Kimberly-clark Corporation · NASDAQ:KMB
Kimberly-clark — Q1 2023 Earnings Presentation
23 slides from Kimberly-clark's earnings presentation, Apr 25, 2023
Slide 1: 1Q 2023 Earnings Conference Call
1Q 2023 Earnings Conference Call April 25, 2023 1
Slide 2: Safe Harbor
Safe Harbor Forward Looking Statements Certain matters contained in this presentation concerning the outlook, anticipated financial and operating results, raw material, energy and other input costs, anticipated currency rates and exchange risks, including in Argentina and Turkey, net income from equ
Slide 3: Agenda
Agenda 1 Innovation Update Mike Hsu Chairman/CEO 2 1Q Results Nelson Urdaneta 3 2023 Financial Outlook CFO 4 Q&A Christina Cheng Investor Relations 3
Slide 4: Better Care For A Better World
Better Care For A Better World 150 years in business 1 in 4 of the world’s population use one of our products every day 175 countries where our 1+ billion people with half the brands are sold environmental footprint 4
Slide 5: Strong Start To The Year
Strategy to elevate our Margin recovery categories and expand our in progress Strong Start markets is working To The Year New capabilities (innovation, Enabling brand revenue growth mgt, digital, investments to drive top in-market execution) driving line momentum and top line results deliver better
Slide 6: 2023 Priorities
Elevate our categories Play to Win Expand our markets 2023 Priorities Margin recovery Profitable Growth Brand investment and cost discipline 6
Slide 7: Driving Top Line Momentum
Driving Top Line Momentum 3-year average 1Q 23 (full year 2020-2022) Organic growth1 Total Company Personal Care Consumer Tissue KC Professional +11% +7% +6% +5% +4% +3% +3% +1% Total Company Personal Care Consumer Tissue KCP 1. Organic growth describes the impact of changes in volume, net selling p
Slide 8: Innovation
Innovation 8
Slide 9: Good Night's Sleep With 35% Fewer Leaks
Good Night’s Sleep With 35% Fewer Leaks • Bedwetting affects one in six children • Dedicated XL size offering for 13- to 17-year-olds • 9 in 10 likely to repurchase 9
Slide 10: Revolutionary Overnight Protection
Revolutionary Overnight Protection New absorbent core Instantly absorb with no rewetting POLAR NIGHT Anti-leak Moon Bar cushion back 100% no back leaks Edge guard No side leaks 10
Slide 11: Cottonelle product innovation
Ny raising the bar oe... | for clean | Ay Henan, : TS h a i ‘eS 3X x “om own 2. 4ay3 more absorbent" ¢ ws reduces odor ne lex FRAN for sensitive skin \ Lae ag ] es e&° Cotfonelle Cotfonelle
Slide 12: Innovation That Redefines The Washroom
Innovation That Redefines The Washroom Fully customizable Longer lasting unit Easy to install Easy to maintain 12
Slide 13: 1Q Results
1Q 23 Results 13
Slide 14: Momentum Continues In 1Q
Momentum Continues In 1Q 23 Sustained topline momentum, strong margin expansion 1Q 22 1Q 23 Organic Sales 1 Gross Margin Operating Margin2 Earnings Per Share 2 33.2% 15.1% $1.67 +10% +5% $1.35 12.3% 29.8% 2-year avg. +8% +340 bps +280 bps +24% 1. Organic net sales describes the impact of changes in
Slide 15: Personal Care
Personal Care Organic growth1 Organic growth +8% on a two-year average basis +13% Favorable net revenue realization and mix, healthy underlying growth Market share led gains in Feminine and Adult Care driven by innovation and in-market execution +3% Benefits from innovation offset lower births 1Q 22
Slide 16: Consumer Tissue
Consumer Tissue Organic growth1 Healthy organic growth driven by favorable net revenue realization and improving service levels +7% +7% Growth across all regions led by developed markets Refreshed Cottonelle Ultra Comfort and Ultra Clean in the US 1Q 22 1Q 23 1. Organic net sales describes the impac
Slide 17: K-C Professional
K-C Professional Organic growth1 Healthy organic growth across key categories and regions +11% Favorable product mix and net revenue realization Net sales exceeded 2019 levels +6% Strong demand for new ICON dispenser 1Q 22 1Q 23 1. Organic net sales describes the impact of changes in volume, net sel
Slide 18: Focus On Margin Recovery In An Inflationary Environment
Focus On Margin Recovery In An Inflationary Environment Revenue Growth Gross Margin1 Management 35.0% 33.2% 32.8% Commodity / FX 30.2% 30.5% 29.8% Headwinds 1Q 22 2Q 22 3Q 22 4Q 22 1Q 23 FY 19 vs. PY (420) bps (170) bps (10) bps +270 bps +340 bps Cost Savings 1. Refers to adjusted gross margin where
Slide 19: Returned $22B In Last 10 Years
Returned $22B In Last 10 Years Cash Returned to Shareholders 1Q23 (in billions USD) Cash Flow From Operations $1.9 $613M vs $204M LY Strong operating profit growth and $1.2 $0.9 $0.8 $0.8 $0.7 $0.9 $0.7 $0.4 working capital management $0.1 1Q23 $1.5 $1.6 Capital Spending $1.2 $1.3 $1.3 $1.3 $1.4 $1.
Slide 20: 2023 Outlook
2023 Outlook 2 – 4% +LDD 6% – 10% Sustainable Growth and ORGANIC OPERATING EPS GROWTH2 SALES GROWTH1 PROFIT GROWTH Margin Recovery Maintain topline growth momentum with Prev: 2% – 6% Prev: +MSD - HSD pipeline of innovation, commercial agility and disciplined investment Gross margin improvement to fu
Slide 21: A Better World: Growing For Good
A Better World: Growing For Good BETTER BETTER PLANET BETTER BETTER SOCIETY SOCIETY BETTER PLANET BETTER PRODUCTS Diversity, Build Equity, a culture Inclusion of integrity and WORKPLACE Uplift every person in our Healthbelonging and Well-being communities Innovating for more Safeguarding Ethics ando
Slide 22: Summary
Summary We are continuing our growth momentum We are driving margin recovery We are investing behind our capabilities and brands We are confident in our ability to deliver balanced and sustainable growth and create shareholder value 22
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