Kimberly-Clark (KMB) investor relations material

Strategic rationale and acquisition overview

• Acquisition of Kenvue aims to create a leading personal wellness company, leveraging both firms' strengths and complementary portfolios.

• Focus on higher-margin, higher-growth categories, especially health and wellness, driven by demographic trends like aging populations globally.

• Significant geographic and portfolio complementarity identified, with opportunities for cross-market distribution and brand expansion.

• Plug-and-play management systems and integration experience from prior large-scale deals provide confidence in successful execution.

• Due diligence included deep legal, regulatory, and scientific review, especially regarding product risks and litigation exposure.

Synergy realization and operational plans

• $1.9 billion in cost synergies targeted within three years post-close, with 80% expected in the first two years.

• Key synergy drivers: G&A overhead reduction, procurement and supply chain optimization, and sales/marketing efficiencies.

• Lean operating model and top-quartile G&A benchmarks expected to drive further upside beyond initial targets.

• Revenue synergies primarily from geographic complementarity, with additional long-term potential from combined R&D and product adjacencies.

• Integration planning underway, with emphasis on maintaining momentum in both base and acquired businesses.

Brand revitalization and portfolio management

• Proven playbook for revitalizing underperforming brands, focusing on growth mindset, accountability, and targeted investment.

• Willingness to prune or reshape the combined portfolio to maximize long-term shareholder value, following a disciplined approach.

• Kenvue's leadership already executing portfolio optimization; future actions will align with value creation principles.