Kimberly-Clark 2015 Annual Report Download - page 16

Overview of Business
Weareaglobalcompanyfocusedonleadingtheworldinessentialsforabetterlife,withmanufacturingfacilitiesin36countriesandproductssoldinmorethan
175countries.Ourproductsaresoldunderwell-knownbrandssuchasKleenex,Scott,Huggies,Pull-Ups,KotexandDepend.Wehavethreereportablebusiness
segments: Personal Care, Consumer Tissue and K-C Professional ("KCP"). These business segments are described in greater detail in Item 8, Note 16 tothe
ConsolidatedFinancialStatements.
Inoperatingourbusiness,weseekto:
• manageourportfoliotobalancegrowth,profitmarginandcashflow,
• investinourbrands,innovationandgrowthinitiatives,
• deliversustainablecostreductions,and
• providedisciplinedcapitalmanagementtoimprovereturnoninvestedcapitalandreturncashtoshareholders.
Beginningin2015,wedescribeourbusinessoutsideNorthAmericaintwogroups–DevelopingandEmergingMarkets("D&E")andDevelopedMarkets,instead
of K - C International ("KCI") and Europe. D&E markets comprise Eastern Europe, the Middle East and Africa, Latin America and Asia-Pacific, excluding
AustraliaandSouthKorea.DevelopedMarketsconsistofWesternandCentralEurope,AustraliaandSouthKorea.Previously,KCIconsistedofourbusinessesin
Asia,LatinAmerica,theMiddleEast,EasternEuropeandAfrica.
Highlightsfor2015includethefollowing:
• Netsalesof $18.6billiondecreased6percentcomparedto 2014.Weakeningforeign currencyexchangesrates significantlydecreasednet salesand
operatingprofit.Organicnetsalesincreased5percent.
• Weexecuted ourgrowth strategiesin D&Emarkets witha focuson China,Eastern Europeand LatinAmerica. Organicnet salesin D&Egrew10
percentin2015 asaresultof stronggrowthindiapers,femininecare,adultcare andbabywipes.In D&E,wecontinueto benefitfrominnovation,
expansion,categorydevelopmentandhighernetsellingprices.
• InNorthAmerica,wegenerated5percentvolumegrowthinourconsumerbusiness,withincreasesonmostbrands.Resultsbenefitedfrominnovations,
promotionsupport,categorygrowthandmarketsharegains.
• InourDevelopedMarketsoutsideNorthAmerica,organicnetsaleswereevenwithprioryear.
• Tohelpfundourinvestmentsininnovationsandgrowthinitiativesandtoimproveourprofitmargins,wearegeneratingcostsavingsthroughseveral
initiatives,includingleveragingourglobalprocurementorganizationanddeployingleanprinciples.Full-yearcostsavingsfromourongoingFORCE
(FocusedOnReducingCostsEverywhere)programin2015were$365.
• In2015,wecontinuedtoexecuteour2014OrganizationRestructuringinordertoimproveorganizationefficiencyandoffsettheimpactofstranded
overheadcostsresultingfromthespin-offofourhealthcarebusinessin2014.Therestructuringisexpected tobecompletedbytheendof2016.In
2015,savingsfromthisinitiativewere$65.
•Wecontinuedtofocusongeneratingcashflowandallocatingcapitaltoshareholders.In2015,cashprovidedbyoperationswas$2.3billion,andshare
repurchasesofKimberly-Clarkcommonstockwere$0.8billion.Inaddition,weraisedourdividendin2015by5percent,the43rdconsecutiveannual
increaseinourdividend.Altogether,sharerepurchasesanddividendsin2015amountedto$2.1billion.
Wecompletedthespin-offofourhealthcarebusinessonOctober31,2014.Asaresult,thehealthcarebusinessispresentedasdiscontinuedoperationsonthe
ConsolidatedIncomeStatementin2014and2013.
We are subject to risks and uncertainties, which can affect our business operations and financial results. See Item 1A, "Risk Factors" in this Form 10-K for
additionalinformation.
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13 KIMBERLY-CLARKCORPORATION - 2015 Annual Report