Analyst Presentation 2011

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%

% Growth in Volume

Source : AC Nielsen

2010 Key Category Growth

Market, 11.1

Market, 28.2

Colgate, 13.2

Colgate, 31.0

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

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

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

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

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%

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%

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

2005 2007 2010

Dentist Particpation

2005 2007 2010

Towns Covered

• 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

Efficiency & Effectiveness in Everything….

Strong cost saving & Sustained margin improvement

programs

Gross Margins EBITDA

Business Model

Leading to Win

Products that work better

Colgate Sensitive Pro-Relief

Provides instant and long-lasting relief

Enamel

Dentin

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

2008 2009 2010

Mouthwash Category Market

2008 2009 2010 Mar-11

Plax Market Share

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)

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

Apr-Jun

Jul-Sep

Oct-Dec

Jan-Mar

Apr-Jun

Jul-Sep

Oct-Dec

Jan-Mar

)Quarterly Sales Growth

(% = current year vs previous year)

18.1%17.0%

Net Sales

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

(Rs. C

+15.2%

+13.8%

+15.0%

+15.8%

+13.2%

CAGR 5 Yrs = 14%

Gross Margins

55%57%

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

(Rs. C

Gross Margin % Sales

CAGR 5 Yrs = 17%

Advertising

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

Advt. % Sales

EBITDA

CAGR 5 Yrs = 31%

425 451

15.5% 15.4%

21.7%20.3%

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

(Rs. C

EBITDA % Sales

-13.2%

+62.6%

+14.5%

+51.5%

Profit Before Tax

CAGR 5 Yrs = 27%

19.8%20.4%

24.7%23.4%

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

PBT % Sales

+44.9%

+18.2%

+40.4% +7.3%

20.6%20.7%

16.0%12.7%

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

(Rs. C

Tax Tax Rate

Profit After Tax

CAGR 5 Yrs = 26%

423 403

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

(Rs. C

PAT % Sales

+44.7%

+16.4%

+25.2%

+45.8%

+16.4%

EPS & DPS

31.129.6

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

EPS DPS

Cash Generated from Operations

397385

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

(Rs. C

CAGR 5 Yrs = 26%

Share Price Performance

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

Sensex-19602

CP-904

5 Year Market Appreciation

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

Lets Talk……

Analyst Presentation 2011

malaysiaphilippines

key category growth35

volume source

toothpaste market available

penetration source

ac nielsen period

category growth cagr30colgate

trusted fmcg brand

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