Welcome to Colgate-Palmolive India COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET OCT

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1 Welcome to Colgate-Palmolive India COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET OCT

2 Agenda Business Update Roger Calmeyer Financial Review Moses Elias Questions & Answers COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET OCT

3 Leadership Team Roger Calmeyer V-P South Asia & MD India Moses A Elias Exec V-P & CFO Vinay Hegde Exec V-P Marketing K Vaidyanathan V-P & Company Sec Shekar Bharatwaj V-P Sales Debashish Roy V-P Human Resources COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET OCT

4 Leadership Team Roger Calmeyer V-P South Asia & MD India Moses A Elias Exec V-P & CFO Vinay Hegde Exec V-P Marketing Arun Pande V-P Info Technology Manish Lath Gupta CIC Head K Vaidyanathan V-P & Company Sec Shekar Bharatwaj V-P Sales Debashish Roy V-P Human Resources Sanjeev Dali Director GSSO Laurence Wheeler Exec V-P PSC Surendra Manek V-P R&D COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET OCT

5 Results Overview Positive Economic Indicators - Oral Care market growth Strong volume growth and momentum Business Model proving effective Excellent profit performance COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET OCT

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9 FMCG sector continues to be buoyant 80,000 70, * Sales Rs Crores 60,000 50, ,000 30, Source: AC Nielsen Retail Measurement Services Estimated for based on Aug YTD 06 growth rate * FMCG Sales COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET OCT

10 Non- food FMCG reverses declining trend of Growth in Non-food FMCG sales % Growth vs. year ago 20% 15% 10% 5% 0% -5% 18% 5% 7% 0% YTD Aug 06-1% Source: AC Nielsen Retail Measurement Services COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET OCT

11 Growth in all key categories including toothpaste 45 Growth Rate ( YTD Aug 2006 Vs YTD Aug 2005) % Toilet Soaps Washing powders Detergent Cakes Toothpaste Skin Creams Shampoos Source: AC Nielsen Retail Measurement Services COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET OCT

12 Indian Oral Care market offers significant opportunities to drive penetration Category Penetration Toothpaste Toothpowder Dentifrice H1 Source: Indian Readership Survey Dentifrice = Toothpaste or toothpowder COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET OCT

13 Opportunity to increase per capita consumption by increasing the frequency of brushing teeth China Malaysia India - Urban Per Capita Consumption (Grams/HH/Month) %age - twice a day brushing 61% 86% 7% Source: AC Nielsen Retail Measurement Services & Indian Readership Survey COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET OCT

14 Strategic Position Category Value Share Ranking Relative Share % Toothpaste 47.6 # Toothpowder 43.8 # Toothbrushes 34.3 # Shower Gel* 39.6 # Liquid Hand Soap* 3.6 # Shaving Cream* 11.0 # Cold Cream* 4.2 # Source: AC Nielsen Retail Measurement Services Period : YTD Sept 06 * Urban only COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET OCT

15 5,000 TOTAL TOOTHPASTE 4,500 4,000 3,500 Total 3,000 Revenue 2,500 3 per. Mov. Avg. (Revenue) Jan-02 Jul-02 Jan-03 Jul-03 Jan-04 Jul-04 Jan-05 Jul-05 Jan-06 Jul-06 COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET OCT

16 CP Sales per Capita (Rs) COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET OCT

17 BUSINESS MODEL BEST PLACE TO WORK Closer to DRIVING - Customer GROWTH - Consumer - Profession INNOVATION EVERYWHERE Consumer Innovation Centre FUNDING GROWTH Efficiency & Effectiveness in Everything COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET OCT

18 CLOSER TO THE CUSTOMER - E CHOUPAL - DISHA COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET OCT

19 Closer to the Customer. echoupal & Disha echoupal - Trained farmers (Sanchalak) manage prominently located IT enabled Choupals. Project started in UP, extended in 2006 to Maharashtra and Rajasthan Disha - Disha covers 47,000 Haats unregulated periodic markets at 1/100 of the conventional cost using unemployed youth in rural India Current CP Coverage in choupals / villages more than 4000 nos COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET OCT

20 CLOSER TO THE CONSUMER - ORAL HEALTH MONTH - BRIGHT SMILES BRIGHT FUTURES PROGRAM COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET OCT

21 360º Plan Media, Website PR support Muskurahatein DD National Free Dental Check-ups - In dental clinics - Factories - Housing Societies - Corporates On pack messages BSBF+ Dental Checkups Trade visibility and CCP Mobile Vans - Under privileged areas COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET OCT

22 Significantly Increased Scale and Touch points OHM '04 OHM '05 OHM '06 PDC's (Public Dental Check-ups) No. of cities towns No. of dentists 70 venues PDC's - New Touchpoints Societies 70 Corporate 170 BSBF/Schools Spread a Smile No. of towns cities planned Media Channel Hungama DD National COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET OCT

23 CLOSER TO THE PROFESSION COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET OCT

24 Closer to the Profession. Professional Oral Care Colgate BRMO Comp Colgate BUMO Comp Toothpaste 75% 5% 82% 6% Toothbrushes 54% 23% 62% 23% BRMO - Brand Recommended Most Often by Dentists BUMO - Brand Used Most Often by Dentists Source : Dentist Track 2005 COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET OCT

25 Efficiency & Effectiveness in Everything. Rationalization of Supply Chain VRS at Sewri, Mumbai ; 80 employees Divestment of Toothbrush Manufacturing Facility, Aurangabad Discontinuation of a Toothpaste Contract Manufacturer, Mumbai Acquired Land and commenced construction of state-of-the-art Toothpaste manufacturing facility at Baddi, HP Land - 36,000 m2, Building - 16,300 m Closure of Toilet Soap Manufacturing, Aurangabad Closure of Toothpaste Manufacturing in Nepal Commencement of Production at Baddi, HP. No of employees - 208; Installed Capacity - 24,000 tons VRS at Sewri, Mumbai ; 263 employees COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET OCT

26 FINANCIAL REVIEW COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET OCT

27 FINANCIAL STRATEGY Grow Topline Reduce Costs Invest in Brand Building / New Products Grow NPAT COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET OCT

28 Grow Topline 3500 (% = current year vs previous year) % 19.9% 15.1% % (Rs. MM) % 13.2% % Rs MM Jan-Mar 2004 Apr-Jun 2004 Jul-Sep 2004 Oct-Dec 2004 Jan-Mar 2005 Apr-Jun 2005 Jul-Sep 2005 Oct-Dec 2005 Jan-Mar 2006 Apr-Jun 2006 Jul-Sep 2006 COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET OCT

29 Grow NPAT 63.7% % % 29.4% (Rs. MM) % 10.0% 14.5% Jan-Mar 2004 Apr-Jun 2004 Jul-Sep 2004 Oct-Dec 2004 Jan-Mar 2005 Apr-Jun 2005 Jul-Sep 2005 Oct-Dec 2005 Jan-Mar 2006 Apr-Jun 2006 Jul-Sep All numbers adjusted to reflect Operating Results for COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET OCT

30 UNAUDITED FINANCIAL RESULTS OF QUARTER ENDED SEPTEMBER 30, 2006 (Rs Crores) Quarter Quarter Half Year Half Year Year Ended Ended Ended Ended ended Sept. 30,2006 Sept. 30,2005 Sept. 30,2006 Sept. 30,2005 March 31, 2006 (Audited) Total Revenue , Net Sales (Excl. Excise Duty) , Other Income Total Expenditure (Increase) / Decrease in Stock in Trade (4.06) (4.83) Raw and Packing Material Cost Purchase of Goods Staff Cost Voluntary Retirement Scheme Advertising & Sales Promotion Other Expenditure Interest Expense Depreciation, Amortisation and Impairment Profit before Tax Provision for Taxation -Current Tax Deferred Tax (16.26) 2.99 (15.98) 6.27 (2.58) -Fringe Benefit Tax Net Profit after Tax Paid-up Equity Share Capital (Face value:rupees 10 per share) Reserves excluding Revaluation Reserve Basic and Diluted EPS (Rs.) Aggregate of Non-promoter shareholding - Number of Shares 66,636,481 66,636,481 66,636,481 66,636,481 66,636,481 - Percentage of holding 49% 49% 49% 49% 49% COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET OCT

31 Operating Results Rs. Crores Quarter Half Year Pre Tax Net of Tax Pre Tax Net of Tax Reported Per Clause Increase (Y-o-Y) -62.8% -24.9% -21.8% 0.6% Add : VRS Cost Contractor Termination (post VRS) Sub-Total Less : Profit on Sale of Apartment Excess Provisions no longer required Prior year's tax provisions no longer required Profit Increase (Y-o-Y) 45.2% 63.7% 33.7% 47.1% COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET OCT

32 Net Sales 1, % 1, % 1,124 (Rs. Crores) % months COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET OCT

33 Costs (Excl. Advt. & Depre.) % 69.1% 753 (Rs. Crores) % % % months Cost % Sales - All numbers adjusted to reflect Operating Results for COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET OCT

34 Advertising (Rs. Crores) % % % % months Advertising +44.5% 97 % Sales +5.8% 18% 17% 16% 15% 14% 13% 12% 11% 10% - All numbers adjusted to reflect Operating Results for COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET OCT

35 EBITDA (Rs. Crores) % % % 15.5% % % months % 19% 17% 15% 13% 11% 9% 7% 5% EBITDA % Sales - All numbers adjusted to reflect Operating Results for COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET OCT

36 EBIT % (Rs. Crores) % 14.4% +2.2% % % +41.2% 89 15% 13% 11% 9% 7% months EBIT % Sales 5% - All numbers adjusted to reflect Operating Results for COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET OCT

37 Profit Before Tax % (Rs.Crores) % 18.5% % 16.7% 18.3% 15% % months PBT % Sales 10% - All numbers adjusted to reflect Operating results for COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET OCT

38 Income Tax (Rs. Crores) % 70 36% % % 2 40% 35% 30% 25% 20% 15% 10% 5% months % Curr Tax Def Tax FBT Tax Rate - All numbers adjusted to reflect Operating Results for COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET OCT

39 Profit After Tax (Rs. Crores) % 11.7% % 12.2% % months PAT +21.4% 59 % Sales +47.1% 15.0% 13.0% 11.0% 9.0% 7.0% 5.0% - All numbers adjusted to reflect Operating Results for COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET OCT

40 EPS, DPS & Payout (Rs.) % % 85% months EPS DPS Payout 100% 95% 90% 85% 80% 75% 70% 65% 60% 55% 50% - All numbers adjusted to reflect Operating results for COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET OCT

41 Net Working Capital 0 0.0% (Rs. Crores) % -14.2% % months NWC % Sales -5.0% -10.0% -15.0% -20.0% COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET OCT

42 Cash + Bank + Investments (Rs. Crores) months COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET OCT

43 Average Yield 5.1% 4.6% 4.1% 4.2% 4.6% BSE Sensex Average - 1.4% 3.6% 3.1% 2.6% 2.7% 2.1% 1.6% 2.0% 1.1% 0.6% 0.1% COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET OCT

44 Average PE Industry Average COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET OCT

45 Thank You COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET OCT