COLGATE - PALMOLIVE

December 2010

Presentation Flow

Part 1. Part 1. MANUAL&POWERED TOOTHBRUSHESMANUAL&POWERED TOOTHBRUSHES

Market: Major Trends/ Key Players Market: Major Trends/ Key Players PerformancePerformance Part 2. Brand AnalysisPart 2. Brand Analysis && Price Price SegmentsSegments Part 3. Part 3. Distribution channelsDistribution channels

Part 4. Part 4. SWOT SWOT AnalysisAnalysis

1. Total market trend1. Total market trend

TOTAL MANUAL&POWERED TOOTHBRUSHES

10 153

10 819 10 897

11 33111 040

10 758 10 909

9 400

9 600

9 800

10 000

10 200

10 400

10 600

10 800

11 000

11 200

11 400

11 600

MJ 2004 JA 2004 SO 2004 ND 2004 JF 2005 MA 2005 MJ 2005

Sales Volume(1000 Items)

1. Price Segments1. Price Segments Volume Share, % Volume Share, %

12

37

39

13

34

38

12

15

34

37

11

14

37

37

13

16

34

36

13

16

34

36

15

16

34

33

0

5

10

15

20

25

30

35

40

MJ 2004 JA 2004 SO 2004 ND 2004 JF 2005 MA 2005 MJ 2005

SUPERPREMIUM (>65rub)

PREMIUM (64-40 rub)

MIDPRICE (39-16 rub)

VALUE (<16 rub)

1. Key Producers1. Key Producers Volume Share, % Volume Share, %

35 35 37 37 36 38 40

21 24 23 23 24 23 22

6 8 10 10 11

44 39 35 32 31 29 26

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

MJ 2004 JA 2004 SO 2004 ND 2004 JF 2005 MA 2005 MJ 2005

Other

TOTALPROCTER&GAMBLE

TOTALORAL-B

TOTALCOLGATE-PALMOLIVE

1. Producers Numeric Distribution, %1. Producers Numeric Distribution, %

5351

54 5553 54

9

57

45 454545454645

29 2928 27

21

2

0

10

20

30

40

50

60

MJ 2004 JA 2004 SO 2004 ND 2004 JF 2005 MA 2005 MJ 2005

TOTALCOLGATE-PALMOLIVE

TOTAL ORAL-B

TOTALPROCTER&GAMBLE

2. Share of2. Share of Volume by Brands Volume by Brands (Colgate-Palmolive, Oral-B, Procter&Gamble)(Colgate-Palmolive, Oral-B, Procter&Gamble) % %

3.77 4.50 4.37 4.05 4.45 4.87 6.41

4.86 4.74 5.05 4.69 4.80 5.37 5.17

11.38 10.70 11.78 13.40 12.02 12.27 13.40

14.9615.53 15.40 15.24

14.75 15.82 14.90

3.473.63

3.43 2.943.55

3.98 5.00

3.765.09

5.504.85 5.99

6.03 5.87

13.1913.61

12.0211.77 10.83 10.23 8.79

2.123.34

3.30 2.92 2.72

0.490.65 0.63 0.60

2.042.27 2.05 2.09

2.082.42 3.07 3.20 3.51

2.77 3.67 4.08 5.20

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

MJ 2004 JA 2004 SO 2004 ND 2004 JF 2005 MA 2005 MJ 2005

P&G Value (<16 rub)

P&G Midprice (39-16 rub)

P&G Premium (64-40 rub)

P&G Superpremium (>65 rub)

Oral-B Value (<16 rub)

Oral-B Midprice (39-16 rub)

Oral-B Premium (64-40 rub)

Oral-B Superpremium (>65 rub)

Colgate Value (<16 rub)

Colgate Midprice (39-16 rub)

Colgate Premium (64-40 rub)

Colgate Superpremium (>65 rub)

2. Share of2. Share of Value by Brands Value by Brands (Colgate-Palmolive, Oral-B, Procter&Gamble)(Colgate-Palmolive, Oral-B, Procter&Gamble), %, %

16.41 17.67 16.11 15.05 15.32 15.86 18.22

14.36 13.2612.32 11.76 11.10 11.89

11.07

14.43 12.0611.75 12.93 11.02 10.76 10.98

12.8612.31

11.25 10.9410.00 9.90 8.56

14.1013.48

11.93 10.1311.65

13.5916.83

11.0613.41

13.7312.02 14.32

13.6911.76

16.20 15.07

12.67

12.51 10.80 9.72 7.79

5.37 5.63 4.76 4.66

2.62 3.31 3.88 3.74 3.842.03 2.31 2.83

0%

20%

40%

60%

80%

100%

MJ 2004 JA 2004 SO 2004 ND 2004 JF 2005 MA 2005 MJ 2005

P&G Value (<16 rub)

P&G Midprice (39-16 rub)

P&G Premium (64-40 rub)

P&G Superpremium (>65 rub)

Oral-B Value (<16 rub)

Oral-B Midprice (39-16 rub)

Oral-B Premium (64-40 rub)

Oral-B Superpremium (>65 rub)

Colgate Value (<16 rub)

Colgate Midprice (39-16 rub)

Colgate Premium (64-40 rub)

Colgate Superpremium (>65 rub)

2. Numeric Distribution by Brands , %2. Numeric Distribution by Brands , %

0

10

20

30

40

50

60

MJ 2004 JA 2004 SO 2004 ND 2004 JF 2005 MA 2005 MJ 2005

Colgate Superpremium (>65rub)Colgate Premium (64-40 rub)

Colgate Midprice (39-16 rub)

Colgate Value (<16 rub)

Oral-B Superpremium (>65 rub)

Oral-B Premium (64-40 rub)

Oral-B Midprice (39-16 rub)

Oral-B Value (<16 rub)

P&G Superpremium (>65 rub)

P&G Premium (64-40 rub)

P&G Midprice (39-16 rub)

P&G Value (<16 rub)

2. Volume/ Value by Brands (000 units, RUR)2. Volume/ Value by Brands (000 units, RUR)

315

1 1251 6091 8331 959

2 8173 5203 760

4 0348 7109 224

11 559

0 2 000 4 000 6 000 8 000 10 000 12 000

P&G Superpremium (>65 rub)P&G Premium (64-40 rub)P&G Midprice (39-16 rub)

Oral-B Value (<16 rub)P&G Value (<16 rub)

Oral-B Superpremium (>65 rub)Colgate Superpremium (>65 rub)

Colgate Premium (64-40 rub)Oral-B Premium (64-40 rub)Oral-B Midprice (39-16 rub)

Colgate Midprice (39-16 rub)Colgate Value (<16 rub)

21 53922 498

23 69339 807

55 068158 595

175 713176 145

179 982190 962

194 455242 702

0 50 000 100 000 150 000 200 000 250 000

P&G Superpremium (>65 rub)P&G Value (<16 rub)

Oral-B Value (<16 rub)P&G Midprice (39-16 rub)P&G Premium (64-40 rub)

Colgate Value (<16 rub)Oral-B Midprice (39-16 rub)

Colgate Midprice (39-16 rub)Colgate Premium (64-40 rub)

Oral-B Premium (64-40 rub)Oral-B Superpremium (>65 rub)

Colgate Superpremium (>65

Value (RUR)

Volume (000 units)

2. Full year variances by Brands

Units Full year MJ 2004 MJ 2005 Variance Variance, %Colgate Superpremium (>65 rub) 3 520 383 699 317 183%Colgate Premium (64-40 rub) 3 760 493 564 71 114%Colgate Midprice (39-16 rub) 9 224 1 156 1 462 306 126%Colgate Value (<16 rub) 11 559 1 519 1 626 107 107%Oral-B Superpremium (>65 rub) 2 817 352 545 193 155%Oral-B Premium (64-40 rub) 4 034 382 640 258 168%Oral-B Midprice (39-16 rub) 8 710 1 340 959 -381 72%Oral-B Value (<16 rub) 1 833 62 296 234 477%P&G Superpremium (>65 rub) 315 0 65 65 newP&G Premium (64-40 rub) 1 125 0 228 228 newP&G Midprice (39-16 rub) 1 609 1 383 382 65344%P&G Value (<16 rub) 1 959 24 567 543 2376%

Total Colgate 28 063 3 551 4 352 801 22.6%Total Oral-B 17 395 2 136 2 441 305 14.3%

RUR Full year MJ 2004 MJ 2005 Variance Variance, %Colgate Superpremium (>65 rub) 242 702 28 194 43 611 15 417 155%Colgate Premium (64-40 rub) 179 982 24 673 26 490 1 817 107%Colgate Midprice (39-16 rub) 176 145 24 789 26 278 1 489 106%Colgate Value (<16 rub) 158 595 22 092 20 477 -1 616 93%Oral-B Superpremium (>65 rub) 194 455 24 224 40 277 16 053 166%Oral-B Premium (64-40 rub) 190 962 19 002 28 151 9 150 148%Oral-B Midprice (39-16 rub) 175 713 27 841 18 653 -9 187 67%Oral-B Value (<16 rub) 23 693 808 3 800 2 992 470%P&G Superpremium (>65 rub) 21 539 0 4 481 4 481 newP&G Premium (64-40 rub) 55 068 0 11 140 11 140 newP&G Midprice (39-16 rub) 39 807 14 9 196 9 182 65478%P&G Value (<16 rub) 22 498 180 6 765 6 585 3752%

Total Colgate 757 425 99 749 116 857 17 107 17.2%Total Oral-B 584 824 71 874 90 881 19 007 26.4%

DisclaimerSuperpremium segment (>65 rub)

20 22 22 23 23 24 25

3,8% 4,5% 4,4% 4,0% 4,4% 6,4%4,9%

74 72 72 71 69

69 68 68 65 66

6268

7471

0

10

20

30

40

50

60

70

80

MJ 2004 JA 2004 SO 2004 ND 2004 JF 2005 MA 2005MJ 2005

0%

10%

20%

30%

40%

50%

60%

70%

80%

Colgate distribution Colgate share of volumeColgate price per unit Oral-B Superpremium (>65 rub)P&G Superpremium (>65 rub)

Premium Segment (64-40 rub)

23 23 22 24 24 26 25

4,9% 4,7% 5,1% 4,7% 4,8% 5,2%5,4%

50 5147 48 46 4746

0

10

20

30

40

50

60

70

80

MJ 2004 JA 2004 SO 2004 ND 2004 JF 2005 MA 2005MJ 2005

0%

10%

20%

30%

40%

50%

60%

70%

80%

Colgate distribution Colgate share of volumeColgate price per unit Oral-B Premium (64-40 rub)P&G Premium (64-40 rub)

Midprice segment (39-16 rub)

33 3235 35

33 35 35

11,4% 10,7% 11,8% 13,4% 12,0% 13,4%12,3%

21 21 191818 1818

0

10

20

30

40

50

60

70

80

MJ 2004 JA 2004 SO 2004 ND 2004 JF 2005 MA 2005MJ 2005

0%

10%

20%

30%

40%

50%

60%

70%

80%

Colgate distribution Colgate share of volumeColgate price per unit Oral-B Midprice (39-16 rub)P&G Midprice (39-16 rub)

Value segment (<16 rub)

47 4548 49 48 50 48

14,9%14,8%15,2%15,4%15,0% 15,5% 15,8%

15 15 14 14 14 1313

0

10

20

30

40

50

60

70

80

MJ 2004 JA 2004 SO 2004 ND 2004 JF 2005 MA 2005MJ 2005

0%

10%

20%

30%

40%

50%

60%

70%

80%

Colgate distribution Colgate share of volumeColgate price per unit Oral-B Value (<16 rub)P&G Value (<16 rub)

2. Price trends by Segments

3. Distribution channels3. Distribution channels, , Volume (000 units)Volume (000 units)

MJ 2004 JA 2004 SO 2004 ND 2004 JF 2005 MA 2005 MJ 2005Supermarkets, Minimarkets 2 800 3 181 3 153 3 697 4 150 3 960 4 856Perfumeries, Household Stores, Pharmacies 4 865 5 029 5 345 5 435 4 991 4 882 4 262OPEN MARKETS 2 488 2 609 2 399 2 199 1 898 1 916 1 790

2 800 3 181 3 153 3 6974 150 3 960

4 856

4 865 5 029 5 3455 435

2 488 2 609 2 399 2 199 1 898 1 916 1 790

4 8824 262

4 991

0%

20%

40%

60%

80%

100%

MJ 2004 JA 2004 SO 2004 ND 2004 JF 2005 MA 2005 MJ 2005

OPEN MARKETS

Perfumeries,Household Stores,Pharmacies

Supermarkets,Minimarkets

3. Segment evolution by Channels/ 3. Segment evolution by Channels/ Volume Share, %Volume Share, %

0.0

10.0

20.0

30.0

40.0

50.0

MJ2004

JA2004

SO2004

ND2004

JF2005

MA2005

MJ2005

SUPERPREMIUM (>65 rub) PREMIUM (64-40 rub)MIDPRICE (39-16 rub) VALUE (<16 rub)

NATIONAL MIXED

0

10

20

30

40

50

60

MJ 2004 JA 2004 SO2004

ND2004

JF 2005 MA2005

MJ 2005

SUPERPREMIUM (>65 rub) PREMIUM (64-40 rub)MIDPRICE (39-16 rub) VALUE (<16 rub)

NATIONAL OPEN MARKETS

0

5

10

15

20

25

30

35

40

45

MJ 2004 JA 2004 SO 2004 ND 2004 JF 2005 MA2005

MJ 2005

SUPERPREMIUM (>65 rub) PREMIUM (64-40 rub)

MIDPRICE (39-16 rub) VALUE (<16 rub)

NATIONAL DRUG

4. SWOT 4. SWOT AnalysisAnalysis

3) Increase the prices for

Colgate Superpremium and

Colgate Value according to the

market as far as demand is not

elastic.

Weakness: 1) Low level of the prices

4) To be more active in National Mixed stores with Superpremium and Premiun products, in Drug Stores with Superpremium and Premiun products and in Open Markets with Premium and Midprice products.

Opportunities: 1) Superpremium segment growth 2) Premium segment growth 3) Sales increase in Supermarkets, Minimarkets channel 4) Inelastic demand

Threats: 1) Strong influence of Oral-B at the market (lower distribution level, hight prices policy and active Value growth in segments) 2) P&G takes place in the market (mostly Midprice & Value segments)

Strength: 1) Leading positions in the market 2) High level of the distribution

1) Develop distribution in

Supermarkets, Minimarkets

channel with a strong accent

to Superpremium and

premium brands.

2) -

4. Conclusion:4. Conclusion:

1) Using growth of Superpremium and Premium segments and sales increase in Supermarkets, Minimarkets as well. Develop distribution in this channel with a strong accent to Colgate Superpremium and Colgate Premium brands.

2) Increase the prices for Colgate Superpremium and Colgate Value according to the market as far as demand is not elastic. And grow Profit in these segments, especially in Value segment which demonstrates decrease.

3) Pay attention to the following trends and to be more active in National Mixed stores with Superpremium and Premiun products, in Drug Stores with Superpremium and Premiun products and in Open Markets with Premium and Midprice products.