COLGATE-PALMOLIVE (I) LTD
DISCLAIMER
This Presentation and its related publication, release, webcast or communication (together the “Presentation”) is for general information purposes
only. This Presentation does not solicit any action by Colgate-Palmolive (India) Limited (the “Company”) based on the material contained herein.
Nothing in this Presentation is intended by the Company to be construed as legal, accounting, investment or tax saving advice.
This Presentation includes statements that are, or may be deemed to be, “forward‐looking statements”(except for the historical information). These
forward-looking statements appear in several places in the Presentation and are based on certain expectations, assumptions, anticipated
developments and various other factors which are not limited to, risk and uncertainties regarding fluctuations in market share, earnings, market
growth, intense competition and the pricing environment in the market, consumption level, ability to maintain and manage key business stakeholders
and external factors having impact on the conduct of the business not limited to inflation, currency fluctuations, climatic changes, political and
regulatory environment, Government policies and changes in international oil prices etc.
The Company, therefore, in no way assures, represents, warrants, guaranty, undertake, express or imply, given that such statements, views,
projections or forecasts are correct or that the objectives of the Company will be achieved as contained in the Presentation. The Company’s actual
results of operations, financial condition, stability, liquidity, and the development of the industry / business sector in which the Company operates,
may differ materially from those suggested by the forward‐looking statements contained in this Presentation. The Company may alter, amend, modify,
revise or make necessary changes in any manner to any such forward looking statements contained herein including but not limited to oral forward
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events or otherwise.
The Company expressly disclaims and does not assume or undertake any obligation to update forward looking statements to reflect the events,
developments or circumstances after the date of the Presentation. Neither the Company nor its affiliates or advisors or representatives nor any of its
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Company assumes no responsibility for any loss or damage suffered due to any decisions made on the basis of this Presentation.
INNOVATING
to
FY 2013-14:
A CHALLENGING ENVIRONMENT
Inflation (CPI)
GDP Growth
Consumer Confidence
15.5
9.7
9.49.3
8.9
8.6
8.5
8.3
7.8
7.87.7
7.5
7.3
6.9
6.1 6.3
6.1
5.8
5.35.45.2
4.8 4.7
4.74.8
4.4
131131
129129
127
126
123
121122
121
119119 120118
11.2
9.7
5.6
6.5
5.5
9.5
9.1
8.3
121
115
112
6.5
2010
2010
2010
2010
2011
2011
2011
2011
2012
2012
2012
2012
2013
2013
2013
2013
2014
2014
2013
2013
2012
2012
2011
2011
2010
2010
2009
2009
2008
2008
3.8
Source: Consumer Confidence: Nielsen Global Consumer Confidence Index
4Q13 India, GDP Growth CSO MOSPI, Gr Val YA
FY 2013-14:
A CHALLENGING ENVIRONMENT
25%
20.0%
20%
18.3%
18.2%
17.7%
16.7%
15%
9.0%
8.8%
10.9%
7.6%
8.4%
9.4%
10%
12.1%
10.8%
3.0%
2.1%
2.5%
8.2%
6.8%
0.3%
5%
9.3%
7.3%
9.3%
9.1%
9.1%
9.3%
9.1%
8.3%
0%
Price Led Growth
Consumption Growth
Value Growth
Source: Nielsen FMCG Gr Val YA
6.6%
2.9%
5.3%
FY 2013-14:
A CHALLENGING ENVIRONMENT
 High competitive intensity in Oral Care in 2013
 Entry of new players
 Unprecedented aggression from key competitors
WE DELIVERED ON OUR GOALS
WE DELIVERED ON OUR
SALES & PROFIT
Net Sales
PAT
15%
18%
+461
+9%
Crs
FY 12-13
Vol
9%
FY 13-14
8%
FY 12-13
FY 13-14
WE EXPANDED OUR MARGINS
DESPITE COST INCREASES
GROSS MARGIN
60.4%
59.5%
FY 12-13
+90
bps
FY 13-14
WE EXPANDED OUR
CONSUMER FRANCHISE
TOOTHPASTE
National
54.5
55.9
(+140 bps)
57.1
(+180 bps)
Colgate
23.8
13.9
22.8
21.5
Competitor 1
13.5
13.3
Competitor 2
Source: AC Nielsen Retail Audit YTD April 2014
2012
2013
YTD 2014
WE EXPANDED OUR
CONSUMER FRANCHISE
TOOTHBRUSH
National
39.8
41.6
(+180 bps)
42.3
(+100 bps)
Colgate
18.8
18.4
18.6
Competitor 1
7.3
7.2
6.4
Competitor 2
Source: AC Nielsen Retail Audit YTD April 2014
2012
2013
YTD 2014
WE CONTINUE TO BE INDIA’S MOST
PURCHASED BRAND & GROWING
Source: Kantar Worldpanel Report 2013
WE CONTINUE TO BE INDIA’S
MOST TRUSTED BRAND
# 1 Brand across all sectors
3 Years in a row
Source: Economic Times Brand Equity Survey 2013
WE CONTINUE TO LEAD WITH
THE PROFESSION
Brand Used
Most Often by Dentists
Brand Recommended
Most Often by Dentists
67
75
11
5
CP
Competitior 1
Competitior 2
4
1
Competitior 3
CP
Competitior 1
Source: Ipsos Dentist Track 2013
9
3
Competitior 2
Competitior 3
RESULTS DRIVEN BY
FOCUSED STRATEGY, IMPECCABLE
EXECUTION & …
INNOVATION
INNOVATING TO CREATE
NEW SEGMENTS
Whitening
Gum Health
Salt + Lime
Tapered
Bristles
INNOVATING TO DRIVE
PREMIUMIZATION
PREMIUM
VALUE
CONTRIBUTION OF PREMIUM PORTFOLIO
UP 300 bps IN THE LAST 2 YEARS
INNOVATING ACROSS ALL
PRICE & BENEFIT SEGMENTS
Price 
Rs.95
70g
Rs.84
100g
Rs.96
140g
Rs.82
150g
Rs.80
200g
Rs.75
200g
Rs.40
175g
Rs.10
28g
Rs.5
18g
Benefits 
INNOVATING TO DRIVE
AWARENESS & PENETRATION
114 MM
children
contacted
INNOVATING TO INCREASE
AVAILABILITY
4.6MM
•
Colgate Available in
•
2x Village Coverage in 2013
outlets
INNOVATING TO CONNECT
WITH THE CONSUMER
Colgate – Most Social
Company in FMCG
Over 2.7MM fans on
Colgate India & Maxfresh Facebook pages
LEVERAGING MOBILE TO
EXPAND REACH
768,000
First LOCATION
BASED targeting at
the Holy Festival of
KUMBH
CONSUMERS
VISITED COLGATE
STALL
This unique idea
won many awards at
India, Asia Pacific
and Global level
13.8 Million
consumers
CONNECTED THROUGH OBD CALLS
INNOVATING TO WIN WITH
THE SHOPPER
2013 STRATEGY SUMMARY
1. ACCELERATED PENETRATION & DISTRIBUTION
2. CREATED NEW BENEFIT SPACES & DRIVING
PREMIUMIZATION
3. CONNECTED WITH CONSUMERS & SHOPPERS
IN NEW WAYS TO GROW CONSUMPTION
EXPANSION OF FRANCHISE DESPITE A DOWNTURN
OUR GOAL :
CREATE LONG TERM VALUE
FOR OUR SHAREHOLDERS
CONTINUE WITH OUR
GROWTH STRATEGY
1. ACCELERATE PENETRATION
2. DRIVE PREMIUMIZATION
3. EXPAND CONSUMPTION
4. CREATE NEW BENEFIT SPACES
OUR GROWTH PILLARS
1. ACCELERATE PENETRATION
PENETRATION: HEADROOM FOR
MORE GROWTH
329MM
consumers
do not use
Toothpaste
Toothpaste Penetration
100
80
75
78
80
79
87
84
91
61
63
2011
2012
56
60
40
90
38
42
20
46
43
Urban
49
Rural
0
2005
2006
2007
2008
2009
2010
Source: Indian Readership Survey (HHs), IMRB**
RURAL: HEADROOM
FOR MORE GROWTH
Toothpaste
Penetration in key
Rural States
UP
51.9
Bihar 30.1
MP
41.5
Mah
63.1
OUR GROWTH PILLARS
2. DRIVE PREMIUMIZATION
PREMIUMIZATION: HEADROOM
FOR MORE GROWTH
Average Selling Price
Per KG of Toothpaste
Average Selling Price
Per Toothbrush
1477
1118
865
340
4.5X
3.5X
2.5X
X
157
104
36
13
12X
8X
3X
X
Market size
DOUBLES
if ASP
reaches
China levels
OUR GROWTH PILLARS
3. GROW CONSUMPTION
CONSUMPTION: HEADROOM
FOR MORE GROWTH
599
Per Capita Consumption (gms)
Market size
DOUBLES
547
if PCC reaches
China levels
374
280
147
OUR GROWTH PILLARS
4. CREATE NEW BENEFIT SPACES, NEW USAGE
OCCASIONS, NEW REGIMEN…
CONTINUOUS STREAM OF INNOVATIONS
2012 INNOVATIONS
MAY
JUNE
JULY
JULY
SEP
OCT
2013 INNOVATIONS
JAN
MAR
JUL
OCT
MAY
NOV
QTR1 2014 INNOVATIONS
FIRST EVER TEETH WHITENING TREATMENT
WATCH THIS SPACE …
WE HAVE MANY MORE
BREAKTHROUGH TECHNOLOGIES THIS YEAR
SERVICING THE GROWTH
TWO NEW STATE-OF-THE-ART
FACILITIES
1. Toothpaste facility
at Sanand, Gujarat
commissioned in
March 2014
2. Toothbrush facility
at Sricity, Andhra
Pradesh to be
commissioned in Q4,
2014
WINNING ON THE GROUND
WINNING WITH
THE SHAREHOLDERS
Sales/ Volume
Margin
Non Variable
Overheads
Advertising
Increasing
Operating Profit
CONSISTENT DOUBLE DIGIT
GROWTH IN QUARTERLY SALES
13.4%
15.8%
(Rs. Crores)
14.7%
18.3%
17.7%
20.5%
774
13.9%
896
15.9%
921
884
845
812
763
736
Apr-Jun
2012
Jul-Sept
2012
Oct-Dec
2012
Jan-Mar
2013
Apr-Jun
2013
Jul-Sep
2013
Oct-Dec
2013
Jan-Mar
2014
CONTINUE TO GROW OUR
NET SALES
CAGR 5 years – 16%
14.9%
(Rs. Crores)
17.5%
18.2%
13.2%
15.8%
15.0%
3,545
3,084
2,624
2,221
1,962
1,695
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
CONTINUE TO DRIVE
GROSS MARGINS
(Rs. Crores)
60.4%
60.7%
60.4%
60.0%
59.5%
2,143
2,000
56.3%
1,834
1,600
1,574
1,349
1,200
1,186
800
954
400
0
2008-09
2009-10
2010-11
2011-12
Gross Margin
2012-13
% Sales
Gross Margin expansion despite inflationary
environment and currency pressure through
driving efficiencies and cost control
2013-14
EBITDA EXPANSION
IN 4Q 2013-14
(Rs. Crores)
21.9%
200
22.7%
180
20.8%
22.1%
160
19.6%
19.7%
16.3%
17.0%
140
120
202
100
176
169
162
165
150
80
146
151
Jul-Sep
2013
Oct-Dec
2013
60
40
20
Apr-Jun
2012
Jul-Sept
2012
Oct-Dec
2012
Jan-Mar
2013
Apr-Jun
2013
EBITDA
% / Sales
Jan-Mar
2014
CONTINUE TO DELIVER ON
PROFIT AFTER TAX
CAGR 5 years – 13%
+9%
(Rs. Crores)
+11%
+11%
+46%
-5%
540
497
446
423
403
+25%
290
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
CONTINUE TO DELIVER VALUE
FOR OUR SHAREHOLDERS
EPS – 17% (CAGR 10 yrs)
31.1
17.0
7.9
8.3
10.1
29.6
32.8
36.5
39.7
21.3
11.8
DPS – 16% (CAGR 10 yrs)
20.0
13.0
6.0
7.0
7.5
9.5
15.0
22.0
25.0
28.0
27.0
SHAREHOLDER RETURNS
Year
Shares
Value
1978
IPO - 250
6,250
1994
Rights - 1,280
25,600
2014*
Holdings - 14,080
20,190,720
* as on April 30, 2014
Dividend Received
(includes Capital reduction)
3,426,219
Compounded return of 27% since the IPO
COMMITTED TO WIN WITH INTEGRITY
MAINTAINING THE HIGHEST
ETHICAL STANDARDS
Voted THE MOST
ETHICAL Brand
LIVING OUR VALUES
Water for
People Providing
Sanitized
Drinking water
for villages
Pratham –
Education for
under
privileged
children
Care IndiaHelping Girl
Child
Associated with
NTP for
supporting HIV
affected kids
Supporting
creative
workshops for
children
CONTINUE TO EXPAND ORAL
CARE AGGRESSIVELY
Consumer &
Community
Shopper
Consumer insights
Educating the shopper
Community Initiatives BSBF
Changing consumer
habits
Educating shoppers
Educating shoppers
Developing the category
Penetration driving activity
Engaging the shopper
Understanding the shopper
Global & local expertise
Category focused, bigger pie
Driving new rituals
WELL POISED TO CONTINUE CREATING
SHAREHOLDER VALUE
 Clear Strategic Priorities
 Strong Innovation Pipeline
 Focus on Efficiency & Effectiveness
 Good Governance
 Leading To Win
LET’S TALK