Barclays Capital Back-to-School

Consumer Conference
September 3, 2013

2Q 2013
Notice for Investor Presentation
Our presentation and the related webcast contains non-GAAP financial measures, which
differ from our reported results prepared in accordance U.S. generally accepted accounting
principles (GAAP). These non-GAAP financial measures of operating results for the three
and six months ended June 30, 2013 exclude the impact of the following items: charges
resulting from the implementation of the 2012 Restructuring Program, the one-time charge
resulting from the Venezuela devaluation, a charge associated with a European competition
law matter, costs related to the sale of land in Mexico and costs associated with various
business realignment and other cost-saving initiatives. A complete, quantitative
reconciliation between our reported results and these non-GAAP financial measures is
available in the For Investors section of our web site at http://www.colgatepalmolive.com.
The Company also reports organic sales growth, which excludes the impact of foreign
exchange, acquisitions and divestments. See the For Investors section of our web site at
http://www.colgatepalmolive.com for a comparison of organic sales growth to sales growth
in accordance with GAAP.

The Company defines free cash flow before dividends as Net cash provided by operations
less Capital expenditures. Free cash flow before dividends is not a measure of cash
available for discretionary expenditures since the Company has certain non-discretionary
obligations such as debt service that are not deducted from the measure. Free cash flow
before dividends is not a GAAP measurement and may not be comparable to similarly titled
measures reported by other companies. See the For Investors section of our web site at
http://www.colgatepalmolive.com for a comparison of free cash flow before dividends to Net
cash provided by operations as reported in accordance with GAAP.

2Q 2013
Notice for Investor Presentation
Our presentation and the related webcast may also contain forward-looking statements.
Such statements may relate, for example, to sales or unit volume growth, organic sales
growth, profit or profit margin growth, earnings growth, financial goals, the impact of
currency devaluations, exchange controls, price controls and labor unrest, including in
Venezuela, cost-reduction plans including the 2012 Restructuring Program, tax rates, new
product introductions or commercial investment levels. These statements are made on the
basis of our views and assumptions as of this time and we undertake no obligation to
update these statements. We caution investors that any such forward-looking statements
are not guarantees of future performance and that actual events or results may differ
materially from those statements. Investors should consult the Companys filings with the
Securities and Exchange Commission (including the information set forth under the caption
Risk Factors in the Companys Annual Report on Form 10-K for the year ended December
31, 2012) for information about certain factors that could cause such differences. Copies of
these filings may be obtained upon request from the Companys Investor Relations
Department or on the Companys web site at http://www.colgatepalmolive.com.
References to market share in this presentation are based on a combination of consumption
and market share data provided by third-party vendors, primarily Nielsen, and internal
estimates. All market share references represent the percentage of the dollar value of sales
of our products, relative to all product sales in the category in the countries in which the
Company competes and purchases data.

Today

Strengthening our
fundamentals

Today

Strengthening our
fundamentals

Long history
of strong results

Topline Growth

2002-06
CAGR

2007

2008

2009

2010

2011

2012

Q1
2013

Q2
2013

Volume
(excluding
divestitures)

+5.6%

+7.0% +4.0%

+0.5%

+3.0%

+4.0%

+3.5%

+4.5%

+4.5%

Organic
Growth

+5.3%

+8.0% +9.5%

+6.5%

+3.0%

+4.0%

+6.0%

+6.0%

+5.5%

Net Sales
($ Billions)

16.7

17.1

15.3 15.3 15.6

13.8
12.2
11.4
10.6

6.9

7.0

'92

'93

8.2

8.5

8.8

'95

'96

'97

8.7

8.8

9.0

9.1

9.3

'98

'99

'00

'01

'02

9.9

7.4

'94

'03

'04

'05

'06

'07

'08

Compound Growth +4.6%

'09

'10

'11

'12

Gross Margin
60%

58.8%59.1%

52.1%

57.3%
56.7%
56.4%
55.0% 55.2% 55.3%
54.6%
53.4%
52.7%

58.3%58.6%
57.6%

50.6%

49.3%
46.8%
46.1%
44.2%

47.4%

47.7%
47.0%

44.6%

37.9%

35%
'84

//

'90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12

2004-2008, 2010-2013 exclude restructuring charges and/or other items

'13
Q2

Operating Profit

$4,024

($MM)

$3,796 $3,858

$3,615
$3,265
$2,959
$2,567
$2,211 $2,239

$2,339

$2,054
$1,875
$1,773
$1,597

$1,451
$1,315
$1,185

$910

$1,011 $1,067

$780
$626

'91

'92

'93

'94

'95

'96

'97

'98

'99

'00

'01

'02

'03

'04

'05

'06

'07

Compound Growth +9.3%

2004-2008, 2010-2012 exclude restructuring charges and/or other items

'08

'09

'10

'11

'12

After-Tax Return On Capital

40%

31.4%
Colgate

35%
30%
25%
20%

16.0%

15%

15.8%

10%

8.4%

5%

17.7%
Peer Group

7.7%
S&P 500

0%
'96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '13
Q1 Q2

Operating Cash Flow

($MM)
$3,277

$3,211

$3,196
$2,896

$1,768

$1,788

$1,836

2003

2004

2005

$2,253

$2,302

2007

2008

$1,863

2006

2009

2010

Compound Growth +6.8%

2011

2012

Priority Uses of Cash

Dividends

Dividends Paid
Per Common Share
$1.40

$1.20

$1.00

$1.22

Increased for
50 consecutive years

$1.14
$1.02
$0.86
$0.78

$0.80

$0.70
$0.63
$0.60

$0.56
$0.45

$0.40

$0.22 $0.24

$0.27 $0.28

$0.30

$0.48

$0.36
$0.34
$0.32

$0.20

$0.00
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Priority Uses of Cash

Dividends

Share Repurchases

Flexibility for Acquisitions

Shareholder value
is increasing

Total Return
20 Years
12/31/92 12/31/12
+1018%

+656%
+385%

S&P

Peer Group

Colgate

Total Return
15 Years
+277%

+177%

+93%

S&P

Peer Group

Colgate

Total Return
10 Years
+149%
+126%

+99%

S&P

Peer Group

Colgate

Total Return
5 Years
+51.8%

+17.1%

+8.6%

S&P

Peer Group

Colgate

Total Return
2012
+16.0%

+15.9%

+12.7%

S&P

Peer Group

Colgate

Total Return
YTD
8/30/13
+16.1%

S&P

+13.0%

+12.4%

Peer Group

Colgate

Market shares are growing

Worldwide Toothpaste Shares

50

45.1

45
40

Colgate

31.0

35
30
25
20

17.0
14.0

15
10
5

16.2
8.2

Comp. 1
12.8 Comp. 2
9.5 Comp. 3

0
'94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12

'13
YTD

Worldwide Manual Toothbrush Shares

35

33.3

Colgate

30

26.2
25

21.5
20

18.4

Comp.

15
'94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12

'13
YTD

Worldwide Mouthwash Shares

(ex. U.S.)
50

37.4

40

Comp. 1
30

25.7

21.6
20

19.2

Colgate

16.9
8.2

10

Comp. 2

0
'03

'04

'05

'06

'07

'08

'09

'10

'11

'12

'13
YTD

Results driven by
focused strategy

Strategic Initiatives
Engage to Build Our Brands

Innovation for Growth

Effectiveness and Efficiency

Leading to Win

And three core values

Colgates Values
Caring

Global Teamwork

Continuous Improvement

Colgates Values
Caring

Global Teamwork

Continuous Improvement

Strengthening
our fundamentals

Strengthening Our Fundamentals

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 further
invest in growth

Strengthening Our Fundamentals

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 further
invest in growth

5.4 billion people

still suffer from tooth decay

Introducing
Colgate Maximum Cavity Protection plus
Sugar Acid Neutralizer

Helps Provide Superior Cavity

Protection to Fluoride Alone
Sugar Acid Neutralizer Technology

Fluoride
Lowers pH at which damage occurs

Neutralizes sugar acids in plaque

Less damage (less

de-mineralization)

Increases plaque pH
Less damage (less de-mineralization)

More repair (more re-mineralization)

More repair (more re-mineralization)

Together, Fluoride + 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

Consumer Benefit
Directly neutralizes sugar acids in plaque
before they can harm teeth

Twice as effective at arresting and reversing

early decay as fluoride alone

Significantly fewer cavities than fluoride alone

Launch in Turkiye

Colgate Sensitive SmartFoam

with Whitening

Foaming technology gets to

tough-to-reach spaces

Colgate Luminous White Enamel Shine

in Brazil

Contains whitening
accelerators that start
working immediately
for one shade whiter teeth
in one week

Colgate Optic White Dual Action

Whitens more than three shades

For whiter and shinier teeth

Colgate Total Pro-Interdental

in Europe

Continuously fights plaque even

between teeth, for a healthier mouth

Colgate Total Advanced Pro-Shield

Mouthwash

12-hour antibacterial protection

even after eating and drinking

Colgate Plax 2 in 1 in Brazil

Clean mouth and fresh breath:

you can see it working

Colgate Plax Altai Herbs

Long-lasting fresh breath

with extracts inspired from
Altai Region

Colgate Slim Soft Toothbrush

Each bristle tapers to an

ultra-thin tip which reaches
deep between teeth and
along the gumline

Colgate Slim Soft Charcoal Toothbrush

in Asia

Deep gentle clean

with charcoal bristles

New Hills Ideal Balance

Natural ingredients perfectly balanced

New Hills Science Diet

Its the Recipe for a Better Life

Natural ingredients,
high quality protein first ingredient,
winning taste

Hills Prescription Diet Metabolic

Weight Loss in the Real World

Protex Men Power in

Brazil / Thailand / South Africa

10X more protection against

odor-causing bacteria than ordinary bar soap

Palmolive Gourmet SPA in Eurasia

Tempting aromas, wonderfully soft textures

Speed Stick Neutro Power

in Latin America

Protection that doesnt interfere

with your fragrance

Lady Speed Stick Pro 5 in 1

in Latin America

Five benefits in one

Sanex Deodorants
Bio Response Relaunch in Europe

Fights odor-causing bacteria,

respects skins natural bacteria flora

Soupline Perfect Glide

Easier, fresher...
Finally some pleasure while ironing

Ajax Liquid Cleaners

Purifies your home

Formula with actives rich in oxygen

Strengthening Our Fundamentals

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 further
invest in growth

Distribution to Rural Stores

India

Directly reaching Mom & Pop

stores with small vans

Expanding Distribution
Changing the way we go to market in rural
India to exploit new opportunities
Directly reaching Mom & Pop stores
through a Van Distribution Model
Will double our coverage in rural areas in
the next three years
New store coverage
Increased assortment
Improved visibility

India Toothpaste Shares

Rural
56.8

60.0

52.9

Colgate

50.0

40.0

30.0

23.4

22.6
Comp. 1

20.0

14.5

13.2
Comp. 2

10.0

0.0

'11

'12

'13
YTD

India Toothbrush Shares

Rural
39.0

40.0

34.9

Colgate

30.0

23.4

24.4

11.4

11.6

Comp. 1

20.0

10.0

9.0

9.0

Comp. 2
Comp. 3

0.0

'11

'12

'13
YTD

In-Store Engagement Driving

Success in Australia

Palmolive Foaming Hand Wash

Engaging Shopper Journey

Discover

Orient

Engage

Motivate

In-store
Ambassadors

TV Advertising

Prepacked Displays
Off-Location
Displays

Digital Media
Signage on Shelf

Incremental Share Gain

Palmolive Foam launch extends market leadership
towards 40% share
40
35

36.2

34.1

38.5

39.7

1.6

5.5

5.8

34.1

34.6

32.9

33.2

26 weeks to
1/29/12

26 weeks to
7/29/12

26 weeks to
1/27/13

26 weeks to
7/28/13

30
25
20
15
10
5
0

Palmolive (excl Foam)

Palmolive Foam Pumps

Source: Aztec National Scan 26 Weeks to 7/28/13

Palmolive Foam Refills

Strengthening Our Fundamentals

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 further
invest in growth

Protex in Brazil
Targeting New Consumers

Expanding to new
consumer groups while keeping
core consumer base healthy

Innovation for Growth

Core
Consumer

New
Consumer

Core Consumer: Mothers

Actively seeks to keep her family

healthy and protected

Core Business: Launches

Erva Doce

Vitamin E

Brand Relaunch

Skin-friendly antibacterial protection

Innovation for Growth

Core
Consumer

New
Consumer

New Target Consumer: Teens

Helps eliminate bacteria.

Removes dirt and oil that can cause
pimples.

Appealing to Teens,
within Brand Personality
For Mom

For Teen

View target in relation to mom,

rather than teen alone

New Target Consumer: Men

10X more protection against

odor-causing bacteria than ordinary bar soap

Connecting with Men,

while Maintaining Family Values

Shift emphasis from men to dads

Brazil Protex Achieves Leadership

Body Cleansing
30

26.4
25

20

14.0 Protex

15

Comp. 1

13.2

10

5.4

0
2004

2005

Source: Worldview

2006

2007

2008

2009

2010

2011

2012

2013
YTD

Worldwide Body Cleansing Shares

15

14.2 Protex

14.4

14
13

12.6

12

11.3

11

Palmolive

10

8.9
9
8
7

Comp. 1

7.9
6.8

7.5

6
5
2004

Source: Worldview

2005

2006

2007

2008

2009

2010

2011

2012

Comp. 2

Strengthening Our Fundamentals

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 further
invest in growth

Business Analytics
Becoming a global strategic and tactical
core competency
Aligned with key business priorities to drive
topline growth and win on the ground
Enables real-time decision making
(simpler, smarter and faster)

Drives competitive advantage

Analytics Fundamentals
Market data harmonization,
automation and reporting

Brand health assessment

New product tracking

Advanced Analytics
Marketing mix modeling
Pricing
Shelf assortment
Point of sale (customer data)

Marketing Mix Modeling

in the U.S.

Marketing Mix Modeling

1. Analyzes 2-3 years of store-level sales data

2. Evaluates drivers of a brands volume

Volume Drivers

Features

Advertising

Displays
Pricing

Distribution

Marketing Mix Modeling

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

Marketing Mix Analytics

U.S. Expansion
2013
Four Categories

2012
One Category

2011
One Brand

U.S. Account-Specific
Adding Colgate Toothbrush Drives Franchise Growth

Option

Best Option

Toothpaste
only

Toothpaste
+ Toothbrush

+120%
Volume
Lift

U.S. Account-Specific
Partnering with Customers to Drive Category and
Colgate Growth
Option

Purchase
Requirement:
1 Colgate

Best Option

Purchase
Requirement:
2 Colgate

+80-100%
Volume
Lift

Strengthening Our Fundamentals

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 further
invest in growth

Colgate 360 Toothpaste

Chinas Healthiest Mouth

Chinas Healthiest Mouth

Using Digital to Engage in New
and Entertaining Ways
Campaign used:
Popularity of reality TV competitions
Power of celebrity endorsement
All media touchpoints to drive to digital
content and build excitement

Chinas Healthiest Mouth

Weibo Hub
Digital Partners
Celebrity
Appearances

Social Media

In-store

Mobile

Chinas 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 and
the reality TV format
- Maximized celebrity equity in all messaging
and touchpoints

- Created a mobile platform with 40% reach to

Chinese mobile users

Toothpaste Market Shares

China
40

34.3

35

Colgate

30
25
20

21.4
17.7

12.2

Comp. 1

15

8.7

10
5

0.0
0
'95

'96

'97

'98

'99

'00

'01

'02

'03

'04

'05

'06

'07

'08

'09

'10

'11 '12

'13
YTD

Comp. 2

Strengthening Our Fundamentals

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 further
invest in growth

Global Growth and

Efficiency Program

Global Growth and

Efficiency Program
Four-year program (through 2016) to enhance
capabilities through:
Expansion of commercial hubs
Extending shared business services and
streamlining global functions
Optimizing Global Supply Chain and Facilities
Target savings in the range of $275MM$325MM
after-tax annually by the fourth year of the program,
with rate of return >30% and payback averaging
34 years

Program Components
Become smarter and faster at a reduced
structural cost while sustaining growth
Expand commercial hubs
Extend shared business services and
streamline global functions
Optimize Global Supply Chain and Facilities

Expansion of Commercial Hubs

Benefits
Smarter and faster decision making

Greater support for the business through

strengthened capabilities everywhere

Improved cost structure

Expansion of Commercial Hubs

Action Plan
Reduce number of single-country subsidiaries
by clustering into more efficient regional units
Strengthen resources available for
on-the-ground teams to increase sales and
market share

Streamline commercial structure to reduce

redundancies. Implementation through 2016.

Southern Cone

Paraguay

Chile
Uruguay

Argentina

Southern
Cone

Central Europe
In Progress
Estonia
Poland

Latvia
Lithuania

Czech
Slovakia
Hungary
Romania

Central
Europe

Program Components
Become smarter and faster at a reduced
structural cost while sustaining growth
Expand commercial hubs
Extend shared business services and
streamline global functions
Optimize Global Supply Chain and Facilities

Colgate Business Services Principles

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 and
proximity requirements
Location of service delivery based on detailed
activity-level analysis

Extending Shared Business Services

Benefits
Standardize and simplify integrated support
services

Increase level of value-added support to

on-the-ground operations
Focus local subsidiaries on achieving
commercial success
Reduce costs, enhance efficiencies

Example: Europe
Consolidating financial
operations

Reducing costs
Warsaw, Poland

Discovering new
opportunities for savings

Establishing New Locations

Global Center
Mumbai

Regional Center
Mexico City

Program Components
Become smarter and faster at a reduced
structural cost while sustaining growth
Expand commercial hubs
Extend shared business services and
streamline global functions
Optimize Global Supply Chain and Facilities

Manufacturing Facilities

Pre-2004

Today

Proposed
2016

85

54

-10%

Optimizing Global Supply Chain

Benefits

More efficient supply chain network

Increased speed to market

Optimizing Global Supply Chain

Status Update
Began process of exiting Oral Care facilities in
Germany, Switzerland and Poland and
consolidating production into dedicated Oral Care
plant in Swidnica, Poland, as planned
Announced relocation of Morristown, NJ Underarm
manufacturing facility to the Southeast of the
United States
All factory closures expected to be completed by
the end of 2015

2013 Reinvestment Priorities

Enabling technology and analytics
Digital engagement
Emerging Markets
Innovation and brand building

Global Growth
and Efficiency Program
will help keep us
Winning on the Ground

Strengthening Our Fundamentals

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 further
invest in growth