Sept 2009 Kimberly CLark KMB Presentation

8/14/2019 Sept 2009 Kimberly CLark KMB Presentation

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A Premier Health & Hygiene Company

Back-To-School

ConferenceSeptember 9, 2009


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2

Agenda

Global Business Plan (GBP)

Strategies and results

2009 Plan and Priorities

Progress update

Q&A


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Headlines

Executing well in a challengingenvironment

Managing factors we control

Protecting and strengthening

long-term health of company

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Global Business Plan Strategies

Balanced approach to growth &profitability to drive ROIC

Portfolio management

Customer, shopper, user focus

Increase speed to market

Sustainable cost reduction

Returning cash to shareholders


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ImprovementObjective

ActualCAGR

Sales 3-5% + 7%

Operating Margin* 40-50 bps - 70 bps

E.P.S.*mid/high

single digits+ 5%

ROIC* 40-50 bps + 10 bps

Dividendhigh single/lowdouble digits

+ 11%

*Operating Margin, E.P.S. and ROIC are adjusted. The reasons why we make these adjustments are in the Investors section of our website at www.kimberly-clark.com.

2004 2008 Results vs. GBP


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2009 Plan

Sales down 4-6% (FX -6% to -7%)

Organic growth 1-2%

Operating margin up 70120 bps

Price realization, cost deflation, costsavings, currency headwind, pensionexpense increase (80 basis point drag)

E.P.S. $4.10 to $4.25

2008 = $4.13

ROIC up at least 20-30 bps

2009 results compared to 2008 adjusted operating margin, E.P.S. and ROIC.


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Increased E.P.S. Outlook in July

April Guidance $4.00 - $4.20July Guidance $4.10 - $4.25

1st Half $1.952nd Half $2.15 - $2.30

Organization optimizationinitiative (15 cent drag)

Volumes down slightly

+Net selling prices

+Cost savings

+Partial FX recovery


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2009 Priorities

8

Maximize Cash Flow

Leverage KeyCapabilities

Pursue TargetedGrowth Initiatives

Improve Margins1

2

3

4


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Net selling prices +5%

Cost deflation $255 million Cost savings $128 million, full-year target raised $50 million

Strategic marketing up 30 basis points

Organization optimization severance charges -120 bps

Improve Margins 1

30.2%

32.8%

2008 2009

GrossMargin

(First Half)

13.8%

13.4%

2008 2009

OperatingMargin

(First Half)

2008 margins adjusted.


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Organization OptimizationInitiative

Announced in June

Salaried workforce reduction

Approximately 1,600 positions

Costs $140 - $150 million

Annualized savings $150 million

$60 million in back-half of 2009

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Improveprofitability &

cash flow,provide fundsfor futuregrowth

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Maximize Cash Flow

Strong cash generation

Despite pension contributions(Up $0.4 B vs. 2008)

Significant progress reducingworking capital

2

$1.2

$1.7

2008 2009

Cash ProvidedBy Operations

($ Billion)

42%Improvement

First Half


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Working Capital Improvement

On track to exceed 3-dayimprovement target

Inventory reduction focus down

$435 million since year-end Significant production curtailment

SKU rationalization

Improved manufacturing cycle-times

and end-to-end planning

Ongoing programs to improvereceivables collections andpayables terms

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2

73

65

2008Average

1st Half 2009

CashConversion Cycle

(Days)

8-DayImprovement


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Maximize Cash Flow

Capital spending below GBP

4.5% of sales vs. 5-6%

No share repurchases plannedin 2009

Dividend increased 3%

37th consecutive year of increase Top-tier payout, attractive yield

Maintaining

solid balance

sheet andfinancial

flexibility

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Pursue Targeted GrowthInitiatives

Strengthen Baby/Child, Adult,Family Care

Accelerate growth in D&E markets

Build on regional positions ofstrength in Feminine Care

Extend K-C Professional portfolio

Expand Health Care business

ActualOrganic Sales

Growth vs. GBPTarget of 3-5%

4.9%

3.0%

5-Yr CAGRThrough

2008

2009 YTD

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Success in D&E Markets

Organic SalesGrowth

Near-term focus on price realization

Some moderation in volumes

Strong performance continues inhigh-potential markets

Personal Care volumes in BRICITcountries +10% YTD

Optimistic about growth prospectsin D&E

3

11%

12%

5-Yr CAGRThrough 2008

2009 YTD


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K-C Professional Safety Business

Increasing presence in higher-margin $17 billion safetycategory

Strong innovation and newproduct results

Jackson Safety acquisition

further expands portfolio Safety business now in excess

of 10% of KCP sales

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Leverage Key Capabilities

Brands

Strength ofbrands

and keycapabilitiesmore

important

than ever

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Strategic Marketing

News drives equity, equity drives growth

Spending increasing

Up about $100 million in 2008

Up nearly $50 million (local currency) YTD 2009

Integrated, media-neutral strategy

Increasing allocation to non-traditional channelsand experiential programs

Supporting D&E growth, innovation

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Product Innovation

Acting on customer, shopper,user insights

Meaningful innovation

Margin accretive

Continuing to innovate acrossbrand portfolio

2009 launches off to good start Supporting with integrated

marketing

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Customer Development

Becoming an indispensable partner

Virtual reality tools

Customer innovation summits

Improving overall supply chain

efficiency

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Summary

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Managing well

in a difficult

environment

Taking steps toensure K-C

emerges a leaner,

stronger, fastercompetitor

Doing whatsright for the

long-term

Confident thatGBP will deliver

shareholder value


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Reminders

Forward-Looking Information

Certain matters in todays presentations constitute forward-looking statements and are based uponmanagements expectations and beliefs concerning future events impacting the company. There can be

no assurance that these future events will occur as anticipated or that the companys results will be as

estimated. For a description of certain factors that could cause the companys future results to differ

materially from those expressed in any such forward-looking statements, see Item IA of the companys

Annual Report on Form 10-K for the year ended December 31, 2008 entitled Risk Factors.

Non-GAAP Financial Measures

In our presentations, we refer to certain non-GAAP financial measures, including adjusted earnings pershare, adjusted ROIC, organic sales and adjusted gross and operating margin. Management believes thatreporting in this manner enhances investors understanding and analysis of the companys performance.

For additional information on why we make these adjustments and reconciliations to comparable

measures under generally accepted accounting principles, see the supplemental information posted to theInvestors section of our web site (www.kimberly-clark.com).


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A Premier Health & Hygiene Company

Q&A

Sept 2009 Kimberly CLark KMB Presentation

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