Powerful Strategies Driving Global Growth Colgate-Palmolive Company / 2016 Annual Report Financial Highlights (Dollars in Millions Except Per Share Amounts) 2016 2015 Change Worldwide Net Sales $ 15,195 $ 16,034 -5.0% Organic Sales Growth +4.0% Gross Profit Margin 60.0% 58.6% +140 basis points Operating Profit $ 3,837 $ 2,789 +38% Operating Profit Margin 25.3% 17.4% +790 basis points (1) IAN COOK Net Income Attributable to Colgate-Palmolive Company $ 2,441 $ 1,384 +76% (1) Diluted Earnings Per Share $ 2.72 $ 1.52 +79% Chairman, President Dividends Paid Per Share $ 1.55 $ 1.50 +3% and Chief Executive Officer Operating Cash Flow $ 3,141 $ 2,949 +7% Year-end Stock Price $ 65.44 $ 66.62 -2% Hills Pet Nutrition North America 21% Africa/Eurasia Latin America 24% (1) Net income attributable to Colgate-Palmolive Company and diluted earnings per share in 2016 include a gain from the saleEurope of land 1 in6% Mexico, charges related to the 2012 Restructuring Program and certain other items. Net income attributable to Colgate-Palmolive Company and diluted earnings per share in 2015 include Asia Pacific 1% Asia a gain from the sale of the Company’s laundry detergent business in the South Pacific, a charge related to the deconsolidation of the Company’s Venezuelan Africa/Eurasia operations, charges related to the 2012 Restructuring Program and certain other items. 6% Hill’s Pet Nutrition 15% Dear ColgateEurope/South ShareholdersPacific 2016 Net Sales By Geographic Region 2016 Net Sales By Market Maturity Hills Pet Nutrition Latin America North America 21% Africa/Eurasia In the face of challenging macroeconomic Our market shares remain strong around Latin America 24% North America *The Company’s results are discussed conditions worldwide, significant foreign the world with Colgate’s leading share of the Europe 16% excluding a charge resulting from the Developed Markets 51% deconsolidation of the Company’s Asia Pacific Asia exchange volatility and slowing category global toothpaste market at 44.0% for the 1% Emerging Markets 49% Venezuelan operations, charges Africa/Eurasia 6% growth, we are pleased toEmerging have achieved Markets year. As referenced in the title of this year’s related to the 2012 Restructuring Hill’s Pet Nutrition 15% another year of solid results in 2016. While annual report, Powerful Strategies Driving Program and certain other items. Europe/South Pacific A complete reconciliation between net sales declined 5.0%, Developedorganic sales, Market Global Growth, we continue to drive our reported results (GAAP) and results or net sales excluding foreign exchange, growth with clear strategies that provide the excluding these items (Non-GAAP), Latin America including a description of such items, (1) (2)(3) (3) Net Sales Gross Profit Margin Diluted Earnings Dividends Paid acquisitions, divestments and the impact agility needed to meet the headwinds that is available on Colgate’s website and ($ billions) (% of sales) (1) ($ per share) ($ per share) on page 12 of this report. Diluted 60.3 of the deconsolidation of the Company’s come in any given year. We remain sharply (2) 1.55 earnings per share growth for full 1.4 1.3 (2) 2.93 North America 1.1 2.4 2.1(2) (2) 1.50 60.0 (2) 2.1 year 2016, on a currency-neutral 2.68 1.42 Venezuelan operations, grew 4.0%. This focused on our four strategic initiatives, Developed Markets(1) 51% basis, eliminates from diluted 5.8 (1) (1) 16.0 5.7 5.7 2.2 1.33 growth was led by emerging markets where (1) Engaging To Build Our Brands, Innovation earnings per share growth (GAAP) Emerging5.3 Markets 49% 2.5 1.22 15.2 5.6 5.5 5.6 2.3 2.36 Emerging Markets organic sales grew a strong 6.5%. Gross For Growth, Effectiveness And Efficiency and the impact of the items described 5.1 above and the period-over-period profit margin, operating profit margin and net Leading To Win, in order to deliver sustained changes in foreign exchange rates in the translation of local currency Developed Market income as a percent to sales all increased in profitable growth. 1.52 results into U.S. dollars. Accordingly, 2016. Diluted earnings per share were flat on for purposes of calculating diluted a dollar basis but increased double digit on Strengthening Engagement earnings per share growth for full year 2016, on a currency-neutral ’12 ’13 ’14 ’15 ’16 ’12 ’13 ’14 ’15 ’16 ’12 ’13 ’14 ’15 ’16 ’12 ’13 ’14 ’15 ’16 a currency-neutral basis, after also excluding To Build Our Brands basis, full year 2016 local currency results, which include the impact of Venezuela’s results in both periods.* Engaging consumers everywhere with foreign currency transaction gains We maintained our strong balance integrated marketing campaigns that and losses, are translated into U.S. dollars using 2015 average foreign (1) 2013-2016 exclude charges related to the 2012 Restructuring Program. 2012 excludes costs related to the sale of land in Mexico. A complete reconciliation sheet and cash flow, which, along with the deliver our brand messages has long been exchange rates by quarter. between reported results (GAAP) and results excluding these items (Non-GAAP), including a description of such items, is available on Colgate’s website and on page 12 of this report. Company’s consistent organic sales growth, a cornerstone of our growth strategy. Now, (2) 2016 excludes a gain from the sale of land in Mexico, charges related to the 2012 Restructuring Program and certain other items. 2015 excludes a gain from led the Board of Directors to authorize a we are strengthening that engagement by the sale of the Company’s laundry detergent business in the South Pacific, a charge related to the deconsolidation of the Company’s Venezuelan operations, 3% increase in the quarterly cash dividend, increasing our use of digital media across charges related to the 2012 Restructuring Program and certain other items. 2013 and 2014 exclude charges related to the 2012 Restructuring Program, remeasurement charges resulting from devaluations and effective devaluations in Venezuela and certain other items. 2012 excludes charges related to the 2012 effective in the second quarter of 2016. This the board from websites to social media to Restructuring Program and certain other items. A complete reconciliation between reported results (GAAP) and results excluding these items (Non-GAAP), including a description of such items, is available on Colgate’s website and on page 12 of this report. represents our 54th consecutive year of div- mobile. On a global basis, digital media now (3) All per share amounts have been restated for the 2013 two-for-one stock split. idend increases and our 121st consecutive accounts for 20% to 25% of our working Cover: Photo taken in South Africa. year of paying a dividend. media expenditure, up ten-fold in the last 1 Financial Highlights (Dollars in Millions Except Per Share Amounts) 2016 2015 Change Worldwide Net Sales $ 15,195 $ 16,034 -5.0% Organic Sales Growth +4.0% Gross Profit Margin 60.0% 58.6% +140 basis points Operating Profit $ 3,837 $ 2,789 +38% Operating Profit Margin 25.3% 17.4% +790 basis points (1) IAN COOK Net Income Attributable to Colgate-Palmolive Company $ 2,441 $ 1,384 +76% (1) Diluted Earnings Per Share $ 2.72 $ 1.52 +79% Chairman, President Dividends Paid Per Share $ 1.55 $ 1.50 +3% and Chief Executive Officer Operating Cash Flow $ 3,141 $ 2,949 +7% Year-end Stock Price $ 65.44 $ 66.62 -2% Hills Pet Nutrition North America 21% Africa/Eurasia Latin America 24% (1) Net income attributable to Colgate-Palmolive Company and diluted earnings per share in 2016 include a gain from the saleEurope of land 1 in6% Mexico, charges related to the 2012 Restructuring Program and certain other items. Net income attributable to Colgate-Palmolive Company and diluted earnings per share in 2015 include Asia Pacific 1% Asia a gain from the sale of the Company’s laundry detergent business in the South Pacific, a charge related to the deconsolidation of the Company’s Venezuelan Africa/Eurasia operations, charges related to the 2012 Restructuring Program and certain other items. 6% Hill’s Pet Nutrition 15% Dear ColgateEurope/South ShareholdersPacific 2016 Net Sales By Geographic Region 2016 Net Sales By Market Maturity Hills Pet Nutrition Latin America North America 21% Africa/Eurasia In the face of challenging macroeconomic Our market shares remain strong around Latin America 24% North America *The Company’s results are discussed conditions worldwide, significant foreign the world with Colgate’s leading share of the Europe 16% excluding a charge resulting from the Developed Markets 51% deconsolidation of the Company’s Asia Pacific Asia exchange volatility and slowing category global toothpaste market at 44.0% for the 1% Emerging Markets 49% Venezuelan operations, charges Africa/Eurasia 6% growth, we are pleased toEmerging have achieved Markets year. As referenced in the title of this year’s related to the 2012 Restructuring Hill’s Pet Nutrition 15% another year of solid results in 2016. While annual report, Powerful Strategies Driving Program and certain other items. Europe/South Pacific A complete reconciliation between net sales declined 5.0%, Developedorganic sales, Market Global Growth, we continue to drive our reported results (GAAP) and results or net sales excluding foreign exchange, growth with clear strategies that provide the excluding these items (Non-GAAP), Latin America including a description of such items, (1) (2)(3) (3) Net Sales Gross Profit Margin Diluted Earnings Dividends Paid acquisitions, divestments and the impact agility needed to meet the headwinds that is available on Colgate’s website and ($ billions) (% of sales) (1) ($ per share) ($ per share) on page 12 of this report.