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

Strategic vision and growth opportunities

• Focus on leveraging strong brands, science-driven innovation, and top talent to drive growth and performance.

• Targeting five core daily-need categories with a $240 billion addressable market and 12 leading brands, including Huggies, Kotex, Depend, and Kleenex.

• Emphasis on category elevation and premiumization, with significant shifts from value to premium segments in key markets.

• Innovation platforms center on skin health, comfort, leak protection, and sustainability, with new products and technologies launching globally.

• Sustainability initiatives target natural forest-free products by 2030 and significant reductions in water use and greenhouse gas emissions.

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 and execution.

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

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

• Integrated margin management approach addresses all cost elements and revenue growth levers for margin expansion.

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

Consumer trends and market dynamics

• Demand remains resilient, especially among higher-income consumers, with premium segments continuing to grow.

• Commitment to offering value at every tier, ensuring accessibility for all consumer segments.

• Low elasticity and high retention in core categories, with daily-use products less sensitive to price changes.

• Focus on innovation-driven trial and brand loyalty rather than over-promotion or price wars.

• Ongoing investment in product quality and marketing to support category growth and defend against price-based competition.