Kimberly-Clark (KMB) investor relations material

Strategic transformation and portfolio reshaping

• Shifted from an industrial to a consumer products focus, leveraging strong engineering roots and building world-class consumer capabilities.

• Reshaped the portfolio to address lower organic growth, gross margins, and high EPS volatility, notably through a joint venture with Suzano to reduce pulp cost exposure.

• Portfolio changes are expected to accelerate progress toward 2030 targets, with a focus on higher-margin North American and personal care businesses.

• Stranded costs from the Suzano transaction are being addressed, with plans to fully offset them within a few years post-close.

• Remaining portfolio is two-thirds personal care, with significant opportunities for premiumization and margin improvement.

Marketing, brand building, and innovation

• Increased advertising investment by $500–$600 million, shifting almost entirely to digital for targeted, efficient reach.

• In-housed creative talent and adopted AI-driven digital marketing, especially in China, resulting in a record 11 Cannes Lion Awards this year.

• Campaigns focus on destigmatizing categories and expanding markets, using celebrity partnerships and memorable, positive messaging.

• Product innovation centers on absorbent core technology, rolled out globally and driving market share gains.

• R&D investment is 1.9% of net sales, with CapEx rising to support supply chain transformation and new product platforms.

Financial outlook and productivity

• Gross productivity program of $3 billion+ over five years is ahead of schedule, with additional $200 million in SG&A savings.

• EPS for 2025 will reflect ongoing operations, discontinued IFP business, and a one-time depreciation benefit; dilution from the transaction will be offset by cost savings.

• Productivity improvements are reaching world-class levels, with a lean, agile, and market-centric operating model.

• Confident in achieving or exceeding 2030 margin and EBITDA targets ahead of schedule due to portfolio mix and operational improvements.

• Category growth is steady, with some short-term promotional pressures in diapers; focus remains on long-term value over short-term volume.