henkel investor factbook · pdf fileneither plans nor undertakes to update any forward-looking...

Investor Factbook 2017Henkel 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. This document has

been issued for information purposes only and is not intended to constitute an investment

advice or an offer to sell, or a solicitation of an offer to buy, any securities.

April 10, 2018Henkel Investor Factbook 2017

3

Table of Content


1. Henkel at a Glance

2. Henkel 2020+ Strategic Priorities & Ambition

3. Adhesive Technologies

4. Beauty Care

5. Laundry & Home Care

6. Research & Development

7. Procurement

8. Sustainability

9. Henkel Shares

10. Henkel Bonds

11. Henkel History

12. Contacts & Additional Information

4

Henkel: Three Areas of CompetenceA global leader in brands and technologies


Consumer BusinessIndustrial Business

Adhesive Technologies Beauty Care Laundry & Home Care

5

Henkel GroupKey Financials 2017


pp = percentage points1 Adjusted for one-time charges/gains and restructuring expenses.

6

Henkel GroupSales and adjusted EBIT Development


Sales in €m, OSG in % EBIT in €m, EBIT Margin in %1

1 EBIT and EBIT Margin adjusted for one-time charges/gains and restructuring expenses.

20,029

18,714

18,089

16,428

16,355

0 6,000 12,000 18,000 24,000

2017

2016

2015

2014

2013

3,461

3,172

2,923

2,588

2,516

0 1,000 2,000 3,000 4,000

2017

2016

2015

2014

2013

3.1%

3.0%

3.4%

3.5%

16.9%

16.2%

15.8%

15.4%

3.1% 17.3%

7

Henkel GroupSales 2017


Total sales: € 20,029 m

Sales by business unit 2017 Sales by region 2017

8

Henkel GroupEmployees 2017


Number of employees1: 53,700

Employees by region Employees by organizational unit

1 As at year-end 2017.

9

Our Purpose, Vision, Mission and Values


PurposeCreating sustainable value

Leading with our innovations, brands and technologies Vision

Serving our customers and consumers worldwide as the most trusted partner with leading positions in all relevant markets

and categories – as a passionate team united by shared valuesMission

ValuesCustomers and Consumers – People – Financial Performance –

Sustainability – Family Business

10

Management StructureHenkel 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

11

Management Structure


Annual General Meeting

Supervisory Board

16 members

Nominations & Audit subcommittees

Shareholdersʼ Committee

Up to 10 members

HR & Finance subcommittees

Henkel Management AG

(as sole personally liable partner)

Management BoardSupervisory Board

3 members from SHs’ Committee

Elects 8 shareholders representatives Elects members

Monitoring duties Approval of significant corp. actions, strategy

Appointment

AG: 100% owned by Henkel AG & Co. KGaA

Elects mem

bers

Henkel AG & Co. KGaA

12

Management Board


Hans Van BylenChief Executive Officer

(CEO)

Jan-Dirk Auris Adhesive Technologies

Carsten Knobel Finance (CFO), Purchasing &

Integrated Business Solutions

Jens-Martin SchwärzlerBeauty Care

Kathrin MengesHuman Resources &

Infrastructure Services

Bruno PiacenzaLaundry & Home Care

13

Table of Content





4. Beauty Care



7. Procurement

8. Sustainability

9. Henkel Shares

10. Henkel Bonds

11. Henkel History


14

Clear and Exciting Growth StrategyHenkel 2020+ Strategic Priorities


15

▪ Customer & Consumer EngagementRoadmaps for top 100 industrial customers

Digital Connect2Consumer program

▪ Leading Brands & TechnologiesSales of top 3 brands increased to € 6.4 bn

Focus on successful development of local brands

▪ Exciting Innovations & ServicesSuperior tailor-made solutions in growth segments

First influencer brands in Hair Professional

▪ New Sources of GrowthCompelling acquisitions complementing our portfolio

VC investments in digital services & technologies

Henkel Investor Factbook 2017

Drive GrowthSubstantial progress 2017

16

▪ Drive Digital BusinessDouble-digit increase of digital sales in all

business units

▪ Leverage Industry 4.0Smart factory concepts and further digitalization

of integrated Global Supply Chain

▪ eTransform OrganizationChief Digital Officer driving digital transformation,

launch of Henkelx


Accelerate DigitalizationSubstantial progress 2017

17

▪ Energized and Empowered Teams“Henkel 2020+ Talks” – powerful global dialogs

between leaders and employees

▪ Fastest Time-to-MarketAdhesive Technologies’ 26 customer-facing steering

units enable closer customer collaboration,

acceleration of time-to-market of consumer goods

innovations

▪ Smart SimplicityImplementation of flexible business models

to adapt to fast-changing markets


Increase AgilitySubstantial progress 2017

18

▪ ONE!ViEWNew approach to further optimize cost

management

▪ Net Revenue ManagementIncreased efficiency of our promotion activities

▪ Most efficient structuresContinue optimization and consolidation of

structures

▪ ONE! Global Supply ChainOptimize cost, fully capturing cross-business

synergies


Fund GrowthSubstantial progress 2017

19

▪ Continued ambition to deliver attractive returns

▪ Clear initiatives to fund growth

▪ Consistent capital allocation supporting our ambition


Attractive Returns

20April 10, 2018Henkel Investor Factbook 2017

Continued Ambition to deliver Attractive Returns

Drive Growth

Fund Growth

Superioradjusted

EPS growth

Consistent organic sales growth

in mature and emerging markets

Expansion offree cash flow

Improvement ofadjusted EBIT margin



Organic Sales Growth 2 – 4%(Average 2017 – 2020)

▪ OSG to be driven by all Business Units

▪ Further expansion of market shares

▪ Sales in Emerging Markets to grow over-proportionately

▪ Growth also in Mature Markets



Adj. EPS Growth 7 – 9%(CAGR 2016 – 2020, per preferred share)

▪ Organic performance as key EPS driver

▪ Active portfolio management, incl. small- and mid-sized acquisitions

▪ Adaptation of our structures to the market to continue

▪ Foreign exchange impact included

▪ Share buy-back not included



Adj. EBIT Margin Continued improvement in adjusted EBIT margin

▪ Continuous improvement of Gross Margin

▪ Further optimization of SG&A expenses

▪ Realization of synergies from acquisitions



Free Cash Flow Continued focus on free cash flow expansion

▪ Excellent track record of cash generation

▪ Fueled by significant operating profit

▪ Driven by further improvement of Net Working Capital

▪ Supported by “asset light” structure


Financial Ambition 2020

Organic Sales Growth 2 – 4%(Average 2017 – 2020)

Adj. EPS Growth 7 – 9%(CAGR 2016 – 2020, per preferred share)

Adj. EBIT Margin Continued improvement in adjusted EBIT margin

Free Cash Flow Continued focus on free cash flow expansion


Clear Initiatives to Fund Growth

Drive Growth

Fund Growth

Superioradjusted

EPS growth

Consistent organic sales growth in both

mature and emerging markets

Expansion offree cash flow

Improvement ofadjusted EBIT margin

27

▪ New cost management approach related to

non-personnel costs

▪ Enhance budget transparency

▪ Global coverage, across Business Units and Functions

▪ Started in 2017, more than 120 initiatives underway

▪ Already delivered significant contribution in efficiencies


Value-creating Resource Allocation

28

▪ Optimize trade spend and leverage pricing power

▪ Global coverage, across Business Units

▪ Pilot project completed, roll out to North America and

Europe ongoing

▪ Efficiencies expected to ramp up in the course of 2018


Net Revenue Management

29

▪ Bring Shared Services to the next efficiency level

▪ Master volume growth and optimize set-up

▪ Leverage capabilities with automation and robotics

▪ Accelerate synergies across Business Units

▪ Capture potential from acquisitions

▪ Optimize manufacturing and logistics footprint

▪ Continuous and sustainable efficiency gains


Most Efficient Structures

30

▪ Successful implementation in Europe

▪ Roll-out to North America in 2018

▪ Leverage synergies across Business Units

and Functions

▪ Continuous and sustainable efficiency gains


ONE! Global Supply Chain

31

▪ >€ 100 m efficiency gains in 2017Fully on track in the realization of efficiencies,

already significant contribution in 2017

▪ >€ 500 m annual efficiency gainsExpected sustainable annual efficiency gains

in full swing by 2020

▪ Re-invest in growthFair share of annual efficiency gains to be re-invested

to support innovation and future growth


Fund Growth initiativesImplementation on track

February 22, 2018 31

32

Consistent Capital Allocation supporting our Ambition


Strong Sources of Cash Consistent Capital Allocation

ExcellentFree Cash Flow

Generation

SignificantBalance Sheet

Optionality

Investments

Acquisitions

Dividends

33

▪ Increase CapEx by ~40% to ~€ 3 bn in strategic cycle

2017 – 2020

▪ Significant investments to support growth initiatives,

innovation, infrastructure and IT

▪ Step up investments in digitalization

▪ Venture Capital Fund of up to € 150 m


Consistent Capital Allocation: Investments

34

▪ Integral part of our strategy

▪ Strengthen our portfolio both in core and adjacencies

▪ Disciplined approach in acquisitions

▪ Commitment to single-A rating


Consistent Capital Allocation: Acquisitions

35

▪ Established dividend policy incl. payout ratio of 25-35%

of adjusted net income after minorities

▪ Consistent growth of dividend payment

▪ Based on strong earnings profile


Consistent Capital Allocation: Dividends

36

▪ Generate profitable growth and attractive returns

▪ Become more customer-focused, innovative and agile

▪ Lead digital transformation in all business activities

▪ Promote sustainability across the entire value chain

▪ Advance our portfolio with value-adding acquisitions


Compelling Ambition


Clear and Exciting Growth StrategyHenkel 2020+ Strategic Priorities

38

Table of Content





4. Beauty Care



7. Procurement

8. Sustainability

9. Henkel Shares

10. Henkel Bonds

11. Henkel History


39

Adhesive TechnologiesKey Financials


40

Adhesive TechnologiesSales and adjusted EBIT Development




9,387

8,961

8,992

8,127

8,117

0 2,000 4,000 6,000 8,000 10,000

2017

2016

2015

2014

2013

1,734

1,629

1,534

1,402

1,370

0 500 1,000 1,500 2,000

2017

2016

2015

2014

2013

2.8%

2.4%

3.7%

2.7%

18.2%

17.1%

17.2%

16.9%

5.0% 18.5%

41

▪ Consumer ElectronicsDouble-digit growth driven by applications for mobile

devices enabling new designs and functionalities

▪ General IndustrySignificant growth in Manufacturing and Assembly

with high-performance Loctite products

▪ Automotive IndustryVery strong growth driven by comprehensive

portfolio of more than 300 innovative solutions


Adhesive TechnologiesHighlights FY 2017

42

Adhesive TechnologiesGlobal Market for Adhesives, Sealants & Functional Coatings


Global market leadership Consistent market outperformance

1 Source: IHS Markit World Economic Service Jan 2018 release

▪ Market accounts for around € 65 bn

▪ Highly specialized and fragmented in

~ 50 segments

▪ Henkel only player present in most segments

▪ Industrial Production Index (IPX) as key market

indicator for Adhesive Technologies

▪ Organic sales growth of Adhesive Technologies

continuously outperforming IPX

€ 9 bn

~€ 65 bn

Competitors

IPX1

OSG Adhesive Technologies[%]

20152013 2016 20172014

43

▪ Customer-driven and transformative solutions

▪ Global footprint and proximity to 130,000 industrial

customers in mature and emerging markets

▪ Innovation leader with unique technology portfolio

▪ Comprehensive application know-how

▪ Strong global brands in B2B and B2C

▪ Skilled and passionate team in a customer-centric

agile organization


Adhesive TechnologiesGlobal Market Leader with Scale and Breadth

Proven track-record of profitable growth

44

Adhesive TechnologiesInnovation and Technology Leadership


Global coverage through high-tech R&D sites Unique innovation capabilities

▪ 12 major R&D facilities worldwide

▪ Global network of state-of-the-art innovation and application centers

▪ Tailor-made innovations based on40 technologies

▪ Strategic innovations targeting adjacentgrowth markets

The combination of global footprint, customer proximity, unique technology portfolio, expert and industry knowledge leverages our full innovation potential

45

Adhesive Technologies2017 Sales by Business Areas


Adhesive Technologies: 47% of Group sales

46

▪ Target markets: Fast moving consumer goods

and packaging industries

▪ Non cyclical markets, strongly driven by consumer trends

▪ Innovative and sustainable solutions with global scale

▪ Partnering with our customers to add value to their

brands and offerings


Adhesive TechnologiesPackaging and Consumer Goods Adhesives

47

▪ Target markets: Automotive, aerospace and

metal industries

▪ Serving customers along the entire value chain

▪ Offering innovative solutions with focus on sustainability,

lightweight & e-mobility

▪ Partnering with customers early in the design and

concept phase


Adhesive TechnologiesTransport and Metal

48

▪ Target markets: Industrial manufacturing, machinery &

equipment maintenance and repair, automotive

aftermarket

▪ Technologies: High performance adhesives, sealants and

functional coatings

▪ Global reach through Industrial distribution,

e-Commerce and direct channels

▪ Innovative Demand Generation model through customer

training and education to increase reliability and reduce

assembly costs


Adhesive TechnologiesGeneral Industry

49

▪ Target markets: Electronic device assembly and

semiconductor packaging

▪ Global business

▪ Focus on high growth or high margin segments

▪ Partner of choice for innovation leaders


Adhesive TechnologiesElectronics

50

▪ Target markets: Stationery, repair, DIY,

building & construction

▪ Adhesives & sealants solutions for consumers

and professionals

▪ Global presence with leading positions

▪ Strong global brand platforms, excellence in route to

market & recognized innovation leadership


Adhesive TechnologiesConsumer, Craftsmen and Building


Adhesive TechnologiesTop Brands, Sales 2017

Top 10 brands: >80% of total Adhesive Technologies sales

~€ 0.9 bn~€ 1.7 bn~€ 3.1 bn


Adhesive TechnologiesKey Competitors

http://www.sika.com/

http://www.hbfuller.com/


Table of Content




4. Beauty Care



7. Procurement

8. Sustainability

9. Henkel Shares

10. Henkel Bonds

11. Henkel History



Beauty CareKey Financials

55

Beauty CareSales and adjusted EBIT Development




3,868

3,838

3,833

3,547

3,510

0 1,000 2,000 3,000 4,000

2017

2016

2015

2014

2013

665

647

610

544

525

0 200 400 600 800

2017

2016

2015

2014

2013

2.1%

2.1%

2.0%

3.0%

16.9%

15.9%

15.3%

15.0%

0.5% 17.2%

56

▪ ProfessionalStrong performance of Schwarzkopf innovations and

acquired businesses enhance market position

▪ Coloration & StylingStrong sales growth and market share gains across

regions thanks to successful innovations

▪ USA RetailOngoing strong momentum driven by Body Care and

further expansion of mega-brand Schwarzkopf


Beauty CareHighlights FY 2017


Beauty CareStrong brands and innovations since over 120 years▪ Leading positions in active markets worldwide

▪ Focused portfolio of strong global and local

brands

▪ Highly trusted partner for retail and salon

customers

▪ State-of-the-art consumer-centric innovations

▪ Digital transformation to strengthen business

and optimize manufacturing and logistics

▪ Passionate team with winning spirit and strong

performance culture


Beauty CareProduct Portfolio

Hair Body Skin Oral

▪ Retail & Professional

▪ Coloration

▪ Styling

▪ Care

▪ Soaps

▪ Bath & Shower

▪ Deodorants

▪ Body Care

▪ Face

Creams

▪ Cleansing

▪ Toothpaste

59

Beauty Care2017 Sales by Business Areas


Beauty Care: 19% of Group sales

60

Beauty CareLeading market positions in active markets


Beauty Care Retail

Germany No. 1

Beauty Care Retail

Europe No. 3

Hair Professional

World No. 3


Beauty CareTop Brands, Sales 2017

Top 10 brands: 90% of total Beauty Care sales

~€ 0.3 bn~€ 0.4 bn~€ 2.0 bn

//upload.wikimedia.org/wikipedia/de/2/2a/Schwarzkopf_(Haarkosmetik)_logo.svg


Beauty CareLarge Customers


Beauty CareMain Competitors


Table of Content




4. Beauty Care



7. Procurement

8. Sustainability

9. Henkel Shares

10. Henkel Bonds

11. Henkel History



Laundry & Home CareKey Financials

66

Laundry & Home CareSales and adjusted EBIT Development




6,651

5,795

5,137

4,626

4,580

0 2,000 4,000 6,000 8,000

2017

2016

2015

2014

2013

1,170

1,000

879

749

714

0 300 600 900 1,200

2017

2016

2015

2014

2013

4.7%

4.9%

4.6%

5.7%

17.3%

17.1%

16.2%

15.6%

2.0% 17.6%

67

▪ Special DetergentsDouble-digit growth of Perwoll thanks to successful

expansion of portfolio with international innovations

▪ Toilet CareSignificant growth driven by Power-Activ innovations

launched in more than 60 countries

▪ Eastern EuropeStrong growth especially driven by launch of

successful innovations


Laundry & Home CareHighlights FY 2017


Laundry & Home CareWorld Market for Laundry & Home Care Products 2017

Source: Euromonitor

Detergents 53%€ 71.4 bnCleaning Products 33%

€ 45.2 bn

Air Fresheners 8%€ 10.4 bn

Insecticides 6%€ 8.0 bn

Total world market value of ~€ 135 bn

69Henkel Investor Factbook 2017

Laundry & Home CareLeading brands around the world

▪ Leading positions in major markets worldwide

▪ Well-known and trusted brands (e.g. Persil)

▪ Innovation leader with 'GloCal approach'

▪ Use of new technologies and digital trends to further strengthen business and brands

▪ Speed and agility as key success factors

▪ Strong performance culture in highly motivated and inspired team

April 10, 2018


Laundry & Home CareProduct Portfolio

Laundry Care: laundry detergents (powder, gel, tabs, liquids, megaperls, caps); fabric finishers; laundry conditioning products;

laundry sheets; color dyes; stain removers

Home Care:dishwashing products; bathroom and toilet cleaners; glass cleaners; kitchen cleaners; specialty cleaners; floor

care; air fresheners & odor neutralizers; insect control & personal repellents

71

Laundry & Home Care2017 Sales by Business Areas


Laundry & Home Care: 33% of Group sales


Laundry & Home CareLeading market positions in active markets

Germany No. 1 North America No. 2Europe No. 1


Laundry & Home CareTop Brands, Sales 2017

Top 10 brands: 52% of total Laundry & Home Care sales

~€ 0.4 bn~€ 0.4 bn~€ 1.3 bn


Laundry & Home CareLarge Customers


Laundry & Home CareMain Competitors


Table of Content




4. Beauty Care



7. Procurement

8. Sustainability

9. Henkel Shares

10. Henkel Bonds

11. Henkel History


77

Research & Development Expenditures 2017


R&D expenditures1 R&D expenditures by business unit

1 Includes restructuring expenses of

€ 1m (2013), € 3m (2014), € 14m (2015), € 3m (2016), € 7 m (2017)

476

463

478

413

415

0 100 200 300 400 500

2017

2016

2015

2014

2013

2.5%

2.6%

2.5%

2.6%

2.4%

in €m / in % sales

78

Research & Development Selected Research and Development Sites


79

Research & Development Innovation Rate1


~30% ~40% ~45%

Adhesive Technologies Beauty Care Laundry & Home Care

1 Proportion of sales from products successfully launched onto the market:

in the last 5 years for Adhesive Technologies, in the last 3 years for Beauty Care and Laundry & Home Care.

Striving for innovation leadership

80

Table of Content





4. Beauty Care



7. Procurement

8. Sustainability

9. Henkel Share

10. Henkel Bonds

11. Henkel History


81

ProcurementDirect Material Expenditures


Total direct material expenditures 2017: € 8.5 bn

Material expenditures by business unit Material expenditures by type

82

Table of Content





4. Beauty Care



7. Procurement

8. Sustainability

9. Henkel Share

10. Henkel Bonds

11. Henkel History


83

Our vision: 9 billion people can live well in 2050Within the resource limits of our planet


Our ambition is to achieve more with less.

Our 2030 goal is to triple the value we create for the

footprint made by our operations, products and

services. We call this:

We need to

create more valuefor our customers and

consumers, for the communities we operatein, and for our company –

at a reduced environmental

footprint.

Value

Footprint3x

84

Translating value and footprint into concrete challenges Our focal areas define the topics we need to concentrate on


Our six focal areas reflect the challenges of sustainable development as they relate to our operations.

Our sustainability performance over the past 10 years

85

Promoting sustainable palm and palm kernel oilWorking towards zero net deforestation by 2020


100% RSPO Mass Balance certified palm products

Establish full traceability to known sources

Collaborative projects to help small farmers


Together with our partners, we want improve workplace conditions for one million employees in our supply chain.

Through our Sustainable Sourcing Process and the related Policy we aim to improve environmental and social standards in our supply chain and create income opportunities. “An audit for one

is an audit for all.”

The Chemical Initiative for Sustainable Supply Chains

Responsible purchasing and supplier management How we mitigate risks and drive sustainability in our supply chain

87

Resource efficient production operations75 percent more efficiency overall until 2020


In our 188 production sites worldwide we want

to improve the relationship between

the value we create and our environmental

footprint.

Safer per million hours worked +40%

Less energy per ton of product -30%

Less waste per ton of product -30%

Less water per ton of product -30%

Total efficiency +75%

2020 targets

88

Smart packaging and disposal solutionsThree driving principles: Prevention, Reduction, Recycling


Less packaging Better packaging Circular economy

Bottle & adjustable applicator nozzle are made of 100% recycled material

New spray pump saves more than 450 metric tons of plastic material

25 percent recycled PET – saves 167 metric tons of new PET material

89

Responsible consumptionWe aim to reduce the impact of our products in the use phase


We focus on consumer communication to

promote responsible consumption and help customers as well as consumers to save 50 million

metric tons of CO2.

The Henkel footprint calculator the impact of

personal lifestyle choices.

We build consumer awareness for resources through targeted

communication initiatives.

90

Every new product contributes to our focal areasAll innovations are assessed with regard to our commitment


Loctite EA 9845 LC Aero

Barnängen All Over Intensive Body Balm

Persil Sauber & Glattliquid laundry detergent

▪ Prevents wrinkling during washing by keeping the fabric fibers in shape

▪ By shortening ironing times, consumers save both time and energy

▪ Sold in recyclable plastic packaging

▪ Surfacing film with integrated metallic mesh

▪ Applied to an aircraft’s exterior to protect against lightning strikes

▪ It delivers a 30 percent weight saving compared to other surfacing films

▪ Formula comprises 70 percent renewable raw materials

▪ The packaging does not require additional aluminum sealing

▪ Lightweight plastic jar to avoid transport emissions

91

Priorities for the next years: Strengthen our foundationDeliver on our ambitions and maintain leading positions


Achieved in 2017

Targets 2020

More net sales per ton of product +5% +22%

Safer per million hours worked +17% +40%

Less energy per ton of product -24% -30%

Less waste per ton of product -32% -30%

Less water per ton of product -24% -30%

Total efficiency +43% +75%

We aim to deliver tangible progress towards our ambitiousgoal for 2030, Factor 3, and the intermediate targets wehave defined.

We benchmark our performance and aim to maintain leading positions.

92

Priorities for the next years: Boost engagementMore than 50,000 employees are Sustainability Ambassadors


Train all our employees

Motivate our people to make a personal contribution

at schools in communities at our sites with customers

We train all our employees in sustainability and motivate them to make a personal contribution.

93

Priorities for the next years: Maximize our impactStrengthen our contributions to addressing global challenges


Become climate positive along our

value chain

Create shared value and encourage

social progress

Foster sustainability contributions of our

brands & technologies

94

Table of Content





4. Beauty Care



7. Procurement

8. Sustainability

9. Henkel Shares

10. Henkel Bonds

11. Henkel History


95

Henkel SharesShare Data


Note: The number of ADRs outstanding for ordinary (ISIN US42550U1097) & preferred (ISIN US42550U2087) shares at the end of the year 2017 was ~1.8 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

96

Preferred Shares Ordinary Shares

178.2 million shares outstanding 259.8 million shares outstanding

2.07% treasury stock1

97.93% free-float

61.02% Henkel Family share-pooling agreement2

38.98% free-float

Trading volume on average 465,000 shares per trading day

in 2017

Trading volume on average 85,000 shares per trading day

in 2017

Preferred dividend

(+0.02 € vs. ordinary share)3 Ordinary dividend3

Generally no voting rights3 Voting rights

Henkel SharesPreferred Shares and Ordinary Shares


1 As of December 31, 2017.

2 According to notifications received by the corporation as of December 17, 2015.

3 For details see Art. 35 (2) of Articles of Association of Henkel AG & Co. KGaA and Annual Report 2017, p. 36.

97

Henkel SharesInternational Shareholder Structure


Institutional investors holding

Henkel shares

Compared to the ordinary shares, our

preferred shares are the significantly

more liquid class of Henkel stock.

Apart from the treasury shares, they

are entirely in free float. A large

majority are owned by institutional

investors whose portfolios are usually

broadly distributed internationally.

98

Henkel SharesHenkel represented in all major indices


Equity indices Sustainability indices

Henkel preferred shares are included in many

leading indices; particularly noteworthy are:

▪ DAX

▪ MSCI World

▪ STOXX® Europe 600

▪ FTSE World Europe

▪ Dow Jones Titans 30 Personal & Household

Goods

Henkel is also represented in key sustainability

indices:

▪ Ethics index FTSE4Good

▪ STOXX® Global ESG Leaders

▪ Ethibel Pioneer Investment Register

▪ Euronext Vigeo World 120, Europe 120

and Eurozone 120

▪ MSCI Global Sustainability Index

▪ Dow Jones Sustainability Indices World and

Europe

▪ Global Challenges Index

99

Henkel SharesKey Data 2013 to 2017 (1/2)


1 Closing share prices, Xetra trading system.

100

Henkel SharesKey Data 2013 to 2017 (2/2)


1 Closing share prices, Xetra trading system.

101

Earnings per shareKey Data 2013 to 2017


Adjusted1 earnings per share

4.05

4.07

4.36

4.38

4.86

4.88

5.34

5.36

5.83

5.85

1 Adjusted for one-time charges/gains and restructuring expenses.

102

Share Price Development2008 through 2017


103

▪ 10.5% higher dividendRecord dividend of € 1.79 per preferred share

▪ 30.7% payout-ratioIn line with target range of 25-35% of

adjusted net income after minorities

▪ Payout doubled since 2012Compared to dividend of € 0.95 per

preferred share in 2012


Dividends€ 780 m distributed in 2018

0.95

1.221.31

1.471.62

2012 2013 2014 2015 2016 2017

+10.5%

Payout ratio in %Dividend per preferred share in €

25.6%

30.0% 30.0% 30.2% 30.3% 30.7%

1.79


Table of Content




4. Beauty Care



7. Procurement

8. Sustainability

9. Henkel Shares

10. Henkel Bonds

11. Henkel History


105

Development of Financial Debtin €m


Development of Net Financial Position Borrowings

-3,225

-2,301

335

-153

959

-4,000 -3,000 -2,000 -1,000 0 1,000

2017

2016

2015

2014

2013

0 1,000 2,000 3,000 4,000 5,000

2017

2016

2015

2014

2013

Bonds Commercial Paper Bank Loans Other Borrowings

3,725

884

1,744

2,616

4,344

106

Key Financial ratios & Credit RatingsCommitment to single-A rating


Key Financial

Ratios

Credit Ratings

1 Figure not relevant due to the positive balance of net financial position and pension obligations.2 Hybrid bond included on 50% debt basis, repaid 11/2015. 3 Adjusted following final allocation of the purchase price for the acquisition of The Sun Products Corporation.

1

3

2

107

Henkel Bond DataBond issues: € 2.2 bn in 2016; US$ 600 m in 2017


108

Table of Content





4. Beauty Care



7. Procurement

8. Sustainability

9. Henkel Shares

10. Henkel Bonds

11. Henkel History


109

Henkel History (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

1951P3 Products (Pty) Ltd was founded in Durban, South Africa.The company was the first Henkel subsidiary outside Europe

1960Acquisition of Standard Chemical Products Inc of Hoboken/New Jersey andCharlotte/North Carolina, USA, thus entering the US chemical products market

1973 Patent application for Zeolite A (phosphate substitute; Henkel brand SASIL)

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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.

1991Henkel-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

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2004Acquisition of The Dial Corporation in Scottsdale/Arizona, USA, and ofAdvanced 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

2014

Henkel family extends share-pooling agreement: contract has been concluded for an

indefinite term and can now first be terminated as of December 31, 2033

Acquisition of The Spotless Group (Laundry & Home Care), France, Sexy Hair / Kenra /

Alterna (Beauty Care), USA and of The Bergquist Company (Adhesive Technologies), USA

2016Acquisition of The Sun Products Corporation in North AmericaPresentation of Henkel 2020+ - strategic priorities and financial ambition

2017

Sales above 20 bn€ for the first time; acquisition of Darex Packaging Technologies and

Sonderhoff Holding GmbH (both Adhesive Technologies) as well as Nattura Laboratorios,

S.A. de C.V. and Zotos International Inc. (both Beauty Care)

112

Table of Content





4. Beauty Care



7. Procurement

8. Sustainability

9. Henkel Shares

10. Henkel Bonds

11. Henkel History


113

Contact Investor Relations


Henkel AG & Co. KGaA

Investor Relations

Henkelstrasse 67

40589 Düsseldorf

Germany

www.henkel.com/ir

Phone: +49-211-797-3937

Fax: +49-211-798-2863

E-mail: [email protected]

From left to right:

Lars Korinth, Eva Sewing, Andrea Haschke,

Christopher Hüsgen, Ines Göldner,

Mona Niermann

114

▪ Annual report

▪ Sustainability report

▪ Quarterly publications

▪ Roadshow & conference presentations

▪ Investor Relations News

Relevant publications and additional information

available at www.henkel.com/ir or on our

Henkel Corporate App


Additional Information

http://www.henkel.com/ir

115

▪ May 9, 2018

Q1 2018 Earnings Release

▪ May 29, 2018

Investor & Analyst Day Laundry & Home Care

▪ August 16, 2018


▪ November 15, 2018


▪ February 21, 2019

FY 2018 Earnings Release

▪ April 8, 2019

Annual General Meeting


Event Dates

Thank you!

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