Annual Report

and Form 20-F

2025

Strategic Report

Haleon at a glance

1

2025 highlights

2

Chair’s statement

3

Our business model

4

Chief Executive Officer’s review

5

Our strategy

6

Market drivers

8

Our categories

9

Our approach to health inclusivity

and sustainability

15

Climate and nature-related

financial disclosures

19

Section 172 statement and

stakeholder engagement

31

Our culture and people

35

Our key performance indicators

40

2025 Finance review

42

Our approach to risk

50

Viability statement

58

Statement of compliance

59

Corporate Governance

Our Board of Directors

60

Our Executive Team

62

Letter from the Chair

63

Governance structure

64

Board activities

65

Workforce engagement

69

Audit & Risk Committee Report

70

Environmental & Social

Sustainability Committee Report

74

Nominations & Governance

Committee Report

76

Directors’ Remuneration Report

78

Compliance with the UK

Corporate Governance Code

104

Consolidated

Financial Statements

Statement of Directors’

responsibilities

105

Independent auditor’s report

106

Report of independent registered

public accounting firm

119

Consolidated income statement

121

Consolidated statement of

comprehensive income

122

Consolidated balance sheet

123

Consolidated statement of

changes in equity

124

Consolidated cash flow statement 126

Notes to the Consolidated

Financial Statements

127

Parent Company

Financial Statements

Parent Company balance sheet

169

Parent Company statement of

changes in equity

170

Notes to the Parent Company

Financial Statements

171

Other Information

Directors’ Report

175

Group information

179

Shareholder information

193

Exhibits

197

Form 20-F cross reference

199

Climate and nature-related

disclosures cross reference

202

Forward-looking statements

204

Use of non-IFRS measures

205

Glossary

211

Useful information

212

Contents

What’s inside

We deliver better everyday health

with humanity — combining

trusted science, consumer insight,

and global expertise.

Our purpose drives sustainable

growth by improving health outcomes,

expanding access, and building

confidence in self care, ensuring our

brands make a measurable difference

in people’s lives around the world.

haleon.com/investors

Our approach to reporting

Integrated reporting

In addition to our shares being listed

on the London Stock Exchange (LSE),

Haleon is a foreign private issuer (FPI)

with American Depositary Shares (ADSs)

listed on the New York Stock Exchange

(NYSE). We have produced a combined

Annual Report and Form 20-F to ensure

consistency of information for both UK

and US investors. This Report contains

disclosures required to meet both

regulatory regimes.

The Report also includes non-IFRS

measures, which we believe provide

investors and other stakeholders with

important additional information about

the Company’s performance. Where

used, they are indicated.

External websites and/or reports that

are referred to in this Report are not

incorporated into and do not form part

of this Report.

Relevant policies are available on

our website

www.haleon.com/

who-we-are/Governance/codes-

policies-and-standards

Our key stakeholders

Consumers

Customers

Employees

Investors

Health Professionals

Suppliers

Governments and industry regulators

Portfolio of leading brands in resilient categories

Haleon at a glance

A world-class consumer company

focused on

better

everyday health

Six market

categories

Oral

Health

Vitamins, Minerals

& Supplements

(VMS)

Pain Relief

Respiratory

Health

Digestive

Health

Therapeutic Skin

Health & Other

Key superior

brands

Category size/

Haleon position1

£30bn/#1

3

£66bn/#1

£20bn/#1

£32bn/#2

£20bn/#1

£34bn/#3

4

Combined category growth at 3–4%

5

1.

2.

3.

4.

5.

Three key drivers of value creation:

to unlock our full potential2

Market size

Global categories

Revenue

Adjusted

operating profit

Strong cash flow

disciplined capital

allocation

Find out more about

from page 6

Strong EPS growth

generating industry-leading shareholder returns

2025 highlights

Continued strong

performance

Reported financial measures

Non-IFRS measures

1

Non-financial

measures

Revenue

£11.0bn

2024: £11.2bn

Revenue growth

(1.8)%

2024: (0.6)%

Operating profit

£2.4bn

2024: £2.2bn

Operating

profit growth

9.3%

2024: 10.5%

Operating

profit margin

21.9%

2024: 19.6%

Net cash inflow from

operating activities

£2.6bn

2024: £2.3bn

Total borrowings/

profit after tax

5.1x

(2024: 6.9x)

Diluted earnings

per share

18.5p

2024: 15.7p

Total dividend per

ordinary share

2

7.1p

2024: 6.6p

Organic revenue growth

3.0%

2024: 5.0%

Adjusted

operating profit

£2.5bn

2024: £2.5bn

Organic operating

profit growth

10.5%

2024: 9.8%

Adjusted operating

profit margin

22.9%

2024: 22.3%

Free cash flow

£1.9bn

2024: £1.9bn

Net debt/adjusted

EBITDA

2.6x

2.8x at 31 December 2024

Adjusted diluted earnings

per share

18.8p

2024: 17.9p

55%

*

reduction in net Scope 1

and 2 carbon emissions

vs the 2020 baseline

9%

*

reduction of virgin

petroleum-based plastic

46.3%

gender representation

in leadership roles

3

74m+

people empowered to

be more included in

opportunities for better

everyday health

*

KPMG LLP has issued independent limited assurance over the selected data indicated using assurance standards ISAE(UK) 3000 and ISAE 3410.

We use certain non-IFRS measures to provide additional information about the Company’s performance and position. Non-IFRS measures may be considered in addition to, but not as a substitute for or superior to, information presented in accordance with

IFRS. Non-IFRS measures are defined and reconciled to the nearest IFRS measure, see from page 205 for more details.

Includes the interim dividend of 2.2p paid on 18 September 2025, and the proposed final dividend of 4.9p per ordinary share. The total dividend represents a payout ratio of approximately 38% of adjusted earnings (2024: approximately 37%).

This does not include the US and Puerto Rico.

Haleon

Annual Report and Form 20-F 2025

Chair’s statement

Vindi Banga

Chair

For more information

about our 2025

results use the

QR code

It was a privilege to be appointed Chair

from 1 January 2026. Since then, I have

been focused on supporting Brian and

the Haleon Executive Team on our

strategy, and positioning Haleon for

the long term.

2025: Good progress in a

challenging market

Haleon delivered a competitive

performance in 2025, outperforming our

global categories in a challenging market.

Against this backdrop, we improved our

gross margin significantly through the

ongoing transformation of our supply

chain, allowing us to invest in

strengthening our brands while

delivering higher profits.

Governance

Following my appointment as Chair,

Alan Stewart was appointed as Senior

Independent Director from 1 January

2026. Bláthnaid Bergin, Chief Financial

Officer of J Sainsbury plc and Matt

Shattock, a highly experienced consumer

sector leader were appointed to the

Board in February and June 2025

respectively, adding to the collective

experience and strength of the Board.

The Board travelled to our global

Over-the-Counter (OTC) R&D and

manufacturing centre in Nyon,

Switzerland and to our largest market,

the US. These visits, as well as our

regular interactions with colleagues

across the business, provide valuable

insights.

We continue to uphold the highest

standard of ethics and regulatory

compliance ensuring transparency and

accountability in all we do. We also

reaffirmed our commitment to delivering

better everyday health with humanity

through our Health Inclusivity and

Sustainability Report, which is an

integral part of our Win as One strategy.

In 2025, we achieved all the Responsible

Business goals we set at listing, including

empowering 50m people annually

to access improved everyday health.

We have now set an ambitious goal of

providing opportunities for over 300m

people a year to take more control of

their health by 2030.

Focus for 2026

The Board has the following priorities for

this year.

— Driving our growth, productivity and

culture change agenda, including the

implementation of our new operating

model.

— Supporting our value creation

framework through disciplined capital

allocation to deliver our ambition

of generating industry-leading

shareholder returns.

— Building our capabilities in innovation,

marketing, R&D, information, data

analytics and customer excellence

to that of a world-class consumer-

focused business.

— Maintaining strong corporate

governance and upholding robust

ethical standards.

My Board and I will work closely with the

Executive Team to support Haleon’s

continuing evolution, and drive

performance and shareholder returns

through the delivery of our strategy.

Thank you

I would like to thank Sir Dave Lewis for

his contribution as Chair since listing, as

well as Brian and the Executive Team for

their commitment and hard work in 2025.

Win as One

In May, we launched our new Win as

One strategy, a bold and ambitious plan

to unlock our full potential. We are

focused on delivering three strategic

priorities: delivering consistent growth,

unlocking productivity gains and

embedding an agile, performance-

focused culture. In January 2026, we

announced our new operating model,

which will enable us to drive growth and

agility in support of our new strategy.

This will enable better investment

choices, superior execution and

enhanced marketing and brand-building

capabilities.

Disciplined capital allocation

and dividend

The final Pfizer sell-down in March 2025

was an important milestone for us as a

standalone business and reflects our

significant progress since listing. We have

delevered to 2.6x net debt / adjusted

EBITDA, enabling us to return substantial

value to our shareholders. In 2025,

we returned a total of £1.1bn through

dividends and buyback.

Our strategic position in China, our

second-largest market and a key source

of long-term growth, was advanced

through the acquisition of the remaining

12% stake in our TSKF joint venture.

We remain focused on bolt-on

acquisitions that complement our

existing portfolio, with a strong

strategic fit and attractive financials.

The Board is proposing a total

dividend of 7.1p per ordinary share

which represents a payout ratio of

approximately 38% of 2025 adjusted

earnings. This includes a final dividend

of 4.9p per ordinary share.

A year of

good

progress

We are focused on delivering our

three key priorities in support of our

Win as One strategy.

3

Strategic

Report

Annual Report and Form 20-F 2025

Other

Information

Parent Company

Financial Statements

Consolidated

Financial Statements

Corporate

Governance

Our

value creation

framework

Our business model

We will drive strong earnings per share growth to generate

industry-leading shareholder returns.

Operating leverage1

Strong cash flow generation1

Disciplined capital allocation

— 4–6% annual organic revenue growth

2

.

— +50–80bps adjusted gross profit margin per year

3

.

— High single-digit adjusted operating profit growth4.

— Working capital improvement.

— Strong free cash flow.

— c.2.5x net debt/adjusted EBITDA.

— Invest for growth.

— Bolt-on acquisitions.

— Return surplus cash to shareholders.

Organic revenue growth:

Gross profit margin expansion:

Adjusted operating profit growth:

Working capital improvements:

Strong free cash flow:

Strong investment grade balance sheet:

Investing for growth:

Bolt-on M&A:

Shareholder returns:

Chief Executive Officer’s review

Transforming into a world-class

consumer company

2025 was an important year for Haleon.

We made good progress against our three

strategic priorities: delivering competitive

growth in a challenging environment;

unlocking productivity gains and embedding

an agile; performance-focused culture.

Financial highlights

Organic revenue grew 3.0% (reported (1.8)%)

and 60% of our brands grew or maintained

market share. We continued to drive

productivity, with adjusted gross profit margin

up 220bps at constant currency (reported

350bps), which provided capacity for healthy

investment in the business. This resulted in

organic operating profit growth of 10.5%

(reported 9.3%). Adjusted operating profit

margin increased 160bps on an organic basis

and 60bps on an actual exchange rate basis

(reported 230bps). Free cash flow for the year

was strong, and we invested in high-growth

markets such as China, where we acquired the

remaining stake in our TSKF joint venture to

take us to full ownership.

Productivity

We aim to unlock £800m in gross supply

chain savings over the next five years through

optimising our supply chain, allowing us to

deliver operating leverage more consistently

to the bottom line. Progress includes:

— Tracking well against our targets to reduce

SKUs, packaging and formulations by

around 30%.

— Increasing our multi-sourcing of ingredients

to around 90% and lower logistics costs

from optimising shipments, ports and global

leverage. Further efficiencies will flow from

globalised engineering, technical platforms

and an innovation supply chain.

Culture

We are transforming Haleon into a world-class

consumer company, with an agile,

performance-focused culture. Progress

includes:

— Employee engagement reached 82% in

our latest annual engagement survey.

— In January 2026, we announced plans to

evolve our operating model to drive growth

and agility in support of our Win as One

ambitions. This included creating a new

Chief Growth Officer role to lead our growth

and innovation agenda alongside the

creation of six new Operating Units, which

all sit on the Haleon Executive Team,

bringing the voice of consumers deeper

into strategic decision making.

Strengthening our leadership

In May 2025, we welcomed Nathalie

Gerschtein as our new President, North

America, who brings over two decades of

experience across the retail, FMCG and

beauty industries. Carl Haney also joined as

our new Chief R&D Officer in August 2025,

bringing world-class expertise in driving

transformative innovation within global

consumer businesses.

Introducing our Win as One strategy

Haleon operates in an attractive and highly

relevant global consumer health sector worth

around £200bn

1

today. We are well positioned

to benefit from favourable long-term macro

trends including the global focus on health

and wellness, ageing populations, and

a growing middle class, particularly in

emerging markets.

This year, we launched our Win as One

strategy, which will enable us to unlock our

full potential. It will support our ambitions to

reach one billion more consumers by 2030

and deliver industry-leading shareholder

returns. Read more on page 6.

Growth

Leveraging our global footprint, scaling our

innovations and capitalising on the strength

and breadth of our superior brands, will

enable us to deliver health in more hands.

We are focused on three key opportunities:

—

Closing the incidence vs treatment gap:

In

Gum Health, parodontax has become one of

our top-selling innovations across China’s

largest three cities and is now in over

10,000 stores. We continue to roll out

Sensodyne’s Clinical range which is fuelling

growth among younger consumers.

—

Innovation-led premiumisation:

In North

America, we launched our new nasal mist

technology under the Theraflu brand

following its success with Otrivin, which is

driving strong market gains. In VMS, the

expansion of Centrum Daily Kits across

Asia-Pacific has delivered market share

gains with over one million packs sold

since launch.

—

Reaching lower-income consumers:

We

more than doubled rural India distribution

to 600,000 outlets, boosting 20-Rupee

Sensodyne consumption, expanding ENO

3-in-1 reach and launching 10-Rupee

Centrum Recharge.

Brian McNamara

Chief Executive Officer

As part of our announcement to evolve our

operating model in January 2026, Filippo Lanzi

became Chief Growth Officer, and Björn

Timelin became Chief Transformation Officer.

Jon Workman was appointed President,

Europe and Özlem Kaynak was named as

President, Middle East & Africa.

We also welcomed two new external leaders.

Andrés González joined as President, Latin

America from Unilever, where he was most

recently President Beauty & Wellbeing LatAm

and President, Unilever Brazil. Kedar Lele

joined as President, India Subcontinent from

Castrol India Ltd, where he was most recently

Managing Director for Castrol India’s South

Asia business. Thank you to Lisa Paley and

Franck Riot, who left the business in 2025,

for their significant contributions to Haleon.

2026 outlook

The opportunity ahead for Haleon is

significant and I remain confident in our

ability to deliver on our medium-term

guidance. In 2026, we expect organic revenue

growth of 3–5% and high single-digit adjusted

operating profit growth at constant currency.

Thank you

I would like to thank Sir Dave Lewis for the

instrumental role he played as Haleon’s Chair

since our listing in July 2022, and for his

support to me and my Executive Team.

I look forward to working closely with

Vindi Banga, our new Chair, in the year ahead.

Vindi has an extensive track record in global

consumer businesses and extensive

international Board experience.

Finally, I would like to thank the Board and

everyone at Haleon for their hard work and

commitment to the business.

Win as One

1.

Nicholas Hall, Euromonitor Passport and Haleon analysis

of third-party data, the latest available data for the

Consumer Healthcare market as a whole, beyond our

individual categories.

5

Strategic

Report

Annual Report and Form 20-F 2025

Other

Information

Parent Company

Financial Statements

Consolidated

Financial Statements

Corporate

Governance

Our strategy

We are making good progress to transform Haleon into

a world-class consumer company.

Our Win as One strategy is all about raising our ambitions and unlocking

our full potential. It is how we are mobilising and driving the organisation

forward, to capture the opportunities we see ahead. Our strategy consists of

mutually reinforcing elements: our purpose, two ambitions, four strategic

drivers and four behaviours.

1. Health in more hands

Help many more people solve more of their

everyday health needs

This is about unlocking significant headroom within

our categories. It is about driving penetration,

closing the incidence vs treatment gap, delivering

innovation-led premiumisation, and expanding

reach among under-served segments, including

lower-income consumers. It is also about driving

geographic expansion and new occasions.

2. Superior brands

Build superior brands – trusted and preferred

by consumers, customers and experts

This is about leveraging our category footprint,

scaling our innovations, capitalising on the strength

and breadth of our brand portfolio, and driving

expert advocacy and recommendation. We are also

developing superior innovation and claims backed

by scientific evidence, delighting consumers with

pack and sensorial attributes, and ensuring brilliant

execution to be first choice at shelf.

3. Wired for excellence

Create capability advantage across the value

chain – powered by data, digital and analytics,

and operational excellence

We are driving efficiency and productivity across

the entire value chain. This includes reducing

unnecessary complexity and inefficiency in our

supply chain – radically simplifying our current

portfolio and evolving our manufacturing footprint.

We are also driving innovation, and customer and

shopper excellence.

4. Full potential people

Unleash the full potential of our people to be

at their best

We do this by unlocking the potential of our people

to deliver on our ambitions and cultivating a culture

that gives us a genuine competitive advantage. We

are simplifying our processes, uplifting capability

and driving a culture shift to become a more agile,

performance-focused company. This includes

streamlining our operating model and continuing to

expand our business services footprint to support

our growth and productivity agenda.

Our strategy:

Win as One

We have defined

two ambitions

Reach 1bn more consumers by 2030

We are proud of the impact we have on people around the world. Haleon helps 1.4bn consumers

globally

to look after their everyday health and by 20230 we aim to serve a billion more.

Generate industry-leading shareholder returns

We will create value for shareholders and generate industry-leading shareholder returns by driving

continued top-line growth, capturing significant gross profit margin opportunity and continuing to

transform into a more agile and performance-focused consumer company.

four strategic drivers

Our purpose

6

We are focused on addressing the social and environmental barriers that hold

people back from better everyday health. For us this includes: empowering people

to take charge of their health, minimising our impact on the environment, and

upholding high standards across our value chain.

Our

Health Inclusivity and Sustainability

strategy

is woven

into every element of our strategy and is at the heart of

everything we do

Our

competitive strengths

will help us unlock our ambitions

To

Win

as One, we have embedded

four behaviours

1. Consumer first, always

Understand the consumer and take action to meet their needs; make purpose-led

decisions; and prioritise solutions that benefit consumers.

2. Collaborate for impact

Build relationships to deliver our purpose and ambitions; seek diverse views to test

thinking; and constructively challenge for better outcomes.

3. Unlock value at pace

Effectively use data to shape stretching goals; relentlessly focus on creating

shareholder value; and have a bias for action – fast decisions, execute, learn

and improve.

4. Grow myself and others

Our employees own their own growth and performance, have candid

conversations and energise and inspire others for resilience and potential

The Board and Executive Team review updates on strategy evolution and performance throughout

the year.

See also our

approach to health inclusivity and sustainability

,

key performance indicators

,

2025 finance

review

,

approach to risk

, and

Board activities’

sections, on pages 15, 40, 42, 50 and 65.

Consumer first

We focus on understanding the consumer

and prioritising solutions that meet their health

needs. This helps us to develop fit-for-purpose

innovation and communication, and to enhance

our engagement with Health Professionals who

help educate consumers. There is a huge

opportunity to create products that improve

people’s quality of life, not just treat their

health needs.

Trusted science

We leverage the technical and scientific

expertise of our scientists, and are investing

c. £200m in a new cutting-edge R&D facility.

Our regulatory excellence is world class, and we

continue to advance this to shape the future of

healthcare policy and regulation, innovate with

new digital solutions, and actively support

product licences. Science is at the heart of our

brands, and we are going to continue investing

here, but in new digital ways. In addition to our

high-quality clinical studies, we are expanding the

use of ‘real-world-evidence studies’ to provide

robust insight into both usage and quality-of-life

benefits of products for our consumers.

Pharmacy channel expertise

Pharmacies are considered a first point of care

for consumers. Our geographic footprint and

extensive sales force give us strong reach in this

channel, where recommendation of trusted health

products matters. We have direct relationships

with pharmacists, anchored in: offering best-in-

class shopper experience through a variety of

tools and solutions; leading category growth

via our in-store execution programmes; and

educating and partnering with pharmacists to

best engage with their customers, enriched

with digital capabilities.

7

Strategic

Report

Haleon

Annual Report and Form 20-F 2025

Other

Information

Parent Company

Financial Statements

Consolidated

Financial Statements

Corporate

Governance

Market drivers

Consumer Health is an attractive,

evolving sector supported by

long-term macro trends

Socioeconomic and

geopolitical

dynamics shifting

Consumer needs

evolving

Channel landscape

evolving

Regulatory dynamics

changing

Global population growth is

driven by Asia and Middle East

and Africa, with India having

overtaken China in population

size. Emerging-market

urbanisation and middle-class

expansion, and developed-

market income polarisation, are

driving self-care. Geopolitical

risks, tariffs and currency

fluctuations also impact

affordability and supply chains.

Chronic conditions are becoming

more common, driven by ageing

populations, and environmental

and behavioural factors. Online

channels are becoming a key

source of health information

and health specialists are still

influencing purchasing decisions

1

.

Demand is also increasing for

holistic health solutions

1

, digital

tools, ingredient transparency,

efficacy and credibility.

Grocery, drug and traditional

pharmacy channels are under

significant pressure, with

increasing input costs.

Meanwhile, shifts to ecommerce

and eB2B are accelerating. As a

consequence, retailers and

online platforms are using data

and technology to shape their

offerings, pricing and consumer

experience.

Health systems are shifting

towards self-care and expanding

the role of pharmacies to

manage strong self-care demand,

health-worker shortages and cost

pressures. Regulations are also

increasing – with stronger scrutiny

of health claims, tighter ingredient

safety and transparency, and

increasing ESG regulations and

reporting requirements.

53%

of Consumer Health market

growth comes from

emerging markets

2

1.4bn

people will be aged 60+

by 2030

3

23%

of Consumer Health sales are

made online

4

18m

global health-workers

shortage expected by 2030

3

The Consumer Health sector continued to

emerge and evolve in 2025. Opella became

a standalone Consumer Health company,

following the completion of Sanofi’s sale of a

controlling 50% stake to private equity firm

Clayton, Dubilier & Rice. Following Kenvue’s

listing as a fully-independent company,

Kimberly-Clark announced its intention to

acquire Kenvue and create a $32bn global

health and wellness company. In parallel,

Consumer Health companies are actively

reshaping their portfolios: Church & Dwight

and Nestlé engaged in strategic reviews of

their VMS businesses; and Procter & Gamble

recently acquired Digestive Health brand

Wonderbelly. Reckitt divested its Essential

Home business (retaining a 30% equity stake),

to become a simpler consumer health and

hygiene company. Businesses in the sector

include Bayer, Church & Dwight, Colgate-

Palmolive, Kenvue, Nestlé, Opella, Procter &

Gamble, Reckitt and Unilever, along with

local players. While the sector is highly

competitive, Haleon has been able to

differentiate itself through its purpose

and Win as One strategy, underpinned by

consumer understanding, trusted science

and pharmacy channel expertise.

Haleon is well positioned. As socioeconomic and geopolitical

dynamics shift, we see growing opportunities to drive reach and

optimise our supply chain. We have strong positions in attractive

categories, which help us address evolving consumer needs and

regulatory trends. We are investing in digital and technology,

and have competitive strengths in pharmacies and with experts,

to help us adapt to the evolving channel landscape.

Our categories

Oral Health

Activity examples

Key growth driver and 2025 activities

Market

driver(s)

Innovation-led premiumisation

Expanded Sensodyne Clinical range globally.

Clinically proven to whiten teeth

by two shades

5

and provide 24/7 sensitivity protection

6

, Sensodyne Clinical White

is now available in more than 25 markets and is ranked as a top 10 innovation in

the US Oral Health market.

Expanding reach

Improved access to Oral Health in emerging markets.

Introduced an affordable

Sensodyne Cavity + Sensitivity toothpaste in 15 markets, including Indonesia and

South Africa, addressing affordability barriers, and supported by online activation.

Scaling innovation

Expanded Gum Health innovation globally.

Building on its successful 2024

launch, we expanded parodontax’s distribution in China

7

, contributing to the

brand’s global double-digit growth

8

.

Expert recommendation

Strengthened scientific leadership in Gum Health Sensitivity care.

Presented

two sessions at ‘EuroPerio 11’, attended by over 10,000 dental professionals,

around evidence-based care for dentine hypersensitivity and gingivitis.

Superior innovation

Enhanced Denture Care performance

, with the rollout of Poligrip Ultimate

‘All in One’ across Europe, US and Japan

8

. It offers 263% stronger hold

9

, our best

biting power

10

and clinically-proven comfort with 12-hour hold. The launch

achieved around 5% market share in Japan within seven months of launch

11

and

ranked as the #1 Denture Care innovation in the US

12

.

See page 47 for further information on performance

during the year.

2025 revenue

£3,461m

4.5%

growth

7.9%

organic growth

Our brands

The importance of Oral Health

According to the World Health

Organization (WHO), nearly half of the

world’s population is affected by oral

diseases or conditions, with cases

increasing by c.1 billion

1

over the past

30 years. Poor Oral Health not only leads

to discomfort and pain, it also increases

the risk of noncommunicable diseases

such as diabetes, obesity and

cardiovascular diseases. Oral Health

conditions are, in most cases,

preventable and treatable, if managed in

their early stages. Tooth sensitivity and

gum disease are widespread (each with

c.45–50% prevalence

2

), yet treatment

rates remain low, with for example only

around a third of consumers

2

using a

specialist toothpaste for each condition.

Our position

We focus on premium, specialist

Therapeutic Oral Health with broad

geographic presence. Haleon is the

global #1

3

in Sensitivity toothpaste

(with Sensodyne), #2

4

in Gum Health

toothpaste (with parodontax), and #1

3

in Denture Care (with Corega/

Polident/Poligrip).

Our categories

continued

Vitamins, Minerals &

Supplements (VMS)

Activity examples

Key growth driver and 2025 activities

Market

driver(s)

Innovation-led premiumisation

Continued our expansion across Asia-Pacific of our Centrum Daily Kits range,

a 30-day supply of tailored vitamins for gender and age needs. The range now

features added premium benefits including cellular health and metabolism

support, delivering the largest innovation for Centrum globally.

Expanding reach

Accelerated access to Centrum range for lower-income consumers,

via growth

of our Centrum Essential Benefit range of Multivitamin, Energy and Immunity

solutions. The range continued to attract new consumers to the category and

Centrum brand in Brazil.

Superior innovation

Launched Caltrate Kids Liquid

in China, with a patented Vitamin K2 formulation

for ten times better absorption, supported by key-opinion-leader content to

enhance education and build consumer trust in digital commerce.

Claims backed by evidence

Launched new, superior cognition claim for Centrum Silver

in the US, that

‘Taking Centrum Silver may slow cognitive ageing up to 60%’, amplified by digital

activation and influencer support.

Expert recommendation

Enhanced expert activation for Centrum.

Continued inviting experts globally,

and across the US and Southeast Asia, to ‘Think Again’ about Multivitamin

benefits. Over 85% of experts in the Philippines who took part stated that they

would be likely to recommend Centrum Multivitamin to their patients.

Meaningful and different brands

Expanded the Emergen-C brand in the US.

Launched a new master-brand

campaign, ‘So much more than Vitamin C!’, highlighting Emergen-C ingredients

beyond vitamin C (including B vitamins, zinc and electrolytes), driving share growth

in the market.

See page 47 for further information on performance

during the year.

2025 revenue

£1,685m

(0.6)%

growth

1.9%

organic growth

Our brands

The importance of VMS

Health and wellness is a top priority for

consumers, with particular interests in

need states such as nutrition, cognition,

longevity and weight management. Good

nutrition also serves as the foundation

for other health and wellness needs.

However, the majority of the global

population do not consume enough

micronutrients essential to health. Our

ambition is to enable consumers to take

control of their health and wellness with

trusted, science-backed supplements

that fill critical nutrient gaps.

Our position

Haleon is the #1 player in VMS globally

1

.

Our key brands include: Centrum – the

world’s leading Multivitamin

1

; Caltrate

– world leader in Calcium

1

; and

Emergen-C – world leader in Vitamin C

1

.

1.

Market drivers

Activity examples

Key growth driver and 2025 activities

Market

driver(s)

Geographic expansion

Expanded Voltaren 2% into China

.

Launched Voltaren 12-Hour Pain Relief Gel in

China, driving market share growth in Pain Relief in that market

2

.

Meaningful and differentiated brands

Launched a new campaign for Advil US.

‘No Pain, More Gain’, which went back to

the root strength of the brand, efficacy. It launched in July and delivered positive

share performance even in the first 12 weeks

3

.

Expert recommendation

Partnered with medical experts to advance the understanding of pain.

We

launched the Haleon Pain Management Institute (HPMI) in 15 countries across

the globe, in collaboration with local Health Professionals. This initiative reflects

Haleon’s commitment to accelerate the science and understanding of pain for

better pain management and outcomes.

Brilliant execution

Scaled Voltaren’s sponsorship approach.

Voltaren became the official licensed

pain killer of the UEFA Champions League, a first for Haleon, Voltaren and UEFA.

The campaign, designed to strengthen Voltaren’s relevance among younger, active

consumers, culminated at the final in Munich in May 2025 and was activated

across broad media channels, including in-store displays and an experiential zone

within the stadium.

Pain Relief

The importance of Pain Relief

Pain is a consistent and universal issue,

affecting over 90%

1

of the adult

population. Yet six in ten

1

people wait

before treating it, while only one in

three

1

 people seek relief from their pain

immediately. When we fail to manage

our pain, many aspects of our health

can suffer, for example we exercise less,

move less and struggle to sleep. The

social and emotional impacts of pain

continue to increase, with stigma and

social isolation arising from everyday

pain increasing worldwide

1

. We aim to

break down the barriers to seeking Pain

Relief, to support better everyday health

for everyone.

Our position

Our portfolio spans Systemic and Topical

sub-categories, with strong brands

including Voltaren, Panadol, Advil,

Excedrin, Fenbid and Grand-Pa.

1.

2.

3.

See page 47 for further information on performance

during the year.

2025 revenue

–%

growth

2.3%

organic growth

Our brands

Market drivers

Our categories

continued

Respiratory

Health

The importance of Respiratory Health

Respiratory Health is a key pillar of

everyday health, with the common

cold being one of the most common

infectious diseases

1

, having a high impact

on people’s quality of life and global

economies. Many consumers seek out

self-care options for common cold-

related symptoms, with 70%-80% of

sufferers feeling confident in treating

themselves for these conditions

2

, yet

over 40% do not utilise Over-the-

Counter (OTC) treatments

3

. Our ambition

is to close the incidence vs treatment gap

with our portfolio of trusted brands.

Our position

Our portfolio spans a range of Cough,

Cold and Allergy sub-categories, with

strong brands including Otrivin, Theraflu,

Flonase and Robitussin.

1.

Source: Harvard Health, 2023.

2.

Source: Global Self-Care Federation, 2024.

3.

Source: The Consumer Healthcare Association, 2023.

4.

Source: Haleon’s analysis of third-party data including IQVIA, Circana, Nielsen et al

(November 2025 year to date). Data set is based on Haleon global category standards.

Activity examples

Key growth driver and 2025 activities

Market

driver(s)

Innovation-led premiumisation

Continued the global expansion of our superior Otrivin Nasal Mist.

We

launched this in a further 10 countries in 2025, including in Italy, Norway and the

US. It was also launched under our Theraflu brand in the US

. The continued

roll-out drove global consumption growth in 2025 ahead of the market

.

Innovation-led premiumisation

Received industry recognition for Nasal Mist innovation.

Theraflu Nasal Mist

won the ‘Best in Show 2025’ Ameristar design award for its innovative side-

actuated spray – offering comfort, precision, accessibility and safety-compliant

packaging. It also recently won a WorldStar Global Packaging Award 2026 in

the US.

Meaningful and different brands

Theraflu strengthened demand power.

We continued Theraflu’s award-winning

‘Right to Rest and Recover’ multi-year initiative in the US and Poland, to champion

the right for workers to take time off when they fall sick. This consistently-lived

purpose helped build relevance with the consumer and strengthen Theraflu’s

brand demand power among those exposed to the campaign.

Health inclusivity and sustainability

Making our packaging more sustainable.

We are progressing with the transition

to using mass balance bio-based resins for the production of Otrivin nasal sprays,

which delivered incremental virgin petroleum-based plastic savings in 2025.

See page 47 for further information on performance

during the year.

2025 revenue

(11.7)%

growth

(1.9)%

organic growth

Our brands

Market drivers

Socioeconomic and geopolitical dynamics shifting

Consumer needs evolving

Channel landscape evolving

Regulatory dynamics changing

Annual Report and Form 20-F 2025

2025 revenue

£987m

(4.1)%

growth

0.5%

organic growth

Our brands

Digestive

Health

See page 47 for further information on performance

during the year.

Activity examples

Key growth driver and 2025 activities

Market

driver(s)

Delighting consumers

Grew Tums’ household penetration.

In the US, expansion of a new format

(Chewy Bites) and retail exclusive flavours, supported by digital commerce

acceleration, attracted new, young consumers to the category and lowered

barriers to treatment.

Innovation-led premiumisation

Expanded Benefiber to new consumers for proactive digestive wellness.

Benefiber Prebiotic Fiber + Supergreens targets GLP-1 users, to help close the fibre

gap related to low-calorie diets and support energy levels. Activation included an

influencer programme designed to engage GLP-1 consumers, complemented by

in-store activations across key retailers.

Meaningful and different brands

Drove growth with a new Benefiber campaign.

Successfully launched a new

master-brand communication for the Benefiber brand, ‘Grow what feels good’,

reinforcing proactive gut health through fibre. It helped drive Benefiber growth at

more than twice the rate of growth of the Fibre category.

Innovation-led premiumisation

Continued to grow ENO ‘3 in 1’ in India, gaining significant share.

Launched in

2024, it combines the trusted relief of ENO, as India’s #1 Antacid Immediate Relief

brand

3

, with natural ingredients – cumin, carom seeds and black salt. It provides a

one-stop solution, for fast and effective relief to treat multiple symptoms (acidity,

gas and indigestion).

Expanding reach

Improved access to Digestive Health in Brazil with a new, convenient and

affordable format

. Continued the expansion of Digestive Health products in

Brazil with ENOMAGNO stick pack format, a new brand tailored for the

Magnesium Hydroxide liquid range. It offers the same product in a convenient,

single-dose, on-the-go format, with lower out-of-pocket vs the regular format

(bottles). ENOMAGNO stick pack drove market share gains

4

in the liquid segment,

with more than 80% of stick-pack consumers being new to the category.

The importance of Digestive Health

Digestive Health issues affect a large

proportion of the global population.

For example, over 60% of adults in the

US experience digestive health issues.

A healthy digestive system ensures that

the body effectively absorbs nutrients,

vitamins and minerals from food, which

are essential for maintaining energy

levels, supporting immune function and

promoting overall health. The Digestive

Health category includes proactive

solutions that complement the VMS

category, such as fibre, as well as

reactive treatments, like antacids and

laxatives. There is growing consumer

demand for Digestive Health solutions,

driven by increased awareness of the

importance of gut health, as well as

the increase in GLP-1 use

1

.

Our position

Haleon is the #1

2

manufacturer in the

global Digestive Health category, driven

by our leading position in Antacids.

We have a focused geographic presence

in Digestive Health across key markets –

US, India and Brazil (representing c.85%

2

of sales) – underpinned by brands such

as Tums, ENO and Benefiber.

1.

2.

3.

4.

Market drivers

2025 revenue

£460m

(9.8)%

growth

2.0%

organic growth

Our brands

Therapeutic

Skin Health

& Other

See page 47 for further information on performance

during the year.

The importance of Therapeutic

Skin Health & Other

In 2021, skin and sub-cutaneous

diseases affected 25% of the population,

up by over 35% since 1990, contributed

to by lifestyle, environmental and climate

change factors. They disproportionately

affect women, children, older adults and

disadvantaged groups, often leading to

stigma and discrimination. However,

awareness remains low – both among

Health Providers and the general public.

In 2025, WHO Member States adopted

a resolution to recognise skin diseases

as a global health priority

1

. Our aim is

to help consumers better manage

their conditions, to deliver better

everyday health.

Our position

Our Therapeutic Skin Health & Other

brands consist of key brands such as:

Zovirax/Abreva – the global leader in

Cold Sore treatments; Bactroban – the

leading Wound-Healing brand in China;

and Fenistil – the top Anti-Itch solution

in EMEA & LATAM. Outside of

Therapeutic Skin Health brands,

our key ‘Other’ brand is Eroxon.

1.

Source: World Health Organization, 2025.

2.

Source: IQVIA, OTC consumption report, July-September 2025, topline L1M data showing

11% market share and #2 position in September 2025.

3.

Source: IQVIA OTC consumption report, L6M Oct 2026.

Activity examples

Key growth driver and 2025 activities

Market

driver(s)

Closing the incidence vs treatment gap

Further expanded the Bactroban brand beyond antibacterial ointment in

China.

Bactroban launched Adapalene Gel in 2024, as an acne treatment for face,

chest and back, and has already achieved the number two position in the acne

market in China

.

Expert recommendation

Advanced Bactroban leadership in China county areas via a treatment and

education campaign.

Bactroban engaged dermatologists in providing free mobile

dermatology clinics and educational events, delivering healthcare and wellbeing

to consumers’ doorsteps via county hospitals. The initiative also included training

sessions for dermatologists on various skin conditions. This helped strengthen

consumer and expert awareness, and Bactroban’s number one position in wound

healing in the county

.

Claims backed by evidence

Leveraged expert-led communication to drive growth of Abreva,

with the

launch of a new digital campaign in the US. The campaign featured a board-

certified dermatologist as the brand spokesperson. It was centred around the

claim, ’5 in 1 multi-symptom cold sore relief’, to support consumers with faster

healing and relief from pain, burning, itching and tingling.

Market drivers

Socioeconomic and geopolitical dynamics shifting

Consumer needs evolving

Channel landscape evolving

Regulatory dynamics changing

continued

Annual Report and Form 20-F 2025

Our approach to health inclusivity and sustainability

Health inclusivity

and sustainability

Our goals

2025

performance

1

2024

performance

1

We aim to empower millions of people a year

to be more included in opportunities for

better everyday health, empowering

50 million people a year by 2025

2

.

74m+

50m+

We aim to reduce our net Scope 1 and 2

carbon emissions by 100% by 2030 vs a 2020

baseline

3

.

(55)%

*

(50)%

We aim to reduce our Scope 3 carbon

emissions from source to sale by 42% by 2030

vs a 2022 baseline

3

.

(13)%

(9)%

4

We aim to reduce our use of virgin

petroleum-based plastic by 10% by 2025,

and a third by 2030 vs a 2022 baseline

2,5

.

(9)%

*

(1)%

We aim to develop solutions for all product

packaging to be recycle-ready by 2025 and

recyclable or reusable by 2030, where safety,

quality and regulations permit

2,5,6,7

.

80%

*

79%

8

We aim for all key agricultural, forest and

marine-derived materials used in our

ingredients and packaging to be sustainably

sourced and deforestation-free by 2030

9

.

90%

81%

We aim to achieve TRUE certification

10

at all

our manufacturing sites by 2030

11

.

11/24

5/24

We aim to achieve Alliance for Water

Stewardship (AWS) standard certification at

all our manufacturing sites by 2025

11

.

24/24

12/24

We aim to achieve gender parity in leadership

roles by 2030

12

.

46.3%

44.6%

The reporting periods for Scope 1 and 2 carbon emissions (market-based) and health inclusivity are 1 December (in the prior year) to 30 November (in the year stated). The annual reporting periods for Scope 3 emissions, plastic, packaging and sustainable

sourcing are 1 July (in the prior year) to 30 June (in the year stated). The annual reporting periods for TRUE (Total Resource Use and Efficiency) certification, AWS certification and the baseline comparison years are calendar year. Gender representation is as at

31 December in the year stated on the basis of an average as at the end of each quarter.

The end point for the 2025 goal is the end of the 2025 calendar year.

Scope 1 and 2 emissions performance reflects market-based emissions under Haleon’s

operational control. Carbon offsets were used to reduce 11% of our location-based Scope 1 and 2 emissions in 2025. Our Scope 1 & 2 goal is underpinned by a 95% absolute reduction target. Scope 3 estimated emissions includes all indirect emissions from

Haleon’s value chain and all GHG Protocol categories except 6, 7 and 10-15.

The 2024 Scope 3 result and 2022 baseline differ from the value (2024: (10)%) in the 2024 Annual Report and Form 20-F due to methodology and data improvements, including

updated emission factors and granular data for products made at third-party manufacturers. While the change in the Scope 3 result is not material, the change in split of emissions across the GHG protocol categories is material. The restated Scope 3 result

better reflects the drivers of our footprint and where we are focusing our actions.

Scope of our estimated packaging footprint includes product packaging and some devices, including toothbrushes.

The stated performance is against the 2025 recycle-ready

goal only.

 The reported result against the recycle-ready goal does not exclude packaging where there is not a recycle-ready solution that meets stringent safety, quality and regulatory requirements for healthcare packaging.

The 2024 result differs from the

value, 74%, disclosed in the 2024 Annual Report and Form 20-F due to packaging data improvements at internal sites and inclusion of granular data for products made at third-party manufacturers.

Scope includes Haleon’s globally managed spend on key

materials which are agricultural, forestry or marine-derived. Globally managed spend covers the majority of our internal spend and expands across some of our third-party manufacturing network.

TRUE, is a recognised zero-waste certification programme.

Haleon has 25 manufacturing sites. The increase from 24 sites last year is due to the Company now treating its two sites in Suzhou, China as separate sites for operational purposes. 24 of our 25 manufacturing sites are included in our AWS and TRUE

certification goals. Maidenhead is excluded as it ceased manufacturing operations towards the end of 2025.

Gender parity is defined as between 48-52%. Since 2025, this metric does not include the US and Puerto Rico. The 2024 result has also been

updated to exclude these, hence the 2024 result shown differs from the value of 45.2% disclosed in the 2024 Annual Report and Form 20-F and the 2024 Responsible Business Report. Percentage indicates the percentage of female permanent employees.

KPMG LLP has issued independent limited assurance over the selected data indicated using assurance standards ISAE(UK) 3000 and ISAE3410. KPMG LLP’s limited assurance conclusion is available at

/our-impact/esg-reporting-hub.

In 2025, we refreshed our Health Inclusivity and

Sustainability strategy, putting improving health

inclusivity at the centre, reflecting where we

believe we can have the most impact.

Our purpose is to deliver better everyday health with

humanity. But today too many people are held back from

this due to lack of knowledge, access to affordable care

and bias and prejudice. Changes to the environment are

also impacting people’s health, with the most vulnerable

hit first and hardest. That is why improving health

inclusivity is central to our strategy. By building health

literacy, increasing access to everyday-health products,

tackling bias and prejudice, and providing solutions to

help people manage the impact of environmental

changes, we can help millions of people take more

control of their everyday health. Because we know when

people have the knowledge, tools and confidence to

care for their health, it strengthens families, communities

and health systems.

We also recognise that our long-term success is

dependent on the health of people, the natural world

and the shared resources we all rely on. That is why we

are focused on reducing our environmental footprint and

operating with enduring resilience across our value chain.

We do this by: cutting carbon emissions, making our

packaging more sustainable, managing natural resources

responsibly and by supporting our people and partners.

Through these actions we can help people achieve

better everyday health today and tomorrow, while

mitigating risks and generating industry-leading returns

for our shareholders.

All of this is anchored on upholding robust ethical

standards: from operating responsibly, embedding high

quality and safety standards to protecting human rights.

These standards guide our actions and safeguard the

trust that underpins our brands.

These priority areas are the focus of our refreshed

Health Inclusivity and Sustainability strategic framework

and were confirmed by the results of our updated

Double Materiality Assessment, taking account of the

requirements of the EU Corporate Sustainability

Reporting Directive (CSRD) and the European Sustainability

Reporting Standards (ESRS) (enacted prior to 2025) in

preparation for potential future reporting by the Group

and/or by our companies.

Annual Report and Form 20-F 2025

Strategic

Report

Other

Information

Parent Company

Financial Statements

Consolidated

Financial Statements

Corporate

Governance

Our approach to health inclusivity and sustainability

continued

For health inclusivity…

When people are enabled to take better

care of their everyday health it shapes

how they feel and their quality of life –

today, and into the future. Yet we

recognise and understand the social

and environmental challenges that still

hold many back from achieving better

everyday health.

That is why improving health inclusivity

is central to our sustainability strategy

and reflected in an updated goal

and ambition:

By 2030, we aim to provide

opportunities for over

300 million people a year

to take more control

of their everyday health.

We are making this happen by:

—

Building health literacy,

because

knowledge and confidence changes

behaviour. We are equipping people

with the information and resources

they need to take more control of

their health.

—

Increasing access to everyday

health products,

because everyday

health should be within everyone’s

reach. We are making more affordable

and accessible versions of our

products available to more people.

—

Tackling bias and prejudice,

because

everyone deserves to be seen, heard

and treated fairly. We are challenging

negative stereotypes which hold

people back from better everyday

health.

In 2024, a year ahead of schedule,

we reached our target of empowering

50 million people a year to be more

included in opportunities for better

everyday health.

In our 2025 reporting period, we

empowered more than 74 million people

to be more included in opportunities

for everyday health, by focusing on:

Building health literacy

We invested in deepening the breadth,

quality and reach of content on the

Haleon Health Partner Portal (HHP). One

of the year’s most important additions

was the integration of The Haleon Pain

Management Institute (HPMI) resources.

These materials, shaped by new market

insights, are designed to help Health

Professionals recognise and address

*

KPMG LLP has issued

independent limited

assurance over the

selected data

indicated using

assurance standard

ISAE(UK) 3000.

disparities in pain awareness, treatment

access and patient confidence. In 2025,

we continued to provide resources to

help Health Professionals build their

patients’ knowledge and confidence

in how to manage everyday health

conditions through webinars and

downloadable resources. Content

includes deeper condition specific

education, new resources for

pharmacists, dentists and doctors, and

expanded training materials addressing

bias and prejudice, including on the

‘#ListenToPain’ initiative. In our 2025

reporting year, Health Professionals

engaging with content on the portal

went on to empower over 52 million*

people globally.

Our Health Inclusivity and Sustainability strategic framework

‘In our 2025 reporting

period, we empowered

more than 74 million

people to be more

included in opportunities

for better everyday

health.’

For health

inclusivity...

With enduring

resilience...

Deliver better everyday health with humanity

Upholding robust ethical standards

Annual Report and Form 20-F 2025

Increasing access to everyday

health products

We are committed to making it easier

for consumers on low-incomes to access

the healthcare products they need – for

example, the more accessible version

of our Sensodyne toothpaste in India,

where we offer a smaller pack size priced

at 20 rupees, to make it much more

accessible to lower income consumers,

many of whom are daily-wage earners.

By offering this more accessible version

and extending distribution, we have

more than doubled our reach in small

towns and villages across India.

We are also expanding our reach in key

markets. Working in collaboration with

dental colleges and Health Professionals

across India, ‘Project Amplify’ expands

access to essential oral health services.

Since launch, the programme has

supported free dental evaluation at over

800 clinics nationwide, ensuring

individuals receive not only check-ups

but also practical, personalised advice to

manage daily hygiene habits. To reach

people beyond clinic walls, we

introduced a QR-based code, to facilitate

at-home oral health checks. This simple

digital tool allows individuals to assess

their oral health using their mobile

phones, broadening engagement and

removing barriers to care. Since 2023,

‘Project Amplify’ has empowered more

than 600,000 people to improve their

oral health through accessible,

community-centred support. The

programme continues to grow year on

year, reaching 330,000 individuals in our

2025 reporting year.

We will report on the increasing access

to everyday healthcare products’

component of our updated 2030 Health

Inclusivity goal from 2026.

Tackling bias and prejudice

In the US, we continued to scale

Theraflu’s ‘Right to Rest and Recover’

campaign which advocates for

nationwide paid sick leave and helps

citizens better understand their rights.

Since 2021, the programme has provided

over $1 million in micro grants to help

people who could not otherwise afford

to do so take a day off to recover from

everyday illness. In 2025, the programme

helped more than 10 million*

1

adults

living in the US to feel better informed

about their rights to paid sick leave with

many already acting on the information

provided by the campaign or intending to

act differently when they next fall sick.

…With enduring resilience

Cutting carbon emissions

Scope 1 and 2

In our 2025 reporting period, we

achieved a 55%* reduction in net Scope 1

and 2 carbon emissions compared to our

2020 baseline, exceeding the PSP target

of a 48% reduction, see page 95, and

maintained 100% renewable electricity

across our operations*. In line with our

SBTi target, almost a quarter of our 25

manufacturing sites

2

have now reduced

their market-based Scope 1 and 2

emissions by at least 95%

3

, compared to

2020. We continue to reduce our use of

offsets, aiming to limit their use to ≤5%

by 2030. We reduced the use of offsets

from 14% of gross Scope 1 and 2

location-based emissions in our 2024

reporting period, to 11% in our 2025

reporting period.

In 2025 we invested more than

£12 million in energy efficiency and

carbon reduction projects. Progress

includes the installation of an electric

steam generator at our Kuala Lumpur site

in Malaysia and one at our Nairobi site

in Kenya, and installation of new electric

heat pumps at both Suzhou sites

in China.

Scope 3

In our 2025 reporting period, Scope 3

emissions from source to sale decreased

by 13% from the 2022 baseline, showing

continued progress towards our

SBTi-validated target to reduce Scope 3

emissions, source to sale, by 42% by

2030. As part of this decrease, upstream

transport and distribution emissions

reduced by 31% versus 2022, primarily

due to a reduction in the use of air

freight. Purchased goods and services

remain the main driver of our Scope 3

emissions overall.

In March 2025, we organised a

Sustainability Forum, with over 320

supplier representatives attending. This

event provided a platform for shared

learning and dialogue on sustainability

challenges and opportunities across our

supply network. To further support

supplier capability, we have delivered

a series of targeted training modules.

*

KPMG LLP has issued

independent limited

assurance over the

selected data

indicated using

assurance standards

ISAE(UK) 3000 and

ISAE3410.

1.

Internal Haleon study,

supported by

Edelman.

2.

Haleon has 25

manufacturing sites.

The increase from

24 sites last year is

due to the Company

now treating its two

sites in Suzhou, China

as separate sites for

operational purposes.

3.

Excludes emissions

from refrigerants and

company vehicle

mileage.

4.

Based on actual

results as of 30

September 2025,

already surpassing the

target of (10)% by end

of 2025. Reporting

period is 1 July 2024

to 30 June 2025.

These sessions have addressed key

topics including energy efficiency,

energy management, decarbonising

industrial heat processes and

cascading decarbonisation efforts

through additional tiers of the

supply chain.

To improve the granularity of our

Scope 3 emissions reporting, we

updated methodologies, enhanced

our data quality, and updated emission

factors, switching to supplier specific

product carbon footprints where

possible. To enable us to clearly

communicate the impact of improved

data we have restated our 2024 result

from (10)% to (9)% and our 2022

baseline (see page 15).

Making packaging more sustainable

We have made good progress

against our virgin petroleum-based

plastic goal, reaching a (9)%* reduction

in our reporting period up to the

end of June 2025, and exceeded our

goal to reduce our use of virgin plastic

by 10% by the end of the 2025

calendar year

4

. This reduction is being

delivered through the continued

rollout of initiatives which replace

virgin plastic with alternatives including

recycled plastic, bioplastic and

cellulose or paper based packaging.

We exceeded our goal to reduce our use of

virgin plastic by 10% at the end of the 2025

calendar year.

17

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Governance

This includes the roll out of toothpaste

tube caps made using bioplastics in

several markets, and the increased use of

bottles made using recycled plastic or

bioplastic in our OTC, VMS and Digestive

Health bottles.

We have met our 2025 goal to develop

solutions for all product packaging to

be recycle-ready where safety, quality

and regulations permit in line with our

2025 external goal and PSP target

(see page 95) – reaching 80%* across

our product portfolio in the reporting

period. This was driven by the continued

global roll out of recycle-ready

toothpaste tubes, and the continued

conversion of our bottle portfolio –

including most mouthwash bottles –

to recycle-ready packaging. For the

remaining 20% of our product packaging,

we expect progress on recycle-ready

to increase only marginally going

forward, due to limited to no availability

of recycle-ready solutions in the near

future which meet the stringent safety,

quality and regulatory requirements for

healthcare packaging.

During 2026, we will revisit our 2030

goal to make all packaging recyclable

or reusable, where safety, quality,

regulations permit, to align with the

latest industry developments, including

the Ellen MacArthur Foundation 2030

plastics agenda for business and the

EU Packaging and Packaging Waste

Regulation.

Managing natural resources

responsibly

Sourcing trusted ingredients

sustainably

We are making continued progress

towards our goal for all key agricultural,

forest and marine-derived materials used

in our ingredients and packaging, to be

sustainably sourced and deforestation-

free by 2030

1

.

We increased our percentage of

sustainably-sourced key materials to 90%

in the 2025 reporting period, primarily

driven by an increase in certified

deforestation-free paper as well as

an increase in sustainably-sourced corn

and wheat derivatives enabled by

improved supplier data and evidence.

We strengthened our performance on

sustainably-sourced palm oil derivatives

to 94% and paper to 82%.

These results reflect our current

definition of ‘deforestation free’ (as

available in our 2025 Health Inclusivity

and Sustainability Basis of Reporting).

We will continue to monitor external

developments and update our

definitions in line with evolving

regulation and industry standards.

Since launch in 2023, our ‘Healthy Mint

Supply Chain’ programme in Uttar

Pradesh, India, has enrolled over

10,000 farmers across the state. Large

gains in yields have been reported by

farmers adopting improved planting

techniques, utilising new mint varieties

and those trialling new technologies,

including the use of drones to spray

controlled measures of fertilisers,

reducing their use.

Integrating water stewardship

and waste circularity

In 2025, we reached our goal of

achieving Alliance for Water Stewardship

(AWS) core certification across all our

manufacturing sites. We will continue

to monitor and track compliance with

AWS standards.

We are now focusing beyond our own

manufacturing sites to the wider water

context, taking a long-term view to

protect business continuity and help

ensure that supply chains are resilient

to climate-related impacts. To do this,

we are engaging key suppliers and

third party manufacturers in water

stressed areas

2

, in understanding

and managing their water impacts.

We are also working to identify

programmes and collaborations at basin

level, to enable our eight sites located in

water-stressed areas to become water

neutral by 2030. Our Cape Town site

achieved water neutrality in 2023, and

our site in Nairobi, Kenya is starting a

programme in 2026 to become water

neutral.

We are introducing measures at our

manufacturing sites to increase waste

circularity through the TRUE (Total

Resource Use and Efficiency) certification

system. Six of our sites have achieved

TRUE waste certification this year,

bringing the total certified to 11 out

of 24.

Our approach to health inclusivity and sustainability

continued

*

KPMG LLP has issued

independent limited

assurance over the

selected data

indicated using

assurance standards

ISAE(UK) 3000 and

ISAE3410.

1.

Scope includes

Haleon’s globally

managed spend on

key materials which

are agricultural,

forestry or

marine-derived.

Globally managed

spend covers the

majority of our internal

spend and expands

across some of our

third-party

manufacturing

network.

2.

Determined using

publicly available

tools to identify water

risk, such as the WRI

Aqueduct Tool,

site-specific reviews

of local water risk

using local data, and

materiality of the risk

to the business.

Discover

more…

Empowering and

supporting people

Please see page

35–39 of this report

and our 2025 Health

Inclusivity and

Sustainability report.

Upholding robust

ethical standards

Please see page 38

of this report and

our 2025 Health

Inclusivity and

Sustainability report.

Annual Report and Form 20-F 2025

Improving health inclusivity while

operating sustainably and responsibly

is a strategic imperative for Haleon.

We are transforming how we work to

build resilience across our value chain

and reduce our environmental

footprint.

We rely on fully-functioning operations

and supply chains to make and sell our

products, as well as key agricultural,

forestry and marine-derived materials

from our upstream supply chain to

make our products and packaging.

As a result, we assess and manage the

environmental risks and opportunities

associated with matters including climate

change and nature loss, which could

have a financial impact on our business

and our long-term success.

Compliance statement

In accordance with the FCA’s UK Listing

Rule 6.6.6R(8), the Companies Act 2006

s.414CB(A1) and (2A) and the SEC’s

Guidance Regarding Disclosure Related

to Climate Change (2010), we present our

Task Force on Climate-related Financial

Disclosures (TCFD) compliance statement

and confirm that we have made

climate-related financial disclosures

for the year ended 31 December 2025

which are consistent with the TCFD

recommendations and recommended

disclosures, on pages 202 and 203.

Last year we committed to early

adoption of the Taskforce on Nature-

related Financial Disclosures (TNFD)

recommendations and guidance.

Acknowledging this is a journey, in our

first disclosures we report our progress

against the TNFD framework following

our enterprise-wide nature LEAP

(Locate, Evaluate, Assess and Prepare)

assessment completed in 2025.

Prompted by TNFD, this exercise helps

us to understand our dependencies,

impacts, risks and opportunities related

to nature. We will continue to use the

findings to guide our strategy and

decision-making moving forward.

Please see pages 202 and 203 in the

appendix of this document for the full

climate-related and nature-disclosures

content mapping index.

Governance

Governance over climate and nature-

related risks and opportunities is

consistent with the governance

structures in place across Haleon –

comprising of the Board, Board

committees, executive and management-

level governance committees, and

specialist working groups across the

business.

The Board takes overall accountability

for risk and opportunity management,

including climate change and nature

(page 65). The Board delegates specific

matters related to climate change and

nature to committees, as detailed in the

Board Committee reports on pages 70

to 80. Key board activities, outcomes of

discussion and decisions are described

on pages 65 and 74 .

— The Environmental & Social

Sustainability (ESS) Committee

oversees the development and

execution of the group’s health

inclusivity and sustainability strategy,

including targets and KPIs related to

climate and nature which track our

performance. The details of the key

responsibilities, committee activities

and focus areas in 2025 are set out

on page 74 and the membership and

meetings are described on page 64

In 2023, 2024 and 2025, the ESS

Committee conducted deep dive

sessions covering the evaluation

of our environmental and social

sustainability strategy, TCFD, climate

transition plans and the impacts of

nature and biodiversity loss.

— The Audit & Risk Committee oversees

our principal risks, including the

principal risk related to ESG, which

covers climate change and nature

(see page 70).

— The Remuneration Committee

supports our climate strategy by

aligning the Performance Share Plan

with ESG performance via the ESG

qualifier. Executive remuneration is

tied to specific health inclusivity and

sustainability-related KPIs. For the

year ended 2025, this included

climate-related objectives (see page

78 to 80).

— The Chief Executive Officer and the

Executive Team are responsible for the

delivery of our health inclusivity and

sustainability strategy, and they are

supported by various governance

forums, including for the management

of climate and nature-related risks and

opportunities.

— The Environment Steering Committee

governs progress against Haleon’s

environment strategy and

commitments, including climate

change and nature commitments. The

Committee meets at least quarterly

and makes strategic recommendations

on managing our environmental

footprint for approval by the Executive

Team and the Board. It also monitors

climate-related risks, opportunities

and regulations. It is chaired by the

Vice President of Sustainability, and

Executive Team members include the

Chief Corporate Affairs Officer the

Chief Supply Chain Officer and the

Chief R&D Officer. Information on

strategy, performance and risks flows

to the Executive Team and then the

Board committees via participation

of the Chief Corporate Affairs Officer,

the Sustainability VP and the ESG

Programme and Reporting Director.

— The Executive Team Risk Forum (Risk

Forum) oversees management of

principal risks, helping ensure they

are managed effectively. This includes

the ESG principal risk (see page 55).

Number of meetings and key roles are

detailed on page 52. In May 2025, the

Risk Forum reviewed the ESG principal

risk, which is owned by the Chief

Corporate Affairs Officer and

monitored via our risk management

framework (see page 50).

— Compliance and Risk Forums (CRF) are

conducted by our functional teams,

categories, and business units, to

embed risk management in day-to-day

business operations. Details about the

Sustainability CRF can be found in the

risk management section (see

page 20).

— Working groups in our global

functions, global categories and

business units integrate health

inclusivity and sustainability targets,

principles and initiatives (including

those related to climate change and

nature) into Haleon’s strategy and

planning process, capital planning and

budgeting, day-to-day responsibilities

and metric management.

Climate and nature-related

financial disclosures

Discover

more…

Climate Action

Transition Plan

19

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Strategy and risk

management

The process for identifying, assessing

and managing climate and nature-related

risks is consistent with Haleon’s four-step

enterprise risk management process as

outlined on page 50. This helps ensure

that accountability for the identification,

assessment, mitigation and monitoring

of risks is aligned with our strategic

objectives.

Our approach to managing climate and

nature risks is outlined in the Governance

section.

The Sustainability CRF leads the

environmental (including climate and

nature), social risk identification

and assessment process, which is

conducted on an ongoing basis. Risks

are assessed and prioritised by taking

into consideration the likely impact

(considering both financial and

reputation impacts), the probability of

the risk and the controls that are in place

to manage the risk, in line with Haleon’s

risk management framework outlined on

page 50. This helps to identify those risks

and controls where management should

focus its effort. The Sustainability CRF

met six times in 2025 and includes the

Vice President of Sustainability and

members of the Sustainability team.

Continuous evaluation and management

of risk is embedded in our strategy to

enable an appropriate, measured and

timely response. Risk owners are

assigned to the risks (including climate,

nature and social risks) and continually

monitor and assess each risk.

A combination of internal knowledge

and external factors, such as horizon

scanning, legal and regulatory

developments, and emerging

environmental and nature science, are

considered to determine whether to

mitigate, transfer or accept the risks.

In some cases, it may be deemed

appropriate to transfer the risk, for

example by discharging costs or liability

to another party in our value chain. Part

of the risk assessment process is also

acceptance: establishing a level of

comfort with the risk, considering our

existing control strategies, and assessing

whether they are currently sufficient.

The most significant climate and

nature-related risks and opportunities

are described in detail in this section

along with our plans to manage them.

These are considered to have the most

significant impact on our business,

strategy and financial planning. However,

we do not anticipate the need for further

significant changes to our strategy to

respond to these risks, and action plans

are in place to manage them. Risk and

mitigation plans undergo a formal review

at least once a year.

Both the TCFD and TNFD exercises

informed our Double Materiality

Assessment, which was conducted

taking into account the requirements

of the EU Corporate Sustainability

Reporting Directive (CSRD) and European

Sustainability Reporting Standards (ESRS)

(enacted prior to 2025) in preparation for

potential future reporting by the Group

and/or by our companies (see pages 5

and 6 of our Health Inclusivity and

Sustainability Report for more

information). For further details read

our Climate Action Transition Plan.

Metrics and targets

We include climate and nature-related

metrics and targets as part of our overall

health inclusivity and sustainability

strategy. See page 15 for more details

on our targets and performance, and

our 2025 Health Inclusivity and

Sustainability Report, page 4 for further

information. Data for years prior to 2024

are available on our ESG Reporting Hub.

We continue our journey to better

manage climate risks, and in 2024

implemented a new internal metric to

monitor the percentage of sales

generated by our own sites at high risk

of extreme weather events, which we

continue to monitor. Our Scope 1, 2 and 3

emissions are set out in line with the UK

Government’s guidance on Streamlined

Energy and Carbon Reporting (SECR)

(see pages 177 and 178) and built into our

ESG qualifier as described on page 96.

Climate impacts, risks and

opportunities

Our resilience to climate change

As outlined in the risks on pages 22 to

26, the quantitative scenario analysis

indicates that our business is not at high

risk of facing significant financial impacts

from climate-related risks in the short

term. Any climate-related risks with a

medium-risk financial impact are either

projected to occur in the long term or are

being addressed through our mitigating

actions. As a result, we do not anticipate

the need for major, further changes to

our strategy to respond to these risks.

In the medium and long term, we need

to consider transition risks. The transition

to a low-carbon economy could have

financial implications for Haleon, as

consumer preferences shift towards

sustainable products, potentially

impacting our market share and brand

reputation. Additionally, increased

carbon taxes on emissions across our

operations and supply chain could also

have financial impacts. However, these

risks can be mitigated if we achieve our

carbon reduction targets for emissions

across all scopes. We have already

conducted life-cycle assessments for

11 key product types to better

understand and mitigate the risks

associated with their life-cycle stages.

You can read more in our Climate Action

Transition Plan.

In the long term, we need to be aware

of the impacts of physical risks. Our key

facilities could be affected by flooding

and heatwaves, leading to disruption

and damage. Our Oral Health product

line could also be impacted by

disruptions in the supply of agricultural

raw materials, which are at a higher risk

of yield impact due to long-term climate

change. While we already have a resilient

sourcing strategy for these key crops,

which includes working with mint farmers

in India to improve the sustainability

of production, we need to continue

monitoring the situation.

As climate change continues, there is an

opportunity from increased demand for

consumer health products as a result of

the increasing frequency, severity and

prevalence of several everyday health

conditions which we provide solutions

for. Examples include the allergy season

becoming longer and more intense,

higher prevalence of vector-borne

diseases such as malaria with a related

need to treat fever symptoms and more

prevalent and severe headache, migraine

and joint pain driven by extreme weather.

The transition to a low-carbon economy

also presents an opportunity for us, as

consumer preferences shift towards

more sustainable products. To capitalise

on this opportunity, we need to continue

to improve the sustainability of our

products and make consumers aware of

these changes through effective claims

and consumer messaging.

Climate and nature-related financial disclosures

continued

20

Haleon

Annual Report and Form 20-F 2025

Warming trajectory by 2100

Climate scenarios

Rationale behind climate scenario analysis selection

1.5°C

Paris Ambition:

Rapid transition to a

low-carbon economy with orderly

emissions reductions and rapid

consumer preference change.

Enables us to test our business strategy against the most optimistic scenario from a climate-transition perspective.

Aligns with our target to be a net zero business from source to sale by 2040, aligned to guidance from The Climate

Pledge and Race to Zero.

Aligns with TCFD and IPCC

1

recommendations to include a 2°C or lower scenario, with a 1.5°C scenario recommended

as the ‘2°C or lower', aligning with the latest scientific research from the IPCC.

This scenario represents the ‘worst case' / highest potential for transition risk for our business.

>4°C

No Policy:

Reversal of emissions

reductions and abolishment of climate

policy leading to extreme warming.

Enables us to test business strategy against the worst-case scenario from a physical risk perspective.

This scenario was used in our qualitative analysis in 2022.

1.

We used the IPCC Representative Concentration Pathways (RCPs) to assess physical climate risk. RCPs are commonly used by climate scientists to assess physical climate risk, with each pathway representing a different GHG

concentration trajectory which can then be translated into global warming impacts. We used climate data from the World Climate Research Programmes Coupled Model Intercomparison Project – Phase 6 (CMIP 6 – adjusted for

spatial resolution and bias corrected) to do this translation. RCPs feed into climate, crop and flood models. There are four RCP pathways with RCP8.5 representing the worst case scenario.

Climate-related scenario analysis

Climate-related scenario analysis is

used to assess the potential impact of

climate-related risks and opportunities.

In 2022, we performed our first

qualitative analysis which we refreshed

in 2023, both qualitatively and

quantitatively, to assess the risks and

opportunities in greater detail and

understand the impact of climate change

on our existing business model. The

insights derived from this analysis remain

robust and relevant. The results have

been used to inform our strategy and

financial planning, including updates

to our underlying cash flows for our

planned actions to meet our climate

ambitions. We will update our scenario

analysis in 2026.

We worked with a climate risk analytics

company, Risilience, to quantify the

potential financial impact of our physical

and transition climate risks and

opportunities. Risilience used a “Digital

Twin”, which is a data-driven digital

representation of our business and value

chain. This used internal data from our

business including current and approved

financial projections, market breakdown,

key facilities, raw materials and our GHG

footprint, to stress-test and quantify the

potential financial impact of climate risks

and opportunities under different

scenarios.

The climate scenarios used as part of

the analysis are outlined below. We also

modelled a 2.5ºC-warming trajectory but

we are not disclosing it here as we are

only disclosing the results with the

highest potential impact.

A number of assumptions were made in

carrying out the analysis:

— Current mitigating actions were not

modelled for any of the scenarios.

— All scenarios were modelled

independently, i.e. no correlation was

assumed between different risks and

opportunities.

— Investment costs required to realise

opportunities were not considered.

While many scenario models and

techniques are advanced, we recognise

that knowledge in this area is growing,

and we expect models and pathways

to evolve with time. Models also have

limitations, and there are certain areas

which are challenging to model.

Additionally, in certain situations,

different models can project contrasting

results. In these situations, we have

considered how different outcomes

would impact our businesses.

Impact of climate-related risks

and opportunities, and resilience

of our strategy

In 2023, we updated the time horizons

used to consider the impact of climate

risks and opportunities. The length

of the time horizons was reduced to

allow greater alignment to modelling

capabilities for quantitative scenario

analysis, and to reduce the risk of

modelling uncertainties associated

with using time horizons beyond 2050.

This provides more accurate results

compared to using longer time horizons

and aligns with our business risk cycles,

allowing us to use the analysis for

strategic decision-making.

We define short, medium and long-term

horizons for climate-related risk

purposes as follows:

—

Short-term (0-4 years):

aligns to

our financial planning and risk

management framework.

—

Medium-term (5-9 years):

aligns to

our interim Scopes 1, 2 and 3 emissions

reduction targets for 2030.

—

Long-term (10+ years):

aligns to our

net zero target for 2040 and the UK

Government's net zero target for 2050.

Annual Report and Form 20-F 2025

Strategic

Report

Other

Information

Parent Company

Financial Statements

Consolidated

Financial Statements

Corporate

Governance

Physical climate-related risks

Climate risk

Impact analysis

Management of risk

Impact of extreme weather events

on operations and supply chain

The revenue and cost impact of damage

and disruption to key facilities from the

following climate hazards: riverine, coastal

and flash flooding, heatwaves, water

stress, and temperate and tropical

windstorms.

Potential impacts included in our Paris Ambition (1.5°C) and No Policy (4°C)

scenario analysis included:

—

Revenue disruption from the interruption of supply of electricity, gas and water,

due to heatwaves and flooding.

—

Inefficiencies in production due to disrupted employee travel, e.g. caused by

flooding.

—

Increased facility and operational down time, due to damaged transport

infrastructure.

—

Direct damage to stock, buildings, and contents from flood and windstorms.

Under a No Policy (4°C) scenario, the hazards with the greatest potential to impact our

business are fluvial and flash flooding, and heatwaves, over the long-term time horizon.

Three of our sites, Guayama (Puerto Rico), Tianjin (China) and Dungarvan (Ireland), are

at greatest risk of property damage from fluvial flooding owing to their close proximity

to rivers.

Sites in the US, southern Europe and eastern China are located in regions that could

experience a rapid increase in heatwave probability driven by global average

temperatures and the likelihood of prolonged extreme temperature events. Heatwaves

have the potential to cause disruption through interrupting our supply chain (such as

from infrastructure damage to the road and rail network) as well as reducing the

productivity of our workforce through human health impacts.

The risk of water stress is considered to be low with 0.4% of annual revenue from our

owned sites being potentially impacted in the long-term (by 2050).

Assumptions:

—

2023 financial values are kept constant up to 2050 and acute physical risk shocks

were applied to these values.

—

The revenue share for our sites was assumed to be site revenue as a proportion

of total revenue. The remaining revenue share was split proportionally across

third-party manufacturers' sites.

—

Meteorological conditions that could lead to water stress (i.e. severe drought) were

considered. Local geological conditions were excluded from the analysis.

Actions:

—

In 2024 we conducted refresher training for regional environment, health and

safety (EHS) and engineering leads on climate risks.

—

Manufacturing sites are included within a loss-prevention survey programme and

are routinely visited to confirm appropriate resilience measures are in place,

including flood, wind and storm protection.

—

Our manufacturing sites have emergency plans, disaster recovery plans (DRPs),

and business continuity plans (BCPs), which we continuously test against to

further enable improvements at our sites to withstand extreme weather events.

—

Our BCPs include options for multiple sourcing for manufacturing of our products.

This is achieved by using a combination of Haleon or third-party manufacturing

organisations' sites, spread across different geographies.

—

We conducted value-chain water footprint analysis to better understand potential

water-related risks in specific geographies and prioritise actions.

—

All our manufacturing sites are implementing the AWS standard to address local

water-related risks and opportunities. As of 2025, all of our sites have been AWS

core certified. We are committed to putting in place programmes to meet our

water neutral goal. In 2023 our Cape Town site became water neutral following

water replenishment activities in 2022 with WWF South Africa. In 2026 we are

aiming for our site in Nairobi, Kenya, to start investing in projects to become water

neutral by the end of 2029. Currently 8 of our manufacturing sites are in scope of

the goal as they are located in areas of current or future water stress.

Metrics and targets:

—

All our manufacturing sites in water-stressed basins

1

to be water neutral by 2030.

—

AWS certifications at all our manufacturing sites by end of 2025.

Paris Ambition (1.5°C)

S

LR

M

LR

L

LR

No Policy (4°C)

S

LR

M

LR

L

MR

Climate and nature-related financial disclosures

continued

1.

Determined using publicly available tools to identify water risk, such as the WRI Aqueduct Tool, site-specific reviews of local water risk using local data, and materiality of the risk to the business.

Key

S

Short-term 0–4 years

M

Medium-term 5–9 years

L

Long-term 10+ years

Financial impact of risk or opportunity

LR

Low risk £10m–£40m

MR

Medium risk £40m–£80m

HR

High risk >£80m

O

Opportunity

Haleon

Annual Report and Form 20-F 2025

Physical climate-related risks

Climate risk

Impact analysis

Management of risk

Reduced availability of raw materials

due to chronic weather impact

The financial impacts on ingredient

production due to chronic climate change

induced by changing temperature and

precipitation patterns. The following raw

materials were considered for the

analysis: corn, wheat, mint, palm oil and

soybean.

Potential impacts included in our Paris Ambition (1.5°C) and No Policy (4°C)

scenario analysis included:

—

Reduction in crop yields leading to supply and demand implications and price

volatility.

—

Supply shortages which could prevent or limit the production of key product lines

and lead to a loss in revenue.

—

Increased costs due to long-term chronic drought affecting crop supply and

implementation of adaptation measures such as irrigation solutions.

Scenario analysis was conducted to assess the financial impact of crop yield

fluctuations caused by long-term climate change for our key crops. Changes in rainfall

and temperature were assessed using data on crop sourcing locations and crop

vulnerability. The effects of sudden hazards like heatwaves and droughts on crops were

also assessed, considering the sourcing locations with a high likelihood or increasing

probability of such events.

Changes in long-term precipitation and temperature patterns under the No Policy (4°C)

scenario are likely to affect wheat and corn sourcing, with wheat experiencing the

largest average percentage yield decline of c.37% between 2023 and 2050. Our key

sourcing regions for these crops (France, US and UK) could also be impacted by

extreme weather events, such as drought or severe heatwave events, further reducing

crop yields.

In our Oral Health products, corn is a crucial feedstock. However, the projected impact

on corn yields in 2050 is anticipated to be minimal, accounting for less than 3% of the

total revenue generated by Oral Health products in 2023.

Under the No Policy (4°C) scenario, certain areas of central US may see corn yields

decline as a result of precipitation variation.

Assumptions:

—

2023 financial values are kept constant up to 2050 and acute physical risk shocks are

applied to these values.

—

The impact of climate conditions on raw material supply is limited to temperature

and precipitation. Other conditions, such as soil quality, were excluded from the

analysis.

—

Revenue impacts were considered in terms of reduced crop yields leading to

production limitations. Price fluctuations were not considered in the analysis.

Actions:

—

We are assessing the feasibility of substituting raw materials with lower-risk

alternatives, for example replacing corn-derived ingredients with alternatives to

reduce exposure to yield and cost fluctuations.

—

We have a robust sustainable sourcing strategy in place. See our Health Inclusivity

and Sustainability Report on page 19.

—

Our sourcing strategy involves multiple sourcing options from different

geographies and holding materials safety stocks where feasible. Continuity of

supply is a priority for our procurement team.

—

Haleon has launched its Sustainability Guidance for Suppliers Document, outlining

clear expectations and standards for our suppliers across key workstreams

including carbon reduction. The document offers targeted guidance and practical

support to help suppliers navigate the complexities of sustainability and advance

meaningful progress throughout our shared value chain.

—

Sustainability requirements are embedded into tender processes.

Metrics and targets:

—

All of our key agricultural, forest, and marine-derived materials to be sustainably

sourced and deforestation-free by 2030

1

.

Paris Ambition (1.5°C)

S

LR

M

LR

L

LR

No Policy (4°C)

S

LR

M

LR

L

MR

1.

Scope includes Haleon's globally managed spend on key materials that are agricultural, forest, or marine-derived. Globally managed spend covers the majority of our internal spend and expands across some of our third-party manufacturing network.

Key

S

Short-term 0–4 years

M

Medium-term 5–9 years

L

Long-term 10+ years

Financial impact of risk or opportunity

LR

Low risk £10m–£40m

MR

Medium risk £40m–£80m

HR

High risk >£80m

O

Opportunity

23

Haleon

Annual Report and Form 20-F 2025

Strategic

Report

Other

Information

Parent Company

Financial Statements

Consolidated

Financial Statements

Corporate

Governance

Climate-related transition risks

Climate risk

Impact analysis

Management of risk

Policy: carbon pricing

The financial impacts of carbon taxes on

emissions across our operations and

supply chain.

Potential impacts included in our Paris Ambition (1.5°C) scenario analysis

included the following (the ‘No Policy’ (4°C) scenario was not relevant):

—

Direct increase to overhead costs from Scope 1 and 2 emissions (e.g. cost of

electricity and fuel).

—

Increased cost of raw materials from upstream suppliers passing through increased

costs from Scope 3 emissions.

—

Reduction in sales from passing the costs from carbon taxes on to consumers.

—

Under a Paris Ambition (1.5°C) scenario global carbon prices are expected to grow

in the medium term. Failure to achieve our SBTi-aligned target for Scope 1 and 2

emissions can lead to a medium risk. However, if we meet our SBTi target, the risk is

significantly reduced as we aim to achieve at least 95% absolute Scope 1 and 2

emissions reduction by 2030 (vs a 2020 baseline).

—

Indirect Scope 3 emissions account for the majority of our exposure to carbon costs,

particularly upstream emissions associated with farming and processing, which could

be passed on by our suppliers. We have limited ability to influence these costs as

they will depend on the extent to which suppliers reflect carbon tax expenditure

within prices. The risk of indirect Scope 3 costs will be greatly reduced if we are able

to meet our commitment to reduce Scope 3 emissions from source to sale by 42% by

2030 (vs a 2022 baseline) and deliver our net zero source-to-sale target by 2040,

aligned to guidance from ‘Race to Zero’ and ‘Amazon Climate Pledge’.

Assumptions:

—

Business as usual emissions trajectory where emissions grow proportionally to

revenue growth.

—

Linear trajectories were used between scenario data points to estimate climate

pricing data for intervening years.

—

All global emissions are subject to carbon pricing and no border adjustments were

included in the analysis.

—

No risk is assumed under a No Policy (4°C) scenario. This is due to this scenario

representing a reversal of current policies including currently implemented carbon

prices.

—

Carbon price used in the analysis (2027 weighted average carbon price): $83.45/

tonne. Carbon prices used in analysis were collated from sources such as the IMF,

IEA and NGFS.

Actions:

—

Delivery of our carbon emissions reduction targets for Scopes 1, 2 and 3 carbon

emissions as outlined below and in our Climate Action Transition Plan will mitigate

our operations’ exposure to future carbon pricing and environmental taxation.

—

We work with our suppliers through industry groups such as Energize to help

suppliers transition to renewable electricity and take actions to reduce their

carbon footprint.

—

In 2024, we ran a Supplier Climate Training Programme with over 380 participants

from our top suppliers. The aim was to educate and support them on their

decarbonisation journey. In 2025 we held our first Supplier Sustainability Forum

which covers topics including carbon reduction.

—

In 2024, Haleon implemented a carbon pricing scheme that converts carbon

emissions into a commercial value for supplier selection criteria. This mechanism

encourages suppliers to reduce their carbon footprint to make themselves more

competitive. Haleon's carbon price follows the EU ETS cost of carbon.

—

We have launched our Haleon Sustainability Guidance for Suppliers Document

which provides support and actionable steps for our suppliers to implement.

These include things like, baselining their emissions, transitioning to renewable

electricity and low carbon heat generation.

Metrics and targets:

—

Reduce net Scope 1 and 2 carbon emissions by 100% by 2030, vs a 2020 baseline.

—

Reduce Scope 3 carbon emissions from source to sale by 42% by 2030, vs a 2022

baseline

1

.

—

Achieve net zero carbon emissions from source to sale by 2040, aligned with

guidance from the Climate Pledge and Race to Zero

1

.

Paris Ambition (1.5°C)

S

LR

M

MR

L

MR

No Policy (4°C)

Not applicable

1.

Our net zero and Scope 3 carbon emissions targets span carbon emission categories from source to sale (excluding GHG protocol categories 6, 7 and 10-15).

Climate and nature-related financial disclosures

continued

Key

S

Short-term 0–4 years

M

Medium-term 5–9 years

L

Long-term 10+ years

Financial impact of risk or opportunity

LR

Low risk £10m–£40m

MR

Medium risk £40m–£80m

HR

High risk >£80m

O

Opportunity

Haleon

Annual Report and Form 20-F 2025

1.

Scope includes Haleon’s globally managed spend on key materials that are agricultural, forest, or marine-derived. Globally managed spend covers the majority of our internal spend and expands across some of our third-party manufacturing network.

Climate risk

Impact analysis

Management of risk

Changing consumer preferences

The financial impacts of taking action

towards the sustainability of our products,

and consumer purchasing shifting towards

more sustainable brands (e.g. products

with less plastic or more recyclable

packaging).

Potential impacts in our Paris Ambition (1.5°C) and No Policy (4°C) scenario

analysis included:

—

Reduction in product sales and loss of market share.

—

Reputational damage and a reduction in brand loyalty.

—

Under a Paris Ambition (1.5°C) scenario, it is expected that consumers will rapidly

shift towards more sustainable products. The majority of potential revenue loss is

driven by our Oral Health products, which represent the largest share of total

revenue.

Assumptions:

—

Buying preferences will vary at differing rates across global regions.

—

To model demand shifts of our products, consumer-led demand for sustainable

packaging was used as a proxy.

—

The risk was modelled under a scenario where we do not act to improve the

sustainability of our products, in order to analyse the unmitigated impact of

consumer demand shifts.

Actions:

—

To meet or exceed the expectations of our key stakeholders, including consumers,

we are committed to deliver on our health inclusivity and sustainability strategy

and targets (page 15).

—

We conducted an extensive study to explore and understand the importance of

social and environmental issues to people around the world, to understand their

sustainability priorities in relation to our Oral Health, OTC and VMS categories.

We conducted quantitative research in 11 markets in 2022 (Australia, Brazil, China,

Germany, Indonesia, Italy, Poland, South Africa, Thailand, UK and the US) and

qualitative research in 4 markets in 2023 (China, Germany, UK and the US) that

included online consumer communities, digital listening (US), cultural analysis and

expert interviews. This work has given us a broad and deep understanding of

consumers’ concerns and needs, enabling us to identify a roadmap for Haleon to

follow, to help address these, in both the short and longer term.

—

Using our annual sustainability claims tracker, we monitor the incidence of

environmental and social sustainability promotional claims across new product

launches in our categories.

—

Our sustainability impact assessment tool (SIAT) enables our R&D teams to

calculate, analyse and compare the impact of product and packaging design

decisions on key environmental-impact parameters (including carbon footprint

and packaging). We have improved the scoring process to make it more

quantitative and introduced a weighted sustainability scoring. Every large project

is required to achieve significant improvements on packaging or carbon compared

to the baseline. In 2025, we introduced a feature that accounts for packaging

headspace, helping us optimise the full capacity of our primary packaging.

—

We are participating in programmes such as Amazon’s ‘Climate Pledge Friendly’

programme as well as making direct consumer-facing sustainability promotional

claims in relation to our products or listings in retailers’ sustainable choices

ranges.

—

With a focus on health inclusivity, our brands seek to tackle specific barriers that

stand in the way of better everyday health. This includes empowering consumers

and Health Professionals to better understand the impact of climate change on

health and equipping both with tools and solutions to manage and mitigate the

impact on everyday health.

Metrics and targets:

—

Develop solutions for all product packaging to be recycle-ready by 2025 and

recyclable or reusable by 2030, where safety, quality and regulations permit.

—

Reduce our use of virgin petroleum-based plastic by 10% by 2025, and a third by

2030, vs a 2022 baseline.

—

All of our key agricultural, forest, and marine-derived materials to be sustainably

sourced and deforestation-free by 2030

1

.

Paris Ambition (1.5°C)

S

LR

M

MR

L

MR

No Policy (4°C)

S

LR

M

LR

L

LR

Climate-related transition risks

Key

S

Short-term 0–4 years

M

Medium-term 5–9 years

L

Long-term 10+ years

Financial impact of risk or opportunity

LR

Low risk £10m–£40m

MR

Medium risk £40m–£80m

HR

High risk >£80m

O

Opportunity

25

Haleon

Annual Report and Form 20-F 2025

Strategic

Report

Other

Information

Parent Company

Financial Statements

Consolidated

Financial Statements

Corporate

Governance

Climate-related transition opportunities

Climate opportunities

Impact analysis

Management of opportunity

Changing consumer preferences

The financial impacts of taking action

towards the sustainability of our products,

and consumer purchasing shifting towards

more sustainable brands (e.g. products

with less plastic or more recyclable

packaging).

Potential impacts in our Paris Ambition (1.5°C) and No Policy (4°C) scenario

analysis included:

—

Changing consumer demand to low-carbon alternatives, leading to a gain in market

share and an increase in product sales.

—

Positive reputational impacts and increasing brand loyalty.

—

The potential market opportunity for more sustainable products could be significant

under a Paris Ambition (1.5°C) scenario, equating to 2.6% additional revenue in 2032,

compared to baseline projected revenues. Consistent with the related risk, the

greatest potential for upside is driven by our Oral Health products.

—

The size of the potential opportunity decreases in the long term, as more products

align with consumer preferences and take actions to meet future climate targets.

Therefore, the opportunity reduces for product groups which have already seen a

sustainable shift.

Assumptions:

—

Buying preferences will vary at differing rates across global regions. To model

demand shifts for Haleon's products, consumer-led demand for sustainable

packaging was used as a proxy.

—

The opportunity was modelled under a future where we work to improve the

sustainability of our products in order to understand the potential financial gains

that could be realised.

Actions:

—

Management as for equivalent risk on page 25.

Metrics and targets:

—

Develop solutions for all product packaging to be recycle-ready by 2025, and

recyclable or reusable by 2030, where safety, quality and regulations permit.

—

Reduce our use of virgin petroleum-based plastic by 10% by 2025, and a third by

2030, vs a 2022 baseline.

—

All of our key agricultural, forest, and marine-derived materials to be sustainably

sourced and deforestation-free by 2030

1

.

Paris Ambition (1.5°C)

S

O

M

O

L

O

No Policy (4°C)

S

O

M

O

L

O

Climate and nature-related financial disclosures

continued

Key

S

Short-term 0–4 years

M

Medium-term 5–9 years

L

Long-term 10+ years

Financial impact of risk or opportunity

LR

Low risk £10m–£40m

MR

Medium risk £40m–£80m

HR

High risk >£80m

O

Opportunity

1.

Scope includes Haleon’s globally managed spend on key materials that are agricultural, forest or marine-derived. Globally managed spend covers the majority of our internal spend and expands across some of our third-party manufacturing network.

Haleon

Annual Report and Form 20-F 2025

Nature dependencies,

impacts, risks and

opportunities

Our process for identifying, assessing

and prioritising nature-related

dependencies, impacts, risks and

opportunities (DIROs) followed the

TNFD LEAP methodology and included

the use of a variety of recommended

tools.

Our analysis confirms and reinforces

actions we are already taking. Given this,

we will continue to drive delivery against

our relevant, externally committed goals.

These include sustainable sourcing,

water stewardship and engaging

suppliers in taking actions across their

value chains to address risks, ensuring

preparedness for regulatory changes,

and increasing supply chain resilience.

Our LEAP Assessment reviewed 393 sites

across our value chain:

— 29 Haleon sites.

— 69 third-party manufacturing sites.

— 282 Tier 1

1

supplier sites.

— 13 Tier 2

2

supplier sites.

We identified priority locations to focus

on by combining an analysis of ecological

thresholds and tipping points, identifying

material and sensitive locations.

As well as taking a site-specific

approach, our LEAP assessment also

examined our value chains through local,

sub-national, national and global lenses,

to provide a comprehensive analysis of

nature-related risks and opportunities.

Policy changes and regulatory

requirements

Our assessment also considered evolving

policy and regulatory requirements,

which are key drivers of risk and require

ongoing monitoring and adaptation, e.g

the EU Deforestation Regulation (EUDR).

The potential nature-related DIROs we

have currently identified as part of our

LEAP assessment are presented on

pages 28 to 30. These DIROs informed

our Double Materiality Assessment

(DMA) for identification of topics. Our

DMA was conducted taking account of

the requirements of the EU Corporate

Sustainability Reporting Directive (CSRD)

and the European Sustainability

Reporting Standards (enacted prior to

2025) in preparation for potential future

reporting by the Group and/or by our

companies (refer to pages 5 and 6 of our

2025 Health Inclusivity and Sustainability

Report for more information).

Our DIROs

Our LEAP assessment highlighted key

dependencies on natural resources and

ecosystem services – such as water,

biodiversity, and healthy soils – across

our value chain. These dependencies

underpin our ability to source key

materials used in our products – such as

mint, palm oil, corn and wheat derivatives

– and to operate manufacturing sites.

Key dependencies identified include

a dependency on water in our own

operations and upstream value chain,

where we need water to manufacture

our products, and a dependency

on fertile soils to grow our key raw

materials, including mint. The analysis

identified potential impacts – including

biodiversity loss, water quality

degradation, and ecosystem disruption

– which could result from activities like

deforestation, fertiliser use and water

pollution from active pharmaceutical

ingredients. These impacts translate into

a range of risks: physical (e.g. water

scarcity, supply chain disruption),

transition (e.g. evolving regulations,

market shifts), and reputational (e.g.

stakeholder expectations, brand trust).

27

Haleon

Annual Report and Form 20-F 2025

Strategic

Report

Other

Information

Parent Company

Financial Statements

Consolidated

Financial Statements

Corporate

Governance

1.

Tier 1: suppliers of

goods, materials,

or services directly

to Haleon, which

includes third-party

manufacturers.

Supplier companies

within the same group

are counted as a

single supplier.

2.

Tier 2: suppliers that

provide materials,

components or

services to our tier 1

suppliers.

Nature risks

Impact analysis

Management of risk

Water pollution from

pharmaceutical releases in the

environment after consumer

end-use.

S

—

Degradation of water quality and ecosystem health could result in increased

pharmaceutical residues in water, leading to increased regulatory action.

—

Stricter regulations on the disposal, treatment and management of active

pharmaceutical ingredients (APIs) could result in regulations to control the sale

of such products, with a potential loss of revenue and/or increased operational

costs, associated with new disposal and treatment methods, infrastructures

or technologies.

Actions:

—

We encourage the right consumer behaviour through the ‘Let’s treat it right’

campaign, engaging consumers to use, dose, store and dispose of everyday

medicine responsibly.

—

We innovate to mitigate risks through new product development, including those

which reduce product wash-off, e.g. transdermal patches.

—

We advocate in support of well-designed wastewater extended producer

responsibility (EPR) schemes, to enhance wastewater treatment.

Water pollution in Haleon's

upstream value chain activities.

M

—

Upstream raw material production processing and raw material sourcing could

result in water pollution (e.g. discharges of insufficiently treated wastewater,

agricultural run-off, etc).

—

New regulations in these countries to minimise water pollution impacts could

increase costs for suppliers or lead to production delays.

Actions:

—

We have revised and updated our standards, scope and process for managing

wastewater for third parties, e.g. suppliers and third-party manufacturers who

handle APIs and certain other personal care product ingredients.

—

We continue to audit relevant suppliers and third-party manufacturers to

Pharmaceutical Supply Chain Initiative (PSCI) Standards on a risk-based frequency.

We supplement this with ad hoc desk-based assessments to determine if

wastewater is managed to our standards.

Sourcing of water intensive

commodities from regions with

high water stress.

M

—

The sourcing of water-intensive commodities (such as mint, corn, soy, etc) by our

suppliers for use in the ingredients we purchase has the potential to exacerbate

local water scarcity and increase operational and supply chain vulnerability in

commodity production landscapes. This can lead to reduced yields, production

delays and potential increased costs related to obtaining pure, quality water and the

potential need to shift to new feedstocks or sources of materials, away from areas of

heightened scarcity.

Actions:

—

We are supporting farmers in our upstream supply chain to adopt improved

agricultural practices. This includes supporting mint farmers to adopt improved

water stewardship by using drip irrigation, to switch to natural pesticides and

fertilisers and to manage water run off through our supplier-led ‘Healthy Mint

Supply Chain’ programme.

Metrics and targets:

—

All key agricultural, forest and marine-derived materials to be sustainably sourced

and deforestation-free by 2030

1

.

1.

Scope includes Haleon’s globally managed spend on key materials which are agricultural, forestry or marine-derived. Globally managed spend covers the majority of our internal spend and expands across some of our third-party manufacturing network.

Climate and nature-related financial disclosures

continued

Key

S

Short-term 0–1 years

M

Medium-term 1–3 years

L

Long-term 3+ years

28

Haleon

Annual Report and Form 20-F 2025

Nature risks

Impact analysis

Management of risk

Contribution to climate change as a

driver of biodiversity loss from

GHG emissions across the value

chain.

L

—

GHG emissions from suppliers, manufacturing, logistics and products contribute

to climate change, which, in turn, is a driver of biodiversity loss through rising

temperatures, altered rainfall patterns, more frequent extreme weather events,

and the spread of pests and disease. Supplies of timber-derived paper and

other naturally derived raw materials are potentially at risk from these impacts.

—

Supplier investments to substitute or protect disrupted ecosystem services (natural

benefits that support farming, such as pollination of crops, natural pest control,

soil fertility maintenance, and water regulation) and/or adoption of certification

systems that seek to address this could lead to increased costs.

Actions:

—

We are taking action to reduce our Scope 1, Scope 2 and Scope 3 GHG emissions

across our value chains (page 17).

—

Our work with mint farmers through our ‘Healthy Mint Supply Chain’ programme

and with smallholder palm oil farmers through the support of the ‘Kaleka’ project

in Central Kalimantan, Indonesia, aim to address biodiversity loss caused by

climate change and other factors, and protect and restore the provision of

ecosystem services. Our commitment to RSPO

1

and FSC

2

certification for palm oil

and paper help reduce climate and biodiversity impacts. RSPO prohibits

deforestation and protects peatlands, while the FSC standard promotes

climate-smart forestry and increased carbon storage.

Metrics and targets:

—

To reduce our net Scope 1 and 2 carbon emissions by 100% by 2030, vs a 2020

baseline.

—

To reduce our Scope 3 carbon emissions, from source to sale, by 42% by 2030, vs a

2022 baseline.

—

For all key agricultural, forest and marine-derived materials to be sustainably

sourced and deforestation-free by 2030

3

.

Biodiversity loss due to land-use

change from upstream sourcing.

M

—

Land-use change such as deforestation, habitat conversion and agricultural

expansion in upstream supply chains, driven by supplier-operated sites, represents

a significant risk to biodiversity in our value chains. This affects the ecosystem

services that are essential for raw material production and wider supply chain

stability. This is particularly prevalent in palm oil, soy and paper sourcing landscapes.

—

Increased regulations, trade restrictions or barriers on products linked to

deforestation in certain jurisdictions can increase cost pressures on our supply chains.

Actions:

—

We require FSC/PEFC

4

certification for paper, RSPO mass balance certification of

palm-derivatives and are working with partners to map these supply chains to

better understand risks. As a member of Action for Sustainable Derivatives (ASD),

we have increased the traceability of palm oil used by our suppliers to 93%

traceable up to refineries, 92.4% traceable up to mills, 85% traceable up to

plantations in 2024. Utilising the Nusantara Atlas satellite monitoring tool, ASD

can assess deforestation and conversion of forest close to palm oil production

areas relevant to our supply chains.

—

We are supporting the Mosaik Initiative, a collaborative initiative that aims to

sustainably restore palm oil growing landscapes and drive economic growth in

Central Kalimantan, Indonesia as part of our membership of Action on

Sustainable Derivatives (ASD).

—

We continue to engage suppliers to improve traceability, promote sustainable

practices and maintain compliance with our sourcing standards.

Metrics and Targets:

—

All key agricultural, forest and marine-derived materials to be sustainably sourced

and deforestation-free by 2030

3

.

1.

RSPO: Roundtable on Sustainabile Palm Oil.

2.

FSC: Forest Stewardship Council.

3.

Scope includes Haleon’s globally managed spend on key materials which are agricultural, forestry or marine-derived. Globally managed spend covers the majority of our

internal spend and expands across some of our third-party manufacturing network.

4.

PEFC:

Programme for the Endorsement of Forest Certification.

Key

S

Short-term 0–1 years

M

Medium-term 1–3 years

L

Long-term 3+ years

29

Haleon

Annual Report and Form 20-F 2025

Strategic

Report

Other

Information

Parent Company

Financial Statements

Consolidated

Financial Statements

Corporate

Governance

Nature risks

Impact analysis

Management of risk

Downstream consumer waste

associated with Haleon packaging

after use.

M

—

The need to develop and manufacture sustainable packaging can increase costs,

but also satisfy consumer demand for sustainable products.

Actions:

We manage our impact proactively through our work to make our products and

packaging more sustainable. For example:

—

In 2025 our Advil brand in the US reduced the amount of plastic in its bottles by

over 100 tonnes, using sustainable plastic technology which enables reduced

bottle wall-thickness while maintaining barrier properties.

—

Our Flonase brand switched outer packaging made from non-recyclable plastic to

a paper-recyclable design, eliminating over 169 tonnes of single-use plastic waste

in 2024. This initiative won Flonase both a prestigious WorldStar Global Packaging

Award and the 2024 AmeriStar Award for Sustainable Packaging.

Metrics and targets:

—

Develop solutions for all product packaging to be recycle-ready by 2025 and

recyclable or reusable by 2030, where safety, quality and regulations permit.

—

Reduce our use of virgin petroleum-based plastic by 10% by 2025, and a third by

2030, vs a 2022 baseline.

Tighter regulations on production

activities that risk having harmful

effects on water.

M

—

Increasingly stringent regulations may result in increased costs for advanced water

treatments, or restrictions in production.

—

Costs of increased supplier engagement and audits against new standards, to

mitigate these regulatory risks and maintain supply chain resilience.

Actions:

—

We engage with suppliers and hold them to a high standard of water and pollution

management, through desk-based assessments and site audits to check

wastewater discharges remain in safe limits.

—

We implemented the Alliance for Water Stewardship (AWS) Standard across

our manufacturing network and, as of 2025, all of our sites have been AWS

core certified.

—

We engage with local stakeholders, identifying opportunities and developing

water stewardship plans to address shared water challenges, including action on

water pollution.

—

We have a long standing and robust programme in place to manage the

wastewater generated by our manufacturing sites. We regularly assess the risk of

pollution, and take action where needed – for example, we may improve a process

on site to reduce the levels of a pollutant in the wastewater, or upgrade our on-site

wastewater treatment to remove it.

Metrics and targets:

—

Achieve AWS Standard certification at all our manufacturing sites by 2025.

—

Achieve water neutrality at our manufacturing sites in water-stressed basins

1

by 2030.

Nature-related opportunities –

We face a complex landscape of regulatory, operational and supply chain risks, but have also identified opportunities to create value. These include leveraging our

actions to make our products more sustainable – to support consumer-facing promotional claims and qualify our products for high-growth, retailer sustainable-choices ranges.

1.

Determined using publicly available tools to identify water risk, such as the WRI Aqueduct Tool, site-specific reviews of local water risk using local data, and materiality of the risk to the business.

Climate and nature-related financial disclosures

continued

Key

S

Short-term 0–1 years

M

Medium-term 1–3 years

L

Long-term 3+ years

Haleon

Annual Report and Form 20-F 2025

Section 172 statement and stakeholder engagement

Section 172

statement

In accordance with the requirements of

Section 172 of the Companies Act 2006

(the Act), the Directors consider that

during the financial year ended 31

December 2025, they have acted in a

way that they consider, in good faith,

would most likely promote the success

of the Company for the benefit of its

members as a whole, having regard to

the likely consequences of any decision

in the long term and the broader

interests of other stakeholders,

as required by the Act.

Constructive engagement with

stakeholders remains central to how

Haleon delivers on its purpose and

strategy. As a global consumer health

company, the Board is mindful that our

actions have broad social, environmental

and economic reach, and that our

stakeholders’ perspectives are vital

to long-term success.

In 2025, our engagement approach

evolved combining leadership-driven

initiatives with active board participation

to ensure the voices of consumers,

colleagues, investors, partners and

communities inform our thinking. This

ongoing dialogue enables the Board and

management to identify emerging issues

early, respond to them effectively, and

shape decisions that balance short-term

performance with sustainable growth.

By embedding meaningful stakeholder

engagement into both operational and

strategic decision making, Haleon

strengthens transparency, trust and

accountability across the organisation.

This inclusive approach underpins our

governance framework and supports our

ambition to be a responsible, responsive,

and innovative leader. More information

on how the Board had regard to each

matter, during the year, is available in

the following pages:

S172 Factor

Relevant disclosures

Read more

The likely consequences of any decision in the

long term

Strategy

Our business model

KPIs

Governance

Board activities

Health inclusivity and sustainability

Page 6

Page 4

Page 40

Page 60

Page 65

Page 15

The interests of the Company’s employees

Our culture and people

Stakeholder engagement

KPIs

Directors’ Remuneration Report

Workforce engagement

Page 35

Page 31

Page 40

Page 78

Page 69

The need to foster business relationships with

suppliers, customers and others

Stakeholder engagement

Our culture and people

Board activities

Page 31

Page 35

Page 65

The impact of the Company’s operations on the

community and the environment

Health inclusivity and sustainability

Environmental & Social Sustainability

Committee Report

Page 15

Page 74

The desirability of the Company maintaining a

reputation for high standards of business conduct

Our culture and people

Audit & Risk Committee Report

Directors’ Report

Page 35

Page 70

Page 175

The need to act fairly as between members of

the Company

Our culture and people

Stakeholder engagement

Workforce engagement

Board activities

Page 35

Page 31

Page 69

Page 65

31

Haleon

Annual Report and Form 20-F 2025

Strategic

Report

Other

Information

Parent Company

Financial Statements

Consolidated

Financial Statements

Corporate

Governance

Mutually beneficial relationships with our stakeholders:

Strong stakeholder relationships are

key to our long-term success

Engagement with stakeholders provides valuable insights that inform our

decisions. It helps build a performance-focused culture and work efficiently

to create relevant, effective offerings aligned with the needs of consumers

and health professionals across diverse global markets.

Consumers

The end users of our

products

Trusted brands that

understand their needs

Safe, innovative,

sustainable, health-

enhancing products

A purpose-led, inclusive

company that offers

career development and

support

Long-term stakeholder

value, effective

corporate governance,

responsible business

practices

Trust-based

relationships;

responsible practices,

values and policies

Driving demand for our

products and the

ultimate source of our

revenues

Commercial partners

and essential channels

to our consumers

Deliver our products and

operate our business

effectively

A stable legal and

regulatory environment

that supports investment

and innovation

Support performance

through

recommendations; help

us understand long-term

trends

Access to funding for

investment through

equity and debt

Supply chain and

business continuity;

support with our

environmental ambitions

Customers

pharmacies, drugstores,

retailers and ecommerce

platforms

Employees

Governments

and industry

regulators

Health

professionals

Investors

Suppliers

Accessible, safe and

effective products that

help reduce the burden

of healthcare costs

Effective, safe science-

based products;

responsible sales and

marketing practices

Section 172 statement and stakeholder engagement

continued

32

Haleon

Examples of how we engage

Examples of outcomes

Examples of measurement

Consumers

—

Brand and advertising campaigns using health and

wellness influencers.

—

Sponsorship of major cultural and sporting events.

—

Self-care and community outreach programmes.

—

Consumer industry events and exhibitions.

—

Consumer enquiries handled by our Global Consumers

Relations Team.

—

Advil’s ‘That’s Real Strength’ campaign (US) educated consumers on how strength is

about acknowledging pain and treatment.

—

Voltaren as official licensed pain relief gel for UEFA Champions League in Germany.

—

Conducted self-care tests for c. 9,000 consumers at major exhibition in China.

—

Customer satisfaction score (CSAT) with Consumer Relations Service improved by

seven points in 2025.

—

Enhanced consumer insights process to better inform innovation pipeline.

—

Brand equity scores.

—

Increased brand and category performance.

—

Number of consumers engaging with Haleon and its

brands via self-care tests.

—

Volume of consumer interactions, with 1.3 million

interactions in 2025.

—

Consumer satisfaction scores.

Customers

—

Partnership programmes with major retailers focused on

self-care.

—

Sector and customer collaboration supporting local

communities.

—

Regular workshops to share best practices and exchange

insights and strategies.

—

Interactive visits to our shopper research centres.

—

Activated UK retailer programmes for Voltarol and Centrum on menopause support.

—

Delivered health education by working with leading global retailer in China through

dedicated in-store health zones.

—

Provided leading online retailer with VMS category insights to enhance AI-driven

product matching to address consumer needs.

—

Launched new shopper research centre in Brazil to drive deeper engagement with

strategic customers.

—

Growth in share of shelf and distribution points.

—

Customer net sales performance and retention.

—

Direct feedback from customers via industry surveys

e.g. Advantage Group Survey.

—

Volume of customers visiting our shopper research

centres.

Employees

—

Annual employee engagement survey.

—

Global broadcasts and Executive Team market visits.

—

Development programmes and resources.

—

Line manager calls with the Executive Team.

—

Employee resource groups (ERGs).

—

Employee engagement sessions with the Executive Team

and Board.

—

Employee engagement score of 82%.

—

Four global broadcasts where employees engage with the Executive Team.

—

40,000 places were taken up during our second ‘Growing at Haleon’ learning week.

—

Held 10 line manager calls and eight employee engagement sessions.

—

Held four global flagship ERG events.

—

Employee engagement survey results.

—

Number of employees joining global broadcasts.

—

Level of engagement on internal channels and platforms.

—

Level of participation during our ‘Growing at Haleon’ week.

—

Level of participation in ERG events.

—

Sentiment and engagement at employee listening sessions.

Governments and industry regulators

—

Participation in global/regional health and trade policy

events.

—

Key Government stakeholder and MLO visits and meetings.

—

Leadership roles in industry trade associations e.g. GSCF,

AESGP.

—

Regular input into policy, regulatory and legislative reform.

—

Speaker panels at international health and trade events (World Health Assembly,

Politico Healthcare Summit).

—

Ministerial visit to Weybridge UK R&D facility and site for new Global Oral Health

Innovation Centre.

—

Supported Global Self-Care Coalition’s new manifesto at UN General Assembly.

—

Participated in the B20 South Africa Industrial Transformation and Innovation

Taskforce.

—

Successfully advocated for the inclusion of oral health in the UN Political Declaration

on Noncommunicable Diseases (NCDs).

—

Number and quality of Government engagements.

—

Product speed to market.

—

Costs associated with regulatory changes.

—

Positive progress in policy, legislative and regulatory

developments.

33

Haleon

Annual Report and Form 20-F 2025

Strategic

Report

Other

Information

Parent Company

Financial Statements

Consolidated

Financial Statements

Corporate

Governance

Examples of how we engage

Examples of outcomes

Examples of measurement

Health Professionals

—

Global launch of Haleon Pain Management Institute

(HPMI).

—

Participation in large-scale health professional industry

events.

—

Campaigns and activations to promote global health

days.

—

Haleon Health Partner Portal.

—

Engaged c.40,000 health professionals globally on HPMI through in-person and

online events.

—

Developed brain health wellness programme for International Pharmaceutical

Federation (FIP), reaching 150 global FIP leaders from 90 markets.

—

World Oral Health Day activation in India achieved Guinness World Record for

greatest dental screenings conducted in 24 hours.

—

Over 128,000 hours of webinar content consumed by healthcare professionals.

—

Industry awards e.g. Centre for Human Sciences

recognised by PMEA Awards.

—

Key Performance Indicators (KPIs) for events.

—

Increase in number of expert brand recommendations.

—

Volume of webinar attendees.

—

Number of Haleon Health Partner Portal registrations

(reached c.1.1 million in 2025).

Investors

—

Roadshows, ‘fireside’ chats, webcasts, conferences and

1:1 meetings.

—

Investor events covering areas of interest.

—

AGM, stock exchange announcements and results

briefings.

—

Held Haleon’s first Capital Markets Day as a standalone business, engaging c.100

investors and analysts.

—

Regular updates to the Board and Executive Team on investor, shareholder and

analyst perceptions.

—

Review of strategy incorporating investor feedback.

—

Number and quality of interactions.

—

Investor and analyst surveys.

—

Feedback from investors and analysts.

—

Level of analyst and investor participation in events.

Suppliers

—

Supplier innovation events.

—

Supplier training programmes.

—

Online supplier portal.

—

Sustainable supply chain programme.

—

CPO communications with strategic suppliers.

—

Held 65 supplier innovation events resulting in new innovation projects.

—

Sustainability training and resources delivered to c.50 suppliers.

—

Simpler, more automated ways of working.

—

Accelerated carbon reduction incentive programme for suppliers.

—

Updates on Haleon strategy for suppliers.

—

Number of suppliers attending our events.

—

Number of suppliers attending our training.

—

Feedback from suppliers.

—

Number of tenders using carbon pricing.

—

Continuity of relationships.

Section 172 statement and stakeholder engagement

continued

34

Haleon

Annual Report and Form 20-F 2025

Our culture and people

Purpose-led,

performance‑focused

As we transform into a world class consumer company, we are reshaping

Haleon’s culture to support our Win as One strategy. We are building a

distinctive culture that gives us a competitive edge and enables us to

deliver at pace. Underpinned by our purpose – to deliver better everyday

health with humanity – we are driving an agile and performance‑focused

culture, empowering our people to innovate, collaborate and reach their

full potential, so we can meet the evolving needs of our consumers

across the world.

89%

Annual engagement

survey overall

response rate

77%

Win as One index

Our Win as One strategy

Our Win as One strategy sets the

direction for Haleon to seize

opportunities and realise our full

potential. It provides clarity for the

whole business to drive the organisation

consistently forward. There are four

elements to our strategy – all designed to

work together and reinforce each other.

It starts with our purpose – to deliver

better everyday health with humanity –

because what we do matters. To achieve

this, we have defined two ambitions: to

reach one billion more consumers by

2030 and deliver industry-leading

shareholder returns. Four strategic

drivers underpin these ambitions,

supported by behaviours that foster

an agile, performance-focused culture.

These include reports from our Speak Up

channel and the results from our annual

employee engagement survey. As part of

our cultural development work we have

evolved our employee listening approach

to sharpen how we measure cultural

progress, celebrate successes, and allow

for course correction. Our approach now

encompasses a wider range of indicators

to include data points that show

improvements in employee perception

and business outcomes related to our

five culture transformation levers

(strategy, operating model, processes,

people and behaviours and performance

management). These insights show a

fuller experience of working at Haleon,

related to the targeted cultural shifts

we are making and enable action taking

through the course of the year.

Our full range of indicators now include:

— Clear behavioural expectations set

through annual mandatory Code of

Conduct training including anti-bribery

and corruption and keeping data

secure.

— A new cultural transformation

dashboard to measure progress

against the five transformation levers

through perception and business

outcomes.

— A framework of internal financial and

operational controls, audit and

assurance programmes that monitor

the Company’s compliance with

regulations and internal procedures

and policies.

— Encouraging anyone, whether working

for Haleon or not, to speak up about

misconduct, breaches of policy or

procedures, and suspected violations

of laws and regulations.

— Measuring employee engagement

through our annual employee

engagement survey. Haleon received

an 82% overall engagement score.

In line with our purpose, our refreshed

Health Inclusivity and Sustainability

strategy is woven into every element

of our strategy. Together, they align

our organisation to accelerate growth.

This is how we Win as One – through our

people, creating impact for consumers

and value for shareholders.

Measuring our culture

Culture is the foundation of how we

deliver on our purpose and Win as One

strategy and we are continuing to

transform Haleon into a world-class

consumer company with an agile,

performance-focused culture. The Board

and Executive Team receive regular

reports on all aspects of culture, through

quarterly engagement sessions led by

our board member and Workforce

Engagement Director, Dame Vivienne Cox.

Growing at Haleon

Week

Growing at Haleon Week 2025 returned

after its successful launch in 2024,

bringing together our global community

for a focused week of learning and

development. Held in September, the

programme offered a rich agenda of

sessions, workshops, and engagement

activities aimed at strengthening

enterprise thinking and accelerating

cultural transformation. Highlights

included a keynote from Brian

McNamara on breaking down silos

and moving ‘slow to go fast’ to drive

purposeful progress. Additional

sessions led by Haleon leaders

explored how better understanding

consumers – particularly in lower

income segments – can unlock new

opportunities for growth.

I would recommend Growing at

Haleon Week.

Our culture and people

continued

— Measuring our environmental, health

and safety performance across the

Company and conducting risk-based

audits, which the Board and Executive

Team monitor.

— Conducting regular conversations and

year-end reviews with employees.

Our people

Our people comprise permanent

and fixed-term direct employees,

supported by third-party temporary

workers and contractors. We are

creating an organisation where

everyone can reach their full potential

and perform at their best. Our Win as

One culture gives us a competitive

edge and attracts industry-leading

talent. Together our people focus on

our growth and productivity ambitions.

To support this, our initiatives and

policies reflect international employment

law, including the Universal Declaration

of Human Rights, and International

Labour Organisation (ILO) Declaration

on Fundamental Principles and Rights at

Work. We work to create an inclusive

environment where everyone can belong.

increase in internal hiring volumes driven

by job posting policies and improved

talent marketing.

Development and learning has three

objectives: build the right competencies

to stay safe and compliant within our

regulatory environment; develop

strategic capabilities; and provide

employees with opportunities to grow

and reach their potential. We identify

strategic capability needs through our

strategic planning processes overlaid

with our talent and performance cycles.

External trend analysis enables us to

prioritise hard to find capabilities that

are critical to our enterprise strategic

plans. These inform our internal learning

and development offerings and

investments in capability-building

programmes. Our offerings include a

range of options, from apprenticeships

(where available), coaching and

mentoring to self-led resources,

supporting employees’ career

development at Haleon. September saw

us launch our new learning management

system, the first phase of modernising

our total learning ecosystem. This puts

relevant learning in the hands of

employees with greater ease, and is

accessible on any device, anywhere;

outpacing the norm for manufacturing

environments. We have streamlined

related learning processes and items.

In June, we ran our second leader event

in London, building on momentum from

the previous year. We ran our second

Growing at Haleon Week, available to all

employees globally. More than 40,000

places were taken up across 19 sessions,

with 35 speakers.

Leadership development

Our leadership development offer

provides a globally consistent, career-

stage appropriate, and strategically

aligned curriculum for leaders at all

Attracting, fostering and

developing talent

Our ability to attract and retain industry-

leading talent is critical to delivering

our Win As One ambitions. Our talent

acquisition capability evolved again

in 2025; we simplified our recruiting

processes, aligned our interview guides

and interview enablement to the Win As

One strategy. We also deployed new

leadership assessments to improve how

we identify the most impactful talent for

critical roles – internally and externally.

We improved both the reliability of and

accessibility to, key talent insights and

hiring performance data. In Q1, we

implemented Eightfold AI, a leading

candidate relationship management and

recruiting workflow automation tool,

which has measurably reduced cost and

time-to-offer for both executive and

non-executive recruitment. As a result,

we have seen significant improvements

in our hiring speed, hiring experience

delivered to candidates and managers,

a reduction in external vendor spend,

and automation of key work processes

such as interview scheduling and

candidate outreach. In 2026, we plan

to improve how we onboard new hires

to drive speed to productivity and new

hire retention. We also anticipate an

levels of the organisation. Since 2023,

58% of the leadership population have

completed at least one global leadership

development programme, a significant

increase from 12% in 2022. This

demonstrates strong engagement in our

global leadership development offer.

NPS across these programmes average

60, and completion rates are at 78%+

reflecting strong participant advocacy

and satisfaction with the global

offerings. We have also won silver and

bronze Brandon Hall Awards for our two

leadership development programmes –

Inspire and Lead.

Creating a more inclusive workplace

In 2025, we continued to develop our

commitment to inclusion and belonging

(I&B) and our strategy focused on three

key pillars:

— Employee belonging – creating a

work environment that is inclusive

and accessible.

— Workforce representation – attract,

recruit, promote and retain the best

talent that reflects the communities

and consumers that we serve.

— Societal change – leverage our

expertise to enable health inclusivity

through our business relationships,

brands and research.

In 2025, Haleon’s Global I&B council met

quarterly to set priorities, review I&B

progress, and drive accountability for our

inclusion agenda. The council, sponsored

by the Chief Human Resources Officer

and chaired by the Global Head of

Talent, provides oversight and funding

for global initiatives, ensuring that I&B

is embedded consistently across

the business.

Discover

more…

We will undertake

targeted cultural

development work

in 2026 to help to

ensure Haleon

continues to have a

culture that

supports our

strategic plans.

See also our

business model,

stakeholder

engagement,

strategy, approach

to risk and financial

statement

sections

on pages 4, 32, 6, 50

and 105.

See also our

key

performance

indicators

section

on page 40.

See also the

Audit &

Risk Committee

Report

from

page 70.

See also our

statement of

compliance

on

page 59 with links

to our standards

and policies.

Our ability to attract and retain industry‑leading

talent is critical to delivering our Win As One

ambitions. Our talent acquisition capability

evolved again in 2025; we simplified our recruiting

processes, aligned our interview guides and

interview enablement to the Win As One strategy.

36

Haleon

Our employee resource groups (ERGs)

are open to all employees and create

inclusive, supportive communities where

colleagues can connect through shared

experiences and act as strategic partners

to the business by advancing inclusive

practices. In 2025, our ERGs delivered

meaningful impact across the business:

Pride helped secure the Rainbow

Honours Large Organisation of the

Year award; our inclusive mentoring

programme Elevate U! doubled its reach

and Women@Haleon launched our first

Menopause toolkit; Empower advanced

accessibility and neurodiversity with

resources such as a managers’ toolkit

and a Celebrating Different Minds video

series; and Illuminate strengthened

ethnic inclusion through unified local

networks and targeted programmes.

We also continue to champion local

ERGs (for example, our UK Carers ERG

and the introduction of our new

generational ERG: ConnectGen).

Collectively, these efforts strengthened

Haleon’s culture of inclusion, reaching

colleagues across 20 markets and

multiple functional chapters.

Outside the US and Puerto Rico, we

remain committed to achieving our

gender parity goal 48-52%

3

in our global

leadership roles by 2030

4

. We aim to

framework by creating a wellbeing

steering committee with representatives

from different areas of the business.

In 2026, we will continue to collaborate

closely with the Benefits team to ensure

alignment between our wellbeing and

benefits strategy. We are also planning

to create an employee oral health

programme and refresh our preventative

health offering.

Workplace environments

We have continued to evolve our

Workplace Solutions guidelines and

standards in 2025. As we continue to

adapt and grow, our foremost objective

is to ensure that each of our offices

and sites delivers an optimal level

of service and experience that meets

the evolving needs of our business

and employees. This year, we have

introduced innovative design guidelines

that emphasise enhancing the employee

experience at our sites. Our revised

guidelines and standards establish a

cohesive global approach, ensuring

consistency, safety, sustainability,

achieve this by ensuring our hiring, talent

pipeline and development processes

remove bias and encourage applications

from a range of talent – ensuring that

appointments are always made based

on the skills and experience required

for the role.

Employee health and wellbeing

At Haleon we are committed to ensuring

wellbeing is at the heart of the everyday

employee experience, enabling our

employees to be at their best and thrive.

Aligned to our Win as One ambitions,

and by prioritising wellbeing, celebrating

differences, and fostering an inclusive

workplace, we aim to unleash the full

potential of our employees.

In 2025, we launched our new 24/7

confidential global employee assistance

programme (EAP) in partnership with

our wellbeing partner to support our

employees and their dependants

across both personal and professional

challenges. We refreshed and

relaunched our wellbeing champion

network, growing the network globally

and developing a new framework to

set up our champions for success and

embed wellbeing into our culture.

As part of our new wellbeing strategy,

we have started to build a governance

and cost control across all locations

while simultaneously supporting our

workforce and our brand. We are

committed to creating spaces that strike

the perfect balance between

productivity, community, collaboration

and focus areas. Where possible, our

Hybrid at Haleon philosophy enables

employees to blend working from the

office, home and other locations to

foster creativity and innovation, enhance

focus and deepen relationships. Current

working arrangements can include

part-time working, home working and

flexible working hours.

As at 31 December 2025

Men

Women

Other

Non-

disclosed

Total

Directors

4

7

—

—

11

Executive Team

7

6

—

—

13

Executive Team direct reports

52

49

—

4

105

Senior managers

2

711

650

—

11

1,372

All employees

13,036

11,348

12

139

24,535

1.

Gender representation reporting is provided in accordance with our UK reporting obligations.

2.

Comprised of Leadership roles as defined in our glossary.

Company gender representation

1

See also our

Nominations &

Governance

Committee Report

on page 76.

3.

Gender parity is

defined as between

48-52%. Since 2025,

this metric does not

include the US

and Puerto Rico.

4.

Percentage indicates

the percentage of

female permanent

employees.

Employees who did

not self-identify their

gender or answered

‘prefer not to say’ are

excluded from the

calculation.

Annual Report and Form 20-F 2025

Strategic

Report

Other

Information

Parent Company

Financial Statements

Consolidated

Financial Statements

Corporate

Governance

Health and safety

In 2025, we continued our commitment

to achieving a safe, healthy workplace

and a zero-harm culture. Our EHS

management system and strategic

approach continue to prioritise building

capability, high hazard risk elimination

and simplifying processes to prevent

harm in the workplace. This strategy is

underpinned by annual objectives and

measurable targets designed to drive

continuous improvement and reduce

reportable injuries, illnesses, and

serious incidents.

We also maintained our focus on

delivering task-specific and risk-based

health and safety training for employees

and third-party temporary workers,

emphasising hazard recognition and

proactive risk mitigation in the workplace.

2025

2024

Reportable Injury

and Illness Rate per

100,000 hours worked –

employees and

external workers

0.14*

0.13

Lost time injury

and illness rate per

100,000 hours

worked – employees

and external workers

0.13*

0.11

1

Fatalities

0*

0

*

KPMG LLP has issued independent limited

assurance, using assurance standard ISAE (UK)

3000, over the selected data indicated.

1.

In 2024, one additional lost-time reportable

event was reported late following an internal

investigation and therefore was not included in

the 2024 Reports.

The purpose of the Haleon safety board,

as part of the governance framework

that manages Haleon’s Product User

Safety risk, is to: set the Company’s

product safety strategy; and oversee the

implementation of the product safety

policy in relation to the composition and

core company position of all products.

Additionally, continuous monitoring

of ingredient safety is conducted in

collaboration with industry peers,

regulators and healthcare providers,

ensuring that Haleon remains proactive

in assessing the safety and benefits of

its products.

Upholding our standards

We have standards and policies in place

to ensure we uphold high standards of

business ethics. We are committed to

transparency, integrity, consumer

satisfaction, safety and compliance

with all relevant laws and regulations.

Product quality, safety and

development

Our products undergo extensive quality

testing and controls as part of our

manufacturing processes. In addition,

we have portals for consumers to obtain

product information and report adverse

reactions. The Haleon Quality System

establishes standards that govern

the entire product lifecycle, ensuring

consistency across all business units and

third-party manufacturers. It emphasises

the role of management at all levels in

upholding these standards, particularly

during product development. Haleon’s

scientists focus on tailoring products to

meet local needs, subjecting them to

rigorous research and testing to comply

with quality and safety standards,

thereby fostering consumer trust.

This process includes various

assessments such as stability testing,

consumer feedback and clinical studies.

Integral to this system is the Trusted

Ingredients programme, which leverages

cross-functional expertise to guide the

selection of active pharmaceutical

ingredients and excipients or additives

used in our products. Haleon implements

controls to evaluate potential benefits,

risks and consumer concerns associated

with these ingredients, including an

independent evidence-based safety

review for new ingredients added to the

product portfolio.

Cyber security

We recognise that the cyber security landscape within

which we operate is hostile and like many other

organisations we are at risk of a cyber-security attack

that could compromise our ability to manufacture,

distribute and sell our products and services. We

continue to invest to mitigate this risk, including using

advanced technologies, engagement of third-party

experts, and the development of our own capability.

We have a third-party risk management process in

place to help ensure that inherent risk assessments are

completed for third-party suppliers, with additional due

diligence assessments completed for higher risk

suppliers.

We have a dedicated cyber-security function that is

focused on the threat landscape and attack vectors

that are targeting healthcare providers, including

ransomware threats, and a cyber-defence team in place

to monitor and react to cyber threats. The security team

build appropriate controls into new developments

whilst continually assessing the posture of production

systems. Haleon’s Chief Information Security Officer

has approximately 15-years cyber-security experience

and is responsible for the cyber-security function. They

provide frequent updates on issues including: current

threats; operational key risk indicators; and cyber-

security maturity improvements, to the Executive Team

and Audit & Risk Committee, who have oversight of our

information security and cyber-risk strategy. Cyber

security risk updates are shared with the wider Board

by the Audit & Risk Committee.

—

During the year we ran several independent cyber

exercises to test our organisational response to

threats. These have provided valuable insights to

allow us to further improve our defences.

—

There was strong focus on the Operational

Technology (OT) environments within our

manufacturing and R&D sites.

—

As part of our overall drive to improve our cyber

security posture, 2025 saw the initiation of our cyber

culture campaign. Launched by the CEO in January,

it has been a year-long campaign aimed at improving

the cyber security awareness of our people covering

several key topics such as password discipline,

physical security, and the risks of social engineering

through an omni-channel approach.

—

Given the hostile external landscape, we have

reviewed our cyber preparedness during the year

and identified tactical enhancements. In addition,

we have put in place actions to further improvements

across the organisation to strengthen our resilience.

—

During 2025, Haleon did not identify any significant

cyber security related incidents.

Spotlight

continued

Annual Report and Form 20-F 2025

— As part of our commitment to

continuous improvement, we

introduced the Sustainability

Guidance for Suppliers Document,

outlining expectations in key areas –

decarbonisation, human rights, water

stewardship, and sustainable sourcing

– and providing practical steps to

make progress towards our

sustainability goals.

— We aim to achieve net zero carbon

emissions from source to sale by

2040

5

. We have implemented key

policies to support this goal,

including our Buying Goods and

Services Policy, which covers not only

the requirements for carbon pricing

in tenders but also the sustainable

procurement of agricultural, marine

and forest derived materials.

— We are driving our Scope 3 agenda to

achieve our SBTi near-term goal of

reducing source to sale emissions by

42% vs 2022. This includes partnering

with suppliers, promoting renewable

electricity adoption through

our sponsorship of the Energize

programme, supporting cost-efficient

transitions to low-carbon heat via our

partnership with Johnson Controls,

and optimising transition plans

with Zeroute.

confidentiality; proportionality; and

non-retaliation. Regular updates and

investigation reports are reviewed by

senior management and the Audit & Risk

Committee, and learnings are converted

into recommendations and updated

training.

Human rights

Haleon is committed to respecting

and promoting human rights wherever

we do business, including upholding

the Universal Declaration of Human

Rights and the International Labour

Organization’s core labour standards.

We aim to align our processes and

procedures with international standards,

including the UN Guiding Principles on

Business and Human Rights and the

Organisation for Economic Co-operation

and Development’s (OECD) Guidelines

for Multinational Enterprises. Our Human

Rights Policy is reviewed by the

Environmental & Social Sustainability

Committee (ESS) and outlines how we

embed human rights principles into

business practices and relationships

with suppliers and partners.

Our suppliers

Haleon’s supply chain is essential to

supporting both our commercial

objectives and sustainability ambitions.

We work with a broad network of

suppliers providing goods for

manufacturing, as well as value-added

services such as technology, marketing,

and logistics.

— Our approach is guided by Haleon’s

Supplier Code of Conduct, which sets

minimum expectations for ethical

conduct, environmental stewardship,

and social responsibility. Each Haleon

supplier is expected to accept and

follow it.

Haleon’s supply chain is essential to

supporting both our commercial objectives

and sustainability ambitions.

Discover

more…

For further

information about

our zero carbon

initiatives see our

approach to health

inclusivity and

sustainability

section on page 15

and our Health

Inclusivity and

Sustainability

report.

Code of Conduct

Our Code of Conduct helps to promote

ethical business practices and offers

guidance to our Board, Executive Team,

employees and third-party temporary

workers. Non-compliance with our Code is

considered misconduct and may lead to

disciplinary action, including termination.

Relevant principles of our Code also

extend to our suppliers, distributors,

agents, consultants and contractors.

The Code: comprises 19 principles; is

available in 19 languages; and combines

written standards with a decision-tree

approach to help make the right choices

and know when to seek advice. In 2025,

a new section on leadership

expectations was included in our Code

to clearly communicate expected

behaviours to line managers. All

employees receive annual training on the

Code of Conduct and essential

compliance principles.

Anti-bribery and anti-corruption

Our policy on the Prevention of Bribery,

Corruption and Other Financial Crimes

outlines our global principles, standards,

requirements, and zero-tolerance stance.

All employees and third-party temporary

workers must adhere to this policy and

receive training on its main principles.

Regular internal checks are conducted as

part of our financial control procedures,

and due diligence checks are performed

on all high-risk third parties. During 2025,

regular updates on the compliance

programme were provided to the

Executive Team and the Audit & Risk

Committee.

Speak up

Haleon encourages anyone, whether

working for the Company or not, to

speak up about misconduct, breaches

of policy or procedures, and suspected

violations of laws and regulations.

Concerns can be raised in multiple

languages via an independently

managed web form and hotlines, or by

email, telephone, or post. All cases are

handled in accordance with Haleon’s

investigatory principles: humanity;

5.

Aligned to guidance

from The Climate

Pledge and Race to

Zero.

39

Annual Report and Form 20-F 2025

Strategic

Report

Other

Information

Parent Company

Financial Statements

Consolidated

Financial Statements

Corporate

Governance

Our key

performance

indicators

We have several enterprise metrics monitoring

performance across the business, from which

we select our key performance indicators (KPIs).

These are the most applicable in tracking our

strategic performance, health inclusivity and

sustainability efforts, and commitments to our key

stakeholders. The Board and Executive Team

monitor our KPIs to ensure continued alignment

to our strategy and, where applicable, they are

linked to Executive Directors’ remuneration.

See also the

Directors’ Remuneration Report

from page 78, and

forward-looking

statements

on page 204

Delivery on our 4–6% medium-term guidance.

Relevance and calculation:

Measures the strength of

our existing portfolio. Data is reconciled to our Financial

Statements. Reconciliations are included in our Non-IFRS

measures section on page 205.

Future focus:

Continue to deliver on our guidance,

prioritising driving growth from increasing penetration,

brand building, innovation and developing routes

to market.

Targeting medium-term leverage of c.2.5x net debt/

adjusted EBITDA.

Relevance and calculation:

Reducing our leverage

strengthens our balance sheet and maintains our

investment-grade credit rating. Data is reconciled to our

Financial Statements. Reconciliations are included in our

Non-IFRS measures section on page 205.

Future focus:

Operate a strong investment-grade

balance sheet with medium-term leverage of c.2.5x net

debt/adjusted EBITDA.

A key component in measuring the viability of our

business.

Relevance and calculation:

Provides us with capacity

to invest in the business, pay down debt and make

shareholder returns. Data is reconciled to our Financial

Statements. Reconciliations are included in our Non-IFRS

measures section on page 205.

Future focus:

Drive free cash flow through a

combination of working capital management and

efficiencies across the business.

A key profitability measure, measuring the Group’s

performance against its sustainable growth model.

Relevance and calculation:

Drives value-creating

behaviours and captures excess cash returned to

shareholders via share buybacks, which in turn increase

total shareholder returns. Data is reconciled to our

Financial Statements. Reconciliations are included in

our Non-IFRS measures section on page 205.

Future focus:

Top-line and bottom-line growth of the

business, reduction of interest charges through optimal

leverage, and share buybacks.

Continued profitable growth.

Relevance and calculation:

Our organic operating profit

growth is an important indicator of the strength of our

business model. Data is reconciled to our Financial

Statements. Reconciliations are included in our Non-IFRS

measures section on page 205.

Future focus:

Drive positive operating leverage, whilst

at the same time ensuring healthy investment to drive

top-line growth or return to shareholders.

Drive market share gains through brand building,

innovation and increased investment in A&P and R&D.

Relevance and calculation:

The attractiveness of

our products is key for all our stakeholders, giving

them confidence in our ability to increase household

penetration and capitalise on new and emerging

opportunities. Based on Haleon’s analysis of third-party

market value sales and share data, including IQVIA,

Circana and NIQ data.

Future focus:

Ensure healthy investment in A&P and

drive innovation through investment in R&D.

Free cash flow

1

PSP

Adjusted diluted earnings per

share (EPS) growth

1

PSP

Business gained/maintained share

Financial and commercial KPIs

Organic revenue growth

1

AIP

Net debt/adjusted EBITDA

1

PSP

2

Organic operating profit growth

1

AIP

Our KPIs and Executive Director

remuneration in 2025

Elements of our Executive Director remuneration are

linked to the delivery of specific KPIs, that are

considered the most relevant in assessing business

performance and our commitments to stakeholders.

See also the

Directors’ Remuneration Report

from page 78.

Performance Share Plan ESG qualifier

The 2025 Performance Share Plan has an ESG qualifier

with thresholds set for two responsible business KPIs:

carbon reduction and a reduction in virgin petroleum-

based packaging. At the end of the performance period,

if either of the thresholds are missed, a reduction in

the level of vesting of 10% could be applied for each

missed threshold. If the metrics are static or go

backwards compared to the 2024 baseline, a 25%

reduction in the level of vesting could be applied for

each measure (i.e. a potential overall reduction of up

to 50%).

Reduce our net Scope 1 and 2 carbon emissions by 100%

by 2030 vs a 2020 baseline.

Relevance and calculation:

Decarbonising our

operations is a key focus area and helps protect against

climate-related transition risks. We track the percentage

change in total tonnes of market-based net Scope 1

and 2 greenhouse gas (GHG) emissions vs 2020.

Future focus:

We are focused on addressing our

remaining Scope 1 emissions by transitioning to

renewable-energy-powered systems for heating

and cooling.

We aim to achieve gender parity in leadership roles

by 2030.

5

Relevance and calculation:

We believe that building an

inclusive organisation, that represents the consumers

and communities who rely on our brands, is a

competitive advantage and is an important consideration

for our stakeholders. Calculated as a percentage of

employees who self-identify as female, compared to

our overall number of permanent employees, across a

quarterly average.

Future focus:

Monitor representation (excluding the US

and Puerto Rico) to understand the composition of our

workforce and how it reflects our key stakeholders.

Reduce our use of virgin petroleum-based plastic by

10% by 2025, and a third by 2030, vs a 2022 baseline.

Relevance and calculation:

Packaging and plastic

pollution are environmental areas of high concern to

consumers. We are committed to addressing this by

making our packaging more sustainable. We track the

percentage change in estimated tonnes of virgin

petroleum-based plastic in our packaging vs 2022.

Future focus:

Continue to focus on reducing our use

of virgin petroleum-based plastic, and replacing it with

recycled plastic or alternative materials, focusing on

our most significant packaging formats.

Build a company where employees are proud to work,

feel inspired, challenged, supported and have a sense

of personal accomplishment.

Relevance and calculation:

Ensuring employees feel

that Haleon is fulfilling its core engagement index

measures, is fundamental to our long-term success.

We track responses to our core engagement index

measures in our annual employee survey and review

progress via our pulse survey.

Future focus:

Continue to focus on strengthening our

culture to drive performance, agility and continuous

improvement.

Gender representation

5

PSP ESG QUALIFIER

6

Employee engagement

7

Responsible business, people and culture KPIs

Performance Share Plan 2025-27

PSP

Annual Incentive Plan

AIP

Carbon reduction

3

PSP ESG QUALIFIER

Virgin petroleum-based plastic

reduction

4

PSP ESG QUALIFIER

quarter. Had we had a normal cold and

flu season, organic growth would have

been 3.4%.

We continue to operate in attractive

categories with long-term consumer

tailwind trends such as increased focus

on health and wellbeing. This alongside

our trusted brands, healthy innovation

pipeline and leading category positions,

are the key reasons we remain confident

in our medium-term guidance of 4-6%

revenue growth.

During the year, we continued at pace

to unlock savings from productivity,

particularly across the supply chain

where we made strong progress in

reducing SKUs, packaging specifications

and formulations. This, combined

with pricing resulted in adjusted gross

profit growth of 4.4% (constant

currency) and 220bps of margin

expansion (constant currency) (reported:

3.8% with 350bps of margin expansion).

Unlocking efficiencies across the supply

chain remains an area where we continue

to see significant potential.

Our strong gross profit performance,

meant that we were able to invest in

the business at a healthy rate with

advertising and promotional (A&P) spend

2025 was a pivotal year for Haleon,

marked by the introduction of our value

creation framework to deliver industry-

leading returns. Despite a softer

consumer and customer environment,

with global category growth falling

below historic averages, we delivered

strong financial results, in line with our

value creation framework. We delivered

strong organic operating profit driven

by strong gross margin improvement

enabling further investment in the

business whilst delivering more to

the bottom line, combined with strong

cash generation enabling disciplined

capital allocation.

I would like to thank everyone at Haleon

for all their efforts in delivering strong

financials and building solid foundations

for continued momentum in 2026.

High quality earnings

For the year, organic revenue increased

3.0% (reported: (1.8)%) to £11.0bn with

our consumption outperforming the

market by 40bps. Headwinds from

foreign exchange and net M&A reduced

revenue by 2.8% and 2.0% respectively.

Organic growth was held back by a

weakening consumer environment

and lower levels of cold and flu which

impacted performance in the fourth

up 7.5% constant currency (reported:

+4.7%) to 20.5% of revenue. Investment

was focused on our core, key growth

markets such as India and driving

innovation. At the same time, we looked

to maximise the effectiveness of our

spend. Adjusted R&D spend was up 7.7%

constant currency (reported: +6.1%)

focused on a number of key areas

including scientific evidence generation

for new and differentiated claims along

with digital enablement.

Altogether, organic profit growth of

10.5% (reported: +9.3%) represented

160bps of margin growth (reported:

230bps). This was partly offset by a drag

from net M&A ((70) bps) and FX ((30)bps)

which resulted in adjusted operating

margin up 60bps at actual rates.

Adjusted EPS was up 5.0% to 18.8p

(reported EPS: up 17.8% to 18.5p) largely

reflecting the strong profit performance,

lower dividend payments for our China

JV and the impact of the £500m share

buyback.

Chief Financial

Officer’s review

2025 Finance review

9.3%

Operating profit

growth

£2.6bn

Net cash inflow from

operating activities

10.5%

Organic operating

profit growth

£1.9bn

Free cash flow

Dawn Allen

Chief Financial Officer

We delivered strong financial

results, in line with our value

creation framework.

During the year, we continued at pace

to unlock savings from productivity,

particularly across the supply chain where

we made strong progress in reducing SKUs,

packaging specifications and formulations.

42

Haleon

Strong cash performance

Our cash performance was also strong,

with free cash flow of £1.9bn, up £194m

on a like-for-like basis (i.e. excluding the

impact of divestments in 2024 including

net proceeds of £325m offset by £(100m)

of associated tax payments). This was

helped by a strong improvement in our

working capital cycle which reduced

by 11 days. Working capital continues

to be an area where we see further

optimisation opportunity.

Capital expenditure of £413m (2024:

£318m) was weighted towards growth

and productivity with spend largely

devoted to systems, processes and

automation.

Driving shareholder returns

During the year, we returned £1.1bn

to shareholders through a £500m

buyback with the remainder coming

from dividends. This, along with spend

to complete the full buyout of our

China JV and our strong free cash flow

performance meant that we were able

to reduce leverage by £0.6bn to £7.3bn

representing 2.6x net debt/adjusted

EBITDA (2024: 2.8x); in line with our

medium-term guidance.

As highlighted at our Capital Markets

Day, we continue to believe c.2.5x net

debt/adjusted EBITDA is the right

leverage for Haleon over the medium

term. This enables the business to

appropriately balance our capital

allocation priorities of maintaining a

strong investment grade balance sheet,

to invest for growth and explore bolt-on

acquisitions, as well as return surplus

capital to shareholders.

Income statement summary

2025

£m

2024

2

£m

% change

Revenue

11,030

11,233

(1.8)

Revenue growth

(1.8%)

(0.6%)

Organic revenue growth

1

3.0%

5.0%

Gross profit

7,080

6,824

3.8

Adjusted gross profit

1

7,193

7,099

1.3

Operating profit

2,412

2,206

9.3

Adjusted operating profit

1

2,526

2,500

1.0

Net finance costs

(262)

(302)

(13.2)

Profit before tax

2,152

1,910

12.7

Profit after tax attributable to shareholders of the Group

1,667

1,442

15.6

Adjusted profit after tax attributable to shareholders of the Group

1

1,697

1,638

3.6

Earnings per ordinary share

Diluted (pence)

18.5

15.7

17.8

Adjusted

1

(pence)

18.8

17.9

5.0

1.

Definitions and calculations of non-IFRS measures can be found from page 205.

2.

For a discussion of the Group’s financial and operating performance for the year ending 31 December 2024, see Haleon’s 2024 Annual

Report and Form 20-F, pages 34-42.

Given these priorities, the Board has

proposed a final dividend for 2025 of

4.9p per ordinary share and a total

dividend of 7.1p per ordinary share, up

7.6% year on year. In addition, we have

announced the allocation of £500m to

share buybacks in 2026. This reflects our

expectation for another year of strong

financial performance.

Looking ahead

We are making good progress in

transforming Haleon into a world-class

consumer company. However, there is

more to do to become truly agile and

relentlessly consumer-focused.

The evolution of our operating model

will be key to driving this shift. Through

our value creation framework, we are

focused on building flexibility and agility

in our P&L by unlocking productivity

savings to fund sustained investment in

growth. Alongside this, an even sharper

focus on return on capital reinforces

our confidence in our medium-term

guidance. I am confident that Haleon is

well positioned to deliver another year

of strong financial performance and

create value for all our stakeholders.

Annual Report and Form 20-F 2025

Strategic

Report

Other

Information

Parent Company

Financial Statements

Consolidated

Financial Statements

Corporate

Governance

Revenue

Reported revenue declined 1.8% to

£11,030m (2024: £11,233m) but grew

3.0% organically for 2025. This was

below our medium-term expectations,

primarily reflecting a weak cold and flu

season and low consumer confidence

in North America. The net impact of

foreign exchange and net M&A reduced

revenue by 2.8% and 2.0% respectively,

the latter reflecting the effect of the

2024 disposals of ChapStick and

Nicotine Replacement Therapy business

outside the US.

Gross profit

Reported gross profit increased by

3.8% to £7,080m (2024: £6,824m) with

gross margin up 350bps to 64.2%.

Adjusted gross profit increased by

1.3% at actual exchange rates and

4.4% at constant currency to £7,193m

(2024: £7,099m). Key drivers of margin

expansion included pricing to offset

inflation, net revenue management

and benefits from the supply chain

productivity programme. Adjusted

gross profit margin increased 200bps

at actual exchange rates to 65.2%

(2024: 63.2%) and 220bps at constant

currency to 65.4%.

Operating profit

Reported operating profit increased

by 9.3% to £2,412m (2024: £2,206m)

and reported operating profit margin

increased 230bps to 21.9% (2024:

19.6%).

Adjusted operating profit increased

by 1.0% at actual exchange rates to

£2,526m (2024: £2,500m) and increased

10.5% on an organic basis. Adjusted

operating profit margin increased 60bps

to 22.9% (2024: 22.3%). On an organic

basis, adjusted operating profit margin

increased 160bps, driven by progress on

productivity initiatives and operating

leverage to support investment in

long-term performance.

For the year, A&P spend was up 4.7% at

actual exchange rates, and up 7.5% at

constant currency, representing 20.5%

of revenue (2024: 19.2%). Adjusted R&D

expenditure was £315m (2024: £297m),

up 6.1% at actual exchange rates and up

7.7% at constant currency, with increased

investment across key innovation areas

and superior evidence generation.

Adjusting items within operating profit

totalled £114m in 2025 (2024: £294m).

This included the amortisation and

impairment of intangible assets of £60m

(2024: £147m). In the prior year, £135m

related to the impairment of Nexium

from weaker market conditions in the

Proton Pump Inhibitor (PPI) category.

During 2025, Nexium was reclassified to

a definite life amortised brand and no

further impairment has been recognised

for Nexium. Restructuring costs totalled

£89m (2024: £214m) and included

amounts related to the productivity

programme and two site closures.

Transaction-related costs and separation

and admission costs were £nil in 2025

(2024: £(1)m and £30m respectively).

Disposals and other items amounted to

£(35)m (2024: £(96)m) and included gains

related to prior year divestments and

settlements.

Net finance costs

Net finance costs were £262m (2024:

£302m). This reflected finance costs

of £340m (2024: £384m) and finance

income of £78m (2024: £82m). Lower

net finance costs largely relate to the

reduction in debt and lower interest

rates.

Tax charge

The statutory tax charge of £472m (2024:

£435m) represented an effective tax rate

on IFRS results of 21.9% (2024: 22.8%).

The tax charge on an adjusted basis was

£554m (2024: £527m) and the effective

tax rate on an adjusted results basis was

24.5% (2024: 24.0%).

Profit after tax and earnings

per share

Profit after tax attributable to

shareholders of the Group was £1,667m

(2024: £1,442m) and adjusted profit after

tax attributable to shareholders was

£1,697m (2024: £1,638m), up 3.6% at

actual exchange rates.

Diluted earnings per share increased

17.8% to 18.5p in 2025 (2024: 15.7p).

Adjusted diluted earnings per share

increased 5.0% to 18.8p (2024: 17.9p)

reflecting slight growth in adjusted

operating profit, lower net finance costs

and non-controlling interest, and a 1.6%

reduction in diluted weighted average

share count following the buyback of

shares in 2025. This was partly offset

by a higher tax rate on adjusted profit

before tax.

2025 Finance review

continued

44

Haleon

Annual Report and Form 20-F 2025

Geographical segment performance

Revenue by geographical segment for the year ended 31 December

Revenue (£m)

Revenue change (%)

2025

2024

Reported

Organic

1

Price

1

Vol/Mix

1

FX impact

Net M&A

impact

North America

3,866

4,042

(4.4)%

(0.4)%

1.0%

(1.4)%

(3.0)%

(1.0)%

EMEA & LatAm

4,592

4,631

(0.8)%

4.7%

4.2%

0.5%

(2.3)%

(3.2)%

APAC

2,572

2,560

0.5%

5.2%

1.0%

4.2%

(3.3)%

(1.4)%

Group

11,030

11,233

(1.8)%

3.0%

2.3%

0.7%

(2.8)%

(2.0)%

1.

Price and volume/mix are components of organic revenue growth. Definitions and calculations of non-IFRS measures can be

found from page 205.

Adjusted operating profit by geographical segment for the year ended 31 December

Adjusted operating

profit

1

(£m)

YoY

change

YoY Organic

change

1

FX impact

Net M&A

impact

2025

2024

2025

Group operating profit

2,412

2,206

9.3%

Reconciling items between adjusted

operating profit and operating profit

2

114

294

(61.2)%

Group adjusted operating profit

3

2,526

2,500

1.0%

10.5%

(3.8)%

(5.7)%

North America

947

1,000

(5.3)%

1.9%

(4.4)%

(2.8)%

EMEA & LatAm

1,090

1,054

3.4%

15.9%

(3.5)%

(9.0)%

APAC

553

539

2.6%

13.1%

(6.7)%

(3.8)%

Corporate and other unallocated

(64)

(93)

31.2%

9.0%

22.6%

(0.4)%

Group adjusted operating profit

2,526

2,500

1.0%

10.5%

(3.8)%

(5.7)%

1.

Definitions and calculations of non-IFRS measures can be found from page 205.

2.

Reconciling items for these purposes are the adjusting items, which are defined under Use of non-IFRS Measures on page 205.

A reconciliation between operating profit and adjusted operating profit is included under Use of non-IFRS Measures.

3.

On a segment basis, adjusted operating profit is the measure of segment profit or loss reviewed by the Company’s chief

operating decision maker. Adjusting items are not allocated by segment, as these items are managed centrally by the Group,

and therefore are not part of the measure of segment profit or loss reviewed by the Company’s chief operating decision maker.

Adjusted operating profit margin by geographical segment for the year ended 31 December

Adjusted operating

profit

1

(£m)

YoY

change

YoY Organic

change

1

FX impact

Net M&A

impact

2025

2024

2025

North America

24.5%

24.7%

(20)bps

50bps

(30)bps

(40)bps

EMEA & LatAm

23.7%

22.8%

90bps

230bps

(30)bps

(110)bps

APAC

21.5%

21.1%

40bps

150bps

(70)bps

(40)bps

Group

22.9%

22.3%

60bps

160bps

(30)bps

(70)bps

1.

Definitions and calculations of non-IFRS measures can be found from page 205.

Geographical segment performance

North America

2025

£m

2024

£m

Change (%)

YoY

Organic

1

Price

2

Vol/Mix

2

Revenue

3,866

4,042

(4.4)%

(0.4)%

1.0%

(1.4)%

Adjusted operating profit

1

947

1,000

(5.3)%

1.9%

n/a

n/a

Adjusted operating profit margin

1

24.5%

24.7%

(20)bps

50bps

n/a

n/a

1.

Definitions and calculations of non-IFRS measures can be found from page 205.

2.

Price and volume/mix are components of organic revenue growth.

Revenue growth

Organic revenue growth

1

Organic operating profit growth

1

Annual Report and Form 20-F 2025

Strategic

Report

Other

Information

Parent Company

Financial Statements

Consolidated

Financial Statements

Corporate

Governance

Europe, Middle East & Africa (EMEA) and Latin America (LatAm)

2025

£m

2024

£m

Change (%)

YoY

Organic

1

Price

2

Vol/Mix

2

Revenue

4,592

4,631

(0.8)%

4.7%

4.2%

0.5%

Adjusted operating profit

1

1,090

1,054

3.4%

15.9%

n/a

n/a

Adjusted operating profit margin

1

23.7%

22.8%

90bps

230bps

n/a

n/a

1.

Definitions and calculations of non-IFRS measures can be found from page 205.

2.

Price and volume/mix are components of organic revenue growth.

2025 reported revenue was £4,592m (2024: £4,631m), a decrease of (0.8)% on a reported basis,

which included the negative impact of exchange rates of (2.3)% and a (3.2)% impact from net

M&A. As a result, organic revenue grew 4.7% with 4.2% price and 0.5% volume/mix.

Geographically, Middle East & Africa, Latin America and Central & Eastern Europe saw mid-single

digit organic growth, and there was a resilient performance in Southern Europe and Northern

Europe. Growth in Q4 was held back by a weak cold and flu season particularly across Central &

Eastern Europe.

Haleon consumption outperformed the market, helped by the strength of our channel mix,

innovation and strong brands. Consumer confidence was impacted by inflation in Europe and

Latin America which resulted in value seeking behaviour.

— High-single digit growth in Oral Health was supported by strong growth from Sensodyne,

Polident/Poligrip and parodontax.

— Mid-single digit growth in VMS was led by Centrum up high-single digit partly offset by a

decline in some local brands.

— Pain Relief increased mid-single digit driven by Panadol.

— Performance in Respiratory Health was impacted by a weak cold and flu season.

— Therapeutic Skin Health & Other grew mid-single digit reflecting strength in Zovirax.

Adjusted operating profit increased 3.4% and 15.9% organically, driven by cost efficiencies which

were partly offset by an increase in A&P. Adjusted operating profit margin was 23.7%, up 230bps

on an organic basis.

Revenue growth

(0.8)%

Organic revenue growth

4.7%

Organic operating profit growth

15.9%

Asia Pacific (APAC)

2025

£m

2024

£m

Change (%)

YoY

Organic

1

Price

2

Vol/Mix

2

Revenue

2,572

2,560

0.5%

5.2%

1.0%

4.2%

Adjusted operating profit

1

553

539

2.6%

13.1%

n/a

n/a

Adjusted operating profit margin

1

21.5%

21.1%

40bps

150bps

n/a

n/a

1.

Definitions and calculations of non-IFRS measures can be found from page 205.

2.

Price and volume/mix are components of organic revenue growth.

2025 reported revenue was £2,572m (2024: £2,560m), an increase of 0.5% on a reported basis,

which included the negative impact of exchange rates (3.3)% and a (1.4)% impact from net M&A.

As a result, organic revenue growth in APAC was 5.2%% with 1.0% price and 4.2% volume/mix.

Strong volume growth was driven by China, India and South-East Asia & Taiwan through

innovation and growth across online channels combined with successful in-market execution.

China grew mid-single digit, and India saw continued momentum with double digit growth.

South-East Asia & Taiwan and North Asia both grew mid-single digit whilst Australia and New

Zealand were up low-single digit.

Haleon consumption outperformed the market. Consumer confidence in China remains steady

with continued preference for brands and ongoing strength in E-comm. In India, GST reforms

have boosted consumer sentiment.

— Oral Health grew double digit driven by strong growth in Sensodyne in India and parodontax

in China.

— VMS delivered mid-single digit growth, with strong growth in Centrum, supported by a number

of innovations including Centrum Daily Kits. Caltrate was flat from lapping strong growth in

2024 when a competitor was out-of-stock; consumption of Caltrate continues to be healthy.

— Respiratory Health was flat given a softer cold and flu season during the first half and a normal

season in the second half of the year.

— Pain Relief was up mid-single digit underpinned by performance in Panadol.

— Digestive Health was up low-single digit. Therapeutic Skin Health & Other slightly declined.

Adjusted operating profit increased 2.6% and increased 13.1% organically. The organic increase

in adjusted operating profit was driven by positive operating leverage combined with

operational efficiencies, which more than offset an increase in A&P. Adjusted operating margin

was 21.5% and increased 150bps organically.

Revenue growth

0.5%

Organic revenue growth

5.2%

Organic operating profit growth

13.1%

continued

Annual Report and Form 20-F 2025

Revenue by market category

Revenue by market category for the year ended 31 December

As announced in May 2025, the Group has adopted a new structure for reporting revenue by

market category. Compared to previous reporting, the new structure:

— Splits out Digestive Health & Other into Digestive Health, and Therapeutic Skin Health & Other.

— Smokers’ Health, which had previously been reported as part of Digestive Health & Other is

now included in Respiratory Health.

— There are no changes to other categories.

Revenue (£m)

1

Revenue change (%)

2025

2024

Reported

Organic

2

FX

impact

Net M&A

impact

Oral Health

3,461

3,312

4.5%

7.9%

(3.4)%

—

VMS

1,685

1,696

(0.6)%

1.9%

(2.5)%

—

Pain Relief

2,564

2,564

—

2.3%

(2.3)%

—

Respiratory Health

1,873

2,122

(11.7)%

(1.9)%

(1.7)%

(8.1)%

Digestive Health

987

1,029

(4.1)%

0.5%

(4.4)%

(0.2)%

Therapeutic Skin Health & Other

460

510

(9.8)%

2.0%

(3.1)%

(8.7)%

Group revenue

11,030

11,233

(1.8)%

3.0%

(2.8)%

(2.0)%

1.

Following the change in product category structure announced on 1 May 2025, 2024 figures have been restated.

2.

Price and volume/mix are components of organic revenue growth. Definitions and calculations of non-IFRS measures can be

found from page 205.

Oral Health

In 2025, Oral Health reported revenue

increased 4.5% to £3.5bn with organic

revenue growth of 7.9% (excluding a (3.4)%

adverse impact of foreign exchange rates).

We continued to outperform the category

with market share gains supported by

innovations and geographic expansion,

combined with strong in-market execution.

Sensodyne organic revenue grew high-single

digit, with growth driven by innovation,

including the Clinical platform, with

Sensodyne Clinical White now available in

26 markets. The launch has contributed to

strong market share gains and driving

penetration by 130bps particularly amongst

younger consumers. The introduction of a

Sensitivity + Cavity toothpaste in over 65

markets including Indonesia and South Africa

is addressing affordability barriers.

We maintained momentum across our

gum health portfolio with the launch of

parodontax Gum Strengthen & Protect with

hyaluronic acid. This multi-format range

across both toothpaste and mouthwash has

expanded the brand into the key untapped

gum need-state of protective gum care. This

has now been launched in 18 markets with

good consumer feedback. Building on its

successful 2024 launch, Haleon expanded

parodontax’s distribution in China, contributing

to the brand’s global double-digit growth.

VMS

In VMS, 2025 reported revenue decreased

(0.6)% resulting in £1.7bn. On an organic basis,

revenue grew to 1.9% (excluding a (2.5)%

adverse impact of foreign exchange rates).

Mid-single digit growth in Centrum reflected

a strong performance in EMEA & LatAm and

APAC partly offset by a decline in North

America. The decline in North America

was a result of weak market conditions for

the multivitamin category and increased

promotions by competitors. The category

returned to growth in North America during

the second half of the year supported by the

activation of cognitive function claims on

Centrum Silver driving market share gains.

Caltrate was flat, after lapping a tough

comparative from a competitor being out

of stock in 2024. Growth was supported by

innovation including Caltrate Kids Liquid in

China, with patented Vitamin K2 formulation

driving 10x better absorption.

Emergen-C grew mid-single digit,

outperforming the immunity category

underpinned by innovation strength including

Emergen-C crystals, Emergen-C Immune+

and Zero Sugar.

Annual Report and Form 20-F 2025

Strategic

Report

Other

Information

Parent Company

Financial Statements

Consolidated

Financial Statements

Corporate

Governance

2025 Finance review

continued

Pain Relief

In Pain Relief, reported revenue was flat

resulting in £2.6bn of revenue. Organic

revenue growth was 2.3% (excluding

a (2.3)% adverse impact of foreign

exchange rates). Organic growth was

driven by mid-single digit growth in

Panadol underpinned by continued

share gains in a number of markets

including UK and Australia. Growth was

supported by innovation including

Panadol Dual Action, a paracetamol and

ibuprofen combination product which

leverages the technology in Advil. It is

now launched in nine markets.

Voltaren was up low-single digit with

growth in North America and Middle

East & Africa, partly offset by a decline

in Germany. Haleon’s innovation agenda

was supported by the expansion of 2%

medicated gels in China driving market

share gains.

Advil was flat, with an improving trend in

the US through the year, supported by

the launch of Advil PM LiquiGel Minis in

the US and the activation of a new

campaign in North America (No Pain,

More Gain).

Respiratory Health

In Respiratory Health, reported revenue

declined (11.7)% to £1.9bn with organic

revenue decline of (1.9)%. The 2025

decline in reported revenue included a

(8.1)% impact from net M&A (divestment

of non-US Smokers’ Health business) as

well as (1.7)% from foreign exchange

movements.

Performance was impacted by a weak

cold and flu season particularly in North

America and Central & Eastern Europe

in Q4 with total cold and flu organic

revenue down mid-single digit.

Robitussin declined double digit in Q4

with lower levels of cough incidences.

Otrivin grew mid-single digit with market

share gains in Otrivin Nasal Mist driven

by penetration from non-spray users in

launch markets of Sweden and UK. High

repurchase intent for the product was

supported by expert advocacy.

Smokers’ Health declined double digit in

2025. Excluding the impact of Smokers’

Health, Respiratory Health organic

revenue would have been broadly flat.

Digestive Health

In Digestive Health, reported revenue

declined (4.1)% resulting in £1bn of

revenue and 0.5% organic growth

(excluding a (0.2)% negative impact

from organic adjustments and a (4.4)%

adverse impact of foreign exchange

movements). Tums saw good growth

supported by expansion of Tums Gummy

Bites driving incremental penetration

and attracting new consumers to the

category in the US. Benefiber was up

high-single digit helped by its ‘Grow

What Feels Good’ campaign.

In India, Haleon launched ENO 3-in-1,

delivering consumers additional benefits

beyond heartburn such as indigestion

and bloating. Overall, the brand

declined, largely driven by double-digit

decline in Brazil from a weaker macro-

economic environment.

Therapeutic Skin Health & Other

Therapeutic Skin Health & Other

reported revenue declined (9.8)% to

£0.5bn with organic revenue growth of

2.0% (excluding a (8.7)% negative impact

from organic adjustments and a (3.1)%

adverse impact of foreign exchange

rates). Organic revenue growth was

driven by

Zovirax

, up mid-single digit,

partly offset by a decline in 

Fenistil

.

Despite a challenging consumer environment,

our brand portfolio performed well,

outperforming the market and with 60% of

the business gaining or maintaining share.

48

Haleon

Annual Report and Form 20-F 2025

Indebtedness, liquidity and

financial risk management

Indebtedness

At 31 December 2025, the Group’s total

borrowings were £8,609m (2024:

£10,127m), and the Group’s net debt

was £7,263m (2024: £7,907m).

Long-term financing consists of $6,000m

USD bonds, €2,250m Euro bonds and

£1,000m GBP bonds issued under the

Euro Medium Term Note programme as

well as CNY2,824m bank loans.

As at 31 December 2025, the Group’s

long-term credit rating with S&P is BBB+

and with Moody’s is A3. The Group’s

short-term credit ratings are A-2 and P-2

with S&P and Moody’s respectively.

Total borrowings/profit after tax was

5.1x and net debt/adjusted EBITDA was

2.6x as at 31 December 2025. Haleon

expects to operate with leverage of

around 2.5x net debt/adjusted EBITDA

over the medium term.

Cash generation

Net cash from operating activities

totalled £2,634m in 2025 (2024: £2,301m).

Free cash flow was £1,913m (2024:

£1,944m). This was up £194m compared

to 2024, before taking account of the

one-time net proceeds from divestments

in 2024 which included £325m gross

proceeds and £(100)m in associated tax

payments, primarily related to ChapStick.

Liquidity

At 31 December 2025, the Group had

total liquidity of £3,053m comprising

£1,750m of bank facilities and £1,324m of

cash and cash equivalents, less £21m of

bank overdrafts. The Group has undrawn

credit facilities of £1,750m (2024:

$1,300m and £900m) with a maturity

date of August 2028. As at 31 December

2025, no amounts were drawn under

these facilities (2024: £nil).

The Group uses short-term financing to

manage working capital requirements and

has access to a $10,000m US commercial

paper programme and a £2,000m Euro

commercial paper programme. There was

no commercial paper outstanding as of

31 December 2025 (2024: £nil).

Management believes that the Group

has sufficient working capital for present

requirements and to minimise liquidity

risk, the Group has policies to limit the

amount of debt maturing in any year.

In addition, policies require the Group

to always maintain a minimum available

liquidity, including undrawn revolving

credit facilities and available cash,

less commercial paper issued.

Interest rate risk

The Group’s strategic priorities are to

minimise interest costs and minimise

income statement volatility arising from

interest rates.

The Group has a policy to limit the

amount of floating rate debt it holds to

manage the amount of income statement

volatility. The Group regularly assesses

its interest rate profile in light of changes

to market interest rates.

At 31 December 2025, 67% of net debt

was fixed with the balance being

exposed to floating rates.

Foreign exchange translation risk

The Group’s policy is to manage Group

net debt such that the currency mix of

debt broadly aligns with the currency

mix of earnings, considering relative

interest costs and practical implications.

The currency mix of debt includes the

impact of foreign exchange and cross-

currency swaps.

USD

EUR

GBP

Currency mix of net debt*

(including swaps)

Deleveraging through a combination of

net debt reduction and adjusted EBITDA growth

Bond debt maturity profile (£bn)

2

1.

Definitions and calculations of non-IFRS measures can be found from page 205.

2.

Principal value of bond debt as at 31 December 2025.

Currency mix of total borrowings

(as issued)

0

7907

2025

2024

Net debt

0

2838

2025

2024

Adjusted EBITDA

Net debt/adjusted EBITDA

7,907

7,263

2,805

2,838

2.8x

2.6x

0.7

0.3

0.7

0.7

0.3

0.7

0.4

61% USD

27% EUR

18% CNY

7% CAD

*

Does not sum to 100% as it excludes 13%

of net assets in GBP and other currencies

52% USD

31% EUR

12% GBP

4% CNY

1% Other

Annual Report and Form 20-F 2025

Strategic

Report

Other

Information

Parent Company

Financial Statements

Consolidated

Financial Statements

Corporate

Governance

defines the essential elements of the

Group’s approach to risk management

and compliance programmes, ensuring

risks associated with conducting

business activities are effectively

controlled, in line with the Board’s risk

appetite and compliance with regulatory

requirements. The framework is aligned

to the three lines model which assigns

roles and responsibilities for the

management of risks within Haleon.

Risk management framework

At Haleon, management of risk is firmly

embedded in our strategy to achieve our

long-term goals. We have a diverse range

of risks and have appropriate processes

and tools to identify risks before they

materialise. The framework is embedded

within the strategy and planning cycle,

which ensures accountability for the

identification, assessment, mitigation and

monitoring of risks aligned with our

strategic objectives. The framework

supports information flow and open

communication between the Board, the

Audit & Risk Committee (ARC), the

Executive Team, our functions, business

units, markets and sites. Our framework

Our approach

to risk

We understand the challenges and uncertainties we

face and take a proactive approach to risk management

to maximise opportunities, drive informed commercial

decision making, and protect our people and assets.

Risk management at Haleon

Top down

— Board/Board

Committees

— Executive Team Risk

Forum

— Annual enterprise

risk assessment

Bottom up

— Expert risk and

control functions

— Business unit and

function ongoing

risk/control strategy

review

— Business unit and

function annual risk

assessment

Internal inputs

— Internal data and

insights

— Strategic objectives

— Internal audit

outcomes

External inputs

— UK Corporate

Governance Code,

laws and regulations

— External partners

— External audit

outcomes

Assessment of

residual risk and

prioritisation

Risk

identification

Management

action and

reporting

Control

strategy

50

Haleon

Annual Report and Form 20-F 2025

Board

Accountable for risk management and defining Haleon’s risk appetite towards achieving its strategic objectives

Executive Team Risk Forum

Provides leadership oversight by reviewing top risks. Approves risk mitigation strategies and ensures effective risk management practices.

Sets relevant risk management governance standards and policies

Internal Audit

Provides independent

and objective assurance

over the adequacy and

effectiveness of risk

management, controls

and governance

processes

Remuneration Committee

Sets the structure for the

Company’s Remuneration Policy,

reviews workforce remuneration

and aligns incentives and

rewards

Nominations & Governance

Committee

Leads the process for

appointments to the Board and

ensures corporate governance

standards are maintained

Environmental & Social

Sustainability Committee

Provides oversight and

governance over progress with

the ESG agenda and external

regulatory requirements

ARC

Provides oversight and effective

governance over processes and

systems for risk management,

controls and reporting

Risk management governance

Expert risk and control functions

Provides subject matter expertise to the business, defines policy and

control standards and challenges the management of risks

Enterprise Risk Management

Owns, designs and maintains the risk management framework. Provides

expertise, support, challenge and monitors risk-related matters.

Enhances the level of risk awareness of all employees through

education workshops and training

Business units and functions

Establishes and maintains appropriate structures and processes of risk management and related control strategy. Owns business

unit/functional risks, applies the risk management framework and ensures compliance with legal, regulatory and ethical expectations

First Line – ownership and operation of processes

Third Line – independent assurance

Leadership – accountability to stakeholders for organisational oversight

Second Line – risk management expertise and control framework design

51

Haleon

Annual Report and Form 20-F 2025

Strategic

Report

Other

Information

Parent Company

Financial Statements

Consolidated

Financial Statements

Corporate

Governance

Our approach to risk

continued

These governance forums provide the

Risk Forum with a bottom-up view of

risks and issues along with oversight of

how the key risks are being managed.

Open communication and adequate

reporting remain essential to ensure

Haleon’s leaders maintain a sound risk

culture and are kept informed, to allow

for swift decisions and meaningful

actions. An annual management

confirmation review across each business

unit and function ensures key risks are

well managed and that corrective and

preventative actions are in place to

address any significant gaps.

Assessing risk

We continuously assess and evaluate

the risks posed by the changing

environments in which we operate to

ensure an appropriate, measured, and

timely response by considering potential

impacts and most likely scenarios.

The annual enterprise risk assessment

(ERA) for 2025 included a risk survey and

interviews with the Board, Executive

Team and business unit general

managers to identify and evaluate both

current and emerging risks, and to inform

the 2026 internal audit plan. The ERA

outcome also reflects whether we think

the impact and likelihood associated

with each of our enterprise risks are

increasing, unchanged or decreasing.

The top-down process is complemented

by horizon scanning to identify external

trends. Inputs from risk review meetings

at all levels of the organisation help

us identify opportunities and/or

emerging risks.

The Board has ultimate accountability

for managing the Group’s risks and

setting our risk appetite in line with our

strategic objectives. The Board ensures

appropriate oversight through various

mechanisms, including strategy meetings,

management reports and reviews of

selected risk areas.

To assist the Board in discharging its

responsibilities, the ARC is responsible

for reviewing and assessing the

effectiveness of the Group’s risk

management and internal control

systems, covering the Group’s enterprise

risks, financial and operational controls

and procedures.

The Executive Team is joined by the

Head of Audit and Risk and Head of

Enterprise Risk Management to form the

Executive Team Risk Forum (Risk Forum).

The Risk Forum met six times in 2025 to

ensure that risks were adequately

managed, and the risk management

framework was effectively deployed

throughout the Group. The Risk Forum:

discusses enterprise and emerging risks;

business unit risks; reviews industry

trends; regulatory developments;

high-profile incidents and critical audit

findings. Each enterprise risk is owned by

a member of the Executive Team, who is

accountable for designing and

implementing risk mitigation strategies

and regularly reporting risk updates to

the ARC and Risk Forum. At a functional,

business unit, market and site level,

regular risk review meetings ensure a

more granular review of risk and

operationalisation of strategic priorities.

The ERA results have been shared with

the ARC and the Board to confirm the

principal risks and agree on the Group’s

risk management priorities for 2026.

Where the level of risk taken is likely to

exceed or has exceeded desired levels in

the period, management action is taken

to further reduce the risk.

Our principal risks

Our principal risks are a subset of our

enterprise risks and are deemed by the

Board to be the most significant risks

faced by the Group, including those that

can materially impact our performance

and/or reputation and could threaten our

long-term business model or liquidity.

Our principal risks remain unchanged

from the previous year, are not listed in

any particular order and do not comprise

an exhaustive list of risks associated with

the business. While a robust assessment

of these risks has been undertaken,

additional risks not known to the Board

or assessed to be less significant may

also materialise and result in an adverse

effect on the business. Haleon also faces

other enterprise risks that we manage as

part of our integrated risk management

framework including: health and safety;

product quality; product user safety;

financial; legal and compliance; and

enterprise transformation.