essentials for a better life - kimberly-clark · k-c’s global business plan ... tissue and paper...
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Leading the World in Essentials for a Better Life
2015 Fact Sheet
w w w . k i m b e r l y - c l a r k . c o m
Net Sales Growth EPS Growth* Capital Spending ROIC Improvement* Dividend Increases
K-C’s Global Business Plan (GBP) is the company’s strategic plan that prioritizes growth opportunities and applies greater �nancial discipline to our operations. The plan was launched in mid-2003 and is designed to generate sustainable growth and improved shareholder returns. Below are the key �nancial objectives of the GBP and actual company performance since 2003.
Global Business Plan
GBP ANNUAL OBJECTIVE 2004 - 2014 AVERAGE
*Adjusted data. Visit company website (www.kimberly-clark.com/investors) for discussion of adjustments and certain reconciliations to GAAP data.
Kimberly-Clark is headquartered in Dallas, Texas with approximately 43,000 employees worldwide and operations in 35 countries. K-C’s global brands, including �ve billion-dollar brands, are sold in more than 175 countries.
• Diapers • Training/Youth/Swim Pants • Infant and Child Wipes• Feminine Care• Incontinence Care
• Facial Tissue, BathroomTissue and Paper Towelsfor away-from-home use
• Wipers• Safety Products
• Facial Tissue • Bathroom Tissue • Paper Towels
PERSONAL CARE CONSUMER TISSUE K-C PROFESSIONAL
4%6%
4.8%50 basis points
9%
3–5%Mid- to high-single digits
4.5–5.5% of net sales20–40 basis points
In line with EPS
Our Global Businesses and Brands
Leading the World in Essentials for a Better Life
w w w . k i m b e r l y - c l a r k . c o m
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Company Strategies
• MANAGE PORTFOLIO TO BALANCE GROWTH, PROFITABILITY AND CASH FLOW
• INVEST IN BRANDS, INNOVATION AND GROWTH INITIATIVES
• DELIVER SUSTAINABLE COST REDUCTION
• DISCIPLINED CAPITAL MANAGEMENT TO IMPROVE ROIC AND RETURN CASH TO SHAREHOLDERS
Highlights
EMPLOYING CAPITAL DISCIPLINE
K-C has reduced capital spending as a percent of sales since 2003, and improved the allocation of investments in expansion, innovation and cost savings opportunities. At the same time, we have signi�cantly improved working capital e�ciency. Capital discipline is central to our plan to continue to improve ROIC, provide a top-tier dividend payout and return excess cash to shareholders.
FOCUSING ON INNOVATION
K-C has a strong legacy of innovation, backed by our proprietary technologies. In fact, we’ve created �ve of the eight major consumer product categories in which we compete. K-C’s innovation philosophy is based on identifying insights into what consumers want and need and then translating those insights into innovative solutions that generate growth.
DELIVERING SUSTAINABLE COST REDUCTION
K-C has a strong track record of reducing costs on an ongoing basis. Our FORCE (Focused On Reducing Costs Everywhere) program has generated $2.5 billion of savings since the inception of the Global Business Plan in 2003. We deliver sustainable cost savings largely through improving manufacturing productivity, optimizing product cost design and negotiating raw material price savings through our global procurement organization.
DRIVING RAPID GROWTH IN DEVELOPING & EMERGING MARKETS
K-C’s business in developing and emerging markets has grown organic sales at a double-digit compound annual rate and improved pro�t margins over the last �ve years. We will continue to execute targeted expansion and growth plans, with a particular focus on markets in China, Eastern Europe and Latin America and our Personal Care and K-C Professional brands.
LEVERAGING THE POWER OF K-C’S BRANDS
K-C has some of the most recognized brands in the world. Our brands hold the No. 1 or No. 2 share position in 80 countries, and we have �ve billion-dollar brands: Huggies, Scott, Kleenex, Cottonelle and Kotex. We have increased advertising spending on our brands by more than $200 million over the last �ve years, an increase of 100 basis points as a percent of sales, in order to support product innovation and growth initiatives, and to further improve brand equity and market share.
$19,724
3,184
2,268
2,845
3.36
15,526
Financial Highlights
From 6/30/03 through 12/31/14; includes changes in stock price and reinvestment of dividends.
*Adjusted data. Visit company website (www.kimberly-clark.com/investors) for discussion of adjustments and certain reconciliations to GAAP data.
54%
46%North America
Outside North America
34%
49%
17%
Consumer Tissue
Personal Care
K-C Professional
WANT TO KNOW MORE ABOUT KIMBERLY-CLARK?• To contact Investor Relations with your questions, call Paul Alexander, Vice President, at 972-281-1440• To view our annual report, SEC filings or news releases, visit www.kimberly-clark.com/investors• To obtain copies of our 2014 Annual Report on Form 10-K, SEC filings or news releases, call 800-639-1352
‘10 ‘11 ‘12 ‘13 ‘14 ‘10 ‘11 ‘12 ‘13 ‘14 ‘10 ‘11 ‘12 ‘13 ‘14 ‘10 ‘11 ‘12 ‘13 ‘14
$372
$265
$295
$310 $320
Kimberly-Clark
2014 FINANCIAL OVERVIEW ($ millions, except per share amounts)
TOTAL SHAREHOLDER RETURNS SINCE INITIATING GBP
2014 NET SALES BY GEOGRAPHY 2014 NET SALES BY BUSINESS
FORCE COST SAVINGS
($ millions)
PRIMARY WORKINGCAPITAL
Cash Conversion Cycle (Days)
DIVIDEND PAYOUT
SHARE REPURCHASES
($ millions)
50 47 4539 32
$800
$1,240$1,300
$1,200
$2,000
56% 58% 56% 56%61%
S&P Consumer Staples Index
S&P 500167%
248%
227%
Net Sales
Operating Pro�t
Net Income Attributable to K-C*
Cash Provided by Operations
Dividends Declared Per Share
Total Assets
Leading the World in Essentials for a Better Life