COLGATE PALMOLIVE INDIA LTD.

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Transcription:

COLGATE PALMOLIVE INDIA LTD.

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.

Financial Results

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

4Q 2015

(Rs. Crores) Net Sales

Gross Margin

(Rs. Crores) EBITDA

(Rs. Crores) Profit After Tax

Summary 4Q 2015 Net Sales + 11% Gross Margin + 310 bps EBITDA + 23% PAT + 24%

Full Year 2014-2015

(Rs. Crores) Net Sales

Gross Margin

(Rs. Crores) EBITDA

Profit After Tax (Rs. Crores) - 2013-14 PAT is excluding exceptional items due to GSSO slump sale

Summary 2014-2015 Net Sales + 12% Gross Margin + 250 bps EBITDA + 24% PAT + 14%

It has been a challenging environment

FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15E GDP Growth 9.5 9.6 9.3 8.6 8.9 6.7 6.7 4.7 5.0 5.6 Source: Citibank Macro Flash reports (old series)

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

We continue to focus on our proven strategic initiatives

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

Our consumer franchise & equity continue to grow

Toothpaste shares 54.5 55.9 56.7 57.8 23.8 22.8 21.5 19.9 13.9 13.5 13.4 13.4 Competitor 1 Competitor 2 2012 2013 2014 YTD 2015 Source: AC Nielsen Retail Audit YTD April 2015; Volume Shares

Toothbrush shares 39.8 41.6 42.4 42.1 18.8 18.4 18.3 18.3 Competitor 1 6.7 7.4 7.9 8.8 Competitor 2 2012 2013 2014 YTD 2015 Source: AC Nielsen Retail Audit YTD April 2015; Volume Shares

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

India s Most Purchased Brand Source: Kantar Worldpanel Report 2014

And we are Investing to Grow

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

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

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

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

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

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

Innovating to drive premiumization Rs.95 70g Price Rs.60 70g Rs.85 100g Rs.17 50g Rs.20 50g Rs.46 100g Rs.10 35g Rs.5 15g Benefits

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

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

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

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

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

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

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

Increasing distribution & availability Colgate available in 4.8MM outlets

Increasing distribution & availability No. of rural vans 801 951 340 2012 2013 2014 Invested behind infrastructure

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

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

Superior In-Store Execution Making our brands Available Visible Irresistable

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

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

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

Superior In-Store Execution Customised hanger packs for traditional trade

Superior In-Store Execution Customised solutions for traditional trade

Superior In-Store Execution

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

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

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

Leading with the Profession on recommendations & usage Brand Recommended Most Often by Dentists Brand Used Most Often by Dentists 65 74 7 4 3 3 6 4 CP Competitior 1 Competitior 2 Competitior 3 CP Competitior 1 Competitior 2 Competitior 3 Source: Ipsos Dentist Track Dec 2014

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

Huge Headroom for Growth

Penetration Urban Rural 91.2 92.3 72.8 74.1 250MM consumers do not use Toothpaste 2013 2014 2013 2014 Source: Indian Readership Survey (HHs), IMRB**

Consumption 700 600 617 543 Chart Title Per Capita Consumption (gms) 500 400 Market size DOUBLES if PCC reaches China levels 300 259 264 200 136 100 0 Brazil USA Philipines China India Source: Fractal Analytics - Market Analyzer Dec2014

Premiumization Average Selling Price($) Per KG of Toothpaste 18 13 11 6 3X 2.2X 1.8X X Market size DOUBLES if ASP reaches China levels Average Selling Price($) Per Toothbrush 2.7 1.7 0.6 0.2 13.5X 8.5X 3X X Source: Fractal Analytics - Market Analyzer Dec2014

Leading to Win Working with our Community

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

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

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

In closing, a summary of our long term performance

Net Sales

Gross Margin

PAT

EPS

DPS

Shareholder Returns Year Shares Value 1978 IPO - 250 6,250 1994 Rights - 1,280 25,600 2015* 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

Well-poised to continue to grow shareholder value

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