analyst presentation 2011
TRANSCRIPT
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2011
Welcome to
Colgate-Palmolive India
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2011
FMCG Sector is buoyant
Source: AC Nielsen
Rs. In Billion
6% 2% 8% 8%
22%
22%
15%
20%
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2011
% 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
%
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2011
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) LIMITED ANALYST MEET – MAY 2011
Colgate-Palmolive (India) Ltd
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2011
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
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2011
Recent Launches
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2011
Colgate Sensitive Pro-Relief
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2011
Toothpaste Portfolio
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2011
Gel & Kids Portfolio
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2011
Mouthwash Portfolio
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2011
Toothbrush Portfolio
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2011
Toothpowder Portfolio
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2011
Personal Care / Home Care Portfolio
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2011
MARKET SHARES
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2011
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
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2011
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
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2011
Volume Market Share Toothbrush
- Source: AC Nielsen
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
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2011
Volume Market Share Toothpowder
- Source: AC Nielsen
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
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2011
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
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2011
Colgate-Palmolive India
Very Strong Brand
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2011
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
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2011
“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
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2011
Guinness World Records
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2011
Colgate-Palmolive India
Very Strong Brand
Unbeaten Distribution Network
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2011
Our Flag ship Brand – Colgate Dental Cream
is the largest distributed product in the Toothpaste market
Available in 4.1 MM stores
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2011
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
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2011
Colgate-Palmolive India
Very Strong Brand
Unbeaten Distribution Network
Huge Opportunity to Grow
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2011
Opportunity to increase per capita consumption
Per Capita Consumption
(Grams/Year)
USA 542
China 255
Malaysia 304
Philippines 244
India 127
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2011
A significant opportunity to drive penetration
Source: Indian Readership Survey
Dentifrice = Toothpaste or toothpowder
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2011
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
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2011
Colgate-Palmolive India
Poised to drive growth
through its unique
BUSINESS MODEL
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2011
Business Model
Engage to Build our Brands
Efficiency & Effectiveness in Everything
Innovation for Growth
Leading to Win
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2011
Business Model
Engage to Build our Brands
Efficiency & Effectiveness in Everything
Innovation for Growth
Leading to Win
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2011
Engage to Build our Brands
Strengthening Our Brands
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2011
Strengthening Our Brands
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2011
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2011
Engage to Build our Brands
Partnering with Profession
Strengthening Our Brands
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2011
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
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2011
• 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)
Partnering with Profession
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2011
Engage to Build our Brands
Partnering with Profession
Strengthening Our Brands
Engaging the Shopper
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2011
Engaging the Shopper
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2011
Engaging the Shopper
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2011
Business Model
Engage to Build our Brands
Efficiency & Effectiveness in Everything
Innovation for Growth
Leading to Win
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2011
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
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2011
Business Model
Engage to Build our Brands
Efficiency & Effectiveness in Everything
Innovation for Growth
Leading to Win
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2011
Innovation for Growth
Products that work better
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2011
Colgate Sensitive Pro-Relief
Provides instant and long-lasting relief
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2011
Enamel
Dentin
Pulp
Gum
Bone Recessed Gum
Exposed Dentin tubules
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2011
‘Colgate Total gives you protection from 12 teeth &
gum problems’
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2011
360 Acti Flex- a coach & guide to oral
healthcare
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2011
Innovation for Growth
Products that work better
New Categories
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2011
New Categories – Mouthwash
- Source: AC Nielsen
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
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2011
Innovation for Growth
Products that work better
New Categories
Innovation through Global Technology
Centre
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2011
Innovation through IGTC
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2011
Business Model
Engage to Build our Brands
Efficiency & Effectiveness in Everything
Innovation for Growth
Leading to Win
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2011
• Ethical leadership a mindset
Leading to Win
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2011
• CP Core Values – Caring
– Global Teamwork
– Continuous Improvement
Leading to Win
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2011
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
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2011
NGO - Pratham Anganwadi Program
Dominic Savio Summer Camp Association with NTP+
Leading to Win
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2011
Business Model
Engage to Build our Brands
Efficiency & Effectiveness in Everything
Innovation for Growth
Leading to Win
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2011
FINANCIALS
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2011
Financial Strategy
Increasing Volume
Growing Margin
Reducing Overheads
Increasing Advertising
Increasing Operating Profit
Cash Generation
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2011
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%
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2011
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%
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2011
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%
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2011
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
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2011
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%
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2011
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%
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2011
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
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2011
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%
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2011
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
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2011
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%
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2011
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
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2011
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
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2011
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%
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2011
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