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Barclays Capital Back -to-SchoolConsumer Conference
September 3, 2013
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2Q 2013
Not ice for Investor Presentat ion
Our presentat ion and the related webcast contains n on -GAAP f inancial measures, wh ich
di f fer from o ur reported resul ts prepared in accordanc e U.S. general ly accepted accou nt ingpr incip les (GAAP). These non-GAAP f inancial measures of op erat ing resul ts for the threeand six m onth s ended Ju ne 30, 2013 exclude the impact of the fol low ing i tems : chargesresul t ing from the imp lementat ion o f the 2012 Restructur ing Program, the one-t ime chargeresul t ing from the Venezuela devaluat ion, a charge associated with a Europ ean c ompet i t ionlaw matter , cos ts related to the sale of land in Mexico and co sts asso ciated w ith var iousbus iness real ignm ent and other cost-saving ini t iat ives. A com plete, quant i tat ivereconci l iat ion between our reported resul ts and these non -GAAP f inancial measures is
available in the For Investors section of our web site at http://www.colgatepalmolive.com.The Company also reports organic sales growth , wh ich exclud es the imp act of foreignexchange, acquisitions and divestments. See the For Investors section of our web site atht tp: / /ww w.colgatepalmol ive.com for a com par ison of organic sales growth to sales growthin accordance with GAAP.
The Company d ef ines free cash f low before div idends as Net cash provid ed by op erat ionsless Capi ta l expend i tures. Free cash f low before div idends is not a measure of cashavai lable for discret ionary expendi tures s ince the Company h as certain non -discret ionaryobl igat ions s uch as debt service that are not dedu cted from the measure. Free cash f lowbefore div idends is n ot a GAAP measurement and may not be com parable to sim i larly t i t ledmeasures reported by other companies. See the For Investors section of our web site atht tp: / /ww w.colgatepalmol ive.com for a comp ar ison of free cash f low before div idends to Netcash prov ided by op erat ions as reported in accord ance with GAAP.
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2Q 2013
Not ice for Investor Presentat ion
Our presentat ion and the related webcast m ay also c ontain forw ard- look ing statements.Such s tatements may relate, for example, to sales or uni t v olum e grow th, organic salesgrow th, prof i t or prof i t margin grow th, earnings g row th, f inancia l goals, the impact ofcurrency d evaluat ions, exch ange controls, pr ice controls and labor unrest , inclu ding inVenezuela, cos t-reduct ion plans in cludin g the 2012 Restructu r ing Program, tax rates, newprod uct int rodu ct ions o r comm ercial investm ent levels. These statements are made on thebas is of our v iews and assumpt ions as of th is t ime and we und ertake no o bl igat ion toupd ate these statements. We caut ion investors that any suc h forward- looking s tatementsare not guarantees o f future perform ance and that actual events o r resul ts m ay di f fer
materially from those statements. Investors should consult the Companys filings with theSecur i t ies and Exchang e Commis sion ( including th e inform at ion set for th und er the capt ionRisk Factors in the Companys Annual Report on Form 10-K fo r the year ended December31, 2012) for inform at ion about cer ta in factors th at could caus e such d i f ferences. Copies ofthese filings may be obtained upon request from the Companys Investor RelationsDepartment or on the Companys web site at http://www.colgatepalmolive.com .
References to market share in this presentat ion are based on a comb inat ion of co nsump t ionand market share data provided b y third -par ty vend ors, pr imar i ly Nielsen, and internalest im ates. All market share references represent th e percentage of the dollar value of salesof our p rodu cts, relative to all produ ct sales in the category in the cou ntr ies in wh ich theCompany com petes and pu rchases data.
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Today
Streng then ing ourfundamentals
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Today
Streng then ing ourfundamentals
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Long h is toryo f strong resu lts
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Top l ine Grow th
2002-06CAGR 2007 2008 2009 2010 2011 2012
Q12013
Q22013
Volume(excludingdivestitures)
+5.6% +7.0% +4.0% +0.5% +3.0% +4.0% +3.5% +4.5% +4.5%
OrganicGrowth +5.3% +8.0% +9.5% +6.5% +3.0% +4.0% +6.0% +6.0% +5.5%
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6.9 7.07.4
8.2 8.58.8 8.7 8.8 9.0 9.1 9.3
9.910.6
11.412.2
13.8
15.3 15.3 15.6
16.717.1
'92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12
Net Sales($ B il l ion s)
Compound Grow th +4.6%
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37.9%
44.2%44.6%
46.1%46.8%
47.4%47.0%
47.7%49.3%
50.6%
52.1%52.7%
53.4%
54.6%55.0% 55.2% 55.3%
56.4%57.3%
56.7%
58.8%59.1%
57.6%58.3%58.6%
35%
60%
'84 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13Q2
Gross Margin
/ /
2004-2008, 2010-2013 exclude restr uctur ing ch arges and/or o ther item s
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$626
$780$910
$1,011$1,067$1,185
$1,315$1,451
$1,597
$1,773$1,875
$2,054
$2,211$2,239$2,339
$2,567
$2,959
$3,265
$3,615
$3,796 $3,858
$4,024
'91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12
Compound Grow th +9.3%
Operat ing Pro f i t($MM)
2004-2008, 2010-2012 exclude restruc turing charges and /or other items
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0%
5%
10%
15%
20%
25%
30%
35%
40%
'96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13
Q1
'13
Q2
After-Tax Retu rn On Cap ital
Colgate
Peer Group
S&P 500
31.4%
17.7%
7.7%
16.0%
8.4%
15.8%
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Operat ing Cash Flow($MM)
$1,768 $1,788 $1,836$1,863
$2,253 $2,302
$3,277 $3,211
$2,896
$3,196
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Compound Grow th +6.8%
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Prior i ty Uses o f Cash
Dividends
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$0.22 $0.24$0.27 $0.28
$0.30 $0.32$0.34 $0.36
$0.45$0.48
$0.56
$0.63
$0.70
$0.78
$0.86
$1.02
$1.14
$1.22
$0.00
$0.20
$0.40
$0.60
$0.80
$1.00
$1.20
$1.40
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Dividends PaidPer Common Share
Inc reased fo r
50 consecu t ive years
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Prior i ty Uses o f Cash
Dividends
Share Repurchases
Flexibility for Acquisitions
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Shareho lder value
is increasing
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Peer Group ColgateS&P
+385%
+656%
+1018%
To tal Retu rn20 Years
12/31/9212/31/12
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To tal Retu rn15 Years
+93%
+177%
+277%
Peer Group ColgateS&P
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+99%
+126%
+149%
To tal Retu rn10 Years
Peer Group ColgateS&P
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To tal Retu rn5 Years
+8.6%
+17.1%
+51.8%
Peer Group ColgateS&P
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To tal Retu rn2012
+16.0%
+12.7%
+15.9%
Peer Group ColgateS&P
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To tal Retu rnYTD8/30/13
+16.1%
+13.0% +12.4%
Peer Group ColgateS&P
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Market shares are g row ing
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0
5
10
15
20
25
30
35
40
45
50
'94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13YTD
Colgate
Comp. 3
Comp. 1
45.1
14.0
16.2
31.0
17.0
9.5
Worldw ide Too thpaste Shares
Comp. 212.8
8.2
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Worldw ide Manual Too thb rush Shares
15
20
25
30
35
'94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13YTD
Colgate33.3
21.5
26.2
18.4Comp.
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0
10
20
30
40
50
'03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13YTD
Worldw ide Mou thwash Shares(ex. U.S.)
Comp. 1
21.6
37.4
25.7
16.9
19.2
8.2
Colgate
Comp. 2
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Resu l ts dr iven byfocused strategy
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Strategic In i t iat ives
Engage to Build Our Brands
Innovation for Growth
Effectiveness and Efficiency
Leading to Win
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And th ree co re values
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Colgates Values
Caring
Global Teamwork
Continuous Improvement
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Colgates Values
Caring
Global Teamwork
Continuous Improvement
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Strengthening
ou r fundamentals
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Streng thening Our Fundamen tals
Enhancing innovation for growth
Improving execution on the ground
Increasing our knowledge of consumers
Sharpening our analytics
Capitalizing on new digital opportunities
Streamlining our cost structure to furtherinvest in growth
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Streng thening Our Fundamen tals
Enhancing innovation for growth
Improving execution on the ground
Increasing our knowledge of consumers
Sharpening our analytics
Capitalizing on new digital opportunities
Streamlining our cost structure to furtherinvest in growth
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5.4 b i l l ion peop lest i l l su ffer from too th decay
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In t roduc ing
Colgate Maximum Cavi ty Protect ion plus
Sugar Acid Neutral izer
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Helps Provide Super ior Cavi ty
Protect ion to Fluo r ide Alone
Fluoride
Lowers pH at which damage occurs
Less damage (lessde-mineralization)
More repair (more re-mineralization)
Sugar Acid Neutralizer Technology
Neutralizes sugar acids in plaque
Increases plaque pH
Less damage (less de-mineralization)
More repair (more re-mineralization)
Together, Fluo rid e + Sugar Acid Neutralizer Technology
Lowers pH at which damage occurs
Neutralizes sugar acids in plaque to increase plaque pH
Significantly less damage (less de-mineralization) than fluoride alone
Significantly more repair (more re-mineralization) than fluoride alone
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Consumer Benefi t
Directly neutralizes sugar acids in plaquebefore they can harm teeth
Twice as effective at arresting and reversingearly decay as fluoride alone
Significantly fewer cavities than fluoride alone
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Launch in Turk iye
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Colgate Sensit ive SmartFoamw ith Whiten ing
Foam ing technology gets totough -to-reach spaces
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Colgate Lum inous Wh ite Enamel Shinein B razi l
Contains whi teningaccelerato rs that startwork ing immediately
for one shade wh iter teeth
in one week
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Colgate Optic White Dual Act ion
Whitens more than three shades
For whiter and sh inier teeth
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Colgate Total Pro -In terden talin Europe
Cont inuously f ights p laque even
between teeth, for a health ier mou th
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Colgate Total Advanced Pro-Shield
Mouthwash
12-hour ant ibacter ial p rotect ion
even after eat ing and drin king
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Colgate Plax 2 in 1 in B razi l
Clean mou th and fresh breath:you can see i t work ing
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Colgate Plax A ltai Herbs
Long -last ing fresh b reath
w i th extracts inspi red from
A ltai Region
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Colgate Slim Soft Too thb rush
Each br ist le tapers to an
ultra-th in t ip which reaches
deep between teeth and
along the gum l ine
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Colgate Slim Soft Charcoal Too thb rush
in Asia
Deep gentle clean
w ith charcoal br is t les
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New Hills Ideal Balance
Natural ing redients perfect ly balanced
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Natu ral ing redients ,
h igh qual i ty pro tein f i rst ing redient ,
w inning taste
New Hills Science DietIts the Recipe for a Better Life
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Weight Loss in the Real World
Hills Prescription Diet Metabolic
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Protex Men Power inB razi l / Thailand / Sou th A fr ica
10X more pro tect ion against
odor-causing bacter ia than ord inary bar soap
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Palmo live Gou rmet SPA in Eurasia
Tempt ing aromas, wonderfu l ly so f t textures
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Speed Stick Neu tro Power
in Latin America
Protection that doesnt interfere
w ith you r fragrance
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Lady Speed Stick Pro 5 in 1
in Latin America
Five benef its in one
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Sanex Deodo ran ts
B io Response Relaunch in Europe
Figh ts odo r-causing bacter ia,
respects skins natural bacteria flora
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Soup l ine Perfec t Gl ide
Eas ier, fresher...
Final ly some pleasu re whi le iron ing
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A jax L iqu id Cleaners
Puri fies your home
Formula w i th act ives r ich in oxygen
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Streng thening Our Fundamen tals
Enhancing innovation for growth
Improving execution on the ground
Increasing our knowledge of consumers
Sharpening our analytics
Capitalizing on new digital opportunities
Streamlining our cost structure to furtherinvest in growth
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Distr ibu t ion to Rural StoresIndia
Directly reaching Mom & Popstores w i th smal l vans
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Expand ing Dist ribu t ion
Changing the way we go to market in rura lInd ia to explo i t new oppo rtuni t ies
Directly reaching Mom & Pop stores
through a Van Distribution Model
Will double our coverage in rural areas inthe next three years
New store coverage
Increased assortment
Improved visibility
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Ind ia Too thpas te SharesRural
52.956.8
23.4 22.6
14.513.2
0.0
10.0
20.0
30.0
40.0
50.0
60.0
'11 '12 '13YTD
Colgate
Comp. 1
Comp. 2
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Ind ia Too thb rush SharesRural
34.9
23.4 24.4
11.4 11.6
9.0
0.0
10.0
20.0
30.0
40.0
'11 '12 '13YTD
Colgate
Comp. 2
Comp. 3
Comp. 1
39.0
9.0
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In -Store Engagement Driving
Success in Aus tral ia
Palmol ive Foam ing Hand Wash
E i Sh J
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Engage Motiv ateOrientDiscover
TV Advert is ing
Digit al Media
Engaging Shopper Jou rney
Prepacked Displays
In-store
Ambassadors
Signage on Shelf
Off-Location
Disp lays
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34.1 34.6 32.9 33.2
1.6 5.5 5.8
0
5
10
15
20
25
30
35
40
26 weeks to1/29/12
26 weeks to7/29/12
26 weeks to1/27/13
26 weeks to7/28/13
Palmolive (excl Foam) Palmolive Foam Pumps Palmolive Foam Refills
Inc remen tal Share GainPalmolive Foam launch extends market leadersh ip
towards 40% share
Source: Aztec Nat ional Scan 26 Weeks to 7/28/13
34.136.2
38.5 39.7
St th i O F d t l
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Streng thening Our Fundamen tals
Enhancing innovation for growth
Improving execution on the ground
Increasing our knowledge of consumers
Sharpening our analytics
Capitalizing on new digital opportunities
Streamlining our cost structure to furtherinvest in growth
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Protex in B razi l
Target ing New Consumers
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Expand ing to new
consumer groups whi le keep ingco re consumer base heal thy
I t i f G th
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Innovat ion for Grow th
NewConsumer
CoreConsumer
C C M th
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Core Consumer: Mothers
Act ively seeks to keep her fam ily
healthy and p rotected
C B i L h
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Core Business : Launches
Skin-fr iend ly ant ibacter ial p ro tect ion
Erva Doce Vitamin E Brand Relaunch
I t i f G th
http://localhost/var/www/apps/conversion/tmp/scratch_6/Protex%20TVCs%20&%20Materials/02_Recent%20&%20Current%20Projects/02_Two%20Views%20Protex%20LATAM%20Oct%202012.mov7/29/2019 CL Colgate Palmolive Corp Sept 2013 Investor Slide Deck Powerpoint PPT PDF
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Innovat ion for Grow th
NewConsumer
CoreConsumer
N T t C T
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New Target Consumer: Teens
Helps elim inate bacteria.
Removes d ir t and oi l that can cause
pimples.
Appeal ing to Teens
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Appeal ing to Teens,
w i th in Brand Personali ty
For Mom For Teen
View target in relat ion to m om ,
rather than teen alone
N T t C M
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New Target Consumer: Men
10X more pro tect ion against
odor-causing bacter ia than ord inary bar soap
Connect ing w i th Men
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Connect ing w i th Men,
wh i le Maintaining Fam ily Values
Shi f t emphasis f rom men to dads
B il P t A hi L d h i
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5.4
14.0
26.4
13.2
0
5
10
15
20
25
30
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013YTD
ProtexComp. 1
Source: Worldview
BrazilProtex Achieves Leadersh ipBody Cleansing
Worldw ide Body Cleans ing Shares
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Worldw ide Body Cleans ing Shares
7.9
14.2
12.6
11.3
14.4
8.9
7.5 6.8
5
6
7
8
9
10
11
12
13
14
15
2004 2005 2006 2007 2008 2009 2010 2011 2012
Protex
Palmol ive
Comp. 1
Comp. 2
Source: Worldview
Streng thening Our Fundamen tals
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Streng thening Our Fundamen tals
Enhancing innovation for growth
Improving execution on the ground
Increasing our knowledge of consumers
Sharpening our analytics
Capitalizing on new digital opportunities
Streamlining our cost structure to furtherinvest in growth
Bus iness Analy t ics
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Bus iness Analy t ics
Becoming a global strategic and tacticalcore competency
Aligned with key business priorities to drivetopline growth and win on the ground
Enables real-time decision making
(simpler, smarter and faster)
Drives competitive advantage
Analyt ics Fundamen tals
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Analyt ics Fundamen tals
Market data harmonization,automation and reporting
Brand health assessment
New product tracking
Advanced Analy t ics
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Advanced Analy t ics
Marketing mix modeling
Pricing
Shelf assortment
Point of sale (customer data)
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Market ing Mix Model ingin the U.S.
Market ing Mix Model ing
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Market ing Mix Model ing
1. Analyzes 2-3 years of store-level sales data
2. Evaluates drivers of a brands volume
Vo lume Drivers
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Vo lume Drivers
Advert is ing
Displays
Features
Pr ic ing Dist r ibut ion
Market ing Mix Model ing
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Market ing Mix Model ing
1. Analyzes 2-3 years of store-level sales data
2. Evaluates drivers of a brands volume
3. Determines the volume contribution of each driver
4. Calculates ROI for every media and in-store driver
Market ing Mix Analyt ics
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2011
2012
2013
One Category
Four Categories
One Brand
Market ing Mix Analyt ics
U.S. Expans ion
U S Accoun t Speci f ic
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U.S. Accoun t-Speci f ic
Adding Colgate Too thbru sh Drives Franch ise Grow th
Toothpasteonly
Toothpaste+ Toothbrush
Option Best Option +120%
VolumeLift
U S Accoun t Speci f ic
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U.S. Accoun t-Speci f ic
PurchaseRequirement:
1 Colgate
PurchaseRequirement:
2 Colgate
Option Best Option
+80-100%Volume
Lift
Partner ing w ith Customers to Drive Catego ry and
Colgate Grow th
Streng thening Our Fundamen tals
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Streng thening Our Fundamen tals
Enhancing innovation for growth
Improving execution on the ground
Increasing our knowledge of consumers
Sharpening our analytics
Capitalizing on new digital opportunities
Streamlining our cost structure to furtherinvest in growth
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Colgate 360Too thpaste
Chinas Healthiest Mouth
Chinas Healthiest Mouth
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China s Healthiest Mouth Using Digi tal to Engage in New
and Entertaining Ways
Popularity of reality TV competitions
Power of celebrity endorsement
All media touchpoints to drive to digitalcontent and build excitement
Campaign used:
Chinas Healthiest Mouth
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Celebri ty
Appearances
Social Media In-store Mobi le
Weibo Hub
Digital Partners
China s Healthiest Mouth
Chinas Healthiest Mouth
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China s Healthiest Mouth Results
15 webisodes, 1billion media impressions,100MM social media impressions, 1.3MM votes,19MM video views
Mobile firsts for C-P China:
- Leveraged Chinese pop culture trends andthe reality TV format
-Maximized celebrity equity in all messagingand touchpoints
- Created a mobile platform with 40% reach toChinese mobile users
Too thpas te Market Shares
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0
5
10
15
20
25
30
35
40
'95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13YTD
34.3
17.7
0.0
12.2
21.4
8.7
Too thpas te Market SharesChina
Colgate
Comp. 1
Comp. 2
Streng thening Our Fundamen tals
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Streng thening Our Fundamen tals
Enhancing innovation for growth
Improving execution on the ground
Increasing our knowledge of consumers
Sharpening our analytics
Capitalizing on new digital opportunities
Streamlining our cost structure to furtherinvest in growth
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Global Grow th and
Eff ic iency Prog ram
Global Grow th and
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Eff ic iency Prog ram
Four-year program (through 2016) to enhancecapabilities through:
Expansion of commercial hubs
Extending shared business services andstreamlining global functions
Optimizing Global Supply Chain and Facilities
Target savings in the range of $275MM$325MMafter-tax annually by the fourth year of the program,with rate of return >30% and payback averaging34 years
Program Components
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Program Components
Become smarter and faster at a reducedst ruc tural cost w hi le susta in ing grow th
Expand commercial hubs
Extend shared business services andstreamline global functions
Optimize Global Supply Chain and Facilities
Expans ion of Commerc ial Hubs
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Expans ion of Commerc ial HubsBenefi ts
Smarter and faster decision making
Greater support for the business throughstrengthened capabilities everywhere
Improved cost structure
Expans ion o f Commerc ial Hubs
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Expans ion o f Commerc ial HubsAct ion Plan
Reduce number of single-country subsidiariesby clustering into more efficient regional units
Strengthen resources available foron-the-ground teams to increase sales andmarket share
Streamline commercial structure to reduceredundancies. Implementation through 2016.
Southern Cone
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Chile
Argentina
Paraguay
Uruguay
Southern
Cone
Southern Cone
Cen tral Europe
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Estonia
Latvia
Lithuania
Poland
Hungary
Czech
Romania
Slovakia
CentralEurope
Cen tral EuropeIn Progress
Program Components
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Program Components
Become smarter and faster at a reducedst ruc tural cost w hi le susta in ing grow th
Expand commercial hubs
Extend shared business services andstreamline global functions
Optimize Global Supply Chain and Facilities
Colgate Bus iness Services Princ iples
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Colgate Bus iness Services Princ iples
Multi-functional business services
As global as possible, as local as necessary
Delivery through a network of shared service centers Maximize work in a global center
Regional centers support local language andproximity requirements
Location of service delivery based on detailedactivity-level analysis
Extend ing Shared Bus iness Serv ices
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Extend ing Shared Bus iness ServicesBenef i ts
Standardize and simplify integrated supportservices
Increase level of value-added support toon-the-ground operations
Focus local subsidiaries on achieving
commercial success
Reduce costs, enhance efficiencies
Examp le: Europe
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a p e u ope
Consolidating financialoperations
Reducing costs
Discovering new
opportunities for savingsWarsaw, Poland
Establ ish ing New Locations
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g
Global Center
Mumbai
Region al Center
Mexico City
Program Components
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g p
Expand commercial hubs
Extend shared business services andstreamline global functions
Optimize Global Supply Chain and Facilities
Become smarter and faster at a reducedst ruc tural cost w hi le susta in ing grow th
Manufac tu r ing Fac i li t ies
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ProposedPre-2004 Today 2016
85 54 -10%
g
Optim izing Global Supply Chain
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p g pp yBenefi ts
More efficient supply chain network
Increased speed to market
Optim izing Global Supply Chain
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Began process of exiting Oral Care facilities inGermany, Switzerland and Poland andconsolidating production into dedicated Oral Care
plant in Swidnica, Poland, as planned
Announced relocation of Morristown, NJ Underarmmanufacturing facility to the Southeast of the
United States
All factory closures expected to be completed bythe end of 2015
p g pp yStatus Update
2013 Reinves tmen t Prio r i t ies
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Enabling technology and analytics
Digital engagement
Emerging Markets
Innovation and brand building
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Global Grow th
and Eff ic iency Prog ram
w i ll help keep us
Winn ing on the Ground
Streng thening Our Fundamen tals
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g g
Enhancing innovation for growth
Improving execution on the ground
Increasing our knowledge of consumers
Sharpening our analytics
Capitalizing on new digital opportunities
Streamlining our cost structure to furtherinvest in growth
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