Kimberly-Clark (KMB) Barclays 18th Annual Americas Select Conference summary

Strategic evolution and portfolio transformation

• Executing a major strategic shift by reducing international consumer tissue exposure via a joint venture with Suzano and expanding into consumer health through the proposed Kenvue acquisition.

• Powering Care strategy focuses on driving a virtuous cycle of growth through superior product innovation, cost efficiency, and enhanced global operating models.

• Emphasis on serving all consumer segments, not just premium, by innovating across value tiers and addressing evolving consumer needs globally.

• Joint venture with Suzano aims to stabilize margins and leverage complementary strengths in tissue and pulp production, with mechanisms for future exit and value realization.

• Proceeds from the Suzano deal will help fund the Kenvue acquisition, maintaining balance sheet strength.

Financial performance and risk management

• Achieved positive volume mix growth in North America and international personal care, outpacing industry trends.

• Maintains discipline in managing commodity cost volatility, with hedging covering 80% of input costs and a toolkit developed from recent crises.

• Projected $50 million in Q2 input cost inflation, with plans to fully mitigate as the year progresses; potential for higher costs if oil remains elevated.

• Ongoing productivity gains (6% gross productivity in 2024 and 2025 Q1) and overhead savings support margin expansion.

Kenvue acquisition rationale and integration

• Acquisition aims to create a global health and wellness leader, leveraging category growth tailwinds from aging populations and complementary geographic strengths.

• Integration planning focuses on best talent from both organizations, with a leadership team selected through rigorous assessment.

• Cost synergy target of $1.9 billion (13% of Kenvue 2025 sales) is supported by detailed workstreams and past execution in productivity, procurement, and marketing.

• Portfolio management will remain disciplined, with ongoing evaluation of underperforming brands and potential divestitures.