Colgate Palmolive Analyst Presentation 2009

Welcome to Colgate-Palmolive India
COLGATE-PALMOLIVE (INDIA) LIMITED
ANALYST MEET MAY 2009
INDUSTRY PROFILE
FMCG sector is buoyant

Rs. In Billion
1200 1016 1000 864 800 585 711 542
18%
22%
600 468 400
22%
494
504
8% 8%
6%
2%
200
0 2001 2002 2003 2004 2005 2006 2007 2008
Source: AC Nielsen
2008 Key Category Growth

25
20 16.2 15
18.4
19.0 16.2 14.5
%
10 7.6 5
0 Toilet Soaps
% Growth in Value Source : AC Nielsen
Det Cakes
Toothpaste
Toothbrush
Skin Creams
Shampoo
2008 Key Category Growth

25.0
20.0
Colgate, 18.0 Market, 14.5
Colgate, 17.3
15.0
%
10.0 Market, 7.6
5.0
0.0 Toothpaste
Toothbrush
3 Yr. Category Growth

25
20
18.2 15.4
15
13.9 12.2 12.9
%
10
5.9 5
0 Toilet Soaps Det Cakes Toothpaste Toothbrush Skin Creams Shampoo

3 Yr. Category Growth

25
20 Colgate, 16.6 Colgate, 15.2 15 Market, 13.9
%
10 Market, 5.9 5
0 Toothpaste Toothbrush

A significant opportunity to drive penetration

Dentifrice 90 80 69 70 60 50 44 40 36 30 20 10 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 35 36 34 35 35 35 35 31 44 44 45 46 50 51 54 57 70 71 72 73 74 76 78 79 Toothpaste Toothpowder
Source: Indian Readership Survey Dentifrice = Toothpaste or toothpowder

Opportunity to increase per capita consumption

Per Capita Consumption (Grams/Year) China Malaysia India 255 293 108
Source: AC Neilsen
COMPANY PROFILE
LEADERSHIP TEAM
ROGER CALMEYER VP SOUTH ASIA & MD INDIA
MOSES A ELIAS CFO / DIRECTOR
LAURENCE WHEELER EVP MFG & PSC
SHEKHAR BHARATWAJ VP - CUSTOMER DEVELOPMENT K V VAIDYANATHAN LEGAL DIRECTOR & CO. SECRETARY
PRABHA PARAMESWARAN VP - MARKETING
ADITYA SINGH VP - HUMAN RESOURCES
SANJEEV DALI DIRECTOR GSSO
SURENDRA MANEK VP- IGTC
Business Complexity
Baddi
OPERATIONS NETWORK
Need for outsourcing due to historical regulatory environment

NEPAL
Baroda Surat Daman Mumbai Aurangabad Hyderabad Kodur Goa CP FACTORIES - 7 TOOTHBRUSH CMs - 6 PCP/HCP CMs - 3
Business Complexity
Baddi
OPERATIONS NETWORK
Need for outsourcing due to historical regulatory environment Sold

NEPAL
Baroda Surat Daman Mumbai Aurangabad Hyderabad
Merged with CPIL

Kodur
In Merger
Goa
CP FACTORIES - 4 TOOTHBRUSH CMs - 6 PCP/HCP CMs - 3 (WAREHOUSES - 23 SATELLITE WHs - 4 DC & WAREHOUSES - 3)
Toothpaste Portfolio
Toothpaste / Toothpowder Portfolio
Toothbrush Portfolio
Personal Care / Home Care Portfolio
Rated as the #1 brand by the A&M MODE Annual Survey for Indias Top Brands for eight out of nine years during the period 1992 to 2001 Ranked as Indias Most Trusted Brand across all categories for four consecutive years 2003 to 2006 by Brand Equitys Most Trusted Brand Survey In Brand Equitys 2007 Most Trusted Brand survey, Colgate was rated the leading FMCG Brand, 2nd position in overall survey.
Distribution Network
2032 direct accounts & 4,224,630 indirect accounts
Numeric Distribution of Colgate Toothpaste @ Dec 2008: Urban Rural 84% 79%
Urban + Rural 81%
Strategic Position
Category Value SOM % Market Position Relative Share
Toothpaste Toothpowder Toothbrush
48.5 46.4 37.7
1 1 1
1.6 1.5 2.8
Source: AC Nielsen Period : Jan to Dec 08
Market Share - Toothpaste
2005 Colgate Competitor 1 All Other 46.7 32.1 21.2
2006 47.8 30.4 21.8
2007 48.4 29.8 21.7
2008 48.5 29.6 21.9
Jan-Mar 08 Jan-Mar 09 48.2 29.8 22.0 50.2 28.0 21.7
2008-2007 0.1 (0.2) 0.2
- Market Share - Value - Source: AC Nielsen

Market Share - Toothpowder
2005 Colgate Competitor 1 All Other 46.6 31.5 21.9
2006 44.2 31.0 24.8
2007 44.3 31.0 24.7
2008 46.4 30.5 23.1
Jan-Mar 08 Jan-Mar 09 45.5 30.0 24.5 45.8 29.9 24.4
2008-2007 2.1 (0.5) (1.6)

Market Share - Toothbrush
2005 Colgate Competitor 1 Competitor 2 All Other 31.0 19.8 11.6 37.6
2006 34.4 16.5 9.9 39.2
2007 34.9 15.5 15.9 33.7
2008 37.7 13.5 18.4 30.4
Jan-Mar 08 Jan-Mar 09 37.2 13.9 17.7 31.2 37.0 12.5 20.6 29.9
2008-2007 2.8 (2.0) 2.5 (3.3)

Category Contribution
(% to Company Sales)
105% 100% 95% 90% 85% 95.1% 80% 75% 70% 2007-08 ORAL CARE PERSONAL CARE 2008-09 HOME / OTHERS 95.7% 2.0% 2.9% 1.7% 2.6%
Urban-Rural Contribution
(% to Company Sales)
80% 70% 60% 50% 40% 30% 20% 10% 0% 2005 2006 2007 2008 32% 33% 34% 35% 68% 67% 66% 65%
Urban
Rural
BUSINESS MODEL
BEST PLACE TO WORK

Leadership Development
Closer to
DRIVING GROWTH
- Customer
- Consumer - Profession
INNOVATION EVERYWHERE
Consumer Innovation Centre
FUNDING GROWTH
Efficiency & Effectiveness in Everything
OHM 2008
Media Public Relations Trade Activities On pack messages
School Contact Program Shopper Engagement Program ITC E-Choupal School Contact Program
In Clinic Mobile Vans Factory Checkups Goa& Baddi ANALYST MEET MAY 2009 School Dental Checkups
Partnership with profession

24%increaseinnumberofparticipatingdentistsinOHM2008
Over 10,000 dentists participated in OHM 2008 Expanded to more towns Non IDA dentists also participated Partnership with dental colleges for the first time 32 dental colleges participated in OHM 2008 Over 800 dentists
OHM 05 Towns Dentists 50 3500
OHM 06 102 5000
OHM 07 175 8300
OHM 08 200 10290
OHM 07 OHM 08 IDA Non IDA

7000 1300
8290 2000
Little Dentist Program

Converting1,21,825childrenintoOralCareambassadors
1.47millionindividualspledgedtofollowgoodoralhygienehabits
OHM - Summary
1.09milliondirectcontacts|2.43milliondirectinfluences
PublicDentalCheckups:
Closer to the Profession.Professional

Oral Care
Leverage long standing partnership with the Indian Dental Association built on trust with the profession Professional endorsement / recommendation for our brands drives consumer preference - Builds credibility - Reinforces therapeutic superiority
Dental profession also a source of business for professional products Significant enhancement of dentist detailing reach -- 38,000 dentists (60% of dentist universe) under detailing coverage in 2008
Professional oral care distribution network consolidated in 60 towns
Closer to the Profession. Professional

Year BRMO Colgate Comp 80% 77% 75% 71% 61% 54% 4% 3% 6% 14% 17% 23%
Oral Care
BUMO Colgate Comp 87% 86% 82% 75% 66% 62% 5% 5% 5% 16% 21% 23%
Toothpaste
2007 2006 2005 2007 2006 2005
Toothbrushes
BRMO - Brand Recommended Most Often by Dentists BUMO - Brand Used Most Often by Dentists Source : Dentist Track 2006 and 2007
FINANCIALS
Financial Strategy
Grow Top line Reduce Costs Invest in Brand Building / New Products Grow NPAT
(Rs. Lacs)
Quarter Ended 31-Mar-09 45,546 1,674 47,220 687 11,274 8,091 3,890 486 635 7,021 6,492 38,576 8,644 380 9,024 11 9,013 1,306 7,707 7,707 1,360
STANDALONE Quarter Year Ended Ended 31-Mar-09 31-Mar-08 (Audited) 39,133 1,631 40,764 368 7,547 9,765 3,074 545 7,345 5,839 34,483 6,281 370 6,651 36 6,615 1,053 5,562 5,562 1,360 169,481 7,601 177,082 (450) 39,562 35,019 13,854 486 2,295 27,172 26,774 144,712 32,370 2,271 34,641 110 34,531 5,509 29,022 29,022 1,360 20,270
Year Ended 31-Mar-08 (Audited) 147,338 6,333 153,671 (217) 28,003 35,492 11,728 100 1,984 25,651 23,609 126,350 27,321 2,028 29,349 144 29,205 6,034 23,171 23,171 1,360 14,861 17.04
CONSOLIDATED Year Ended Year Ended 31-Mar-09 31-Mar-08 (Audited) (Audited) 169,521 6,463 175,984 (453) 59,172 9,373 15,090 486 2,825 27,172 29,290 142,955 33,029 1,978 35,007 154 34,853 6,030 28,823 245 28,578 1,360 20,167 21.01 147,385 5,610 152,995 (82) 36,167 23,737 12,382 100 2,093 25,651 24,221 124,269 28,726 1,991 30,717 123 30,594 6,926 23,668 92 23,576 1,360 15,369 17.34
- Net Sales (Excl. Excise Duty) - Operating Income Total Revenue (Increase) / Decrease in Stock in Trade Raw and Packing Material Cost Purchase of Goods Employee Cost Voluntary Retirement Scheme Depreciation/ Amortisation/ Impairment Advertising & Sales Promotion Other Expenditure
Total Expenditure Profit from Operations Before Other Income and Interest Other Income (Net) Profit Before Interest Interest Expense Profit from Ordinary Activities Before Tax Provision for Taxation Net Profit After Tax and before Minority Interest Minority Interest Net Profit after Tax and Minority Interest Paid-up Equity Share Capital (Face value: Rupee 1 per share) Reserves excluding Revaluation Reserve Basic and Diluted Earnings per share after Minority Interest (Rs.) Public shareholding - Number of Shares - Percentage of holding
5.67
4.09
21.34
66,636,481 49%
66,636,481 49%
66,636,481 49%
66,636,481 49%
66,636,481 49%
66,636,481 49%
Grow Topline
Quarterly Sales Growth
(% = current year vs previous year)
4,750 4,500 14.1% 4,250 4,000 3,750 (Rs. MM) 13.3% 3,500 3,250 3,000 2,750 2,500 2,250 2,000
Apr-Jun 2007 Jul-Sep 2007 Oct-Dec 2007 Jan-Mar 2008 Apr-Jun 2008 Jul-Sep 2008 Oct-Dec 2008 Jan-Mar 2009
16.4%
16.2% 14.0% 13.7% 14.0%
13.4%
Net Sales
Costs (Excl. Advt. & Depre.)
Advertising
EBITDA
+51.5%
+14.5%
+7.7% -13.2%
- 06-07 figures include VRS charge of Rs 58.8 crores

EBIT
+14.4%
+53.9% +2.4% -4.8%

Profit Before Tax
+18.2% +44.9%
+5.5%
+7.3%

Income Tax
Profit After Tax
+25.2%
+44.7%
+16.4% +21.5%
- 06-07 figures include VRS charge (net of tax) of Rs 39 crores

EPS, DPS & Payout
Net Working Capital
Cash Gen. from Operations
- 06-07 figures include VRS payout of Rs 54.5 crores

Treasury Portfolio
Return on Capital Employed
Ratios
FY2005 Growth (%) Net Sales PBT PAT FY2006 FY2007 FY2008 FY2009 CAGR
2.7 17.6 4.9
16.6 5.5 21.4
15.2 7.3 16.4
13.8 44.9 44.7
15.0 18.3 25.3
15.1% 18.0% 26.5%
Book Value (Rs) EPS (Rs) DPS (Rs) Payout Ratio (%) Average Yield (%)
18.4 8.3 7.0 95.1 3.8%
19.9 10.2 7.5 84.5 1.7%
20.6 11.8 9.5 92.5 2.9%
11.9 17.0 13.0 98.2 3.4%
15.9 21.3 15.0 82.1 3.2%
Ratios
FY2005 Returns (%) ROE RONW ROCE Ratios Asset Turnover (X) Inventory (Days)** Debtors (Days)** Net Working Capital (%/s) EVA*** (Rs MM) 83.3 45.9 53.7 FY2006 101.2 52.8 61.5 FY2007 117.8 58.1 61.1 FY2008 309.8 104.7 110.9 FY2009 2,134.4 153.4 154.9
11.4 25.3 5.9 -12.8% 691.3
9.4 22.3 1.9 -17.9% 972.3
7.9 21.2 2.5 -17.5% 820.4
8.2 17.8 2.2 -17.8% 1,488.7
9.3 17.1 2.3 -17.8% 1,958.1
Share Price Performance

18,000 17,287 16,000 471 500 480 460 440 14,000 412 12,000 420 400 380 360 10,000 9,709 340 320 8,000 300
Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar08 08 08 08 08 08 08 08 08 09 09 09
Sensex Colgate
Shareholder Returns
Year Shares Value (LC) 6,250 25,600 66,31,680
1978 1994 2009 *
IPO - 250 Rights - 1,280 Holdings - 14,080
* as on March 31, 2009
Dividend Received (includes Capital reduction)
1,623,979
Compounded return of 27% since the IPO

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Colgate Palmolive Analyst Presentation 2009

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Welcome to Colgate-Palmolive India

COLGATE-PALMOLIVE (INDIA) LIMITED

ANALYST MEET MAY 2009

COLGATE-PALMOLIVE (INDIA) LIMITED

ANALYST MEET MAY 2009

FMCG sector is buoyant

600 468 400

0 2001 2002 2003 2004 2005 2006 2007 2008

ANALYST MEET MAY 2009

2008 Key Category Growth

19.0 16.2 14.5

ANALYST MEET MAY 2009

2008 Key Category Growth

Colgate, 18.0 Market, 14.5

ANALYST MEET MAY 2009

3 Yr. Category Growth

13.9 12.2 12.9

0 Toilet Soaps Det Cakes Toothpaste Toothbrush Skin Creams Shampoo

% Growth in Value Source : AC Nielsen

ANALYST MEET MAY 2009

3 Yr. Category Growth

20 Colgate, 16.6 Colgate, 15.2 15 Market, 13.9

% Growth in Value Source : AC Nielsen

ANALYST MEET MAY 2009

A significant opportunity to drive penetration

Source: Indian Readership Survey Dentifrice = Toothpaste or toothpowder

ANALYST MEET MAY 2009

Opportunity to increase per capita consumption

COLGATE-PALMOLIVE (INDIA) LIMITED

ANALYST MEET MAY 2009

COLGATE-PALMOLIVE (INDIA) LIMITED

ANALYST MEET MAY 2009

MOSES A ELIAS CFO / DIRECTOR

LAURENCE WHEELER EVP MFG & PSC

PRABHA PARAMESWARAN VP - MARKETING

ADITYA SINGH VP - HUMAN RESOURCES

SANJEEV DALI DIRECTOR GSSO

SURENDRA MANEK VP- IGTC

COLGATE-PALMOLIVE (INDIA) LIMITED

ANALYST MEET MAY 2009

Need for outsourcing due to historical regulatory environment

COLGATE-PALMOLIVE (INDIA) LIMITED

ANALYST MEET MAY 2009

Need for outsourcing due to historical regulatory environment Sold

Baroda Surat Daman Mumbai Aurangabad Hyderabad

Merged with CPIL

COLGATE-PALMOLIVE (INDIA) LIMITED

ANALYST MEET MAY 2009

COLGATE-PALMOLIVE (INDIA) LIMITED

ANALYST MEET MAY 2009

Toothpaste / Toothpowder Portfolio

COLGATE-PALMOLIVE (INDIA) LIMITED

ANALYST MEET MAY 2009

COLGATE-PALMOLIVE (INDIA) LIMITED

ANALYST MEET MAY 2009

Personal Care / Home Care Portfolio

COLGATE-PALMOLIVE (INDIA) LIMITED

ANALYST MEET MAY 2009

COLGATE-PALMOLIVE (INDIA) LIMITED

ANALYST MEET MAY 2009

Urban + Rural 81%

COLGATE-PALMOLIVE (INDIA) LIMITED

ANALYST MEET MAY 2009