Going GreenLearning as We Go

Beth SpringerExecutive Vice President

The Clorox Company

Opportunity GreenLos Angeles, CA

November 8, 2009

November 8, 2009 Clorox Presentation at Opportunity Green Conference 2

1913 Founded as an industrial bleach company

1928 Went public

1957 Acquired by Procter & Gamble

1969 Independent again, still making only liquid bleach

Clorox Then:

Portfolio expanded through innovation, brand building and acquisition

November 8, 2009 Clorox Presentation at Opportunity Green Conference 3

Clorox Now:Sales of $5.3 Billion

8300 employees

80% of business in USA

SIX R&D facilities

Traded on NYSE

Manufacture products in 25 countries

More than two dozen plants in the USA

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Leading Consumer Brands

November 8, 2009 Clorox Presentation at Opportunity Green Conference 5

We’ve made a lot of sustainability progress in the last several years, but are still fairly early in our journey

DefensiveGreen

LeanGreen

ShadedGreen

ExtremeGreen

Clorox goal

* From Fall 2004 Sloan Business Review

Clorox 2007

Clorox’s Sustainability

Journey

Key motivation is risk avoidance

Focus is to reduce costsand increase efficiencies

Leverage green for growth

Green is a driving force behind the company

November 8, 2009 Clorox Presentation at Opportunity Green Conference 6

The journey is long, but we have made some good progress in the last five years

Environmental sustainability is:• Embedded in the company’s strategy and performance scorecard

• Articulated via a corporate-wide Eco Strategy and managed by a dedicated Eco office

• Driven into the goals and plans of our individual business units

Accomplishments to date include:• Setting a public GHG goal as a member of Climate Leaders

• Making progress in reducing operational and product footprints

• Building two natural, plant-based brands

With continued opportunity to:• Further embed eco criteria into our business processes and management incentive systems

• Set additional public goals and issue a formal Sustainability Report

• Further reduce our operational and product eco footprints

November 8, 2009 Clorox Presentation at Opportunity Green Conference 7

Going Green: Learning as We Go

Reducing our operational footprint

Our initial focus was on:

November 8, 2009 Clorox Presentation at Opportunity Green Conference 8

Waste Reduction

Water RecyclingLighting Retrofits

Reducing our operational footprintManufacturing opportunities

November 8, 2009 Clorox Presentation at Opportunity Green Conference 9

Using other more efficient carriers

Network ImprovementsTruck to Rail

Reducing our operational footprintDistribution opportunities

November 8, 2009 Clorox Presentation at Opportunity Green Conference 10

Reduced Paper Use by 30%

Converted to more fuel efficient fleet

Reduced Business Travel By 20%

Making facilities more efficient

Reducing our operational footprintWorkplace opportunities

Created an Eco Network

November 8, 2009 Clorox Presentation at Opportunity Green Conference 11

Going Green: Learning as We Go

Reducing our operational footprint We needed to make our product portfolio more sustainable

Our initial focus was on: But we also learned that:

November 8, 2009 Clorox Presentation at Opportunity Green Conference 12

40 Plants

TO OVER 1 Billion

Products!

Making the product portfolio more sustainableOur largest footprint is in the over one billion products we sell into the marketplace each year

November 8, 2009 Clorox Presentation at Opportunity Green Conference 13

45%

10% 10% 15% 20%

0%

20%

40%

60%

Raw Materials(Sourcing &Production)

Manufacture(Product formulation

and packaging)

Distribution (offinished product to

customer)

Consumer Use End of Life

% T

otal

EC

O Im

pact

*

* Illustrative purposes

Making the product portfolio more sustainableAbout 80% of that product footprint is actually outside the walls of Clorox, but still needs to be managed

November 8, 2009 Clorox Presentation at Opportunity Green Conference 14

Making the product portfolio more sustainableAdditionally, the eco impact of each of our businesses is different, and needs to be managed separately

Relative % of Sales

EC

O im

pact

November 8, 2009 Clorox Presentation at Opportunity Green Conference 15

Clorox’s ECO Assessment Process

Environmental Sustainability Grounding

Raw Matls. Manufacture End of LifeConsumer UseDistribution

Consumer CustomerNGO’s Competition GovernmentMediaInvestors Employees Community Groups

Risk Mitigation Footprint Reduction Growth

Environmental Sustainability Priorities and Recommendations

Product Life Cycle Filter

Stakeholder Filter

Business Impact Filter

Making the product portfolio more sustainableTo better manage the individual businesses, we have created and are implementing a new Eco Assessment process

November 8, 2009 Clorox Presentation at Opportunity Green Conference 16

Going Green: Learning as We Go

Reducing our operational footprint We needed to make our product portfolio more sustainable

Making existing products more sustainable

Our initial focus was on: But we also learned that:

November 8, 2009 Clorox Presentation at Opportunity Green Conference 17

Glad Compostable

Kingsford Natural BriquettesConcentrated

Clorox 2

Greening up existing product linesCleaning products, trash bags and charcoal are a few recent examples

November 8, 2009 Clorox Presentation at Opportunity Green Conference 18

Greening up existing product linesWe’ve improved a third of our product portfolio in the last five years, and our goal is to improve another 25% in the next four years

0%

20%

40%

60%

2005-2009 2010-2013 Goal

Percent of the Product Portfolio with Eco Improvements

November 8, 2009 Clorox Presentation at Opportunity Green Conference 19

Going Green: Learning as We Go

Reducing our company’s operational footprint We needed to make our product portfolio more sustainable

Making existing products more sustainable We needed to correct misinformation on some products

Our initial focus was on: But we also learned that:

November 8, 2009 Clorox Presentation at Opportunity Green Conference 20

The truth about bleach…

• There is no free chlorine in Clorox Liquid Bleach

• Sodium Hypochlorite bleach is the most effective and affordable disinfectant available today

• No other manmade product hassaved more lives than sodium hypochlorite bleach.

Correcting misinformationClorox bleach is one example where some perceptions are just not true

Salt-to-SaltBleach Cycle

During waste treatment, remaining bleach is degraded to salt.

1. Salt

2. BleachManufacture

3. Product Use

4. Municipal Treatment-Septic Tank

During product use, 95-98% of household bleach breaks down into salt and water.

November 8, 2009 Clorox Presentation at Opportunity Green Conference 21

Established a product ingredient communication programWe are also reducing misperceptions by being transparent on ingredients

November 8, 2009 Clorox Presentation at Opportunity Green Conference 22

Going Green: Learning as We Go

Reducing our company’s operational footprint We needed to make our product portfolio more sustainable

We needed to correct misinformation on some products

There is an opportunity to build new brands made with plant-based ingredients

Our initial focus was on: But we also learned that:

Making existing products more sustainable

November 8, 2009 Clorox Presentation at Opportunity Green Conference 23

Opportunity to build new brands with plant-based ingredientsBurt’s Bees and Green Works are new lines of business

Acquired December 2007 Launched January 2008

November 8, 2009 Clorox Presentation at Opportunity Green Conference 24

Going Green: Learning as We Go

Reducing our company’s operational footprint We needed to make our product portfolio more sustainable

We needed to correct misinformation on some products

There is an opportunity to build new brands made with plant-based ingredients

Products have to meet a genuine consumer need and be priced in a way that creates value for manufacturers, retailers and consumers

Our initial focus was on: But we also learned that:

Making existing products more sustainable

November 8, 2009 Clorox Presentation at Opportunity Green Conference 25

Yard

My Environment

The Environment

WorldParks Community

Work

Car

Family/Home

Local NaturalEnvironment

Body

Consumer Definition of “My”

Within My Control —“Immediate”

Outside of My Control —“Long-Term”

Opportunity to build new brands with plant-based ingredientsOur bet on natural products is based on an insight that consumers are motivated by concerns about My environment versus The environment

In me, On me, Around me

Environment vs. “The” Environment

November 8, 2009 Clorox Presentation at Opportunity Green Conference 26

Products must met genuine needs and be priced rightKingsford Surefire reduced our environmental footprint while also offering the consumer a better product at the same price

Improved process and quality

New briquette shape for more grilling power

Upgraded rawmaterials and optimized formula

November 8, 2009 Clorox Presentation at Opportunity Green Conference 27

Products must met genuine needs and be priced rightThe initial line of Green Works products provided a more naturalalterative to conventional cleaners at only a modest price premium

+11% +25% +6% +14% +4% +18%

November 8, 2009 Clorox Presentation at Opportunity Green Conference 28

ConsumerValue

Products must met genuine needs and be priced rightDespite the clear eco benefits of concentrating household cleaners, the usage experience barriers remain too high to change behavior

UsageExperience

ProductPerformance

Retail PricePer Use

Which result in a lower price per usefor the consumer

Concentrates reduce product & package costs

And can result in significant distribution savings

But to date, the price and environmental benefits are not enough to overcome the diluting hassles

Product & Packaging Costs

Distribution Costs

November 8, 2009 Clorox Presentation at Opportunity Green Conference 29

Going Green: Learning as We Go

Reducing our company’s operational footprint We needed to make our product portfolio more sustainable

We needed to correct misinformation on some products

There is an opportunity to build new brands made with plant-based ingredients

Products have to meet a genuine consumer need and be priced in a way that creates value for manufacturers, retailers and consumers

Being guided by strategy and steady principles

Making existing products more sustainable

Our initial focus was on: But we also learned that:

November 8, 2009 Clorox Presentation at Opportunity Green Conference 30

Clorox Core Values

• Stretch for Results

• Do the Right Thing

• Take Personal Ownership

• Work Together to Win

Steady PrincipleOur work is always guided by our values and our strategies

Clorox Mission

Making Everyday Life Better, Everyday Clorox Corporate

Strategy

Maximize Economic Profit across categories, customers

and countries.Clorox Eco Strategy

Make Environmental Sustainability core to how we do business to:

• Enable Clorox’s EP growth

• Enhance corporate reputation

• Build employee pride

November 8, 2009 Clorox Presentation at Opportunity Green Conference 31

Going Green: Learning as We Go

Reducing our company’s operational footprint We needed to make our product portfolio more sustainable

Being guided by strategy and steady principles We have to learn and adapt as we go

Making existing products more sustainable We needed to correct misinformation on some products

There is an opportunity to build new brands made with plant-based ingredients

Products have to meet a genuine consumer need and be priced in a way that creates value for manufacturers, retailers and consumers

Our initial focus was on: But we also learned that:

November 8, 2009 Clorox Presentation at Opportunity Green Conference 32

Learning and AdaptingWe are continually learning from people and groups outside company walls

Consumer Comments

Media

Blogs

NGOs

Industry Associations

Advisory Boards

Universities

Retail Customers

Peer Companies

Suppliers

November 8, 2009 Clorox Presentation at Opportunity Green Conference 33

Work on Green Works and Brita are two clear examples where outside parties have helped us improve

Green Work and Sierra Club joined together to help bring natural cleaning to the mainstream

Vetting process led to a new level of engagement

Opened our doors to Sierra Club on product and company information

• Product ingredients• Bleach• Environmental and workplace

safety record

Dialogue between Sierra Club and Clorox reinforced importance and benefits of transparency

Brita – better taste, and helps reduce bottled water waste

But we needed to find a way to recycle our used filters

Current waste treatment facilities in the U.S. not equipped to recycle used filters

After much research, Brita partnered with Preserve, maker of 100 percent recycled household consumer goods

November 8, 2009 Clorox Presentation at Opportunity Green Conference 34

Lots yet to learn. Among the questions we continue to wrestle with . . .

Have not always been able to justify major capital investments for big eco gains

Still exploring heat recapture technology for electricity generation at our Kingsford plants

Still working to establish an eco mindsetthroughout Clorox so that Eco Office is

not the main generator of eco ideas

Still trying to crack the consumer code for major footprint reduction of our cleaners

November 8, 2009 Clorox Presentation at Opportunity Green Conference 35

Going Green: Learning as We Go

Reducing our company’s operational footprint We needed to make our product portfolio more sustainable

Being guided by steady principles We have to learn and adapt as we go

Making existing products more sustainable We needed to correct misinformation on some products

There is an opportunity to build new brands made with plant-based ingredients

Products have to meet a genuine consumer need and be priced in a way that creates value for manufacturers, retailers and consumers

Our initial focus was on: But we also learned that: