Company Colgate-Palmolive

Ticker CL
Year End 12/31/2013
Analyst IB Institute

1 2011 2012
Income Statement: Historical

Net sales 16,734 17,085

Cost of sales 7,144 7,153
Cost of Sales Pro Forma 7,144 7,151
Gross profit 9,590 9,934
SG&A Expense 5,758 5,930
SG&A Expense ProForma 5,636 5,804
Stock Based Compenation 122 120
Other (income) expense, net -9 121
Othe Pro Forma -31 97
Amortization 28 31
Operating profit 3,835 3,882
Interest (income) expense, net 52 15
Income before income taxes 3,783 3,867
Provision for income taxes 1,235 1,243
Equity Income From Assoc 6 7
Net income including Min Int 2,554 2,631
Less: Min Int 123 159
Net income Attri To Common Equity 2,431 2,472

Commen Dividend 1111 1168

Minority Dividend 92 109

Retained Earning 1,320 1,304

EBIT 3,835 3,882

Dep 393 394
Amort 28 31
EBITDA 4,256 4,307
 Basic EPS 2.49 2.60
Diluted EPS 2.47 2.57

Basic Weighted Avg Shares Outstanding 976.7 952.1

Dilutions 7.4 8.1
Diluted Weighted Avg Shares Outstanding 984.1 960.2

2 Historical Analysis: 2011 2012

Sales Growth Rate 2%

Cost of Sales as a % of Sales 43% 42%
SG&A as a % of Sales 34% 34%
Others as % of Sales 0% 1%
SBC as a % of Sales 1% 1%

Tax Rate 33% 32%

Equity Income Growth Rate 17%

Minority Interest Growth Rate 29%

Dividend Payout Ratio 46% 47%

Minority Dividend as a % of Minority Interest 75% 69%

3 2011 2012
Balance Sheet: Histori

Current Assets
Cash and cash equivalents 884
Marketbale Securities 116
Receivables 1,668
Inventories 1,365
Other current assets 523
Property, plant and equipment, net 3,842
Goodwill, net 2,500
Other intangible assets, net 1,499
Deferred income taxes 92
Equity Investment in Assoc 25
Other assets 880
Total assets 13394
Short Term Debt (Notes and loans payable) 54
Current portion of long-term debt 250
Accounts payable 1,290
Accrued income taxes 254
Other accruals 1,888
Long-term debt 4,926
Deferred income taxes 293
Other liabilities 2,049
Total liabilities 11,004

Common stock, 1,466

Additional paid-in capital 818
Retained earnings 16,953
Accumulated other comprehensive income (loss) -2,621
Unearned compensation -41
Treasury stock, at cost (14,386)
Total Company shareholders’ equity 2,189
Noncontrolling interests 201
Total shareholders’ equity 2,390
Total liabilities and shareholders’ equity 13,394

Balance Check 0
 2011 2012 2013
COGS 2 32 www.ibinstitute.in
SG&A 122 126 265
Others 22 24 27

2013 2014 2015 2016 2017 2018 2019

ical Forecast

17,420 17768 18124 18486 18856 19233 19618

7,219
7,187 7285 7431 7579 7731 7886 8043
10,233 10483 10693 10907 11125 11348 11574
6,223
5,958 6041 6162 6285 6411 6539 6670
128 178 181 185 189 192 196
591
564 0 0 0 0 0 0
32 29 29 29 29 29 29
3,551 4235 4321 4408 4496 4587 4679
-9 192 161 147 136 122 110
3,560 4043 4159 4261 4360 4465 4570
1,155 1294 1331 1363 1395 1429 1462
5 5 5 5 5 6 6
2,410 2,754 2,833 2,903 2,970 3,042 3,113
169 172 176 179 183 187 190
2,241 2582 2658 2723 2788 2855 2923

1242 1420 1462 1498 1533 1570 1607

140 143 146 149 152 155 158

999 1162 1196 1225 1254 1285 1315

3,551 4235 4321 4408 4496 4587 4679

407 355 362 370 377 385 392
32 29 29 29 29 29 29
3,990 4620 4712 4806 4903 5001 5101
 2.41 2.81 2.90 2.98 3.06 3.15 3.24
2.38 2.78 2.87 2.95 3.03 3.12 3.20

930.8 919 916 913 910 906 903

9.1 9 9 9 9 9 9
939.9 928 925 922 919 916 912

2013 2014 2015 2016 2017 2018 2019

2% 2% 2% 2% 2% 2% 2%
41% 41% 41% 41% 41% 41% 41%
34% 34% 34% 34% 34% 34% 34%
3% 0% 0% 0% 0% 0% 0%
1% 1% 1% 1% 1% 1% 1%

32% 32% 32% 32% 32% 32% 32%

-29% 2% 2% 2% 2% 2% 2%

6% 2% 2% 2% 2% 2% 2%

55% 55% 55% 55% 55% 55% 55%

83% 83% 83% 83% 83% 83% 83%

2013 2014 2015 2016 2017 2018 2019

Historical Forecast

962 382 362 411 377 385 392

173 173 173 173 173 173 173
1,636 1599 1631 1664 1697 1731 1766
1,425 1384 1412 1440 1469 1498 1528
626 626 626 626 626 626 626
4,083 4,527 4,799 5,076 5,359 5,648 5,942
2,474 2,474 2,474 2,474 2,474 2,474 2,474
1,496 1,467 1,438 1,409 1,380 1,351 1,322
77 77 77 77 77 77 77
27 29 31 33 35 38 40
897 897 897 897 897 897 897
13876 13635 13921 14281 14565 14897 15237
 13 0 62 0 247 582 237
895 491 255 664 695 0 0
1,343 1311 1338 1364 1392 1419 1448
239 239 239 239 239 239 239
1,980 1,980 1,980 1,980 1,980 1,980 1,980
4,749 4,258 4,003 3,339 2,644 2,644 2,644
444 444 444 444 444 444 444
1,677 1,677 1,677 1,677 1,677 1,677 1,677
11,340 10,400 9,998 9,707 9,318 8,986 8,669

1,466 1,466 1,466 1,466 1,466 1,466 1,466

1,004 1,764 2,519 3,243 3,996 4,748 5,498
17,952 19,114 20,310 21,535 22,790 24,075 25,390
-2,451 -2,451 -2,451 -2,451 -2,451 -2,451 -2,451
-33 -33 -33 -33 -33 -33 -33
(15,633) (16,885) (18,178) (19,508) (20,873) (22,276) (23,718)
2,305 2,975 3,633 4,253 4,895 5,528 6,152
231 260 290 321 352 384 416
2536 3235 3923 4573 5247 5912 6568
13,876 13,635 13,921 14,281 14,565 14,897 15,237

0 0 0 0 0 0 0
 2020

20010

8204
11806

6803
200

0
29
4773
98
4675
1496
6
3,185
194
2991

1645
161

1346

4773
400
29
5203
 3.32
3.29

900
9
909

2020

2%
41%
34%
0%
1%

32%
2%

2%

55%
83%

2020

503
173
1801
1559
626
6,242
2,474
1,293
77
42
897
15687
 0
0
1477
239
1,980
2,644
444
1,677
8,461

1,466
6,258
26,736
-2,451
-33
(25,198)
6,778
449
7226
15,687

0
www.ibinstitute.in
2011 2012 2013 2014 2015
Cash Flow Statement: Historical Forecast

Net Income 2,754 2,833

Dep 355 362
Amort 29 29
SBC 178 181
Change in CA 78 (60)
Change in CL (32) 26
Less: Equity Inestment in Assoc (5) (5)
Cash From Operations 3,357 3,368

CapEx on PP&E (800) (634)

Dividend Received 3 3
Cash From Investments (797) (631)

Treasury Stock (1,252) (1,293)

Options Proceeds 583 574
Dividend Paid (1,563) (1,608)
Change in Debt (908) (429)
Cash From Financing Activities: (3,141) (2,756)

Surplus / Deficit (580) (19)

Opening Cash 962 382
Closing Cash 382 362
 2016 2017 2018 2019 2020
Forecast

2,903 2,970 3,042 3,113 3,185

370 377 385 392 400
29 29 29 29 29
185 189 192 196 200
(61) (62) (63) (65) (66)
27 27 28 28 29
(5) (5) (6) (6) (6)
3,447 3,525 3,607 3,689 3,772

(647) (660) (673) (687) (700)

3 3 3 3 3
(644) (657) (670) (683) (697)

(1,329) (1,365) (1,403) (1,441) (1,480)

539 565 559 554 559
(1,647) (1,685) (1,725) (1,765) (1,806)
(317) (417) (360) (345) (237)
(2,754) (2,902) (2,929) (2,998) (2,964)

49 (34) 8 8 111
362 411 377 385 392
411 377 385 392 503
www.ibinstitute.in
2011 2012 2013 2014 2015 2016
Debt Schedule: Historical Forecast

Free Cash Before Debt: 327.9 409.4 365.8

Add: Opening Cash Bal 962 381.9061 362.4754
Less: Minimum Cash Bal 2% 355 362 370
Free Cash For Debt: 935 429 359

Current portion of LTD 250 895 491 255 664

Discreationary Borrowing / (Paydown)

Long-term debt 4,926 4,749 4,258 4,003 3,339

Free Cash For ST Debt 40 (62) 104

Short Term Debt 54 13 - 62 -

 2017 2018 2019 2020

382.8 367.5 352.9 347.9

411.1205 377.1194 384.6618 392.355
377 385 392 400
417 360 345 340

695 0 0 0

2,644 2,644 2,644 2,644

(247) (335) 345 340

247 582 237 -

 2011 2012 2013 2014 2015 2016
Working Capital Schedule: Historical Forecast

Net Sale 16,734 17,085 17,420 17,768 18,124 18,486

COGS 7,144 7,151 7,187 7,285 7,431 7,579

Receivables 1,668 1,636 1599 1631 1664

Inventories 1,365 1,425 1384 1412 1440
Accounts payable 1,290 1,343 1311 1338 1364

AR as a% of Sales 9% 9% 9% 9%
Inventory as a % of COGS 19% 19% 19% 19%
AP as a % of COGS 18% 18% 18% 18%
2017 2018 2019 2020

18,856 19,233 19,618 20,010

7,731 7,886 8,043 8,204

1697 1731 1766 1801

1469 1498 1528 1559
1392 1419 1448 1477

9% 9% 9% 9%
19% 19% 19% 19%
18% 18% 18% 18%
www.ibinstitute.in

2011 2012 2013 2014 2015

Share & Equity Schedule: Historical Forecast

Opening Shares Outstanding 990 960 936 920 917

Option Converts 13.0 14.4 9.8 12.4 12.2
Shares Buyback 42.6 38.7 25.6 15.0 15.0
Closing Shares Outstanding 960 936 920 917 915

Basic Weighted Avg Shares 976.7 952.1 930.8 919 916

Dilutions 7.4 8.1 9.1 9.1 9.1
Diluted Weighted Avg Shares 984.1 960.2 939.9 928 925

Strike Price 47 47
Option Proceeds 583 574

Diluted EPS 2.78 2.87

Assumed PE Ratio 30 30
Projected Share Price 83 86
Treasury Stock $ 1252 1293

Equity Income From Assoc 7 5 5 5

Dividend Received 3 3.1 3.1
Equity Investment in Assoc 25 27 29.04 31.12

60% 60% 60%

 2016 2017 2018 2019 2020
Forecast

915 911 908 905 902

11.5 12.0 11.9 11.8 11.9
15.0 15.0 15.0 15.0 15.0
911 908 905 902 899

913 910 906 903 900

9.1 9.1 9.1 9.1 9.1
922 919 916 912 909

47 47 47 47 47
539 565 559 554 559

2.95 3.03 3.12 3.20 3.29

30 30 30 30 30
89 91 94 96 99
1329 1365 1403 1441 1480

5 5 6 6 6
3.2 3.2 3.3 3.4 3.4
33.24 35.41 37.62 39.87 42.17

60% 60% 60% 60% 60%

 2011 2012 2013 2014 2015 2016
Dep Schedule: Historical Forecast

Net Sales 16,734 17,085 17,420 17,768 18,124 18,486

CapEx 670 565 537 800 634 647
CapEx as a % of Sales 4% 3% 3% 4.50% 3.50% 3.50%

Opening Gross PP&E 8,330 9,130 9,764

Addition 800 634 647
Gross PP&E 7,821 8,330 9,130 9,764 10,411
Accum Dep 3,979 4,247 4,602 4,965 5,335
Net PP&E 3,842 4,083 4,527 4,799 5,076

Dep 393 394 407 355 362 370

Dep as a % of Sales 2% 2% 2% 2% 2% 2%

Dep Growth Rate 0% 3%

 2017 2018 2019 2020

18,856 19,233 19,618 20,010

660 673 687 700
3.50% 3.50% 3.50% 3.50%

10,411 11,071 11,744 12,431

660 673 687 700
11,071 11,744 12,431 13,131
5,712 6,096 6,489 6,889
5,359 5,648 5,942 6,242

377 385 392 400

2% 2% 2% 2%