Dollars in Millions Except Per Share Amounts

Consolidated Statements of Income

For the years ended December 31,

Particulars 2018 2017 2016

Net sales $ 15,544 $ 15,454 $ 15,195

Cost of sales 6,313 6,174 6,072
Gross profit 9,231 9,280 9,123

Selling, general and administrative expenses 5,389 5,497 5,249

Other (income) expense, net 148 194 37
Charge for Venezuela accounting change 0 0 0
Operating profit 3,694 3,589 3,837
Non Service Related Post retirement Costs 87 0 0
Interest expense(Income), net 143 102 99
Income before income taxes 3,464 3,487 3,738

Provision for income taxes 906 1,313 1,152

Net income including noncontrolling interests 2,558 2,174 2,586

Less: Net income attributable to noncontrolling interests 158 150 145

Net income attributable to Colgate-Palmolive Company $ 2,400 $ 2,024 $ 2,441

Earnings per common share, basic $ 2.76 $ 2.30 $ 2.74

Earnings per common share, diluted $ 2.75 $ 2.28 $ 2.72

VERTICAL ANALY
Particulars 2018 2017 2016

Net sales 100.00% 100.00% 100.00%

Cost of sales 40.61% 39.95% 39.96%
Gross profit 59.39% 60.05% 60.04%

Selling, general and administrative expenses 34.67% 35.57% 34.54%

Other (income) expense, net 0.95% 1.26% 0.24%
Charge for Venezuela accounting change 0.00% 0.00% 0.00%
Operating profit 23.76% 23.22% 25.25%
Non Service Related Post retirement Costs 0.56% 0.00% 0.00%
Interest expense, net 0.92% 0.66% 0.65%
Income before income taxes 22.29% 22.56% 24.60%

Provision for income taxes 5.83% 8.50% 7.58%

Net income including noncontrolling interests 16.46% 14.07% 17.02%

Less: Net income attributable to noncontrolling interests 1.02% 0.97% 0.95%

Net income attributable to Colgate-Palmolive Company 15.44% 13.10% 16.06%
 HORIZONTAL ANALYSIS
2015 2014 2013 YOY%-2013-14 YOY%-2014-15 YOY%-2015-16 YOY%-2016-17

$ 16,034 $ 17,277 $ 17,420 -0.82% -7.19% -5.23% 1.70%

6,635 7,168 7,219 -0.71% -7.44% -8.49% 1.68%
9,399 10,109 10,201 -0.90% -7.02% -2.94% 1.72%

5,464 5,982 6,223 -3.87% -8.66% -3.93% 4.72%

62 570 422 35.07% -89.12% -40.32% 424.32%
1,084 0 0 0.00% 0.00% -100.00% 0.00%
2,789 3,557 3,556 0.03% -21.59% 37.58% -6.46%
0 0 0 0.00% 0.00% 0.00% 0.00%
26 24 (9) -366.67% 8.33% 280.77% 3.03%
2,763 3,533 3,565 -0.90% -21.79% 35.29% -6.71%

1,215 1,194 1,155 3.38% 1.76% -5.19% 13.98%

1,548 2,339 2,410 -2.95% -33.82% 67.05% -15.93%

164 159 169 -5.92% 3.14% -11.59% 3.45%

$ 1,384 $ 2,180 $ 2,241 -2.72% -36.51% 76.37% -17.08%

$ 1.53 $ 2.38 $ 2.41 -1.24% -35.71% 79.08% -16.06%

$ 1.52 $ 2.36 $ 2.38 -0.84% -35.59% 78.95% -16.18%

CAL ANALYSIS
2015 2014 2013

100.00% 100.00% 100.00%

41.38% 41.49% 41.44%
58.62% 58.51% 58.56%

34.08% 34.62% 35.72%

0.39% 3.30% 2.42%
6.76% 0.00% 0.00%
17.39% 20.59% 20.41%
0.00% 0.00% 0.00%
0.16% 0.14% -0.05%
17.23% 20.45% 20.46%

7.58% 6.91% 6.63%

9.65% 13.54% 13.83%

1.02% 0.92% 0.97%

8.63% 12.62% 12.86%
ALYSIS
YOY%-2017-18

0.58%
2.25%
-0.53%

-1.96%
-23.71%
0.00%
2.93%
0.00%
40.20%
-0.66%

-31.00%
17.66%

5.33%
18.58%

20.00%

20.61%
Dollars in Millions Except Share and Per Share Amounts

BALANCE SHEETS
As of December 31,

ASSETS 2018 2017 2016 2015

CURRENT ASSETS
Cash and cash equivalents $ 726 $ 1,535 $ 1,315 $ 970
Receivables (net of allowances of $59 and $54,respectively) 1,400 1,480 1,411 1,427

Inventories 1,250 1,221 1,171 1,180

Other current assets 417 403 441 807
TOTAL CURRENT ASSETS 3,793 4,639 4,338 4,384

Property, plant and equipment, net 3,881 4,072 3,840 3,796

Goodwill 2,530 2,218 2,101 2,103
Other intangible assets, net 1,637 1,341 1,313 1,346
Deferred income taxes 152 188 301 67
Other assets 168 218 224 262
TOTAL ASSETS 12,161 12,676 12,117 11,958

LIABILITIES AND SHAREHOLDER'S EQUITY 2018 2017 2016 2015

Current Liabilities
Notes and loans payable $ 12 $ 11 $ 13 $ 4
Current portion of long-term debt 0 0 0 298
Accounts payable 1,222 1,212 1,124 1,110
Accrued income taxes 411 354 441 277
Other accruals 1,696 1,831 1,727 1,845
TOTAL CURRENT LIABILITIES 3,341 3,408 3,305 3,534

Long-term debt 6,354 6,566 6,520 6,269

Deferred income taxes 235 204 246 233
Other liabilities 2,034 2,255 2,035 1,966
TOTAL LIABILITIES 11,964 12,433 12,106 12,002

Commitments and contingent liabilities - - - -

Shareholders’ Equity
Common stock, $1 par value
(2,000,000,000 shares authorized, 1,465,706,360 shares 1,466 1,466 1,466 1,466
issued)
Additional paid-in capital 2,204 1,984 1,691 1,438
Retained earnings 21,615 20,531 19,922 18,861
Accumulated other comprehensive income (loss) (4,188) (3,855) (4,180) (3,950)
Unearned compensation (3) (5) (7) (12)
Treasury stock, at cost (21,196) (20,181) (19,135) (18,102)
Total Colgate-Palmolive Company shareholders’ (102) (60) (243) (299)
equityinterests
Noncontrolling 299 303 260 255
TOTAL EQUITY 197 243 17 (44)
TOTAL LIABILITIES AND EQUITY $ 12,161 $ 12,676 $ 12,123 $ 11,958

VERTICAL ANALYSIS
ASSETS 2018 2017 2016 2015

CURRENT ASSETS
Cash and cash equivalents 5.97% 12.11% 10.85% 8.11%
Receivables (net of allowances of $59 and $54,respectively) 11.51% 11.68% 11.64% 11.93%

Inventories 10.28% 9.63% 9.66% 9.87%

Other current assets 3.43% 3.18% 3.64% 6.75%
TOTAL CURRENT ASSETS 31.19% 36.60% 35.80% 36.66%

Property, plant and equipment, net 31.91% 32.12% 31.69% 31.74%

Goodwill 20.80% 17.50% 17.34% 17.59%
Other intangible assets, net 13.46% 10.58% 10.84% 11.26%
Deferred income taxes 1.25% 1.48% 2.48% 0.56%
Other assets 1.38% 1.72% 1.85% 2.19%
TOTAL ASSETS 100.00% 100.00% 100.00% 100.00%

LIABILITIES AND SHAREHOLDER'S EQUITY 2018 2017 2016 2015

Current Liabilities
Notes and loans payable 0.10% 0.09% 0.11% 0.03%
Current portion of long-term debt 0.00% 0.00% 0.00% 2.49%
Accounts payable 10.05% 9.56% 9.28% 9.28%
Accrued income taxes 3.38% 2.79% 3.64% 2.32%
Other accruals 13.95% 14.44% 14.25% 15.43%
TOTAL CURRENT LIABILITIES 27.47% 26.89% 27.28% 29.55%

Long-term debt 52.25% 51.80% 53.81% 52.43%

Deferred income taxes 1.93% 1.61% 2.03% 1.95%
Other liabilities 16.73% 17.79% 16.79% 16.44%
TOTAL LIABILITIES 98.38% 98.08% 99.91% 100.37%

Commitments and contingent liabilities 0.00% 0.00% 0.00% 0.00%

Shareholders’ Equity 0.00% 0.00% 0.00% 0.00%
Common stock, $1 par value 0.00% 0.00% 0.00% 0.00%
(2,000,000,000 shares authorized, 1,465,706,360 shares 12.05% 11.57% 12.10% 12.26%
issued)
Additional paid-in capital 18.12% 15.65% 13.96% 12.03%
Retained earnings 177.74% 161.97% 164.41% 157.73%
Accumulated other comprehensive income (loss) -34.44% -30.41% -34.50% -33.03%
Unearned compensation -0.02% -0.04% -0.06% -0.10%
Treasury stock, at cost -174.29% -159.21% -157.92% -151.38%
Total Colgate-Palmolive Company shareholders’ -0.84% -0.47% -2.01% -2.50%
equity
Noncontrolling interests 2.46% 2.39% 2.15% 2.13%
TOTAL EQUITY 1.62% 1.92% 0.14% -0.37%
TOTAL LIABILITIES AND EQUITY 100.0% 100.0% 100.0% 100.0%
 HORIZONTAL ANALYSIS
2014 2013 ASSETS YOY%-2017-18 YOY%-2016-17

CURRENT ASSETS
$ 1,089 $ 962 Cash and cash equivalents -52.70% 16.73%
1,552 1,636 Receivables (net of allowances of $59 and -5.41% 4.89%
$54,respectively)
1,382 1,425 Inventories 2.38% 4.27%
840 908 Other current assets 3.47% -8.62%
4,863 4,931 TOTAL CURRENT ASSETS -18.24% 6.94%

4,080 4,083 Property, plant and equipment, net -4.69% 6.04%

2,307 2,474 Goodwill 14.07% 5.57%
1,413 1,496 Other intangible assets, net 22.07% 2.13%
76 77 Deferred income taxes -19.15% -37.54%
720 924 Other assets -22.94% -2.68%
13,459 13,985 TOTAL ASSETS -4.06% 4.61%

2014 2013 LIABILITIES AND SHAREHOLDER'S EQUITY YOY%-2017-18 YOY%-2016-17

Current Liabilities
$ 16 $ 13 Notes and loans payable 9.09% -15.38%
488 895 Current portion of long-term debt 0.00% 0.00%
1,231 1,343 Accounts payable 0.83% 7.83%
294 239 Accrued income taxes 16.10% -19.73%
1,917 2,089 Other accruals -7.37% 6.02%
3,946 4,579 TOTAL CURRENT LIABILITIES -1.97% 3.12%

5,644 4,749 Long-term debt -3.23% 0.71%

261 444 Deferred income taxes 15.20% -17.07%
2,223 1,677 Other liabilities -9.80% 10.81%
12,074 11,449 TOTAL LIABILITIES -3.77% 2.70%

- - Commitments and contingent liabilities 0.00% 0.00%

Shareholders’ Equity
Common stock, $1 par value
1,466 1,466 (2,000,000,000 shares authorized, 1,465,706,360 0.00% 0.00%
shares issued)
1,236 1,004 Additional paid-in capital 11.09% 17.33%
18,832 17,952 Retained earnings 5.28% 3.06%
(3,507) 2,451 Accumulated other comprehensive income (loss) 8.64% -7.78%
(20) (33) Unearned compensation -40.00% -28.57%
 (16,862) (15,633) Treasury stock, at cost 5.03% 5.47%
1,145 2,305 Total Colgate-Palmolive Company 70.00% -75.31%
240 231 shareholders’
Noncontrolling interestsequity -1.32% 16.54%
1,385 2,536 TOTAL EQUITY -18.93% 1329.41%
$ 13,459 $ 13,985 TOTAL LIABILITIES AND EQUITY -4.06% 4.56%

ANALYSIS
2014 2013

8.09% 6.88%
11.53% 11.70%

10.27% 10.19%
6.24% 6.49%
36.13% 35.26%

30.31% 29.20%
17.14% 17.69%
10.50% 10.70%
0.56% 0.55%
5.35% 6.61%
100.00% 100.00%

2014 2013

0.12% 0.09%
3.63% 6.40%
9.15% 9.60%
2.18% 1.71%
14.24% 14.94%
29.32% 32.74%

41.93% 33.96%
1.94% 3.17%
16.52% 11.99%
89.71% 81.87%

0.00% 0.00%
0.00% 0.00%
0.00% 0.00%
 10.89% 10.48%

9.18% 7.18%
139.92% 128.37%
-26.06% 17.53%
-0.15% -0.24%
-125.28% -111.78%
8.51% 16.48%

1.78% 1.65%
10.29% 18.13%
100.0% 100.0%
ANALYSIS

YOY%-2015-16 YOY%-2014-15 YOY%-2013-14

35.57% -10.93% 13.20%

-1.12% -8.05% -5.13%

-0.76% -14.62% -3.02%

-45.35% -3.93% -7.49%
-1.05% -9.85% -1.38%

1.16% -6.96% -0.07%

-0.10% -8.84% -6.75%
-2.45% -4.74% -5.55%
349.25% -11.84% -1.30%
-14.50% -63.61% -22.08%
1.33% -11.15% -3.76%

YOY%-2015-16 YOY%-2014-15 YOY%-2013-14

225.00% -75.00% 23.08%

-100.00% -38.93% -45.47%
1.26% -9.83% -8.34%
59.21% -5.78% 23.01%
-6.40% -3.76% -8.23%
-6.48% -10.44% -13.82%

4.00% 11.07% 18.85%

5.58% -10.73% -41.22%
3.51% -11.56% 32.56%
0.87% -0.60% 5.46%

0.00% 0.00% 0.00%

0.00% 0.00% 0.00%

17.59% 16.34% 23.11%

5.63% 0.15% 4.90%
5.82% 12.63% -243.08%
-41.67% -40.00% -39.39%
 5.71% 7.35% 7.86%
-18.73% -126.11% -50.33%
1.96% 6.25% 3.90%
-138.64% -103.18% -45.39%
1.38% -11.15% -3.76%
Dollars in Millions

Consolidated Statements of Cash Flow

For the years ended December 31,
Particulars
Operating Activities
Net income including noncontrolling interests
Adjustments to reconcile net income including noncontrolling interests
to net cash provided by operations:
Depreciation and amortization
Restructuring and termination benefits, net of cash
Venezuela remeasurement charges
Voluntary benefit plan contributions
Charge for US Tax Reform
Charge for a foreign tax matter
Stock-based compensation expense
Gain on sale of land in Mexico
Gain on sale of South Pacific laundry detergent business
Charge for Venezuela accounting change
Deferred income taxes
Cash effects of changes in:
Receivables
Inventories
Accounts payable and other accruals
Other non-current assets and liabilities
Net cash provided by operations

Investing Activities
Capital expenditures
Sale of property and non-core product lines
Purchases of marketable securities and investments
Proceeds from sale of marketable securities and investments
Payment for acquisitions, net of cash acquired
Proceeds from sale of land in Mexico
Proceeds from sale of South Pacific laundry detergent business
Reduction in cash due to Venezuela accounting change
Other
Net cash used in investing activities

Financing Activities
Principal payments on debt
Proceeds from issuance of debt
Dividends paid
Purchases of treasury shares
Proceeds from exercise of stock options and excess tax benefits
Net cash used in financing activities

Effect of exchange rate changes on Cash and cash equivalents

Net increase (decrease) in Cash and cash equivalents

Cash and cash equivalents at beginning of year

Cash and cash equivalents at end of year

Supplemental Cash Flow Information

Income taxes paid

Interest paid
 HORIZONTA
2018 2017 2016 2015 2014 2013 YOY%- 2017-18

2,558 2,174 2,586 1,548 2,339 2,410 17.66%

511 475 443 449 442 439 7.58%

(7) 91 (9) 69 64 182 -107.69%
- - - 34 327 172 0.00%
(67) (81) (53) - (2) (101) -17.28%
80 275 - - - - -70.91%
- - - - 66 - 0.00%
109 127 123 125 131 128 -14.17%
- - (97) - - - 0.00%
- - - (187) - - 0.00%
- - - 1,084 - - 0.00%
27 108 56 (51) 18 71 -75.00%
0.00%
(79) (15) (17) (75) (109) (37) 426.67%
(58) (8) (4) (13) (60) (97) 625.00%
18 (96) 100 (67) 57 24 -118.75%
(36) 4 13 33 25 13 -1000.00%
3,056 3,054 3,141 2,949 3,298 3,204 0.07%

(436) (553) (593) (691) (757) (670) -21.16%

1 44 - 9 24 15 -97.73%
(169) (347) (336) (742) (340) (505) -51.30%
156 391 378 599 283 267 -60.10%
(728) - (5) (13) (87) (3) 0.00%
- - 60 - - -### 0.00%
- - - 221 - - 0.00%
- - - (75) - - 0.00%
6 (6) (3) 7 18 6 -200.00%
(1,170) (471) (499) (685) (859) (890) 148.41%

(7,355) (4,808) (7,274) (9,181) (8,525) (7,554) 52.97%

7,176 4,779 7,438 9,602 8,960 7,976 50.16%
(1,591) (1,529) (1,508) (1,493) (1,446) (1,382) 4.05%
(1,238) (1,399) (1,335) (1,551) (1,530) (1,521) -11.51%
329 507 446 347 371 339 -35.11%
(2,679) (2,450) (2,233) (2,276) (2,170) (2,142) 9.35%

(16) (16) (16) (16) (16) (16) 0.00%

(809) 117 393 (28) 253 156 -791.45%

1,535 1,535 1,535 1,535 1,535 1,535 0.00%

726 1,652 1,928 1,507 1,788 1,691 -56.05%

847 1,037 932 1,259 1,009 1,087

194 150 162 131 133 118
HORIZONTAL ANALYSIS
YOY%- 2016-17 YOY%- 2015-16 YOY%- 2014-15 YOY%- 2013-14

-15.93% 67.05% -33.82% -2.95%

7.22% -1.34% 1.58% 0.68%

-1111.11% -113.04% 7.81% -64.84%
0.00% 0.00% 0.00% 0.00%
52.83% 0.00% -100.00% -98.02%
0.00% 0.00% 0.00% 0.00%
0.00% 0.00% 0.00% 0.00%
3.25% -1.60% -4.58% 2.34%
0.00% 0.00% 0.00% 0.00%
0.00% 0.00% 0.00% 0.00%
0.00% 0.00% 0.00% 0.00%
92.86% -209.80% -383.33% -74.65%
0.00% 0.00% 0.00% 0.00%
-11.76% -77.33% -31.19% 194.59%
100.00% -69.23% -78.33% -38.14%
-196.00% -249.25% -217.54% 137.50%
-69.23% -60.61% 32.00% 92.31%
-2.77% 6.51% -10.58% 2.93%

-6.75% -14.18% -8.72% 12.99%

0.00% -100.00% -62.50% 60.00%
3.27% -54.72% 118.24% -32.67%
3.44% -36.89% 111.66% 5.99%
-100.00% -61.54% -85.06% 2800.00%
-100.00% 0.00% 0.00% 0.00%
0.00% -100.00% 0.00% 0.00%
0.00% -100.00% 0.00% 0.00%
100.00% -142.86% -61.11% 200.00%
-5.61% -27.15% -20.26% -3.48%

-33.90% -20.77% 7.70% 12.85%

-35.75% -22.54% 7.17% 12.34%
1.39% 1.00% 3.25% 4.63%
4.79% -13.93% 1.37% 0.59%
13.68% 28.53% -6.47% 9.44%
 9.72% -1.89% 4.88% 1.31%

0.00% 0.00% 0.00% 0.00%

-70.23% -1503.57% -111.07% 62.18%

0.00% 0.00% 0.00% 0.00%

-14.32% 27.94% -15.72% 5.74%
 FINANCIAL
Ratios
Liquidity Ratios
1 Current Ratio =
2 Quick Ratio / Acid Test Ratio =
3 Cash Ratio
4 Asset Turnover Ratio =
5 Inventory Turnover Ratio =

Profitability & Growth Ratios

1 Revenue Growth

2 Gross Profit (GP) / Margin

3 Operating Profit Margin (EBIT) =
4 Net Profit Margin (Net Income) =
5 Return on Assets (ROA) =
6 Return on Equity (ROE) =

7 Return on Capital Employed (ROCE) =

8 Return on Invested Capital (ROIC) =
9 Profit Before Tax (PBT) =
Leverage/Solvency Ratios
1 Debt Ratio =
2 Debt to Equity Ratio =
3 Debt to Total Capital Ratios =
4 Debt Service Coverage Ratio (DSCR) =
5 Interest Coverage Ratio (ICR) =

AN
Liquidity Ratios
1 Colgate Palmolive's liquidity has been increasing sharply till FY17 before deteriorating merely in FY18.
2 Current, Quick and Cash Ratio for all Financial Years are below the ideal figures of 2, 1 and 0.75 respectively.
3 Colgate Palmolive might look to raise capital in near future to tackle its liquidity issues.
Management Efficiency Ratios
1 Asset Turnover Ratio and Inventory Turnover Ratio has been stable from FY 13 till FY 17, thereafter it decreased
moving towards attaining higher or ideal efficency in generating revenue from total assets of a company.
2 Colgate Palmolive management is very efficient in selling inventory during a year i.e the least liquid assets.

3 Colgate Palmolive's management has been performing well upto the mark leading to gradual increase in operati
Profitability & Growth Ratios
1 DHFL has been experiencing declining or negative growth till FY16 , before rising minorily in FY17 AND FY 18.
2 The main reason for a negative growth can be attributed to the Accumulated losses every year along with the Un
3 Colgate Palmolive's profitability has been on rise Till FY 16 befor falling marginally in FY 17 and rising a bit in FY

4 Colgate Palmolive's is operating at good percentage of profitability which is majorly due to the sale of the subsi
5 Overall GP margin of Colgate Palmolive's has increased over the FY 16 majorly due to the sale of its subsidiary

6 Colgate Palmolive's has a shown a major Increment in FY 2016 in Ratios like ROA, ROIC, ROCE and Net Profit an
declining.
Leverage/Solvency Ratios
1 Debt Ratio, Debt to Equity Ratio and Debt to Total Capital Ratios are well above the ideals figures of 0.5 and 1.5 r
2 Debt Ratio of above 0.5 for Colgate Palmolive indicates that Company is taking too much debt in order acquire o

3 With Debt to Equity Ratio rising above ideal meaning that the company is using external financing more than the
4 DSCR of Colgate Palmolive is lower than the ideal of 1.25x which basically means Colgate is not earning enough
ICR of Colgate Palmolive has improved a lot more above 100 means it is highly capable of making interest Paym
Colgate Palmolive has been low on liquiditybut is highly capable to improving on liquidity
able to serve its interest and debt repayments due to DSCR being above Ideal .Thus, Opin
 FINANCIAL RATIOS ANALYSIS
Formulas

Current Assets / Current Liabilities

Quick Assets / Current Liabilities
Cash & Cash Equivalents / Current Liabilities
Net Sales / Average Total Assets
Net Sales or COGS / Average Inventory

Revenue(Net sales) of Current Year / Revenue(Net Sales) of Previous

Year - 1

Gross Profit / Revenue

EBIT / Revenue
Net Income / Revenue
Net Income / Average Total Assets
Net Income /Average shreholder's Equity (Or [ROA * (Total Assets /
Equity ) * (Net Income / EBIT)])
EBIT/(Debt+Equity) or EBIT/(Total Assets- Current Liabilities)
EBIT/(Debt+Equity-Cash)
Profit Before Tax/Revenue

Total Liabilities / Total Assets

.
Debt / Total Capital
Operating Income (EBIT) /(Debt Principal + Interest)
EBIT/Interest Expense

ANALYSIS NOTES
n increasing sharply till FY17 before deteriorating merely in FY18.
Financial Years are below the ideal figures of 2, 1 and 0.75 respectively.
capital in near future to tackle its liquidity issues.

urnover Ratio has been stable from FY 13 till FY 17, thereafter it decreased gradually in FY18. Colgate Palmolive is
eal efficency in generating revenue from total assets of a company.
ry efficient in selling inventory during a year i.e the least liquid assets.

been performing well upto the mark leading to gradual increase in operational efficiency.

g or negative growth till FY16 , before rising minorily in FY17 AND FY 18.
h can be attributed to the Accumulated losses every year along with the Unearned Compensation and Treasury stock also been co
been on rise Till FY 16 befor falling marginally in FY 17 and rising a bit in FY18.

ood percentage of profitability which is majorly due to the sale of the subsidiary in Mexican City of USA and also sale of laundry d
ve's has increased over the FY 16 majorly due to the sale of its subsidiary and its Laundry detergent business.

major Increment in FY 2016 in Ratios like ROA, ROIC, ROCE and Net Profit and PBT Margin as the Company had a sale of its Susidi

Debt to Total Capital Ratios are well above the ideals figures of 0.5 and 1.5 respectively which is very alarming for the lenders.
almolive indicates that Company is taking too much debt in order acquire or finance its assets which seems to alarming and impo

e ideal meaning that the company is using external financing more than their own financing sources.
han the ideal of 1.25x which basically means Colgate is not earning enough profits as well as cash flows which can cover the deb
ed a lot more above 100 means it is highly capable of making interest Payments in the future due to adequate profit earnings.
w on liquiditybut is highly capable to improving on liquidity , good market reputation and has good per
ebt repayments due to DSCR being above Ideal .Thus, Opinion on the future of the firm tend to be in Po
IAL RATIOS ANALYSIS
Ratios FY13 FY14 FY15 FY16
Liquidity Ratios
Current Ratio 1.08x 1.23x 1.24x 1.31x
Quick Ratio 0.77x 0.88x 0.91x 0.96x
Cash Ratio 0.21x 0.28x 0.27x 0.40x
Asset Turnover Ratio N.a 1.26x 1.26x 1.26x
Inventory Turnover Ratio N.a 5.11x 5.18x 5.17x

Profitability & Growth Ratios FY13 FY14 FY15 FY16

Growth % N.a -0.82% -7.19% -5.23%

Overall GP% 58.56% 58.51% 58.62% 60.04%

Operating Profit (Loss) Margin 20.41% 20.59% 17.39% 25.25%
Net Profit (Loss) Margin 13.83% 13.54% 9.65% 17.02%
ROA N.a 17.05% 12.18% 21.48%
ROE N.a 126.38% 327.19% -900.74%

ROCE 25.62% 24.59% 18.38% 29.35%

ROIC 49.27% 55.34% 27.88% 49.52%
PBT (Loss) Margin 20.46% 20.45% 17.23% 24.60%
Leverage/Solvency Ratios
Debt Ratio 0.82 0.90 1.00 1.00
Debt to Equity Ratio 4.51 8.72 -272.77 712.12
Debt to Total Capital Ratio 0.40 0.46 0.55 0.54
Debt Service Coverage Ratio (DSCR) 0.63 0.58 0.42 0.58
Interest Coverage Ratio (ICR) N.a 148.21 107.27 38.76

ANALYSIS NOTES

ased gradually in FY18. Colgate Palmolive is

perational efficiency.

he Unearned Compensation and Treasury stock also been contributing in Negative growth.

subsidiary in Mexican City of USA and also sale of laundry detergent business to Henkel AG& Co. in south pacific.
diary and its Laundry detergent business.

ofit and PBT Margin as the Company had a sale of its Susidiary and Laundry Detergent Businesses whereas return to equity shar

1.5 respectively which is very alarming for the lenders.

uire or finance its assets which seems to alarming and imposing high leverage.

n their own financing sources.

ough profits as well as cash flows which can cover the debt payment to lenders which ia dangerous trend.It ,thus reflects strugg
Payments in the future due to adequate profit earnings.
idity , good market reputation and has good percentage of profitability which has been at par.Colgate P
Opinion on the future of the firm tend to be in Polarizing.
FY17 FY18

1.36x 1.14x 2.1

1.00x 0.76x 1.1
0.45x 0.22x 0.75.1
1.25x 1.25x 3 times
5.16x 5.11x 4 to 6

FY17 FY18
1.70% 0.58%

60.05% 59.39%
23.22% 23.76%
14.07% 16.46%
17.54% 20.60%
-1336.0% -2962.96%

23.46% 29.00%
41.22% 43.91%
22.56% 22.29%

0.98 0.98
51.16 60.73
0.52 0.52
0.54 0.57
35.19 25.83
s return to equity shareholders have been

.It ,thus reflects struggle for a company to pay minimum amount to cover its Current obligations

n at par.Colgate Palmolive may not

rrent obligations
Dollars in Millions Except Per Share Amounts
Consolidated Statements of Income
For the years ended December 31,

Particulars 2013A 2014A 2015A

Net sales $ 17,420 $ 17,277 $ 16,034

Cost of sales 7,219 7,168 6,635
Gross profit 10,201 10,109 9,399

Selling, general and administrative expenses 6,223 5,982 5,464

Other (income) expense, net 422 570 62
Charge for Venezuela accounting change 0 0 1,084
Operating profit 3,556 3,557 2,789
Non Service Related Post retirement Costs 0 0 0
Interest expense(Income), net (9) 24 26
Income before income taxes 3,565 3,533 2,763

Provision for income taxes 1,155 1,194 1,215

Net income including noncontrolling interests 2,410 2,339 1,548

Less: Net income attributable to noncontrolling interests 169 159 164

Net income attributable to Colgate-Palmolive Company $ 2,241 $ 2,180 $ 1,384

Basic Weighted Average Shares 930.8 915.1 902.2

Diluted Weighted Average Shares 939.9 924.3 909.7
Earnings per common share, basic $ 2.41 $ 2.38 $ 1.53
Earnings per common share, diluted $ 2.38 $ 2.36 $ 1.52
2016A 2017A 2018A 2019E 2020E 2021E 2022E 2023E

$ 15,195 $ 15,454 $ 15,544 $ 15,711 $ 15,879 $ 16,049 $ 16,221 $ 16,396

6,072 6,174 6,313 6,441 6,468 6,537 6,607 6,678
9,123 9,280 9,231 9,269 9,411 9,512 9,614 9,717

5,249 5,497 5,389 5,451 5,510 5,569 5,628 5,689

37 194 148 157 195 160 162 164
0 0 0 0 0 0 0 0
3,837 3,589 3,694 3,661 3,707 3,783 3,823 3,864
0 0 87 0 0 0 0 0
99 102 143 (135) (127) (133) (137) (118)
3,738 3,487 3,464 3,796 3,833 3,915 3,961 3,983

1,152 1,313 906 900 986 996 1,017 1,029

2,586 2,174 2,558 2,896 2,847 2,919 2,944 2,954

145 150 158 179 206 211 213 213

$ 2,441 $ 2,024 $ 2,400 $ 2,717 $ 2,642 $ 2,709 $ 2,731 $ 2,740

891.8 881.8 870.6 873.9 858.3 843.3 828.7 814.5

898.4 887.8 873.0 869.5 867.2 852.0 837.2 822.8
$ 2.74 $ 2.30 $ 2.76 $ 3.11 $ 3.08 $ 3.21 $ 3.30 $ 3.36
$ 2.72 $ 2.28 $ 2.75 $ 3.12 $ 3.05 $ 3.18 $ 3.26 $ 3.33
Assumptions

Assumptions

assumped as a % of NI Including NCI

Dollars in Millions Except Share and Per Share Amounts
BALANCE SHEETS
As of December 31,

ASSETS 2013A 2014A 2015A

CURRENT ASSETS
Cash and cash equivalents $ 962 $ 1,089 $ 970
Receivables (net of allowances of $59 and $54,respectively) 1,636 1,552 1,427
Inventories 1,425 1,382 1,180
Other current assets 908 840 807
TOTAL CURRENT ASSETS 4,931 4,863 4,384

Property, plant and equipment, net 4,083 4,080 3,796

Goodwill 2,474 2,307 2,103
Other intangible assets, net 1,496 1,413 1,346
Deferred income taxes 77 76 67
Other assets 924 720 262
TOTAL ASSETS 13,985 13,459 11,958

LIABILITIES AND SHAREHOLDER'S EQUITY 2013A 2014A 2015A

Current Liabilities
Notes and loans payable $ 13 $ 16 $ 4
Current portion of long-term debt 895 488 298
Accounts payable 1,343 1,231 1,110
Accrued income taxes 239 294 277
Other accruals 2,089 1,917 1,845
TOTAL CURRENT LIABILITIES 4,579 3,946 3,534
Revolver 0 0 0
Long-term debt 4,749 5,644 6,269
Deferred income taxes 444 261 233
Other liabilities 1,677 2,223 1,966
TOTAL LIABILITIES 11,449 12,074 12,002

Commitments and contingent liabilities - - -

Shareholders’ Equity
Common stock, $1 par value
(2,000,000,000 shares authorized, 1,465,706,360 shares issued) 1,466 1,466 1,466
Additional paid-in capital 1,004 1,236 1,438
Retained earnings 17,952 18,832 18,861
Accumulated other comprehensive income (loss) (2,451) (3,507) (3,950)
Unearned compensation (33) (20) (12)
Treasury stock, at cost (15,633) (16,862) (18,102)
Total Colgate-Palmolive Company shareholders’ equity 2,305 1,145 (299)
Noncontrolling interests 231 240 255
TOTAL EQUITY 2,536 1,385 (44)
TOTAL LIABILITIES AND EQUITY $ 13,985 $ 13,459 $ 11,958

0 0 0
 2016A 2017A 2018A 2019E 2020E 2021E 2022E 2023E

$ 1,315 $ 1,535 $ 726 $ 1,933 $ 1,337 $ 737 $ 500 $ 500

1,411 1,480 1,400 1,444 1,459 1,475 1,491 1,507
1,171 1,221 1,250 1,242 1,247 1,260 1,274 1,287
441 403 417 628 635 642 649 656
4,338 4,639 3,793 5,247 4,678 4,114 3,913 3,950

3,840 4,072 3,881 3,864 3,833 3,787 3,727 3,653

2,107 2,218 2,530 2,530 2,530 2,530 2,530 2,530
1,313 1,341 1,637 1,587 1,537 1,487 1,437 1,387
301 188 152 152 152 152 152 152
224 218 168 168 168 168 168 168
12,123 12,676 12,161 13,548 12,898 12,239 11,928 11,840

2016A 2017A 2018A 2019E 2020E 2021E 2022E 2023E

$ 13 $ 11 $ 12 $ 12 $ 12 $ 12 $ 12 $ 12
0 0 0 249 298 886 893 0
1,124 1,212 1,222 1,181 1,186 1,199 1,211 1,224
441 354 411 411 411 411 411 411
1,727 1,831 1,696 1,804 1,811 1,830 1,850 1,870
3,305 3,408 3,341 3,657 3,718 4,338 4,378 3,517
0 0 0 0 0 0 929 2,085
6,520 6,566 6,354 6,105 5,807 4,921 4,028 4,028
246 204 235 235 235 235 235 235
2,035 2,255 2,034 2,034 2,034 2,034 2,034 2,034
12,106 12,433 11,964 12,031 11,794 11,528 11,604 11,900

- - - - - - - -

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

1,691 1,984 2,204 2,204 2,204 2,204 2,204 2,204
19,922 20,531 21,615 22,213 22,794 23,390 23,991 24,593
(4,180) (3,855) (4,188) (4,188) (4,188) (4,188) (4,188) (4,188)
(7) (5) (3) (3) (3) (3) (3) (3)
 (19,135) (20,181) (21,196) (21,196) (21,196) (21,196) (21,196) (21,196)
(243) (60) (102) 1,039 421 (184) (783) (1,380)
260 303 299 478 683 894 1,107 1,320
17 243 197 1,517 1,104 711 324 (60)
$ 12,123 $ 12,676 $ 12,161 $ 13,548 $ 12,898 $ 12,239 $ 11,928 $ 11,840

0 0 0 $ - $ - $ - $ - $ -
Dollars in Millions
Consolidated Statements of Cash Flow
For the years ended December 31,
Particulars 2013A 2014A 2015A
Operating Activities
Net income including noncontrolling interests 2,410 2,339 1,548
Adjustments to reconcile net income including noncontrolling interests
to net cash provided by operations:
Depreciation and amortization 439 442 449
Restructuring and termination benefits, net of cash 182 64 69
Venezuela remeasurement charges 172 327 34
Voluntary benefit plan contributions (101) (2) -
Charge for US Tax Reform - - -
Charge for a foreign tax matter - 66 -
Stock-based compensation expense 128 131 125
Gain on sale of land in Mexico - - -
Gain on sale of South Pacific laundry detergent business - - (187)
Charge for Venezuela accounting change - - 1,084
Deferred income taxes 71 18 (51)
Cash effects of changes in:
Receivables (37) (109) (75)
Inventories (97) (60) (13)
Accounts payable
Other accruals 24 57 (67)
Other Current Assets 13 25 33
Net cash provided by operations 3,204 3,298 2,949

Investing Activities
Capital expenditures (670) (757) (691)
Sale of property and non-core product lines 15 24 9
Purchases of marketable securities and investments (505) (340) (742)
Proceeds from sale of marketable securities and investments 267 283 599
Payment for acquisitions, net of cash acquired (3) (87) (13)
Proceeds from sale of land in Mexico - - -
Proceeds from sale of South Pacific laundry detergent business - - 221
Reduction in cash due to Venezuela accounting change - - (75)
Other 6 18 7
Net cash used in investing activities (890) (859) (685)

Financing Activities
Revolver 0.0 0.0 0.0
Principal payments on debt (7,554) (8,525) (9,181)
Proceeds from issuance of debt 7,976 8,960 9,602
Dividends paid (1,382) (1,446) (1,493)
Purchases of treasury shares (1,521) (1,530) (1,551)
Proceeds from exercise of stock options and excess tax benefits 339 371 347
Net cash used in financing activities (2,142) (2,170) (2,276)

Effect of exchange rate changes on Cash and cash equivalents (94) (142) (107)
Net increase (decrease) in Cash and cash equivalents 78 127 (119)

Cash and cash equivalents at beginning of year 884 962 1,089

Cash and cash equivalents at end of year 962 1,089 970

Supplemental Cash Flow Information

Income taxes paid 1,087 1,009 1,259

Interest paid 118 133 131
2016A 2017A 2018A 2019E 2020E 2021E 2022E 2023E

2,586 2,174 2,558 2,896 2,847 2,919 2,944 2,954

443 475 511 538 558 577 597 616

(9) 91 (7) 0 0 0 0 0
- - - 0 0 0 0 0
(53) (81) (67) 0 0 0 0 0
- 275 80 0 0 0 0 0
- - - 0 0 0 0 0
123 127 109 0 0 0 0 0
(97) - - 0 0 0 0 0
- - - 0 0 0 0 0
- - - 0 0 0 0 0
56 108 27 0 0 0 0 0

(17) (15) (79) (44) (15) (16) (16) (16)

(4) (8) (58) 8 (5) (13) (14) (14)
- - - (41) 5 13 13 13
100 (96) 18 108 7 19 20 20
13 4 (36) (211) (7) (7) (7) (7)
3,141 3,054 3,056 3,253 3,390 3,493 3,536 3,566

(593) (553) (436) (471) (476) (481) (487) (492)

- 44 1 0 0 0 0 0
(336) (347) (169) 0 0 0 0 0
378 391 156 0 0 0 0 0
(5) - (728) 0 0 0 0 0
60 - - 0 0 0 0 0
- - - 0 0 0 0 0
- - - 0 0 0 0 0
(3) (6) 6 0 0 0 0 0
(499) (471) (1,170) (471) (476) (481) (487) (492)

0.0 0.0 0.0 - - - 929 1,156

(7,274) (4,808) (7,355) - (249) (298) (886) (893)
7,438 4,779 7,176 - - - - -
(1,508) (1,529) (1,591) (2,119) (2,060) (2,113) (2,130) (2,137)
(1,335) (1,399) (1,238) (1,200) (1,200) (1,200) (1,200) (1,200)
446 507 329 1,744 - - - -
(2,233) (2,450) (2,679) (1,575) (3,509) (3,611) (3,287) (3,074)

(64) 87 (16) 0 0 0 0 0
345 220 (809) 1,207 (596) (600) (237) -

970 1,315 1,535 726 1,933 1,337 737 500

1,315 1,535 726 1,933 1,337 737 500 500

932 1,037 847

162 150 194
 REVENUE MODEL
### 2014A 2015A

Oral, Personal and Home Care

North America ### 3,124 3,149
% growth (yoy) - - 0.8%

Latin America ### 4,769 4,327

% growth (yoy) - -9.3%

Europe/South Pacific ### 3,406 2,870

% growth (yoy) - -15.7%

Asia ### 2,515 2,478

% growth (yoy) - -1.5%

Africa/Eurasia ### 1,208 998

% growth (yoy) - -17.4%

Total Oral, Personal and Home Care ### 15,022 13,822

- -8.0%

Pet Nutrition ### 2,255 2,212

% growth (yoy) - -1.9%

Total Net sales ### $17,277 $16,034

 2016A 2017A 2018A 2019E 2020E 2021E 2022E 2023E

3,183 3,117 3,348 3,408 ### ### ### ###

1.1% -2.1% 7.4% 1.8% 1.8% 1.8% 1.8% 1.8%

3,650 3,887 3,605 3,641 ### ### ### ###

-15.6% 6.5% -7.3% 1% 1% 1% 1% 1%

2,342 2,394 2,502 2,527 ### ### ### ###

-18.4% 2.2% 4.5% 1% 1% 1% 1% 1%

2,796 2,781 2,734 2,796 ### ### ### ###

12.8% -0.5% -1.7% 2.3% 2.3% 2.3% 2.3% 2.3%

960 983 967 977 986 996 ### ###

-3.8% 2.4% -1.6% 1% 1% 1% 1% 1%

12,931 13,162 13,156 13,288 13,420 13,555 13,690 13,827

-6.4% 1.8% 0.0% 1% 1% 1% 1% 1%

2,264 2,292 2,388 2,423 2,459 2,495 2,531 2,568

2.4% 1.2% 4.2% 1.5% 1.5% 1.5% 1.5% 1.5%

$15,195 $15,454 $15,544 $15,711 $ 15,879 $ 16,049 $ 16,221 $ 16,396

Min Avg Max
-2.1% 1.8% 7.4%

Min Avg Max

-15.6% -6.4% 6.5%

Min Avg Max

-18.4% -6.9% 4.5%

Min Avg Max

-1.7% 2.3% 12.8%

Min Avg Max

-17.4% -5.1% 2.4%

Min Avg Max

-8.0% -3.2% 1.8%

Min Avg Max

-1.9% 1.5% 4.2%
COST MODEL 2014A 2015A 2016A

Costs and expenses ($m)

Cost of sales 7,168 6,635 6,072
Selling, general and administrative expenses (excl. D&A) 5,982 5,464 5,249
Other (income) expense, net 570 62 37
Total costs and expenses ($m) 13,720 12,161 11,358

Costs and expenses (% contribution)

Cost of sales 52% 55% 53%
Selling, general and administrative expenses (excl. D&A) 44% 45% 46%
Other (income) expense, net 4% 1% 0%
Total 100% 100% 100%

Costs and expenses (as % of sales)

Cost of sales 41% 41% 40%
Operating, selling, general and administrative expenses 35% 34% 35%
Other (income) expense, net 3% 0% 0%
Total cost and expenses 79% 75% 75%

Net Sales 17,277 16,034 15,195

Provion for Incomes Tax

EBT 3533 3533 2763
Provion for Incomes Tax 1194 1215 1152
% of EBT 33.80% 34.39% 41.69%

Non Controlling Interest

Net Income Including NCI 2339 1548 2586
Non Controlling Interest 159 164 145
% of NCI 6.80% 10.59% 5.61%
2017A 2018A 2019E 2020E 2021E 2022E 2023E

6,174 6,313 6,441 6,468 6,537 6,607 6,678

5,497 5,389 5,451 5,510 5,569 5,628 5,689
194 148 157 195 160 162 164
11,865 11,850 12,050 12,172 12,266 12,398 12,531

52% 53% 53% 53% 53% 53% 53%

46% 45% 45% 45% 45% 45% 45%
2% 1% 1% 2% 1% 1% 1%
100% 100% 100% 100% 100% 100% 100%

Min Average Max

40% 41% 41% 41% 41% 41% 41% 40% 41% 41%
36% 35% 35% 35% 35% 35% 35% 34% 35% 36%
1% 1% 1% 1% 1% 1% 1% 0% 1% 3%
76% 75% 77% 77% 76% 76% 76%

15,454 15,544 15,711 15,879 16,049 16,221 16,396

3738 3487 3464 3796 3833 3915 3961

1313 906 900 986 996 1017 1029
35.13% 25.98% 25.98% 25.98% 25.98% 25.98% 25.98%

2174 2558 2896 2847 2919 2944 2954

150 158 179 206 211 213 213 Min Average Max
6.90% 6.18% 7.22% 7.22% 7.22% 7.22% 7.22% 5.61% 7.22% 10.59%
 2013A 2014A 2015A 2016A

Property, plant & equipment 4083 4080 3796 3840

Depreciation and amortization 439 442 449 443
as a % of PP&E 11% 11% 12% 12%

Property, plant & equipment (opening)

Capital expenditures (additions)
Depreciation and amortization
Property, plant & equipment (closing)

Capital expenditure ($m) 2014A 2015A 2016A

Payments for property and equipment 670 757 691 593

as % of sales 4% 4% 4% 4%

Total revenues 17,420 17,277 16,034 15,195

PPE (Break-up for 2013)

Land
Building Improvements
Machinery and equipment
Other Equipment
Total

Total Capex
Breakup
Land
Building Improvements
Machinery and equipment
Other Equipment
Total Capex

Building Improvements - Straight Line Method

Useful Life 40.0 Years
Building Improvement 1604.0
Depreciation Expense (existing)
 Capex Useful Life
2019 75.6 40.0 Years
2020 76.4 40.0
2021 77.2 40.0
2022 78.0 40.0
2023 78.9 40.0

Depreciation (Building Improvements)

Machinery & Equipments

Useful Life 15.0 Years
Machinery & Equipments 5157.0
Depreciation Expense (existing)

Capex Useful Life

2019 243.0 18.0 Years
2020 245.6 18.0
2021 248.2 18.0
2022 250.9 18.0
2023 253.6 18.0

Total Depreciation (Machinery & Equipments)

Other Equipment
Useful Life 15.0 Years
Other Equipment 1423.0
Depreciation Expense (existing)

Capex Useful Life

2019 $67.0 18.0 Years
2020 67.8 18.0
2021 68.5 18.0
2022 69.2 18.0
2023 70.0 18.0

Total Depreciation (Other Equipment)

Total Depreciation Expense

 AMORTIZATION OF INTANGIBLES ASSETS
2012 2013 2014 2015
Net Sales - 17,420 17,277 16,034
Additions to Intangibles
Additions to Intangibles as % of Net Sales

Beginning Net Intangibles

Additions to Intangibles
(Amortization Expense)
(Intangible Sales and write offs)
Ending Net Intangibles
2017A 2018A 2019E 2020E 2021E 2022E 2023E

4072 3881 3,864 3,833 3,787 3,727 3,653

475 511 488 508 527 547 566 Min
12% 13% 13% 13% 14% 15% 16% 10.8%

3,881 3,864 3,833 3,787 3,727

471 476 481 487 492
488 508 527 547 566
3,881 3,864 3,833 3,787 3,727 3,653

2017A 2018A 2019E 2020E 2021E 2022E 2023E

553 436 393 397 401 406 410

4% 3% 3% 3% 3% 3% 3% 2.5%

15,454 15,544 15,711 15,879 16,049 16,221 16,396

2017 2018 Remaining useful life Proportion of Assets

159.0 152.0 NA 1.8%
1,655.0 1,604.0 40 19.2%
5,165.0 5,157.0 18 61.9%
1,481.0 1,423.0 18 17.1%
8,460.0 8,336.0

7.2 7.2 7.3 7.4 7.5

75.6 76.4 77.2 78.0 78.9
243.0 245.6 248.2 250.9 253.6
67.0 67.8 68.5 69.2 70.0
392.8 397.0 401.2 405.5 409.9

2019 2020 2021 2022 2023

40.10 40.10 40.10 40.10 40.10

 0.9 1.9 1.9 1.9 1.9
1.0 1.9 1.9 1.9
1.0 1.9 1.9
1.0 2.0
1.0

41.0 42.9 44.9 46.8 48.8

343.8 343.8 343.8 343.8 343.8

6.7 13.5 13.5 13.5 13.5

6.8 13.6 13.6 13.6
6.9 13.8 13.8
7.0 13.9
7.0

350.5 364.1 377.8 391.7 405.7

94.9 94.9 94.9 94.9 94.9

1.9 3.7 3.7 3.7 3.7

1.9 3.8 3.8 3.8
1.9 3.8 3.8
1.9 3.8
1.9

96.7 100.5 104.3 108.1 112.0

488.3 507.5 527.0 546.6 566.4

 2016 2017 2018 2019 2020 2021 2022 2023
15,195 15,454 15,544 15,711 15,879 16,049 16,221 16,396

1,637.0 1,587.0 1,537.0 1,487.0 1,437.0

- - - - -
(50.0) (50.0) (50.0) (50.0) (50.0)

1,637.0 1,587.0 1,537.0 1,487.0 1,437.0 1,387.0

Average Max
11.8% 13.2%

Conservative =Average

Because No of stores opened every year are same

DEBT SCHEDULE 2018 2019
Cash Flow Available for Financing Activities 1,886.0 2,782.2
Proceeds from/ (Repurchase of) Equity (1,200.0)
Dividends (2,119.1)
Option Proceeds 1,743.7
+ Beginning Cash Balance 726.0
- Minimum Cash Balance (500.0)
Cash Available for Debt Repayment 1,432.8
Long Term Debt Issuance -
Long Term Debt (Repayments) -
Cash Available for Revolving Credit Facility 1,432.8

Revolving Credit Facility

Beginning Balance -
Discretionary (Paydown)/ Borrowings -
Ending Balance - - -

Long Term Debt

Beginning Balance 6,354.0
Issuance -
(Repayment/ Amortization) 0.00
Ending Balance 6,354.0 6,354.0

Long Term Debt 6,105.0

Current Portion of Long Term Debt 249.0

Revolving Credit Facility - -

1.5%
-

Long Term Debt 6,105.0

2.4%
148.0

Total Interest Expense 148.00

Cash Balances 1,329.4
1.00%
13.29
 2020 2021 2022 2023
2,913.2 3,011.3 3,049.7 3,074.4
(1,200.0) (1,200.0) (1,200.0) (1,200.0)
(2,060.4) (2,112.8) (2,130.2) (2,137.5)
- - - -
1,932.8 1,336.6 737.1 500.0
(500.0) (500.0) (500.0) (500.0)
1,085.6 535.1 (43.4) (263.1)
- - - -
(249.0) (298.0) (886.0) (893.0)
836.6 237.1 (929.4) (1,156.1)

- - - 929.4
- - 929.4 1,156.1
- - 929.4 2,085.4

6,354.0 6,105.0 5,807.0 4,921.0

- - - -
(249.0) (298.0) (886.0) (893.0)
6,105.0 5,807.0 4,921.0 4,028.0

5,807.0 4,921.0 4,028.0 4,028.0

298.0 886.0 893.0 -

- 464.7 1,507.4 2,085.4

1.5% 1.5% 1.5% 1.5%
- 7.0 22.6 31.3

5,956.0 5,364.0 4,474.5 4,028.0

2.4% 2.5% 2.7% 2.3%
143.0 136.0 121.0 92.0

143.00 142.97 143.61 123.28

1,634.7 1,036.8 618.5 500.0
1.00% 1.00% 1.00% 1.00%
16.35 10.37 6.19 5.00
WORKING CAPITAL SCHEDULE

2013A 2014A 2015A 2016A

Net Sales 17,420 17,277 16,034 15,195
Cost of Sales 7,219 7,168 6,635 6,072

Working Capital Balance 2013A 2014A 2015A 2016A

Receivables 1636 1552 1427 1411
Inventories 1425 1382 1180 1171
Other current assets 908 840 807 441

Total Non Cash Current Assets 3969 3774 3414 3023

Accounts payable 1,343 1,231 1,110 1,124

Other accruals 2,089 1,917 1,845 1,727
Total Non Cash Current
Liabilities 3,432 3,148 2,955 2,851

FORECAST

DSO 34.3 32.8 32.5 33.9

DPO 67.9 62.7 61.1 67.6
DIO 72.0 70.4 64.9 70.4
Net Trade Cycle 38.4 40.5 36.3 36.7

Other current assets 5% 5% 5% 3%

Other accruals 29% 27% 28% 28%
2017A 2018A 2019E 2020E 2021E 2022E
15,454 15,544 15,711 15,879 16,049 16,221
6,174 6,313 6,441 6,468 6,537 6,607

2017A 2018A 2019E 2020E 2021E 2022E

1480 1400 1,444 1,459 1,475 1,491
1221 1250 1,242 1,247 1,260 1,274
403 417 628 635 642 649

3104 3067 3314 3341 3377 3413

1,212 1,222 1,181 1,186 1,199 1,211

1,831 1,696 1,804 1,811 1,830 1,850

3,043 2,918 2,985 2,997 3,029 3,062

35.0 32.9 33.5 33.5 33.5 33.5

71.7 70.7 66.9 66.9 66.9 66.9
72.2 72.3 70.4 70.4 70.4 70.4
35.5 34.5

3% 3% 4% 4% 4% 4%
30% 27% 28% 28% 28% 28%
2023E
16,396
6,678

2023E
1,507
1,287
656

3450

1,224
1,870

3,094

33.5 Min Average Max

66.9 32.5 33.5 35.0
70.4 61.1 66.9 71.7
64.9 70.4 72.3
Min Average Max
4% 3% 4% 5%
28% 27% 28% 30%
 ### 2015 2016 2017 2018
Beginning Balance - Basic (actual) 892.7 883.1 874.7
Shares Issued (actual realization of options) 9.6 10.8 7.0
Shares Repurchased (19.3) (19.2) (18.8)
Ending Balance - Basic (actual) 892.7 883.1 874.7 862.9

Basic Weighted Average Shares 902.2 891.8 881.8 870.6

Effects of Options & Restricted Stock Units 7.5 6.6 6.0 2.4
Diluted Weighted Average Shares 909.7 898.4 887.8 873.0

### 2015 2016 2017 2018

Beginning Equity Balance
Net Income
Issuance/ (Repurchase) of Equity
Dividends Paid
Option Proceeds
Ending Equity Balance ### (102)

Share Repurchase Assumptions

Current Year EPS ### 1.53 2.74 2.30 2.76
Assumed Current Year EPS Multiple 25.3x 31.8x 23.9x
Implied Share Price 69.3 72.9 65.9
Shares Repurchased - millions 19.271 19.186 18.787
Amount Repurchased ( $ outgo) 1,551 1,335 1,399 1,238

New Shares from Exercised Options

New Shares from Exercised Options - millions 8.5 9.7 6.0
Average Strike Price 52.2 52.4 54.5
Option Proceeds 347 446 507 329

Restricted Stock Units (RSUs) 1.11 1.11 0.96

Dividend Assumptions
Total Dividends Paid 1,493 1,508 1,529 1,591
Net Income 1,384 2,441 2,024 2,400
Dividend Payout Ratio 108% 62% 76% 66%
 2019 2020 2021 2022 2023
862.9 873.9 858.3 843.3 828.7
26.4 - - - -
(15.4) (15.6) (14.9) (14.6) (14.3)
873.9 858.3 843.3 828.7 814.5

868.4 866.1 850.8 836.0 821.6

1.2 1.2 1.2 1.2 1.2
869.5 867.2 852.0 837.2 822.8

2019 2020 2021 2022 2023

(102) 1,039 421 (184) (783)
2,717 2,642 2,709 2,731 2,740
(1,200) (1,200) (1,200) (1,200) (1,200)
(2,119) (2,060) (2,113) (2,130) (2,137)
1,744 - - - -
1,039 421 (184) (783) (1,380)

3.109 3.078 3.21 3.30 3.36

25.0x 25.0x 25.0x 25.0x 25.0x
77.7 76.9 80.3 82.4 84.1
15.439 15.596 14.944 14.566 14.266
1,200 1,200 1,200 1,200 1,200

26.4
66.0
1,744

1.18 1.18 1.18 1.18 1.18

2,119 2,060 2,113 2,130 2,137

2,717 2,642 2,709 2,731 2,740
78.0% 78.0% 78.0% 78.0% 78.0% 78%