I believe what matters most to our shareholders is Total Shareholder Return (TSR) – which reflects the combination of stock price appreciation and dividends. We manage Church & Dwight with the goal of delivering strong TSR to you and will continue to focus on this goal in 2011 and beyond.

In 2010, our Company achieved a TSR of 15.3%, which was over 2% better than the TSR of the S&P 500. Over the past 10 years, Church & Dwight has delivered an annual TSR of approximately 17.6% to its shareholders – significantly better than the -0.5% TSR decline of the S&P 500 stock index during the same period. In fact, our Company is one of just a few companies in the entire S&P 500 that has delivered over 10%+ TSR growth per year for each of the past 10 years. This consistent outstanding performance reflects the relentless work of an experienced management team that is never satisfied with the status quo.

Our long-term objective is to maintain the Company’s track record of delivering outstanding TSR relative to that of the S&P 500. Our long-term business model for delivering this sustained earnings growth is based on annual organic revenue growth of 3-4%, gross margin expansion, tight management of overhead costs and operating margin improvement of 60-70 basis points resulting in sustained annual earnings growth of 10-12%, excluding the effect of acquisitions.

Sincerely,

James R. Craigie
Chairman & Chief Executive Officer