Kimberly-Clark (KMB) Deutsche Bank dbAccess 2024 Global Consumer Conference summary

Strategic vision and growth opportunities

• Focus on leveraging powerhouse brands, science-driven innovation, and scalable capabilities to drive growth and performance.

• Targeting organic growth by understanding consumer journeys and critical market entry points, especially in daily-use categories with high retention and low substitution.

• Emphasis on premiumization, with a significant shift from value to premium segments in key markets like North America and China.

• Ambition to be natural forest-free across the product portfolio by 2030, with significant progress already underway and sustainability initiatives targeting reductions in water use and greenhouse gas emissions.

• Science and technology leveraged as competitive advantages, especially in product development and consumer benefits.

Operational transformation and margin optimization

• Reorganizing into three focused business segments and a new operating model aligning resources by region and category to enhance agility, connectivity, and execution.

• Targeting $3 billion in gross productivity and $500 million in working capital savings over the next several years through value stream simplification, network optimization, and automation.

• SG&A savings of approximately $200 million expected in the next few years, to be reinvested for growth and margin leverage.

• Integrated margin management approach addresses all cost elements and aims for lowest total delivered cost.

• Enhanced risk management and supplier relationships to reduce earnings volatility and better manage input cost cycles.

Consumer and market dynamics

• Demand remains resilient but bifurcated, with premium segments growing among higher-income consumers and value offerings maintained for lower-income segments.

• Low elasticity and high durability of demand in core categories like diapers and tissue, with innovation and value focus across all price tiers.

• Promotion is used strategically to drive trial of innovation, not as a primary growth lever, to avoid diluting category value.

• Confident in volume and market share recovery, with a focus on category growth rather than price wars.

• Product innovation tailored to regional needs, with notable share gains in China.