COLGATE PALMOLIVE INDIA LTD.

Transcription

1 COLGATE PALMOLIVE INDIA LTD.

2 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, forward looking 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 Company s 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 forward looking 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 forward looking statements and its assumptions, including oral or implied, are error free, lacking omissions, fair, accurate and complete nor does either assume or accept any responsibility for such forward looking statements in future or the actual occurrence of such projections or forecast based on such forward-looking statements. This Presentation should not be in any manner whatsoever construed as an approval, acknowledgement, confirmation or acceptance by any statutory or 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.

3 Financial Results

4 Financial Strategy Sales/ Volume Margin Non Variable Overheads Advertising Operating Profit

5 4Q 2015

6 (Rs. Crores) Net Sales

7 Gross Margin

8 (Rs. Crores) EBITDA

9 (Rs. Crores) Profit After Tax

10 Summary 4Q 2015 Net Sales + 11% Gross Margin bps EBITDA + 23% PAT + 24%

11 Full Year

12 (Rs. Crores) Net Sales

13 Gross Margin

14 (Rs. Crores) EBITDA

15 Profit After Tax (Rs. Crores) PAT is excluding exceptional items due to GSSO slump sale

16 Summary Net Sales + 12% Gross Margin bps EBITDA + 24% PAT + 14%

17 It has been a challenging environment

18 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15E GDP Growth Source: Citibank Macro Flash reports (old series)

19 FMCG Growth 11.7% 13.2% 4.0% 12.6% 4.2% 10.0% 11.2% 10.3% 4.3% 7.5% 7.1% 2.3% 4.8% 9.1% 8.5% 3.2% 5.8% 6.8% 5.4% 8.8% 4.3% 5.4% 1.0% 4.5% 4.4% 6.1% 8.8% 8.0% 5.7% 2.9% 4.3% 1.2% 4.9% 5.0% 4.5% 4.6% Price led growth Consumption growth Value growth Source: Nielsen RMS All India (U+R) FMCG nos. does not include Soft Drinks/ Liquor/ Juices

20 We continue to focus on our proven strategic initiatives

21 Key Strategic Initiatives Engage to build our brands Innovation for growth Effectiveness & Efficiency Leading to Win

22 Our consumer franchise & equity continue to grow

23 Toothpaste shares Competitor 1 Competitor YTD 2015 Source: AC Nielsen Retail Audit YTD April 2015; Volume Shares

24 Toothbrush shares Competitor Competitor YTD 2015 Source: AC Nielsen Retail Audit YTD April 2015; Volume Shares

25 India s Most Trusted Brand # 1 Brand across all sectors 4 Years in a row Only brand in top 3 since the survey s inception in 2000 Source: Economic Times Brand Equity Survey 2014

26 India s Most Purchased Brand Source: Kantar Worldpanel Report 2014

27 And we are Investing to Grow

28 Key Growth Drivers Innovation Engaging with consumers to build our brands Winning on the Ground Strong professional partnerships

29 Innovating to create new segments Whitening Whiter + Shinier Teeth in 1 week

30 Innovating to create new segments Sensitivity Repairs Enamel for Lasting Sensitivity Relief

31 Innovating to create new segments Premium Anti-Cavity Fights Sugar Acids, the #1 cause of Cavities

32 Innovating to create new segments Deep & Gentle Cleaning, with Charcoal Infused Bristles A Nielsen Survey

33 Innovating to create new segments Deep Cleaning Between Teeth First mass black toothbrush

34 Innovating to drive premiumization Rs.95 70g Price Rs.60 70g Rs g Rs.17 50g Rs.20 50g Rs g Rs.10 35g Rs.5 15g Benefits

35 Innovating to drive premiumization Rs 79 Price Rs 55 Rs 65 Rs 45 Rs 30 Rs 25 Rs 20 Rs 16 Rs 13 Benefits

36 Key Growth Drivers Innovation Engaging with consumers to build our brands Winning on the Ground Strong professional partnerships

37 Engaging with consumers on digital Over 3.1 MM fans on India Facebook pages

38 Engaging with consumers on digital Product launch of SlimSoft Charcoal on digital platform Main page of leading portals turned black for the first time ever Reached 23 million consumers

39 Engaging with consumers on Mobile Colgate Scholarship Offer Over 1.5 Million call-ins

40 Engaging with consumers on Mobile Using Mobile to reach media-dark regions Over 5.5 million reached through voice-based mobile delivery

41 Key Growth Drivers Innovation Engaging with consumers to build our brands Winning on the Ground Strong professional partnerships

42 Increasing distribution & availability Colgate available in 4.8MM outlets

43 Increasing distribution & availability No. of rural vans Invested behind infrastructure

44 Servicing the Growth Toothpaste facility at Sanand, Gujarat. Commissioned from March 2014

45 Servicing the Growth Toothbrush facility at Sricity, Andhra Pradesh. Commissioned from March 2015

46 Superior In-Store Execution Making our brands Available Visible Irresistable

47 Superior In-Store Execution Partnering modern retailer customers on planogramming & shopability

48 Superior In-Store Execution Impactful In-store visibility for new launches

49 Superior In-Store Execution Impactful In-store visibility for new IMCs

50 Superior In-Store Execution Customised hanger packs for traditional trade

51 Superior In-Store Execution Customised solutions for traditional trade

52 Superior In-Store Execution

53 Key Growth Drivers Innovation Engaging with consumers to build our brands Winning on the Ground Strong professional partnerships

54 Partnering with the Indian Dental Association Enhancing engagement & education with 30,000 + dentists Continuing dental education programs National & State conferences IDA-Colgate Scholarships

55 Alliance for a Cavity-Free Future Creating an external voice to raise awareness on dental caries Academicians + Dentists + Pediatrician + NGO Partners

56 Leading with the Profession on recommendations & usage Brand Recommended Most Often by Dentists Brand Used Most Often by Dentists CP Competitior 1 Competitior 2 Competitior 3 CP Competitior 1 Competitior 2 Competitior 3 Source: Ipsos Dentist Track Dec 2014

57 Key Growth Drivers Innovation Engaging with consumers to build our brands Winning on the Ground Strong professional partnerships

58 Huge Headroom for Growth

59 Penetration Urban Rural MM consumers do not use Toothpaste Source: Indian Readership Survey (HHs), IMRB**

60 Consumption Chart Title Per Capita Consumption (gms) Market size DOUBLES if PCC reaches China levels Brazil USA Philipines China India Source: Fractal Analytics - Market Analyzer Dec2014

61 Premiumization Average Selling Price($) Per KG of Toothpaste X 2.2X 1.8X X Market size DOUBLES if ASP reaches China levels Average Selling Price($) Per Toothbrush X 8.5X 3X X Source: Fractal Analytics - Market Analyzer Dec2014

62 Leading to Win Working with our Community

63 Bright Smiles, Bright Futures Over 125 million school children contacted in the program

64 Oral Health Month In association with IDA, over 5.5 Million free dental check-ups done in 2014

65 Working with NGO Partners Conservation of Natural Resources, Vocational training for self sustenance of villagers, Girl child empowerment. Addressing Inequalities- Payroll giving program to sponsor children affected and infected by HIV. Providing quality education to underprivileged of children ; Program Read India - improve basic reading, writing and arithmetic skills

66 In closing, a summary of our long term performance

67 Net Sales

68 Gross Margin

69 PAT

70 EPS

71 DPS

72 Shareholder Returns Year Shares Value 1978 IPO , Rights - 1,280 25, * Holdings - 14,080 28,343,040 *As on 31 st Mar 2015 Dividend Received 3,651,499 (includes Capital reduction) Compounded return of 27% since the IPO

73 Well-poised to continue to grow shareholder value

74 Lets Talk