. 3)
Cashandcashequivalentsatthebeginningoftheyear		256.4	163.7
Cash and cash equivalents at the end of the year	18	51 . 3	25 6.4

Consolidated Cash Flow Statement

For the year ended 31 May 2024

STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION

143

Notes to the Consolidated Financial Statements continued

Year ended 31 May 2024

GENERAL INFORMATION

PZ Cussons plc is a public limited company registered in England and Wales which is listed on the London Stock Exchange and is domiciled

and incorporated in the UK under the Companies Act 2006. The address of the registered office is given on page 211. PZ Cussons plc is

the parent company and ultimate parent of the Group.

The principal activities of the Group are the manufacturing and distribution of hygiene, baby and beauty products.

These Consolidated Financial Statements are presented in Pounds Sterling (GBP) and, unless otherwise indicated, have been presented in

£ million to one decimal place.

1. ACCOUNTING POLICIES

The Consolidated Financial Statements are prepared in accordance with UK-adopted International Accounting Standards including

interpretations issued by the IFRS Interpretations Committee and with the requirements of the Companies Act 2006 as applicable to

companies reporting under those standards.

The financial statements have been prepared on a historical cost basis, except for the following:

• Certain financial assets and liabilities (including derivative instruments) – measured at fair value,

• Defined benefit pension plans – plan assets measured at fair value, and

• Hyperinflationary accounting in Ghana.

The preparation of financial statements, in conformity with IFRSs, requires management to make estimates and assumptions that affect

the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses

during the reporting year. Although these estimates are based on management’s best knowledge of the amounts, events or actions,

actual results may ultimately differ from those estimates. Key sources of estimation uncertainty are described on pages 157 to 158.

Going concern

The Group’s business activities, together with the factors likely to affect its future development, performance and position are set out

in the Strategic Report. The financial position of the Group, liquidity position and available borrowing facilities are described within

the Financial Review. In addition, note 19 of the Consolidated Financial Statements includes policies in relation to the Group’s financial

instruments and risk management and policies for managing credit risk, liquidity risk, market risk, foreign exchange risk, price risk, cash

flow and interest rate risk and capital risk.

The Group meets its funding requirements through internal cash generation and borrowings. Borrowings are amounts drawn under

both committed and uncommitted borrowing facilities. The Group has a £325.0 million committed credit facility which is available for

general corporate purposes. As at 31 May 2024, the Group had headroom on the committed facility of £164.0 million and net debt of

£115.3 million comprising cash of £51.3 million and borrowings of £166.6 million.

In assessing going concern, the Group has prepared both base case and severe but plausible cash flow forecasts for a period of 18

months until the end of November 2026 (the “going concern review period”), which is at least 12 months from the date of approval of

the financial statements. The Group’s base case forecasts are based on the Board-approved budget and the first year of the current five-

year plan, and indicate forecasted continued compliance with its banking covenants and sufficient liquidity throughout the going concern

review period.

The Directors have considered a severe but plausible downside scenario (excluding the uncertainty regarding the Nigerian Naira) which

models the following assumptions:

• 5% reduction in Group revenue; and

• Group gross margin decline of 200bps.

This downside scenario also shows both continued compliance with its banking covenants and sufficient liquidity throughout the going

concern review period.

However, over the past year there have been significant fluctuations in the Naira exchange rate which, due to the size of the Group’s

operations in Nigeria, needs to be considered as part of our going concern assessment. The Directors have therefore considered an

additional severe but plausible downside Naira exchange rate scenario to stress test the Group’s financial forecasts, using a Naira

exchange rate decline of greater than 10% from the rate as at the start of September 2024. This unmitigated downside scenario shows

a potential breach of the interest cover financial covenant as at 29 November 2024 which if management mitigation actions proved

insufficient, would result in the Group needing to negotiate a waiver of its interest cover covenant to ensure the business meets its

borrowing facility obligations over the going concern review period as the committed credit facility may become repayable on demand.

The Directors are satisfied that this unmitigated downside scenario does not potentially breach any of the Group’s other financial covenants.

PZ Cussons plc / AnnualReportandAccounts2024 / Financial Statements

144

Management consider there to be significant and feasible mitigations in place. These include both short-term and structural cost

reductions, as well as the potential disposal of non-core, non-operating assets. Although management acknowledges that certain of

these mitigations are outside their control in the very short term, a number of these mitigating actions are already underway.

The Group is currently engaged in a process to sell its St.Tropez brand and is exploring potential transactions that could lead to a partial

or full sale of its Africa business, having received a number of expressions of interest. A partial or full sale of the Group’s Africa business

could materially reduce the Group’s exposure to fluctuations in the Naira exchange rate. The Board has committed to using any proceeds

from these transactions to first reduce gross borrowings, and consequently the level of the Group’s net interest cost.

After reviewing the current liquidity position, financial forecasts, stress testing of potential risks and considering the uncertainties

described above, and based on the current funding facilities, the Directors expect the Group to have the financial resources to continue

to operate the business for the foreseeable future. For these reasons, the Directors continue to adopt the going concern basis of

accounting in preparing the Group financial statements. However, should management mitigations prove insufficient, the impact of Naira

exchange rate volatility on forecast interest cover covenant compliance represents a material uncertainty that may cast significant doubt

upon the Group’s ability to continue as a going concern. The financial statements do not include the adjustments that would result if the

Group were unable to continue as a going concern.

(a) New and amended accounting standards adopted by the Group

The following amended standards and interpretations were adopted by the Group during the year ending 31 May 2024:

• Deferred Tax related to Assets and Liabilities arising from a Single Transaction (Amendments to IAS 12 Income Taxes)

• Disclosure of Accounting Policies (Amendments to IAS 1 Presentation of Financial Statements and IFRS Practice Statement 2)

• Definition of Accounting Estimates (Amendments to IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors)

• IFRS 17 Insurance Contracts.

These amended standards and interpretations have not had a significant impact on the Consolidated Financial Statements.

Deferred Tax related to Assets and Liabilities arising from a Single Transaction – Amendment to IAS 12 narrows the scope of the initial

recognition exemption to exclude transactions that give rise to equal and offsetting temporary differences such as leases.

The Group previously accounted for deferred taxation on leases where the deferred taxation asset and liability was recognised on a net

basis. Following the amendments, the Group has recognised a separate deferred taxation asset in relation to its lease liabilities and a

deferred taxation liability in relation to its right-of-use assets. However, there is no impact on the Consolidated Balance Sheet because the

balances qualify for offset under paragraph 74 of IAS 12. There was no impact on the opening retained earnings as at 1 June 2023 as a

result of the change.

The policy for recognising and measuring income taxes is consistent with that applied in the comparative years except for the changes

outlined above as a result of the Group’s adoption of the amendments to IAS 12.

On 23 May 2023, the International Accounting Standards Board issued International Tax Reform Pillar Two Model Rules - Amendments to

IAS 12. The Group has applied the mandatory temporary exception to the accounting for deferred taxation arising from the jurisdictional

implementation of the Pillar Two rules set out therein

(b) New accounting standards and interpretations in issue but not yet effective

The following new and amended standards are effective for annual periods beginning on or after 1 January 2024. The Group has not early

adopted the new or amended standards, where applicable, in preparing these Consolidated Financial Statements.

• Classification of Liabilities as Current or Non-current (Amendments to IAS 1 Presentation of financial statements)

• Lease Liability in a Sale and Leaseback (Amendments to IFRS 16 Leases)

• Supplier financing arrangements (Amendments to IAS 7 Statement of cash flows and IFRS 7 Financial instruments)

• Lack of exchangeability (Amendments to IAS 21 The effects of changes in foreign exchange rates)

• IFRS 18 Presentation and Disclosure in Financial Statements

• Amendment to IFRS 9 and IFRS 7 (Classification and Measurement of Financial Instruments).

These amendments are not expected to have a material impact on the Group in the current or future reporting periods, except for the

amendments of IAS 21 which may have a material impact on the financial position or performance of the Group, but this impact cannot

currently be estimated reliably due to the uncertainty linked to the Nigerian Naira.

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Notes to the Consolidated Financial Statements continued

Year ended 31 May 2024

1. ACCOUNTING POLICIES CONTINUED

The following changes have been made to the presentation of the Group’s Consolidated Financial Statements:

• In accordance with IAS 1 Presentation of Financial Statements, investment properties are presented separately on the face of the

Consolidated Balance Sheet and in note 12, rather than being presented within property, plant and equipment. The impact on the

opening balances of the 2023 comparatives is a reduction of £7.2 million from the cost of property, plant and equipment, representing

the investment property balances previously included in property, plant and equipment.

• Share of other comprehensive income of joint venture is presented separately on the face of the Statement of Other

Comprehensive Income.

• Non-mandatory disclosures or disclosures of immaterial balances have been removed (note 4).

These presentation changes have no impact on the accounting policies adopted by the Group.

(d) Accounting policies

Basis of consolidation

The Consolidated Financial Statements incorporate the financial statements of PZ Cussons plc and entities controlled by PZ Cussons

plc (its subsidiaries) made up to 31 May each year. The Group controls an entity when the Group is exposed to, or has rights to,

variable returns from its involvement with the entity and has the ability to affect those returns through its power over the financial and

operational policies of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They

are deconsolidated from the date that control ceases. Any resulting gain or loss is recognised in profit or loss. Any investment retained is

recognised at fair value.

The total profits or losses of subsidiaries are included in the Consolidated Income Statement and the interest of non-controlling interests

is stated as the non-controlling interest’s proportion of the fair values of the assets and liabilities recognised. Comprehensive income

attributable to the non-controlling interests is attributed to the non-controlling interests even if this results in the non-controlling

interests recognising a deficit balance.

The interest of non-controlling interests in the acquiree is initially measured at the non-controlling interest’s proportion of the net fair

value of the assets, liabilities and contingent liabilities recognised. Where non-controlling interests are acquired, the excess of cost over

the value of the non-controlling interest acquired is recorded in equity.

Where necessary, the financial statements of subsidiaries are adjusted to conform to the Group’s accounting policies. Intra-group

transactions and balances, and any unrealised gains or losses on transactions between Group companies are eliminated on consolidation.

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Business combinations and goodwill

Business combinations are accounted for using the acquisition method. The cost of an acquisition is measured as the aggregate of

the consideration transferred, which is measured at acquisition date fair value, and the amount of any non-controlling interests in the

acquiree. For each business combination, the Group elects whether to measure the non-controlling interests in the acquiree at fair value

or at the proportionate share of the acquiree’s identifiable net assets. Acquisition-related costs are expensed as incurred and included in

administrative expenses.

The acquiree’s identifiable assets, liabilities and contingent liabilities that meet the conditions for recognition under IFRS 3 Business

Combinations are, with limited exceptions, recognised at their fair values at the acquisition date.

Where acquisitions are achieved in stages, commonly referred to as ‘stepped acquisitions’, and result in control being obtained by the

Group as part of a transaction, the Group re-assesses the fair value of any existing investment as part of determining the fair value of

consideration. In determining the fair value of the Group’s existing interest, reference is given to the fair value of consideration paid to

increase the Group’s interest in the existing investment as well as considering the specific fair values of assets and liabilities transferred to

gain control. Any increase or impairment of the Group’s existing investment is credited/charged to the Consolidated Income Statement.

Goodwill arising on a business combination represents the excess of the cost of acquisition over the Group’s interest in the net fair value

of the identifiable assets, liabilities and contingent liabilities of the subsidiary recognised at the date of acquisition. Goodwill arising on

the acquisition of a subsidiary is separately presented on the Group’s balance sheet.

If the fair value of the net assets acquired is in excess of the aggregate consideration transferred, the Group re-assesses whether it has

correctly identified all of the assets acquired and all of the liabilities assumed and reviews the procedures used to measure the amounts

to be recognised at the acquisition date. If the reassessment still results in an excess of the fair value of net assets acquired over the

aggregate consideration transferred, then the gain is recognised in the Consolidated Income Statement.

Goodwill is subsequently measured at cost less any accumulated impairment losses. Goodwill is tested for impairment annually, or more

frequently if there are indicators of impairment. The method used for impairment testing is to allocate goodwill to appropriate cash-

generating units (CGUs) based on the smallest identifiable group of assets that generate independent cash inflows, and to estimate the

recoverable amounts of the CGUs as the higher of the asset’s fair values less costs of disposal and the value-in-use. For the purposes of

goodwill impairment testing, goodwill related to each of the Beauty brands is aggregated together into the Beauty CGU as this is manner

in which the core assets are used to generate cash flows and is the lowest level at whch goodwill is monitored by management. An

impairment arises if the recoverable amount of the CGU is less than the carrying amount, in which case the impairment loss is allocated

first to reduce the carrying amount of any goodwill allocated to the CGU and then to the other assets of the CGU pro-rata on the basis

of the carrying amount of each asset in the CGU. Impairment losses recognised for goodwill cannot be reversed in a subsequent period.

On disposal of a subsidiary or an equity method investment, the attributable amount of goodwill is included in the determination of the

profit or loss on disposal.

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147

1. ACCOUNTING POLICIES CONTINUED

Investments in joint ventures

Under IFRS 11 Joint Arrangements, investments in joint arrangements are classified as either joint operations or joint ventures depending

on the contractual rights and obligations of each investor, rather than the legal structure of the joint arrangement. The Group has

assessed the nature of its joint arrangements and determined them to be joint ventures. Interests in joint ventures are accounted for

using the equity method.

Under the equity method of accounting, interests in joint ventures are initially recognised at cost and adjusted thereafter to recognise

the Group’s share of the post-acquisition profits or losses and movements in other comprehensive income.

When the Group’s share of losses in a joint venture equals or exceeds its interests in the joint ventures (which includes any long-term

interests that, in substance, form part of the Group’s net investment in the joint ventures), the Group does not recognise further losses,

unless it has incurred obligations or made payments on behalf of the joint ventures.

After application of the equity method, the Group determines whether it is necessary to recognise an impairment loss on its investment

in its joint ventures. At each reporting date, the Group determines whether there is objective evidence that the investment in

joint ventures is impaired. If there is such evidence, the Group calculates the amount of impairment as the difference between the

recoverable amount of the joint venture and its carrying value, and then recognises the loss within ‘Share of results of joint venture’ in

the Consolidated Income Statement.

Revenue

Revenue comprises sales of goods after the deduction of discounts, trade spend, rebates and sales-related taxes. It does not include

intra-group sales. Trade promotions, which consist primarily of customer pricing allowances, placement/listing fees and promotional

allowances, are governed by agreements with our trade customers (retailers and distributors).

Discounts can either be immediately deducted from the sales value on the invoice or settled later through credit notes. Rebates are

generally in the form of credit notes. Amounts provided for discounts payable at the end of a period require estimation; historical data

and accumulated experience is used to estimate the provision using the most likely amount method and in most cases the discount can

be estimated with a high level of accuracy using known facts. These amounts are reported within Trade and other payables. Any differences

between actual amounts settled and the amounts provided are not material and recognised in the subsequent reporting period.

Customer contracts generally contain a single performance obligation and revenue is recognised when control of the products has

transferred to our customer as there are no longer any unfulfilled obligations to the customer. This is generally on delivery to the

customer but depending on specific customer terms, this can be at the time of dispatch, delivery or upon formal customer acceptance.

This is considered the appropriate point where the performance obligations in our contracts are satisfied as the Group no longer has

control over the inventory. Estimating the amount of variable consideration associated with discounts and assessing whether other

consideration payable to customers (e.g. marketing investment payments) represents payment for a distinct good or service require a

degree of estimation and judgement applied by management.

Trade promotions

The Group provides for amounts payable to trade customers for promotional activity. Where a promotional activity spans across the year-

end, an accrual is reflected in the Consolidated Financial Statements based on our expectation of customer and consumer uptake during

the promotional period and the extent to which temporary promotional activity has occurred.

Where promotions, rebates or discounts give rise to variable consideration, the Group accounts for this by using the 'most likely amount'

method and this is generally estimated using known facts with a high degree of accuracy. Revenue is constrained to the extent that

variable consideration has been taken into account for the period and that no reversal in consideration is expected.

Foreign currencies

The financial statements of each Group entity are prepared in the currency of the primary economic environment in which the entity

operates (its functional currency). For the purpose of the Consolidated Financial Statements, the results and financial position of each

entity are presented in Pounds Sterling, which is the functional currency of the Company, and the presentational currency for the

Consolidated Financial Statements.

Notes to the Consolidated Financial Statements continued

Year ended 31 May 2024

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In preparing the financial statements of the individual entities, transactions in currencies other than the entity’s functional currency are

recorded at the actual rate of exchange prevailing on the dates of the transactions, or at average rates of exchange if they represent a

suitable approximation to the actual rate. At each balance sheet date, monetary assets and liabilities denominated in currencies other

than the functional currency of the local entity are translated at the appropriate rates prevailing on the balance sheet date. Foreign

exchange gains and losses arising from the settlement of these transactions and from the translation of monetary assets and liabilities

denominated in foreign currencies are recognised in the Consolidated Income Statement except when deferred in equity as qualifying

hedges or permanent as equity balances.

In preparing the Consolidated Financial Statements, the balances in individual Group companies are translated from their

functional currency into the Group reporting currency (Pounds Sterling). Apart from the financial statements of Group companies

in hyperinflationary economies (see below), the income statement, the cash flow statement and all other movements in assets and

liabilities are translated at average exchange rates for the year as a proxy for the transaction rate, or at the transaction rate itself if more

appropriate. Assets and liabilities are translated at year-end exchange rates. Cumulative foreign currency translation differences arising

on the translation and consolidation of foreign operations’ income statements and balance sheets denominated in foreign currencies are

recorded as a separate component of equity.

To determine the existence of hyperinflation, the Group assesses the qualitative and quantitative characteristics of the economic

environment of the country, such as the cumulative inflation rate over the previous three years. The financial statements of a Group

company whose functional currency is that of a hyperinflationary economy are adjusted for inflation and then translated into Pounds

Sterling using the balance sheet exchange rate. See further details below.

On disposal of a foreign operation the cumulative translation differences will be transferred to the income statement in the period of the

disposal as part of the gain or loss on disposal. Repayments of permanent as equity balances are not considered full or partial disposals,

since the parent company continues to own the same percentage of the subsidiary and as a result there is no recycling of exchange

differences from other comprehensive income to the Consolidated Income Statement.

Hyperinflationary economies

Ghana was designated as a hyperinflationary economy from 1 December 2023. As a result, IAS 29 Financial Reporting in Hyperinflationary

Economies has been applied from 1 June 2023 to the Group’s Ghanaian subsidiary undertaking. The application of IAS 29 includes:

• adjustment to historical cost non-monetary assets and liabilities for the change in purchasing power caused by inflation from the date

of initial recognition to the current balance sheet date;

• adjustment to the income statement for inflation during the current reporting period;

• translation of income statement at the period-end foreign exchange rate instead of an average rate; and

• adjustment to the income statement to reflect the impact of inflation and exchange rate movement on holding monetary assets and

liabilities in local currency.

The Ghanaian Combined Consumer Price Index (CPI) was 220.0% at 31 May 2024 (31 May 2023: 178.7%). The cumulative effect arising

from the restatement of the opening non-monetary items is recognised in other comprehensive income. This impact for the year ended

31 May 2024 was £4.3 million (2023: £nil). The application of IAS 29 has resulted in a £3.7 million increase of total assets, a £0.6 million

increase in the operating loss and the recognition of a £0.2 million monetary loss for the year ended 31 May 2024. The comparative

information in the Consolidated Financial Statements is not restated as it is presented in a stable currency (Pounds Sterling).

Finance income

Finance income includes interest receivable on cash and cash equivalents, interest receivable on loans to joint venture, net finance

income in relation to defined benefit pension schemes, finance income in relation to leases and the change in the fair value of deferred

consideration on business combinations.

Finance expense

Finance expense includes interest expense in relation to financial liabilities (which includes the unwind of the discount rate applied

to lease liabilities), finance expense on defined benefit pension schemes, amortisation of fees incurred in arranging financing and the

change in the fair value of deferred purchase consideration on business combinations.

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149

1. ACCOUNTING POLICIES CONTINUED

Adjusting items

Adjusting items are material in value or related to significant one-off changes in the structure or value of the business. Certain adjusting

items may be recognised across multiple years if, for example, they are deemed to be part of a significant transformation project which

would not be expected to recur. Such projects are required to be agreed upfront with a clear scope, timeline and budget. The Directors

apply judgement in assessing the presentation of such items as adjusting items.

The Directors believe that the separate disclosure of these items is relevant to an understanding of the Group’s financial performance

by providing an alternative and meaningful basis upon which to analyse underlying business performance and make year-on-year

comparisons. The same measures are used by management for planning, budgeting and reporting purposes and for the internal

assessment of operating performance across the Group.

These alternative performance measures should be viewed as supplemental to, but not as a substitute for, measures presented in

the consolidated financial information relating to the Group, which are prepared in accordance with IFRS. Further, they may not be

comparable with similarly titled measures reported by other companies due to differences in the way they are calculated.

Taxation

Taxation on the profit or loss for the year comprises current and deferred taxation. Taxation is recognised in the Consolidated Income

Statement except to the extent that it relates to items recognised in other comprehensive income, in which case it is recognised within

that statement.

Current taxation is the expected taxation payable on the taxable income for the year, using taxation rates enacted or substantively

enacted at the financial year-end date, and any adjustment to taxation payable in respect of previous years.

Deferred taxation is provided on temporary differences between the carrying amounts of assets and liabilities recognised for financial

reporting purposes and the amounts used for taxation purposes, on an undiscounted basis. The amount of deferred taxation provided is

based on the expected manner of realisation or settlement of the carrying amounts of assets and liabilities, using taxation rates enacted

or substantively enacted at the financial year-end date.

Deferred taxation liabilities are recognised for taxable temporary differences arising on investments in subsidiaries and interests in

joint ventures, except where the Group is able to control the reversal of the temporary difference and it is probable that the temporary

difference will not reverse in the foreseeable future.

In the year ending 31 May 2024, the Group has adopted the amendment to IAS 12 - Deferred Tax related to Assets and Liabilities arising

from a Single Transaction amendments, which narrows the scope of the initial recognition exemption to exclude transactions that give

rise to equal and offsetting temporary differences such as leases. The Group previously accounted for deferred taxation on leases where

the deferred taxation asset or liability was recognised on a net basis. Following the amendments, the Group has recognised a separate

deferred taxation asset in relation to its lease liabilities and a deferred taxation liability in relation to its right-of-use assets. However, there

is no impact on the balance sheet because the balances qualify for offset under paragraph 74 of IAS 12. There was no impact on the

opening retained earnings as at 1 June 2023 as a result of the change.

On 23 May 2023, the International Accounting Standards Board issued International Tax Reform Pillar Two Model Rules - Amendments to

IAS 12. The Group has applied the mandatory temporary exception to the accounting for deferred taxation arising from the jurisdictional

implementation of the Pillar Two rules set out therein.

Deferred taxation assets and liabilities are offset when there is a legally enforceable right to offset current taxation assets against current

taxation liabilities and when they relate to income taxes levied by the same taxation authority and the Group intends to settle its current

taxation liabilities on a net basis.

A deferred taxation asset is recognised only to the extent that it is probable that future taxable profits will be available against which

the asset can be utilised. The Group maintains adequate provisions for potential liabilities that may arise from periods that remain open

and not yet agreed by tax authorities. The ultimate liability for such matters may vary from the amounts provided and is dependent

upon the outcome of agreements with relevant tax authorities. In assessing uncertain tax treatments, management is required to make

judgements in determination of the facts and circumstances in respect of the tax position taken, together with estimates of amounts that

may be required to be paid in ultimate settlement with the tax authorities. As the Group operates in a multinational tax environment,

the nature of the uncertain tax positions is often complex and subject to change. Original estimates are refined as and when additional

information becomes known.

Notes to the Consolidated Financial Statements continued

Year ended 31 May 2024

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Property, plant and equipment

Property, plant and equipment is stated at historical cost less accumulated depreciation and impairment with the exception of freehold

land which is shown at cost less accumulated impairment. Except for freehold land and assets in the course of 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 at rates not less than 2% per annum

Plant and machinery not less than 8% per annum

Fixtures, fittings and vehicles not less than 20% per annum

In the case of major projects, depreciation is provided from the date the project is brought into use.

An asset is derecognised from the Consolidated Balance Sheet when it is sold or retired and no future economic benefits are expected

from that asset. The gain or loss arising on the disposal or retirement of an asset is determined as the difference between the sales

proceeds and the carrying amount of the asset and is recognised in the Consolidated Income Statement when the asset is derecognised.

Residual values and useful lives are reviewed and adjusted, if appropriate, at each balance sheet date.

Property, plant and equipment is reviewed for impairment whenever events or changes in circumstances indicate that the carrying

amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its

recoverable amount. Property, plant and equipment that has been impaired is reviewed for possible reversal of the impairment at each

subsequent balance sheet date.

Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable

amount, to the extent that the increased carrying amount does not exceed the value that would have been determined had an

impairment loss not been recognised in prior years. Impairment loss or reversal of impairment is recognised in the Consolidated Income

Statement as part of administrative expense.

Investment properties

On acquisition, an investment property is initially recognised at cost. Investment property is subsequently recognised at cost less

accumulated impairment and is presented as a separate line on the Consolidated Balance Sheet. Gains or losses on disposal are

recognised within administrative expenses in the Consolidated Income Statement.

Other intangible assets

Other intangible assets comprise brands and software.

Brands

An acquired brand is only recognised on the Consolidated Balance Sheet where it is supported by a registered trademark, where brand

earnings are separately identifiable or the brand could be sold separately from the rest of the business. Brands acquired as part of a

business combination are recorded in the Consolidated Balance Sheet at fair value at the date of acquisition. Trademarks, patents and

purchased brands are recorded at cost less accumulated impairment.

The Directors believe that acquired brands have indefinite lives because, having considered all relevant factors, there is no foreseeable

limit to the period over which the brands are expected to generate net cash inflows for the Group. Further, the Directors have the

intention and the ability to maintain the brands. In forming this conclusion the Directors have not taken into consideration planned future

expenditure in excess of that required to maintain the asset at that standard of performance.

In accordance with IAS 36 Impairment of Assets, as the brands have indefinite lives they are tested for impairment annually, and more

frequently where there is an indication that the asset may be impaired. The method used for impairment testing is similar to that used

for goodwill whereby the brand is allocated to a CGU based on the smallest identifiable group of assets that generate independent cash

inflows. The recoverable amount of the CGU is determined as the higher of the asset’s fair value less costs of disposal and the value-

in-use. An impairment arises if the recoverable amount of the CGU is less than the carrying amount. Any impairment is recognised

immediately in the Consolidated Income Statement.

Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable

amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had

no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately in the

Consolidated Income Statement.

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151

1. ACCOUNTING POLICIES CONTINUED

Software

Expenditure on research activities is recognised in the Consolidated Income Statement as an expense as incurred. Expenditure on

development activities directly attributable to the design and testing of identifiable software products and systems are capitalised if the

product or systems meet the following criteria:

• The completion of the development is technically and commercially feasible to complete,

• Adequate technical resources are sufficiently available to complete development,

• It can be demonstrated that future economic benefits are probable, and

• The expenditure attributable to the development can be measured reliably.

Development activities involve a plan or design for the production of new or substantially improved products or systems. Directly

attributable costs that are capitalised as part of the software product or system include employee costs. Other development expenditures

that do not meet these criteria as well as ongoing maintenance costs are recognised as an expense as incurred. Development costs for

software are carried at cost less accumulated amortisation and are amortised on a straight-line basis over their useful lives (not exceeding

ten years) at the point at which they come into use.

Leases

Lessee accounting

The Group assesses whether a contract is or contains a lease at inception of the contract. 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 and leases of

low-value assets where the Group recognises the lease payments as an operating expense on a straight-line basis over the term of the

lease. The use of these exemptions does not have a material impact.

Right-of-use assets

At commencement date, right-of-use assets are measured at cost, which comprises the initial measurement of the corresponding lease

liability, lease payments made at or before the commencement day and any initial direct costs.

After initial recognition right-of-use assets are depreciated on a straight-line basis over the shorter period of lease term and useful life of

the underlying asset. They are also assessed for impairment where indicators of impairment exist.

Lease liabilities

Lease liabilities are initially measured at the present value of the lease payments, excluding those paid at the commencement date,

discounted at the rate implicit in the lease, or if that cannot be readily determined, at the Group’s incremental borrowing rate specific to

the term, country, currency and start date of the lease. Lease payments included in the measurement of the lease liability comprise:

• Fixed lease payments (including in substance fixed payments), less any lease incentives receivable,

• Variable lease payments that depend on an index or rate, initially measured using the index or rate at the commencement date,

• The exercise price of a purchase option if the Group is reasonably certain to exercise that option, and

• Payments of penalties for terminating the lease, if the lease term reflects the exercise of an option to terminate the lease.

Lease payments to be made under reasonably certain extension options are also included in the measurement of the liability. Variable

lease payments that do not depend on an index or rate are recognised as an expense in the period in which the event or condition that

triggers those payments occurs.

The carrying value of the lease liability is subsequently increased to reflect interest on the lease liability and reduced by the lease

payment made. The carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change

in the lease payments (e.g., changes to future payments resulting from a change in an index or rate used to determine such lease

payments) or a change in the assessment of an option to purchase the underlying asset. Lease liabilities are presented as a separate line

in the Consolidated Balance Sheet, within current and non-current liabilities.

As a practical expedient, IFRS 16 Leases permits a lessee not to separate non-lease components, and instead account for any lease and

associated non-lease components as a single arrangement. The Group has not used this practical expedient.

Notes to the Consolidated Financial Statements continued

Year ended 31 May 2024

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Lessor accounting

When the Group acts as a lessor, it determines at lease inception whether each lease is a finance lease or an operating lease.

To classify each lease, the Group makes an overall assessment of whether the lease transfers substantially all the risks and rewards

incidental to ownership of the underlying asset. If this is the case the lease is a classified as a finance lease, otherwise as an operating lease.

Operating leases

If a lease is classified as an operating lease, the Group does not derecognise the underlying asset from its balance sheet and continues to

recognise depreciation and impairment losses on the asset.

Rental income arising from operating leases is accounted for on a straight-line basis over the lease term and is included in administrative

expense in the Consolidated Income Statement.

Finance Leases

If a lease is classified as a finance lease, the Group derecognises the underlying asset from its balance sheet and recognises a lease

receivable at an amount equal to the net investment in the lease. The net investment in the lease is the present value of the lease

payments and any unguaranteed residual value of the underlying asset, discounted at the interest rate implicit in the lease. The Group

recognises finance income over the lease term, based on a pattern reflecting a constant periodic rate of return on the net investment in

the lease. The Group presents the lease receivable in Trade and other receivables on the Consolidated Balance Sheet.

Inventories

Inventories are stated at the lower of cost and estimated net realisable value. Cost comprises direct materials and, where applicable,

direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition.

Cost is calculated based on standard costs based on normal operating conditions with price and usage variances apportioned using the

periodic unit pricing method. Net realisable value represents the estimated selling price less all estimated costs of completion and costs

to be incurred in marketing, selling and distribution. Where net realisable value is lower than cost, provision for impairment is made

which is charged to cost of sales in the Consolidated Income Statement.

Assets held for sale

Non-current assets and groups of assets and liabilities which comprise disposal groups are classified as ‘held for sale’ when their carrying

amount will be recoverable principally through a sale transaction rather than through continuing use. To be classified as a ‘held for sale’

asset or disposal group, the sale must be highly probable and the assets must be available for sale immediately in their present condition.

In addition, all of the following criteria must also be met:

• Management is committed to the plan to sell;

• The assets are being actively marketed;

• Actions required to complete the plan should indicate that it is unlikely that significant changes to the plan will be made or that the

plan will be withdrawn; and

• A sale has been agreed or is expected to be concluded within 12 months of the balance sheet date.

Immediately prior to classification as held for sale, the value of the assets or groups of assets is remeasured in accordance with the

requirements of IFRS 5 Non-current Assets Held for Sale and Discontinued Items. Subsequently, assets and disposal groups classified

as held for sale are measured at the lower of book value or fair value less disposal costs. Assets held for sale are neither depreciated

nor amortised.

Cash, cash equivalents and bank overdrafts

Cash and cash equivalents include cash at bank and in hand, call and short-term deposits and other highly liquid investments with original

maturities of three months or less which are readily convertible into known amounts of cash and insignificant risk of changes in value.

Bank overdrafts are repayable on demand and form part of the Group’s cash management arrangements.

STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION

153

1. ACCOUNTING POLICIES CONTINUED

Financial instruments

Financial assets and financial liabilities are recognised on the Consolidated Balance Sheet when the Group becomes a party to the

contractual provisions of the instrument.

Derivative financial instruments

The Group uses derivative financial instruments such as forward foreign exchange contracts and interest rate caps to manage its

exposures to risks associated with foreign currency and interest rate fluctuations. These instruments are measured at fair value. Changes

in the fair value of any derivative instruments that do not qualify for hedge accounting are recognised immediately in the Consolidated

Income Statement.

Derivatives designated as cash flow hedges

Derivatives designated as the hedging instruments are classified at inception of hedge relationship as cash flow hedges. There are no fair

value hedges or net investment hedges in the Group.

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. Ineffective portions are recognised in profit or loss immediately.

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 Consolidated Income

Statement in the period (or periods) when the hedged item affects the Consolidated Income Statement.

Financial assets

At initial recognition, the Group measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through

profit or loss (FVPL), transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial

assets carried at FVPL are expensed in profit or loss.

The Group classifies its financial assets in the following measurement categories:

• those to be measured subsequently at fair value (either through other comprehensive income or profit or loss); and

• those to be measured at amortised cost.

The classification depends on the entity’s business model for managing the financial assets and the contractual terms of the cash

flows. The Group’s financial assets subsequently measured at either amortised cost or fair value through profit or loss, depending on

their classification.

Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantiall y

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 .

(a) Trade receivables

Trade and other receivables are initially measured at transaction price, and subsequently at amortised cost. The amortised cost for trade

and other receivables is generally equivalent to the invoiced amount less allowance for expected credit losses (ECL). The ECL is based on

the difference between the contractual cash flows due in accordance with the contract and the present value of all the cash flows that

the Group expects to receive. The Group has elected to use the simplified approach in calculating ECL and recognises a loss allowance

based on lifetime ECLs at each reporting date (i.e. the expected credit losses that will result from all possible default events over the

expected life of the financial instrument). The Group has applied the practical expedient to calculate ECLs using a provision matrix based

on the Group’s historical credit loss experience, adjusted for factors that are specific to the debtors, general economic conditions and an

assessment of both the current as well as the forecast direction of conditions at the reporting date.

Trade receivables are fully impaired and subsequently written off when all possible routes through which amounts can be recovered

have been exhausted. The Group recognises any impairment gain or loss in the Consolidated Income Statement with a corresponding

adjustment to the financial asset’s carrying amount through a loss allowance account.

Notes to the Consolidated Financial Statements continued

Year ended 31 May 2024

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154

(b) Loans to joint ventures

The Group’s loans to the joint venture (presented in the Consolidated Balance Sheet as part of the ‘net investment in joint ventures’)

are measured initially at fair value and is subsequently held at amortised cost less an ECL allowance. The loans are assessed for an ECL

allowance as follows:

• Where there has been a significant increase in credit risk since initial recognition – the Group measures ECL based on lifetime ECLs

i.e. all credit losses expected from possible default events over the remaining life of the loan, irrespective of the timing of the default.

• Where there has not been a significant increase in credit risk since initial recognition – the Group measures the loss allowance at

an amount equal to 12-month ECL i.e. the portion of lifetime ECL that is expected to result from default events on the loan that are

possible within 12 months after the reporting date.

In assessing whether the credit risk has increased significantly on the loan to the joint venture since initial recognition, the Group

compares the risk of a default occurring on the loan at the reporting date with the risk of a default occurring on the loan at the date of

initial recognition. In making this assessment, the Group considers, in particular, the financial and operational performance of a joint

venture, changes to the financial forecasts or increases in credit risk on other receivables. Any associated loss allowance related to loans

to joint ventures is recorded in administration expense in the Consolidated Income Statement.

Financial liabilities and equity

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into.

An equity instrument is any contract that evidences a residual interest in the assets of the Group after deducting all of its liabilities.

(a) Interest bearing loans and borrowings

Interest-bearing bank loans, borrowings and overdrafts are initially recorded at fair value, net of directly related fees, and are

subsequently measured at amortised cost using the effective interest rate method.

Gains and losses arising on the repurchase, settlement or other cancellation of interest-bearing loans and borrowings are recognised in

finance income and finance costs, respectively.

(b) Trade payables

Trade payables are initially recognised at fair value, normally being the invoiced amounts, and subsequently measured at amortised cost,

using the effective interest rate method.

The Group may from time to time enter into arrangements with a bank or banking partners under which the bank offers vendors the

option to receive early settlement of its trade receivables. Vendors using such arrangement pay a fee to the bank. The Group does not

pay any fees and does not provide any additional collateral or guarantee to the bank. Based on the Group’s assessment the liabilities

under the vendor advance arrangement are closely related to operating purchase activities with no significant change in the nature

or function of the liabilities. These liabilities are therefore classified as trade payables with separate disclosures in the notes to the

Consolidated Financial Statements. The credit period does not exceed 12 months and are not discounted. As at the reporting date,

trade payables under vendor financing arrangements were £nil (2023: £nil), see note 20.

STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION

155

1. ACCOUNTING POLICIES CONTINUED

Share capital and reserves

(a) Treasury 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 as a deduction from equity

attributable to Company’s equity holders. When Treasury shares are sold or reissued subsequently, the amount received is recognised as

an increase in equity attributable to Company’s equity holders.

(b) Reserves

The types of reserves presented in the consolidated statement of changes in equity are:

• Capital redemption reserve: Includes amounts in respect of the redemption of certain of the Company’s ordinary shares.

• Hedging reserve: Changes in the fair value of derivative financial instruments that are designated and effective as hedges of future cash

flows are recognised in the hedging reserve through other comprehensive income.

• Currency translation reserve: The currency translation reserve recognises the cumulative effect of foreign exchange differences arising

on translation of the Group’s overseas operations from their local functional currency to the Group’s presentational currency.

Retirement benefit and similar obligations

The Group operates retirement benefit schemes in the UK and for certain overseas operations. In the UK, these comprise defined

benefit schemes, each of which was closed to future accrual on 31 May 2008, and defined contribution schemes. Overseas schemes are

predominantly defined contribution schemes, with the exception of PZ Cussons Indonesia, which operates a defined benefit scheme.

The Group accounts for its defined benefit schemes under IAS 19 Employee Benefits. The deficit/surplus of the defined benefit

pension schemes is recognised in the Consolidated Balance Sheet (with surpluses only recognised to the extent that the Group has an

unconditional right to a refund) and represents the difference between the fair value of the plan assets and the present value of the

defined benefit obligation at the balance sheet date. The present value of the defined benefit obligation is determined by discounting

the estimated future cash outflows using interest rates of high-quality corporate bonds that are denominated in the currency in which

the benefits will be paid, and that have terms to maturity approximating to the terms of the related pension obligation. Pension charges/

income recognised in the Consolidated Income Statement consists of administration charges for the scheme, past service costs and a

cost/income based on the net interest expense/income on net pension scheme liabilities/surpluses. Net interest is calculated by applying

a discount rate to the net defined benefit liability or asset. Past service cost is recognised in profit or loss when the plan amendment

or curtailment occurs, or when the Group recognises related restructuring costs or termination benefits, if earlier. Remeasurements

comprising actuarial gains and losses, the effect of the asset ceiling and the return on plan assets (excluding interest) are included

directly in other comprehensive income. Payments to defined contribution retirement benefit schemes are charged as an expense when

employees have rendered service entitling them to the contributions.

Share-based payments

The Group operates a number of long-term incentive schemes which provide share awards to Executive Directors and certain senior

employees. The Group also operates a Share Incentive Plan (SIP) scheme which is open to UK employees.

The awards under these plans are measured at the fair value at the date of grant and are expensed over the vesting period based on

the expected outcome of the performance, where they apply, and service conditions. At each balance sheet date, the estimate of the

number of awards that are expected to vest is assessed, and the impact of the revision, if any, is recognised in the Consolidated Income

Statement, with a corresponding adjustment to equity.

Dividend distributions

Dividend distributions which are subject to shareholder approval are recognised as a liability in the period in which the approval is given.

Interim dividends, which do not require shareholder approval, are recognised when paid.

Consideration of climate change

In preparing the Consolidated Financial Statements, management have considered the impact of climate change, particularly in the

context of the risks identified in the TCFD disclosures on pages 38 to 41. There has been no material impact identified on the financial

reporting judgements and estimates. In particular, management considered the impact of climate change in respect of the following areas:

• Assessment of impairment of goodwill, other intangibles and tangible assets

• Assessment of impairment of financial assets

• Going concern and viability disclosures

• Impact on useful economic lives of assets

• Preparation of budgets and cash flow forecasts.

Given the low value of short to medium-term risk to these areas assessed in the TCFD report, no climate change related impact was identified.

Notes to the Consolidated Financial Statements continued

Year ended 31 May 2024

PZ Cussons plc / AnnualReportandAccounts2024 / Financial Statements

156

The viability assessment on pages 51 to 53 includes an assessment of severe but plausible scenarios, including climate change risks,

with the potential to impact future performance but none of these are considered likely to give rise to a trading deterioration of the

magnitude indicated by the stress testing or to threaten the viability of the business over the five-year assessment period. Management

are, however, aware of the changing nature of risks associated with climate change and will regularly assess these risks against

judgements and estimates made in preparation of the Consolidated Financial Statements.

Accounting estimates and judgements

The Group’s material accounting policies under IFRS have been set by management with the approval of the Audit and Risk Committee.

The application of these policies requires management to make assumptions and estimates about future events. The resulting accounting

estimates will, by definition, differ from the actual results. Estimates and judgements are continually evaluated and are based on historical

experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Key sources of estimation uncertainty

Pensions

The cost of defined benefit pension schemes and the present value of the pension obligation are determined using actuarial assumptions

in those valuations. These include the determination of the discount rate, future salary increases, mortality rates and future pension

increases. Due to the complexity of the valuation, the underlying assumptions and its long-term nature, a defined benefit obligation is

highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date. Significant differences in actual

experience or significant changes in key assumptions could affect the retirement benefit surplus/obligations and the net interest expense.

In determining the discount rate, management considers the interest rates of corporate bonds with at least an ‘AA’ rating or above and

having terms to maturity approximating to the terms of the related pension obligation to be appropriate. The mortality rate is based on publicly

available mortality tables for the specific countries. Those mortality tables tend to change only at intervals in response to demographic changes.

Future salary increases and pension increases are based on expected future inflation rates for the respective countries.

See note 23 for details of key estimates and assumptions applied in valuing the pension schemes.

Current taxation

Current taxation liabilities/assets relate to the expected amount of taxation to be paid/received as a result of the operating performance

of the Group’s entities. In calculating the appropriate taxation charge, assumptions and judgements are made regarding application and

interpretation of local laws.

In situations where tax impacts are subject to uncertain treatment, interpretation of local rule or regulation, or otherwise remain to

be agreed with relevant tax authorities, an estimate of any resulting financial impact may be recorded in the Consolidated Financial

Statements. Any such management estimates are made in accordance with IFRS requirements, including IAS 12 Income Taxes and IFRIC

23 Uncertainty over Income Tax Treatments when considering income tax and IAS 37 Provisions, Contingent Liabilities and Contingent

Assets in relation to non-income taxes. Due to the uncertainty associated with such tax items, there is a possibility that on conclusion

of open tax matters at a future date, the final outcome may differ significantly from the original amounts recorded. Where the eventual

taxation paid or reclaimed is different to the amounts originally estimated, the difference will be charged or credited to the income

statement in the period in which it is determined.

Included within the current taxation liability of the Group are current taxation estimates with net carrying values as at 31 May 2024 of

£24.7 million (2023: £25.2 million), of which £23.2 million (2023: £20.1 million) relates to a single estimate arising due to a difference

in technical standpoint between PZ Cussons plc and a tax authority on a subjective and complex piece of legislation. Due to the known

difference in technical standpoint, this potential taxation liability has been provided for in full as the range of possible outcomes could be

a liability up to the full value of the provided amount, however the potential future settlement remains a cash risk.

In addition to the provision items indicated above, as at 31 May 2024 the Group had further contingent taxation liabilities of £14.4 million

(2023: £7.8 million) and contingent assets of £1.2 million (2023: £2.2 million). The in-year increase in contingent liabilities is primarily

related to a recent overseas court verdict that found against the Group, which is expected to be appealed, and the possible cross-over

risk into later years. Other primary risks include the historical impact of licencing arrangements and more speculative claims made by

overseas tax authorities, with external third-party opinions supporting the recognition of such items as having less than a probable risk

of crystallisation. Although having a lower probability of a material financial impact. Such positions have been disclosed as contingent

assets/liabilities in accordance with IAS 37 Provisions, Contingent Liabilities and Contingent Assets.

Deferred taxation assets

Deferred taxation is provided on temporary differences between the carrying amounts of assets and liabilities recognised for financial

reporting purposes and the amounts used for taxation purposes, on an undiscounted basis. The amount of deferred taxation provided

is based on the expected manner of realisation or settlement of the carrying amounts of assets and liabilities, using tax rates enacted or

substantively enacted at the financial year-end date.

A deferred taxation asset is recognised only to the extent that it is probable that future taxable profits will be available against which the

asset can be utilised. Deferred taxation assets are recognised for unused tax losses to the extent that it is probable that future taxable

profits will be available against which they can be used. At 31 May 2024, the Group recorded a deferred taxation asset of £36.8 million

(2023: £3.6 million) on recognised but unused tax losses; the increase being largely due to FX losses arising as a result of the Nigerian

Naira devaluation. The Group has concluded that the deferred taxation assets will be recoverable as it is probable that the related

taxation benefit will be realised in the foreseeable future.

STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION

157

1. ACCOUNTING POLICIES CONTINUED

Assessment of impairment of goodwill and other indefinite life assets

Goodwill and brands have all arisen from business combinations and all have indefinite useful lives and, in accordance with IAS 36

Impairment of Assets, are subject to annual impairment testing (which the Group carries out at the year-end date), or more frequently

if there are indicators of impairment. The method used for impairment testing is to allocate assets (including goodwill and brands)

to appropriate CGUs based on the smallest identifiable group of assets that generate independent cash inflows, and to estimate the

recoverable amounts of the CGUs as the higher of the asset’s fair values less costs of disposal and the value-in-use. For the purposes of

goodwill impairment testing, goodwill related to each of the Beauty brands is aggregated together into the Beauty CGU as this is manner

in which the core assets are used to generate cash flows and is the lowest level at whch goodwill is monitored by management. Value-

in-use is determined using cash flow projections from approved budgets and plans which are then extrapolated based on estimated

long-term growth rates applicable to the markets and geographies in which the CGUs operate. The cash flow projections are discounted

based on a pre-tax weighted average cost of capital for comparable companies operating in similar markets and geographies as the Group

adjusted for risks specific to the particular CGU. The assumptions used in the cash flow projections, and associated sensitivities, are

described and set out in note 10.

Assessment of useful lives of acquired brands

The Directors are required to assess whether the useful lives of acquired brands are finite or indefinite. Under IAS 38 Intangible Assets, an

intangible asset should be regarded as having an indefinite useful life when, based on all of the relevant factors, there is no foreseeable

limit to the period over which the asset is expected to generate net cash inflows for the entity.

In determining that the acquired brands have indefinite lives, the Directors give consideration to such factors as their expected usage of

the brands, typical product life cycles, the stability of the markets in which the brands are sold, the competitive positioning of the brands,

and the level of marketing and other expenditure required to maintain the brands. The carrying value of brands within intangible assets

as at 31 May 2024 was £206.3 million (2023: £230.8 million), and if, for example, the useful lives of brands were estimated to be 50 years

based on their strength and durability, this would give rise to an annual amortisation charge of £4.1 million (2023: £4.6 million).

Critical areas of judgement

Permanent as equity balances

Common with many groups, subsidiaries within the Group enter into transactions with fellow subsidiaries. These transactions give

rise to intragroup receivable/payable balances which, given the different functional currencies of subsidiaries, can mean certain of

these receivable/payable balances will be denominated in foreign currency for one of the counterparties or, in some instances, both

counterparties. The retranslation of these intragroup foreign currency balances gives rise to foreign currency exchange differences, and

IAS 21 The Effects of Changes in Foreign Exchange Rates provides guidance on the classification of these differences. More specifically, in

relation to Consolidated Financial Statements, IAS 21 provides guidance when settlement of these balances is neither planned nor likely

to occur in the foreseeable future in which case such balances can be considered permanent as equity. Under these circumstances, which

also extends to amounts lent to equity method investments, exchange differences on consolidation are classified as other comprehensive

income within the currency translation reserve. Judgement is required when assessing when the permanent as equity criteria are met.

During the year, the Group de-designated the loans to its joint venture, PZ Wilmar Limited, and with fellow subsidiary undertakings from

permanent as equity when, reflecting upon developments in the current year, it was determined that it could no longer be demonstrated

that there was no intent or expectation to demand repayment. The determination of the date of de-designation involved some

judgement. Management consider the repayments made during the year and the announced plan to undertake a strategic review of the

Group's Africa operations to be the two specific dates that triggered de-designation, for the loans to the joint venture undertaking and

with subsidiary undertakings respectively.

From the date of de-designation, the foreign currency exchange differences on these loans were included in the Consolidated Income

Statement. A net credit of £1.0 million was included in the 2024 Consolidated Income Statement in relation to the foreign currency

exchange differences arising on loans to the joint venture and a net charge of £1.4 million was included in the 2024 Consolidated Income

Statement in relation to the foreign currency exchange differences on loans with fellow subsidiary undertakings.

2. SEGMENTAL ANALYSIS

The segmental information presented in this note is consistent with management reporting provided to the Executive Committee

(ExCo) (formerly the Executive Leadership Team (ELT)), which is the Chief Operating Decision-Maker (CODM). The CODM reviews the

Group’s internal reporting in order to assess performance and allocate resources. The CODM considers the business from a geographic

perspective, with Europe & the Americas, Asia Pacific and Africa being the operating segments. In accordance with IFRS 8 Operating

Segments, the ExCo has identified these as the reportable segments.

The CODM assesses the performance based on operating profit before adjusting items. Revenue and operating profit of the Europe &

the Americas and Asia Pacific segments arise from the sale of Hygiene, Beauty and Baby products. Revenue and operating profit from the

Africa segment also arise from the sale of Hygiene, Beauty and Baby products as well as Electrical products. The prices between Group

companies for intra-group sales of materials, manufactured goods, and charges for franchise fees and royalties are on an arm’s length basis.

Notes to the Consolidated Financial Statements continued

Year ended 31 May 2024

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158

Central includes expenditure associated with the global headquarters and above market functions net of recharges to our regions and our in-

house fragrance revenue. Reporting used by the CODM to assess performance does contain information about brand specific performance,

however global segmentation between the portfolio of brands is not part of the regular internally reported financial information.

(a) Reportable segments

	Europe & the
	Americas	Asia Pacific	Africa	Central	Eliminations	Total
2024	£m	£m	£m	£m	£m	£m
Gross segment revenue	204.1	179.2	151.7	34.2	(41.3)	527.9
Inter-segment revenue	(3.4)	(4.0)	—	(33.9)	41.3	—
Revenue	200.7	175.2	151.7	0.3	—	527.9
Segmental operating profit/(loss)before
adjusting items and share of results of joint
venture	32.6	28.0	19.6	(32.6)	—	47.6
Share of results of joint venture	—	—	10.7	—	—	10.7
Segmental operating profit/(loss)before
adjusting items	32.6	28.0	30.3	(32.6)	—	58.3
Adjusting items	(31.9)	(1.0)	(81.0)	(28.1)	—	(142.0)
Segmental operating profit/(loss)	0.7	27.0	(50.7)	(60.7)	—	(83.7)
Finance income						12.2
Finance expense						(24.2)
Net monetary loss arising from hyperinflationary
economies						(0.2)
Loss before taxation						(95.9)

	Europe & the
	Americas	Asia Pacific	Africa	Central	Eliminations	Total
2023	£m	£m	£m	£m	£m	£m
Gross segment revenue	210.2	197.8	256.3	74.0	(82.0)	656.3
Inter-segment revenue	(4.4)	(7.1)	—	(70.5)	82.0	—
Revenue	205.8	190.7	256.3	3.5	—	656.3
Segmental operating profit/(loss)before
adjusting items and share of results of joint
venture	29.3	27.5	29.7	(20.7)	—	65.8
Share of results of joint venture	—	—	7.5	—	—	7.5
Segmental operating profit/(loss)before
adjusting items	29.3	27.5	37.2	(20.7)	—	73.3
Adjusting items	(28.9)	2.1	11.1	2.1	—	(13.6)
Segmental operating profit/(loss)	0.4	29.6	48.3	(18.6)	—	59.7
Finance income						15.4
Finance expense						(13.3)
Profit before taxation						61.8

Segment assets and liabilities are not disclosed because they are not reported to nor reviewed by the CODM.

UK revenue for 2024 was £179.6 million (2023: £177.9 million) and Nigeria revenue for 2024 was £126.0 million (2023: £227.9 million).

UK non-current assets at 31 May 2024 were £274.4 million (2023: £307.8 million) and Nigeria non-current assets at 31 May 2024 were

£10.0 million (2023: £85.8 million).

STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION

159

2. SEGMENTAL ANALYSIS CONTINUED

The Group analyses its revenue by the following categories:

	2024	2023
	£m	£m
Hygiene	289.1	334.8
Baby	106.9	123.1
Beauty	68.3	85.3
Electricals	56.6	105.4
Other	7.0	7.7
	527.9	656.3

No single customer generates revenue greater than 10% of the consolidated revenue.

3. ADJUSTING ITEMS

Adjusting item expense/(income) comprised:

	2024	2023
	£m	£m
Simplification and transformation¹	10.1	2.9
Acquisition and disposal-related items²	(1.4)	(0.7)
Impairment charge (netofimpairmentreversal)¹	24.4	10.1
Foreign exchange losses on Nigerian Naira devaluation³	104.1	—
Foreign exchange losses on Nigerian Naira devaluation on joint venture⁴	3.4	—
Adjusting items before taxation	140.6	12.3
Taxation	(30.6)	(4.7)
Adjusting items after taxation	110.0	7.6

1 Included in administrative expense in the Consolidated Income Statement.

2 Included in finance income in the Consolidated Income Statement.

3 £79.0 million is included in cost of sales and £25.1 million is included in administrative expense in the Consolidated Income Statement. The amount in administrative expense includes

charges of £0.2 million and £1.4 million relating to the de-designation of permanent as equity loans to a joint venture and fellow subsidiary undertakings respectively (note 1).

4 Included in share of results of joint venture in the Consolidated Income Statement. This amount includes a credit of £1.2 million relating to the de-designation of permanent as equity

loans payable by a joint venture undertaking to the Group (note 1).

Simplification and transformation

For the year ended 31 May 2024, these costs primarily relate to the following projects which commenced in 2022: three-year finance

transformation project, HR simplification project and supply chain transformation project which are due to complete in 2025. In 2023, the

profit on disposal of properties in Nigeria was partially offset by costs relating to the three-year finance transformation project, the HR

simplification project and supply chain transformation project.

Acquisition and disposal-related items

For the years ended 31 May 2024 and 31 May 2023, the income relates to the remeasurement of the deferred consideration for the

Childs Farm acquisition.

Impairment charge (net of impairment reversal)

The current year charge relates to the impairment of the Sanctuary Spa brand (note 10). In the prior year, the impairment charge, net

of reversal, comprises a £16.5 million impairment of the Sanctuary Spa brand, a £4.2 million reversal of a prior period impairment of

the Rafferty’s Garden brand and a reversal of a £2.2 million previously recognised impairment in the Group’s investment in joint venture

Wilmar PZ International Pte. Limited, which was dissolved in May 2023 (note 14).

Foreign exchange losses arising on Nigerian Naira devaluation (including on joint venture)

For the year ended 31 May 2024, this primarily relates to realised and unrealised foreign exchange losses resulting from the Nigerian

Naira devaluation during the financial year on USD denominated liabilities which existed at 31 May 2023.

As outlined in footnotes 3 and 4 above, this also includes a net charge of £0.4 million relating to the de-designation of permanent as

equity loans to a joint venture undertaking and with susidiary undertakings (note 1).

The closing NGN/GBP rate at reporting date was 1,893 (2023: 577), and the average NGN/GBP for the current year was 1,257

(2023: 536).

Notes to the Consolidated Financial Statements continued

Year ended 31 May 2024

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160

4. (LOSS)/PROFIT FOR THE YEAR

(Loss)/profit for the year has been arrived at after charging/(crediting):

	2024	2023
	£m	£m
Net foreign exchange losses	(124.6)	5.1
Research and development costs	0.5	0.5
Depreciation of property, plant and equipment	7.0	8.2
Depreciation of right-of-use assets	3.2	3.9
Profit on disposal of property, plant and equipment	(1.8)	(11.1 )
Amortisation of intangible assets	7.1	7.0
Impairment of intangible assets, net of impairment reversal (note10)	24.4	12.3

Auditor remuneration

An analysis of auditor remuneration is provided below:

	2024	2023
	£m	£m
Fees payable to the Company’s Auditor for the audit of the Company’s annual financial statements and consolidation	2.3	2.2
Fees payable to the Company’s Auditor and their associates for other services to the Group:
–auditoftheCompany’s subsidiaries	1.7	0.8
Fees payable to the Company’s previous Auditor and their associates for other services to the Group:
–auditoftheCompany’s subsidiaries	0.4	—
Total audit fees	4.4	3.0
Fees payable to the Company’s Auditor and its associates for other services:
–Otherassuranceservices 1	0.3	—
Total fees for non-audit services	0.3	—
Total auditor's remuneration	4.7	3.0

1 Fees for permitted non-audit services paid to the Company’s auditor included £300,000 (2023: £40,000) for the review of the Group’s interim statement released in February 2024.

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161

5. EMPLOYEES

The average monthly number of employees (including Executive Directors) was as follows:

	2024	2023
	number	number
Production	1,621	1,647
Selling and distribution	599	613
Administration	347	412
	2,567	2,672

Costs incurred in respect of the above were as follows:

	2024	2023
	£m	£m
Wages and salaries1	69.2	76.9
Social security costs1	5.1	4.5
Pension costs	3.5	4.1
Share-based payments	1.9	1.7
	79.7	87.2

1 The 2023 wages and salaries cost and social security costs have been amended from £74.7 million and £4.2 million respectively to £76.9 million and £4.5 million respectively. These

amendments have no impact on the Consolidated Income Statement, Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Consolidated Cash Flow

Statement and Consolidated Statement of Changes in Equity for any period presented.

Pension costs (note 23) consist of:

	2024	2023
	£m	£m
Defined benefit schemes	1.3	1.5
Defined contribution schemes	1.9	2.4
Nigerian gratuity scheme	0.3	0.6
Other post-employment benefits	—	(0.4)
	3.5	4.1

6. NET FINANCE EXPENSE/(INCOME)

	2024	2023
	£m	£m
Interest receivable on cash and cash equivalents held	(8.9)	(11.1)
Interest receivable on loans to joint venture	—	(0.7)
Finance income on defined benefit pension schemes	(1.9)	(2.3)
Change in fair value of deferred consideration	(1.4)	(1.3)
Finance income	(12.2)	(15.4)
Interest payable on borrowings	22.2	11.3
Finance expense on defined benefit pension schemes	0.6	0.6
Interest expense on lease liabilities	0.5	0.5
Amortisation of financing fees	0.9	0.9
Finance expense	24.2	13.3
Net finance expense/(income)	12.0	(2.1)

Notes to the Consolidated Financial Statements continued

Year ended 31 May 2024

PZ Cussons plc / AnnualReportandAccounts2024 / Financial Statements

162

7. TAXATION

	2024	2023
	£m	£m
Current taxation
UK corporation tax
–currentyear	5.2	(2.2)
–adjustmentsinrespect of prior years	3.5	(0.3)
–doubletaxation relief	—	(0.5)
	8.7	(3.0)
Overseas corporation tax
–currentyear	11.6	26.3
–adjustmentsinrespect of prior years	(0.8)	0.8
	10.8	27.1
Total current taxation charge	19.5	24.1
Deferred taxation
Origination and reversal of temporary timing differences	(38.0)	(6.2)
Adjustments in respect of prior years	(6.4)	(2.3)
Effect of rate change adjustments	0.8	(0.2)
Total deferred taxation credit	(43.6)	(8.7)
Total taxation (credit)/charge	(24.1)	15.4
Analysed as:
Taxation on profit before adjusting items	6.5	20.1
Taxation on adjusting items	(30.6)	(4.7)
	(24.1)	15.4

The effective tax rate in relation to continuing operations for the year is 25.1% (2023: 24.9%). Before adjusting items, the effective tax

rate was 14.5% (2023: 27.1%), primarily due to the impact of the minimum tax regime in Nigeria as a result of the recognised statutory

operating losses, and the tax deductibility of realised foreign exchange impacts arising as a result of the cash repatriation from Nigeria to

the UK.

STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION

163

7. TAXATION CONTINUED

UK corporation tax is calculated at 25.0% (2023: 20.0%) of the estimated assessable profit for the year. Taxation for other jurisdictions

is calculated at the rates prevailing in the respective jurisdictions. The Group has chosen to use the UK corporation tax rate for the

reconciliation of the tax charge for the year to the profit before taxation as this is the seat for the central management and control

of the Group.

	2024	2023
	£m	£m
(Loss)/profit before taxation	(95.9)	61.8
Taxation at the UK corporation tax rate of 25% (2023:20%)	(24.0)	12.4
Adjusted for:
Effect of non-deductible expenses	6.4	2.2
Effect of non-taxable income	(3.7)	(4.9)
Effect of rate changes on deferred taxation (allterritories)	0.8	(0.5)
Taxation effect of share of results of joint venture	(2.4)	(2.2)
Other taxes suffered outside of the UK	2.1	3.2
Net adjustment to amount carried in respect of uncertain tax positions	2.4	(0.8)
Movements in deferred taxation assets not recognised	1.7	(0.6)
Adjustments in respect of prior years	(3.7)	(1.5)
Differences in overseas rates	(3.7)	8.1
Taxation (credit)/charge for the year	(24.1)	15.4

Primary reconciling differences between taxation at UK corporation tax rate and the actual taxation charge for the year include the following:

• Net increase to the amount carried in respect of uncertain tax positions £2.4 million (2023: £0.8 million decrease)

• Effect of non-deductible expenses of £6.4 million (2023: £2.2 million) include items considered non-deductible across the Group’s

various operating entities, including disallowances in respect of related party transactions

• Effect of non-taxable income of £3.7 million (2023: £4.9 million) include items considered non-taxable across the Group's various

operating entities including non-taxable income in respect of related party transactions

• Other taxes suffered outside the UK increased the annual taxation charge by £2.1 million (2023: £3.2 million) and included unrelievable

withholding taxes incurred on dividends received in the UK. It also includes the minimum rate of tax payable in Nigeria as a proportion

of revenue, as a result of there being no taxable profits on which corporation tax would be assessable due to the material realised and

unrealised FX losses during the period

• Differences in foreign tax rates during the year of £3.7 million (2023: £8.1 million) reflecting the Group profitability profile in

overseas jurisdictions.

Taxation on items taken directly to equity and other comprehensive expense was a credit of £14.9 million (2023: £8.9 million charge)

and related to deferred taxation on the remeasurement of retirement and other long-term benefit obligations, on share-based payments

expense and on exchange differences on intercompany balances determined to be permanent as equity.

The Group operates in a multinational tax environment where the nature of uncertain tax positions is often complex and subject to

change, and necessarily involves a degree of estimation and judgement in respect of certain items whose tax treatment cannot be finally

determined until resolution.