KMB Presentation by: Mei-Hsuan Chao Zuojia Chen Suyang Hong Jung Hyun Kim

1. KMB Presentation by: Mei-Hsuan Chao Zuojia Chen Suyang Hong Jung Hyun Kim 12/08/2009

2. Environment Analysis • Company profile • Macroeconomic analysis • SWOT analysis • Industry analysis • Competition analysis Agenda Financial analysis • Profitability • Leverage • Liquidity • Efficiency • Peer comparisons Valuation • DCF Valuation • Relative Valuation • Triangulation and Football chart Conclusion & Recommendation

3. Company Overview • Global health and hygiene company focused on product innovation and building its personal care, consumer tissue, K-C professional & other and health care brands • Founded in 1872 & headquartered in Dallas, TX • Manufacturing facilities in 35 countries • Nearly 53,000 employees • Well known global brand that has consumers in more than 150 countries worldwide - Over 1/4th of the world’s population uses K-C’s brand everyday - Holds No. 1 or No. 2 positions in more than 80 countries

4. Business Segments • Personal Care 2008 Sales $8.3B (43% of total sales)/ Operating Profit margin 19.9% Diapers, Training/Youth/Swim Pants, Feminine Care, Incontinence Care, Infant and Child Wipes and Toiletries

5. Business Segments • Consumer Tissue 2008 Sales $6.7B (35% of total sales)/ Operating Profit margin 8.9% Facial Tissue, Bathroom Tissue, Paper Towels

6. Business Segments • K-C Professional and Other 2008 Sales $3.2B (16% of total sales)/ Operating Profit margin 13.5% Disposable Health & Hygiene Products for Away-From-Home Use: Facial Tissue, Bathroom Tissue, Paper Towels Wipers, Protective/Absorbent Products for Do-It-Yourself Use, Safety Products; Nonwovens

7. Business Segments • Health Care 2008 Sales $8.3B (6% of total sales)/ Operating Profit margin 19.9% Surgical Drapes and Gowns, Sterilization Wrap, Face Masks Exam and Surgical Gloves, Respiratory and Other Disposable Medical Devices

8. Growth Strategies • Targeting Growth Investments • Translating customer, shopper, and user insights into innovative product solutions • Partnering with customers • Leveraging strong global brands, market share leadership and strategic marketing capabilities • Implementing strategic cost reductions • Using a systematic approach to reduce costs on an ongoing basis

9. Management Assessment • Adopted Global Business Plan (GBP) in 2003 to prioritize growth opportunities and applying greater financial discipline to K-C’s global operations.

10. Management Assessment • Continuous effort to be remain focused on reducing costs, improving margins and maximizing cash flow • Maintained a solid financial position throughout the economic downturn • Strengthened its position in developing and emerging markets

11. Macroeconomic Analysis • Unfavorable global environment • Current credit market disruptions and recession s in the US and certain foreign countries • Volatility in foreign currency • Increased pricing pressure and intense competition for sales • Significant increases in prices for raw materials, energy, and transportation and other necessary supplies • Large swings of main raw material; Kraft pulp and petroleum based commodities (Derivatives are not used to mitigate these risk)

12. CME Northern Softwood Pulp Index

13. SWOT Analysis • Strengths • Strong brand recognition • Diversified business portfolio • Resistant to economic cycles • Weaknesses • Dependency on commodities • High dependence upon a single large customer • Threats • Intense competition • Commodity costs inflation • Currency volatility • Opportunities • Expansion in emerging markets • New acquisitions and alliances • Increasing preference for organic and personal care products

14. Competition • Competitors vary in size • Highly competitive industry • Few pure players in the industry • New emerging “no-name" brands • Competitors • Procter & Gamble Co. • Georgia-Pacific • Johnson & Johnson

15. Keys for competition • Brand loyalty • Product quality • Innovation • Price • Marketing strategies

16. Five-year stock price

17. Financial Position Analysis • Profitability

18. Financial Position Analysis • Profitability

19. Financial Position Analysis • Profitability

20. Financial Position Analysis • Profitability

21. Financial Position Analysis • Company Structure/Leverage

22. Financial Position Analysis • Accelerated Stock repurchase plan • From July 2007 to March 2008 • 29.6 million shares of common stock from BOA • $2.1 billion long-term notes

23. Financial Position Analysis • Boost the EPS by reducing the shares

24. Financial Position Analysis • Debt Structure

25. Financial Position Analysis • Liquidity

26. Financial Position Analysis • Efficiency

27. Financial Position Analysis • Efficiency

28. Financial Position Analysis • Efficiency

29. Peer Comparison

30. Assumptions: Methodologies • Hybrid Assumptions • Segmental Perspective • Incorporated Management Assessment • Subjective Adjustment to Discount Rate

31. Pro Forma Assumptions

32. DCF Valuation Discount Rate: 10.10% Intrinsic Value: $50.20

33. Relative Valuation

34. RCMP Portfolio

35. Stock Correlation within Portfolio

36. Current Position • Bought 300 KMB shares at $63.91 on April 20, 2005 • Bought 100 shares at $56.31 on Nov. 18, 2008

37. Company Evaluation • Management inconsistencies • Stock Repurchase Plan • Soaring raw material cost • Not profitable to support for high dividend payout

38. Recommendation • Intrinsic value of the company is $50.20 • Closing Price for December 7, 2009 is $65.19 We recommend to SELL 400 shares at current market price

39. Sources • Kimberley-Clark 2005-2008 Annual Report, 10-K • http://www.kimberley-clark.com • One-source database • Capital-IQ • Bloomberg • http://finance.yahoo.com