Stewart Van Horn Director – Global Sustainability Achieving a Superior Sustainability Footprint In Tissue Manufacturing

It begins with our mission… 58,000 employees worldwide $21 Billion+ in Net Sales #1 or #2 position in more than 80 countries Nearly one-quarter of the world’s population use our products daily Leading the world in essentials for a better life. 2

Kimberly-Clark Brands deliver on that mission Personal CareConsumer Tissue Health CareK-C Professional 3 Leading the world in essentials for a better life. 3

Sustainably manufactured within the goals of three foundational pillars 4 Leading the world in essentials for a better life. 4

79%78% 100% mfg. waste diverted from landfill

A responsible planet footprint requires that natural resources are … 6 Minimize long term effect Replace, recycle, replenish Sourced Responsibly Efficiency in use Retain, recover, repurpose, reuse Used Responsibly

7 Certified Sources Recycled Content Process retention Maximize recovery Minimize sludge Preferred Mix Sustainable Alternative Fiber Repurposed sludge Biofuel Secondary Mkt. 7

K-C’s Fiber Sourcing Commitments Wood fiber suppliers are 100% certified 90% Environmentally Preferred Fiber (EPF) in global tissue by 2025 Rio +20 Commitment – 50% reduction in fiber sourced from natural forests by

9 Balanced (remove/replace) Short-Loop Recycle White water utilization Improved quality of returned water Water stressed regions Long-Loop Recycle Advanced WWT Filtration Toxicity free effluent 9

10 Low GHG* sources Mix optimization Clarify emissions Efficient equipment Waste minimization Heat recovery Co-Generation Waste Heat Integration Renewable sources Efficient asset utilization Real-time energy management 10

12 -Integrated into cost savings -Make gaps to adoption visible -Make aggregate value visible -‘Grow’ confidence w/ pre-design & analysis 1. Conservation: Energy Efficiency Projects

1. Conservation: Real-Time Energy Management LEAN Energy – LEAN manufacturing management integration – 5%+ reduction in energy/unit typical Energy Conservation Mindset created Focus on efficiently using assets (versus using efficient assets) 13

LEAN Energy: The opportunity

Real-time tools don’t exist to understand that there is a problem Standards don’t exist to trigger action Experiences don’t exist which create the belief in energy’s value Why is it such a challenge:

The solve: LEAN manufacturing deployment of a complete solution: Visual management at the asset level (problem consciousness) Dashboards with real time energy intensity (energy/unit) Operating system changes (accountability) Make overconsumption a ‘red’ condition trigger for action Design rewards to stroke the ‘right’ conservation behavior Mindset & Capability Training (create the shared need) Compelling value of energy/ton; make conservation personal

Standard design for quicker and more standardized implementation Standard Dashboard Defined KC Asset Type Visual Management: A Global Design Standard Seven types of Kimberly-Clark machines defined with metering and data requirements

$1.12 MM $0.74 MM $1.86 MM 2010 (MBTU/BDMT) Energy Consumption (MBTU/MT) Sitio del Niño, El Salvador The Result: 5-8% Energy Reduction

2. Alternate Energy Transform to Optimal Mix/Form Cost & Sustainability Transformation Switch fuels for cost/sustainability Supply “densification” for savings Deploy alternate energy (biomass, solar, wind) Generate electricity from alternate lower cost / Green house gas fuels for utility independence (Co-Generation)

2. Alternate Energy: Co-Generation of Electricity Four Units deployed in last decade (15 – 35 megawatts each) – 4,000,000 MT CO2e cumulative GHG reduction – $30 million+ annual savings Power generation – Co-Generation w/ heat recovery can approach 80% efficiency – Waste heat integration into TM Waste & Energy Combo Solutions – Creating secondary material streams – Flexible alternatives to landfill waste 22

CHP – Fullerton, CA

CHP – Romagnano, ITALY

25 20% of mill sludge used as fuel (guarantee) Remaining sludge and ash repurposed into secondary materials / landfill Provides up to 100% of current mill steam needs Biomass Boiler Generates ~ 100% of mill electricity needs Provides another 50% of current mill steam needs  supports future expansion needs Co-Gen System 2. Waste & Energy: Combination Value Example

Optimize Supply Value (current mix) Price CI, Reliability, Predictability Influence market regs/legislation Competitively bid contracts Change term length & other T&Cs Incorporate risk for value (int.power, demand response) Sell excess power generated (CHP) Use grants/incentives Incorporate reliability & predictability levers Leverage scale across mills/country/region Price/Cost & Risk Reduction Aggregate /consolidate supply points Aggregate/consolidate suppliers Lift common strategy elements from country ‘sub’-strategies and seek common solution (engineering, design) 3. Energy Supply -Integrated approach (Sustainability & Procurement) multiplies value -Market Study w/ trends known required for pipeline of value initiatives -Takes time to develop game changing options – (ex. High Voltage Power) -‘Grow’ confidence in business leaders w/ small wins to sell larger initiatives

Thank You

Appendix

Kimberly-Clark Recognition 2013 Ethisphere Institute’s World’s Most Ethical Companies for 2 nd year in a row 10 th consecutive year on FTSE4GOOD Index 2013 Top 20 of World’s Best Corporate Citizens for 5 consecutive years by Corporate Responsibility Magazine 2012 Circle of Excellence award from DBMA EPA’s Fortune 500 Green Power List for 2012 #1 Consumer goods company in Newsweek’s “2012 Green Rankings” #4 among 2012’s “World’s Best Multinational Workplaces” #12 on 2012 list of Fortune 500 companies using green power Signatory to the United Nations Global Compact USGBC Platinum Member Named to the first Natural Capital Leaders Index 2013 Dow Jones Sustainability Index 30

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K-C Fiber Sourcing Milestones Introduced use of Recycled Fiber 1970s 1 st to require 3 rd party certification Sustainable Forest Mosaics Initiative with Conservation International; later a featured case study in State of the World's Forests 2011 report New Fiber Procurement Policy Europe introduces FSC Andrex tissue KCP 1 st with FSC tissue products Joined WWF’s GFTN Alliance with Greenpeace and beyond Global GFTN agreement KCP gains FSC labeling for 95%+ of NA tissue & towel Kleenex and Scott Naturals: 1 st U.S. Branded Consumer Tissue Maker to adopt FSC FSC NA consumer Scott, Cottonelle, Viva Set goal to reduce its Forest Fiber Footprint by 50% Alternative Fiber Bamboo Wheat Straw Set goal of 100% certified suppliers 32

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