July 16th, 2009

Highlights:

• Growth in net sales of 8 percent.
• Increase in operating profit of 14 percent and EBITDA of 11 percent.
• Growth in net income of 14 percent.

Despite the current difficult environment, we had good second quarter results and achieved significant gains for the semester. It is important to highlight that the positive trend in net sales and operating profit results has continued now for five consecutive quarters. In addition, the lack of volatility in the exchange rate contributed to net income growth in the current period.
During the second quarter, net sales grew 8 percent supported by innovation and intensive marketing activity in all of our brands and products. Our main business, consumer products, grew 8 percent as a consequence of 2 percent volume growth and 6 percent better price and mix. We posted volume growth in almost all of our categories, particularly wet wipes with a double digit increase. Professional products also recorded significant growth. As a result of the recession in the United States, export sales were below when compared to last year.
Regarding the cost structure, the slowdown in the world economy and particularly in the United States has caused a drop in raw material dollar prices. However, these price reductions were not sufficient to offset the depreciation in the peso and thus cost pressures continued during the quarter. Notwithstanding this effect, our internal efforts to contain and reduce costs; the start-up of new investments focused on reducing costs; and the higher production volume with which we operated, derived in lower cost increases than sales growth, resulting in operating profit gain of 14 percent.   
Net income was up 14 percent over last year, derived from above mentioned operating profit growth as well as lower integral financing cost.
During the quarter we generated an EBITDA of $1,979 million pesos, which is 11 percent higher versus prior year. In the last twelve months we made investments of $1,713 million pesos ($967 in capital expenditures (CAPEX), $746 in the re-purchase of stock), and paid out a dividend to our shareholders of $3,086 million pesos.

As of June 30th, 2009 we ended with $6,876 million pesos in cash. This amount includes $3,500 million pesos from the issuance of marketable notes at the end of the first quarter in order to pay an outstanding bond that matures on July 31st, 2009.

Under US GAAP, quarterly results were as follows: net sales were 16 percent below last year; operating profit and net income were down 12 percent each.

Kimberly Clark de Mexico is engaged in the manufacture and commercialization of disposable products for daily use by consumers within and away-from-home, such as: diapers and child care products, feminine pads, incontinence care products, bath tissue, napkins, facial tissue, hand and kitchen towels, wet wipes and health care products. Some of the main brands include: Huggies®, Kleen-Bebé®, Kleenex®, Kimlark®, Pétalo®, Cottonelle®, Depend® and Kotex®.

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