15,092 m. 1,862 m % adjusted return on sales. About Henkel

Transcription

1 Facts and Figures

2 2 About Henkel Fiscal 2010: , Sales 15,092 m , ,092 1,862 Profit 1,862 m Henkel operates worldwide with leading brands and technologies in three business areas: Laundry & Home Care, Cosmetics/Toiletries and Adhesive Technologies. Founded in 1876, Henkel holds globally leading market positions both in the consumer and industrial businesses with well-known brands such as Persil, Schwarzkopf and Loctite. Henkel employs around 48,000 people, and reported sales of 15,092 million euros and adjusted operating profit of 1,862 million euros in fiscal Henkel s preferred shares are listed in the German stock index DAX and the company ranks among the Fortune Global 500. North America 2 countries with Henkel companies 2,724 million euros sales 5,440 employees 31 production sites 9 audits 20% share of purchasing volume 91 million euros R&D expenditures 67 employee volunteer projects Scottsdale, Arizona, USA Regional center Rocky Hill, Connecticut, USA Regional center Mexico City, Mexico Regional center % adjusted return on sales. Latin America 14 countries with Henkel companies 982 million euros sales 3,699 employees 14 production sites 9 audits 6% share of purchasing volume 27 million euros R&D expenditures 70 employee volunteer projects São Paulo, Brazil Regional center

3 3 Düsseldorf, Germany Corporate headquarters Vienna, Austria Regional center Western Europe 18 countries with Henkel companies 5,470 million euros sales 16,264 employees 38 production sites 27 audits 41% share of purchasing volume 169 million euros R&D expenditures 429 employee volunteer projects Shanghai, China Regional center Eastern Europe 17 countries with Henkel companies 2,649 million euros sales 8,602 employees 31 production sites 8 audits 14% share of purchasing volume 45 million euros R&D expenditures 81 employee volunteer projects Around 48,000 people work at Henkel. More than 110 nationalities ensure Henkel s global success. Africa/Middle East 15 countries with Henkel companies 901 million euros sales 5,212 employees 21 production sites 2 audits 6% share of purchasing volume 15 million euros R&D expenditures 27 employee volunteer projects Asia-Pacific 13 countries with Henkel companies 2,168 million euros sales 8,637 employees 53 production sites 23 audits 13% share of purchasing volume 44 million euros R&D expenditures 32 employee volunteer projects Cairo, Egypt Regional center Countries in which products and technologies from Henkel are sold Corporate headquarters and regional centers of Henkel

4 4 Our Vision A global leader in brands and technologies. Our new vision gives us a sense of direction and destination. It captures our aspiration of being the best in everything we do. It is the basis for what we all stand as one company. Our vision and our reformulated values guide the choices and decisions our employees make every day. The values are memorable and speak for themselves. And they epitomize Henkel, because they reflect our corporate culture. Our strategic priorities Achieve our full business potential We continue to focus our efforts on the pursuit of our strategic priorities, formulated in 2008 in order to secure Henkelʼs success over the long term. And in fiscal 2010 we again made great progress toward their achievement. Focus more on our customers Winning Culture Strengthen our global team Central to our approach is a strong, unique corporate ethos: a winning culture characterized by a clear commitment to excellent performance and being the best in a highly competitive environment. And helping us to constantly raise our game we have our long-term vision and five shared values to guide our decisions and our actions.

5 Our Values 5 We put our customers at the center of what we do. We anticipate, respond to and meet our customers and consumers expectations by providing the best value, quality, and most innovative brands and technologies. We value, challenge and reward our people. We treat each other with respect and dignity and develop our capabilities. We expect everyone to take personal responsibility and perform to high standards. We rely on each other for our success as a company. We drive excellent sustainable financial performance. We are a performance-driven company committed to growing the value of our business and providing a competitive return to our shareholders. We are committed to leadership in sustainability. We provide products, technologies and processes that meet the highest standards. We are committed to the safety and health of our employees, the protection of the environment and the quality of life in the communities in which we operate. We build our future on our family business foundation. We value the continuity of our purpose and vision based on our long history of success and a strong focus on our values. We are guided by our long-term vision which rests on a fair entrepreneurial spirit and a solid financial basis.

6 6 Our Management Board Kasper Rorsted Chairman of the Management Board; born 1962; with Henkel since Dr. Lothar Steinebach Executive Vice President Finance/Purchasing/IT/Legal; born 1948; with Henkel since Bruno Piacenza Member of the Management Board since January 1, 2011 and, from March 1, 2011, Executive Vice President Laundry & Home Care; born 1965; with Henkel since Hans Van Bylen Executive Vice President Cosmetics/Toiletries; born 1961; with Henkel since Jan-Dirk Auris Executive Vice President Adhesive Technologies since January 1, 2011; born 1968; with Henkel since 1984.

7 Our top brands Our strong brands are the basis of our economic success. Going forward, we will be keeping our focus on our major, widely recognized brands. With Schwarzkopf, Loctite and Persil our three biggest brands we generated 23 percent of total sales. And our ten biggest brands contributed 41 percent to total sales. The Laundry & Home Care business sector realized 32 percent of its sales with its three strongest brands Persil, Purex (in North America) and Dixan. Cosmetics/Toiletries achieved 71 percent of its sales with its three biggest brands Schwarzkopf, Dial (in North America) and Fa. And the Adhesive Tech nologies business sector made 26 percent of its sales with its three biggest brands Loctite, Teroson and Technomelt. 23 % of sales generated with our top brands Schwarzkopf, Loctite and Persil.

8 8 Performance in figures Key financials in million euros / Sales 13,573 15, % Operating profit (EBIT) 1,080 1, % Adjusted 1) operating profit (EBIT) 1,364 1, % Return on sales (EBIT) in % pp Adjusted 1) return on sales (EBIT) in % pp Net income 628 1, % Attributable to non-controlling interests % Attributable to shareholders of Henkel AG & Co. KGaA 602 1, % Earnings per preferred share in euros % Adjusted 1) earnings per preferred share in euros % Return on capital employed (ROCE) in % pp Capital expenditures on property, plant and equipment % Research and development expenses % Number of employees (annual average) 51,361 48, % Dividend per ordinary share in euros % Dividend per preferred share in euros % 1) Adjusted for one-time charges/gains and restructuring charges. pp = percentage points

9 9 Sales by business sector Corporate = sales and services not assignable to the individual business sectors. 29 % Laundry & Home Care 22 % Cosmetics/Toiletries 48 % Adhesive Technologies 1 % Corporate Sales by region 41 % Growth regions 1) 36 % Western Europe 18 % North America 4 % Japan/Australia/ New Zealand 1 % Corporate 1) Eastern Europe, Africa/Middle East, Latin America, Asia (excluding Japan). 41 % of 2010 sales generated in the emerging markets: Eastern Europe, Africa/ Middle East, Latin America, Asia (excluding Japan). Employees by business sector Employees by region 22 % Laundry & Home Care 15 % Cosmetics/Toiletries 50 % Adhesive Technologies 13 % Functions 34 % Western Europe 18 % Eastern Europe 11 % Africa/Middle East 11 % North America 8 % Latin America 18 % Asia-Pacific

10 10 Milestones and business sectors 135 years of brand success. Our brands are present in over 190 countries. Product branding pioneer In 1876 Fritz Henkel ( ) founded Henkel & Cie in Aachen. With an initial workforce of three employees, he sold his first product under the name Universal Washing Detergent. His first brand success was Henkel s bleach soda in the year In the same year, the company relocated to Düsseldorf. The city offered the company better transportation connections and better marketing channels. And Düsseldorf is still today the site of Henkel s headquarters. Members of the families of the descendants of Fritz Henkel, the company s founder, still hold the majority of the ordinary voting shares in the company, which went public in Laundry & Home Care For the last 104 years, Persil as the world s first self-acting laundry detergent has been the cornerstone of the companycs growth. With the launch of Persil in June 1907, Henkel revolutionized the chore that was wash day, offering washing and bleaching without chlorine, and eliminating the physically strenuous task of manual rubbing something that invariably caused the fabrics to wear faster. Persil also improved household hygiene as one of many directly tangible contributions that Henkel has made to social progress. Today, Persil is the biggest brand in our Laundry & Home Care business sector. In 2004, Henkel purchased the US-based company The Dial Corporation, a manufacturer of laundry care, home care and personal care products. The acquisition gave Henkel a major foothold in the North American market.

11 11 Cosmetics/Toiletries Henkel entered the cosmetics market through the acquisition of TheraChemie and its Poly Color liquid hair colorants in In 1954 the toilet soap Fa was launched. Schwarzkopf has been part of Henkel since its acquisition in In 1898 the state-recognized chemist Hans Schwarzkopf took over a dye, drug and perfumery business and, in 1903, successfully launched Germany s first powder shampoo. Today, the hair cosmetics brand Schwarzkopf is both the largest and the fastestgrowing of Henkel s brands. The Syoss brand introduced in 2009 is now available in 36 countries. Of all Henkel s new brand launches, Syoss is the most successful to date. Adhesive Technologies 1922 saw Henkel first start manufacturing adhesives for its own use. Sales to other companies began one year later. The company s portfolio was extended in 1929 to include the industrial and trade cleaner P3. And it is from these beginnings that an international adhesives business grew. In 1997 Henkel acquired Loctite outright, and in 2008 we purchased the Adhesives and Electronic Materials businesses of National Starch. This has made Henkel the largest producer of adhesives in the world. Today, Loctite is our highest revenue-earning brand.

12 12 Focus on sustainability Maintaining a balance between economic success, protection of the environment, and social responsibility has been fundamental to our corporate culture for decades, and this is reflected in our corporate values. Our pursuit of sustainability is both long-term and entrepreneurial in nature, covering all of our activities throughout the value chain. Our global challenges with respect to sustainable development are divided between five focal areas, for which the following targets were set for 2012: Sustainability targets 2012: already reached in 2010 two years ahead of schedule. Further reduction in energy consumption 1) Target 2012: Reached in 2010: 15 % 21 % Further reduction in the amount of waste generated 1) Target 2012: Reached in 2010: 10 % 24 % Materials and waste Energy and climate Vision and Values Social progress Water and wastewater Health and safety Further reduction in water consumption 1) Target 2012: Reached in 2010: 10 % 26 % Further reduction in occupational accidents Long-term objective: Zero occupational accidents Target 2012: Reached in 2010: 20 % 29 % 1) Targets per metric ton of output, base year: Also central to our commitment are: All new products contribute to sustainable development in at least one focal area. All employees receive training and continuing education to ensure that they are appropriately qualified for their tasks. All of our strategic suppliers satisfy our expectations with regard to corporate ethics.

13 13 Leader in sustainability rankings Having invested many years of focused effort in the cause of sustainable development, we have built up an excellent reputation as a company with globally leading positions in this arena. For the fourth time in a row, Henkel was listed as sector leader in the Dow Jones Sustainability World Index (DJSI World) and in the Dow Jones Sustainability Index Europe (DJSI Europe). Top employer For the second year in a row, the Corporate Research Foundation Institute declared Henkel Top German Employer Moreover, Henkel took first place in the categories of Corporate Culture, Training and Development, Benefits and Work-Life Balance. Diversity in focus At Henkel, diversity is not some far-off goal. Nor has it just been hastily added to our agenda since the topic gained currency in socio-political discussions. Rather, it has for years been part of our reality and daily life as a company. With 29 percent of our managerial positions occupied by women and 32 percent of our global workforce female, we have already come a long way. And we are the only company listed in the DAX index whose supervisory board is chaired by a woman. Finally, there are four nationalities represented on our Board of Management, which is comprised of five members. We are committed to society Social engagement has been firmly anchored in our corporate culture and our corporate values since the company was founded. This is reflected in the daily actions of our employees. Henkel Smile provides the umbrella for the company s international corporate citizenship activities extending beyond direct business interests. Working together with customers, consumers, and nonprofit organizations, we are globally active in three areas: supporting employee volunteering, emergency aid, and corporate and brand engagement for the good of society. In 2010, the total sum provided to support all Henkel Smile activities was around 6 million euros. 32 % of our employees worldwide are women. 29 % of our managers are female. Some 730,000 people in 72 countries were helped worldwide through Henkel Smile projects in

14 14 Shares and financial calendar 18.3 bn market capitalization. Key data on Henkel shares 2006 to 2010 in euros ) ) Earnings per share Ordinary share Preferred share Dividends Ordinary share Preferred share Market capitalization 2) in bn euros Ordinary share in bn euros Preferred share in bn euros ) Comparable based on share split (1:3) of June 18, ) Closing share prices, Xetra trading system. Henkel preferred share performance versus market 2010 in euros December 31, euros December 31, euros Jan. Feb. March April May June July Aug. Sep. Oct. Nov. Dec. Henkel preferred share DAX (indexed) DJ Euro Stoxx Consumer Goods (indexed) Financial calendar 2011/2012 Publication of Report for the Second Quarter/Half Year 2011: Wednesday, August 10, 2011 Publication of Report for the Third Quarter/Nine Months 2011: Wednesday, November 9, 2011 Publication of Report for Fiscal 2011: Thursday, March 8, 2012 Annual General Meeting Henkel AG & Co. KGaA 2012: Monday, April 16, 2012

15 Credits 15 Published by: Henkel AG & Co. KGaA Düsseldorf, Germany Phone: +49 (0) Henkel AG & Co. KGaA Edited by: Corporate Communications Additional English translations: Paul Knighton, Cambridge Design: Kirchhoff Consult AG, Hamburg Photographs: Thomas Bauer, Claudia Kempf, Xu Jian, Henkel Produced by: Druckpartner Schotte, Essen PR No ,000

16 Annual Report 2010 Sustainability Report 2010 More information Internet: Online Annual Report: Online Sustainability Report: Publications download: Social media: Henkel AG & Co. KGaA Düsseldorf, Germany Phone: +49 (0)