Investor Factbook 2017 Henkel Investor Relations

Transcription

1 Investor Factbook 2017 Henkel 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. 2

3 Table of Content 1. Henkel at a Glance 2. Henkel 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 3

4 Henkel: Three Areas of Competence A global leader in brands and technologies Industrial Business Consumer Business Adhesive Technologies Beauty Care Laundry & Home Care 4

5 Henkel Group Key Financials 2017 pp = percentage points 1 Adjusted for one-time charges/gains and restructuring expenses. 5

6 Henkel Group Sales and adjusted EBIT Development Sales in m, OSG in % EBIT in m, EBIT Margin in % , % , % , % , % , % , % , % , % , % , % 0 6,000 12,000 18,000 24, ,000 2,000 3,000 4,000 1 EBIT and EBIT Margin adjusted for one-time charges/gains and restructuring expenses. 6

7 Henkel Group Sales 2017 Total sales: 20,029 m Sales by business unit 2017 Sales by region

8 Henkel Group Employees 2017 Number of employees 1 : 53,700 Employees by region Employees by organizational unit 1 As at year-end

9 Our Purpose, Vision, Mission and Values Creating sustainable value Purpose 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 values Mission Customers and Consumers People Financial Performance Sustainability Family Business Values 9

10 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 10

11 Management Structure Henkel AG & Co. KGaA Annual General Meeting Elects 8 shareholders representatives Elects members Supervisory Board 16 members Nominations & Audit subcommittees Monitoring duties AG: 100% owned by Henkel AG & Co. KGaA Henkel Management AG (as sole personally liable partner) Shareholdersʼ Committee Up to 10 members HR & Finance subcommittees Approval of significant corp. actions, strategy Elects members Management Board Appointment Supervisory Board 3 members from SHs Committee 11

12 Management Board Hans Van Bylen Chief Executive Officer (CEO) Carsten Knobel Finance (CFO), Purchasing & Integrated Business Solutions Kathrin Menges Human Resources & Infrastructure Services Jan-Dirk Auris Adhesive Technologies Jens-Martin Schwärzler Beauty Care Bruno Piacenza Laundry & Home Care 12

13 Table of Content 1. Henkel at a Glance 2. Henkel 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 13

14 Clear and Exciting Growth Strategy Henkel Strategic Priorities 14

15 Drive Growth Substantial progress 2017 Customer & Consumer Engagement Roadmaps for top 100 industrial customers Digital Connect2Consumer program Leading Brands & Technologies Sales of top 3 brands increased to 6.4 bn Focus on successful development of local brands Exciting Innovations & Services Superior tailor-made solutions in growth segments First influencer brands in Hair Professional New Sources of Growth Compelling acquisitions complementing our portfolio VC investments in digital services & technologies 15

16 Accelerate Digitalization Substantial progress 2017 Drive Digital Business Double-digit increase of digital sales in all business units Leverage Industry 4.0 Smart factory concepts and further digitalization of integrated Global Supply Chain etransform Organization Chief Digital Officer driving digital transformation, launch of Henkel x 16

17 Increase Agility Substantial progress 2017 Energized and Empowered Teams Henkel Talks powerful global dialogs between leaders and employees Fastest Time-to-Market Adhesive Technologies 26 customer-facing steering units enable closer customer collaboration, acceleration of time-to-market of consumer goods innovations Smart Simplicity Implementation of flexible business models to adapt to fast-changing markets 17

18 Fund Growth Substantial progress 2017 ONE!ViEW New approach to further optimize cost management Net Revenue Management Increased efficiency of our promotion activities Most efficient structures Continue optimization and consolidation of structures ONE! Global Supply Chain Optimize cost, fully capturing cross-business synergies 18

19 Attractive Returns Continued ambition to deliver attractive returns Clear initiatives to fund growth Consistent capital allocation supporting our ambition 19

20 Continued Ambition to deliver Attractive Returns Drive Growth Fund Growth Consistent organic sales growth in mature and emerging markets Improvement of adjusted EBIT margin Expansion of free cash flow Superior adjusted EPS growth 20

21 Continued Ambition to deliver Attractive Returns Organic Sales Growth 2 4% (Average ) 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 21

22 Continued Ambition to deliver Attractive Returns Adj. EPS Growth 7 9% (CAGR , 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 22

23 Continued Ambition to deliver Attractive Returns 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 23

24 Continued Ambition to deliver Attractive Returns 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 24

25 Financial Ambition 2020 Organic Sales Growth 2 4% (Average ) Adj. EPS Growth 7 9% (CAGR , per preferred share) Adj. EBIT Margin Free Cash Flow Continued improvement in adjusted EBIT margin Continued focus on free cash flow expansion 25

26 Clear Initiatives to Fund Growth Drive Growth Fund Growth Consistent organic sales growth in both mature and emerging markets Improvement of adjusted EBIT margin Expansion of free cash flow Superior adjusted EPS growth 26

27 Value-creating Resource Allocation 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 27

28 Net Revenue Management 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

29 Most Efficient Structures 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 29

30 ONE! Global Supply Chain Successful implementation in Europe Roll-out to North America in 2018 Leverage synergies across Business Units and Functions Continuous and sustainable efficiency gains 30

31 Fund Growth initiatives Implementation on track > 100 m efficiency gains in 2017 Fully on track in the realization of efficiencies, already significant contribution in 2017 > 500 m annual efficiency gains Expected sustainable annual efficiency gains in full swing by 2020 Re-invest in growth Fair share of annual efficiency gains to be re-invested to support innovation and future growth February April 22, ,

32 Consistent Capital Allocation supporting our Ambition Strong Sources of Cash Consistent Capital Allocation Excellent Free Cash Flow Generation Significant Balance Sheet Optionality Investments Acquisitions Dividends 32

33 Consistent Capital Allocation: Investments Increase CapEx by ~40% to ~ 3 bn in strategic cycle Significant investments to support growth initiatives, innovation, infrastructure and IT Step up investments in digitalization Venture Capital Fund of up to 150 m 33

34 Consistent Capital Allocation: Acquisitions Integral part of our strategy Strengthen our portfolio both in core and adjacencies Disciplined approach in acquisitions Commitment to single-a rating 34

35 Consistent Capital Allocation: Dividends 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 35

36 Compelling Ambition 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 36

37 Clear and Exciting Growth Strategy Henkel Strategic Priorities 37

38 Table of Content 1. Henkel at a Glance 2. Henkel 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 38

39 Adhesive Technologies Key Financials 39

40 Adhesive Technologies Sales and adjusted EBIT Development Sales in m, OSG in % EBIT in m, EBIT Margin in % , % , % , % , % , % , % , % , % , % , % 0 2,000 4,000 6,000 8,000 10, ,000 1,500 2,000 1 EBIT and EBIT Margin adjusted for one-time charges/gains and restructuring expenses. 40

41 Adhesive Technologies Highlights FY 2017 Consumer Electronics Double-digit growth driven by applications for mobile devices enabling new designs and functionalities General Industry Significant growth in Manufacturing and Assembly with high-performance Loctite products Automotive Industry Very strong growth driven by comprehensive portfolio of more than 300 innovative solutions 41

42 Adhesive Technologies Global Market for Adhesives, Sealants & Functional Coatings Global market leadership Consistent market outperformance ~ 65 bn [%] OSG Adhesive Technologies IPX 1 9 bn Competitors Market accounts for around 65 bn Highly specialized and fragmented in ~ 50 segments Henkel only player present in most segments 1 Source: IHS Markit World Economic Service Jan 2018 release Industrial Production Index (IPX) as key market indicator for Adhesive Technologies Organic sales growth of Adhesive Technologies continuously outperforming IPX 42

43 Adhesive Technologies Global Market Leader with Scale and Breadth 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 Proven track-record of profitable growth 43

44 Adhesive Technologies Innovation 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 on 40 technologies Strategic innovations targeting adjacent growth markets The combination of global footprint, customer proximity, unique technology portfolio, expert and industry knowledge leverages our full innovation potential 44

45 Adhesive Technologies 2017 Sales by Business Areas Adhesive Technologies: 47% of Group sales 45

46 Adhesive Technologies Packaging and Consumer Goods Adhesives 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 46

47 Adhesive Technologies Transport and Metal 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 47

48 Adhesive Technologies General Industry 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 48

49 Adhesive Technologies Electronics Target markets: Electronic device assembly and semiconductor packaging Global business Focus on high growth or high margin segments Partner of choice for innovation leaders 49

50 Adhesive Technologies Consumer, Craftsmen and Building 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 50

51 Adhesive Technologies Top Brands, Sales 2017 ~ 3.1 bn ~ 1.7 bn ~ 0.9 bn Top 10 brands: >80% of total Adhesive Technologies sales 51

52 Adhesive Technologies Key Competitors 52

53 Table of Content 1. Henkel at a Glance 2. Henkel 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 53

54 Beauty Care Key Financials 54

55 Beauty Care Sales and adjusted EBIT Development Sales in m, OSG in % EBIT in m, EBIT Margin in % , % % , % % , % % , % % , % % 0 1,000 2,000 3,000 4, EBIT and EBIT Margin adjusted for one-time charges/gains and restructuring expenses. 55

56 Beauty Care Highlights FY 2017 Professional Strong performance of Schwarzkopf innovations and acquired businesses enhance market position Coloration & Styling Strong sales growth and market share gains across regions thanks to successful innovations USA Retail Ongoing strong momentum driven by Body Care and further expansion of mega-brand Schwarzkopf 56

57 Beauty Care Strong 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 57

58 Beauty Care Product Portfolio Hair Body Skin Oral Retail & Professional Coloration Styling Soaps Bath & Shower Deodorants Face Creams Cleansing Toothpaste Care Body Care 58

59 Beauty Care 2017 Sales by Business Areas Beauty Care: 19% of Group sales 59

60 Beauty Care Leading market positions in active markets Beauty Care Retail Germany No. 1 Beauty Care Retail Europe No. 3 Hair Professional World No. 3 60

61 Beauty Care Top Brands, Sales 2017 ~ 2.0 bn ~ 0.4 bn ~ 0.3 bn Top 10 brands: 90% of total Beauty Care sales 61

62 Beauty Care Large Customers 62

63 Beauty Care Main Competitors 63

64 Table of Content 1. Henkel at a Glance 2. Henkel 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 64

65 Laundry & Home Care Key Financials 65

66 Laundry & Home Care Sales and adjusted EBIT Development Sales in m, OSG in % EBIT in m, EBIT Margin in % , % % , % % , % % , % , % , % , % 0 2,000 4,000 6,000 8, ,200 1 EBIT and EBIT Margin adjusted for one-time charges/gains and restructuring expenses. 66

67 Laundry & Home Care Highlights FY 2017 Special Detergents Double-digit growth of Perwoll thanks to successful expansion of portfolio with international innovations Toilet Care Significant growth driven by Power-Activ innovations launched in more than 60 countries Eastern Europe Strong growth especially driven by launch of successful innovations 67

68 Laundry & Home Care World Market for Laundry & Home Care Products 2017 Insecticides 6% 8.0 bn Air Fresheners 8% 10.4 bn Cleaning Products 33% 45.2 bn Detergents 53% 71.4 bn Total world market value of ~ 135 bn Source: Euromonitor 68

69 Laundry & Home Care Leading 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 69

70 Laundry & Home Care Product 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 70

71 Laundry & Home Care 2017 Sales by Business Areas Laundry & Home Care: 33% of Group sales 71

72 Laundry & Home Care Leading market positions in active markets Germany No. 1 Europe No. 1 North America No. 2 72

73 Laundry & Home Care Top Brands, Sales 2017 ~ 1.3 bn ~ 0.4 bn ~ 0.4 bn Top 10 brands: 52% of total Laundry & Home Care sales 73

74 Laundry & Home Care Large Customers 74

75 Laundry & Home Care Main Competitors 75

76 Table of Content 1. Henkel at a Glance 2. Henkel 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 76

77 Research & Development Expenditures 2017 R&D expenditures 1 R&D expenditures by business unit in m / in % sales % % % % % Includes restructuring expenses of 1m (2013), 3m (2014), 14m (2015), 3m (2016), 7 m (2017) 77

78 Research & Development Selected Research and Development Sites 78

79 Research & Development Innovation Rate 1 Striving for innovation leadership Adhesive Technologies Beauty Care Laundry & Home Care ~30% ~40% ~45% 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. 79

80 Table of Content 1. Henkel at a Glance 2. Henkel Strategic Priorities & Ambition 3. Adhesive Technologies 4. Beauty Care 5. Laundry & Home Care 6. Research & Development 7. Procurement 8. Sustainability 9. Henkel Share 10. Henkel Bonds 11. Henkel History 12. Contacts & Additional Information 80

81 Procurement Direct Material Expenditures Total direct material expenditures 2017: 8.5 bn Material expenditures by business unit Material expenditures by type 81

82 Table of Content 1. Henkel at a Glance 2. Henkel Strategic Priorities & Ambition 3. Adhesive Technologies 4. Beauty Care 5. Laundry & Home Care 6. Research & Development 7. Procurement 8. Sustainability 9. Henkel Share 10. Henkel Bonds 11. Henkel History 12. Contacts & Additional Information 82

83 Our vision: 9 billion people can live well in 2050 Within the resource limits of our planet Our ambition is to achieve more with less. We need to create more value for our customers and consumers, for the communities we operate in, and for our company at a reduced environmental footprint. 3x Value Footprint Our 2030 goal is to triple the value we create for the footprint made by our operations, products and services. We call this: 83

84 Translating value and footprint into concrete challenges Our focal areas define the topics we need to concentrate on Our sustainability performance over the past 10 years Our six focal areas reflect the challenges of sustainable development as they relate to our operations. 84

85 Promoting sustainable palm and palm kernel oil Working towards zero net deforestation by % RSPO Mass Balance certified palm products Establish full traceability to known sources Collaborative projects to help small farmers 85

86 Responsible purchasing and supplier management How we mitigate risks and drive sustainability 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. The Chemical Initiative for Sustainable Supply Chains An audit for one is an audit for all. Together with our partners, we want improve workplace conditions for one million employees in our supply chain. 86

87 Resource efficient production operations 75 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 targets 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% 87

88 Smart packaging and disposal solutions Three driving principles: Prevention, Reduction, Recycling Less packaging Better packaging Circular economy New spray pump saves more than 450 metric tons of plastic material 25 percent recycled PET saves 167 metric tons of new PET material Bottle & adjustable applicator nozzle are made of 100% recycled material 88

89 Responsible consumption We 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 CO 2. The Henkel footprint calculator the impact of personal lifestyle choices. We build consumer awareness for resources through targeted communication initiatives. 89

90 Every new product contributes to our focal areas All innovations are assessed with regard to our commitment Loctite EA 9845 LC Aero Barnängen All Over Intensive Body Balm Persil Sauber & Glatt liquid laundry detergent 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 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 90

91 Priorities for the next years: Strengthen our foundation Deliver 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 ambitious goal for 2030, Factor 3, and the intermediate targets we have defined. We benchmark our performance and aim to maintain leading positions. 91

92 Priorities for the next years: Boost engagement More 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. 92

93 Priorities for the next years: Maximize our impact Strengthen 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 93

94 Table of Content 1. Henkel at a Glance 2. Henkel 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 94

95 Henkel Shares Share Data Preferred Ordinary Security Code No ISIN Code DE DE Number of Shares 178,162, ,795,875 Stock Exch. Symbol HEN3.ETR HEN.ETR 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. 95

96 Henkel Shares Preferred Shares and Ordinary Shares Preferred Shares Ordinary Shares million shares outstanding million shares outstanding 2.07% treasury stock % free-float Trading volume on average 465,000 shares per trading day in % Henkel Family share-pooling agreement % free-float Trading volume on average 85,000 shares per trading day in 2017 Preferred dividend (+0.02 vs. ordinary share) 3 Ordinary dividend 3 Generally no voting rights 3 Voting rights 1 As of December 31, According to notifications received by the corporation as of December 17, For details see Art. 35 (2) of Articles of Association of Henkel AG & Co. KGaA and Annual Report 2017, p

97 Henkel Shares International Shareholder Structure 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. Institutional investors holding Henkel shares 97

98 Henkel Shares Henkel 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 98

99 Henkel Shares Key Data 2013 to 2017 (1/2) 1 Closing share prices, Xetra trading system. 99

100 Henkel Shares Key Data 2013 to 2017 (2/2) 1 Closing share prices, Xetra trading system. 100

101 Earnings per share Key Data 2013 to 2017 Adjusted 1 earnings per share Adjusted for one-time charges/gains and restructuring expenses. 101

102 Share Price Development 2008 through

103 Dividends 780 m distributed in % higher dividend Record dividend of 1.79 per preferred share 30.7% payout-ratio In line with target range of 25-35% of adjusted net income after minorities Payout doubled since 2012 Compared to dividend of 0.95 per preferred share in % % 30.0% 30.2% 30.3% 30.7% +10.5% Dividend per preferred share in Payout ratio in % 103

104 Table of Content 1. Henkel at a Glance 2. Henkel 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 104

105 Development of Financial Debt in m Development of Net Financial Position Borrowings , , , , , ,344-4,000-3,000-2,000-1, , ,000 2,000 3,000 4,000 5,000 Bonds Commercial Paper Bank Loans Other Borrowings 105

106 Key Financial ratios & Credit Ratings Commitment 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/ Adjusted following final allocation of the purchase price for the acquisition of The Sun Products Corporation. 106

107 Henkel Bond Data Bond issues: 2.2 bn in 2016; US$ 600 m in

108 Table of Content 1. Henkel at a Glance 2. Henkel 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 108

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 P3 Products (Pty) Ltd was founded in Durban, South Africa. The company was the first Henkel subsidiary outside Europe 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) 109

110 Henkel History (2/3) 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 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 Sale of Cognis and Henkel-Ecolab: Focus on Brands and Technologies 110

111 Henkel History (3/3) 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 Years Schwarzkopf 2010 New release of Vision and Values years of Pril 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 Acquisition of The Sun Products Corporation in North America Presentation of Henkel strategic priorities and financial ambition 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) 111

112 Table of Content 1. Henkel at a Glance 2. Henkel 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 112

113 Contact Investor Relations Henkel AG & Co. KGaA Investor Relations Henkelstrasse Düsseldorf Germany Phone: Fax: From left to right: Lars Korinth, Eva Sewing, Andrea Haschke, Christopher Hüsgen, Ines Göldner, Mona Niermann 113

114 Additional Information Annual report Sustainability report Quarterly publications Roadshow & conference presentations Investor Relations News Relevant publications and additional information available at or on our Henkel Corporate App 114

115 Event Dates May 9, 2018 Q Earnings Release May 29, 2018 Investor & Analyst Day Laundry & Home Care August 16, 2018 Q Earnings Release November 15, 2018 Q Earnings Release February 21, 2019 FY 2018 Earnings Release April 8, 2019 Annual General Meeting 115

116 Thank you!