Colgate-Palmolive Company Annual Meeting of Stockholders s. May 11, 2018

Transcription

1 Colgate-Palmolive Company Annual Meeting of Stockholders s May 11, 2018

2 May 2018 Notice for Investor Presentation Our presentation and the related webcast contain non-gaap financial measures, which differ from our reported results prepared in accordance with U.S. generally accepted accounting principles (GAAP). These non-gaap financial measures of operating results, such as gross profit margin and operating profit, exclude items that, either by their nature or amount, management would not expect to occur as part of the Company s normal business on a regular basis, such as restructuring charges, charges for certain litigation and tax matters, gains and losses from certain divestitures and certain unusual, non-recurring items. We may also refer to organic sales growth, which is Net sales growth excluding the impact of foreign exchange, acquisitions and divestments, or to free cash flow before dividends, which we define as Net cash provided by operations less Capital expenditures. A complete, quantitative reconciliation between our reported results and these non-gaap financial measures, including a description of the excluded items, as well as a schedule of sales growth as reported and organic sales growth, is available in the Investor Center section of our website at Our presentation and the related webcast may also contain forward-looking statements (as such term is defined in the U.S. Private Securities Litigation Reform Act of 1995 or by the Securities and Exchange Commission ( SEC ) in its rules, regulations and releases) that set forth anticipated results based on management s current plans and assumptions. Such statements may relate, for example, to sales or volume growth, organic sales growth, profit or profit margin growth, earnings per share growth (including on a currency-neutral basis), financial goals, the impact of foreign exchange volatility, cost-reduction plans, including the Global Growth and Efficiency Program, tax rates, U.S. tax reform, the need to repatriate undistributed earnings of foreign subsidiaries, new product introductions or commercial investment levels, acquisitions and divestitures, or legal or tax proceedings, among other matters. These statements are made on the basis of our views and assumptions as of this time and we undertake no obligation to update these statements whether as a result of new information, future events or otherwise, except as required by law or by the rules and regulations of the SEC. Moreover, the Company does not nor does any other person assume responsibility for the accuracy and completeness of those statements. We caution investors that any such forward-looking statements are not guarantees of future performance and that actual events or results may differ materially from those statements. For information on factors that could impact the Company s business and cause actual results to differ materially from forward-looking statements, refer to the Company s filings with the SEC (including, but not limited to, the information set forth under the captions Risk Factors and Cautionary Statement on Forward-Looking Statements in the Company s Annual Report on Form 10-K for the year ended December 31, 2017 and subsequent Quarterly Reports on Form 10-Q). Copies of these filings are available in the Investor Center section of the Company s website at or may be obtained upon request from the Company s Investor Relations Department.

3 2012 Joey and Emily Camlet

4 Bright Smiles, Bright Futures Classroom materials

5 Today

6 Today

7 Today Election of Directors and Other Shareholder Business Your Company s Performance Investing for Global Growth, Winning with Focus Q & A

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10 Today Election of Directors and Other Shareholder Business Your Company s Performance Investing for Global Growth, Winning with Focus Q & A

11 Worldwide Toothpaste Shares Colgate Comp. 1 Comp. 2 Comp. 3 0 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 Worldview 360

12 Worldwide Manual Toothbrush Shares Colgate Comp. 15 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 Worldview 360

13 Worldwide Mouthwash Shares Comp '09 '10 '11 '12 '13 '14 '15 '16 '17 Colgate Comp Comp Worldview 360

14 Organic Sales Growth +6.0% +5.0% +5.0% Colgate Peer Average +4.0% +3.3% +3.1% +4.0% +2.5% +1.0% +1.7% Calendar year basis

15 Gross Margin 65% 60% 55% 50% 50.6% 49.3% 47.7% 56.4% 57.3% 56.7% 52.1% 52.7% 53.4% 54.6% 55.0% 55.2% 55.3% 60.3% 60.5% 58.8% 59.1% 57.6% 58.3% 58.8% 58.7% 58.7% 45% 40% 35% '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 ' , exclude restructuring charges and/or other items , exclude restructuring charges and/or other items

16 Operating Profit $MM $5, % 30% $4,000 % to Sales $3, % 20% $2,000 $3,923 10% (a) (b) $1,000 $1,185 $0 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 Compound Growth +5.9% , exclude restructuring charges and/or other items Operating Profit not restated for 2018 accounting change relating to pension expenses 0%

17 Total Return 20 Years 12/31/97 12/29/ % +301% +309% S&P Peer Group Colgate

18 Total Return 10 Years 12/31/07 12/29/ % +125% +145% S&P Peer Group Colgate

19 Total Return 5 Years +108% 12/31/12 12/29/17 +81% +61% S&P Peer Group Colgate

20 Total Return % +14.8% +17.9% S&P Peer Group Colgate

21 Dividends Paid $1.60 $1.40 $1.20 Per Common Share Uninterrupted for 123 consecutive years $1.14 $1.22 $1.33 $1.42 $1.50 $1.55 $1.59 $1.00 $0.80 $0.60 $0.45 $0.48 $0.56 $0.63 $0.70 $0.78 $0.86 $1.02 $0.40 $0.20 $0.24 $0.27 $0.28 $0.30 $0.32 $0.34 $0.36 $0.00 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 Amounts adjusted for two-for-one stock split in 1997, 1999 and 2013

22 Dividends Paid $1.60 $1.40 $1.20 $1.00 $0.80 $0.60 Per Common Share Uninterrupted for 123 consecutive years Increased for 55 consecutive years $0.86 $0.78 $0.70 $0.63 $0.56 $0.48 $0.45 $1.02 $1.14 $1.22 $1.33 $1.42 $1.50 $1.55 $1.59 $0.40 $0.20 $0.24 $0.27 $0.28 $0.30 $0.32 $0.34 $0.36 $0.00 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 Amounts adjusted for two-for-one stock split in 1997, 1999 and 2013

23 Today Election of Directors and Other Shareholder Business Your Company s Performance Investing for Global Growth, Winning with Focus Q & A

24 Investing For Global Growth Winning With Focus Colgate-Palmolive Company 2017 Annual Report

25 Investing for Global Growth, Winning with Focus Strengthening consumer engagement Focusing on innovation Partnering with retailers Increasing productivity everywhere Living our values

26 Investing for Global Growth, Winning with Focus Strengthening consumer engagement Focusing on innovation Partnering with retailers Increasing productivity everywhere Living our values

27 Building Brands that Enrich the Lives of People Everywhere BRAND SUMMIT 2017

28 Strengthening Consumer Engagement Building consumption Driving brand loyalty

29 Strengthening Consumer Engagement Building consumption Driving brand loyalty

30 Significant Population Growth 9.0 Emerging Markets Developed Markets B Source: Euromonitor 95% of population growth from Emerging Markets

31 Emerging Middle Class EUROPE NORTH AMERICA billion CENTRAL & SOUTH AMERICA MIDDLE EAST & NORTH AFRICA Middle Class population SUB-SAHARAN AFRICA Middle Class population ASIA-PACIFIC 4.9 billion Source: OECD

32 Reaching More Consumers Less than 1x per day Between 1x 2x per day Colgate Share 68% of population* 32% of population* *Markets where we do business Grams

33 Building a Brand Habit Early engagement through Bright Smiles, Bright Futures

34 Bright Smiles, Bright Futures Worldwide Community Health Initiative Provides children worldwide with free dental screenings and oral health education 1 billion kids reached to date Goal: 1.3 billion kids by 2020

35 Bright Smiles, Bright Futures in Schools Vietnam

36 Building a Brand Habit Early engagement through Bright Smiles, Bright Futures Communication specific to region

37 Example: Teaching Walls Kenya

38 Example: Pocket Dentist in Rural India Most do not have access to traditional media Half of them have never visited a dentist Source: Indian Readership Survey Source: CUAS, 2016

39 Reaching These Rural Consumers India has more than 800 million mobile connections

40 The Colgate Pocket Dentist

41 The Colgate Pocket Dentist

42 Building a Brand Habit Early engagement through Bright Smiles, Bright Futures Communication specific to region Availability and affordability

43 Available and Affordable

44 Strengthening Consumer Engagement Building consumption Driving brand loyalty

45 Scholarship Program

46 Scholarship Program Began in India in 2013 Unique to areas lacking free public school access Consumers can win education aid for primary and secondary schools Now in 13 countries

47 Investing for Global Growth, Winning with Focus Strengthening consumer engagement Focusing on innovation Partnering with retailers Increasing productivity everywhere Living our values

48 Oral Care Pet Nutrition Home Care Personal Care

49 Oral Care Regimen

50 Support In-Store U.S. Latin America

51 Importance of New Segments: Naturals Asia Toothpaste Market % +15.6% growth Source: Market Analyzer

52 China Healthy smiles inspired by nature

53 India The perfect balance of ayurvedic and modern sciences

54 Russia Rediscover the ancient wisdom of nature

55 Removes dark stains caused by coffee, wine and soda

56 Locks in 4 hours of lasting comfort for dry mouth sufferers

57 Whiter smile after the first brushing

58 Makes gums healthier by reducing gingivitis

59 App-enabled, with artificial intelligence

60 Colgate Connect Toothbrush This artificial-intelligence-enabled toothbrush comes with an app that ensures you re scrupulously cleansing day and night - Wall Street Journal April 12, 2018

61 Available at Apple Stores

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63 Delicious new taste to grow on

64 Designed for dogs and cats with early kidney problems

65 All-in-one for a deep cleaning

66 Protects your clothes and neutralizes odor

67 For all the moms who make the world a better and softer place Happy Mother s Day

68 Hydration and protection from bacteria

69 Pamper yourself with the secrets of nature

70 Formulated to help minimize the risk of allergic reactions

71 Key Influencers Dentists Veterinarians Dermatologists

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74 Investing for Global Growth, Winning with Focus Strengthening consumer engagement Focusing on innovation Partnering with retailers Increasing productivity everywhere Living our values

75 Partnering with Retailers Collaborate to maximize growth in ecommerce

76 ecommerce Online toothpaste market leader in U.K., U.S. and China in 2017

77 U.S. Packaging Designed and developed specifically for Amazon ecommerce

78 China Co-Innovation Developed with Alibaba, China s leading ecommerce company

79 Partnering with Retailers Collaborate to maximize growth in ecommerce Increase customer engagement

80 Customer Engagement Center Located at Piscataway, NJ Technology Center Immersive, collaborative experience Better joint business planning

81 Investing for Global Growth, Winning with Focus Strengthening consumer engagement Focusing on innovation Partnering with retailers Increasing productivity everywhere Living our values

82 Increasing Productivity Everywhere Focusing on the Global Growth and Efficiency Program

83 Global Growth and Efficiency Program Savings are projected to be in the range of $ MM after-tax, once all projects are approved and implemented Rate of return greater than 30%

84 Example: Europe Hubbing 33 Countries Five Colgate Hubs

85 Hubbing provides greater efficiency and faster speed to market

86 Faster Speed to Market Roll-out of Colgate Max White Expert Complete across Europe in 6 months

87 Europe Simplification Q Number of SKUs -8.0% Sales/SKU +22.5% SKU: Stock-Keeping Units

88 Increasing Productivity Everywhere Focusing on the Global Growth and Efficiency Program Investing in technology and our supply chain

89 State-of-the-Art Toothbrush Lab Image of Tech Center TB Lab (May 1)

90 High-Speed Manufacturing Lines

91 Smarter Purchasing Example: Display Materials

92 Distribution Analytics Identifying opportunities for incremental sales

93 Example: Brazil Indirect Distribution Mapping São Paulo State

94 Example: Brazil Indirect Distribution Mapping Stores selling Colgate Toothpaste

95 Example: Brazil Indirect Distribution Mapping but not Colgate Toothbrushes

96 Increasing Productivity Everywhere Focusing on the Global Growth and Efficiency Program Investing in technology and our supply chain

97 Investing in U.S. Manufacturing Sanford, ME Cambridge, OH Topeka, KS Emporia, KS Richmond, IN Bowling Green, KY Greenwood, SC Morristown,TN Burlington, NJ

98 Greenwood, South Carolina

99 Newest U.S. Facility Opened in 2016 Employing 347 people Producing Underarm products, Body Wash and Liquid Hand Soap for the world

100 Newest U.S. Facility

101 Burlington, New Jersey

102 30 th Anniversary Worldwide flavor supplier

103 Cambridge, Ohio

104 30 th Anniversary North America Home Care

105 Increasing Productivity Everywhere Focusing on the Global Growth and Efficiency Program Investing in technology and our supply chain Driving savings every year to fund our growth

106 Funding the Growth Savings on land

107 Savings on Land U.S. fuel purchasing program savings: $3.3MM

108 Funding the Growth Savings on land Savings at sea

109 Savings at Sea Global ocean freight savings $19MM

110 Investing for Global Growth, Winning with Focus Strengthening consumer engagement Focusing on innovation Partnering with retailers Increasing productivity everywhere Living our values

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113 Colgate s Sustainability Commitments People Performance Planet Helping Colgate People and Their Families Live Better Contributing to the Communities Where We Live and Work Delighting Consumers and Sustaining Our World with Our Brands Making Every Drop of Water Count Reducing Our Impact on Climate and the Environment

114 Colgate s Sustainability Commitments People Performance Planet Helping Colgate People and Their Families Live Better Contributing to the Communities Where We Live and Work Delighting Consumers and Sustaining Our World with Our Brands Making Every Drop of Water Count Reducing Our Impact on Climate and the Environment

115 Making Every Drop of Water Count 2020 Goal Promote water conservation awareness to all of our global consumers

116 Global Ambassador 2018: 52 countries

117 World Water Day

118 WATER A score in both

119 Colgate Values Caring Global Teamwork Continuous Improvement

120 Colgate Values Always with unwavering integrity

121 Every Day Committed to being our best

122 Every Day As individuals and teams

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124 You Can Make a Difference Awards Recognize outstanding work from around the world Awards made in every global operation 133 annual awards this year Six winning teams 28 people

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126 You Can Make a Difference

127 Today Election of Directors and Other Shareholder Business Your Company s Performance Investing for Global Growth, Winning with Focus Q & A

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