Sept 2009 Kimberly Clark Kmb Presentation

Back-To-School Conference September 9, 2009

A Premier Health & Hygiene Company

Agenda • Global Business Plan (GBP) – Strategies and results

• 2009 Plan and Priorities – Progress update

• Q&A

2

Headlines

• Executing well in a challenging environment • Managing factors we control

• Protecting and strengthening long-term health of company

3

Global Business Plan Strategies • Balanced approach to growth & profitability to drive ROIC

• Portfolio management • Customer, shopper, user focus

• Increase speed to market • Sustainable cost reduction • Returning cash to shareholders 4

2004 – 2008 Results vs. GBP Improvement Objective

Actual CAGR

3-5%

+ 7%

40-50 bps

- 70 bps

E.P.S.*

mid/high single digits

+ 5%

ROIC*

40-50 bps

+ 10 bps

high single/low double digits

+ 11%

Sales

Operating Margin*

Dividend

*Operating Margin, E.P.S. and ROIC are adjusted. The reasons why we make these adjustments are in the Investors section of our website at www.kimberly-clark.com.

5

2009 Plan • Sales down 4-6% (FX -6% to -7%) – Organic growth 1-2%

• Operating margin up 70–120 bps – Price realization, cost deflation, cost savings, currency headwind, pension expense increase (80 basis point drag)

• E.P.S. $4.10 to $4.25 – 2008 = $4.13

• ROIC up at least 20-30 bps 2009 results compared to 2008 adjusted operating margin, E.P.S. and ROIC.

6

Increased E.P.S. Outlook in July April Guidance July Guidance

+ Net selling prices + Cost savings

+ Partial FX recovery

1st Half 2nd Half

$4.00 - $4.20 $4.10 - $4.25 − Organization optimization initiative (15 cent drag) − Volumes down slightly

$1.95 $2.15 - $2.30 7

2009 Priorities 1

Improve Margins

2

Maximize Cash Flow

3

Pursue Targeted Growth Initiatives

4

Leverage Key Capabilities 8

1

Improve Margins Gross Margin

32.8%

(First Half)

Operating Margin

13.8% 13.4%

(First Half)

30.2%

2008

• • • • •

2009

2008

2009

Net selling prices +5% Cost deflation $255 million Cost savings $128 million, full-year target raised $50 million Strategic marketing up 30 basis points Organization optimization severance charges -120 bps

2008 margins adjusted.

9

Organization Optimization Initiative • Announced in June • Salaried workforce reduction – Approximately 1,600 positions

• Costs $140 - $150 million • Annualized savings $150 million

1

Improve profitability & cash flow, provide funds for future growth

– $60 million in back-half of 2009

10

Maximize Cash Flow Cash Provided By Operations ($ Billion)

$1.7 42% Improvement

• Strong cash generation – Despite pension contributions (Up $0.4 B vs. 2008)

• Significant progress reducing working capital

$1.2

2008

2

2009

First Half

11

Working Capital Improvement Cash Conversion Cycle (Days)

73 8-Day Improvement 65

2

• On track to exceed 3-day improvement target • Inventory reduction focus – down $435 million since year-end – Significant production curtailment – SKU rationalization

– Improved manufacturing cycle-times and end-to-end planning 2008 Average

1st Half 2009

• Ongoing programs to improve receivables collections and payables terms 12

Maximize Cash Flow

2

• Capital spending below GBP – 4.5% of sales vs. 5-6%

• No share repurchases planned in 2009 • Dividend increased 3%

Maintaining solid balance sheet and financial flexibility

– 37th consecutive year of increase – Top-tier payout, attractive yield

13

Pursue Targeted Growth Initiatives • Strengthen Baby/Child, Adult, Family Care

• Accelerate growth in D&E markets

3

Actual Organic Sales Growth vs. GBP Target of 3-5% 4.9%

• Build on regional positions of strength in Feminine Care

3.0%

• Extend K-C Professional portfolio • Expand Health Care business

5-Yr CAGR Through 2008

2009 YTD

14

Success in D&E Markets Organic Sales Growth 11%

12%

3

• Near-term focus on price realization − Some moderation in volumes

• Strong performance continues in high-potential markets − Personal Care volumes in BRICIT countries +10% YTD

5-Yr CAGR Through 2008

2009 YTD

• Optimistic about growth prospects in D&E

15

K-C Professional Safety Business

3

• Increasing presence in highermargin $17 billion safety category • Strong innovation and new product results • Jackson Safety acquisition further expands portfolio • Safety business now in excess of 10% of KCP sales

16

4

Leverage Key Capabilities

Strength of brands and key capabilities more important than ever

Brands

17

Strategic Marketing

4

• News drives equity, equity drives growth • Spending increasing – Up about $100 million in 2008 – Up nearly $50 million (local currency) YTD 2009

• Integrated, media-neutral strategy – Increasing allocation to non-traditional channels and experiential programs

• Supporting D&E growth, innovation

18

Product Innovation

4

• Acting on customer, shopper, user insights – Meaningful innovation – Margin accretive

• Continuing to innovate across brand portfolio – 2009 launches off to good start

• Supporting with integrated marketing

19

Customer Development

4

• Becoming an indispensable partner • Virtual reality tools • Customer innovation summits • Improving overall supply chain efficiency

20

Summary

Managing well in a difficult environment

Taking steps to ensure K-C emerges a leaner, stronger, faster competitor

Doing what’s right for the long-term

Confident that GBP will deliver shareholder value

21

Reminders Forward-Looking Information Certain matters in today’s presentations constitute forward-looking statements and are based upon management’s expectations and beliefs concerning future events impacting the company. There can be no assurance that these future events will occur as anticipated or that the company’s results will be as estimated. For a description of certain factors that could cause the company’s future results to differ materially from those expressed in any such forward-looking statements, see Item IA of the company’s Annual Report on Form 10-K for the year ended December 31, 2008 entitled “Risk Factors.” Non-GAAP Financial Measures In our presentations, we refer to certain non-GAAP financial measures, including adjusted earnings per share, adjusted ROIC, organic sales and adjusted gross and operating margin. Management believes that reporting in this manner enhances investors’ understanding and analysis of the company’s performance. For additional information on why we make these adjustments and reconciliations to comparable measures under generally accepted accounting principles, see the supplemental information posted to the Investors section of our web site (www.kimberly-clark.com).

22

Q&A

A Premier Health & Hygiene Company