Kimberly-Clark 2007 Annual Report Download - page 12

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Dear Shareholders:
Looking back on 2007, Kimberly-Clark again delivered on its top- and bottom-line
commitments despite continued significant inflationary pressure. Our Personal Care business
performed particularly well, with excellent sales and profit growth in developing and emerging
(D&E) markets and in North America, as well as improved profits in Europe. Moreover, we made
significant progress in further implementing the strategies of the Global Business Plan we
introduced four years ago. I want to thank our 53,000 employees worldwide who delivered
on our 2007 financial goals while making the changes necessary to enhance our future
competitive position as a global health and hygiene company.
Benefiting From the Global Business Plan’s Implementation
I’ll have more to say about our financial performance later in this letter. First, let me review the
significant, positive change that is under way at K-C. The company is investing in the right areas
to build for tomorrow and to drive sustainable growth. Our cost reduction efforts are freeing up
funds to support the targeted growth initiatives we launched in 2005 as well as the capabilities
needed to fulfill them. As you saw on the preceding pages, we’ve been raising the bar on those
capabilities. We’re taking a strategic approach to our businesses globally, with a focus on building
brands, fostering innovation and partnering with customers. In the simplest terms, our efforts
are about delivering sustainable growth today and for many years to come.
We’re seeing tangible evidence that K-C is benefiting from the changes we’ve made, and
continue to make, since introducing the Global Business Plan. Here are just a few examples of
how our improved capabilities are translating into positive results:
•We increased marketing support for our brands by almost $50 million in 2007. Not only have
we raised spending levels, we have made significant progress in re-engineering our marketing
approach to address the changes taking place in a dynamic marketplace. As a result, we are
taking more innovative approaches that connect with consumers in highly relevant ways.
Our marketing strategies are helping improve brand equity and market shares and are spurring
excellent organic growth in a number of businesses.
•Consumer insights from kids and their moms led to another major innovation: GoodNites
Sleep Boxers and Sleep Shorts, the first disposable youth pants that look and feel like today’s
popular boxer-style underwear. As a result, we enjoyed solid volume and market share growth
for our child care franchise in North America.
•Innovative approaches to marketing and customer development resulted in K-C’s North
American consumer products business being ranked in the top 10 for the second straight year
in the influential Cannondale PoweRanking survey of U.S. retailers. In similar surveys among
European customers, K-C achieved top 10 status in several countries, including two of our core
markets: the United Kingdom and Spain.
•Recognizing K-C’s continued focus on sustainable development, the Dow Jones Sustainability
World Indexes ranked us No. 1 among all personal products companies for the third straight year.
Given that only about 10 percent of the 2,500 largest companies worldwide qualify for inclusion
10
“We’re taking a
strategic approach to
our businesses globally,
with a focus on
building brands,
fostering innovation
and partnering
with customers.”