Sanford Bernstein 30th Annual Strategic Decisions Conference May 29, 2014

Transcription

1 Sanford Bernstein 30th Annual Strategic Decisions Conference May 29, 2014

2 May 2014 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, as applicable, exclude the impact of the following: gain on sales of non-core product lines, charges for competition law matters in France, costs associated with various business realignment and other cost-saving initiatives, costs related to the sale of land in Mexico, charges related to the effective devaluation as a result of changes to Venezuela s foreign exchange system in 2014, charges related to the devaluation in Venezuela in 2013, restructuring charges and certain other items. We may also refer to organic sales growth, which is Net sales growth excluding the impact of foreign exchange, acquisitions and divestments. 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 For Investors section of our web site at Our presentation and the related webcast may also contain forward-looking statements. Such statements may relate, for example, to sales or volume growth, organic sales growth, profit or profit margin growth, earnings growth, financial goals, the impact of currency devaluations, exchange controls, price controls or labor unrest, including in Venezuela, cost-reduction plans including the 2012 Restructuring Program, tax rates, new product introductions or commercial investment levels. 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 except as required by law. 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. Investors should consult the Company s filings with the Securities and Exchange Commission (including the information set forth under the caption Risk Factors in the Company s Annual Report on Form 10-K for the year ended December 31, 2013) for information about certain factors that could cause such differences. Copies of these filings may be obtained upon request from the Company s Investor Relations Department or on the Company s web site at

3 Today Recent Results Growing by Strengthening Our Fundamentals

4 Sustained growth in 2013 Continuing into 2014

5 Topline Growth CAGR CAGR Q Volume (excluding divestitures) +5.8% +3.7% +3.5% +5.0% +5.0% Organic Growth +5.7% +6.2% +6.0% +6.0% +6.5%

6 Net Sales ($ Billions) '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 Compound Growth +4.7%

7 Gross Margin 60% 58.8% 59.1% 57.6% 58.3% 58.8% 58.6% 52.1% 52.7% 53.4% 54.6% 55.0% 55.2% 55.3% 56.4% 57.3% 56.7% 46.8% 47.4% 47.0% 47.7% 49.3% 50.6% 35% '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 Q , exclude restructuring charges and/or other items

8 Operating Profit ($MM) $3,615 $3,796 $3,858 $4,024 $4,140 $3,265 $2,959 $2,567 $910 $2,211 $2,239 $2,339 $2,054 $1,773 $1,875 $1,597 $1,451 $1,315 $1,185 $1,011 $1,067 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 Compound Growth +7.9% , exclude restructuring charges and/or other items

9 After-Tax Return On Capital 40% 35% 30% 25% 20% 15% 10% 5% 16.0% 15.8% 8.4% 28.4% Colgate 18.7% Peer Group 8.4% S&P 500 0% '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 Q1

10 Market shares are strong

11 Worldwide Toothpaste Shares Colgate Comp. 1 Comp. 2 Comp. 3 0 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 YTD

12 Worldwide Toothpaste Shares Colgate Comp. 1 Comp. 2 Comp. 3 0 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 YTD '14 Apr.

13 Worldwide Manual Toothbrush Shares Colgate Comp. 15 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 YTD

14 Worldwide Mouthwash Shares Comp Colgate Comp '09 '10 '11 '12 '13 '14 YTD Comp. 3

15 Leading professional endorsement

16 Toothpaste Recommended Most Often by Dentists Worldwide % 18% 9% 1% Colgate Comp. 1 Comp. 2 Comp. 3 Source: Annual Dentist Tracking Study

17 Shareholder value is increasing

18 Total Return 20 Years 12/31/93 12/31/ % +750% +484% S&P Peer Group Colgate

19 Total Return 15 Years +276% +169% +99% S&P Peer Group Colgate

20 Total Return 10 Years +227% +104% +133% S&P Peer Group Colgate

21 Total Return 5 Years % % +72.9% S&P Peer Group Colgate

22 Total Return % +27.6% +21.8% S&P Peer Group Colgate

23 Total Return 2014 YTD 5/28/ % +2.7% +2.5% S&P Peer Group Colgate

24 Today Recent Results Growing by Strengthening Our Fundamentals

25 Strengthening Our Fundamentals with a Proven Strategy

26 Strategic Initiatives Engaging to Build Our Brands Innovation for Growth Effectiveness and Efficiency Leading to Win

27 Executing our strategy with focus and creativity

28 Executing Our Strategy Building on our strengths Using technology in smart and creative ways Finding innovative solutions to business challenges

29 Strategic Initiatives Engaging to Build Our Brands Innovation for Growth Effectiveness and Efficiency Leading to Win

30 Engaging with Customers Working with large retailers effectively and efficiently

31 Example: Field Force Automation France Automating in-store activities of our sales force

32 Video Summation: The effectiveness and efficiency of field-force automation, allowing employees more time to spend with our customers and achieve better in-store results, is detailed in an example from C-P France

33 Engaging with Customers Working with large retailers effectively and efficiently Reaching Mom & Pop stores with inventive, customized programs Addressing unique challenges of store owners while driving distribution

34 Video Summation: A Customer Development team in C-P Mexico created a unique program to reach the Mom and Pop store owners who account for nearly 700,000 points of sale

35 Market Share Results Mexico Indirect Trade Toothpaste 93 Toothbrush 57

36 Engaging with the Profession With the power of our science With the power of technology

37 Example: Virtual Detailing Brazil Patricia Bella Costa, Professional Relations Approximately 80 Oral Care Consultants visit 65,000 dentists, equivalent to 35% percent of total dental professionals Virtual detailing can reach dentists across the country without travel time or expense Increased the number of visits per day from 12 to 18 per oral care consultant

38 Video Summation: Mobile tools allow detailers to supplement face-to-face visits with the Profession in Brazil

39 Engaging with Consumers Learning what matters to them

40 Example: Mobile Technology to Gain Insights U.S. Traditional method of gathering data was dependent on consumers memories Mobile insights provide more accurate and detailed responses

41 Video Summation: A member of the U.S. Technology Insights team outlines the importance of mobile technology in capturing consumers insights and observations as they test our products

42 Engaging with Consumers Learning what matters to them Giving them what matters most Proven efficacy Value at all price points

43 Example: Magic Price Guatemala Affordable and accessible way to buy into the promise of Mother s Love and experience all the benefits of latest innovation

44 Video Summation: The introduction of small-size sachets gives lower-income consumers in Guatemala an affordable and accessible way to experience all the benefits of our new added-value Suavitel Complete bundle

45 Strategic Initiatives Engaging to Build Our Brands Innovation for Growth Effectiveness and Efficiency Leading to Win

46 Innovation for Growth Our approach closely links our strong consumer insights with science-based innovation

47 Global Technology

48 Video Summation: Colgate s approach to global innovation and our strong scientific partnerships illustrate our commitment to consumers

49 Global Technology Local Innovation

50 Video Summation: Our Chief Technology Officer details the benefits of having Consumer Innovation and R&D working hand-in-hand to develop local innovations around the world

51 Innovation for Growth Innovative products

52 Colgate Maximum Cavity Protection plus Sugar Acid Neutralizer

53 5.4 billion people still suffer from tooth decay

54 12 studies conducted over 8 years with more than 14,000 children and adults all over the world demonstrated the superiority of Sugar Acid Neutralizer: Reduced early tooth decay by half 20% fewer cavities than fluoride alone

55 Colgate Max White One Optic Instantly visible whiter teeth *The formula contains clinically proven optic brighteners Brushing activates them to generate a blue foam that provides a temporary effect Leaving your teeth looking whiter right from the first brushing

56 Colgate Active Salt Healthy White Helps to remove yellowness. With Lemon and Salt.

57 Colgate Total Advanced White Advanced stain removal for a beautiful smile

58 Colgate 360 Total Advanced Floss-Tip Floss-Tip bristles for 4x deeper reach *Below the gumline compared to an ordinary flat trip toothbrush

59 Colgate Slim Soft Charcoal in China Charcoal-infused, tapered bristles for deep, yet gentle cleaning

60 Colgate Natural Extracts High-density bristles infused with White Pearl or Pine Tree Salt for a superior clean

61 Optic White Whitening Pen

62 Optic White Whitening Pen Toothbrush Whitening Pen

63 How It Works Brush Whiten Go

64 Manual Toothbrush Market Shares U.S Colgate Comp '08 '09 '10 '11 '12 '13 '14 YTD

65 Colgate Plax Altai Herbs Long-lasting fresh breath with extracts inspired from Altai Region

66 Colgate Plax Deep Clean Cleans hard to reach places

67 Palmolive Gourmet Spa Tempting aromas, wonderfully soft textures

68 Palmolive Naturals With Macadamia Oil. Helps nourish the skin.

69 Sanex Dermo Protector Deep Moisturization with ph Balance

70 Speed Stick & Lady Speed Stick Cool The Ultimate Freshness Dimension

71 Suavitel Complete Faster rinsing, drying and ironing

72 Palmolive Dish + Sink Cleans dishes, helps eliminate odors, freshens air at sink

73 Hill s Science Diet Relaunch Natural ingredients, high quality protein first ingredient, winning taste

74 Ideal Balance Natural ingredients perfectly balanced

75 Hill s Prescription Diet Metabolic Clinically proven weight loss in the real world

76 Strategic Initiatives Engaging to Build Our Brands Innovation for Growth Effectiveness and Efficiency Leading to Win

77 Generating savings for growth and profitability

78 Global Growth and Efficiency Program Enhance capabilities by: Combining country operations to strengthen ability to win on the ground

79 Example: Europe 33 Countries

80 Example: Europe Six Colgate Regions

81 Global Growth and Efficiency Program Enhance capabilities by: Combining country operations to strengthen ability to win on the ground Extending Colgate Business Services and streamlining global functions

82 Video Summation: Two Colgate leaders in Warsaw and Mumbai share the progress and benefits of our Colgate Business Services Centers in those locations

83 Global Growth and Efficiency Program Enhance capabilities by: Combining country operations to strengthen ability to win on the ground Extending Colgate Business Services and streamlining global functions Continuing to optimize Global Supply Chain and facilities

84 Global Growth and Efficiency Program Target results Savings in the range of $ MM after-tax annually by the fourth year of the program Rate of return >30% Payback averaging 3 4 years

85 Reinvestment Priorities Enabling technology and analytics Digital engagement Emerging Markets Innovation and brand building

86 Strategic Initiatives Engaging to Build Our Brands Innovation for Growth Effectiveness and Efficiency Leading to Win

87 Guided by Our Values: Caring Global Teamwork Continuous Improvement

88 Proven strategy Strong culture Innovation for the future

89 Growing by Strengthening Our Fundamentals

90