Performance & Governance

Think Tank Q&A with Steve Austenfeld, Vice President — Investor Relations and Angela Hilt, Vice President — Corporate Secretary & Associate General Counsel

What are the key pillars of Clorox's Centennial Strategy?

Steve: The first is our brand-building strategy “Win With Superior Capabilities in the ‘3Ds' of Desire, Decide and Delight.” This 3D model has allowed us to continue to grow market share in our key categories. We've recorded more share growth over the past three fiscal years than any branded competitor or private label in our categories.

The second is “Accelerate Growth in and Beyond the Core.” A key aspect here is remaining focused on the global consumer “megatrends” of health and wellness, sustainability, the multicultural marketplace and affordability/value to drive growth from our existing businesses and new sources.

The third is “Relentlessly Drive Out Waste.” At Clorox, we have a strong track record of driving efficiency. Our cost-savings program has delivered about $100 million or more in savings every fiscal year since 2003.

The fourth is “Be a High-Performance Organization of Enthusiastic Owners.” We have some of the most talented and driven employees in the industry, and they're fundamental to our success.

How does Clorox create stockholder value?

Steve: It starts with our outstanding portfolio of leading brands. Nearly 90 percent of our brands hold the No. 1 or No. 2 market share in their categories. This has enabled long-term growth in earnings. Strong cash flow is also a hallmark of our company. Over the last three fiscal years, our net cash provided by operations averaged 14 percent of sales. And over the last five fiscal years, we've returned more than $2.7 billion in cash to stockholders in the form of dividends and share repurchases, supporting strong returns for our shareholders. In fact, since the beginning of the global recession,* we've delivered a 43 percent increase in total stockholder returns, versus 34 percent for our peer group of companies and 10 percent for the S&P 500. We're successfully executing our Centennial Strategy to guide Clorox through our 100-year anniversary in 2013. Simply put, we have the brands, management team, capabilities and the right plan in place to drive long-term growth and value.

What's unique about corporate governance at Clorox?

Angela: It's the strength of our board and the management team and the tone from the top. Each of our board members is highly engaged and really understands our business, which enables them to be deeply involved in developing our strategy. They're committed to transparency, accountability and doing what is best in the long-term interests of our stockholders.

What do you see as the key element of the company's corporate governance success?

Angela: To me, two words define exceptional corporate governance: transparency and accountability. Clorox is committed to operating with the highest level of transparency, and we clearly disclose our strategic short– and long–term goals, as well as our key decisions and policies. Additionally, our board is focused on enhancing stockholder value and ensuring accountability through effective oversight.

*Fiscal years 2009 – 2011