CL Colgate Palmolive Corp Sept 2013 Investor Slide Deck Powerpoint PPT PDF

7/29/2019 CL Colgate Palmolive Corp Sept 2013 Investor Slide Deck Powerpoint PPT PDF

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Barclays Capital Back -to-SchoolConsumer Conference

September 3, 2013


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2Q 2013

Not ice for Investor Presentat ion

Our presentat ion and the related webcast contains n on -GAAP f inancial measures, wh ich

di f fer from o ur reported resul ts prepared in accordanc e U.S. general ly accepted accou nt ingpr incip les (GAAP). These non-GAAP f inancial measures of op erat ing resul ts for the threeand six m onth s ended Ju ne 30, 2013 exclude the impact of the fol low ing i tems : chargesresul t ing from the imp lementat ion o f the 2012 Restructur ing Program, the one-t ime chargeresul t ing from the Venezuela devaluat ion, a charge associated with a Europ ean c ompet i t ionlaw matter , cos ts related to the sale of land in Mexico and co sts asso ciated w ith var iousbus iness real ignm ent and other cost-saving ini t iat ives. A com plete, quant i tat ivereconci l iat ion between our reported resul ts and these non -GAAP f inancial measures is

available in the For Investors section of our web site at http://www.colgatepalmolive.com.The Company also reports organic sales growth , wh ich exclud es the imp act of foreignexchange, acquisitions and divestments. See the For Investors section of our web site atht tp: / /ww w.colgatepalmol ive.com for a com par ison of organic sales growth to sales growthin accordance with GAAP.

The Company d ef ines free cash f low before div idends as Net cash provid ed by op erat ionsless Capi ta l expend i tures. Free cash f low before div idends is not a measure of cashavai lable for discret ionary expendi tures s ince the Company h as certain non -discret ionaryobl igat ions s uch as debt service that are not dedu cted from the measure. Free cash f lowbefore div idends is n ot a GAAP measurement and may not be com parable to sim i larly t i t ledmeasures reported by other companies. See the For Investors section of our web site atht tp: / /ww w.colgatepalmol ive.com for a comp ar ison of free cash f low before div idends to Netcash prov ided by op erat ions as reported in accord ance with GAAP.


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2Q 2013

Not ice for Investor Presentat ion

Our presentat ion and the related webcast m ay also c ontain forw ard- look ing statements.Such s tatements may relate, for example, to sales or uni t v olum e grow th, organic salesgrow th, prof i t or prof i t margin grow th, earnings g row th, f inancia l goals, the impact ofcurrency d evaluat ions, exch ange controls, pr ice controls and labor unrest , inclu ding inVenezuela, cos t-reduct ion plans in cludin g the 2012 Restructu r ing Program, tax rates, newprod uct int rodu ct ions o r comm ercial investm ent levels. These statements are made on thebas is of our v iews and assumpt ions as of th is t ime and we und ertake no o bl igat ion toupd ate these statements. We caut ion investors that any suc h forward- looking s tatementsare not guarantees o f future perform ance and that actual events o r resul ts m ay di f fer

materially from those statements. Investors should consult the Companys filings with theSecur i t ies and Exchang e Commis sion ( including th e inform at ion set for th und er the capt ionRisk Factors in the Companys Annual Report on Form 10-K fo r the year ended December31, 2012) for inform at ion about cer ta in factors th at could caus e such d i f ferences. Copies ofthese filings may be obtained upon request from the Companys Investor RelationsDepartment or on the Companys web site at http://www.colgatepalmolive.com .

References to market share in this presentat ion are based on a comb inat ion of co nsump t ionand market share data provided b y third -par ty vend ors, pr imar i ly Nielsen, and internalest im ates. All market share references represent th e percentage of the dollar value of salesof our p rodu cts, relative to all produ ct sales in the category in the cou ntr ies in wh ich theCompany com petes and pu rchases data.


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Today

Streng then ing ourfundamentals


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Today

Streng then ing ourfundamentals


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Long h is toryo f strong resu lts


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Top l ine Grow th

2002-06CAGR 2007 2008 2009 2010 2011 2012

Q12013

Q22013

Volume(excludingdivestitures)

+5.6% +7.0% +4.0% +0.5% +3.0% +4.0% +3.5% +4.5% +4.5%

OrganicGrowth +5.3% +8.0% +9.5% +6.5% +3.0% +4.0% +6.0% +6.0% +5.5%


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6.9 7.07.4

8.2 8.58.8 8.7 8.8 9.0 9.1 9.3

9.910.6

11.412.2

13.8

15.3 15.3 15.6

16.717.1

'92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12

Net Sales($ B il l ion s)

Compound Grow th +4.6%


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37.9%

44.2%44.6%

46.1%46.8%

47.4%47.0%

47.7%49.3%

50.6%

52.1%52.7%

53.4%

54.6%55.0% 55.2% 55.3%

56.4%57.3%

56.7%

58.8%59.1%

57.6%58.3%58.6%

35%

60%

'84 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13Q2

Gross Margin

/ /

2004-2008, 2010-2013 exclude restr uctur ing ch arges and/or o ther item s


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$626

$780$910

$1,011$1,067$1,185

$1,315$1,451

$1,597

$1,773$1,875

$2,054

$2,211$2,239$2,339

$2,567

$2,959

$3,265

$3,615

$3,796 $3,858

$4,024

'91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12


Operat ing Pro f i t($MM)

2004-2008, 2010-2012 exclude restruc turing charges and /or other items


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0%

5%

10%

15%

20%

25%

30%

35%

40%

'96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13

Q1

'13

Q2

After-Tax Retu rn On Cap ital

Colgate

Peer Group

S&P 500

31.4%

17.7%

7.7%

16.0%

8.4%

15.8%


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Operat ing Cash Flow($MM)

$1,768 $1,788 $1,836$1,863

$2,253 $2,302

$3,277 $3,211

$2,896

$3,196

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012



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Prior i ty Uses o f Cash

Dividends


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$0.22 $0.24$0.27 $0.28

$0.30 $0.32$0.34 $0.36

$0.45$0.48

$0.56

$0.63

$0.70

$0.78

$0.86

$1.02

$1.14

$1.22

$0.00

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

$1.40

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Dividends PaidPer Common Share

Inc reased fo r

50 consecu t ive years


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Prior i ty Uses o f Cash

Dividends

Share Repurchases

Flexibility for Acquisitions


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Shareho lder value

is increasing


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Peer Group ColgateS&P

+385%

+656%

+1018%

To tal Retu rn20 Years

12/31/9212/31/12


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+93%

+177%

+277%



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+99%

+126%

+149%




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+8.6%

+17.1%

+51.8%



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To tal Retu rn2012

+16.0%

+12.7%

+15.9%



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To tal Retu rnYTD8/30/13

+16.1%

+13.0% +12.4%



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Market shares are g row ing


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0

5

10

15

20

25

30

35

40

45

50

'94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13YTD

Colgate

Comp. 3

Comp. 1

45.1

14.0

16.2

31.0

17.0

9.5

Worldw ide Too thpaste Shares

Comp. 212.8

8.2


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Worldw ide Manual Too thb rush Shares

15

20

25

30

35

'94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13YTD

Colgate33.3

21.5

26.2

18.4Comp.


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0

10

20

30

40

50

'03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13YTD

Worldw ide Mou thwash Shares(ex. U.S.)

Comp. 1

21.6

37.4

25.7

16.9

19.2

8.2

Colgate

Comp. 2


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Resu l ts dr iven byfocused strategy


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Strategic In i t iat ives

Engage to Build Our Brands

Innovation for Growth

Effectiveness and Efficiency

Leading to Win


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And th ree co re values


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Colgates Values

Caring

Global Teamwork

Continuous Improvement


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Colgates Values

Caring

Global Teamwork

Continuous Improvement


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Strengthening

ou r fundamentals


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Streng thening Our Fundamen tals

Enhancing innovation for growth

Improving execution on the ground

Increasing our knowledge of consumers

Sharpening our analytics

Capitalizing on new digital opportunities

Streamlining our cost structure to furtherinvest in growth


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5.4 b i l l ion peop lest i l l su ffer from too th decay


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In t roduc ing

Colgate Maximum Cavi ty Protect ion plus

Sugar Acid Neutral izer


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Helps Provide Super ior Cavi ty

Protect ion to Fluo r ide Alone

Fluoride

Lowers pH at which damage occurs

Less damage (lessde-mineralization)

More repair (more re-mineralization)

Sugar Acid Neutralizer Technology

Neutralizes sugar acids in plaque

Increases plaque pH

Less damage (less de-mineralization)

More repair (more re-mineralization)

Together, Fluo rid e + Sugar Acid Neutralizer Technology

Lowers pH at which damage occurs

Neutralizes sugar acids in plaque to increase plaque pH

Significantly less damage (less de-mineralization) than fluoride alone

Significantly more repair (more re-mineralization) than fluoride alone


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Consumer Benefi t

Directly neutralizes sugar acids in plaquebefore they can harm teeth

Twice as effective at arresting and reversingearly decay as fluoride alone

Significantly fewer cavities than fluoride alone


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Launch in Turk iye


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Colgate Sensit ive SmartFoamw ith Whiten ing

Foam ing technology gets totough -to-reach spaces


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Colgate Lum inous Wh ite Enamel Shinein B razi l

Contains whi teningaccelerato rs that startwork ing immediately

for one shade wh iter teeth

in one week


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Colgate Optic White Dual Act ion

Whitens more than three shades

For whiter and sh inier teeth


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Colgate Total Pro -In terden talin Europe

Cont inuously f ights p laque even

between teeth, for a health ier mou th


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Colgate Total Advanced Pro-Shield

Mouthwash

12-hour ant ibacter ial p rotect ion

even after eat ing and drin king


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Colgate Plax 2 in 1 in B razi l

Clean mou th and fresh breath:you can see i t work ing


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Colgate Plax A ltai Herbs

Long -last ing fresh b reath

w i th extracts inspi red from

A ltai Region


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Colgate Slim Soft Too thb rush

Each br ist le tapers to an

ultra-th in t ip which reaches

deep between teeth and

along the gum l ine


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Colgate Slim Soft Charcoal Too thb rush

in Asia

Deep gentle clean

w ith charcoal br is t les


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New Hills Ideal Balance

Natural ing redients perfect ly balanced


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Natu ral ing redients ,

h igh qual i ty pro tein f i rst ing redient ,

w inning taste

New Hills Science DietIts the Recipe for a Better Life


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Weight Loss in the Real World

Hills Prescription Diet Metabolic


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Protex Men Power inB razi l / Thailand / Sou th A fr ica

10X more pro tect ion against

odor-causing bacter ia than ord inary bar soap


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Palmo live Gou rmet SPA in Eurasia

Tempt ing aromas, wonderfu l ly so f t textures


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Speed Stick Neu tro Power

in Latin America

Protection that doesnt interfere

w ith you r fragrance


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Lady Speed Stick Pro 5 in 1

in Latin America

Five benef its in one


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Sanex Deodo ran ts

B io Response Relaunch in Europe

Figh ts odo r-causing bacter ia,

respects skins natural bacteria flora


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Soup l ine Perfec t Gl ide

Eas ier, fresher...

Final ly some pleasu re whi le iron ing


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A jax L iqu id Cleaners

Puri fies your home

Formula w i th act ives r ich in oxygen


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Distr ibu t ion to Rural StoresIndia

Directly reaching Mom & Popstores w i th smal l vans


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Expand ing Dist ribu t ion

Changing the way we go to market in rura lInd ia to explo i t new oppo rtuni t ies

Directly reaching Mom & Pop stores

through a Van Distribution Model

Will double our coverage in rural areas inthe next three years

New store coverage

Increased assortment

Improved visibility


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Ind ia Too thpas te SharesRural

52.956.8

23.4 22.6

14.513.2

0.0

10.0

20.0

30.0

40.0

50.0

60.0

'11 '12 '13YTD

Colgate

Comp. 1

Comp. 2


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Ind ia Too thb rush SharesRural

34.9

23.4 24.4

11.4 11.6

9.0

0.0

10.0

20.0

30.0

40.0

'11 '12 '13YTD

Colgate

Comp. 2

Comp. 3

Comp. 1

39.0

9.0


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In -Store Engagement Driving

Success in Aus tral ia

Palmol ive Foam ing Hand Wash

E i Sh J


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Engage Motiv ateOrientDiscover

TV Advert is ing

Digit al Media

Engaging Shopper Jou rney

Prepacked Displays

In-store

Ambassadors

Signage on Shelf

Off-Location

Disp lays


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34.1 34.6 32.9 33.2

1.6 5.5 5.8

0

5

10

15

20

25

30

35

40

26 weeks to1/29/12

26 weeks to7/29/12

26 weeks to1/27/13

26 weeks to7/28/13

Palmolive (excl Foam) Palmolive Foam Pumps Palmolive Foam Refills

Inc remen tal Share GainPalmolive Foam launch extends market leadersh ip

towards 40% share

Source: Aztec Nat ional Scan 26 Weeks to 7/28/13

34.136.2

38.5 39.7

St th i O F d t l


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Protex in B razi l

Target ing New Consumers


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Expand ing to new

consumer groups whi le keep ingco re consumer base heal thy

I t i f G th


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Innovat ion for Grow th

NewConsumer

CoreConsumer

C C M th


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Core Consumer: Mothers

Act ively seeks to keep her fam ily

healthy and p rotected

C B i L h


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Core Business : Launches

Skin-fr iend ly ant ibacter ial p ro tect ion

Erva Doce Vitamin E Brand Relaunch

I t i f G th
http://localhost/var/www/apps/conversion/tmp/scratch_6/Protex%20TVCs%20&%20Materials/02_Recent%20&%20Current%20Projects/02_Two%20Views%20Protex%20LATAM%20Oct%202012.mov


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Innovat ion for Grow th

NewConsumer

CoreConsumer

N T t C T


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New Target Consumer: Teens

Helps elim inate bacteria.

Removes d ir t and oi l that can cause

pimples.

Appeal ing to Teens


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Appeal ing to Teens,

w i th in Brand Personali ty

For Mom For Teen

View target in relat ion to m om ,

rather than teen alone

N T t C M


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New Target Consumer: Men

10X more pro tect ion against

odor-causing bacter ia than ord inary bar soap

Connect ing w i th Men


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Connect ing w i th Men,

wh i le Maintaining Fam ily Values

Shi f t emphasis f rom men to dads

B il P t A hi L d h i


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5.4

14.0

26.4

13.2

0

5

10

15

20

25

30

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013YTD

ProtexComp. 1

Source: Worldview

BrazilProtex Achieves Leadersh ipBody Cleansing

Worldw ide Body Cleans ing Shares


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Worldw ide Body Cleans ing Shares

7.9

14.2

12.6

11.3

14.4

8.9

7.5 6.8

5

6

7

8

9

10

11

12

13

14

15

2004 2005 2006 2007 2008 2009 2010 2011 2012

Protex

Palmol ive

Comp. 1

Comp. 2

Source: Worldview



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Bus iness Analy t ics


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Bus iness Analy t ics

Becoming a global strategic and tacticalcore competency

Aligned with key business priorities to drivetopline growth and win on the ground

Enables real-time decision making

(simpler, smarter and faster)

Drives competitive advantage

Analyt ics Fundamen tals


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Analyt ics Fundamen tals

Market data harmonization,automation and reporting

Brand health assessment

New product tracking

Advanced Analy t ics


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Advanced Analy t ics

Marketing mix modeling

Pricing

Shelf assortment

Point of sale (customer data)


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Market ing Mix Model ingin the U.S.

Market ing Mix Model ing


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1. Analyzes 2-3 years of store-level sales data

2. Evaluates drivers of a brands volume

Vo lume Drivers


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Vo lume Drivers

Advert is ing

Displays

Features

Pr ic ing Dist r ibut ion



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1. Analyzes 2-3 years of store-level sales data

2. Evaluates drivers of a brands volume

3. Determines the volume contribution of each driver

4. Calculates ROI for every media and in-store driver

Market ing Mix Analyt ics


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2011

2012

2013

One Category

Four Categories

One Brand

Market ing Mix Analyt ics

U.S. Expans ion

U S Accoun t Speci f ic


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U.S. Accoun t-Speci f ic

Adding Colgate Too thbru sh Drives Franch ise Grow th

Toothpasteonly

Toothpaste+ Toothbrush

Option Best Option +120%

VolumeLift

U S Accoun t Speci f ic


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U.S. Accoun t-Speci f ic

PurchaseRequirement:

1 Colgate

PurchaseRequirement:

2 Colgate

Option Best Option

+80-100%Volume

Lift

Partner ing w ith Customers to Drive Catego ry and

Colgate Grow th



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Colgate 360Too thpaste

Chinas Healthiest Mouth



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China s Healthiest Mouth Using Digi tal to Engage in New

and Entertaining Ways

Popularity of reality TV competitions

Power of celebrity endorsement

All media touchpoints to drive to digitalcontent and build excitement

Campaign used:



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Celebri ty

Appearances

Social Media In-store Mobi le

Weibo Hub

Digital Partners

China s Healthiest Mouth



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China s Healthiest Mouth Results

15 webisodes, 1billion media impressions,100MM social media impressions, 1.3MM votes,19MM video views

Mobile firsts for C-P China:

- Leveraged Chinese pop culture trends andthe reality TV format

-Maximized celebrity equity in all messagingand touchpoints

- Created a mobile platform with 40% reach toChinese mobile users

Too thpas te Market Shares


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0

5

10

15

20

25

30

35

40

'95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13YTD

34.3

17.7

0.0

12.2

21.4

8.7

Too thpas te Market SharesChina

Colgate

Comp. 1

Comp. 2



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Global Grow th and

Eff ic iency Prog ram

Global Grow th and


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Eff ic iency Prog ram

Four-year program (through 2016) to enhancecapabilities through:

Expansion of commercial hubs

Extending shared business services andstreamlining global functions

Optimizing Global Supply Chain and Facilities

Target savings in the range of $275MM$325MMafter-tax annually by the fourth year of the program,with rate of return >30% and payback averaging34 years

Program Components


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Program Components

Become smarter and faster at a reducedst ruc tural cost w hi le susta in ing grow th

Expand commercial hubs

Extend shared business services andstreamline global functions

Optimize Global Supply Chain and Facilities

Expans ion of Commerc ial Hubs


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Expans ion of Commerc ial HubsBenefi ts

Smarter and faster decision making

Greater support for the business throughstrengthened capabilities everywhere

Improved cost structure

Expans ion o f Commerc ial Hubs


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Expans ion o f Commerc ial HubsAct ion Plan

Reduce number of single-country subsidiariesby clustering into more efficient regional units

Strengthen resources available foron-the-ground teams to increase sales andmarket share

Streamline commercial structure to reduceredundancies. Implementation through 2016.

Southern Cone


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Chile

Argentina

Paraguay

Uruguay

Southern

Cone

Southern Cone

Cen tral Europe


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Estonia

Latvia

Lithuania

Poland

Hungary

Czech

Romania

Slovakia

CentralEurope

Cen tral EuropeIn Progress

Program Components


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Program Components





Colgate Bus iness Services Princ iples


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Colgate Bus iness Services Princ iples

Multi-functional business services

As global as possible, as local as necessary

Delivery through a network of shared service centers Maximize work in a global center

Regional centers support local language andproximity requirements

Location of service delivery based on detailedactivity-level analysis

Extend ing Shared Bus iness Serv ices


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Extend ing Shared Bus iness ServicesBenef i ts

Standardize and simplify integrated supportservices

Increase level of value-added support toon-the-ground operations

Focus local subsidiaries on achieving

commercial success

Reduce costs, enhance efficiencies

Examp le: Europe


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a p e u ope

Consolidating financialoperations

Reducing costs

Discovering new

opportunities for savingsWarsaw, Poland

Establ ish ing New Locations


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g

Global Center

Mumbai

Region al Center

Mexico City

Program Components


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g p





Manufac tu r ing Fac i li t ies


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ProposedPre-2004 Today 2016

85 54 -10%

g

Optim izing Global Supply Chain


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p g pp yBenefi ts

More efficient supply chain network

Increased speed to market

Optim izing Global Supply Chain


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Began process of exiting Oral Care facilities inGermany, Switzerland and Poland andconsolidating production into dedicated Oral Care

plant in Swidnica, Poland, as planned

Announced relocation of Morristown, NJ Underarmmanufacturing facility to the Southeast of the

United States

All factory closures expected to be completed bythe end of 2015

p g pp yStatus Update

2013 Reinves tmen t Prio r i t ies


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Enabling technology and analytics

Digital engagement

Emerging Markets

Innovation and brand building


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Global Grow th

and Eff ic iency Prog ram

w i ll help keep us

Winn ing on the Ground



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g g








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Documents

CL Colgate Palmolive Corp Sept 2013 Investor Slide Deck Powerpoint PPT PDF