Colgate-palmolive (india) Limited · NSE:COLPAL
Colgate-palmolive (india) — Wellington Investor Meet Mar'24 (March 2024)
53 slides from Colgate-palmolive (india)'s conference presentation, Mar 13, 2024
Slide 1: Investor/Analyst Meet cover letter to exchanges
March 13, 2024 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
Slide 2: Wellington Investor Meet Mar'24
Colgate Palmolive (India) Limited Wellington Investor Meet Mar’24
Slide 3: Let's talk about
Our view of India Our view of Oral Care Let’s talk about Strategy in Action Financial Performance
Slide 4: India: We continue to win
&India: We continue to win Economy, growing fast 5th largest Real GDP forecasted to grow 6.2%+ until 2025 Govt spending to support the buoyancy 2030: India to be the 3rd largest economy Source: IMF, CGA
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Slide 6: Services sector increasing its share in the GDP
& We continue Services to win sector increasing its share in the GDP % contribution to GDP 51 39 35 31 26 18 1995 2023 1995 2023 1995 2023 Services Manufacturing Agriculture Source: MOSPI
Slide 7: Major shift in socio economic composition
&Major We continue tothe shift in win socio economic composition ‘Elite + India 1’ HHs have doubled over the past decade NCCS A1 1% 4% NCCS A1 ELITE NCCS A2 + A3 10% NCCS A2 + A3 24% NCCS B 16% 25% NCCS B INDIA 1 22% 22% NCCS C NCCS C NCCS D+E 51% 25% NCCS D+E INDIA 2 2013 2021 Source: BCG Report
Slide 8: Government enablers to sustain INDIA 2 economy
& We continue toenablers Government win to sustain INDIA 2 economy 81% 79% Villages connected Villages connected by road by potable water Public Distribution System Employment Support Free Gas Connections Housing Support 810 Mn Beneficiaries 29.5 Mn Beneficiaries 10 Mn Beneficiaries 11 Mn Beneficiaries
Slide 9: Sectoral shift powered India
&INDIA We continue to win by sectoral shift 1 powered 70% $70 Bn $28 Bn Towns with 5G connectivity 2013 2023 Increasing FDI Inflow 13.2% 10Y CAGR NIFTY50 9% 5Y CAGR Salary Increase 76% Increase in Digital Payment Value* 110+ Unicorn startups 71% Smartphone Users Source: Statista 5G - 70% towns, *UPI
Slide 10: Capstone of the pyramid: ELITE
& We capstone The continue to of winthe pyramid. ELITE. Equal to income of France (4% HH in India = ~10Mn) 14% Share of consumption 60% Of subscriptions 62% International Leisure Trips Source: BCG InC42
Slide 11: Shifts in Behavior in Shopping
&Shifts We continue to win Behavior in Shopping ELITE INDIA 1 INDIA 2 What do they ~$5000/month ~$1650/month ~$550/month ~$250/month earn What are they buying Where are they buying Modern Traditional Modern Traditional Traditional eComm eComm Trade Trade Trade Trade Trade 13.1 mn HHs 160 mn HHs Sour
Slide 12: Economic Development is disparate
&Economic We continue to win Development is disparate UP Rural - $350 $3200 Average Rural = 55% $2400 $1900 Average Rural = 71% Per capita Income India $800 Average Rural = 82% TN Rural - $1400 2018-2020 Data | Kantar brand footprint, 2019
Slide 13: Households with phones but it remains dark
&HH Wewith continue to winBUT it remains dark phones ● 77% TV penetration in India ● 53% households have power cut every day ● 97% Households have mobile phones ● 52% households have internet access Source: MOSPI
Slide 14: Highest % of women pilots but lowest female labor force
&Highest We continue % oftowomen win pilots BUT lowest % of female labor force Female Airline Pilots As %age of overall pilots Female labor-force Participation As %age of all employable women 13 60 55 46 7 5.4 5 19 India Canada USA Global India Canada USA Global Source: Blume
Slide 15: India: Mosaic of Diverse Preferences
&India: We continue Mosaicto of winDiverse Preferences Varied Food 9 6+ Choices flavor zones religions 22+ languages 75%+ non veg Flavor Zones 50%+ non veg 25%+ non veg Sample Registration Baseline Survey 2014, Ministry of Home Affairs, KD Flavor study
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Slide 17: FMCG Positive Growth, Muted Stock Performance vs Other Sectors
FMCG Positive Growth StockMuted Performance vs Other Sectors Note: Sector averages include select top listed companies Source: Company Financials
Slide 18: Guarded Positive Sentiments, Stock Performance Amongst Peers
Guarded Positive Sentiments Stock Performance Amongst Peers
Slide 19: Let's talk about
Our view of India Our view of Oral Care Let’s talk about Strategy in Action Financial Performance
Slide 20: Category Volume & Premiumisation: Toothpaste
Category Volume & Premiumisation Toothpaste Indexed to U+R Urban Rural Philippines Per Capita 0.6 0.7 0.5 Consumption 20% Urban Households brush twice a day 55% Rural Households do not brush daily 88% Category below 140 ASP Index Source: Internal Data, ACN Retail Audit
Slide 21: Category Volume & Premiumisation: Toothbrush
Category Volume & Premiumisation Toothbrush Monthly Spends Urban Rural Per Capita ¢ 4.8 ¢ 1.6 78% Category below USD 0.5 Source: Internal Data, ACN Retail Audit
Slide 22: Opportunity to improve India's Oral Health
Opportunity to improve India’s Oral Health 75% 89% Urban population Urban population Believe their teeth are in Actually suffer from some excellent condition oral health issues 9% of India’s population visits a dentist every year Source: Dental Camp Study, Habits & Practices Study
Slide 23: To help people improve their oral health and beauty
To help people improve their oral health and beauty.
Slide 24: India's #1 Oral Care Brand
We’re best placed to do this India’s # 1 Most Penetrated Oral Care 9/10 households Brand Source: Kantar World Panel
Slide 25: India's Most Loved Oral Care Brand
We’re best placed to do this India’s Most Most Recalled Loved 64% top of mind Oral Care Most Considered 87% Brand Source: Internal Data
Slide 26: India's Most Distributed Oral Care Brand
We’re best placed to do this India’s Most Strong Direct Coverage Distributed 1.7mn stores Oral Care Wide Total Reach 6.6mn stores Brand Source: Internal Data, ACN Retail Audit
Slide 27: Wide portfolio catering to all needs
We’re best placed to do this Wide 3X 1.4X portfolio vs. #2 brand vs. #2 brand catering to CP All Needs #2 Player #3 Player #4 Player #5 Player Source: ACN Retail Audit
Slide 28: Superior Tech for Superior Quality
We’re best placed to do this Superior 900+ Scientists Tech for 750+ Quality Specialists Superior 1500+ Health Patents per year Source: Internal Data
Slide 29: Ranked #1 in India's FSI Index
We’re best placed to do this Ranked #1 in India’s FSI Index review Source: Business Standard March 2023
Slide 30: Let's talk about
Our view of India Our view of Oral Care Let’s talk about Strategy in Action Financial Performance
Slide 31: Strategy in Action: Growth Pillars
Strategy in Action: Growth Pillars Lead Toothpaste Premiumize Lead Category Strategic Pillars Category through Science Growth in Build Personal Based Superior Toothbrush & Care a) Volume Innovation Devices b) Grow Core Superior Mix (Products, Communication, Execution) Driving Financial Efficiency Ena
Slide 32: Driving Consumption: Urban - Brush at night
Driving Consumption: Urban- Brush at night
Slide 33: Driving Consumption: Amplifying our efforts
Driving Consumption: Amplifying our efforts Bright Smiles, Bright Futures®, Govt. Partnerships and Public Policy 50+ 25k years schools 171mn 10mn kids reached Additional kids By 2025 Source: Internal Data
Slide 34: Government and UN partnerships
Government and UN partnerships , Rasen Th WATIO,, Nois eta rare fort Dental Council National Health Mission State Government of Andhra Pradesh * of Uttar Pradesh IMPAct, ‘Nutrition Incubated & Anchored by UNICEF State Government of Andhra Pradesh
Slide 35: Accelerating the Core via Superiority
Accelerating the Core via Superiority Superior Product Best-in-class technologies (Arginine, Ultrafreeze) Superior Communication Tested in top 25% of advertising Strong Commercial Investment 1.5X TV spends vs. next player Source: Kantar Link Test, Internal Data
Slide 36: Colgate
Colgate
Slide 37: Accelerate Premiumisation
Accelerate Premiumisation 3. Build 1. Own 2. Create desire Therapeutic Proactive for Whitening credentials Health with with with Total Visible White Periogard
Slide 38: Own Proactive Health
Own Proactive Health Industry leading technology 125+global patents Large global brand World’s #1 antibacterial toothpaste Strong residual awareness Build further with best-in-class communication Source: Internal Data
Slide 39: Create Desire for Whitening
Create Desire for Whitening Pioneers in Whitening Own Proactive Health #2 segment across the world Innovative Technology & Formats To build future-ready portfolio Chair To Sink Offerings Source: Internal Data
Slide 40: Whitening
STARTS WHITENING da Ta “ "fer A a ar gednra S age r c .) i. > ——
Slide 41: Build Therapeutics Credentials with Profession
Build Therapeutics Credentials with Profession 80+ years of partnership Leverage Strong Association Digital-First Connects Dentist First, Virtual Reality Masterclass Leading Position in Pharmacy Through Prescription Focus Source: Internal Data
Slide 42: Lead Toothbrush Category Growth
Lead Toothbrush Category Growth Leadership position in the category Superior portfolio across price tiers Curated Commercial plans By State X Retail Environment Source: ACN Retail Audit
Slide 43: Strategic Diversification: Large opportunity
Strategic Diversification: Large opportunity Build Palmolive in Body Wash Strong brand equity, built over 73 years Wide Global Portfolio to choose from Assess inorganic growth opportunities Drive synergies & efficiencies Source: Kantar World Panel, Internal Data
Slide 44: Digital at the Core: Build Assortment in store
Digital at the Core: Build Assortment in store ML led bespoke recommendation model for building assortment Custom Assortment 1.7MM stores What has the store sold? What can the store sell? Purchase History Zipcode shopper metrics 60%+ 1.3X Monthly Conversions Growth in TDP vs. 2021 Strong repeat rate
Slide 45: Digital at the Core: Brilliant Basics in Modern Trade
Digital at the Core: Brilliant Basics in Modern Trade IR based AI model to drive 5Ps in Modern Trade Primary Shelf Secondary Visibility Promos & Pricing Live Insights 95%+ 96%+ Compliance in Compliance in On Shelf Availability Planograming Source: Internal Data
Slide 46: Digital at the Core: Premiumising our Digital Shelves
Digital at the Core: Premiumising our Digital Shelves Market Share Accretive Fastest growing business Best-in-Class Execution 6P&A e-commerce Excellence Margin Accretive Higher Premium Contribution Source: Internal Data
Slide 47: Digital at the Core: Simplifying Demand Forecasting
Digital at the Core: Simplifying Demand Forecasting Historical Sales Trends (Sellouts, Offtakes) Forecasts Business Decisions (Promotions, Pricing ) Self Learning Source: Internal Data
Slide 48: Environment & Society at our Core
Environment & Society at our Core Reusable, recyclable or Waste Management compostable plastic Water Usage Bright Smiles, Empower women with packaging Bright Futures® Digital+Financial Literacy Maintain TRUE® Zero Oral health education for Waste certification for 100% by 2025 Net Zero water at 100K w
Slide 49: Let's talk about
Our view of India Our view of Oral Care Let’s talk about Strategy in Action Financial Performance
Slide 50: Invest to Grow
Invest to Grow Strong Performance (Apr-Dec’23) Net Sales Domestic (+9.1%); Company $506 MM. (+8.3%) Highest Ever Gross Margins Highest Ever Advertising 69.6% 14.2% Strong Profit Delivery $115 MM. (+29.1%) Source: Internal Data
Slide 51: Positive Stock Performance
Positive Stock Performance Apr-Dec’23 +28% +24% +27% Growth S&P BSE 100 NIFTY 100 NIFTY FMCG Source: NSE, BSE websites
Slide 52: Summary
Summary ● Continue to be excited about India ● Colgate has a high Right to Win ● Attractive Market Opportunity ● Focus on Consistent, Profitable & Sustainable growth
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Colgate-Palmolive (India) — Wellington Investor Meet Mar'24 (March 2024) on 6ix