Colgate-Palmolive (India) Limited

Analyst Meet - 15 May 2024

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&Safe
We continue
Harbour to win
Statement

This communication, except for the historical data, may contain forward-looking statements,
including words, phrases, numbers that set forth anticipated results based on management’s
current plans and assumptions. These statements are made on the basis of the Company’s
views and assumptions as of this time. The Company does not, nor does any other person,
assume responsibility for the accuracy and completeness of those statements. The Company
cautions investors that any such forward-looking statements are not guarantees of future
performance and that actual events or results may differ materially from those statements.
Actual events or results may differ materially because of factors that affect international
businesses and global economic conditions, as well as matters specific to the Company and the
markets it serves. The Company based on any of the above factors is free to modify, amend,
alter or take necessary corrective changes in such manner that the forward-looking statements
contained herein may alter, and the Company undertakes no obligation to update these
statements whether as a result of new information, future events or otherwise, except as
required by law or by the rules and regulations.

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 2023-24 Performance Update

Let’s talk Our View of Oral Care

about
Strategy in Action

Financial Performance

3
4
 2023-24 Performance Update

Let’s talk Our View of Oral Care

about
Strategy in Action

Financial Performance
 &GROW:
We continue to win Sustainable Growth
Delivering

Accelerating Domestic Growth Margin Strength

Covid
Impact

6
Source: Internal Data
 &STRENGTHEN:
We continue to win
Our Brand Health has become stronger

Awareness Consideration Oral Care Expert North Star

Top of Mind Brand of First choice

64A 67AB 61AB 75A 78AB

61 73
56 57

2022 2023 2024 YTD 2022 2023 2024 YTD 2022 2023 2024 YTD

7
Source: Kantar Track
 SIMPLIFY: Business processes across functions

Advanced Analytical
AI Led Planogramming Simplifying Supply Chain
Marketing-Mix Module

95% Compliance in on-shelf AI/ML demand forecasting

Maximise Media ROI
availability Optimised Network Inventory

8
Source: Internal Data
 2023-24 Performance Update

Let’s talk Our View of Oral Care

about
Strategy in Action

Financial Performance

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 Category Volume & Premiumisation
Toothpaste

Indexed to
U+R Urban Rural
Philippines

Per Capita
0.6 0.7 0.5
Consumption

20% Urban Households brush

twice a day

55% Rural Households do not

brush daily

Toothbrush

78%
Category
below INR 40
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Source: Internal Data, ACN Retail Audit
 We’re best placed to do this

Most Penetrated
India’s # 1
Oral Care Brand
9/10 households

Most Recalled
India’s Most 67% top of mind

Loved
Most Considered
Oral Care Brand
87%
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Source: Kantar World Panel
 We’re best placed to do this

Wide portfolio CP

catering to All #2 Player

#3 Player

Needs #4 Player
#5 Player

ASP Index <80 81-100 101-180 181-250 250+

CP

#2 Player

3X 1.4X #3 Player
vs. #2 brand vs. #2 brand #4 Player
#5 Player

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Source: ACN Retail Audit
 2023-24 Performance Update

Let’s talk Our View of Oral Care

about
Strategy in Action

Financial Performance
Strategy in Action: Growth Pillars

Lead
Toothpaste Premiumize Lead Category
Strategic
Pillars Category through Science Growth in Build Personal
Based Superior Toothbrush & Care
a) Volume Innovation Devices
b) Grow Core

Superior Mix (Products, Communication, Execution)

Driving Financial Efficiency

Enablers
Digital at the Core

Organizational and People Capabilities

Environment, Social, Governance (ESG)

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Strategy in Action: Growth Pillars

Lead
Lead Drive
category Build
Toothpaste Science led
growth in Personal
Category Premiumisation
Toothbrush Care
Growth
& Devices

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 We start with Personal Care today!

Palmolive’s equity is built over 73 years

~60% of target audience is aware

Clear strategy to build body wash

Category penetration 3% AI (U+R)

Strong global portfolio & technology

Aiding accelerated innovations

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Source: Kantar World Panel, Internal data
 Build Palmolive Body Wash

New Range launched New Communication live On Growth Momentum

3 new variants with ‘Savour The Feeling’ campaign 1.2x $SOM v prev quarter in MT
improved fragrance

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Source: ACN Retail audit, Internal Data
18
 Strategic Diversification: Large opportunity

Wide Global Portfolio Assess inorganic

to choose from growth opportunities

19
Source: Internal Data
Strategy in Action: Growth Pillars

Lead
Lead Drive
category Build
Toothpaste Science Led
growth in Personal
Category Premiumisation
Toothbrush Care
Growth
& Devices

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Driving Consumption: Urban- Brush at night

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 Driving Consumption: Urban- Brush at night

22
Source: Internal Data
 Driving Consumption: Amplifying our efforts

Bright Smiles, Bright Futures®, Govt. Partnerships and Public Policy

50+ 25k
years schools

176.2mn 10mn
kids reached Additional kids
By 2025

23
Source: Internal Data
 Accelerating the Core via Superiority

New communication on pack

Spotlighting Benefit & Technology

Rural reach program

Wall paintings in 18k villages & towns

Curated Commercial plans

By State X Retail Environment

24
Source: Internal Data
 Accelerating the Core via Superiority

Enhanced product experience

10X Longer lasting cooling
Stand up tubes, new packaging

Accelerate Rs. 20 growth

Strong commercial support

Continuous activations to drive

consumer engagement

25
Source: Internal Data
 Accelerating the Core via Superiority

Source: Kantar Link Test, Internal Data

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 Accelerating the Core via Superiority

Strengthened product efficacy

New and improved Active Salt Technology
to fight painful dental problems

New superior communication

Tested in top 15% of advertising

Strong Commercial Investment

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Source: Kantar Link Test, Internal Data
 Accelerating the Core via Superiority

Source: Kantar Link Test, Internal Data

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 Accelerating the Core via Superiority

Consideration for Key Sub-Brands

76AB
72A
65
54AB
50A 47AB
43 44A
40

2022 2023 2024 YTD 2022 2023 2024 YTD 2022 2023 2024 YTD

Strong Teeth MaxFresh Active Salt

29
Source: Kantar Track
Strategy in Action: Growth Pillars

Lead
Lead Drive
category Build
Toothpaste Science led
growth in Personal
Category Premiumisation
Toothbrush Care
Growth
& Devices

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 Premiumise: Own Proactive Health

Build Accessibility, Drive Trials

Access pack launched
9 Mn Trials annual

Sweet Spot of Premiumization

Accelerating in New Retail

MT+eCom $SOM 1.2x v previous yr

31
Source: Internal Data
 Premiumise: Create Desire for Whitening

Strong Influencer outreach

ReachingHealth
Own Proactive 50 Mn consumers

Targeted Media approach

Cohort wise sharp media plan

Chair To Sink Offerings

Whitening Booster launch in June

32
Source: Internal Data
 Build Therapeutics Credentials with Profession

Strategic business pillar

4.5x growth v overall business in 2023

Best-in-class Dentist Connects

2.5 Mn+ annual touchpoints

100+ Dental Colleges Tie-ups

1.8X higher than closest competitor

33
Source: Internal Data
Strategy in Action: Growth Pillars

Lead
Lead Drive
category Build
Toothpaste Science led
growth in Personal
Category Premiumisation
Toothbrush Care
Growth
& Devices

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 Lead Toothbrush Category Growth

Superior portfolio across price tiers

Upselling to retailers with promotions

Leveraging strength of Toothpaste

Cross promotions for trade, consumer

Curated Commercial plans

By State X Retail Environment

35
Source: Internal Data
 Lead Toothbrush Category Growth
UP
$SOM Trend
(Indexed)

Competition 1

2021 2022 2023 Q1’23 Q2’23 Q3’23 Q4’23 Jan’24 Feb’24

36
Source: ACN Retail audit
Strategy in Action: Enablers

Lead
Toothpaste Premiumize Lead Category
Strategic
Pillars Category through Science Growth in Build Personal
Based Superior Toothbrush & Care
a) Volume Innovation Devices
b) Grow Core

Superior Mix (Products, Communication, Execution)

Driving Financial Efficiency

Enablers
Digital at the Core

Organizational and People Capabilities

Environment, Social, Governance (ESG)

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 Elevating Modern Trade shopper experience

Benefit first planogramming

For ease of shoppability

Visual storytelling
Engagement & education zones

Premiumization laddering
3x Premium $SOM &
~20% ASP growth month on month

38
Source: Internal Data
 Digital at the Core: Premiumising our Digital Shelves

Market Share Accretive

1.2x $SOM Index v TT in 2023

Growth Accretive
3X growth of eCommerce business
v overall in 2023

Margin Accretive
Higher Premium Contribution

39
Source: ACN Retail audit, Internal Data
 Organisation & People Priorities

We are shaping a We help our people We strive to create a

future ready org grow everyday culture of belonging
➔ Agile, growth oriented ➔ Flagship programs for ➔ Culture DNA assimilation
org design & resourcing Fundamentals, People &
Strategic leadership, Analytics ➔ Industry leading inclusion
policies
➔ Bringing in Top Talent
➔ Custom programs for ind./
from the market for ➔ Holistic wellbeing focus
team needs
select positions
➔ Internal Talent Marketplace

~2X
Time with Scores for Clarity if Direction,
Consumers Empowerment, Innovation, Circus street
Digital skills

40
Source: Internal Data
 Environment & Society at our Core
GOAL PROGRESS
Maintain TRUE® Zero Certification Steady collection of
Waste Waste certification maintained for all over 100% of plastic
Management waste under EPR
for owned plants CP plants

Reusable, recyclable 83% Recyclable Over 100% collection

100% by 2025
or compostable Packaging of post consumer
(Usage, Collection)
plastic packaging (Primary & Secondary) plastic since 2021

75% of factories are 407+ Mn litres of

Water Net Zero water at water positive water replenished
Usage India level by 2025 (Goa, SriCity & through CSR
Sanand) programs since 2018

176+ Mn Children
Bright Smiles, Oral health education for Strategic Partnerships
reached since 1976.
10Mn children with UN Bodies and
Bright Futures® additionally by 2025
(5.2 Mn children engaged
States (AP, UP)
in FY 2023-24)

41
Source: Internal Data
 2023-24 Performance Update

Let’s talk Our View of Oral Care

about
Strategy in Action

Financial Performance

42
Driving Financial Efficiency

DELIVERING
OPERATING
PROFITS

ad g
er isin
s
In Br
ve an

Ov tim
he
s t ds
in

Op
g
in

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Q4 2023-24 Quarter Performance

Growth Momentum Strong Margins Robust Profitability

₹ 1,481 Crore Gross Margin 69.1% ₹ 380 Crore

Net Profit after tax (NPAT)
NPAT growth %

+10.4% y-o-y EBITDA Margin 35.9% +20.1% y-o-y

+10.7% ~250 bps +18.2%

Domestic growth EBITDA Margin Expansion Invest in Brand Building

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Delivering Sustainable Growth

Accelerating Domestic Growth Margin Strength

Covid
Impact

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Funding the Growth

Gross Margin expansion ~400 bps

Cost Savings
Global Supply Synergies Product Superiority

Packaging savings Packaging Innovation

Optimised plant allocation

ESG – Recyclable Material 69.5%
Enhanced brand Experience
Automation Initiatives
Investments
Favourable Product Mix
65.4%
Import Substitution

FY ‘23 FY ‘24

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Invest to Grow

Continued Investment in Brand Building

Advertising as a % of Sales Driving Consumption -

+125 bps y-o-y ❏ Brush at Night

20% ❏ Bright Smiles, Bright Futures®

y-o-y

Funding the Strategy -

❏ Strengthening Core
12.2%* 13.5%*
❏ Driving Premiumisation

In ₹ Crore ❏ Building Personal Care

* % of Net Sales

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Enhancing Shareholder Value

Improved Cash Generation Higher RoCE

In ₹ Crore

24%
y-o-y

* Excluding Changes in Bank Balances

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&Consistent
We continueDividend
to win Payouts

Excellent Value Creation - 24% CAGR Since IPO (45 years)

Apr’24

Colgate Apr’23 - Apr’24

+87%

Apr’23

+35% +18%
S&P BSE 100 +36% NIFTY FMCG
NIFTY 100
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 Strategy in action

Results being delivered

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 Colgate leads the Oral care category

Headroom to Accelerate Growth

Diversification presents a Significant Opportunity

GROW. STRENGTHEN. SIMPLIFY.

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Q&A
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