Meeting Outline. Business Update - Graeme Dalziel Financial Overview - Moses Elias Questions & Answers - Management Team

Transcription

1 Welcome! May 2005

2 Meeting Outline Business Update - Graeme Dalziel Financial Overview - Moses Elias Questions & Answers - Management Team

3 CP India Management Team Graeme Dalziel VP South Asia & MD Moses A. Elias Exec V P & CFO Deepak Chhibba Exec V P Mfg. & Prod.Supp.Chn Arun Pande VP Info Tech Vinay Hegde Exec V P Marketing Vinod Nambir Vice President Sales K V Vaidyanathan Vice President Legal & Co. Sec Dr S P Manek V P Res.& Tech Centre Debashish Roy Vice President - HR

4 Results Overview Strategies are working Acceleration of volume growth Strong market shares Marked recovery in Toothpaste Market Record Earnings

5 Strategic Strength Category Toothpaste Toothpowder Toothbrush Shower Gel* Liquid Handwash* Value SOM % Market Position Relative Share Shaving Cream (exc Gel,Foam) Cold Creams *urban only

6 Market Size & Growth Trend (Volume) YTD Toothpaste (Tons) % Chg vs PY Toothpowder (Tons) % Chg vs PY Toothbrush (MM Pcs) % Chg vs PY Toothpaste market strongly back on growth track

7 Toothpaste Market Growth by Quarter Q1 04 Q2 04 Q3 04 Q4 04 Q1 05 Volume (Tons) % Chg vs PY Value (LC MM) % Chg vs PY Recovery in market value also from Q3 04 volume growth more than offsetting 2003 price reduction

8 Toothpaste LPP Segment Trend % Volume Shares Q1 04 Q2 04 Q3 04 Q4 04 Q1 05 Cibaca Anchor Ajanta Babool Others Total LPP Segment LPP segment showing signs of plateauing

9 Cibaca to Colgate Cibaca Rebranding Till August 03 Till March 04 60:40 Transition effective April 04

10 Toothpowder Category Trend Q2 03 * Q3 03 Q4 03 Q1 04 Q2 04 Q3 04 Q4 04 Q1 05 Category Vol (Tons) % Chg vs. Year Ago % Chg vs. Prior Qtr Signs of category volume stabilizing in H * Toothpaste SPD in this Quarter

11 Strategic Priorities Driving Growth Funding Growth Become The Best Place To Work

12 Driving Growth Priorities Grow Oral Care Market Shares Reignite toothpaste market growth Launch innovative new products Compete aggressively in LPP segment Strategic consumption & penetration building activities Build strong presence in emerging Personal Care categories

13 TOTAL COMPANY -DOMESTIC (EXCL SOAPS) Total Revenue 6,000 3 per. Mov. Avg. (Revenue) 5,500 5,000 4,500 4,000 3,500 Jan-01 Jul-01 Jan-02 Jul-02 Jan-03 Jul-03 Jan-04 Jul-04 Jan-05

14 Funding Growth Priorities Scale up of new incremental capacity manufacturing facility in Himachal Pradesh Exit from unprofitable manufacturing operations Upgrade existing manufacturing operations to support product innovations Selling price increases Reducing business complexity Aggressively seeking out savings opportunities across the business Continuous improvement gains from supplier partnerships for strategic materials

15 Baddi Plant

16 CONTINUED ABSOLUTE FOCUS ON: Strategic Prioritization Strict Financial Discipline As Perfect as Possible Execution Go to Market Excellence Motivational, Values Driven Culture Constant and Clear Communications

17 Renewed Focus on Innovation Category Innovation Centre Full pipeline of new products Innovation across the organization

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20 Battery Toothbrushes Colgate Motion Rs. 395 /-

21 Manual Toothbrushes Colgate Massager Rs. 50 /- Colgate ZigZag Plus Rs. 26 /- Colgate Designer Rs. 15 /- Colgate ZigZag Jr Rs. 12 /- Colgate Classic Rs. 6 /-

22 Manual Toothbrushes Colgate Super Flexible Relaunch with Tongue-Cleaning feature Rs. 13 /-

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25 CP Market Share Trend (Volume) YTD 04 YTD 05 +/- YA Latest 3 Periods Jan05 Feb 05 Mar 05 Toothpaste * Toothpowder Toothbrush * Highest monthly share since June 2002

26 CP Market Share Trend (Value) YTD 04 YTD 05 +/- YA Latest 3 Periods Jan 05 Feb 05 Mar 05 Toothpaste Toothpowder Toothbrush

27 Market vs. CP Growth YTD Mar 05 vs. YTD Mar 04 Value Growth % Market CP Volume Growth % Market CP Toothpaste Toothpowder Toothbrushes Note : Growth in Market & CP offtake as per Nielsen

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29 Meeting Outline Business Update - Graeme Dalziel Financial Overview - Moses Elias Questions & Answers - Management Team

30 SIMPLE FINANCIAL STRATEGY Reduce Costs Reduce Overheads Invest in Brand Building / New Products Grow NPAT

31 Highlights Real volume growth with VFM pricing Continued Cost and Expense reductions Rationalization of Assets Stronger Balance Sheet Record Earnings Higher Dividend

32 Sales 1,100 1,050 1,057 1,042 1,073 (Rs. Crores) 1, % +2.7% Gross Sales Net Sales

33 Costs (Excl. Advt.) % (Rs. Crores) A bad VRS = 6.4 Idle Assets =

34 Advertising % 20% % (Rs. Crores) % % % 18% 17% 16% 15% 14% 13% 12% % % Advertising % Sales

35 EBITDA % 19% (Rs. Crores) % % % 17% 15% 13% 11% 9% 110 7% % EBITDA % Sales

36 EBIT % (Rs. Crores) % % % 15.0% 15% 14% 13% 12% 11% 10% 100 9% EBIT % Sales 8%

37 Profit Before Tax % 18.5% 19% 18% 17% (Rs.Crores) % % 16% 15% % PBT % Sales 13%

38 Income Tax 80 45% (Rs. Crores) % % % -5 40% 35% 30% 25% 20% 15% 10% 5% % Curr Tax Def Tax Tax Rate

39 Profit After Tax % % % % 11% (Rs. Crores) % % PAT % Sales 9%

40 EPS, DPS & Payout % % 95% 90% (Rs.) % 85% % 80% 75% 70% % % 55% EPS DPS Payout 50%

41 Yield 5.0% 4.5% 4.6% 4.2% 4.0% 3.5% 3.0% 3.2% 2.5%

42 PE

43 Net Working Capital 0 0.0% % % % (Rs. Crores) % -14.2% -16.1% NWC % Sales -8.0% -10.0% -12.0% -14.0% -16.0% -18.0%

44 Cash Gen. from Operations (Rs. Crores)

45 Cash + Bank + Investments (Rs. Crores) New Plant =

46 Return on Capital & Equity

47 Thank You