Analyst Presentation 2015

COLGATE PALMOLIVE INDIA 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, forwardlooking 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 Companys 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 forwardlooking 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 looking
statements as may be required from time to time on the basis of any subsequent developments, conditions, circumstances, information, 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 or
their parent or subsidiary companies or undertakings or any such person's officers, directors or employees guarantees that such forwardlooking
statements and its assumptions, including oral or implied, are error free, lacking omissions, fair, accurate and complete nor does either assume or accept
any responsibility for such forwardlooking statements in future or the actual occurrence of such projections or forecast based on such forward-looking
statements.
This Presentation should not be in any manner whatsoever construed as an approval, acknowledgement, confirmation or acceptance by any statutory or
regulatory authority in India including the stock exchanges in India. The material contained in this Presentation is subject to change without notice and
past performance and historical trends or information is not indicative of future results.
This Presentation is for information purposes only and does not constitute or should not be construed as an offer / invitation for sale or subscription of
or solicitation for any securities of the Company. Investors are cautioned to exercise diligence before taking any investment decisions or otherwise and
Company assumes no responsibility for any loss or damage suffered due to any decisions made on the basis of this Presentation.
Financial Results
Financial Strategy
Sales/ Volume
Margin
Non Variable
Overheads
Advertising
Operating Profit
4Q 2015
Net Sales
(Rs. Crores)
Gross Margin
EBITDA
(Rs. Crores)
Profit After Tax

(Rs. Crores)
Summary 4Q 2015
Net Sales
Gross Margin
+ 11%
+ 310 bps
EBITDA
+ 23%
PAT
+ 24%
Full Year 2014-2015
Net Sales
(Rs. Crores)
Gross Margin
EBITDA
(Rs. Crores)
Profit After Tax

(Rs. Crores)
- 2013-14 PAT is excluding exceptional items due to GSSO slump sale
Summary 2014-2015
Net Sales
Gross Margin
+ 12%
+ 250 bps
EBITDA
+ 24%
PAT
+ 14%
It has been a challenging

environment
GDP Growth
9.3
8.6
8.9
Source: Citibank Macro Flash reports (old series)
5.0
5.6
FY15E
4.7
FY14
FY11
6.7
FY10
FY09
FY08
FY07
FY06
6.7
FY13
9.6
FY12
9.5
FMCG Growth
13.2%
12.6%
11.7%
11.2%
4.0%
4.2%
10.3%
10.0%
4.3%
8.8%
8.8%
3.2%
8.0%
5.8%
7.1%
5.7%
6.1%
4.3%
5.4%
2.3%
9.1%
2.9%
4.3%
1.2%
1.0%
8.5%
7.5%
6.8%
5.4%
4.8%
4.5%
Price led growth
4.4%
Consumption growth
Source: Nielsen RMS All India (U+R)

FMCG nos. does not include Soft Drinks/ Liquor/ Juices
4.9%
5.0%
Value growth
4.5%
4.6%
We continue to focus on our

proven strategic initiatives
Key Strategic Initiatives

Engage to build our brands
Innovation for growth
Effectiveness & Efficiency

Leading to Win
Our consumer franchise &

equity continue to grow
Toothpaste shares
54.5
55.9
23.8
22.8
13.9
2012
13.5
2013
56.7
57.8
21.5
19.9
Competitor 1
13.4
Competitor 2
13.4
2014
Source: AC Nielsen Retail Audit YTD April 2015; Volume Shares
YTD 2015
Toothbrush shares
39.8
18.8
6.7
2012
41.6
42.4
42.1
18.4
18.3
18.3
7.4
2013
7.9
2014
Source: AC Nielsen Retail Audit YTD April 2015; Volume Shares
8.8
Competitor 1
Competitor 2
YTD 2015
Indias Most Trusted Brand
# 1 Brand across all sectors

4 Years in a row
Only brand in top 3 since the surveys inception in 2000
Source: Economic Times Brand Equity Survey 2014
Indias Most Purchased Brand
Source: Kantar Worldpanel Report 2014
And we are
Investing to Grow
Key Growth Drivers

Innovation
Engaging with consumers to build
our brands
Winning on the Ground
Strong professional partnerships
Innovating to create new segments

Whitening
Whiter + Shinier Teeth in 1 week

Sensitivity
Repairs Enamel for Lasting Sensitivity Relief

Premium Anti-Cavity
Fights Sugar Acids, the #1 cause of Cavities
Deep & Gentle Cleaning, with

Charcoal Infused Bristles
A Nielsen Survey
Deep Cleaning Between Teeth

First mass black toothbrush
Innovating to drive premiumization

Rs.95
70g
Price
Rs.85
100g
Rs.60
70g
Rs.46
100g
Rs.20
50g
Rs.17
50g
Rs.10
35g
Rs.5
15g
Benefits
Innovating to drive premiumization

Price
Rs 79
Rs 65
Rs 55
Rs 45
Rs 30
Rs 25
Rs 20
Rs 16
Rs 13
Benefits
Key Growth Drivers

Innovation
our brands
Engaging with consumers on

digital
Over 3.1 MM fans on India Facebook pages

digital
Product launch of SlimSoft Charcoal on digital platform
Main page of leading portals turned black for the first time ever
Reached 23 million consumers

Mobile
Colgate Scholarship Offer

Over 1.5 Million call-ins

Mobile
Using Mobile to reach
media-dark regions
Over 5.5 million reached

through voice-based
mobile delivery
Key Growth Drivers

Innovation
our brands
Increasing distribution &

availability
Colgate available in 4.8MM outlets
Increasing distribution &

availability
No. of rural vans
951
801
340
2012
2013
2014
Invested behind infrastructure
Servicing the Growth
Toothpaste facility at Sanand, Gujarat.

Commissioned from March 2014
Servicing the Growth
Toothbrush facility at Sricity, Andhra Pradesh.

Commissioned from March 2015
Superior In-Store Execution

Making our brands
Available
Visible
Irresistable
Partnering modern retailer customers on

planogramming & shopability
Impactful In-store visibility for new launches
Impactful In-store visibility for new IMCs
Customised hanger packs for traditional trade
Customised solutions for traditional trade
Key Growth Drivers

Innovation
our brands
Partnering with the

Indian Dental Association
Enhancing engagement &
education with 30,000 +
dentists
Continuing dental
education programs
National & State
conferences
IDA-Colgate Scholarships
Alliance for a Cavity-Free Future

Creating an external voice to raise awareness
on dental caries
Academicians + Dentists + Pediatrician + NGO Partners
Leading with the Profession on

recommendations & usage
Brand Used
Most Often by Dentists
Brand Recommended
Most Often by Dentists
74
65
CP
Competitior 1
4
Competitior 2
3
Competitior 3
CP
Source: Ipsos Dentist Track Dec 2014
Competitior 1
6
Competitior 2
4
Competitior 3
Key Growth Drivers

Innovation
our brands
Huge Headroom for Growth
Penetration
Urban
Rural
250MM
91.2
92.3
2013
2014
72.8
74.1
2013
2014
Source: Indian Readership Survey (HHs), IMRB**
consumers do not
use Toothpaste
Consumption
Chart Title
Per Capita Consumption (gms)
700
617
600
543
Market size
DOUBLES
if PCC reaches
China levels
500
400
259
300
264
200
136
100
0
Brazil
USA
Philipines
China
Source: Fractal Analytics - Market Analyzer Dec2014
India
Premiumization
Market size
Average Selling
Price($) Per KG of
Toothpaste
18
13
11
3X
2.2X
1.8X
Average Selling
Price($)
Per Toothbrush
2.7
1.7
0.6
0.2
13.5X
8.5X
3X
Source: Fractal Analytics - Market Analyzer Dec2014
DOUBLES
if ASP reaches
China levels
Leading to Win
Working with our Community
Bright Smiles, Bright Futures
Over 125 million school children

contacted in the program
Oral Health Month
In association with IDA, over 5.5 Million

free dental check-ups done in 2014
Working with NGO Partners

Conservation of Natural Resources,
Vocational training for self sustenance
of villagers, Girl child empowerment.
Addressing Inequalities- Payroll

giving program to sponsor
children affected and infected by
HIV.
Providing quality education to

underprivileged of children ;
Program Read India- improve basic
reading, writing and arithmetic skills
In closing,
a summary of our long term
performance
Net Sales
Gross Margin
PAT
EPS
DPS
Shareholder Returns
Year
Shares
Value
1978
IPO - 250
6,250
1994
Rights - 1,280
25,600
2015*
Holdings - 14,080
28,343,040
*As on 31st Mar 2015
Dividend Received
(includes Capital reduction)
3,651,499
Compounded return of 27% since the IPO
Well-poised to continue to grow

shareholder value
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COLGATE PALMOLIVE INDIA LTD.

Profit After Tax

Full Year 2014-2015

Profit After Tax

- 2013-14 PAT is excluding exceptional items due to GSSO slump sale

It has been a challenging

Source: Citibank Macro Flash reports (old series)

Price led growth

Source: Nielsen RMS All India (U+R)

We continue to focus on our

Key Strategic Initiatives

Effectiveness & Efficiency

Our consumer franchise &

Source: AC Nielsen Retail Audit YTD April 2015; Volume Shares

Source: AC Nielsen Retail Audit YTD April 2015; Volume Shares

Indias Most Trusted Brand

# 1 Brand across all sectors

Indias Most Purchased Brand

Source: Kantar Worldpanel Report 2014

Key Growth Drivers

Strong professional partnerships

Innovating to create new segments

Whiter + Shinier Teeth in 1 week

Innovating to create new segments

Repairs Enamel for Lasting Sensitivity Relief

Innovating to create new segments

Fights Sugar Acids, the #1 cause of Cavities

Innovating to create new segments

Deep & Gentle Cleaning, with

Innovating to create new segments

Deep Cleaning Between Teeth

Innovating to drive premiumization

Innovating to drive premiumization

Key Growth Drivers

Strong professional partnerships

Engaging with consumers on

Over 3.1 MM fans on India Facebook pages

Engaging with consumers on

Engaging with consumers on

Colgate Scholarship Offer

Engaging with consumers on

Over 5.5 million reached

Key Growth Drivers

Strong professional partnerships

Increasing distribution &

Colgate available in 4.8MM outlets

Increasing distribution &

Invested behind infrastructure

Servicing the Growth

Toothpaste facility at Sanand, Gujarat.

Servicing the Growth

Toothbrush facility at Sricity, Andhra Pradesh.

Superior In-Store Execution

Superior In-Store Execution

Partnering modern retailer customers on

Superior In-Store Execution

Impactful In-store visibility for new launches

Superior In-Store Execution

Impactful In-store visibility for new IMCs