Welcome to Colgate-Palmolive India - Colgate® Oral Care · PDF fileCOLGATE-PALMOLIVE (INDIA) LIMITED ... CATEGORIES / PRODUCTS Oral Care Personal Care Household Care From the Dentist

COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2011

Welcome to

Colgate-Palmolive India


FMCG Sector is buoyant

Source: AC Nielsen

Rs. In Billion

6% 2% 8% 8%

22%

22%

15%

20%


% Growth in Volume

Source : AC Nielsen

2010 Key Category Growth

Market, 11.1

Market, 28.2

Colgate, 13.2

Colgate, 31.0

-

5

10

15

20

25

30

35

Toothpaste Toothbrush

%


3 Yr. Category Growth (CAGR)

% Growth in Volume

Source : AC Nielsen

Market, 10.3

Market, 22.8

Colgate, 14.7

Colgate, 26.6

-

5

10

15

20

25

30

Toothpaste Toothbrush

%


Colgate-Palmolive (India) Ltd


CATEGORIES / PRODUCTS

Oral Care Personal Care Household Care From the Dentist

Toothpastes

Toothbrushes

Toothpowder

Mouthwash

Shower Gels

Liquid Hand Wash

Shave Preps

Skin Care

Hair Care

Surface Care

Gingivitis Treatment

Sensitivity Treatment

Tooth Whitening

Fluoride Therapy

Mouth Ulcer Treatment

Speciality Cleaning


Recent Launches


Colgate Sensitive Pro-Relief


Toothpaste Portfolio


Gel & Kids Portfolio


Mouthwash Portfolio


Toothbrush Portfolio


Toothpowder Portfolio


Personal Care / Home Care Portfolio


MARKET SHARES


Strategic Position

Source: AC Nielsen

Period : Apr to Mar 11

Category Volume SOM %Market Position Relative Share

Toothpaste 53.1 1 2.3

Toothpowder 46.4 1 1.5

Toothbrush 40.3 1 2.2


Volume Market Share Toothpaste

- Source: AC Nielsen

2008 2009 2010

Apr- Mar

2010

Apr- Mar

2011

Colgate 49.4 52.4 53.5 52.9 53.1

Competitor 1 24.5 22.8 22.5 22.6 22.8

All Other 26.1 24.8 24.0 24.5 24.1


Volume Market Share Toothbrush


2008 2009 2010

Apr- Mar

2010

Apr- Mar

2011

Colgate 38.4 40.0 40.8 40.9 40.3

Competitor 1 16.0 16.0 17.4 15.5 18.4

Competitor 2 13.3 12.4 10.9 12.1 10.9

All Other 32.3 31.6 30.9 31.5 30.4


Volume Market Share Toothpowder


2008 2009 2010

Apr-Mar

2010

Apr-Mar

2011

Colgate 48.4 48.9 47.1 48.7 46.4

Competitor 1 29.1 29.3 29.9 29.5 30.1

All Other 22.5 21.8 23.0 21.8 23.5


Category Contribution (% to Company Sales)

96.1% 96.4%

2.6% 2.1%1.3% 1.4%

70%

75%

80%

85%

90%

95%

100%

105%

2009-10 2010-11

ORAL CARE PERSONAL CARE HOME / OTHERS



Very Strong Brand


Colgate was voted

“The Most Trusted

FMCG Brand” in India

for the year in the

Brand Equity Annual

survey 2010 across all

brands and categories.

“Colgate” is the only

Brand to be in the Top

3 consistently for the

last 10 years


“Hall of FAME” for bei

Top 3 f

Colgate was presented the “Hall of Fame” for being in the Top 3 consistently for 10 years


Guinness World Records



Very Strong Brand

Unbeaten Distribution Network


Our Flag ship Brand – Colgate Dental Cream

is the largest distributed product in the Toothpaste market

Available in 4.1 MM stores


Distribution Network

Weighted Distribution of Colgate Toothpaste

2008 2009 2010

Urban 97% 97% 97%

Rural 93% 95% 94%

U+R 95% 96% 96%

Coverage- 4.56 MM stores



Very Strong Brand

Unbeaten Distribution Network

Huge Opportunity to Grow


Opportunity to increase per capita consumption

Per Capita Consumption

(Grams/Year)

USA 542

China 255

Malaysia 304

Philippines 244

India 127


A significant opportunity to drive penetration

Source: Indian Readership Survey

Dentifrice = Toothpaste or toothpowder


Urban-Rural Contribution

Source: A C Neilsen (Toothpaste Volume Market)

65% 64% 62% 61% 60%

35% 36% 38% 39% 40%

0%

20%

40%

60%

80%

100%

2006 2007 2008 2009 2010

Urban Rural



Poised to drive growth

through its unique

BUSINESS MODEL


Business Model

Engage to Build our Brands

Efficiency & Effectiveness in Everything

Innovation for Growth

Leading to Win


Business Model




Leading to Win



Strengthening Our Brands






Partnering with Profession



Partnering with the Profession for

Oral Health Month

Reached to 3.4 mn consumers in 2010

3500

8300

24000

2000

5000

8000

11000

14000

17000

20000

23000

26000

2005 2007 2010

Dentist Particpation

50

175

1005

0

200

400

600

800

1000

2005 2007 2010

Towns Covered

OHM 2010 30 sec.mp4


• Ask the Dentist

• Indian Dental Association (IDA) Seal of Acceptance granted to

– Colgate Dental Cream

– Colgate Total & Colgate Total Professional

– Colgate 360 Toothbrush

– Colgate Sensitive Toothpaste & Toothbrush

– Colgate Plax Mouthwash (Freshmint & Peppermint)






Engaging the Shopper






Business Model




Leading to Win


41%

61%

200

400

600

800

1,000

1,200

1,400

Efficiency & Effectiveness in Everything….

Strong cost saving & Sustained margin improvement

programs

Gross Margins EBITDA

9%

20%

-

50

100

150

200

250

300

350

400

450

500


Business Model




Leading to Win



Products that work better


Colgate Sensitive Pro-Relief

Provides instant and long-lasting relief


Enamel

Dentin

Pulp

Gum

Bone Recessed Gum

Exposed Dentin tubules


‘Colgate Total gives you protection from 12 teeth &

gum problems’


360 Acti Flex- a coach & guide to oral

healthcare




New Categories


New Categories – Mouthwash


487

601

956

200

300

400

500

600

700

800

900

1000

1100

2008 2009 2010

Mouthwash Category Market

59%

Rs.

MM

6%

7%

18%

22%

4%

9%

14%

19%

24%

2008 2009 2010 Mar-11

Plax Market Share

% M

S




New Categories

Innovation through Global Technology

Centre


Innovation through IGTC


Business Model




Leading to Win


• Ethical leadership a mindset

Leading to Win


• CP Core Values – Caring

– Global Teamwork

– Continuous Improvement

Leading to Win


Contributing to the Communities

Where we Live & Work : Bright Smiles Bright Future

BSBF INDIA reaching 12 mn children annually (urban & rural)

3.6

6.9

12.2

2

4

6

8

10

12

14

2000 2006 2010

BSBF Reach (MM)

Leading to Win


NGO - Pratham Anganwadi Program

Dominic Savio Summer Camp Association with NTP+

Leading to Win


Business Model




Leading to Win


FINANCIALS


Financial Strategy

Increasing Volume

Growing Margin

Reducing Overheads

Increasing Advertising

Increasing Operating Profit

Cash Generation


Grow Topline

400

420

440

460

480

500

520

540

560

580

600

Apr-Jun

2009

Jul-Sep

2009

Oct-Dec

2009

Jan-Mar

2010

Apr-Jun

2010

Jul-Sep

2010

Oct-Dec

2010

Jan-Mar

2011

(Rs

. Cro

res

)Quarterly Sales Growth

(% = current year vs previous year)

13.0%

13.2%

13.8%

12.6%

14.8%

18.1%17.0%

13.4%


Net Sales

1,295

1,473

1,695

1,962

2,221

1,000

1,100

1,200

1,300

1,400

1,500

1,600

1,700

1,800

1,900

2,000

2,100

2,200

2,300

2006-07 2007-08 2008-09 2009-10 2010-11

(Rs. C

rore

s)

+15.2%

+13.8%

+15.0%

+15.8%

+13.2%

CAGR 5 Yrs = 14%


Gross Margins

719

841

954

1,186

1,349

55%57%

56%

60%

61%

0

200

400

600

800

1,000

1,200

1,400

2006-07 2007-08 2008-09 2009-10 2010-11

(Rs. C

rore

s)

Gross Margin % Sales

CAGR 5 Yrs = 17%


Advertising

207

257

272

299

349

15.9%

17.4%

16.0%

15.3%

15.7%

10%

11%

12%

13%

14%

15%

16%

17%

18%

100

140

180

220

260

300

340

380

2006-07 2007-08 2008-09 2009-10 2010-11

(Rs

. Cro

res

)

Advt. % Sales


EBITDA

CAGR 5 Yrs = 31%

151

229

262

425 451

11.6%

15.5% 15.4%

21.7%20.3%

1%

3%

6%

8%

11%

13%

16%

18%

21%

23%

50

125

200

275

350

425

500

2006-07 2007-08 2008-09 2009-10 2010-11

(Rs. C

rore

s)

EBITDA % Sales

-13.2%

+62.6%

+14.5%

+51.5%

+6.0%


Profit Before Tax

CAGR 5 Yrs = 27%

202

292

345

485

520

15.6%

19.8%20.4%

24.7%23.4%

0%

5%

10%

15%

20%

25%

30%

60

110

160

210

260

310

360

410

460

510

2006-07 2007-08 2008-09 2009-10 2010-11

(Rs

.Cro

res

)

PBT % Sales

+7.3%

+44.9%

+18.2%

+40.4% +7.3%


Tax

41

6055

62

117

20.6%20.7%

16.0%12.7%

22.6%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

30

40

50

60

70

80

90

100

110

120

130

2006-07 2007-08 2008-09 2009-10 2010-11

(Rs. C

rore

s)

Tax Tax Rate


Profit After Tax

CAGR 5 Yrs = 26%

160

232

290

423 403

12.4%

15.7%

17.1%

21.6%

18.1%

5.0%

7.0%

9.0%

11.0%

13.0%

15.0%

17.0%

19.0%

21.0%

50

100

150

200

250

300

350

400

450

2006-07 2007-08 2008-09 2009-10 2010-11

(Rs. C

rore

s)

PAT % Sales

+44.7%

+16.4%

+25.2%

+45.8%

-4.9%

+16.4%


EPS & DPS

11.8

17.0

21.3

31.129.6

9.5

13.0

15.0

20.0

22.0

2.0

7.0

12.0

17.0

22.0

27.0

32.0

2006-07 2007-08 2008-09 2009-10 2010-11

(Rs.)

EPS DPS


Cash Generated from Operations

154

282

319

397385

50

100

150

200

250

300

350

400

450

2006-07 2007-08 2008-09 2009-10 2010-11

(Rs. C

rore

s)

CAGR 5 Yrs = 26%


Share Price Performance

300

400

500

600

700

800

900

10,000

12,000

14,000

16,000

18,000

20,000

22,000

Apr-07 Apr-08 Apr-09 Apr-10 Apr-11

Sensex Colgate

344

13872

Sensex-19602

CP-904


5 Year Market Appreciation

11.4%

19.9%

25.2%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

Sensex BSE FMCG Colgate


Shareholder Returns

Year Shares Value (LC)

1978 IPO - 250 6,250

1994 Rights - 1,280 25,600

2010 Holdings -14,080 9,504,000

2011* Holdings - 14,080 11,968,000 * as on March 31, 2011

Dividend Received 2,189,262

(includes Capital reduction)

Compounded return of 27% since the IPO

+26%


Lets Talk……

Documents

Welcome to Colgate-Palmolive India - Colgate® Oral Care · PDF fileCOLGATE-PALMOLIVE (INDIA) LIMITED ... CATEGORIES / PRODUCTS Oral Care Personal Care Household Care From the Dentist