Kimberly-Clark Focuses On Importance Of Brand-Building At Annual MeetingDALLAS, April 29, 2004--At Kimberly-Clark Corporation's (NYSE: KMB) annual meeting today, Chairman & CEO Tom Falk emphasized the importance of the company's brands in driving growth and the opportunities to expand those brands worldwide.
At the meeting, K-C stockholders re-elected four directors to three-year terms expiring in 2007. Directors who were re-elected are Pastora San Juan Cafferty, professor, University of Chicago; Claudio X. Gonzalez, chairman and managing director of Kimberly-Clark de Mexico; Linda Johnson Rice, president and chief executive officer, Johnson Publishing Company, Inc.; and Marc J. Shapiro, retired vice chairman, J.P. Morgan Chase & Co.
Shareholders also approved the selection of Deloitte & Touche LLP as independent auditors and amendments to the company's Equity Participation Plan. In addition, shareholders approved a proposal regarding the company's existing stockholder rights plan.
Focusing On Growth
In commenting on the outlook for the year, Falk reaffirmed that K-C remains solidly on track to meet its goals of revenue growth of 3-5 percent and earnings growth in the mid-to high-single digits. His confidence, he said, is based on the company's strong first quarter performance, its strategic business plan and its continuing emphasis on innovation and brand-building.
In describing the emotional connections between a brand and a consumer, Falk said: "Great brands don't just happen--we build and nurture them. Take Kleenex facial tissue, which is celebrating its 80th anniversary this year as the brand of choice for dealing with the sniffles, colds and little messes of everyday life. Huggies didn't even exist 30 years ago, but today the continuing relationship we've built with parents means it's the No. 1-diaper brand in the U.S. In fact, one of every four disposable diapers sold in the world carries a K-C brand."
K-C is building more brands with equally strong positions, he added, such as Scott in bath tissue and towels, Kotex in feminine care, Poise and Depend in adult care, and the trio of brands--Pull-Ups, Little Swimmers and GoodNites--that lead the $2 billion pants category created by K-C in 1989. Innovations have helped push the company's share of the U.S. pants category to more than 70 percent in the first quarter, a gain of about 4 points year over year.
Latest Innovations To Child Care Brands
To maintain this market share momentum, the company will soon introduce innovations across its entire line of child care brands. At the meeting, Falk unveiled upcoming improvements to GoodNites underpants, which include new gender-specific designs, a gender-specific absorbent structure and compressed packaging to help retailers manage shelf space. The improved product will arrive in stores in July. In addition, Pull-Ups training pants will soon feature new Disney designs with Glow-In-The-Dark graphics available in May. Enhancements to Little Swimmers swimpants, available now for the summer swim season, include updated graphics featuring Disney-Pixar's Finding Nemo and Disney's Little Mermaid and Tigger.
Building Strategic Customer Partnerships
Falk told shareholders that K-C is working closely with its retail customers to develop unique shopper insights and to help them better manage product categories.
"Customer management is an incredibly important element of growing our brands," he said. "K-C is developing strategic customer relationships to enhance the point-of-purchase experience and provide what we call 360-degree shopper-centric support."
To that end, K-C works with global retailers on implementing integrated marketing campaigns as it rolls out new and improved products. Recent successes include the launch of redesigned Pull-Ups training pants with new Disney-themed graphics in the U.S.; improved Huggies diapers in the U.K., Spain and France; and improved Hakle bath tissue in Germany. As a result of efforts like these, K-C has enjoyed a double-digit growth rate with its top six global customers in each of the last three years. What's more, in a recent survey of 18 consumer packaged goods companies by the Advantage Group in North America, K-C ranked among the top two for customer satisfaction.
"The heart of our company is our brands--brands that are so trusted and so much a part of consumer's lives that they multiply our opportunities for growth and profitability," Falk said. "We are continuing to build a solid foundation for superior performance as a global health and hygiene leader for many years to come."
Replay of Business Review from 2004 Annual Meeting
Stockholders and others are invited to listen to an audio playback and view a PowerPoint presentation of the business review portion of the 2004 annual meeting. This replay can be accessed shortly after the meeting by following instructions set out in the Investors section of the company's Web site at www.kimberly-clark.com.
About Kimberly-Clark
Kimberly-Clark and its well-known global brands are an indispensable part of life for people in more than 150 countries. Every day, 1.3 billion people--almost a quarter of the world's population--trust K-C brands to enhance their health, hygiene and well-being. With brands such as Kleenex, Scott, Huggies, Pull-Ups, Kotex and Depend, Kimberly-Clark holds the No. 1 or No. 2 share position in more than 80 countries. To keep up with the latest K-C news and to learn more about the company's 132-year history of innovation, visit www.kimberly-clark.com
At the meeting, K-C stockholders re-elected four directors to three-year terms expiring in 2007. Directors who were re-elected are Pastora San Juan Cafferty, professor, University of Chicago; Claudio X. Gonzalez, chairman and managing director of Kimberly-Clark de Mexico; Linda Johnson Rice, president and chief executive officer, Johnson Publishing Company, Inc.; and Marc J. Shapiro, retired vice chairman, J.P. Morgan Chase & Co.
Shareholders also approved the selection of Deloitte & Touche LLP as independent auditors and amendments to the company's Equity Participation Plan. In addition, shareholders approved a proposal regarding the company's existing stockholder rights plan.
Focusing On Growth
In commenting on the outlook for the year, Falk reaffirmed that K-C remains solidly on track to meet its goals of revenue growth of 3-5 percent and earnings growth in the mid-to high-single digits. His confidence, he said, is based on the company's strong first quarter performance, its strategic business plan and its continuing emphasis on innovation and brand-building.
In describing the emotional connections between a brand and a consumer, Falk said: "Great brands don't just happen--we build and nurture them. Take Kleenex facial tissue, which is celebrating its 80th anniversary this year as the brand of choice for dealing with the sniffles, colds and little messes of everyday life. Huggies didn't even exist 30 years ago, but today the continuing relationship we've built with parents means it's the No. 1-diaper brand in the U.S. In fact, one of every four disposable diapers sold in the world carries a K-C brand."
K-C is building more brands with equally strong positions, he added, such as Scott in bath tissue and towels, Kotex in feminine care, Poise and Depend in adult care, and the trio of brands--Pull-Ups, Little Swimmers and GoodNites--that lead the $2 billion pants category created by K-C in 1989. Innovations have helped push the company's share of the U.S. pants category to more than 70 percent in the first quarter, a gain of about 4 points year over year.
Latest Innovations To Child Care Brands
To maintain this market share momentum, the company will soon introduce innovations across its entire line of child care brands. At the meeting, Falk unveiled upcoming improvements to GoodNites underpants, which include new gender-specific designs, a gender-specific absorbent structure and compressed packaging to help retailers manage shelf space. The improved product will arrive in stores in July. In addition, Pull-Ups training pants will soon feature new Disney designs with Glow-In-The-Dark graphics available in May. Enhancements to Little Swimmers swimpants, available now for the summer swim season, include updated graphics featuring Disney-Pixar's Finding Nemo and Disney's Little Mermaid and Tigger.
Building Strategic Customer Partnerships
Falk told shareholders that K-C is working closely with its retail customers to develop unique shopper insights and to help them better manage product categories.
"Customer management is an incredibly important element of growing our brands," he said. "K-C is developing strategic customer relationships to enhance the point-of-purchase experience and provide what we call 360-degree shopper-centric support."
To that end, K-C works with global retailers on implementing integrated marketing campaigns as it rolls out new and improved products. Recent successes include the launch of redesigned Pull-Ups training pants with new Disney-themed graphics in the U.S.; improved Huggies diapers in the U.K., Spain and France; and improved Hakle bath tissue in Germany. As a result of efforts like these, K-C has enjoyed a double-digit growth rate with its top six global customers in each of the last three years. What's more, in a recent survey of 18 consumer packaged goods companies by the Advantage Group in North America, K-C ranked among the top two for customer satisfaction.
"The heart of our company is our brands--brands that are so trusted and so much a part of consumer's lives that they multiply our opportunities for growth and profitability," Falk said. "We are continuing to build a solid foundation for superior performance as a global health and hygiene leader for many years to come."
Replay of Business Review from 2004 Annual Meeting
Stockholders and others are invited to listen to an audio playback and view a PowerPoint presentation of the business review portion of the 2004 annual meeting. This replay can be accessed shortly after the meeting by following instructions set out in the Investors section of the company's Web site at www.kimberly-clark.com.
About Kimberly-Clark
Kimberly-Clark and its well-known global brands are an indispensable part of life for people in more than 150 countries. Every day, 1.3 billion people--almost a quarter of the world's population--trust K-C brands to enhance their health, hygiene and well-being. With brands such as Kleenex, Scott, Huggies, Pull-Ups, Kotex and Depend, Kimberly-Clark holds the No. 1 or No. 2 share position in more than 80 countries. To keep up with the latest K-C news and to learn more about the company's 132-year history of innovation, visit www.kimberly-clark.com