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

Welcome to Colgate-Palmolive India COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET MAY 2007 1

Agenda Business Update Roger Calmeyer Financial Performance 06-07 Moses Elias Reduction of Capital Moses Elias Questions & Answers COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET MAY 2007 2

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 MAY 2007 3

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 MAY 2007 4

FMCG sector continues to be buoyant 80,000 71294 70,000 Sales Rs Crores 60,000 50,000 46809 49438 50436 54221 58561 Q1 07 - Rs Crs 19,595 40,000 30,000 2001 2002 2003 2004 2005 2006 Source: AC Nielsen Retail Measurement Services FMCG Sales COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET MAY 2007 5

Non-food FMCG Confirms Strong Growth Growth in Non-food FMCG sales % Growth vs. year ago 25% 20% 15% 10% 5% 0% -5% 20% 13% 5% 7% 0% 2002 2003 2004 2005 2006 Q1 2007-1% Source: AC Nielsen Retail Measurement Services COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET MAY 2007 6

Growth in CP Categories % 25 24 23 22 21 20 19 18 17 16 15 14 13 12 11 10 Value Growth Rate (2006 Vs 2005) 20.7 15.6 13.6 Toothpaste Toothpowder Toothbrush Source: AC Nielsen Retail Measurement Services COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET MAY 2007 7

Growth in CP Categories Q1 2007 Value Growth Rate ( Q1 2007 Vs Q1 2006) 14 12 10 12.2 10.0 9.0 % 8 6 4 2 0 Toothpaste Toothpowder Toothbrush Source: AC Nielsen Retail Measurement Services COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET MAY 2007 8

Indian Oral Care market offers significant opportunities to drive penetration Category Penetration 100 75 50 Toothpaste Toothpowder Dentifrice 70 71 72 73 74 76 44 44 45 46 49 51 25 36 36 35 35 35 35 0 2001 2002 2003 2004 2005 2006 Source: Indian Readership Survey Dentifrice COLGATE-PALMOLIVE = Toothpaste or toothpowder (INDIA) LIMITED ANALYST MEET MAY 2007 9

Opportunity to increase per capita consumption by increasing the frequency of brushing teeth China Malaysia India - Urban Per Capita Consumption (Grams/HH/Month) 219 285 110 92 %age - twice a day brushing 61% 86% 7% COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET MAY 2007 10 Source: AC Nielsen Retail Measurement Services & Indian Readership Survey

CP Sales per Capita (Rs) 12.00 10.00 8.6 9.0 9.0 10.0 11.0 8.00 6.00 4.00 3.0 2.00 0.00 2002 2003 2004 2005 2006 Q1 2007 COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET MAY 2007 11

Strategic Position Category Value Share Value Share Ranking Relative Share Mar 06 Mar 07 Toothpaste 47.3 48.1 # 1 1.6 Toothpowder 44.4 43.8 # 1 1.4 Toothbrushes 32.9 34.7 # 1 2.1 Shower Gel* 40.0 36.4 # 2 0.6 Liquid Hand Soap* 3.9 7.1 # 4 0.1 Shaving Cream* (Aug 06) 11.0 # 3 0.6 Cold Cream* (Aug 06) 4.2 # 4 0.1 *urban only * Urban only Source: AC Nielsen Retail Measurement Services, Year 2006/2007 COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET MAY 2007 12

Toothpaste Volume Growth 5,500 5,000 4,500 4,000 3,500 Total Revenue 3,000 3 per. M ov. Avg. (Revenue) 2,500 M ar-02 M ar-03 M ar-04 Mar-05 M ar-06 M ar-07 COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET MAY 2007 13

Billings & Volume Movement 1,500 75,000 Rs. Crores 1,400 1,300 1,200 1,100 1,000 900 800 700 70,000 65,000 60,000 55,000 50,000 45,000 Tons 600 FY 02-03 FY 03-04 FY 04-05 FY 05-06 FY 06-07 40,000 Billings Volumes COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET MAY 2007 14

BUSINESS MODEL BEST PLACE TO WORK Closer to DRIVING - Customer GROWTH - Consumer - Profession e-choupal & Disha Oral Health Month Best Smiles Best Futures BRMO & BUMO INNOVATION EVERYWHERE Consumer Innovation Active Salt Advance Whitening Centre Max Fresh, 360 TB, Pokeman TB Whitening TB, Palmolive SPA Shower Gels FUNDING GROWTH Efficiency & Effectiveness in Everything Supply Chain Rationalisation Baddi COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET MAY 2007 15

Professional Oral Care Toothpaste 2005 2006 BRMO % Colgate 75 77 Competitor 5 3 BUMO % Colgate 82 86 Competitor 6 5 BRMO - Brand Recommended Most Often by Dentists BUMO - Brand Used Most Often by Dentists Source : Dentist Track 2005-2006 COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET MAY 2007 16

Professional Oral Care Toothbrush 2005 2006 BRMO % Colgate 54 61 Competitor 23 17 BUMO % Colgate 62 66 Competitor 23 21 BRMO - Brand Recommended Most Often by Dentists BUMO - Brand Used Most Often by Dentists Source : Dentist Track 2005-2006 COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET MAY 2007 17

New Products COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET MAY 2007 18

New Products COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET MAY 2007 19

Business Update Market Share Volume Growth in major categories Toothpaste 48.1% to 48.9% (Mar06/Mar07) Toothbrush 33.6% to 35.4% (Mar06/Mar07) Strong Volume Growth & higher prices has lead to Topline growth of 15% in 2006-07 Expansion of Baddi capacity from 24,000 MT to 40,000 MT Incessant Growth into Modern Trade avenues Continuous introduction of new products e.g. Colgate Maxfresh Citrus Blast, Palmolive Spa Body Gels, 360, Advanced Whitening, Pokeman Toothbrushes Stagnant Toothpowder market due to LPP COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET MAY 2007 20

FINANCIAL REVIEW COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET MAY 2007 21

FINANCIAL STRATEGY Grow Topline Reduce Costs Invest in Brand Building / New Products Grow NPAT COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET MAY 2007 22

AUDITED FINANCIAL RESULTS FOR THE YEAR ENDED MARCH 31, 2007 (Rs Crores) 9 Months Quarter Quarter Year Year Ended Ended Ended ended ended 31-Dec-06 31-Mar-07 31-Mar-06 31-Mar-07 31-Mar-06 (Audited) (Audited) Total Revenue 1,001.54 360.60 313.58 1,362.14 1,170.28 - Net Sales (Excl. Excise Duty) 951.89 343.25 302.06 1,295.14 1,124.19 - Other Income 49.65 17.35 11.52 67.00 46.09 Total Expenditure 855.36 288.93 262.93 1,144.29 950.38 - (Increase) / Decrease in Stock in Trade (5.69) 0.13 (1.96) (5.56) 4.18 - Raw and Packing Material Cost 180.13 59.14 64.85 239.27 206.99 - Purchase of Goods 248.04 94.61 71.13 342.65 294.19 - Staff Cost 86.82 25.09 22.54 111.91 96.88 - Voluntary Retirement Scheme 58.80 (0.78) - 58.02 - - Advertising & Sales Promotion 143.57 63.93 59.63 207.50 197.81 - Other Expenditure 143.69 46.81 46.74 190.50 150.33 Interest Expense 0.73 0.25 0.18 0.98 0.59 Depreciation, Amortisation and Impairment 11.61 3.65 3.74 15.26 31.43 Profit before Tax 133.84 67.77 46.73 201.61 187.88 Provision for Taxation -Current Tax 40.04 13.94 15.61 53.98 46.86 -Deferred Tax (18.93) 2.19 (7.35) (16.74) (2.58) -Fringe Benefit Tax 3.15 1.05 1.46 4.20 6.00 Net Profit after Tax 109.58 50.59 37.01 160.17 137.60 Paid-up Equity Share Capital 136.00 136.00 136.00 136.00 136.00 (Face value:rupees 10 per share) Reserves excluding Revaluation Reserve 144.53 135.08 Basic and Diluted EPS (Rs.) 8.06 3.72 2.72 11.78 10.12 Dividend (Rs.Per share of face value Rs.10.00) First Interim Dividend 4.25 4.25 2.75 Second Interim Dividend 3.25 3.25 3.00 Third Interim Dividend - - 1.75-1.75 Special Dividend (Proposed) - 2.00-2.00 - Total 4.25 5.25 1.75 9.50 7.50 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 MAY 2007 23

Operating Results Rs. Crores Full Year Pre Tax Net of Tax Reported Per Clause 41 201.61 160.17 Increase (Y-o-Y) 7.3% 16.4% Add : VRS Cost 58.02 38.49 Contractor Termination (post VRS) 1.68 1.11 Sub-Total 261.31 199.77 Less : Profit on Sale of Apartment 6.00 3.98 Excess Provisions no longer required 8.50 5.64 Prior year's tax provisions no longer required 0.00 4.79 Profit 246.81 185.37 Increase (Y-o-Y) 24.3% 25.9% COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET MAY 2007 24

Grow Topline Quarterly Sales Growth 3,750 (% = current year vs previous year) 3,500 13.6% 3,250 25.8% 19.9% 15.1% 12.8% (Rs. MM) 3,000 2,750 6.4% 13.2% 21.2% 2,500 2,250 2,000 Apr-Jun 2005 Jul-Sep 2005 Oct-Dec 2005 Jan-Mar 2006 Apr-Jun 2006 Jul-Sep 2006 Oct-Dec 2006 Jan-Mar 2007 COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET MAY 2007 25

Net Sales 1,400 1,300 1,200 1,100 1,295 +15.2% (Rs. Crores) 1,000 900 800 939 964 +2.7% 1,124 +16.6% 700 600 500 2003-04 2004-05 2005-06 2006-07 COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET MAY 2007 26

Costs (Excl. Advt. & Depre.) (Rs. Crores) 1,000 900 800 700 600 500 400 300 200 100 0 69.1% 68.7% 68.0% 66.9% 881 645 666 752 2003-04 2004-05 2005-06 2006-07 Cost % Sales - All numbers adjusted to reflect Operating results for 2006-07 & 2005-06 COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET MAY 2007 27

Advertising (Rs. Crores) 215 200 185 170 155 140 125 110 95 80 65 50 17.6% 15.7% 198 212 16.4% 14.2% 148 137 2003-04 2004-05 2005-06 2006-07 Advertising % Sales 18% 17% 16% 15% 14% 13% 12% 11% 10% - All numbers adjusted to reflect Operating results for 2006-07 & 2005-06 COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET MAY 2007 28

EBITDA (Rs. Crores) 225 210 195 180 165 150 135 120 105 90 75 60 45 30 16.7% 15.6% 15.5% +10.2% 146 161 +8.0% +16.0% 15.6% 174 202 2003-04 2004-05 2005-06 2006-07 19% 17% 15% 13% 11% 9% 7% 5% EBITDA - All numbers adjusted to reflect Operating results for 2006-07 & 2005-06 % Sales COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET MAY 2007 29

EBIT 210 190 170 14.4% 14.2% 14.4% 17.0% 15.0% (Rs. Crores) 150 130 110 122 13.0% 139 +13.8% 159 187 +14.7% +17.2% 13.0% 11.0% 90 9.0% 70 50 7.0% 30 2003-04 2004-05 2005-06 2006-07 EBIT % Sales 5.0% - All numbers adjusted to reflect Operating results for 2006-07 & 2005-06 COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET MAY 2007 30

Profit Before Tax (Rs.Crores) 260 240 220 200 180 160 140 120 100 80 60 16.1% 151 18.5% 178 +17.6% 17.7% 199 19.1% 247 2003-04 2004-05 2005-06 2006-07 PBT +11.5% % Sales +24.3% 20% 15% 10% - All numbers adjusted to reflect Operating results for 2006-07 & 2005-06 COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET MAY 2007 31

Income Tax 70 36.4% 40.0% (Rs. Crores) 60 50 40 30 20 43 28.7% 65 25.9% 51 62 24.9% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 10 5.0% 0 2003-04 2004-05 2005-06 2006-07 0.0% Tax Tax Rate - All numbers adjusted to reflect Operating results for 2006-07 & 2005-06 COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET MAY 2007 32

Profit After Tax 205 14.3% 15.0% (Rs. Crores) 185 165 145 125 105 85 65 11.5% 108 11.7% +4.9% 113 13.1% +29.9% 147 137 +21.4% +26.0% 185 160 +16.4% 13.0% 11.0% 9.0% 7.0% 45 2003-04 2004-05 2005-06 2006-07 PAT % Sales 5.0% -All numbers adjusted to reflect Operating Results for 2006-07 & 2005-06 -Figures in white represent reported numbers COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET MAY 2007 33

EPS, DPS & Payout (Rs.) 14.0 12.0 10.0 8.0 6.0 7.9 85% 8.3 95% 7.0 10.1 85% 7.5 11.8 92% 9.5 100% 95% 90% 85% 80% 75% 70% 65% 4.0 6.0 60% 55% 2.0 2003-04 2004-05 2005-06 2006-07 EPS DPS Payout 50% COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET MAY 2007 34

Net Working Capital 0 0.0% -50-5.0% (Rs. Crores) -100-150 -133-123 -12.8% -201-10.0% -200-14.2% -226-15.0% -250-17.8% -17.5% 2003-04 2004-05 2005-06 2006-07 NWC % Sales -20.0% COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET MAY 2007 35

Fixed Assets 200 175 9 24 150 (Rs. Crores) 125 100 4 71 160 168 75 50 90 80 2003-04 2004-05 2005-06 2006-07 FA Cap WIP COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET MAY 2007 36

Cash Gen. from Operations 230 210 190 209 170 185 (Rs. Crores) 150 130 110 90 70 50 75 122 2003-04 2004-05 2005-06 2006-07 - All numbers adjusted to reflect Operating results for 2006-07, 2005-06 & 2004-05 COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET MAY 2007 37

Treasury Portfolio 320 310 300 309 306 313 (Rs. Crores) 290 280 270 260 250 271 2003-04 2004-05 2005-06 2006-07 COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET MAY 2007 38

Return on Capital & Equity 138.0% 136.3% 118.0% 98.0% 78.0% 79.4% 83.3% 65.8% 108.2% 70.7% 58.0% 41.9% 53.7% 56.5% 67.2% 38.0% 41.6% 45.9% 18.0% 2003-04 2004-05 2005-06 2006-07 ROE ROCE RONW - All numbers adjusted to reflect Operating results for 2006-07 & 2005-06 COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET MAY 2007 39

Average Yield 5.1% 4.6% 4.1% 3.6% SP - 130 4.6% SP - 182 3.8% BSE Sensex - 1.3% 3.1% 2.6% 2.1% 1.6% 1.1% SP - 432 1.7% SP - 332 2.9% 0.6% 0.1% SP - Share Price as on 31st March 2003-04 2004-05 2005-06 2006-07 COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET MAY 2007 40

Average PE 45.0 40.0 42.4 35.0 30.0 25.0 20.0 15.0 16.4 21.8 Industry PE - 19.8 28.3 10.0 5.0 0.0 2003-04 2004-05 2005-06 2006-07 COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET MAY 2007 41

Proposal for Reduction of Capital COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET MAY 2007 42

BACKGROUND COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET MAY 2007 43

Background Share Capital Current Equity Share Capital 13.6 Cr. Shares of Rs. 10 each (Par Value) = Rs. 136.0 Cr. Share Capital history: Shares in Crore Rs Cr. 1978 Original Equity 0.2 2.0 Bonus 11.0 109.9 Rights Issue 1.2 12.3 Preferential Issue 1.2 11.8 13.6 136.0 COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET MAY 2007 44

Background (contd.) Share Capital Inflated by successive Bonus Issues 1982-1994 In excess of the Company s operational needs Represents Shareholder funds that are locked-up with the Company Reserves and Surplus are at 1:1 Ratio to Share Capital for the past 2 years COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET MAY 2007 45

Background (contd.) Share Capital + Reserves (@ March 31) 2004 2005 2006 2007 (Rs.Cr.) Share Capital 136.0 136.0 136.0 136.0 Reserves & Surplus -- General Reserves 68.1 79.4 93.2 106.6 -- Share Premium 12.8 12.8 12.8 12.8 -- P/L Account 27.1 21.3 28.8 24.9 -- Captial Investment Subsidy 0.3 0.3 0.3 0.3 Total Reserves & Surplus 108.3 113.8 135.1 144.6 Total Shareholder Funds 244.3 249.8 271.1 280.6 Therefore: - A Share Capital that is inflated and in excess of requirements; - A strong and increasing position in "Reserves and Surplus". Challenge : Address the fundamental issue of the inflated Share Capital, in excess of requirements. COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET MAY 2007 46

Background (contd.) A history of strong Profitability and high Dividend Pay-out 2004 2005 2006 2007 (Rs. Cr.) Net Profit After Tax 108.0 113.3 137.6 160.2 -- % Increase 21.8 4.9 21.5 16.4 Dividends Declared 81.6 95.2 102.0 129.2 -- % Increase +41.2 +16.7 +7.1 +26.7 -- % Dividend / Share 60.0 70.0 75.0 95.0 Dividend Distribution Tax 10.5 12.6 14.3 18.9 - Rs. 92.1 107.8 116.3 148.1 - % Increase +50.2 +17.1 +7.8 +27.4 Dividend Pay-out (%) 94.7 105.8 93.9 102.8 COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET MAY 2007 47

Background (contd.) A track record of Reinvestment and efficient Working Capital Management 2004 2005 2006 2007 -- Capital Expenditure 8.5 80.5 49.9 38.4 -- Voluntary Retirement Schemes -- Cash Pay-outs - 6.4-54.5 -- Net Working Capital -133.2-123.2-200.7-226.0 -- Cash Generation from Operations 75.1 122.5 184.6 208.7 COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET MAY 2007 48

Background (contd.) Treasury Portfolio After increasing the Dividend Payout and Reinvesting in the Business a large and growing Treasury Portfolio, also in excess of business requirements (Rs.Cr.) 2004 2005 2006 2007 Investments in Bonds/ Govt Securities 115.9 160.8 148.3 133.3 Inter-corporate Deposits 128.0 53.8 69.3 68.2 Cash and Bank Deposits (interest bearing) 65.4 56.1 88.0 111.7 Total Treasury Portfolio 309.3 270.7 305.6 313.2 Challenge: Identify an efficient and effective use for the shareholder funds, represented by Excess Cash. COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET MAY 2007 49

OBJECTIVES COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET MAY 2007 50

Objectives Identify a solution to the fundamental issue of the inflated Share Capital and Right-Size the Share Capital Find an efficient and effective vehicle for returning the Excess Cash (in excess of the business requirements) to the Shareholders COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET MAY 2007 51

THE PROPOSAL COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET MAY 2007 52

The Proposal Effect a Reduction of Capital under Section 100 of the Companies Act reduce the par value of shares from Rs. 10 to Re. 1; Number of shares will remain unchanged @ 13.6 Cr; Share Capital will reduce from Rs. 136 Cr. to Rs. 13.6 Cr; pay-back Rs.9/Share to each shareholder (Rs. 122.4 Cr. Total); pay-back to shareholders is construed as a Deemed Dividend under Section 2 (22) of the Income Tax Act; Company will pay the Dividend Distribution Tax @ 17% = Rs.20.8 Cr; receipt of Rs.9/Share will be tax free in the hands of the Shareholders. Use Excess Treasury Cash to pay-out the Shareholders: Total (Rs. Cr.) Pay-back of Rs. 9/Sh. of par value 122.4 Dividend Tax @ 17% on both the above 20.8 Total Shareholder Cash utilized 143.2 The proposal requires Shareholders approval at the AGM July 27, 2007. The proposal requires confirmation by the High Court. COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET MAY 2007 53

BENEFITS OF THE PROPOSAL COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET MAY 2007 54

Benefits of the Proposal 1. Return of Rs. 9/ Share uniformly to all shareholders 2. Return of Rs.9/ Share is not liable to tax in the hands of the Shareholder 3. Accepts that the Share Capital and Surplus Cash are in excess of the Company s operational needs. 4. Recognizes that the Excess Share Capital and Cash belong to the shareholders, and therefore returns it to them. 5. Recognizes that after a. Increasing high dividend pay-outs -- average 100% for 3 years; b. Significant investment in Capital Expenditures Rs. 168.8 Cr. in 3 years; and c. Rationalization of Supply Chain Rs. 60.4 Cr. in 3 years The Company has a large and growing Treasury Portfolio, in excess of operational needs. COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET MAY 2007 55

Benefits of the Proposal (contd) 6 Recognizes that managing a Treasury Portfolio is not a core business objective of the company and that the shareholders can earn a higher return than the average 6%. 7. Recognizes that the Company s Balance Sheet and Shareholder Net Worth post the Reduction of Capital will still support borrowings, if needed, for potential Acquisitions, Business Expansion, etc. 8. Does not alter the shareholding pattern and the total number of shares outstanding remain the same. 9. Has significant positive impacts on investor ratios, i.e. ROE, RONW, Dividend Yield, etc. 10. Operating results are unaffected by the Proposal (except for slight reduction in Interest income) COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET MAY 2007 56

PRE & POST IMPLEMENTATION SCENARIO (Assuming Reduction of Capital had been effected at March 31, 2007) COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET MAY 2007 57

Share Capital + Reserves (Rs.Cr.) 2004 2005 2006 2007 2007 (Pre) (Post) Share Capital 136.0 136.0 136.0 136.0 13.6 Reserves & Surplus -- General Reserves 68.1 79.4 93.2 106.6 106.6 -- Share Premium 12.8 12.8 12.8 12.8 12.8 -- P/L Account 27.1 21.3 28.8 24.9 4.1 -- Captial Investment Subsidy 0.3 0.3 0.3 0.3 0.3 Total Reserves & Surplus 108.3 113.8 135.1 144.6 123.8 Total Shareholder Funds 244.3 249.8 271.1 280.6 137.4 COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET MAY 2007 58

Treasury Portfolio (Rs.Cr.) 2004 2005 2006 2007 2007 (Pre) (Post) -- Investments in Bonds / Govt Securities 115.9 160.8 148.3 133.3 133.3 -- Inter-corporate Deposits 128 53.8 69.3 68.2 15.0 -- Cash and Bank Deposits (interest bearing) 65.4 56.1 88.0 111.7 21.7 Total Treasury Portfolio 309.3 270.7 305.6 313.2 170.0 COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET MAY 2007 59

Financial Ratios (Rs. Cr.) 2004 2005 2006 2007 2007 (Pre) (Post) Net Worth Share Capital 136.0 136.0 136.0 136.0 13.6 Reserves and Surplus 108.3 113.8 135.1 144.5 123.8 244.3 249.8 271.1 280.5 137.4 Capital Employed Net Worth 244.3 249.8 271.1 280.5 137.4 Debt 2.2 4.0 4.4 4.3 4.3 246.5 253.8 275.5 284.8 141.7 # of Shares (Crores) 13.6 13.6 13.6 13.6 13.6 NPAT 108.0 113.3 137.6 160.2 160.2 ROE (%) 79.4 83.3 101.2 117.8 214.1 RONW (%) 41.6 45.9 52.8 58.1 78.4 ROCE (%) 41.9 53.7 61.5 61.1 76.8 EPS ( Annualized) 7.9 8.3 10.1 11.8 11.8 DPS 6.0 7.0 7.5 9.5 18.5 Dividend Yield % 4.6 3.8 1.7 2.9 5.6 Book Value /Share 18.0 18.4 19.9 20.6 10.1 Price / Book Value (X) 7.2 9.9 21.7 16.1 32.8 PE (X) 16.4 21.8 42.4 28.3 28.3 COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET MAY 2007 60

CONCLUSION COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET MAY 2007 61

Conclusion A simple yet effective solution to the Right Sizing of the inflated Share Capital, which is in excess of Company s needs; A simple and efficient vehicle for returning Excess cash uniformly to all Shareholders i.e. Shareholders cash which is in excess of Company s needs; Delivers significant Shareholder/ Investor benefits; Does not negatively impact Company s ongoing operations; the Company continues with a healthy and strong Balance Sheet. COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET MAY 2007 62

Shareholder Returns Year Shares Value (LC) 1978 IPO - 250 6,250 1994 Rights - 1,280 25,600 2004* Holdings - 14,080 4,844,928 * as on April 30, 2007 Dividend Received 1,187,499 Dividend + Deemed Dividend @ Rs.9/Share 1,314,219 Compounded return of 28% since the IPO COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET MAY 2007 63

COLGATE-PALMOLIVE (INDIA) LIMITED ANALYST MEET MAY 2007 64