Colgate-palmolive (india) Limited · NSE:COLPAL
Colgate-palmolive (india) — FY2019-20 Earnings Presentation
71 slides from Colgate-palmolive (india)'s earnings presentation, May 22, 2020
Slide 1: Cover letter: Presentation of Analyst/Institutional Investor Meeting
May 22, 2020 The Secretary BSE Limited P.J.Towers- 25th floor Dalal Street Mumbai- 400001 Scrip Code: 500830 The Manager – Listing Department National Stock Exchange of India Limited Symbol: COLPAL Exchange Plaza, C-1, Block – G Series: EQ Bandra – Kurla Complex Bandra (East), Mumbai 400 051 Dear Si
Slide 2: Colgate-Palmolive (India) Limited
Colgate-Palmolive (India) Limited
Slide 3: 2
2
Slide 4: Key Priorities
Key Priorities Drive Sales Growth Maximize Lead to Earnings Win 33
Slide 5: Key Priorities
Key Priorities Drive Sales Growth Maximize Lead to Earnings Win 44
Slide 6: Drive Sales Growth
• Superior Brand Engagement Drive • Innovation for Growth Sales Growth • Winning in Emerging REs • Continue to Strengthen GTM 55
Slide 7: Drive Sales Growth
• Superior Brand Engagement Drive • Innovation for Growth Sales Growth • Winning in Emerging REs • Continue to Strengthen GTM 66
Slide 8: Our Brand Purpose
Our Brand Purpose 77
Slide 9: Bringing our philosophy to life
Bringing our philosophy Bringingtoour life philosophy to life 8
Slide 10: #Championing Optimism through stories
#Championing Optimism through stories 99
Slide 11: Driving Conversations
Driving Conversations 10 10
Slide 12: Celebrating Real Heroes of Optimism
Celebrating Real Heroes of Optimism Anand Arnold SindhuTai (Maai) Divyanshu Ganatra Wheelchair Olympian Mother to 1400 Orphans Visually Impaired Solo Paraglider 11 11
Slide 13: Maximizing Special Days
Maximizing Special Days 12 12
Slide 14: Celebrating Smile Day
Celebrating Smile Day 2.4Bn+ 1.6Mn+ 13
Slide 15: Slide 15
Slide 16: A moment of pride: Guinness World Record
A moment of pride Guinness World Record for 26,382 children brushing simultaneously at one venue
Slide 17: Most Trusted Oral Care Brand, 9 years in a row
Most Trusted Oral Care Brand 9 yrs in a row! Source – ET Brand Equity 16 16
Slide 18: Bought by more & loved more
Bought by more & loved more +300 +160 bps bps Colgate Household Penetration – Q1 ’20* Colgate Brand Love – 2019** *v/s Q1 18 **v/s 2018| Source – Kantar HH Panel, IPSOS Brand Track 17 17
Slide 19: Extending our philosophy to our brands
EXTENDING OUR PHILOSOPHY TO OUR BRANDS 18
Slide 20: Every Day – A fresh start with Maxfresh!
Every Day – A fresh start with Maxfresh! 19
Slide 21: Maxfresh campaign and digital award
Max iest XG aplBattle .4 Wl GY B® uv a Kane ma Ay flo | GOLD at IAMAI I (Indian dig digital awards ifi’2020) for the Best use of Instagram Colgate 20
Slide 22: Winning with Naturals
ENGTHENING + FRESHNESS tid + MASSAGE + GUM CARE
Slide 23: Oral Health Overall Health
Oral Health Overall Health
Slide 24: Impactful Brand Experience Campaign
Impactful Brand Experience Campaign Impactful TV Delighting shoppers communication Both offline & online YouTube Takeover 5 Mn engagement 23
Slide 25: Continued focus on trials
Continued focus on trials Van Sampling 400+ Towns 70, Mn+ samples Colgate Ww
Slide 26: Encouraging Results
Encouraging Results Impactful Brand Experiences Awareness New Triers Penetration +15% 9x 2x Q1 20 Vs Q1 19 | Source – Kantar HH Panel, IPSOS Brand Track 25
Slide 27: Drive Sales Growth
• Superior Brand Engagement Drive • Innovation for Growth Sales Growth • Winning in Emerging REs • Continue to Strengthen GTM 26
Slide 28: New News in India's #1 Brand
New News in India’s #1 Brand Biggest Revolution in Oral Health in decades 27
Slide 29: Our Best Ever Clinically Superior Technology
Our Best Ever Clinically Superior Technology Clinical 23+ Studies Consumer 25+ Tests Years of 10+ Research +18,000 PEOPLE PARTICIPATING 28
Slide 30: Building strong teeth with Amino Shakti
Building strong teeth with Amino Shakti Traditional 4x Approach Fluoride Arginine Strengthening Power for Teeth Feeds good bacteria Weakens bad bacteria 29
Slide 31: Re-launch like never before
Re-launch like never before 500k stores activated with Communication highlighting in-store ‘Andar se Strong’ Moms Led Digital 3.5 Mn Engagement 30
Slide 32: Black is Back – This time in toothpaste!
Black is Back – This time in toothpaste! 31
Slide 33: Focused Premium Opportunity
Focused Premium Opportunity Focused demand generation through digital High Impact MT Activation 1 SOM in MT 32
Slide 34: Innovating in new sub-segments
Innovating in new sub-segments 33
Slide 35: Bringing Naturals to Toothbrushes
Bringing Naturals to Toothbrushes Colgate ZigZag Colgate Superflexi Colgate ZigZag Neem Charcoal Charcoal
Slide 36: Launching Colgate Bamboo toothbrush
Launching Colgate Bamboo toothbrush Bamboo Handle Zero Plastic Packaging Bamboo Charcoal Infused Bristles Floss tip bristles 35
Slide 37: Power up your brushing experience!
Power up your brushing experience! 36
Slide 38: Power up your brushing experience
Power up your brushing experience 37
Slide 39: Exotic indulgence like never before
Exoticlike Exotic indulgence Indulgence like never before never before 38
Slide 40: Launching Palmolive Hand Sanitizer
Launching Palmolive Hand Sanitizer 99.9% Germ Kill Cares for your hands 39
Slide 41: Drive Sales Growth
• Superior Brand Engagement Drive • Innovation for Growth Sales Growth • Winning in Emerging REs • Continue to Strengthen GTM 40
Slide 42: Winning in Ecom
Winning in Ecom Dedicated Organization Distinctive Portfolio Customer Event partnerships 41
Slide 43: Winning in Ecom
Winning in Ecom 7x Exit Q1 ‘19 +200 Exit Q1 ‘20 bps 2016 2017 2018 2019 Colgate E-commerce Business Colgate E-commerce SOM Source – Customer scan SOM 42
Slide 44: Winning in Modern Trade
Winning in Modern Trade Shopper focused portfolio Demand generation in-store 43
Slide 45: Winning in Modern Trade
Winning in Modern Trade 1.9x Q1 ‘18 +160 Q1 ‘20 bps 2014 2015 2016 2017 2018 2019 Colgate Modern Trade Business Colgate Modern Trade SOM Source – Customer scan SOM 44
Slide 46: Drive Sales Growth
• Superior Brand Engagement Drive • Innovation for Growth Sales Growth • Winning in Emerging REs • Continue to Strengthen GTM 45
Slide 47: Winning with our stockists
Winning with our stockists Colgate 18.3 Company A 13.6 Company B 8.3 Colgate-Palmolive voted as Company C 7.7 the most preferred Company D 5.9 manufacturer by distributor Company E 5.3 community Company F 5.3 Company G 5.3 Company H 4.7 Company I 4.1 Source – FMCG Ground Report by AIC 46
Slide 48: Winning with Wholesale
Winning with Wholesale 47
Slide 49: Leveraging technology to increase productivity
Leveraging technology to increase productivity Technology to Two-way Data Dashboards Data Modelling & customized support Salesman Communication on the Go store order recos 48
Slide 50: Ensuring availability during COVID
Ensuring availability during COVID Leveraging local logistics vendors Leveraging technology for Contactless order booking 49
Slide 51: Key Priorities
Key Priorities Drive Sales Growth Maximize Lead to Earnings Win 50
Slide 52: Finance Strategy
Finance Strategy Sales/Volume Margin Non-variable Overhead Advertising Operating Profit 51
Slide 53: Q4 2019-20
Q4 2019-20 Net Sale Advertising PAT 64.4% 24.7% +10 bps 1,062.4 Cr 204.2 Cr 14.6% -7.4% +3.3% Gross Margin EBITDA 52
Slide 54: FY 2019-20
FY 2019-20 Net Sale Advertising PAT 65% 26.8% +20 bps 4,487.6 Cr 816.5 Cr 14.0% +1.2% +5.3% Gross Margin EBITDA 53
Slide 55: Net Sales
Net Sales Rs. Crores 10 Yr CAGR 9% 4,432 4,488 4,500 4,159 3,955 3,951 4,000 3,838 3,545 3,500 3,084 3,000 2,624 2,500 2,221 2,000 1,500 1,000 500 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 54
Slide 56: Gross Margin
Gross Margin % 66 64.8 65.0 64.2 64 62.9 62.6 62 61.5 60.7 60.4 60.0 60 59.5 58 56 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 55
Slide 57: Advertising
Advertising % 14.0 14.0 13.0 12.7 12.5 12.7 12.0 11.5 11.7 10.6 10.2 10.0 10.0 8.0 6.0 4.0 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 56
Slide 58: EBITDA
EBITDA % 30.0 27.9 26.8 26.8 24.5 23.9 25.0 23.3 22.0 21.3 20.8 20.0 18.7 15.0 10.0 5.0 - 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 57
Slide 59: NPAT
NPAT Rs. Crores 10 Yr CAGR 7% 900 816 800 776 700 673 600 559 581 577 540 497 500 446 403 400 300 200 100 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 58
Slide 60: EPS
EPS % 10 Yr CAGR 7% 35.0 30.0 30.0 28.5 24.8 25.0 20.6 21.4 21.2 19.8 20.0 18.3 16.4 14.8 15.0 10.0 5.0 - 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 59
Slide 61: DPS
DPS Rs. 30 28 25 24 23 20 15 14 14 13 12 11 10 10 10 5 - 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 60
Slide 62: Prudent Financial Management
Prudent Financial Management • Proactive Receivables Management • Supplier payments on time • Vendor finance program to address supplier liquidity • Inventory coverage addressing flexibility requirement • Continued sharp focus on costs across all lines 61
Slide 63: Key Priorities
Key Priorities Drive Sales Growth Maximize Lead to Earnings Win 62
Slide 64: Leading to win: People, Performance, Planet
Leading to win People Performance Planet Focused commitment on where we can make the greatest difference 63
Slide 65: People – Our response to COVID
People – Our response to COVID Access to the Partnering with Govt on Solving for dental emergencies underprivileged: Suraksha Stores initiative - dentistsforme.com ● Ration kits ● Oral Health packs 64
Slide 66: People – Our response to COVID
People – Our response to COVID Factory Teams Warehouse Teams CD Teams 65
Slide 67: People – Providing foundational support
People – Providing foundational support To Provide Foundational Support Bright Smiles Bright Future Campaign to millions of Indians Bringing Oral Health education to children 66
Slide 68: Performance
Performance Reduction of Water Usage in Plants Self generated power @ Sri City 27% of Sanand is Wind Power Sourced Platinum LEED Certification across all sites 67
Slide 69: Planet
Planet Save Water Initiatives - Partnership with Water for People Women Self Help Group Empowering Children with Education 68
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Slide 71: Colgate – Smile karo aur shuru ho jao
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