Colgate-palmolive (india) Limited · NSE:COLPAL
Colgate-palmolive (india) — Investor Presentation (May 2023)
42 slides from Colgate-palmolive (india)'s investor presentation, May 12, 2023
Slide 1: Exchange filing cover letter for analyst call presentation
May 12, 2023 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 Dear Si
Slide 2: Colgate Palmolive (India) Limited Analyst Meet - May 12, 2023
Colgate Palmolive (India) Limited Analyst Meet - May 12, 2023
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 Managing Director & CEO Whole time Director & Wholetime Director-Legal & Executive VP-Human Executive VP- End to End Chief Finance Officer Company Secretary Resources Supply Chain Gunjit Jain VP - Marketing Director - VP- Customer Development VP- India Global New Geographies Te
Slide 5: Grow. Strengthen. Simplify.
GROW. STRENGTHEN. SIMPLIFY.
Slide 6: Drive Category Volume Growth: Toothpaste Opportunity Immense
Grow, Strengthen, Simplify DRIVE CATEGORY VOLUME GROWTH Toothpaste Opportunity Immense Indexed to Philippines U+R Urban Rural Per Capita 0.6 0.7 0.5 Consumption 20% Urban Households brush twice a day 55% Rural Households do not brush daily 4
Slide 7: Drive Category Volume Growth: Per Capita Toothbrush Opportunity
Grow, Strengthen, Simplify DRIVE CATEGORY VOLUME GROWTH Per Capita Toothbrush Opportunity Annual Urban Rural Per Capita Consumption 1.3x 0.5x Brush Replacement Urban ~ Once every 6 months Rural ~ Once every 15 months 5
Slide 8: Drive Category Premiumization
Grow, Strengthen, Simplify DRIVE CATEGORY PREMIUMIZATION Indexed Spends/HH SEC DE SEC C SEC A by SEC Toothpaste X 1.4X 1.4X 2X Toilet Soaps 1.7X 2.6X 1.7X 4.4X ASP Index to Catg 6
Slide 9: Drive Category Premiumization
Grow, Strengthen, Simplify DRIVE CATEGORY PREMIUMIZATION Growth % 15% -3% 16% 22% 0% 63% 7 ~85% market at <INR 40 price point
Slide 10: Accelerate the Core - Strong Teeth
Grow, Strengthen, Simplify ACCELERATE THE CORE - STRONG TEETH Unique Arginine Technology in our most penetrated toothpaste 2X Remineralization of Teeth (vs Regular Fluoride Toothpaste) 8
Slide 11: Accelerate the Core - Strong Teeth
Grow, Strengthen, Simplify ACCELERATE THE CORE - STRONG TEETH ay ‘23 M A Toothpaste that doesn’t just clean but nourishes Building Superiority Calcium Boost + Arginine that nourishes to make Teeth 2X Stronger 9
Slide 12: Accelerate the Core - Strong Teeth
Grow, Strengthen, Simplify ACCELERATE THE CORE - STRONG TEETH Amplified Commercial Investment ay ‘23 M 35Mn Samples of new formula Rural Growth Focus For Rural 10
Slide 13: Accelerate the Core - Max Fresh
Grow, Strengthen, Simplify ACCELERATE THE CORE - MAX FRESH Superior freshness technology v/s eyeball competition +580 BPS increase in HH Penetration 5X Faster Growth than Market Amplified commercial investment behind winning mix 11
Slide 14: Accelerate the Core - Naturals
Grow, Strengthen, Simplify ACCELERATE THE CORE - NATURALS After a steep rise, segment flattens Share of Market - Naturals Segment +900 -30 BPS BPS 2022 Q1’23 12
Slide 15: Accelerate the Core - Active Salt
Grow, Strengthen, Simplify ACCELERATE THE CORE - ACTIVE SALT Active Salt + Clove Technology Science backed product for prevention of dental problems Best-in-class Communication Tested in top 25% of advertising 700 BPS Reach Increase in Priority Geos 13
Slide 16: Premiumize the Category - Whitening
Grow, Strengthen, Simplify PREMIUMIZE THE CATEGORY - WHITENING Nascent Category, Scope to Grow Penetration of Whitening - 1.5% AI (U+R) High Consumer Interest, Bias for Action Whitening Portfolio 30X Faster Growth than Market ASP Index - 200 14
Slide 17: Premiumize the Category - Whitening
Grow, Strengthen, Simplify PREMIUMIZE THE CATEGORY - WHITENING DRIVE BEAUTY RELEVANCE INNOVATE WITH DEVICES CREATE THE ULTIMATE BEAUTY ASSOCIATION WITH INDIAN BRIDES & GROOMS 15
Slide 18: Premiumize the Category - Therapeutics
Grow, Strengthen, Simplify PREMIUMIZE THE CATEGORY - THERAPEUTICS Gums Sensitivity Whitening Bad Breath 16
Slide 19: Premiumize the Category - Therapeutics
Grow, Strengthen, Simplify PREMIUMIZE THE CATEGORY - THERAPEUTICS Advocacy with Experts Indian Society of Periodontology Partner with Dental Profession Dentists, Dental Schools Leading Position in Pharmacy Through a prescription focus Periogard Regimen ASP Index - 450 17
Slide 20: Premiumize the Category - Therapeutics
Grow, Strengthen, Simplify PREMIUMIZE THE CATEGORY - THERAPEUTICS “I have seen, tested and liked the concept “I like the concept of of Zinc Citrate as an introducing Zinc antibacterial and Citrate, it has a immunobooster in the wonderful taste and prevention of gum clinical results” problems” Dr. Po
Slide 21: Premiumize the Category - Colgate Gentle
Grow, Strengthen, Simplify PREMIUMIZE THE CATEGORY - COLGATE GENTLE Superior Bristle Technology Across Benefit Segments Growing 4X faster than category 1.8X Market Share vs 2020 Gentle Range ASP Index - 160 19
Slide 22: Premiumize the Category - New Commerce
Grow, Strengthen, Simplify PREMIUMIZE THE CATEGORY - NEW COMMERCE New retail SOB 2018-22 (18% CAGR 18-22) 5X vs Traditional Trade 25% (Premium Mix) X 1.7X 2018 460 BPS increase 2022 Premium mix Vs 2021 20
Slide 23: Leverage Portfolio Advantage
Grow, Strengthen, Simplify LEVERAGE PORTFOLIO ADVANTAGE Portfolio Advantage in 85% Market Leverage Portfolio to accelerate growth 23/28 states where CP has 2 out of 4 top equities 21
Slide 24: Diversify Beyond Oral Care - Palmolive
Grow, Strengthen, Simplify DIVERSIFY BEYOND ORAL CARE - PALMOLIVE Nascent Category, Scope to Grow Penetration of Body Wash - 2% AI (U+R) Strong brand equity, built over 73 years 2 out of 3 brand aware Assortment, Brand 4 Focus Distribution Mental Superiority Innovation Areas Availability 22
Slide 25: Strengthen Professional Partnership
Grow, Strengthen, Simplify STRENGTHEN PROFESSIONAL PARTNERSHIP Amplified Reach #1 reach in Dentists X Unique B2B Channel Enables access to Advanced CP portfolio Leading Conversation Guest Lectures X IDA Key Conferences 23
Slide 26: Sustainable Profitable Growth - Mar'23 Quarter
Grow, Strengthen, Simplify SUSTAINABLE PROFITABLE GROWTH Mar’23 Quarter Continue to Invest in Higher Gross Margins Brand Building 66.6% 10.7% Controlled Overhead Strong Profit To Sales Expenses 23.6% Net Sales 24 1342 Cr
Slide 27: Sustainable Profitable Growth - FY'23 Performance
Grow, Strengthen, Simplify SUSTAINABLE PROFITABLE GROWTH FY’23 Performance Continue to Invest in High Gross Margins Brand Building 65.4% 12.2% Controlled Overhead Strong Profit To Sales Expenses 20.2% Net Sales 25 5188 Cr
Slide 28: Sustainable Profitable Growth
Grow, Strengthen, Simplify SUSTAINABLE PROFITABLE GROWTH 26
Slide 29: Sustainable Profitable Growth: EBITDA +1100 BPS in 10 Years
Grow, Strengthen, Simplify SUSTAINABLE PROFITABLE GROWTH Revenue Growth Funding Management the Growth Driving Premiumization Cost Optimization Analytics for Pricing Strategy Streamline SC operation Optimizing Promo Depth Efficiency to deliver superior products 2014 18.7% 2023 29.8% EBITDA +1100 BPS i
Slide 30: Dividend Per Share
Grow, Strengthen, Simplify SUSTAINABLE PROFITABLE GROWTH Dividend Per Share 2018-19 2019-20 2020-21 2021-22 2022-23 Rs.23 Rs.28 Rs.38 Rs.40 Rs.39 28
Slide 31: Ranked Company in India on the FSI Index
Grow, Strengthen, Simplify SUSTAINABLE PROFITABLE GROWTH Ranked Company in India on the FSI 29 Index at BS1000 Annual Review
Slide 32: Environment, Social, Governance Efforts
Grow, Strengthen, Simplify ENVIRONMENT, SOCIAL, GOVERNANCE EFFORTS Reusable, recyclable or Waste Management compostable plastic Water Usage Sustainable Sourcing packaging Maintain TRUE® Zero Allocate 80% of Material 100% by 2025 Net Zero water at Spends inline with Waste certification for (Usage, Col
Slide 33: Environment, Social, Governance Efforts
Grow, Strengthen, Simplify ENVIRONMENT, SOCIAL, GOVERNANCE EFFORTS Increase Female Empower rural women ‘Smiles for Life’ Bright Smiles, Implement Water Access Representation in with Digital+Financial Care for Children Bright Futures Programs management and board Literacy suffering from Cleft Engage
Slide 34: Environment, Social, Governance Efforts
Grow, Strengthen, Simplify ENVIRONMENT, SOCIAL, GOVERNANCE EFFORTS Annual & ESG Report Bright Smiles Bright Futures 32
Slide 35: Organizational and People Capability
Grow, Strengthen, Simplify ORGANIZATIONAL AND PEOPLE CAPABILITY Future Fit Organization Business Strategy 33
Slide 36: Organizational and People Capability
Grow, Strengthen, Simplify ORGANIZATIONAL AND PEOPLE CAPABILITY Structure Culture Processes People Results Oriented, End-to-End Towards a Empowered and Integrated Systems Attract, Retain and Digital, Agile and Experimental and Seamless Engage the Best ‘Right-Layered’ Org. Culture that Processes that
Slide 37: Organizational and People Capability
Grow, Strengthen, Simplify ORGANIZATIONAL AND PEOPLE CAPABILITY Recognized for employee Recognized as ET Best Recognized amongst top Excellence! workplaces for women - 4 FMCGs to work for! 2nd time in a row! 35
Slide 38: Simplify Sales Fundamentals
Grow, Strengthen, Simplify SIMPLIFY SALES FUNDAMENTALS ML Led bespoke assortment model for 1.6 Mn stores IR based AI model to drive MT 5Ps Drive customized assortment Drive premium availability and superior shopability Assortment Score On Shelf Availability Total Distribution Points 1.3X (+30%) 1.17
Slide 39: Network Simplification
Grow, Strengthen, Simplify NETWORK SIMPLIFICATION Frugal Localization Innovation Simplification Warehouse Green Energy Consolidation 37
Slide 40: Data and Analytics
Grow, Strengthen, Simplify DATA AND ANALYTICS 1 Single Source of Truth Simplified and Efficient 2 Insights 24/7 E.g. Project Race - Daily Sales Efficiency Predict The Future 3 E.g. AI led Demand Forecasting and Planning 38
Slide 41: Strategy in Action: Growth Pillars
Strategy in Action: Growth Pillars Lead Toothpaste Premiumize Lead Category Strategic Category through Science Growth in Build Personal Pillars Based Superior Toothbrush & Care a) Volume Innovation Devices b) Grow Core Superior Science backed Products Driving Financial Efficiency Enablers Digital at t
Slide 42: Q&A
Q&A
Colgate-Palmolive (India) — Investor Presentation (May 2023) on 6ix