Slides
Page 1
POWERING CARE Q3 2025 EARNINGS October 30, 2025
Page 2
Certain matters contained in this presentation concerning the business outlook, including raw material, energy and other input costs, our plans and expectations regarding the pending International Family Care and Professional (“IFP”) joint venture transaction with Suzano (“IFP Transact ion”), the anticipated charges and savings from the 2024 Transformation Initiative, cash flow and uses of cash, growth initiatives, innovations, marketing and other spe nding, net sales, anticipated currency rates and exchange risks, including the impact in Argentina and Türkiye, effective tax rate, contingencies and anticipated transactions of Kimberly-Clark, including dividends, share repurchases and pension contributions, constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and are based upon management's expectations and beliefs concerning future events impacting Kimberly-Clark. There can be no assurance that these future events will occur as anticipated or that our results will be as estimated. Forward-looking statements speak only as of the date they were made, and we undertake no obligation to publicly update them. The assumptions used as a basis for the forward-looking statements include many estimates that, among other things, depend on the achievement of future cost savings and projected volume increases. In addition, many factors outside our control, including risks and uncertainties around the pending IFP Transaction (including risks related to delays or failure to complete the proposed transaction, the incurrence of significant transaction and separation costs, adverse market reactions, regulatory or legal challenges, and operational disruptions), risks that we are not able to realize the anticipated benefits of the 2024 Transformation Initiative (including risks related to disruptions to our business or operations or related to any delays in implementation), war in Ukraine (including the related responses of consumers, customers, and suppliers and sanctions issued by the U.S., the European Union, Russia or other countries), government trade or similar regulatory actions (including current and potential trade and tariff actions affecting the countries where we operate and the resulting negative impacts on our supply chain, commodity costs, and consumer spending), pandemics, epidemics, fluctuations in foreign currency exchange rates, the prices and availability of our raw materials, supply chain disruptions, disruptions in the capital and credit markets, counterparty defaults (including customers, suppliers and financial institutions with which we do business), failure to realize the expected benefits or synergies from our acquisition and disposition activity, impairment of goodwill and intangible assets and our projections of operating results and other factors that may affect our impairment testing, changes in customer preferences, severe weather conditions, regional instabilities and hostilities (including the war in Israel), potential competitive pressures on selling prices for our products, energy costs, general economic and political conditions globally and in the markets in which we do business, as well as our ability to maintain key customer relationships, could aff ect the realization of these estimates. The factors described under Item 1A, “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2024, or in our other SEC filings, among others, could cause our future results to differ from those expressed in any forward-looking statements made by us or on our behalf. Other factors not presently known to us or that we presently consider immaterial could also affect our business operations and financial results. Huggies, Pull-Ups, Andrex, Depend, Poise, Cottonelle, Kleenex, WypAll, Kotex are registered trademarks of Kimberly-Clark Worldwide Inc. Please see our filings for a complete list. 2 Forward-Looking Statements
Page 3
2025 3 Our Strategy to Drive Value Creation Scale Initiatives: Performing While Transforming Embark on Powering Care: Establish a Strong Foundation2024 2026+ Accelerate Growth: Leverage Scale for Industry-Leading Returns
Page 4
ACCELERATE PIONEERING INNOVATION OPTIMIZE OUR MARGIN STRUCTURE WIRE OUR ORGANIZATION FOR GROWTH Volume+mix led organic growth in a dynamic environment while maintaining global weighted share International Personal Care gained weighted share, with broad-based gains in Diapers & Pants Q3 Gross Productivity at 6.5% of Adjusted COGS1 Value stream simplification redefining best product at lowest cost across countries and categories Overhead efficiencies driving strong SG&A leverage Fast-tracking our efforts to bring the best of K-C into every market we operate in, under Russ Torres as COO. 4 Q3 2025: Focused Execution in a Challenging Environment POWERING CARE 1Non-GAAP financial measures. Refer to the appendix of this presentation for reconciliations of our GAAP to non-GAAP measures.
Page 5
5 Building Brand Love through Consumer-Centric Innovation and Resonant Creative Campaigns ACCELERATE PIONEERING INNOVATION Innovation across the value spectrum aided by strong creatives driving volume + mix led organic growth
Page 6
6 Stepping Up Gross Productivity Savings Gross Productivity includes Productivity generated from end-to-end Integrated Margin Management and from Procurement initiatives OPTIMIZE OUR MARGIN STRUCTURE Targeting the high end of 5 - 6% Gross Productivity Savings in 20252 Value Stream: Design to Value initiatives including standardized product platforms and strong price negotiations unlocking value Network Optimization: Optimizing manufacturing and distribution footprint including external contract manufacturing among others Scalable Automation: Unlocking efficiencies through automation 6.5% of Adj COGS1 Q3 Actuals YTD actuals AutomationNetwork OptimizationValue Stream 1Non-GAAP financial measures. Refer to the appendix of this presentation forreconciliations of our GAAP to non-GAAP measures. 2 Kimberly-Clark does not provide a reconciliation of these forward-looking non-GAAP financial measures to the most directly comparable GAAP financial measures on a forward-looking basis because it is unable to predict certain adjustment items without unreasonable effort. 5.8% of Adj COGS1
Page 7
SEGMENT RESULTS & HIGHLIGHTS
Page 8
8 North America 1Represents the change in net sales excluding the impacts of currency translation and divestitures and business exits. Organic Sales Growth is a non-GAAP financial measure. See Appendix for reconciliations of our GAAP to non-GAAP measures. • +2.6% Q3 volume growth driven by strong innovations and targeted activations, aided by ~50bp tailwind from lapping prior year hurricane-related impacts • Ongoing strength in Youth Pants and Facial Tissue market share performance offset by softness in other categories • +2.1% YTD Organic Growth driven by +2.6% volume growth with all categories growing volume • YTD operating profit down 1 percent driven by 340bp headwind from divestitures and business exits Organic Growth1 OPERATING MARGIN Operating Profit Growth +2.1% +2.2% VOLUME + MIX 2.7 % 2.1% (0.2%) (1.0%) Q3’25 YTD Q3’25 YTD 23.6% 24.3%
Page 9
9Little Movers® HuggFit 360° with Giannis Antetokounmpo and Daughter Eva +1.8 Billion National Paid Media impressions to date 2.4 Billion Earned media Impressions 60.2 Million Unique Users reached in June NBA Playoffs YouTube Masthead ~30% higher ROI Vs. average ROI of all ads in last 52 weeks OUT-MARKET
Page 10
10 International Personal Care Organic growth1 Organic growth1 +3.6% +3.0% OPERATING MARGINVOLUME + MIX Organic Growth1 Operating Profit Growth • +3.6% Q3 volume+mix growth led by +5% volume growth in Focus Markets, including mid-to-high single digit growth across China, South Korea, Australia and double-digit growth in Indonesia • Weighted share growth led by gains in Diapers & Pants with China +270 bps, South Korea +230 bps, Brazil +90 bps and Indonesia +150 bps versus year ago • YTD Organic Growth driven by strong volume+mix gains partly offset by investments to strengthen price-value propositions in select Asian and Latin American markets • Operating profit inflected to positive growth in Q3 as productivity gains offset targeted investments in value propositions across several markets 1Non-GAAP financial measure. Refer to the appendix of this presentation for reconciliations of our GAAP to non-GAAP measures. YTDQ3’25 Organic growth1 2.1% 0.8% YTDQ3’25 Organic growth1 6.5% (9.7%) 14.9% 14.0%
Page 11
11 Premium Choice for Parents Seeking the Best Care for Baby’s Sensitive Skin Super Soft Derma Complex Ultimate softness for baby’s delicate skin Dermatologically Proven with Pro-vitamin B5 4.9 / 5.0 Product Rating 82% Purchase Intent among new users A Trusted Solution For Delicate Skin Proven Product Superiority +230 bps L3M Huggies share vs. year ago Market Share Gain 11 OUT-INNOVATE
Page 12
Scaling Winning Solutions with Huggies Cushion Protection in Brazil Softer waistband: Hugs baby's tummy and legs to prevent red marks Better absorption quality Up to 12h anti leakage protection Newcoushioned wa i s t b a nd 12 +90 bps Huggies L3M share vs. year ago OUT-INNOVATE
Page 13
K-C Confidential GREAT IDEAS TRAVEL Now in Australia, ‘Giggle Dribble’ Crushes the Stigma Achieved Highest Ever Market Share at 58.7%, +130bps Vs. Year Ago 112 NEWS PIECES 25M REACH 98% REACH THROUGH TV 77% YOUTUBE COMPLETION RATES +17pp VS BENCHMARK +57% 3s HOOK RATE VS 2024 OUT-MARKET
Page 14
14 FINANCIAL RESULTS & 2025 OUTLOOK
Page 15
0.1% (3.2%) 2.5% 1.6% Q3’25 Broad-based Q3 volume growth while brands hold global weighted share Strong gross productivity and overhead efficiency deliver solid operating profit performance in dynamic environment Stable, consistent earnings delivery reflecting structural stability, disciplined execution 2025 full year Adjusted Free Cash Flow2 on track for ~$2B Organic Sales Growth1 Q3 2025: Balanced Performance in a Softening Operating Environment Adjusted Operating Profit Growth1 Q3’25 Adjusted EPS Growth1 attributable to Kimberly-Clark (0.5%) (2.2%) Q3’25 Adjusted Free Cash Flow1 YTD $1,263M 1 Non-GAAP financial measures. Refer to the appendix of this presentation forreconciliations of our GAAP to non-GAAP measures. 2 Kimberly-Clark does not provide a reconciliation of these forward-looking non-GAAP financial measures to the most directly comparable GAAP financial measures on a forward-looking basis because it is unable to predict certain adjustment items without unreasonable effort. 0.0% Constant-Currency1 Constant-Currency1 YTD YTD YTD (2.4%) (1.1%) (0.7%)
Page 16
16 2025 Outlook 1 Kimberly-Clark does not provide a reconciliation of these forward-looking non-GAAP financial measures to the most directly comparable GAAP financial measures on a forward-looking basis because it is unable to predict certain adjustment items without unreasonable effort. 2. Personal Protective Equipment Volume+Mix Led Organic Sales Growth1 In Line With Market Growth • Weighted-Average Market growth currently approximately 2% • Reported results expected to be negatively impacted by ~290 bps from combination of PPE2 divestiture and U.S. private label diaper business exit and ~100 bps from currency translation Low Single Digit Constant-Currency Adjusted Operating Profit Growth1 • Includes ~380 bps negative impact from PPE divestiture and U.S. private label diaper business exit • Results expected to be negatively impacted by ~70 bps from currency translation Low-to-Mid Single Digit Constant-Currency Adjusted EPS Growth1 Attributable to Kimberly- Clark • Includes ~320 bps negative impact from PPE divestiture and U.S. private label diaper business exit • Expect ~100 bps combined headwind to EPS growth from items below operating profit including higher net interest expense, a higher adjusted effective tax rate including benefits from lower shares outstanding among others • Expect $0.16 tailwind to EPS from reduction in D&A in results of Discontinued Operations • Results expected to be negatively impacted by ~150 bps from currency translation, including impact on Income from Equity Interests Adjusted Free Cash Flow1 of ~$2B • Includes approximately $1.0-$1.2B of capital expenditures
Page 17
2025 17 Powering Care Is Powering Our Performance Scale Initiatives: Performing While Transforming Embark on Powering Care: Establish a Strong Foundation2024 2026+ Accelerate Growth: Leverage Scale for Industry-Leading Returns
Page 18
APPENDIX
Page 19
The following provides the reconciliation of the non-GAAP financial measures provided in this presentation to the most closely related GAAP measure. These measures include: Organic Sales Growth, Adjusted Cost of Goods Sold, Adjusted Gross Profit, Adjusted Operating Profit, Adjusted Earnings per Share Attributable to Kimberly -Clark, and Adjusted Free Cash Flow. Unless specifically stated, all discussions regarding non-GAAP financial measures reflect results from our continuing operations for all periods presented. Where applicable, we also refer to the associated margin for each of these metrics, which is calculated as the proportion of the metric relative to the applicable period’s net sales. Organic Sales Growth is defined as the change in Net Sales, as determined in accordance with U.S. GAAP, excluding the impacts of currency translation and divestitures and business exits. Adjusted Gross Profit (Adjusted Cost of Products Sold), Adjusted Operating Profit and Adjusted Earnings per Share Attributabl e to Kimberly-Clark are defined as Gross Profit (Cost of Products Sold), Operating Profit and Diluted Earnings per Share Attributable to Kimberly -Clark, as determined in accordance with U.S. GAAP, excl uding the impacts of certain items that management believes do not reflect our underlying operations, and which are discussed in further detail within our current quarter earnings release and periodic SEC filings. These adjustments include the presentation of each metric on a constant-currency basis by excluding the effect that foreign currency exchange rate fluctuations have on year-to-year comparability given the volatility in foreign currency exchange rates. Adjusted Free Cash Flow is defined as cash provided by operations (inclusive of discontinued operations), as determined in ac cordance with U.S. GAAP, less capital expenditures and excluding cash charges associated with our previously announced restructuring activities (the 2018 Global Restructuring Program and the 2024 Transformation Initiative) and IFP separation costs. The income tax effect of these non-GAAP items on the Company's Adjusted Earnings per Share Attributable to Kimberly-Clark is calculated based upon the tax laws and statutory income tax rates applicable in the tax jurisdiction(s) of the underlying non-GAAP adjustment. The impact of these non-GAAP items on the Company’s effective tax rate represents the difference in the effective tax rate calculated with and without the non-GAAP adjustment on Income Before Income Taxes and Equity Interests and Provision for income taxes. We use these non-GAAP financial measures to assist in comparing our performance on a consistent basis for purposes of business decision making by removing the impact of certain items that we do not believe reflect our underlying and ongoing operations. We believe that presenting these non-GAAP financial measures is useful to investors because it (i) provides investors with meaningful supplemental information regarding financial performance by excluding certain items, (ii) permits investors to view performance using the same tools that management uses to budget, make operating and strategic decisions, and evaluate historical performance, and (iii) otherwise provides supplemental information that may be useful to investors in evaluating our results. We believe that the presentation of these non-GAAP financial measures, when considered together with the corresponding U.S. GAAP financial measures and the reconciliation to th ose measures, provides investors with additional understanding of the factors and trends affecting our business than could be obtained absent these disclosures. These non-GAAP financial measures are not meant to be considered in isolation or as a substitute for the comparable GAAP measures, and they should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. There are limitations to these non -GAAP financial measures because they are not prepared in accordance with GAAP and may not be comparable to similarly titled measures of other companies due to potential differences in methods of calculation and items being excluded. We compensate for these limitations by using these non-GAAP financial measures as a supplement to the GAAP measures and by providing reconciliations of the non-GAAP and comparable GAAP financial measures. Certain non-GAAP financial measures referenced in this presentation are presented on a forward-looking basis. Kimberly-Clark does not provide a reconciliation of these forward-looking non-GAAP financial measures to the most directly comparable GAAP financial measures on a forward-looking basis because it is unable to predict certain adjustment items without unreasonable effort. Please note that the se items could be material to Kimberly-Clark’s results calculated in accordance with GAAP. For further information about the non-GAAP adjustments included in the following slides, refer to our current quarter earnings r elease and Quarterly Report on Form 10-Q. 19 Non-GAAP Financial Measures
Page 20
20 Non-GAAP: Reconciliation of Organic Sales Growth Three Months Ended September 30, 2025 Percentage change vs. the prior year period NA IPC Total Net Sales Growth (0.8) 1.9 0.1 Currency Translation - 0.1 0.1 Divestitures and Business Exits 3.3 0.1 2.2 Organic Sales Growth(a) 2.7 2.1 2.5 (a) Table may not foot due to rounding.
Page 21
21 Non-GAAP: Reconciliation of Organic Sales Growth Nine Months Ended September 30, 2025 Percentage change vs. the prior year period NA IPC Total Net Sales Growth (2.2) (2.5) (2.6) Currency Translation 0.2 3.0 1.2 Divestitures and Business Exits 4.0 0.2 3.0 Organic Sales Growth(a) 2.1 0.8 1.6 (a) Table may not foot due to rounding.
Page 22
22 Non-GAAP: Reconciliation of Adjusted Gross Profit Three Months Ended September 30 Nine Months Ended September 30 $ Millions 2025 2024 2025 2024 Gross Profit $1,493 $1,564 $4,458 $4,844 2024 Transformation Initiative 34 31 169 76 Adjusted Gross Profit $1,527 $1,595 $4,627 $4,920
Page 23
23 Non-GAAP: Reconciliation of Adjusted Cost of Products Sold Three Months Ended September 30 Nine Months Ended September 30 $ Millions 2025 2024 2025 2024 Cost of Products Sold $2,657 $2,580 $7,909 $7,857 2024 Transformation Initiative (34) (31) (169) (76) Adjusted Cost of Products Sold $2,623 $2,549 $7,740 $7,781
Page 24
24 Non-GAAP: Reconciliation of Adjusted Operating Profit Three Months Ended September 30 Nine Months Ended September 30 $ Millions 2025 2024 2025 2024 Operating Profit $621 $1,026 $1,844 $2,280 2024 Transformation Initiative 62 124 258 359 Sale of PPE Business - (565) - (565) Impairment of Intangible Assets - 97 - 97 Adjusted Operating Profit $683 $682 $2,102 $2,171 Year-Over-Year Growth 0.1% (3.2%) Currency Translation (0.1%) 0.8% Year-Over-Year Growth Constant-Currency 0.0% (2.4%)
Page 25
25 Non-GAAP: Reconciliation of Adjusted Earnings Per Share Attributable to Kimberly-Clark Three Months Ended September 30 Nine Months Ended September 30 2025 2024 2025 2024 Diluted Earnings per Share Attributable to Kimberly-Clark $1.34 $2.69 $4.57 $6.21 2024 Transformation Initiative 0.14 0.31 0.64 0.76 OBBBA 0.29 - 0.29 - IFP Separation Costs 0.04 - 0.11 - IFP Repatriated Earnings 0.01 - 0.04 - IFP Tax Basis Adjustment - - 0.02 - Sale of PPE Business - (1.34) - (1.34) Impairment of Intangible Assets - 0.17 - 0.17 Adjusted Earnings per Share Attributable to Kimberly-Clark $1.82 $1.83 $5.67 $5.80 Year-Over-Year Growth (0.5%) (2.2%) Currency Translation (0.5%) 1.6% Year-Over-Year Growth Constant-Currency(a) (1.1%) (0.7%) (a)Table may not foot due to rounding.
Page 26
26 Non-GAAP: Reconciliation of Adjusted Free Cash Flow For the Year Ended $ Millions 2020 2021 2022 2023 2024 2025 YTD Cash Provided by Operations $3,729 $2,730 $2,733 $3,542 $3,234 $1,805 Capital Expenditures (1,217) (1,007) (876) (766) (721) (741) Cash Restructuring Charges 249 235 65 - 156 183 IFP Cash Separation Costs - - - - - 16 Adjusted Free Cash Flow $2,761 $1,958 $1,922 $2,776 $2,669 $1,263
Page 27
27 Press Releases – Previous Quarters Title Hyperlink Kimberly-Clark Announces Year-End 2020 Results And 2021 Outlook Q4 & FY 2020 Kimberly-Clark Announces Year-End 2021 Results And 2022 Outlook Q4 & FY 2021 Kimberly-Clark Announces Year-End 2022 Results And 2023 Outlook Q4 & FY 2022 Kimberly-Clark Announces Year-End 2023 Results And 2024 Outlook Q4 & FY 2023 Kimberly-Clark Announces First Quarter 2024 Results and Raises 2024 Outlook Q1 2024 Kimberly-Clark Announces Second Quarter 2024 Results and Raises 2024 Outlook Q2 2024 Kimberly-Clark Announces Third Quarter 2024 Results and Reaffirms 2024 Profit Outlook Q3 2024 Kimberly-Clark Delivers Solid Results in First Year of Transformation Q4 & FY 2024 Kimberly-Clark Announces First Quarter 2025 Results and Updates 2025 Outlook Q1 2025 Kimberly-Clark Announces Second Quarter 2025 Results, Raises 2025 Outlook Q2 2025