analyst presentation 2015

74
COLGATE PALMOLIVE INDIA LTD.

Upload: kshitij-jindal

Post on 18-Aug-2015

223 views

Category:

Documents


7 download

DESCRIPTION

Analyst Presentation 2015

TRANSCRIPT

COLGATE PALMOLIVE INDIA LTD. Disclaimer This Presentation and its related publication, release, webcast or communication (together the Presentation) is for general information purposes only. This Presentation does not solicit any action by Colgate-Palmolive (India) Limited (the Company) based on the material contained herein. Nothing in this Presentation is intended by the Company to be construed as legal, accounting, investment or tax saving advice. This Presentation includes statements that are, or may be deemed to be, forwardlooking statements(except for the historical information). These forward-looking statements appear in several places in the Presentation and are based on certain expectations, assumptions, anticipated developments and various other factors which are not limited to, risk and uncertainties regarding fluctuations in market share, earnings, market growth, intense competition and the pricing environment in the market, consumption level, ability to maintain and manage key business stakeholders and external factors having impact on the conduct of the business not limited to inflation, currency fluctuations, climatic changes, political and regulatory environment, Government policies and changes in international oil prices etc.

The Company, therefore, in no way assures, represents, warrants, guaranty, undertake, express or imply, given that such statements, views, projections or forecasts are correct or that the objectives of the Company will be achievedascontained in the Presentation. The Companys actual results of operations, financial condition, stability, liquidity, and the development of the industry / business sector in which the Company operates, may differ materially from those suggested by the forwardlooking statements contained in this Presentation. The Company may alter, amend, modify, revise or make necessary changes in any manner to any such forward looking statements contained herein including but not limited to oral forward looking statements as may be required from time to time on the basis of any subsequent developments, conditions, circumstances, information, events or otherwise. The Company expressly disclaims and does not assume or undertake any obligation to update forward looking statements to reflect the events, developments or circumstances after the date of the Presentation. Neither the Company nor its affiliates or advisors or representatives nor any of its or their parent or subsidiary companies or undertakings or any such person's officers, directors or employees guarantees that such forwardlooking statements and its assumptions, including oral or implied, are error free, lacking omissions, fair, accurate and complete nor does either assume or accept any responsibility for such forwardlooking statements in future or the actual occurrence of such projections or forecast based on such forward-looking statements.

This Presentation should not be in any manner whatsoever construed as an approval, acknowledgement, confirmation or acceptance by any statutory or regulatory authority in India including the stock exchanges in India. The material contained in this Presentation is subject to change without notice and past performance and historical trends or information is not indicative of future results.

This Presentation is for information purposes only and does not constitute or should not be construed as an offer / invitation for sale or subscription of or solicitation for any securities of the Company. Investors are cautioned to exercise diligence before taking any investment decisions or otherwise and Company assumes no responsibility for any loss or damage suffered due to any decisions made on the basis of this Presentation. Financial Results Financial Strategy Sales/ Volume Margin Non Variable Overheads Advertising Operating Profit 4Q 2015 Net Sales(Rs. Crores) Gross Margin EBITDA (Rs. Crores) Profit After Tax(Rs. Crores) Summary 4Q 2015 Net Sales Gross Margin PAT EBITDA + 11% + 310 bps + 23% + 24% Full Year 2014-2015 Net Sales (Rs. Crores) Gross Margin EBITDA (Rs. Crores) Profit After Tax - 2013-14 PAT isexcluding exceptional items due to GSSO slump sale (Rs. Crores) Summary 2014-2015 Net Sales Gross Margin PAT EBITDA + 12% + 250 bps + 24% + 14% It has been a challenging environmentGDP Growth 9.5 9.6 9.3 6.7 8.6 8.9 6.7 4.7 5.0 5.6 FY06FY07FY08FY09FY10FY11FY12FY13FY14FY15ESource: Citibank Macro Flash reports (old series) FMCG Growth 7.5% 4.8% 9.1% 8.5% 6.8% 5.4% 4.5%4.4% 4.9% 5.0% 4.5% 4.6% 4.3% 2.3% 4.0% 4.2% 3.2%5.8% 4.3% 1.0% 1.2% 2.9% 4.3% 5.7% 11.7% 7.1% 13.2% 12.6% 10.0% 11.2% 8.8% 5.4% 6.1% 8.0% 8.8% 10.3% Price led growth Consumption growth Value growthSource:Nielsen RMSAll India (U+R)FMCG nos. does not include Soft Drinks/ Liquor/ Juices We continue to focus on our proven strategic initiatives Key Strategic Initiatives Engage to build our brands Innovation for growth Effectiveness & Efficiency Leading to Win Our consumer franchise & equity continue to grow Toothpaste shares 54.5 55.9 56.7 57.8 23.8 22.8 21.5 19.9 13.9 13.5 13.413.4 2012 2013 2014 YTD 2015Competitor 1 Competitor 2 Source: AC Nielsen Retail Audit YTD April 2015; Volume Shares Toothbrush shares 39.8 41.6 42.4 42.1 18.818.418.318.3 6.7 7.4 7.9 8.8 2012 2013 2014 YTD 2015Source: AC Nielsen Retail Audit YTD April 2015; Volume Shares Competitor 1 Competitor 2 Indias Most Trusted Brand # 1 Brand across all sectors 4 Years in a row Only brand in top 3 since the surveys inception in 2000 Source: Economic Times Brand Equity Survey 2014 Indias Most Purchased Brand Source: Kantar Worldpanel Report 2014 And we areInvesting to Grow Key Growth Drivers Innovation Engaging with consumers to build our brands Winning on the Ground Strong professional partnerships Innovating to create new segments Whitening Whiter + Shinier Teeth in 1 week Innovating to create new segments Sensitivity Repairs Enamel for Lasting Sensitivity Relief Innovating to create new segments Premium Anti-Cavity Fights Sugar Acids, the #1 cause of Cavities Innovating to create new segments Deep & Gentle Cleaning, with Charcoal Infused Bristles A Nielsen Survey Innovating to create new segments Deep Cleaning Between Teeth First mass black toothbrush Innovating to drive premiumization Price Rs.5 15g Rs.10 35g Rs.17 50g Rs.20 50g Rs.46 100g Rs.60 70g Rs.85 100g Rs.95 70g Benefits Innovating to drive premiumization Rs 13 Rs 16 Rs 20 Rs 25 Rs 30 Rs 45 Rs 65 Rs 79 Price Benefits Rs 55 Key Growth Drivers Innovation Engaging with consumers to build our brands Winning on the Ground Strong professional partnerships Engaging with consumers on digital Over 3.1 MM fans on India Facebook pages Engaging with consumers on digital Main page of leading portals turned black for the first time ever Reached 23 million consumers Product launch of SlimSoft Charcoal on digital platform Engaging with consumers on Mobile Colgate Scholarship Offer Over 1.5 Million call-ins Engaging with consumers on Mobile Using Mobile to reach media-dark regions Over 5.5 million reached through voice-based mobile delivery Key Growth Drivers Innovation Engaging with consumers to build our brands Winning on the Ground Strong professional partnerships Increasing distribution & availability Colgate available in 4.8MM outlets Increasing distribution & availability Invested behind infrastructure 340 801 951 2012 2013 2014No. of rural vans Servicing the Growth Toothpaste facility at Sanand, Gujarat. Commissioned from March 2014 Servicing the Growth Toothbrush facility at Sricity, Andhra Pradesh.Commissioned from March 2015 Superior In-Store Execution Making our brands Available Visible Irresistable Superior In-Store Execution Partnering modern retailer customers on planogramming & shopability Superior In-Store Execution Impactful In-store visibility for new launches Superior In-Store Execution Impactful In-store visibility for new IMCs Superior In-Store Execution Customised hanger packs for traditional trade Superior In-Store Execution Customised solutions for traditional trade Superior In-Store Execution Key Growth Drivers Innovation Engaging with consumers to build our brands Winning on the Ground Strong professional partnerships Partnering with theIndian Dental AssociationEnhancing engagement & education with 30,000 + dentists Continuing dental education programs National & State conferences IDA-Colgate Scholarships Alliance for a Cavity-Free Future Creating an external voice to raise awareness on dental caries Academicians + Dentists + Pediatrician + NGO PartnersLeading with the Profession on recommendations & usage CP Competitior 1 Competitior 2 Competitior 365 7 4 3 CP Competitior 1 Competitior 2 Competitior 374 3 6 4 Brand RecommendedMost Often by Dentists Brand UsedMost Often by Dentists Source: Ipsos Dentist TrackDec 2014 Key Growth Drivers Innovation Engaging with consumers to build our brands Winning on the Ground Strong professional partnerships Huge Headroom for Growth Penetration 250MM consumers do not use Toothpaste91.292.3 2013 201472.8 74.1 2013 2014Urban Source: Indian Readership Survey (HHs), IMRB** Rural Consumption 0100200300400500600700Brazil USA Philipines China IndiaChart TitleMarket size DOUBLES if PCC reaches China levels Per Capita Consumption (gms) 617 543 259 264 136 Source: FractalAnalytics - Market Analyzer Dec2014 Premiumization Average Selling Price($) Per KG of Toothpaste 18 13 116 3X2.2X1.8XX Average Selling Price($) Per Toothbrush 2.71.70.60.2 13.5X8.5X3XX Source: FractalAnalytics - Market Analyzer Dec2014 Market size DOUBLES if ASP reaches China levels Leading to Win Working with our Community Bright Smiles, Bright Futures Over 125 million school childrencontacted in the program Oral Health Month In association with IDA, over 5.5 Million free dental check-ups done in 2014 Working with NGO Partners Conservation of Natural Resources, Vocational training for self sustenance of villagers, Girl child empowerment. Addressing Inequalities- Payroll giving programto sponsor children affected and infected by HIV. Providing quality education to underprivileged of children ;Program Read India- improve basic reading, writing and arithmetic skills In closing,a summary of our long term performance Net Sales Gross Margin PAT EPS DPS Shareholder Returns YearSharesValue1978IPO - 2506,250 1994Rights - 1,28025,600 2015*Holdings - 14,08028,343,040 *As on 31st Mar 2015 Dividend Received 3,651,499 (includes Capital reduction) Compounded return of 27% since the IPO Well-poised to continue to grow shareholder value Lets Talk