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 Actual
Objective CAGR
Sales 3-5% + 7%

Operating Margin* 40-50 bps - 70 bps

mid/high
E.P.S.* + 5%
single digits
ROIC* 40-50 bps + 10 bps
high single/low
Dividend + 11%
double digits
*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 $4.00 - $4.20

July Guidance $4.10 - $4.25

+ Net selling prices − Organization optimization

initiative (15 cent drag)
+ Cost savings
− Volumes down slightly
+ Partial FX recovery

1st Half $1.95

2nd Half $2.15 - $2.30

7
2009 Priorities

1 Improve Margins

2 Maximize Cash Flow

Pursue Targeted
3
Growth Initiatives

Leverage Key
4
Capabilities

8
 Improve Margins 1

Gross 32.8% Operating 13.8%

Margin Margin 13.4%
(First Half) (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 1
Initiative

• Announced in June
Improve
• Salaried workforce reduction profitability &
– Approximately 1,600 positions cash flow,
provide funds
• Costs $140 - $150 million
for future
• Annualized savings $150 million growth
– $60 million in back-half of 2009

10
Maximize Cash Flow 2

Cash Provided
By Operations
• Strong cash generation
($ Billion)
– Despite pension contributions
$1.7 (Up $0.4 B vs. 2008)
42%
Improvement
• Significant progress reducing
$1.2 working capital

2008 2009
First Half

11
Working Capital Improvement 2

Cash
Conversion Cycle • On track to exceed 3-day
(Days) improvement target
73
• Inventory reduction focus – down
8-Day
$435 million since year-end
Improvement
– Significant production curtailment

65
– SKU rationalization
– Improved manufacturing cycle-times
and end-to-end planning
• Ongoing programs to improve
2008 1st Half 2009 receivables collections and
Average
payables terms
12
Maximize Cash Flow 2

• Capital spending below GBP

– 4.5% of sales vs. 5-6% Maintaining
solid balance
• No share repurchases planned
sheet and
in 2009
financial
• Dividend increased 3% flexibility
– 37th consecutive year of increase

– Top-tier payout, attractive yield

13
Pursue Targeted Growth 3
Initiatives

Actual
• Strengthen Baby/Child, Adult, Organic Sales
Family Care Growth vs. GBP
Target of 3-5%
• Accelerate growth in D&E markets
4.9%
• Build on regional positions of 3.0%
strength in Feminine Care
• Extend K-C Professional portfolio
• Expand Health Care business
5-Yr CAGR 2009 YTD
Through
2008

14
Success in D&E Markets 3

Organic Sales • Near-term focus on price realization

Growth
− Some moderation in volumes

11%
12% • Strong performance continues in
high-potential markets
− Personal Care volumes in BRICIT
countries +10% YTD

• Optimistic about growth prospects

5-Yr CAGR 2009 YTD in D&E
Through 2008

15
K-C Professional Safety Business 3

• Increasing presence in higher-

margin $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
Leverage Key Capabilities 4

Strength of
brands
and key
capabilities
more Brands

important
than ever

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

Taking steps to
Managing well ensure K-C
in a difficult emerges a leaner,
environment stronger, faster
competitor

Doing what’s Confident that

right for the GBP will deliver
long-term 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