Investor Factbook 2015
Investor Relations
2
Disclaimer
This information contains forward-looking statements which are based on current estimates and
assumptions made by the corporate management of Henkel AG & Co. KGaA. Statements with
respect to the future are characterized by the use of words such as “expect”, “intend”, “plan”,
“anticipate”, “believe”, “estimate”, and similar terms. Such statements are not to be understood
as in any way guaranteeing that those expectations will turn out to be accurate. Future
performance and results actually achieved by Henkel AG & Co. KGaA and its affiliated
companies depend on a number of risks and uncertainties and may therefore differ materially
from the forward-looking statements. Many of these factors are outside Henkel’s control and
cannot be accurately estimated in advance, such as the future economic environment and the
actions of competitors and others involved in the marketplace. Henkel neither plans nor
undertakes to update any forward-looking statements.
Henkel Investor Factbook 2015
3
Table of Content
2 Strategic & Financial Targets 2016
3 Laundry & Home Care
1 Henkel at a Glance
4 Beauty Care
5 Adhesive Technologies
6 Research & Development
8 Sustainability
9 Henkel Share
7 Procurement
Henkel Bonds
Henkel History
12 Contacts & Additional Information
11
10
Henkel Investor Factbook 2015
4
Henkel: Three areas of competence
A global leader in brands and technologies
Consumer Business Industrial Business
Laundry & Home Care Beauty Care Adhesive Technologies
Henkel Investor Factbook 2015
5
| 2014 | 2015 | Change | |
| Sales (m€) (OSG in %) | 16,428 | 18,089 | +10.1% (+3.0%) |
| Adjusted gross margin* (%) | 47.5 | 48.3 | +12.1% |
| Adjusted EBIT* (m€) | 2,588 | 2,923 | +12.9% |
| Adjusted EBIT margin* (%) | 15.8 | 16.2 | +40bp |
| Adj. EPS* per pref. share | 4.38 | 4.88 | +11.4% |
| NWC / sales (%) | 4.2 | 3.8 | -40bp |
| Net financial position (m€) | -153 | 335 | +488 m€ |
Key Financials 2015
Good performance in a tough environment
Henkel Investor Factbook 2015
*adjusted for one-time charges/gains and restructuring charges.
6
Sales 2015
Total sales: 18,089 million €
1%
50%
21%
28%
Emerging Markets**
Adhesive
Technologies
Beauty Care
Laundry &
Home Care
Corporate*
Western Europe
North America
Japan/Australia/
New Zealand
**Eastern Europe, Africa/Middle East,
Latin America, Asia (excluding Japan).
1% Corporate
Split by region
34%
20%
43%
Split by business unit
2%
*Corporate = sales and services not assignable
to the individual business units.
Henkel Investor Factbook 2015
7
17%
15%
54%
14%
Employees 2015
Number of employees: 49,450
Western Europe
Adhesive
Technologies
Beauty Care
Laundry &
Home Care
Functions
Eastern Europe
North America
Asia/Pacific
Latin America
Employees by business sector Employees by region
Africa/Middle East
30%
20%
9%
13%
7%
21%
Laundry &
Home Care Asia/Pacific
Adhesive
Technologies
Henkel Investor Factbook 2015
8
2.029
2.335 2.516 2.588
2.923
2011 2012 2013 2014 2015
15.605 16.510 16.355 16.428
18.089
2011 2012 2013 2014 2015
16.2%
Sales in m€, OSG in % EBIT adj. in m€, EBIT Margin adj. in %*
Sales and EBIT* Development
*EBIT and EBIT Margin adjusted for one-time charges/gains and restructuring charges.
3.0%
3.8%
5.9% 3.5% 3.4%
15.4%
14.1%
13.0%
15.8%
Henkel Investor Factbook 2015
9
Vision & Values
Our Vision
| | A global leader in brands and technologies |
Our Values
Customers
People
Financials
Sustainability
Family
Henkel Investor Factbook 2015
10
Our commitment
“Excellence is our Passion” is a commitment that unites all of us who work at Henkel. It represents a
performance challenge to ourselves and a performance promise to our customers – day by day,
around the world.
Henkel Investor Factbook 2015
11
Management Structure
Henkel AG & Co. KGaA
| | Henkel Management AG: |
| |
AG as sole personally liable partner Management of the businesses of Henkel AG & Co. KGaA |
| | Shareholders‘ Committee (KGaA): |
| |
Approval of significant corporate actions, strategy Appointment of Management Board (indirect via Supervisory Board AG) |
| | Supervisory Board (KGaA): |
| | Supervision of management |
| | Appointing the statutory auditor |
| | Annual General Meeting (KGaA): |
| | Approval of the financial statements |
| | Decision about the dividend |
Henkel Investor Factbook 2015
12
Management Structure
| Henkel Management AG (as sole personally liable partner) Monitoring duties Annual General Meeting Supervisory Board 16 members Nominations & Audit subcommittees Supervisory Board 3 members from SHs’ Committee Management Board Former members KGaA Mgmt. Board Appointment Approval of significant corp. actions, strategy Elects 8 shareholders representatives Elects members AG: 100% owned by Henkel AG & Co. KGaA Elects members Shareholders’ Committee Up to 10 members HR & Finance subcommittees Henkel AG & Co. K |
Henkel Investor Factbook 2015
13
Jan-Dirk Auris
Adhesive
Technologies
Management Board
Hans Van Bylen
CEO
Carsten Knobel
CFO
Pascal Houdayer
Beauty Care
Kathrin Menges
Human Resources
Bruno Piacenza
Laundry &
Home Care
Henkel Investor Factbook 2015
14
Table of Content (1/2)
2 Strategic Priorities & Financial Targets 2016
3 Laundry & Home Care
1 Henkel at a Glance
4 Beauty Care
5 Adhesive Technologies
6 Research & Development
Henkel Investor Factbook 2015
15
Active portfolio mgmt
Leverage top brands
Powerful innovations
Focus on customers
Globalize
Simplify Inspire
Outperform
Henkel strategy
A global leader
in brands
and technologies
Leverage strength in
Mature Markets
Expand footprint in
Emerging Markets
Cost efficiency
Best-in-class processes
Strong IT focus
Strong leadership
Talent & performance focus
Diverse teams
Globalize
Inspire
Outperform
Simplify
Henkel Investor Factbook 2015
16
Henkel’s financial targets 2016
20
Sales [bn €]*
10
EM sales [bn €]*
10
EPS CAGR [%]*
*incl. continuous portfolio optimization (without major acquisitions & divestments); EPS: adjusted per preferred share.
Henkel Investor Factbook 2015
17
OSG in %
42%
43%
44% 44%
43%
2011 2012 2013 2014 2015
Emerging Markets as driver of growth
Emerging Markets continue with strong organic growth, sales share at 43% due to FX headwinds
Sales Share in %
Henkel Investor Factbook 2015
+6.2% +7.8% +8.3% +7.8% +5.9%
18
Sourcing@Best
Simplify
Driving Operational Excellence
Shared Services ONE!GSC Horizon
Henkel Investor Factbook 2015
19
# Employees in Shared Services
Mexico City Bratislava Cairo Bangalore (Ext.) Manila Shanghai
2012
2014
2014
We have already reached our ambition level 2016!
Simplify
Shared Services
300
1.500
2.000
2.600
3.0003.000
2008 2012 2013 2014 2015 2016
2011
2006
2003
Mexico City Manila
Henkel Investor Factbook 2015
20
Global purchasing landscape supported by 6 Shared Service Centers
Simplify
Sourcing@Best
8 Sourcing Hubs
ONE! Global Supply Chain
Sao Regional Supply Offices
Paulo
Shanghai
Düsseldorf
Mexico
City
Moscow
Dubai
Rocky Hill
Scottsdale
Singapore
Amsterdam
Henkel Investor Factbook 2015
21
Simplify
Deep-Dive: ONE!GSC Horizon
Major change
project
Unification of all
supply chain
activities
Significant
transformational
impact
Overarching
processes
across all
Business Units
Henkel Investor Factbook 2015
22
ONE!GSC Horizon
Benefits
Cross-divisional
harmonization
Systems
consolidation
End-to-End
processes
Increased
service level
Improved business scalability and higher organizational agility
Henkel Investor Factbook 2015
23
ONE!GSC Horizon
Implementation Status
APAC, NA
EU 30 LATAM, MEA
Roll-out
Global Blueprint EU 30
Roll-out
Global
Blueprint
RoW
Global
Blueprint
Phase 2
Jan 1, 2016
Germany
Portugal
Spain
Phase 3
Other EU
countries
Go live
H2 2016
Phase 4
Other EU
countries
Go live
2017
2014 2015 2016 2017+
Launch
HGSC
Nov 14
Start
Purch.
Feb 1
Phase 1
Jul 1, 2015
Benelux
SHPE
Switzerland
Office
Opening
Jan 14
Henkel Investor Factbook 2015
24
Six focal areas:
Our target for 2030: Triple value for footprint made by our operations
Implementation of our strategy:
Products Partner People
Our sustainability strategy: Achieving more with less
Long-term goal and a clear implementation frame
Henkel Investor Factbook 2015
25
46% 45% 44% 43% 45%
54% 55% 56% 57% 55%
2011 2012 2013 2014 2015
Mature Markets Emerging Markets
Share of employees in Emerging Markets
55% of employees in Emerging Markets in 2015
Share of employees
Henkel Investor Factbook 2015
26
30% 31% 32% 33% 33%
2011 2012 2013 2014 2015
33% of women in Management positions in 2015
Share of women in management increased
Henkel Investor Factbook 2015
27
Table of Content (1/2)
2 Strategic Priorities & Financial Targets 2016
3 Laundry & Home Care
1 Henkel at a Glance
4 Beauty Care
5 Adhesive Technologies
6 Research & Development
Henkel Investor Factbook 2015
28
Laundry & Home Care
Key Financials
| 2014 | 2015 | Change | |
| Sales (m€) (OSG in %) | 4,626 | 5,137 | +11.0% (+4.9%) |
| Proportion of Group sales (%) | 28 | 28 | – |
| EBIT (m€) | 615 | 786 | +27.8% |
| Adjusted* EBIT (m€) | 749 | 879 | +17.4% |
| EBIT Margin (%) | 13.3 | 15.3 | +200bp |
| Adjusted* EBIT Margin (%) | 16.2 | 17.1 | +90bp |
| ROCE (%) | 23.4 | 21.1 | -2.3pp |
| EVA (m€) | 391 | 469 | +20.0% |
*Adjusted for one-time charges/gains and restructuring charges.
Henkel Investor Factbook 2015
29
Laundry & Home Care
Product Portfolio
• Laundry:
laundry detergents (powder, gel, tabs, liquids, megaperls, pouches); fabric finishers; laundry
conditioning products; hand washing detergents; laundry sheets; color dyes, stain removers
• Home Care:
dishwashing products; bath and toilet cleaners; glass cleaners; kitchen cleaners; specialty cleaners;
floor & carpet care; air fresheners & odor neutralizers; insect control & personal repellents; shoe care
Henkel Investor Factbook 2015
30
Laundry & Home Care
Leading market positions in active markets
Germany No. 1 Europe No. 1 World No. 2*
* Home Care No. 1
Henkel Investor Factbook 2015
31
Laundry & Home Care
Key activities 2015
• Improved performance based on
dirt repellent formulations
• Prevents contaminant build-up,
weakens adhesion of grease stains
High-performance Cleaners Perwoll Care & Repair Persil ProClean
• 1st fiber-repair detergent by Perwoll,
reduces fuzzing & pilling by up to 80%
• Effectively prevents new fuzzing &
pilling of fibers
• High-performance formula,
developed for US consumers
• Persil 2-in-1 recently rated #1
Detergent in America by a leading
consumer testing publication
Henkel Investor Factbook 2015
32
~1.2 bn€ ~0.4 bn€ ~0.3 bn€
Top 10 brands: 58% of total Laundry & Home Care sales
Laundry & Home Care
Top brands
Henkel Investor Factbook 2015
33
4.304
4.556 4.580 4.626
5.137
2011 2012 2013 2014 2015
570
659
714 749
879
2011 2012 2013 2014 2015
Laundry & Home Care
Sales and EBIT* Development in m€
5.7%
2.9%
4.7%
13.2%
15.6%
14.5%
Sales in m€, OSG in % EBIT adj. in m€, EBIT Margin adj. in %*
4.6% 16.2%
*EBIT and EBIT Margin adjusted for one-time charges/gains and restructuring charges.
4.9% 17.1%
Henkel Investor Factbook 2015
34
Laundry & Home Care
2015 Sales by Business Areas
32%
68%
Laundry & Home Care: 28% of Group sales
Laundry Care
Home Care
Henkel Investor Factbook 2015
35
Laundry & Home Care
Large Customers
Henkel Investor Factbook 2015
36
Laundry & Home Care
Main Competitors
Henkel Investor Factbook 2015
37
Laundry & Home Care
World Market for Laundry & Home Care Products
Detergents
Insecticides
Air Fresheners
Cleaning Products
Source: Euromonitor
Henkel Investor Factbook 2015
38
Table of Content (1/2)
2 Strategic Priorities & Financial Targets 2016
3 Laundry & Home Care
1 Henkel at a Glance
4 Beauty Care
5 Adhesive Technologies
6 Research & Development
Henkel Investor Factbook 2015
39
Beauty Care
Key Financials
| 2014 | 2015 | Change | |
| Sales (m€) (OSG in %) | 3,547 | 3,833 | +8.1% (+2.1%) |
| Proportion of Group sales (%) | 22 | 21 | – |
| EBIT (m€) | 421 | 561 | +33.3% |
| Adjusted* EBIT (m€) | 544 | 610 | +12.2% |
| EBIT Margin (%) | 11.9 | 14.6 | +270bp |
| Adjusted* EBIT Margin (%) | 15.3 | 15.9 | +60bp |
| ROCE (%) | 18.3 | 20.4 | +2.1pp |
| EVA (m€) | 226 | 328 | +45.3% |
*Adjusted for one-time charges/gains and restructuring charges.
Henkel Investor Factbook 2015
40
Hair Body Skin Oral
Beauty Care
Product Portfolio
Retail & Professional
Colorants
Styling
Care
Face Creams
Cleansing
Soaps Toothpaste
Bath & Shower
Deodorants
Body Lotion
Henkel Investor Factbook 2015
41
Beauty Care
Leading market positions in active markets
Beauty Care Retail
Germany No. 1
Hair Professional
World No. 3
Beauty Care Retail
Europe No. 3
Henkel Investor Factbook 2015
42
Beauty Care
Strengthening innovation leadership across categories
Schwarzkopf
• 1st Taft range with hold level 6
for the strongest Taft-hold ever
• Formula with liquid crystal-glosseffect for luxuriously shiny hair
Taft Ultimate
• 1st refreshing shower gel from
Fa with Micro Oil droplets
• Transparent formula providing soft
skin feel without greasy residues
Fa Magic Oil
• Successful launch of mega brand
Schwarzkopf in Retail in the US
• Recognized with multiple industry
and consumer awards
Henkel Investor Factbook 2015
43
~2.0 bn€ ~0.4 bn€ ~0.4 bn€
Top 10 brands: >92% of total Beauty Care sales
Beauty Care
Top brands
Henkel Investor Factbook 2015
44
482 514 525 544
610
2011 2012 2013 2014 2015
3.399 3.542 3.510 3.547
3.833
2011 2012 2013 2014 2015
3.0%
2.1%
5.4% 3.1%
15.9%
14.2% 14.5% 15.0%
Sales in m€, OSG in % EBIT adj. in m€, EBIT Margin adj. in %*
Beauty Care
Sales and EBIT* Development in m€
2.0%
15.3%
*EBIT and EBIT Margin adjusted for one-time charges/gains and restructuring charges.
Henkel Investor Factbook 2015
45
Beauty Care
2015 Sales by Business Areas
Beauty Care: 21% of Group sales
Hair
Skin/Oral
27%
68%
Body
5%
Henkel Investor Factbook 2015
46
Beauty Care
Large Customers
Henkel Investor Factbook 2015
47
Beauty Care
Main Competitors
Henkel Investor Factbook 2015
48
Table of Content (1/2)
2 Strategic Priorities & Financial Targets 2016
3 Laundry & Home Care
1 Henkel at a Glance
4 Beauty Care
5 Adhesive Technologies
6 Research & Development
Henkel Investor Factbook 2015
49
Adhesive Technologies
Key Financials
| 2014 | 2015 | Change | |
| Sales (m€) (OSG in %) | 8,127 | 8,992 | +10.6% (+2.4%) |
| Proportion of Group sales (%) | 49 | 50 | – |
| EBIT (m€) | 1,345 | 1,462 | +8.7% |
| Adjusted* EBIT (m€) | 1,402 | 1,534 | +9.4% |
| EBIT Margin (%) | 16.6 | 16.3 | -30bp |
| Adjusted* EBIT Margin (%) | 17.2 | 17.1 | -10bp |
| ROCE (%) | 19.8 | 18.4 | -140bp |
| EVA (m€) | 597 | 626 | +4.8% |
*Adjusted for one-time charges/gains and restructuring charges.
Henkel Investor Factbook 2015
50
Adhesive Technologies
Global Market Leader
Global No.1 with leading positions in all
regions
Leading through broad technology &
product portfolio
Strong global presence in mature and
emerging markets
Henkel Investor Factbook 2015
51
Adhesive Technologies
Leading solution provider in adhesives, sealants & functional coatings
Customer Partnership Innovation Leader
Comprehensive portfolio of leading
technologies
Innovation driver in the industry
Shaping industry megatrends (e.g.
Sustainability or Lightweight)
Deep industry expertise
Leading brands for industrial customers
and consumers
Best-in-class quality and service
Global presence and customer proximity
Henkel Investor Factbook 2015
52
Adhesive Technologies
Five Business Segments
Packaging
and
Consumer
Goods
Adhesives
Consumer,
Craftsmen
and
Building
Electronics
Transport
and
Metal
General
Industry
Henkel Investor Factbook 2015
53
Adhesive Technologies
Fostering technology leadership with strong innovations
Loctite 60 sec Universal Glue
• 1st all-purpose glue from Loctite
facilitating all kinds of household
repairs in only 60 seconds
• Bonds faster & allows
repositioning after application
Mobile Phone Bonding
• New total solution improves
process chain and sustainability
for assembling mobile phones
• Offering combines adhesives,
dispensing equipment & service
Loctite GC 10 Solder Paste
• Market’s first-ever solder paste
stable at room temperature
• Removal of cold storage,
improved logistics, lower energy
consumption and costs
Henkel Investor Factbook 2015
54
~2.7 bn€ ~1.6 bn€ ~0.9 bn€
Top 10 brands: >80% of total Adhesive Technologies sales
Adhesive Technologies
Top brands
Henkel Investor Factbook 2015
55
7.746
8.256 8.117 8.127
8.992
2011 2012 2013 2014 2015
1.075
1.246
1.370 1.402
1.534
2011 2012 2013 2014 2015
Adhesive Technologies
Sales and EBIT* Development in m€
2.7%
8.3%
3.6%
13.9%
16.9%
15.1%
Sales in m€, OSG in % EBIT adj. in m€, EBIT Margin adj. in %*
3.7%
*EBIT and EBIT Margin adjusted for one-time charges/gains and restructuring charges.
17.2%
2.4% 17.1%
Henkel Investor Factbook 2015
56
Adhesive Technologies
2015 Sales by Business Areas
Adhesive Technologies: 50% of Group sales
Electronics*
Consumers,
Craftsmen and Building
Transport and Metal
Packaging and
Consumer Goods
General Industry*
33%
21%
21%
14%
11%
* 2015 restated; A portion of handheld devices & displays business previously reported under General Industry (~2% of A sales), has been integrated into Electronics as of 2016.
Henkel Investor Factbook 2015
57
Adhesive Technologies
Packaging and Consumer Goods Adhesives
• Target markets: Consumer packed goods
• Mostly standardized applications, non-cyclical
business
• Business model: Value selling
• Broad portfolio and global scale
• Accounts for 33% of sales
Henkel Investor Factbook 2015
58
Adhesive Technologies
Transport and Metal
• Target markets: Automotive, Metal, and
Aerospace industries
• Serving customers along the entire value chain
• Offering innovative solutions with focus on
Sustainability, Lightweight & Efficiency
Improvement
• Partnering with customers early in the design and
concept phase
• Accounts for 21% of sales
Henkel Investor Factbook 2015
59
Adhesive Technologies
General Industry
• Target Markets: Industrial manufacturing,
machinery & equipment maintenance and repair,
automotive aftermarket
• Technologies: High performance adhesives,
sealants and functional coatings
• Channels: Multi-channel approach to reach all
users
• Business Model: Innovative customer solutions,
customer partnership to optimize manufacturing
processes, reduce assembly costs, increase
reliability
• Accounts for 14% of sales
Henkel Investor Factbook 2015
60
Adhesive Technologies
Electronics
• Target markets: Semiconductor and
Electronic Assembly
• Global business
• Focus on high growth or high margin segments
• Partner of choice for innovation leaders
• Accounts for 11% of sales
Henkel Investor Factbook 2015
61
Adhesive Technologies
Consumer, Craftsmen and Building
• Target markets: Repair, DIY, Building &
Construction
• Adhesive & sealant solutions for consumers
and professionals
• Strong global brand platforms
• Focus on distribution, brand communication &
innovation
• Accounts for 21% of sales
Henkel Investor Factbook 2015
62
Adhesive Technologies
Partner with our customers
• The leading solution provider for
adhesives, sealants and functional
coatings worldwide
• Providing customized solutions to
130,000 customers
• 6,500 specialists with deep ties &
understanding of our customers
• Long-term relationships with joint
developments
Henkel Investor Factbook 2015
63
Industry*
| Consumers & Craftsmen | Building |
Adhesive Technologies
Key Competitors per Segment
*Packaging and Consumer Goods, Transport and Metal, General Industry, Electronics.
Henkel Investor Factbook 2015
64
Market accounts for around
60 bn €
Highly specialized and
fragmented in ~ 50
segments
Henkel only player present
in most segments
Adhesive Technologies
World Market for Adhesives, Sealants & Functional Coatings
Henkel Investor Factbook 2015
65
Table of Content (1/2)
2 Strategic Priorities & Financial Targets 2016
3 Laundry & Home Care
1 Henkel at a Glance
4 Beauty Care
5 Adhesive Technologies
6 Research & Development
Henkel Investor Factbook 2015
66
410 408 415 413
478
2011 2012 2013 2014 2015
Research & Development expenditures
Laundry &
Home Care
Beauty Care
Adhesive
Technologies
R&D expenditures by business
sector
15%
63%
22%
in m€ / in % sales
R&D expenditures*
*Includes restructuring charges of 14m€ (2011), 2m€ (2012), 1m€ (2013), 3m€ (2014), 14m€ (2015)
Henkel Investor Factbook 2015
2.5% 2.5% 2.6% 2.5% 2.6%
67
Selected R&D sites
Henkel Investor Factbook 2015
68
Research & Development
Innovation Rate*
Striving for innovation leadership
| Laundry & Home Care | >45% |
| Beauty Care | >45% |
| Adhesive Technologies | ~30% |
*Percentage of sales from new products launched: over past 3 years for Laundry & Home Care and Beauty Care, over past 5 years for Adhesive Technologies.
Henkel Investor Factbook 2015
69
Table of Content (2/2)
8 Sustainability
9 Henkel Share
7 Procurement
Henkel Bonds
Henkel History
12 Contacts & Additional Information
11
10
Henkel Investor Factbook 2015
70
60%
21%
19%
34%
15%
51%
Procurement
Direct Material Expenditure
Laundry &
Home Care
Packaging Raw Materials
Purchased Goods &
Services
Beauty Care
Material expenditure by type Material expenditure by business sector
Adhesive
Technologies
Total direct material expenditure 2015: 7.8 bn€
Henkel Investor Factbook 2015
71
Table of Content (2/2)
8 Sustainability
9 Henkel Share
7 Procurement
Henkel Bonds
Henkel History
12 Contacts & Additional Information
11
10
Henkel Investor Factbook 2015
72
Vision
Values
A global leader in brands and technologies.
We put our customers at the center of what we do.
We value, challenge and reward our people.
We drive excellent sustainable financial performance.
We are committed to leadership in sustainability.
We build our future on our family business foundation.
What guides us
Our vision and our values
Henkel Investor Factbook 2015
73
Our long tradition in sustainability
25 years of reporting
Henkel Investor Factbook 2015
74
• Environmental indicators per metric ton of output
• Occupational accidents per million hours worked
Our long tradition in sustainability
Performance from 2005 to 2015
Henkel Investor Factbook 2015
75
© United Nation
Global climate agreement in Paris and “Agenda 2030 for Sustainable Development”:
Common understanding will drive progress and facilitate cooperation
Global challenges
2015 was an important milestone for a common understanding
Henkel Investor Factbook 2015
76
With our proven track record in sustainability and our clear strategy, we will
be supporting the achievement of these global sustainability goals. We are convinced that
sustainability is becoming increasingly important for our business success.
Our contribution
Our strategy reflects global sustainability priorities and goals
Henkel Investor Factbook 2015
77
Six focal areas:
Our target for 2030: Triple value for footprint made by our operations
Implementation of our strategy:
Products Partner People
Our sustainability strategy: Achieving more with less
Long-term goal and a clear implementation frame
Henkel Investor Factbook 2015
78
Our products Our partners Our people
Our products deliver more
value at a reduced
ecological footprint
Our partners help us drive
sustainability along our
value chain
Our people make the
difference through their
dedication, skills and
knowledge
How we implement our sustainability strategy?
Our products, our partners and our people
Henkel Investor Factbook 2015
79
Beauty Care
Syoss Renew 7
New platform formula
Contains more renewable
ingredients
Decreased CO2-footprint
Colour Catcher
Color run prevention
Savings in the areas of water,
energy, materials and waste
Made of cellulose, FSCcertified and compostable
Laundry & Home Care
Loctite GC 10
Temperature-stable solder paste
Reduces energy consumption
and waste volume
Lowers end of line defects
Adhesive Technologies
Our products
More value at a reduced environmental footprint
Henkel Investor Factbook 2015
80
Knowledge platform for training
and exchange of experiences
Food Safe Packaging Portal
Addressing the environmental
impact of consumer behavior
Inform and educate
consumers
Together for a more sustainable
supply chain
”Together for Sustainability“
initiative
Our partners
The key for sustainability along our value chain
Suppliers Retailers Experts
Henkel Investor Factbook 2015
81
Ambassador program Corporate Citizenship Occupational safety
Around 6,200 Henkel
employees have been qualified
as sustainability ambassadors so
far
More than 5 million people
around the world have been
supported over the past five
years by our social engagement
activities
Amount of accident rates and lost
working days by 33 percent
Our people
They make the difference with their commitment, skills and knowledge
Henkel Investor Factbook 2015
82
+10%
+20%
-15%
-15%
-15%
Targets 2015
More net sales per
ton of product
Safer per million
hours worked
Less energy per
ton of product
Less waste per ton
of product
Less water per ton
of product
+30% Total efficiency
-30%
-30%
+40%
+22%
-30%
+75%
Targets 2020
-23%
-18%
+33%
+11%
-17%
Status 2015
+38%
On the way to “Factor 3”: Performance and outlook
Interim targets for 2015 achieved and new targets for 2020 defined
Henkel Investor Factbook 2015
83
Committed to drive progress along the entire value chain
Additional ambitions for 2020
Henkel Investor Factbook 2015
• Energy/CO2:
– 6% in CO2
emission
• Customers/
Consumer:
Save 50 Mio ton
CO2
• Product safety:
Commitments &
transparency
• Packaging:
-10% in weight/NES
vs. 2010
• Recycling
education:
300 Mio consumers
• Sustainable behavior: Inspire and mobilize 50.000 employees
• Employee’s social engagement: Improve the lives of more than 10 Mio people
Value Chain
Social Progress / People
• Additional focus:
– 40% water in water
scare areas
40% plants with zero
waste to landfill
20% renewable
electricity
Raw material Disposal
sourcing
Use of our
Production Logistics products
• TfS:
Improve labor
standards for 1 Mio
workers
• PO/PKO:
Zero Net
Deforestation
84
Leading position confirmed
Status Sustainability Ratings & Indices 03/2016
a
Oekom confirmed Prime Status, Henkel among the
world’s best in its sector
Profile update in 2015, Henkel among the leaders in its
“Household and Personal Products” comparison
Henkel included in World’s Most Ethical Companies list
for 9th time in a row
Henkel included in Global Challenge Index for its
wide-ranging commitment to sustainability since
2007
Henkel included as leading global company in
terms of environmental, social and governance
criteria for 5th time
Included in Ethibel PIONEER and Ethibel
EXCELLENCE Investment Registers and indices
since 2002
Constituent of global equity indices since 2008:
ECPI Euro Ethical Equity
ECPI EMU Ethical Equity
ECPI Global Ethical Euro
ECPI Global Developed ESG Best in class Equity
Henkel again included in the Euronext Vigeo
World 120, the Europe 120 and the Eurozone
120 index
Further included in the FTSE4Good ethical index
since its inception in 2001
Again represented in global sustainbility indices:
MSCI World ESG
MSCI Europe ESG
Henkel received Silver Class Award in Sustainability
Yearbook 2016
Henkel again joins the list “Global 100 Most Sustainable
Corporations in the World”
Global 100
Most Sustainable
Corporations
World’s Most Ethical
Companies® Honoree
Henkel awarded with “Gold Recognition Level” from
international rating agency EcoVadis
Participant in Carbon Disclosure Project since 2004,
Disclosure & Performance score of 89B in 2015.
Again top grade “AAA” and included in the sustainable
investment universe of the Zürcher Kantonalbank
Henkel Investor Factbook 2015
85
Table of Content (2/2)
8 Sustainability
9 Henkel Share
7 Procurement
Henkel Bonds
Henkel History
12 Contacts & Additional Information
11
10
Henkel Investor Factbook 2015
86
The Henkel Share
Share Data
Note: The number of ADRs outstanding for ordinary (US42550U1097) & preferred (ISIN US42550U2087) shares was ~1.7 million.
| Preferred | Ordinary | |
| Security Code No. | 604843 | 604840 |
| ISIN Code | DE0006048432 | DE0006048408 |
| Number of Shares | 178,162,875 | 259,795,875 |
| Stock exch. Symbol | HEN3.ETR | HEN.ETR |
Henkel Investor Factbook 2015
87
The Henkel Share
Share & Shareholder Structure
| Preferred shares | Ordinary shares |
| 178.2 million shares outstanding | 259.8 million shares outstanding |
| – | 61.02% Henkel Family (share-pooling agreement) |
| 100% free-float (3.7m treasury stock as of Dec. 2015) |
38.98% free-float |
| Higher liquidity (571,000 shares per trading day on avg. in 2015) |
Lower liquidity (104,000 shares per trading day on avg. in 2015) |
| No voting rights | Voting rights |
| Preferred dividend (+0.02 € vs. ordinary share) |
Ordinary dividend |
Henkel Investor Factbook 2015
88
The Henkel Share
Henkel Major Indices
| March 31st, 2015 | Number of constituents | Weighting (in %) |
| DAX 30 | 30 | 2.05 |
| MSCI World | 1,647 | 0.06 |
| MSCI Europe | 446 | 0.25 |
| MSCI Germany | 55 | 1.80 |
| Euro Stoxx | 293 | 0.51 |
| Euro Stoxx Consumer Goods | 41 | 2.67 |
| Euro Stoxx Sustainability | 219 | 0.65 |
| Dow Jones Titans 30 Personal & Household Goods | 33 | 1.33 |
| FTSE World Europe | 608 | 0.24 |
| FTSE Eurofirst 300 | 317 | 0.27 |
| FTSE 4 Good | 791 | 0.11 |
| Ethibel Sustainability Index Europe | 187 | 0.58 |
Henkel Investor Factbook 2015
89
The Henkel Share (1/2)
Key Data 2011 to 2015
| 2011 | 2012 | 2013 | 2014 | 2015 | |
| Share price at year-end* | |||||
| Ordinary share | 37.40 | 51.93 | 75.64 | 80.44 | 88.62 |
| Preferred share | 44.59 | 62.20 | 84.31 | 89.42 | 103.20 |
| High for the year* | |||||
| Ordinary share | 41.10 | 52.78 | 75.81 | 80.44 | 99.26 |
| Preferred share | 49.81 | 64.61 | 84.48 | 90.45 | 115.20 |
| Low for the year* | |||||
| Ordinary share | 30.78 | 37.25 | 50.28 | 67.00 | 76.32 |
| Preferred share | 36.90 | 44.31 | 59.82 | 72.64 | 87.75 |
* Closing share price, Xetra trading system.
Henkel Investor Factbook 2015
90
The Henkel Share (2/2)
Key Data 2011 to 2015
*Closing share price, Xetra trading system.
| 2011 | 2012 | 2013 | 2014 | 2015 | |
| Dividends | |||||
| Ordinary share | 0.78 | 0.93 | 1.20 | 1.29 | 1.45 |
| Preferred share | 0.80 | 0.95 | 1.22 | 1.31 | 1.47 |
| Market capitalization in bn€ | 17.6 | 24.6 | 34.7 | 36.8 | 41.4 |
| Ordinary share in billion euros | 9.7 | 13.5 | 19.7 | 20.9 | 23.0 |
| Preferred share in billion euros | 7.9 | 11.1 | 15.0 | 15.9 | 18.4 |
Henkel Investor Factbook 2015
91
Earnings per share
2011 to 2015
| 2011 | 2012 | 2013 | 2014 | 2015 | |
| Earnings per share | |||||
| Ordinary share | 2.67 | 3.40 | 3.65 | 3.74 | 4.42 |
| Preferred share | 2.69 | 3.42 | 3.67 | 3.76 | 4.44 |
| Adjusted* earnings per share | |||||
| Ordinary share | 3.12 | 3.68 | 4.05 | 4.36 | 4.86 |
| Preferred share | 3.14 | 3.70 | 4.07 | 4.38 | 4.88 |
* adjusted for one-time charges/gains and restructuring charges.
Henkel Investor Factbook 2015
92
Source: Thomson One Reuters
Share Price Development
Henkel shares outperforming the market
Henkel Investor Factbook 2015
93
Further increase in dividend, payout ratio at 30,2%
New policy since 2013: 25%-35% dividend payout ratio
+12.2%
Dividend per preferred share in € Payout ratio in %
Henkel Investor Factbook 2015
94
Table of Content (2/2)
8 Sustainability
9 Henkel Share
7 Procurement
Henkel Bonds
Henkel History
12 Contacts & Additional Information
11
10
Henkel Investor Factbook 2015
95
-85
959
-153
335
2012 2013 2014 2015
Development of Financial Debt
Development of Net Financial Position Borrowings
Henkel Investor Factbook 2015
96
Development Key Financial Ratios
| 2011 | 2012 | 2013 | 2014 | 2015 | |
| Operative Debt Coverage (%)* | 91.6 | 507.1 | n.a.** | 274.8 | 375.2 |
| Interest Coverage Ratio | 14.0 | 14.3 | 23.9 | 48.4 | 75.7 |
| Equity Ratio (%) | 46.9 | 48.7 | 52.5 | 55.6 | 61.9 |
*Hybrid bond included on 50% debt basis.
** Figure cannot be calculated due to our positive net financial position.
Henkel Investor Factbook 2015
97
Credit Ratings
| Rating as of December 31, 2015 | S&P | Moody’s |
| Long-term | A flat | A2 |
| Outlook | Stable | Stable |
| Short-term | A-1 | P1 |
Henkel Investor Factbook 2015
98
Henkel Bond Data
| Hybrid Bond | |
| Volume | 1.3 bn€ |
| Nominal Coupon | 5.375% |
| Coupon Payment Date | November 25 |
| Called on first call option date | Nov. 25, 2015 |
| WKN / Security code no. | A0JBUR |
| ISIN | XS0234434222 |
Hybrid bond called on first call option date Nov. 25, 2015
Henkel Investor Factbook 2015
99
Table of Content (2/2)
8 Sustainability
9 Henkel Share
7 Procurement
Henkel Bonds
Henkel History
12 Contacts & Additional Information
11
10
Henkel Investor Factbook 2015
100
History of Henkel (1/3)
1876 Foundation of Henkel & Cie in Aachen by Fritz Henkel
1878 Henkel’s Bleich-Soda marks the beginning of the company’s success story.
Relocation of Henkel & Cie to Düsseldorf
1907 Launch of Persil, the world’s first self-acting laundry detergent
1913 First subsidiary production company abroad:
Henkel & Cie AG, Pratteln, Switzerland
1922 First production of adhesives for captive use
1929 P3 cleaners for industrial and craft applications were marketed for the first time
1950 Acquisition of TheraChemie: liquid hair colorant Poly Color
1951 P3 Products (Pty) Ltd was founded in Durban, South Africa. The company was the
first Henkel subsidiary outside Europe
1960 Acquisition of Standard Chemical Products Inc of Hoboken/New Jersey and
Charlotte/North Carolina, USA, thus entering the US chemical products market
1973 Patent application for Zeolite A (phosphate substitute; Henkel brand SASIL)
Henkel Investor Factbook 2015
101
1974 Minority share interest in The Clorox Company of Oakland,
California, USA (sold in 2004)
1983 First phosphate-free powder detergent (Dixan)
1985 First listing of Henkel preferred shares
1990 First joint venture in China: Shanghai Henkel Chemicals Ltd.
1991 Henkel-Ecolab joint venture and increased participation in Ecolab
Inc., St. Paul/Minnesota, USA
1991 Foundation of Henkel Asia-Pacific (HAP) Ltd., Hong Kong
1995 Acquisition of Hans Schwarzkopf GmbH, Hamburg
1996 First listing of Henkel ordinary shares
1997 Acquisition of Loctite Corp., Hartford/Connecticut, USA
| 1999 | Carve-out of the Chemical Products business sector: Formation of Cognis B. V. |
2001 Sale of Cognis and Henkel-Ecolab: Focus on Brands and Technologies
History of Henkel (2/3)
Henkel Investor Factbook 2015
102
2004 Acquisition of The Dial Corporation in Scottsdale/Arizona, USA, and of
Advanced Research Laboratories (ARL) in Costa Mesa/ California, USA
2007 Persil 100 Years
2008 Acquisition of National Starch Adhesives and Electronic Materials
Businesses
2009 111 Years Schwarzkopf
2010 New release of Vision and Values
2011 60 years of Pril
2012 Presentation of Strategy and Financial Targets 2016
2013 Henkel family extends share-pooling agreement
2014 Acquisition of The Spotless Group (Laundry & Home Care), France,
Sexy Hair / Kenra / Alterna (Beauty Care), USA and of
The Bergquist Company (Adhesive Technologies), USA
2015 30 years since first stock listing of preferred shares in 1985
History of Henkel (3/3)
Henkel Investor Factbook 2015
103
Table of Content (2/2)
8 Sustainability
9 Henkel Share
7 Procurement
Henkel Bonds
Henkel History
12 Contacts & Additional Information
11
10
Henkel Investor Factbook 2015
104
Investor Relations Team
Henkel AG & Co. KGaA
Investor Relations
40191 Düsseldorf
Germany
| Phone: Fax: E-mail: |
+49-211-797-3937 +49-211-798-2863 [email protected] |
From left to right:
Renata Casaro, Andrea Haschke, Ines Göldner,
Eva Sewing, Ewa Penczek, Christopher Hüsgen
www.henkel.com/ir
Henkel Investor Factbook 2015
105
For download please go to www.henkel.com/ir
or find further content in the IR section of Henkel Corporate App for iPad
Further Information Sources
Annual report
Quarterly report
Sustainability report
Roadshow & conference presentations
Additional selected information available online
Henkel Investor Factbook 2015
106
Event dates 2016
• May 19th, 2016
Q1 2016 Financials
• June 6th-7th, 2016 Investor & Analyst Day
Adhesive Technologies, Heidelberg
• August 11th, 2016
Q2 2016 Financials
• November 11th, 2016
Q3 2016 Financials
• November 17th, 2016
Strategy presentation
Henkel Investor Factbook 2015
Thank You!