COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2008
Welcome to Colgate-Palmolive India
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2008
COUNTRY STATISTICS1. Economy* :
• Inflation at 7.8% (# May 2008)• US $ 300 bn in foreign exchange reserves• Infrastructure investment expected – US $ 492bn• F/X @ 42.70/$ (# May 2008)
2. Growth Rates* :• GDP 8.7%• Industry 8.9%• Agriculture 2.6%• Service sector 10.7%
3. Rural Bias** :• 772 mn people = 72% of the population live in villages• Agriculture contributes 20 % of India’s GDP • Literacy rate 59% - communication is difficult• Only 80% villages are electrified
* Source : Citibank** Source : 2001 Census Data# indicative
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2008
COUNTRY AND INDUSTRY PROFILE
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2008
FMCG sector continues to be buoyant
Source: AC Nielsen Retail Measurement Services
*
*
58,56154,221
50,43649,43846,809
71,130
83,709
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
2001 2002 2003 2004 2005 2006 2007
6%
18%
21%
8%8%2%
Rs. In Million
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2008
Growth in all key categories including toothpaste
Growth in categories is Value basedEstimates based on data from AC Nielsen Retail Measurement Services
7.5
10.6
13.2
17.5
14.6
8.3
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
20.0
Toilet Soaps WashingPowder
DetergentCakes
Toothpaste Skin Creams Shampoos
%
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2008
3 Yr. Growth in all key categories
7.1
11.5
8.6 9.0
11.3
14.8
15.9
0
2
4
6
8
10
12
14
16
18
Toilet Soaps WashingPowder
DetergentCakes
Toothpaste Toothbrush Skin Creams Shampoos
(%)
Growth in categories is Value basedEstimates based on data from AC Nielsen Retail Measurement Services
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2008
Indian Oral Care market offers significant opportunities to drive penetration
Category Penetration
44 44 45 46 49 53 53
36 36 35 35 35 35 35
70 71 72 73 74 78 78
0
25
50
75
100
2001 2002 2003 2004 2005 2006 2007
Toothpaste Toothpowder Dentifrice
Source: Indian Readership SurveyDentifrice = Toothpaste or toothpowder
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2008
Opportunity to increase per capita consumption by increasing the frequency of brushing teeth
Source: AC Nielsen Retail Measurement Services & Indian Readership Survey
7%110India - Urban
86%285Malaysia
61%219China
%age - twice a day brushing
Per Capita Consumption (Grams/HH/Month)
7%92India - Urban
86%285Malaysia
61%219China
%age - twice a day brushing
Per Capita Consumption (Grams/HH/Month)
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2008
COMPANY PROFILE
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2008
ROGER CALMEYERVP SOUTH ASIA & MD INDIA
PRABHA PARAMESWARAN VP - MARKETING
MOSES A ELIAS EVP & CFO
SHEKHAR BHARATWAJVP - CUSTOMER DEVELOPMENT
LAURENCE WHEELEREVP – MFG & PSC
K V VAIDYANATHANLEGAL DIRECTOR &
CO. SECRETARYVP - HUMAN RESOURCES
LEADERSHIP TEAM
SANJEEV DALIDIRECTOR GSSO
SURENDRA MANEKV-P IGTC
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2008
HISTORY• Incorporated in 1937
• Only CP subsidiary publicly listed with shares traded on a Stock Exchange
1937 – 1978 Pvt. Ltd. Co. Colgate-Palmolive Co – 100% Indian Public – NIL
1979 - 1993 Public Ltd. Co. Colgate-Palmolive Co – 40% Indian Public – 60%
1994 - 2005 Public Ltd. Co. Colgate-Palmolive Co – 51% Indian Public – 49%
2006 Public Ltd. Co. Colgate-Palmolive Co – 40% Colgate-Palmolive (Asia) Pte. – 11%Indian Public – 49% (Comprising ofIndian Financial Institutions 13%Foreign Financial Institutions 8%Pvt. Corporates 4%Individuals 24%
Total nos shareholders : 136,015)
2007 Reduction of Capital (Face Value of share reduced from Rs 10 to Re 1)Rs 9 paid back to shareholders in Dec 2007
• Incorporated in 1937
• Only CP subsidiary publicly listed with shares traded on a Stock Exchange
1937 – 1978 Pvt. Ltd. Co. Colgate-Palmolive Co – 100% Indian Public – NIL
1979 - 1993 Public Ltd. Co. Colgate-Palmolive Co – 40% Indian Public – 60%
1994 - 2005 Public Ltd. Co. Colgate-Palmolive Co – 51% Indian Public – 49%
2006 Public Ltd. Co. Colgate-Palmolive Co – 40% Colgate-Palmolive (Asia) Pte. – 11%Indian Public – 49% (Comprising ofIndian Financial Institutions 13%Foreign Financial Institutions 8%Pvt. Corporates 4%Individuals 24%
Total nos shareholders : 136,015)
2007 Reduction of Capital (Face Value of share reduced from Rs 10 to Re 1)Rs 9 paid back to shareholders in Dec 2007
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2008
Aurangabad
Goa
HyderabadMumbai
Baroda
NEPAL
CP FACTORIES - 6DENTIFRICE CM’s - 1
Kodur
TOOTHBRUSH CM’s - 6PCP/HCP CM’s - 3
SuratDaman
Baddi
OPERATIONS NETWORK
Need for outsourcing due to historical regulatory environment
BUSINESS COMPLEXITY
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2008
Chennai
AlleppyTrichy
Hasangadh
Bhubaneshwar
Patna
Calcutta
Gauhati
IndoreAurangabad
Kanpur
Morinda
Jaipur
Ghaziabad
Bangalore
Goa
Hyderabad
Delhi
Mumbai
BarodaRaipur
WAREHOUSES - 23
DC & WAREHOUSES - 3
Vijaywada
Uttaranchal
Bhiwandi
TripuraJamshedpur
SATELLITE WH’s - 4
Jammu & KashmirHimachal
Chandigarh
Hubli
Historically each State has had its regime of sales & local taxes, in addition to a Central Sales Tax
WAREHOUSE & DISTRIBUTION
NETWORK
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2008
CATEGORIES / PRODUCTSCATEGORIES / PRODUCTS
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2008
Colgate was voted “The Most Trusted Brand” in
India for the fourthconsecutive year in the
Brand Equity ORG-MARG ACNielsen survey
across all brands and categories. This is the
sixth survey and “Colgate”has been the only brand to be consistently ranked in the top 3 for all the six years and to hold the leadership for four consecutive years.
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2008
MOST TRUSTED BRAND
Ranked India’s # 1 Most Trusted Brand for the 4th time in a row in the Brand Equity – A.C. Nielsen 2007 Survey
Only Brand to be ranked among the top 3 in all the 6 surveysconducted so far
Only one to retain the premier position across categories for 4 consecutive years
Prior to this, Colgate was also rated as the #1 brand by the A&M- MODE Annual Survey for India’s Top Brands for eight out of nine years during the period 1992 to 2001.
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2008
DISTRIBUTION NETWORK• 1843 direct accounts & 3,814,284 indirect accounts
• 2nd most widely distributed product in the country
• Numeric Distribution of CP Paste @ Dec 2007:
Urban 83.4%
Rural 76.2%
Urban + Rural 79.5%
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2008
Strategic Position
* Urban only
Source: AC Nielsen Retail Measurement ServicesPeriod : Jan+Dec 07
Category Value SOM % Market Position Relative Share
Tooth Paste 48.4 1 1.6
Tooth Powder 44.3 1 1.4
Tooth Brush 34.9 1 2.2
Liquid Handwash* 6.9 4 0.1
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2008
Share of MarketToothpaste
2005 2006 2007CY Q1
2007CY Q1
2008 2007-2006Colgate 46.7 47.8 48.4 48.2 48.3 0.6Competitor 1 32.1 30.4 29.9 30.0 29.8 (0.6)All Other 21.2 21.8 21.7 21.8 22.0 (0.1)
- Share of market - Value- Source: AC Nielsen Retail Measurement Services
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2008
Share of MarketToothpowder
- Share of market - Value- Source: AC Nielsen Retail Measurement Services
2005 2006 2007CY Q1
2007CY Q1
2008 2007-2006Colgate 46.6 44.2 44.3 44.2 45.5 0.1Competitor 1 31.5 31.0 31.0 31.6 30.0 (0.1)All Other 21.9 24.8 24.7 24.2 24.5 (0.0)
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2008
Share of MarketToothbrush
- Share of market - Value- Source: AC Nielsen Retail Measurement Services
2005 2006 2007CY Q1
2007CY Q1
2008 2007-2006Colgate 30.9 34.4 34.9 34.9 37.2 0.5Competitor 1 19.9 16.5 15.5 16.7 13.9 (1.0)Competitor 2 11.6 9.9 15.9 13.2 17.6 6.0All Other 37.7 39.2 33.7 35.2 31.2 (5.5)
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2008
BUSINESS MODEL
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2008
Closer toDRIVING - Customer
GROWTH - Consumer- Profession
FUNDINGGROWTH
Efficiency & Effectivenessin Everything
INNOVATION EVERYWHERE
Consumer InnovationCentre
BEST PLACETO WORK
BUSINESS MODEL
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2008
Closer to the Customer….Disha & eChoupal50% of India’s GDP and purchasing power lies in rural
Only 60% of villages are connected by an all weather road
Currently CP reaches only 79% of the universe, barriers to further coverage expansion being
Inefficient last mile logisticsScaling up distribution through stockist is expensive and difficult to track
Advent of two new rural coverage projects for rapid distribution in rural areas :
Ride with someone who goes deeper –eChoupal (village gathering place)
Train independent traders to go deeper -Disha
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2008
Closer to the Customer….Disha & eChoupal
eChoupalE-Choupal is a concept wherein trained farmers (Sanchalak) manage prominently located IT enabled Choupals
Activity increased from 120 choupals (Jan 05) to 5,335 choupals (Dec 07)
DishaDisha covers 47,000 Haats – unregulated periodic markets (market size - US $1.0 billion) at 1/100 of the conventional cost using unemployed youth in rural India
No of villages covered - increased from 162 (Dec 04) to 4,620 in (Dec 07)
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2008
social c
ause
Oral cancer
Pledge collection from all
contact points
OHM 2007 – The wheels in motion…
• Brush Up Challenge• Consumer Contact
Program• Shopper Engagement
Program• ITC E-Choupal• Disha
• Media • Public Relations• Trade Activities• On pack messages
‘Supporting the treatment of oral cancer patients’ Collection of pledges from all contact points
• In Clinic | Baddi Factory| Corporates • Rotary• Rural Camps• Regional Initiatives• Mobile Vans
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2008
OHM 2007 -Innovation Everywhere
• 66 % increase in participation of dentists
• 72 % increase in town coverage for free dental checkups
• Additional reach to 432 villages
• Reaching out to over 11 million people through OHM 2007
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2008
OHM 2007 - Rural Initiatives
• Target: 30K – 100K population villages
• Dental check-up camps in 42 villages/small towns
• Pre-publicity unit in schools & Anganwadis for 1 day
• Dental Camp for 2 days in one town
Pledge collection at all customer contact points
Reaching out to Rural India for the first time with a 3 tier approach
• Target Schools and farmers• Brushing Activity in Schools &
Checkup camps at Choupal Sagars
• 181 villages & 18 Choupal Sagars
• Reaching out to 156villages with project Disha in UP
• Reaching out to 36villages in Maharashtra through schools and haats
• Checkups in Kota Dussera Mela
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2008
Colgate Brush Up ChallengeCreated a Guinness record in ‘Most people brushing their teeth (multiple venue)’ with 177,003 kids brushing at the same time
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2008
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-- 30,000 dentists (60% of dentist universe) under detailing
coverage in 2007• Professional oral care distribution network consolidated in 60 towns
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2008
Closer to the Profession…. Professional Oral Care
BRMO - Brand Recommended Most Often by Dentists
BUMO - Brand Used Most Often by Dentists
Source : Dentist Track 2006 and 2007
YearColgate Comp Colgate Comp
Toothpaste 2007 80% 4% 87% 5%2006 77% 3% 86% 5%2005 75% 6% 82% 5%
Toothbrushes 2007 71% 14% 75% 16%2006 61% 17% 66% 21%2005 54% 23% 62% 23%
BRMO BUMO
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2008
Efficiency & Effectiveness in Everything….GTC India
CompetenciesProduct Development : Dentifrice, Soaps, Creams, Talc
Analytical & Micro : Across all Categories
Global Stability Studies : UAP, PCP and OC
Technical Consumer : Oral Sensory PanelSkin Sensory PanelOdor Evaluation Board
Clinical : UAP, Skin, Oral care
Global Statistical Support
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2008
Efficiency & Effectiveness in Everything….Global Shared Services Organisation - GSSO
Expanding Global IT capacity & providing resources with leading edge Technology talent
Provide world class IT Services to Colgate Business worldwide
Performance and Reliability as #1 priority
Integrate seamlessly (ONE team) with all Shared service Organizations, Global Development and Enterprise Data center
Leverage time difference - Follow-the-Sun approach (Enterprise Data Center / End User Computing)
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2008
Experiment
Follow-The-Sun& programming
Application Support - 227
Grid Projects
Ownership &Accountability
20
55
95
196
270 +
131
Global Support
October 2004 April 2005 October 2005 April 2006 October 2006 January 2008
Normal O
peration
Start-up
Efficiency & Effectiveness in Everything….GSSO Ramp up
25
100
75
200
150
270
50
Headcount
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2008
Efficiency & Effectiveness in Everything….Billing Update on Mobile Phones
Provide the latest billing information to concerned CP Sales employees via an SMS.“In-house” web application to keep track of sales performanceIntegration of Colgate’s application with the mobile service provider’s application, allowing billing data to be downloaded from SAPBilling information is now available from anywhere on a 24x7 basisCost savings and an effective use of technology in a very inexpensive manner.
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2008
Innovation EverywhereConsumer Innovation Centre
• Dedicated to new product development for the Indian consumer
• A cross-functional team that generate ideas and follow a rigorous innovation process to deliver world class products to satisfy consumer needs.
STRATEGY
PROCESS
PASSION
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2008
Best Place To Work• “You Can Make A Difference” Program
3 Global Award winning projects in last 5 years
550 winners from FY2000 till 2007
• Global Talent Pool2005 2006 2007
International Training 25 50 30
Short Term Assignments/ Secondments 13 8 16
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2008
FINANCIAL REVIEW
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2008
FINANCIAL STRATEGY
Grow Top line
Reduce Costs
Invest in Brand Building
/ New Products
Grow NPAT
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2008
(Rs Crores)Quarter Ended
Quarter Ended
Year Ended
Year Ended
31/Mar/08 31/Mar/07 31/Mar/08 31/Mar/07(Audited) (Audited)
- Net Sales (Excl. Excise Duty) 391.33 343.25 1,473.38 1,295.14 - Other Income 21.40 17.35 84.78 67.00
Total Revenue 412.73 360.60 1,558.16 1,362.14
- (Increase) / Decrease in Stock in Trade 3.68 0.13 (2.17) (5.56) - Raw and Packing Material Cost 75.47 59.14 280.03 239.27 - Purchase of Goods 97.65 94.61 354.92 342.65 - Employee Cost 30.74 25.09 117.28 111.91 - Voluntary Retirement Scheme - (0.78) 1.00 58.02 - Depreciation , Amortisation and Impairment 5.45 3.65 19.84 15.26 - Advertising & Sales Promotion 73.45 63.93 256.51 207.50 - Other Expenditure 59.78 46.81 237.26 190.50
Total Expenditure 346.22 292.58 1,264.67 1,159.55
Interest Expense 0.36 0.25 1.44 0.98
Profit from Ordinary Activities Before Tax 66.15 67.77 292.05 201.61
Provision for Taxation -Current Tax 12.87 13.94 58.25 53.98-Deferred Tax (2.64) 2.19 (2.16) (16.74)-Fringe Benefit Tax 0.30 1.05 4.25 4.20
Net Profit after Tax 55.62 50.59 231.71 160.17
Paid-up Equity Share Capital @ 13.60 #136.00 @ 13.60 #136.00(@ - Face value: Rupee 1 per share)(# - Face value: Rupees 10 per share)Reserves excluding Revaluation Reserve 148.61 144.53
Basic and Diluted EPS (Rs.) 4.09 3.72 17.04 11.78
Dividend (Rs.Per share)First Interim Dividend - - 6.00 4.25Second Interim Dividend - 3.25 - 3.25Final Dividend (Proposed) 7.00 - 7.00 - Special Dividend (Proposed) - 2.00 - 2.00 Total 7.00 5.25 13.00 9.50
Aggregate of Public shareholding - Number of Shares 66,636,481 66,636,481 66,636,481 66,636,481 - Percentage of holding 49% 49% 49% 49%
AUDITED FINANCIAL RESULTS FOR THE YEAR ENDED MARCH 31, 2008
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2008
Grow ToplineQuarterly Sales Growth
(% = current year vs previous year)
2,000
2,250
2,500
2,750
3,000
3,250
3,500
3,750
4,000
4,250
Apr-Jun 2006 Jul-Sep 2006 Oct-Dec 2006 Jan-Mar 2007 Apr-Jun 2007 Jul-Sep 2007 Oct-Dec 2007 Jan-Mar 2008
(Rs.
MM
) 15.1%12.8%
13.6%13.3%
13.7%14.0%
14.0%
19.9%
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2008
Net Sales
1,473
1,295
964
1,124
500
600
700
800
900
1,000
1,100
1,200
1,300
1,400
1,500
2004-05 2005-06 2006-07 2007-08
(Rs.
Cro
res)
+2.7%
+15.2%
+16.6%
+13.8%
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2008
Costs (Excl. Advt. & Depre.)
- All numbers adjusted to reflect Operating results for 2007-08, 2006-07 & 2005-06
987882752
666
69.1%
66.9%67.0%
68.1%
0
200
400
600
800
1,000
1,200
2004-05 2005-06 2006-07 2007-08
(Rs.
Cro
res)
Cost % Sales
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2008
Advertising
- All numbers adjusted to reflect Operating results for 2007-08, 2006-07 & 2005-06
198
137
211
257
17.4%16.3%
17.6%
14.2%
50658095
110125140155170185200215230245260
2004-05 2005-06 2006-07 2007-08
(Rs.
Cro
res)
10%
11%
12%
13%
14%
15%
16%
17%
18%
Advertising % Sales
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2008
EBITDA
- All numbers adjusted to reflect Operating results for 2007-08, 2006-07 & 2005-06
230202
174161
15.6%
16.7%
15.5%15.6%
3045607590
105120135150165180195210225240
2004-05 2005-06 2006-07 2007-08
(Rs.
Cro
res)
5%
7%
9%
11%
13%
15%
17%
19%
EBITDA % Sales
+8.0%+10.2%
+16.0% +13.6%
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2008
EBIT
- All numbers adjusted to reflect Operating results for 2007-08, 2006-07 & 2005-06
210187159
139
14.4%
14.2% 14.4%
14.2%
30
50
70
90
110
130
150
170
190
210
230
2004-05 2005-06 2006-07 2007-08
(Rs.
Cro
res)
5.0%
7.0%
9.0%
11.0%
13.0%
15.0%
17.0%
EBIT % Sales
+13.8%+14.7%
+17.2% +12.3%
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2008
Profit Before Tax
- All numbers adjusted to reflect Operating results for 2007-08, 2006-07 & 2005-06
178199
247
293
17.7%
18.5%
19.9%19.1%
60
110
160
210
260
310
2004-05 2005-06 2006-07 2007-08
(Rs.
Cro
res)
15%
20%
25%
PBT % Sales
+17.6%
+11.5%
+24.3%
+18.8%
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2008
Income Tax
- All numbers adjusted to reflect Operating results for 2007-08, 2006-07 & 2005-06
65
51
62 61
20.7%
24.9%
25.9%
36.4%
0
10
20
30
40
50
60
70
2004-05 2005-06 2006-07 2007-08
(Rs.
Cro
res)
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
Tax Tax Rate
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2008
Profit After Tax
- All numbers adjusted to reflect Operating results for 2007-08, 2006-07 & 2005-06
232
185
147
113
15.8%14.3%
13.1%
11.7%
75
95
115
135
155
175
195
215
235
255
2004-05 2005-06 2006-07 2007-08
(Rs.
Cro
res)
5.0%
7.0%
9.0%
11.0%
13.0%
15.0%
17.0%
PAT % Sales
+29.9%
+4.9%
+26.0%
160
137
+21.4%
+16.4%
+25.4%
231
+44.3%
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2008
EPS, DPS & Payout
17.0
11.8
8.3
10.1
13.0
9.5
7.0
7.5
85%
92%
89%
95%
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
2004-05 2005-06 2006-07 2007-08
(Rs.
)
50%
55%
60%
65%
70%
75%
80%
85%
90%
95%
100%
EPS DPS Payout
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2008
Net Working Capital
-262
-226-201
-123
-17.8%-17.5%
-17.8%
-12.8%
-300
-250
-200
-150
-100
-50
0
2004-05 2005-06 2006-07 2007-08
(Rs.
Cro
res)
-20.0%
-15.0%
-10.0%
-5.0%
0.0%
NWC % Sales
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2008
Fixed Assets
80
160 16819171
924
8
50
75
100
125
150
175
200
225
2004-05 2005-06 2006-07 2007-08
(Rs.
Cro
res)
FA Cap WIP
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2008
Cash Gen. from Operations
- All numbers adjusted to reflect Operating results for 2007-08, 2006-07 & 2005-06
282
122
185
209
50
100
150
200
250
300
2004-05 2005-06 2006-07 2007-08
(Rs.
Cro
res)
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2008
Treasury Portfolio
217
271306
313
0
50
100
150
200
250
300
350
2004-05 2005-06 2006-07 2007-08
(Rs.
Cro
res)
- 2007-08 numbers are post payout of Rs 143.20 crores on account of Reduction of Capital
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2008
Return on Capital & Equity
- All numbers adjusted to reflect Operating results for 2007-08, 2006-07 & 2005-06
310.7%
83.3%
136.3%
108.2%95.4%
53.7%
66.3%64.0%
20.0%
45.0%
70.0%
95.0%
120.0%
145.0%
170.0%
195.0%
220.0%
245.0%
270.0%
295.0%
320.0%
345.0%
2004-05 2005-06 2006-07 2007-08ROE ROCE
Reduction of Capital
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2008
Share Price PerformanceSensex, BSE FMCG, COLGATE
12,000
13,000
14,000
15,000
16,000
17,000
18,000
19,000
20,000
21,000
Apr-07 Oct-07 Apr-08-
500
1,000
1,500
2,000
2,500
3,000
Sensex BSE FMCG CP
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2008
Average Yield
1.7%
3.4%
2.9%
3.8%
0.1%
0.6%
1.1%
1.6%
2.1%
2.6%
3.1%
3.6%
4.1%
2004-05 2005-06 2006-07 2007-08
BSE Sensex - 1.03%
SP - 332
SP - Share Price as on 31st March
SP - 432
SP - 182SP - 382
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2008
Shareholder ReturnsYear Shares Value
(LC)
1978 IPO - 250 6,2501994 Rights - 1,280 25,6002008 * Holdings - 14,080 53,78,560* as on March 31, 2008
Dividend Received 1,398,699(including Capital reduction of Rs. 9 per share)
Compounded return of 26% since the IPO
COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET – MAY 2008
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