Kimberly-Clark (KMB) Barclays 18th Annual Americas Select Conference summary

Strategic transformation and portfolio evolution

• Executing a major strategic shift by reducing international consumer tissue exposure via a joint venture with Suzano and expanding into consumer health through the proposed Kenvue acquisition.

• Powering Care strategy focuses on driving a virtuous cycle of growth through superior product innovation, cost efficiency, and enhanced global scale while maintaining local market agility.

• Achieved notable volume mix growth: 1% in 2024, 2.5% in 2025, and 3% in Q1 2026, attributed to product differentiation and innovation in both premium and value tiers.

• Joint venture with Suzano aims to stabilize margins and reduce volatility in the tissue business, leveraging complementary strengths in production and commercial execution.

• Portfolio management remains disciplined, with ongoing evaluation for potential divestitures and a focus on shareholder value creation.

Kenvue acquisition rationale and integration

• Acquisition of Kenvue is intended to create a global health and wellness leader, leveraging category growth tailwinds from aging populations and expanding self-care markets.

• Significant geographic and category complementarity expected, with opportunities to expand distribution and consumer engagement across life stages and regions.

• Integration planning emphasizes selecting top talent from both organizations, with a focus on operational expertise, R&D, and digital consumer engagement.

• Targeting $1.9 billion in cost synergies (13% of Kenvue’s 2025 sales), mainly from sales/marketing, COGS, and G&A, with realization expected by year three.

• Confident in managing Kenvue’s brand complexity and potential liabilities, supported by rigorous due diligence and a strong advisory team.

Financial discipline and risk management

• Maintains strong margin management through productivity gains, hedging, and integrated margin management, with 80% of input costs covered and plans to mitigate oil-linked inflation.

• Demonstrated ability to recover and expand margins post-pandemic, with ongoing focus on cost discipline and cash flow improvement.

• Portfolio complexity in Kenvue is viewed as manageable, with profitable long-tail brands and a disciplined approach to capital allocation and potential divestitures.

• Confident in the scientific and legal defense of Tylenol and Talc-related liabilities, with all scenarios expected to result in significant value creation.

• Long-term vision prioritizes building a resilient, growth-oriented company for the next 50 years, leveraging cultural alignment and care-driven values.