cl colgate cagny 2016

8/20/2019 CL Colgate CAGNY 2016

http://slidepdf.com/reader/full/cl-colgate-cagny-2016 1/130

Consumer Analys t Group

o f New York Con ference

February 19, 2016



February 2016

Not ice for Investor Presentat ion

Our presentat ion contains non -GAAP f inancial measures, which d i f fer f rom o ur reported resul ts

in accord ance with U.S. general ly accepted account ing princ iples (GAAP). These non-GAAP f ina

of op erat ing resu l ts , as appl icable, exclude the impact of the fol lowing: a charge resul t ing from aaccount ing for the Company’s Venezuelan operations, gain on sales of non-core produ ct l ines, c

to the sale of land in Mexico, charges related to devaluat ions in Venezuela, rest ructur ing charge

other i tems. We may also refer to organic sales growth, which is Net sales grow th excluding th e

exchange, acquis i t ion s and divestm ents, or to free cash f low before div idends, which we def ine

by op erat ions less Capi tal expendi tures. A com plete, quant i tat ive reconc i l iation between our rep

these non- GAAP financial measures is available in the “For Investors” section of our web site at

ht tp: / /www.colgatepalmol ive.com.

In addi t ion, our pr esentation may con tain forward- look ing statements. These statements are maof our v iews and assump t ions as of this t ime and w e undertake no ob l igat ion to upd ate these sta

as required by law. We caut ion investors that forward- look ing statements are not gu arantees of

and that actual events or resul ts may di f fer mater ially f rom thos e statements. Investors should c

Company’s f i l ings with the Securi t ies and Exchange Comm iss ion (inc luding the informat ion set

capt ion “Risk Factors” in the Company’s Annual Report on Form 10 -K for th e year ended Dec em

for inform at ion about certain factors that could cause such d i f ferences. Copies of these f i lings a

in the “For Investors” section of our web site at http://www.colgatepalmolive.com.



Today

Solid results in a turbulentenvironment

Driving growth in 2016



Today





2015

Macroeconomic challenges

Commodity pricing pressures

Foreign Exchange volatility



+1.7%+0.6%

+5.0%

+2.3%

-6.7%

-1.7%

+2.9%

-4.0% -3.7%

-14.0%

-12.0%

-10.0%

-8.0%

-6.0%

-4.0%

-2.0%

0.0%

2.0%4.0%

6.0%

2005 2006 2007 2008 2009 2010 2011 2012 2013

Foreign Exchange Volat ile



Desp ite th is environmen

so l id resu l ts



Top l ine Grow th

2003-08CAGR 2009 2010 2011 2012 2013

Volume(excludingdivestitures)

+6.2% +0.5% +3.0% +4.0% +3.5% +5.0% +

Organic SalesGrowth

+6.9% +6.5% +3.0% +4.0% +6.0% +6.0% +



Organic Sales Grow th Across A l l Di

Total Company +5.0%

North America +2.0%

Europe / South Pacific +1.0%

Latin America +9.5%

Asia +2.5%

Africa/Eurasia +6.0%

Hill’s +6.0%

2015



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%

35%

60%

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

Gross Margin

2004-2008, 2010-2015 exclud e restructu ring c harges and /or other i tem s



$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$4,02

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

Compound Grow th +6.8%

Operat ing Prof i t($MM)

2004-2008, 2010-2015 exclud e restruct uring charges and /or other i tems



$458

$619

$789

$920

$1,170 $1,164$1,268

$1,466 $1,440 $1,447$1,387

$1,670$1,619

$2,702$2,661

$2,358

$2,632

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

Free Cash Flow Before Divide($MM)

CAGR: +8.8%



$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

$0.00

$0.25

$0.50

$0.75

$1.00

$1.25

$1.50

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

Dividends PaidPer Common Share

Inc reased fo r

53 consecutive years

Amo unts adju sted for two -for-one stock sp lit in 1997, 1999 and 2013



Today





Driving Grow th in 2016

Strategic clarity and consistency

Innovation across all categories

Powerful commercial strategies

Compelling consumer engagement

Simplification and operational efficiencie



Key Strateg ic In i t iat ives

Engage to Build Our Brands

Innovation for Growth

Effectiveness and Efficiency

Leading to Win



Sus tained Financ ial Strateg

Gross Margin

Overhead

Advertising/

New Products

Operating Profit

Cash Flow



Strategy

Balance

Agi l i ty



Colgate Total Daily Repair

Helps reverse early damage fo r

better o ral health



Colgate Optic White High Impac

4 shades

vis ib ly whi te



5 shades white

Star ts work ing i

B rus h. Wh iten

Colgate Optic White

Too thbru sh + Whitening Pen



Colgate 360 ° Advanced Toothb

4-zone bacteria-remov ing

for a who le mouth cl



Colgate 360 °

Charcoal Gold Toothbrush

Charcoal infu sed, sl im t ip b

100% antib acter ial b rist



Colgate Plax – Naturals L in

24/7 bad b reath c

wi th

100% natural ext



Presc r ipt ion Diet Derm Defen

Firs t and only nutr i tion

Histaguard Com plex to r

signs of environmental al



Science Diet Healthy Cuis in

Loaded w ith tasty ingre

and a sauce pets lov

del iver the perfect bala

taste and nutr i t io



Science Diet Sens i t ive Stomach

Precisely balanced nu

for sensi t ive digest ive s

and to improve skin &

health fo r Small & Toy



Innovat ion and Grow th for Sa

Expand to more countries

Norway

Sanex Geog raph ic



Norway2015

Sanex Geog raph ic

Expansion

UK2000South Africa1998

Belgium – 1992

France1991

Portugal1991

Denmark1991

Netherlands – 19

Gr

1

Spain1984



0.0

2.0

4.0

6.0

8.0

Underarm

Body Wash

Feb Mar Apr May June July Aug Sep

Sanex : Norway Market Shar2015

I t i d G th f S



Innovat ion and Grow th for Sa

Expand to more countries

Enter into Skin Care

Ski C St t



Facial Cleansers Acne

Healthy Skin Antibacter ia l

Hand &

Heal

Skin Care Strategy

S Ad d

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRxqFQoTCLSLo5yR98cCFYjYPgodN_oO5Q&url=http://www.creativestockphoto.com/images-of-man-and-woman.html&psig=AFQjCNFkpcILgpW2YViJBc4IpaG7YUR_Bg&ust=1442341025224147

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRxqFQoTCNuTsZ2N98cCFcKCPgodLNQNZA&url=http://misfitpolitics.co/2014/02/30-best-things-about-being-a-woman-that-arent-hateful-to-men/&psig=AFQjCNH86FUZ855-b7x0pf0-6bI7ryc54w&ust=1442339856745244

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&ved=0CAcQjRxqFQoTCMPFrcaP98cCFUxtPgodkNMKKQ&url=http://danschawbel.com/blog/74-of-the-most-interesting-facts-about-the-millennial-generation/&psig=AFQjCNGhTWeVoD-0IRklEBY4dUeraGuHVw&ust=1442340535638723



Sanex Advanced

Del iver ing sk in expert ise for every n

Strategic Object ives fo r




Sanex Advanced

Expand into Hand & Body Lotions category

Further build brand credentials on healthy s



Hydrate 24h DermAtopiDerm

S Ad d H d t 24



Sanex Advanced Hydrate 24

Very Dry Skin 24H Moisturiza

Reinforce the hydroto retain water

Unable to retain moisture

Sanex Advanced AtopiDerm

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&docid=7LQ0wU1VHpaKtM&tbnid=vrbWdRlPmUHpzM:&ved=0CAUQjRw&url=http://www.effortlessskin.com/blog/2013/06/best-ingredients-for-dry-skin/&ei=ZDukU7e2FJHgsAS_8oC4BQ&bvm=bv.69411363,d.cWc&psig=AFQjCNGWhoQf2HOWxTtSj0gXjcvFKC_-Pg&ust=1403358413591849



Sanex Advanced AtopiDerm

With skin-identical and emollients

Soothes itchiness

20% of population

Damaged protective barrier

Atopic-prone skin Soothing and Hypoal

Sanex Advanced DermoRep



Sanex Advanced DermoRep

Re-establishes naturaskin comfort

pH disruption

Everyday damage: hotshowers, shaving

Skin with minor damages Helps repair minor sk

Sanex Advanced



Sanex Advanced

Lead market: France

Innovat ive Launch Plan



“Clinically provensolutions

for your skin”

Custome

Dermatologists

Sampling &Consumer Reviews

In Store &e-Commerce

Full IMC

PR & Blogs

Skin Diagnos is In Sto re



Skin Diagnos is In Sto re

Sampl ing Through Magazin



Sampl ing Through Magazin




g j

Sanex Advanced

Expand into Hand & Body Lotions category

Further build brand credentials on healthy s

Engage with dermatologists

Profess ional Plan



Profess ional Plan100% reach among dermatologist

Dermatolog ist Plan Resu lt



Dermatolog ist Plan Resu lt

#1 RecommendedBody Wash mass market brand

Recommended by 71% of dermato log

Driv ing Body Wash and Underarm Protect ion Ma

F



France

8.4

8.9

9.

8.18.2

8.

7.5

8.0

8.5

9.0

9.5

10.0

2013 2014 2

AdvancedLaunch

Y

Sanex Hand & Body Lot ion Market



yFrance

1.5

3.5

0

1

2

3

4

Hand & Body Lotion Body Lotion Pump

4re

Sanex Share Grow th



Sanex Share Grow thEurope

8.2 8.48.7 9.3

5.9 6.2 6.2 6.5

0.0

2.0

4.0

6.0

8.0

10.0

2012 2013 2014 2015 YTD

B




Worldw ide Too thpaste Shar



31.0

44

16.2 1

17.0

8.2

1

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 '13 '1

Worldw ide Too thpaste Shar

Worldview 360 °

Worldw ide Manual Too thb rush S



26.2

1818.4

34

15

20

25

30

35

'94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '1

Worldview 360 °

Worldw ide Overal l Too thb rush S



Worldw ide Overal l Too thb rush S

34.2

27.7

20.3

28.2

15

20

25

30

35

40

'05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 YTD

Worldview 360 °

Worldw ide Mou thwash Shar



12.217

6.86

42.2 41

9.1 9

0

5

10

15

20

25

30

35

40

45

'09 '10 '11 '12 '13 '14

Worldw ide Mou thwash Shar

Worldview 360 °

Powerfu l Commercial Strateg



g

Market share strength around the world

Strong professional endorsement

Too thpaste Recommended

M Of b D i W ld



47%

19%

9%

Comp. 1Colgate

Most Often by Dent is ts Worldw2014

Source: Annual Dentist Tracking Study

Note: By Corporation

Comp.

Pet Food Recommended

M t Oft b V t i i



58%

25%

Hill's Nearest Competito

Most Often by VeterinariansSick Pets 2014 – U.S.

Source: Ipsos, 2014 Veterinary Study

New Partnerships to

F th D i R d t i



Further Drive Recommendat ioHill’s Pet Nutrition

New partnership with AGL (AgLogica), makersof wearable technology

Will allow veterinarians and pet parents to

monitor pet behavior and progress

Can see benefits of Hill’s therapeutic nutrition

on pet’s health in real time

Powerfu l Commercial Strateg



g

Market share strength around the world

Strong professional endorsement

Successful pricing and margin planning









Compell ing Consumer Engage



Increase commercial investment





Continue to provide value at all price p

At A l l Pr ice Poin ts



Price

Benefits

$1.32

$0.66

$1.23

$0.05

Recomm ended Retai l Price

Innovat ion for

Low Income Consumers



Low Income Consumers

40ml 90ml 180ml 360ml






Achieve superior execution in store

In -Store Excellence



France




Ghana




China




India






Achieve superior execution in store

Extend reach through Digital

Investment in Dig i tal Di i t l % f W ki M di



Digi tal % o f Wo rking Media

2006 2.5%

2010 6.5%

2014 13.0%

2015-17 Target 20.0 – 25.0%



Example: Lat in America

Bui ld ing Brands in a Digi tal W

Digital Market ing – Lat in Ame



Latin America Digital Landscape

Building Brands in a Digital World

– Colgate

–Protex

– Home Care

2016 In ternet Users and Penetr



120

71

30 3018 13

71

58% 58%

68%

62% 57%

72%

47%

0

20

40

60

80

100

120

140

Brazil Mexico Argentina Colombia Peru Chile Other

Internet Users (Millions)

Penetration

Average Time Spent in Lat in AmDaily Minu tes per Capita



Daily Minu tes per Capita

212 207 206 206199 196

159169

177 181

198208

0

50

100

150

200

250

2011 2012 2013 2014 2015 2016

TV

Internet

Lat in America Digi tal Landsc



Growing rapid ly

Driven by millennials

Mil lenn ials Driv ing Grow th



Numerous

Parents

Digital

40% of population

40% are parents

75% use digital in an averweek



Mob i le Driv ing Access



68%58% 58% 62%

43% 41%49%

Argentina Brazil Mexico Colo

Internet Access

Internet via mobile

Facebook Users120



98MM

52MM

25MM 23MM

10MM

0

20

40

60

80

100

Brazil Mexico Argentina Colombia Chile

47% 46% 60% 47% 56% % of

Total Pop ulat ion





– Colgate

–Protex

– Home Care

Brand Strategy



Colgate Brand Bel ief : Everyone deserves a future they can sm ile a

Colgate Smile = Sm ile of hope in aful l of opportun i ties



Latin America Market Share

#1 Toothpaste



74.9 75.7

0

1020

30

40

50

6070

80

90

2011 2012 2013 2014 20 YT

p

Source: Wor ldv iew






– Colgate

–Protex

– Home Care

Online Video – Protex Examp



Protex Brand Bel ief :

Chi ldren f louris h when they are safe to

explore the wo r ld

Protex Onl ine Video:

High reach – 70% of Women 18-49 in Braz

Lower CPM cost vs. TV (60% cost)

Strong engagement – 4X higher than avera

40

Lat in America Market Share

#1 Bar Soap



26.4 29.5

24.426.4

10.3

6.6

0

10

20

30

40

2011 2012 2013 2014 20 YT

Source: Wor ldv iew




Latin America Digital Landscap

Building Brands in a Digital Wo

– Colgate

–Protex

– Home Care

Bu i ld ing B rands



“ Always On ” : bui ld compel l ing brand conte

Visualize brand – purpose and voice

User first – insights and data

Tu Hogar – Digi tal Home Solut



ThreeBrands

DigitalHome

Solutions

Mom’s Love Joyful Home Kitche

Tu Hogar – B rands at the Cen



Mom s Love Joyful Home Kitche



Ax ion B rand Purpose



Empower you to make the

kitchen your masterpiece

KitchenClean Tips

New Tu Hogar – User at the Ce



HogarFabuloso

Mama Suavitel

Cocina enAxion

Recipes

KitchenTecniques

Producto



Axion Facebook Creat ive



60

Lat in America Market Share

#1 Hand Dishwash ing



50.2 51.4

31.727.2

0

10

20

30

40

50

2011 2012 2013 2014 20 YT

Source: Wor ldv iew

Digital Med ia Spend$MM% Total

Working



g

Media

6.2%

8.9%

11.7%

14.8% 15.5%16.1%

1

0%

5%

10%

15%

20%

2010 2011 2012 2013 2014 2015 LE 2

Colgate Lat in AmericaBui ld ing B rands in a Digi tal Wo



One objective: Grow market share

Core focus: Build our brands



2.3 bi l l ion impressions



10 million video views on YouTub

and Facebook

50 million+ views on Twitter

37.940

U.S. Too thpaste Market Shar(Expanded Al l-Out let Combined)



35.0 35

37.93

20

25

30

35

'11 '12 '13 '14 '15

Source: Nielsen



Simpl i f icat ion



Increases agility to makes better a

faster decisions

Enables faster topline growth

Simpli f icat ion and Operat ional Eff ic

Reducing our in-store spend



Focus on inventory reduction

Total Inven toriesDays Coverage



2010 2011 2012 2013 2014 20

Base business results




SKU reduction

Funding the Growth

Funding the Grow th

Key component of Colgate’s financial strategy



Sustained global process with systematic trackinof savings initiatives

Generates funds to reinvest in the business for gr

Deeply ingrained way of working that gives Colgaa competitive advantage






SKU reduction

Funding the Growth

Standardize and automate business process

B i R i



Automated , real-t ime reviews

Business Review

of the Future



Program extended in 2014 and 2

to inc lude add i tional savings oppor

Add i t ional Savings Oppo rtun

Continued focus on three identified are



Continued focus on three identified are

Relentlessly simplify how we work

Build on successes to drive greaterefficiency and effectiveness









2016We will continue to balance the business to:

Achieve short and long term growth



– Achieve short-and long-term growth

–Ensure our innovation pipeline remains stroand we simplify as needed

We have the agility to meet challenges as they oand make decisions smarter and faster

We are well-positioned for margin and market shexpansion

cl colgate cagny 2016

Documents