Colgate-palmolive (india) Limited · NSE:COLPAL
Colgate-palmolive (india) — Investor Presentation (December 2022)
78 slides from Colgate-palmolive (india)'s investor presentation, Dec 13, 2022
Slide 1: Exchange intimation letter: Analyst Conference Call presentation
December 13, 2022 The Secretary BSE Limited P.J. Towers, 25th floor Dalal Street Scrip Code: 500830 Mumbai-400001 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 De
Slide 2: Colgate Palmolive (India) Limited Analyst Conference - December 13, 2022
Colgate Palmolive (India) Limited Analyst Conference - December 13, 2022
Slide 3: Safe Harbour Statement
Safe Harbour Statement This communication, except for the historical data, may contain forward-looking statements, including words, phrases, numbers that set forth anticipated results based on management’s current plans and assumptions. These statements are made on the basis of the Company’s views a
Slide 4: Colgate Leadership Team
Colgate Leadership Team (Executive VP- Manufacturing (Whole time Director & (Wholetime Director-Legal & (Executive VP-Human & Product Supply Chain) (Managing Director & CEO) Chief Finance Officer) Company Secretary) Resources) (VP - Marketing) (Director - ( VP- Customer Service & (VP- Customer Develop
Slide 5: Colgate
Colgate NY
Slide 6: About Me
About Me : soe iS MBA ues aatTea arate Hindustan Unilever Lunited el Colgate NY
Slide 7: What makes Colgate Strong?
What makes Colgate Strong? Colgate’ VY
Slide 8: India's #1 Brand
Category Creators India’s most penetrated brand 88.1% India’s #1 Brand >3X bigger than the next oral care player We reach 9/10 households Source: Kantar Panel Data, Nielsen Data, Annual reports
Slide 9: R&D Strength
R&D Strength Cutting Edge Technology || Superior Scientific Credibility 100+ Research studies 2.7X 10k+ Patents studied Higher Oral Care scientific publications than the next player 1500+ Patents per year Source: Internal Data, Public Domain Information
Slide 10: Execution Prowess: Traditional Trade
Execution Prowess: Traditional Trade 1.7mn direct coverage 95% active every quarter 70% active with Smile Stores Source: Internal Data
Slide 11: Execution Prowess: New Retail
Execution Prowess- New Retail Category Supremacy || Strategic Partnerships ~75% Biz coverage have merchandisers DT +180 bps $SOM over-indexed than TT Ecomm +1040 bps
Slide 12: Winning with Profession
Relentless Winning focusProfession with on naturals Top Prescribed Brand by Dentists Strong Partnerships with Key Bodies “I believe PerioGard to be the best & most effective gum care solution available and recommend it to all my patients” Prof. Dr. Porus Turner M.D.S., MSc. Oral Implantology Source:
Slide 13: Exclusive for dentists
India’s first professional eB2B platform Exclusive for Dentists http://dentistfirst.co.in Exclusive for dentists
Slide 14: Most Trusted & Loved
Most Trusted & Loved One of India’s Most Trusted Brands - for 11 consecutive years Source: ET Brand Equity - Most Trusted brands Survey and CNBC TV18
Slide 15: Unparalleled India Opportunity
Unparalleled India Opportunity
Slide 16: Opportunity: Volume
Opportunity: Volume Per Capita TP Consumption India Split Urban Rural X Per Capita Consumption 1.7x 0.6x India 1.8X Urban ~ 20% Households brush twice a day Philippines Rural ~55% Households do not brush daily 3.1X Brazil Source: Kantar World Panel
Slide 17: Opportunity: Value
Opportunity: Value Potential for Premiumisation MAT Share of Market vs. ASP Index to Category Toothpaste Toilet Soaps Mar’22b 100% 1% 0% Share of Market Indexed Spends/HH by Socio Economic Class 6% 75% 64% SEC A 2x 4.4x 50% 1.4x 1.7x 25% SEC C 1.4x 2.6x 20% 0% Upto 90 91-110 111-200 201-300 300+ SEC
Slide 18: Strategy in Action
Strategy in Action ❏ Growth Pillars ❏ Growth Enablers
Slide 19: Strategy in Action: Growth Pillars
Strategy in Action: Growth Pillars Lead Drive Lead Category Build Toothpaste Science Led Growth in Personal Category Premiumisation Toothbrush Care Growth & Devices
Slide 20: Strategy in action: Growth Pillars
Strategy in action: Growth Pillars Lead Lead Drive category Build Toothpaste Science Led growth in Personal Category Premiumisation Toothbrush Care Growth & Devices
Slide 21: A Strong Journey
A Strong Journey Purchased by 7 out of every 10 HHs in India 2X+ SOM than any other toothpaste Best in industry science for strong teeth Patented Arginine Technology in our most penetrated toothpaste Source: Kantar Panel, Nielsen
Slide 22: Colgate
Colgate NY
Slide 23: Colgate Strong Teeth
Colgate VY Stron Teeth? Strona You
Slide 24: Fresh News in Freshness
Fresh News in Freshness Freshness: Largest category driver Cooling Crystals Tech Bamboo Charcoal Wintergreen Mint Pricing : 115 Index to Base Source: Kantar study
Slide 25: Colgate
Colgate 4
Slide 26: Naturals Plateauing
Naturals Plateauing After a steep rise, segment flattens Continue to build In Ayurveda +900 +40 BPS BPS New, stronger formula to improve oral health, Oct’22 for overall health Source: Nielsen data
Slide 27: Lead with Ingredient with Science
Amplify Ingredient with Science Lead with #1 Natural Ingredient Toothpaste New, Stronger Germ Fighting Formula With Salt & Eugenol Source: Nielsen data
Slide 28: Continued Consumer Connect
Continued Consumer Connect Highlighting regional culture codes Local influencer content for TN
Slide 29: Drive Consumption
Drive Consumption STRONG BELIEF IN DATUN 65% HH in Rural UNAWARE OF THEIR ORAL HEALTH STATUS 55% don’t brush daily BELIEVE TOOTHPASTE IS CONVENIENT, FEELS FRESH Drive everyday toothpaste consumption TOOTHPASTE IS PROGRESSIVE. KIDS MUST USE IT Source: Kantar Panel
Slide 30: Partnerships to improve Oral Health
Partnerships to improve Oral Health Special partnership in Andhra Pradesh Project Chirunavvu 1976 0.45 mn 1986 3.2 mn Education- oral health practices 1996 6.9 mn Dental Health Infrastructure in govt hospitals 2006 49.1 mn 2022 170 mn 170 mn+ school children contacted Target more than 4 mn children
Slide 31: Strategy in action: Growth Pillars
Strategy in action: Growth Pillars Lead Lead Drive category Build Toothpaste Science led growth in Personal Category Premiumisation Toothbrush Care Growth & Devices
Slide 32: Colgate Visible White O2
REVOLUTIONARY Active-Oxygen Technology COLGATE VISIBLE WHITE O2
Slide 33: Slide 33
Slide 34: The Whitening Wave
The Whitening Wave Created this segment || Visible white owns 70% of this +85% business in 2022 360% increase in Google Search on brand Product Launch of the year Wedding Campaign to build Award for VW O2 relevance in beauty occasions Source: Nielsen data
Slide 35: Total: Superior Formula
Total: Superior Formula Powerful Dual-Zinc + Arginine Formula Advanced tech for whole mouth health
Slide 36: Kids - Building a New Segment
Kids - Building a New Segment Tender care for Every age at Every stage Closed User Parent Groups Platforms Offline & Social On Media Platform
Slide 37: Strategy in action: Growth Pillars
Strategy in action: Growth Pillars Lead Lead Drive category Build Toothpaste Science led growth in Personal Category Premiumisation Toothbrush Care Growth & Devices
Slide 38: Toothbrush Opportunity
Toothbrush Opportunity Volume Value Urban Rural Per Capita Consumption 1.3x 0.5x Share of Market Brush Replacement Urban ~ Once every 6 months Rural ~ Once every 15 months ~90% market at <INR 50 price point Source: Kantar World Panel
Slide 39: India's #1 Toothbrush
India’s #1 Toothbrush Relaunch after 10 years- Ultra Flexible Tech for superior cleaning Strong Distribution Impactful Visibility 50% reach uplift Source: Internal Data, YTD’22, Once in 3 months average numbers
Slide 40: The Revolution
The Revolution
Slide 41: Premiumisation with Gentle Benefit
Premiumisation with Gentle ASP Index to Catg. 8x AI (U+R) SOM + Benefit Q3’22 1.8x 5x 2020 x 3.7x 2x Source: Nielsen Data Strictly Confidential
Slide 42: Regimen Innovation: VW O2 Toothbrush
Regimen Innovation: VW O2 Toothbrush The Whitening Combo
Slide 43: Powered Toothbrushes by Colgate
POWERED TOOTHBRUSHES by COLGATE
Slide 44: Proclinical Range
Proclinical Range 500R B150 250R
Slide 45: Kids Powered Range
Kids Powered Range Attractive entry price point Higher conversion with parents +66% YTD growth Source: Internal Data
Slide 46: Tailored for your smile
TAILORED : FOR YOUR coor SMILE
Slide 47: Slide 47
Slide 48: Slide 48
Slide 49: Our CPC D2C Success Journey
OurCPC D2CSuccess Journey www.cpbrush.co.in Agility in Action- Conception to Go Live in 90 days Partnerships → Experiment → Build Reach 12x biz growth in ‘22 over ‘21 Source: Internal Data
Slide 50: Strategy in action: Growth Pillars
Strategy in action: Growth Pillars Lead Lead Drive category Build Toothpaste Science led growth in Personal Category Premiumisation Toothbrush Care Growth & Devices
Slide 51: Olive
OLIVE m=
Slide 52: Build Personal Care
Build Personal Care Palmolive wins Most loved Brands 2022 Award by Grazia 3rd largest player Early Success 20 SOM in Flipkart SuperMart 5.7 SOM in Hyper BODY: INVEST & GROW FACE: PILOT & SCALE Source: Customer Data
Slide 53: ae * Savi
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Slide 54: Strategy in action
Strategy in action Lead Lead Category Strategic Drive Toothpaste Growth in Build Personal Pillars Science led Category Toothbrush & Care Premiumisation Growth Devices Superior Science backed Products Driving Financial Efficiency Enablers Digital at the Core Talent - Nurture & Grow Environment, Social,
Slide 55: Superior Products
Superior Products Patented Arginine Tech for strong teeth Salt & Eugenol Tech to fight germs UltraFlexible tech Antibacterial 7X dense bristles Deep cleaning Bristles Superior foam Freezestorm Tech for intense cooling
Slide 56: Driving Financial Efficiency
Driving Financial Efficiency
Slide 57: Strong Financial Metrics
Strong Financial Metrics Continue to Invest in Higher Gross Margins Brand Building 67.1% 12.7% Controlled Overhead Strong Profit To Sales Expenses 21.3%
Slide 58: Financial Strategy
Financial Strategy Revenue Growth Funding Management the Growth ❖ Driving Premiumisation ❖ Cost Optimization across all lines of P&L ❖ Leveraging Analytics for Pricing strategy ❖ Streamline Supply Chain operations ❖ Optimizing Promotion Depth ❖ Drive efficiency and agility to Deliver Superior products
Slide 59: Enhancing Shareholder Value
Enhancing Shareholder Value Shareholder Value CAGR 24%** Strong Cash Position Working Capital (-29 days)# DPS* 3.2 X EPS* 2.4 X *EPS & DPS comparison for 10 years **CAGR index since IPO # Working Capital (post dividend)
Slide 60: Digital at the Core
Digital at the Core Colgate’ VY
Slide 61: Dedicated Analytics Center
Dedicated Analytics Center A) Future Ready DnA Ecosystem | Data → Insights → Knowledge Connected Data Predictive Insights Data driven execution B) Bringing AI into the core of Business Actions across value chains Smile Stores Analytics → RGM Smart Insights AI led assortment Prescriptive Insights Adv
Slide 62: Building Digital & Analytics into In-Store Excellence
Digitisation In-Store Building Digital & Analytics into In-Store Excellence AI Based Image Recognition tool Strictly Confidential
Slide 63: Digitisation in-store: Own IP
Digitisation in-store: Own IP* Scan the shelves to capture images Live insights in 30sec to correct gaps Out of Stock Share of Shelf Planogram Asset Health 7 lac+ images analysed 600+ products trained 90%+ accuracy 40+ assets trained Source: Internal Data *image engine IP
Slide 64: Slide 64
Slide 65: Digitally driving Colgate Equity
Digitally driving Colgate Equity Mentions of “Colgate Smile” - Earned media reaching 400MM+ Indians (YTD’22) Source: Internal Data
Slide 66: CP India Content Lab: In-Action
CP India Content Lab: In-Action 3x Digital content volume 4x Faster turnaround-time 87% Production Cost Savings Source: Internal Data
Slide 67: Future Ready Organization & Talent
Future Ready Organization & Talent
Slide 68: Making the org future fit
Making the org future fit BUILD BUY BORROW CULTURE 67
Slide 69: Build
BUILD OUR PHILOSOPHY Developing the leadership edge by mastering the ‘Core’ and driving the ‘ Transformative’ TRANSFORMATIVE CORE 63 90% CPIL Talent in LT with Global Global Positions experience
Slide 70: Buy & Borrow
BUY & BORROW BUY Strategic hires from time to time with an intent to build niche capabilities New skills to ramp-up Digital Marketing Digital Commerce Data & Analytics Org Capability BORROW Leverage Partnerships / Gig Talent to ‘Borrow’ Talent/Expertise
Slide 71: Culture
CULTURE Focused Efforts DE&I Well being around DE& Performance Oriented, Agile culture
Slide 72: Environment, Social, Governance (ESG) Reporting
Environment, Social, Governance (ESG) Reporting
Slide 73: Sustainability Management
Taking ESG Efforts Ahead 2025 Sustainability and Social Impact Strategy Sustainability Management Driving Social Impact Helping MILlions of Homes Preserving our Environment Strong Governance Mechanism
Slide 74: Social Impact
Scaling impact - Water & Women-led Programs Driving Social Impact
Slide 75: Helping MILlions of Homes
Ensuring a Future to Smile about Helping MILlions of Homes Metal Handle Replaceable heads Recycled Plastic Patent: World’s first recyclable tube
Slide 76: Environment
Accelerating Action on Climate Change Preserving our Environment Renewable Energy 85% of the energy received at Baddi plant is from hydroelectric energy Sri City and Sanand plants use power generated through renewable sources including wind and solar power. Certification Environment Maintain TRUE® Ze
Slide 77: Summarising the Strategy
Summarising the Strategy ❏ Drive category volume growth ❏ Elevate science to drive expertise ❏ Build viable business in personal care ❏ Simplify, Digitize, Energize
Slide 78: Q&A
Q&A
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