Colgate Palmolive India Ltd
.since 1937
Colgate Palmolive India Limited Slide 1
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
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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.
Colgate Palmolive India Limited Slide 2
Financial Strategy
Sales/ Volume
Margin
Non Variable
Overheads
Advertising
Operating Profit
Colgate Palmolive India Limited Slide 3
Financial Results
Q4 2015-16
Colgate Palmolive India Limited Slide 4
Net Sales
(Rs. Crores)
Baddi
fiscal
impact
+7%
Colgate Palmolive India Limited Slide 5
Gross Margins
Baddi
fiscal
impact
63.7%
Colgate Palmolive India Limited Slide 6
EBDITA
Baddi
fiscal
impact
22.1%
Colgate Palmolive India Limited Slide 7
Profit After Tax
(Rs. Crores)
Baddi
fiscal
impact
-11%
-11%
Colgate Palmolive India Limited Slide 8
Summary Q4 2015-16
Excl Baddi Reported
Net Sales +13% +7%
Gross Margin +160 bps +30 bps
EBITDA 24.7% 22.1%
PAT +14% -11%
- All numbers are excluding Baddi Fiscal impact
Colgate Palmolive India Limited Slide 9
Financial Results
FY 2015-16
Colgate Palmolive India Limited Slide 10
Net Sales
(Rs. Crores)
4,400
Baddi
+10% fiscal
4,200 impact
4,000 4,132
+4%
3,800
3,600
3,400
3,200 3,955
3,000
2014-15 2015-16
Colgate Palmolive India Limited Slide 11
Gross Margins
64.9%
65.0% +200 bps Baddi
fiscal
64.0% impact
62.9%
63.0% 63.8%
62.0%
61.0%
60.0%
59.0%
58.0%
57.0%
56.0%
55.0%
2014-15 2015-16
Colgate Palmolive India Limited Slide 12
EBDITA
24.8%
25.0% 400 bps Baddi
fiscal
24.0% impact
23.0%
22.0%
20.8% 22.5%
21.0%
20.0%
19.0%
18.0%
17.0%
16.0%
15.0%
2014-15 2015-16
Colgate Palmolive India Limited Slide 13
Profit After Tax
(Rs. Crores)
Baddi fiscal /
Argbd impact
+3%
Colgate Palmolive India Limited Slide 14
Summary 2015-16
Excl Baddi Reported
Net Sales +10% +4%
Gross Margin +200 bps +90 bps
EBITDA 24.8% 22.5%
PAT +32% +3%
- All numbers are excluding Baddi Fiscal and Aurangabad VRS impact
Colgate Palmolive India Limited Slide 15
It has been a challenging
environment
Colgate Palmolive India Limited Slide 16
Economy & Markets are
trending positively
Colgate Palmolive India Limited Slide 17
GDP
8.9
8.6
7.3 7.5
6.7 6.9
5.1
FY15
FY16
FY10
FY11
FY12
FY13
FY14
Source: Citibank reports (old series till FY13)
Colgate Palmolive India Limited Slide 18
FMCG Market
11.0%
9.8% 9.7%
9.2% 9.2%
7.8% 8.1%
6.8% 7.0% 6.8% 7.0%
3.9% 2.3%
3.2%
4.6% 1.6% 1.6%
4.3% 5.1%
4.8% 7.1% 7.4%
6.0% 4.5% 5.0% 5.4%
5.2% 5.1%
3.9% 4.0%
3.0% 2.3% 2.1%
2014 2015 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16
Consolidated Volume Growth Pricing Growth Nominal Growth
Colgate Palmolive India Limited Slide 19
Toothpaste Market
10.1%
7.2% 7.7%
7.0% 6.9%
6.2% 6.2%
4.9% 5.3% 5.1%
4.3%
8.9% 5.4%
5.5%
7.5% 7.7% 7.0%
6.7% 6.4%
6.1% 6.4%
2.5% 3.9%
2.2%
0.8% 0.9% 0.8%
-2.6% -2.0% -2.4% -1.9% -2.2%
-4.1%
Consolidated Volume Growth Pricing Growth Nominal Growth
2014 2015 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16
Colgate Palmolive India Limited Slide 20
Continuous focus on our
strategic initiatives
Colgate Palmolive India Limited Slide 21
Key Strategic Initiatives
Engage to build our brands
Innovation for growth
Effectiveness & Efficiency
Leading to Win
Colgate Palmolive India Limited Slide 22
Toothpaste Volume Share
56.1 56.8 57.2
54.5 55.7
52.2 53.3 52.7
48.8 49.4
2.9X
25.1 24.6 23.8
22.8 22.6 23.3 22.8 21.7
19.8 19.4 Competitor 1
14.8 14.0 15.5
12.9 13.7 13.9 13.4 13.4
11.9 12.2
Competitor 2
2007 2008 2009 2010 2011 2012 2013 2014 2015 YTD16
CP Toothpaste Competitor 1 Competitor 2
Source : AC Nielsen (new panel data from 2013)
Colgate Palmolive India Limited Slide 23
Toothbrush Volume Shares
46.2
44.5
42.8
42.3
39.8
38.4 38.0
35.9 2.9X
33.4
18.8 18.4
Competitor 1
17.8 18.4 17.8
14.8 15.7
11.4 11.9
Competitor 2
10.9
9.4
7.2 7.2 7.5 8.0
5.9 6.4 6.7
2008 2009 2010 2011 2012 2013 2014 2015 YTD16
CP Toothbrush Competitor 1 Competitor 2
Source : AC Nielsen (new panel data from 2013)
Colgate Palmolive India Limited Slide 24
Most Trusted Brand
th
5 year in a row!
Colgate Palmolive India Limited Slide 25
And we are Investing
to Grow
Colgate Palmolive India Limited Slide 26
Key Growth Drivers
Innovation
Engaging with consumers to build
our brands
Winning on the Ground
Strong professional partnerships
Colgate Palmolive India Limited Slide 27
Innovation Trend
2013 2014 2015
Colgate Palmolive India Limited Slide 28
Innovating to leverage local insights
Colgate Active Salt Neem
Unique formulation with Neem and Salt
Colgate Palmolive India Limited Slide 29
Revolutionizing Mid Tier toothbrushes
Colgate Zig Zag Black
First mass black toothbrush
Colgate Palmolive India Limited Slide 30
Disrupting the category
Colgate Total Charcoal Deep Clean
First Charcoal infused toothpaste in India
Colgate Palmolive India Limited Slide 31
And we continue the
innovation trend in 2016
Colgate Palmolive India Limited Slide 32
Establishing a new category
Colgate Pain Out Dental Gel
Express Relief from Tooth pain
Colgate Palmolive India Limited Slide 33
Break-thru Bristle Technology
Slimsoft Tri-tip
Each bristles has 3 tips
for superior cleaning
Colgate Palmolive India Limited Slide 34
Premium Sensitive Toothbrush
Slimsoft Sensitive
First sensitive toothbrush
with fully tapered bristles
Colgate Palmolive India Limited Slide 35
Innovating across price tiers
Superflexi Black
Indias first value-tier
black toothbrush
Colgate Palmolive India Limited Slide 36
Specialized offering
Colgate A1
Superior Cleaning &
Long Lasting Bristles
Colgate Palmolive India Limited Slide 37
Active Salt gets a Makeover!
Colgate Palmolive India Limited Slide 38
Excitement in Kids category
New Colgate Kids toothpaste for 2-5 year olds
Fun filled exciting animal characters
Colgate Palmolive India Limited Slide 39
Combine technology & goodness of
natural ingredients
First Sensitivity toothpaste with Clove
Colgate Palmolive India Limited Slide 40
Naturals Segment
Watch this space
Colgate Palmolive India Limited Slide 41
Key Growth Drivers
Innovation
Engaging with consumers to build
our brands
Winning on the Ground
Strong professional partnerships
Colgate Palmolive India Limited Slide 42
Strengthening equity - Real Winners, Real Impact
Padho aur Badho
8.5 Million connects
Colgate Palmolive India Limited Slide 43
Core message of flexible neck
Colgate Palmolive India Limited Slide 44
Strengthening equity with impactful IMCs
TVC Mobile
Digital
Print
In-Store
Colgate Palmolive India Limited Slide 45
Disruptive Interruption format IMC
CAS Neem Safari TVC
Colgate Palmolive India Limited Slide 46
Strengthening equity with fresh news
IMC Idea: Infectious energizing freshness
Colgate Palmolive India Limited Slide 47
Key Growth Drivers
Innovation
Engaging with consumers to build
our brands
Winning on the Ground
Strong professional partnerships
Colgate Palmolive India Limited Slide 48
Increasing distribution & availability
Colgate available in 5MM+ outlets
Colgate Palmolive India Limited Slide 49
Increasing distribution & availability
Rural distribution Vans
3X
1,031
951
801
340
2012 2013 2014 2015
Invested behind infrastructure
Colgate Palmolive India Limited Slide 50
Superior In-Store Execution
Impactful In-store visibility for new IMCs
Colgate Palmolive India Limited Slide 51
Superior In-Store Execution
Own the Store in traditional trade
Colgate Palmolive India Limited Slide 52
Servicing the Growth
Toothpaste facility at Sanand, Gujarat.
Expanding to meet demand
Colgate Palmolive India Limited Slide 53
Servicing the Growth
Toothbrush facility at Sricity, Andhra Pradesh
Phase 2 expansion plans to build capacity
Colgate Palmolive India Limited Slide 54
Key Growth Drivers
Innovation
Engaging with consumers to build
our brands
Winning on the Ground
Strong professional partnerships
Colgate Palmolive India Limited Slide 55
Partnering with the
Indian Dental Association
Continuing dental education
programs in 450 IDA branches
National & State conferences
IDA-Colgate Scholarships
Oral Health Month
Enhancing engagement & education with 40,000 + IDA dentists
Colgate Palmolive India Limited Slide 56
Headroom for Growth
Colgate Palmolive India Limited Slide 57
Consumption
Market size
DOUBLES
if PCC reaches
China levels
Source: Fractal Analytics - Market Analyzer Mar16
Colgate Palmolive India Limited Slide 58
Premiumization
Market size
DOUBLES
Average Selling 18 10 12 6 if ASP reaches
Price($) Per KG of
Toothpaste 3X 1.6X 1.9X X China levels
Average Selling
Price($)
2.8 1.3 0.7 0.2
Per Toothbrush 11.3X 5.2X 2.8X X
Source: Fractal Analytics - Market Analyzer Mar16
Colgate Palmolive India Limited Slide 59
Leading to Win
Working with our Community
Colgate Palmolive India Limited Slide 60
Bright Smiles, Bright Futures TM
Over 125 million school children
Contacted across 2.9 lac schools
Colgate Palmolive India Limited Slide 61
Oral Health Month
35,000 dentists
1000+ cities
Target: 6 Million free dental check-ups
Colgate Palmolive India Limited Slide 62
Working with NGO Partners
Addressing Inequalities- Payroll giving
program to support education and
nutrition for children affected and
infected by HIV.
Providing quality education to
underprivileged children;
Program Read India- improve
basic reading, writing and
arithmetic skills
Conservation of Natural Resources, Vocational
training for self sustenance of villagers, Girl
child empowerment.
Colgate Palmolive India Limited Slide 63
We continue to deliver long
term sustainable growth
Colgate Palmolive India Limited Slide 64
Net Sales
Colgate Palmolive India Limited Slide 65
Gross Margin
Colgate Palmolive India Limited Slide 66
PAT
Colgate Palmolive India Limited Slide 67
EPS
Colgate Palmolive India Limited Slide 68
DPS
Colgate Palmolive India Limited Slide 69
Well-poised to continue to grow
shareholder value
Colgate Palmolive India Limited Slide 70
Colgate Palmolive India Ltd
.since 1937
Colgate Palmolive India Limited Slide 71
Lets Talk
Colgate Palmolive India Limited Slide 72
