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

2. 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

3. 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

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

5. 79%78% 100% mfg. waste diverted from landfill

6. 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. 7 Certified Sources Recycled Content Process retention Maximize recovery Minimize sludge Preferred Mix Sustainable Alternative Fiber Repurposed sludge Biofuel Secondary Mkt. 7

8. 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 2025 8

9. 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. 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

11. 11 1 2 3

12. 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

13. 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

14. LEAN Energy: The opportunity

15. 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:

16. 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

18. 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

19. 13.14 12.78 2011 12.07 2012 11.85 2013 $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

20. 20 1 2 3

21. 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)

22. 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

23. CHP – Fullerton, CA

24. CHP – Romagnano, ITALY

25. 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

26. 26 1 2 3

27. 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

28. Thank You

29. Appendix

30. 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 2013-2014 USGBC Platinum Member Named to the first Natural Capital Leaders Index 2013 Dow Jones Sustainability Index 30

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32. 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 2007 2003 2009 Joined WWF’s GFTN Alliance with Greenpeace 2011 2012 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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