henkel roadshow presentation
TRANSCRIPT
HENKELROADSHOW PRESENTATION
MAY 2022
DISCLAIMER
This presentation contains forward-looking statements which are based on current estimates and assumptions made by thecorporate management of Henkel AG & Co. KGaA. Statements with respect to the future are characterized by the use of wordssuch as “expect”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, and similar terms. Such statements are not to beunderstood as in any way guaranteeing that those expectations will turn out to be accurate. Future performance and resultsactually achieved by Henkel AG & Co. KGaA and its affiliated companies depend on a number of risks and uncertainties andmay therefore differ materially from the forward-looking statements. Many of these factors are outside Henkel’s control andcannot be accurately estimated in advance, such as the future economic environment and the actions of competitors andothers involved in the marketplace. Henkel neither plans nor undertakes to update any forward-looking statements.
This document includes – in the applicable financial reporting framework not clearly defined – supplemental financialmeasures that are or may be alternative performance measures (non-GAAP-measures). These supplemental financial measuresshould not be viewed in isolation or as alternatives to measures of Henkel’s net assets and financial positions or results ofoperations as presented in accordance with the applicable financial reporting framework in its Consolidated FinancialStatements. Other companies that report or describe similarly titled alternative performance measures may calculate themdifferently.
This document has been issued for information purposes only and is not intended to constitute an investment advice or anoffer to sell, or a solicitation of an offer to buy, any securities.
HENKEL ROADSHOW PRESENTATION MAY 20222
HENKEL ROADSHOW PRESENTATION MAY 20223
01 Henkel Group Overview
02 Purposeful Growth Agenda & Financial Ambition
03 Business Performance Q1 2022 & Outlook
AGENDA
€2.7BNADJUSTED OPERATING PROFIT (EBIT)
SALES
€20.1BN
WE ARE ACTIVE IN
79 COUNTRIES
STRONG BALANCE SHEET & CASH GENERATION CAPABILITIES
AROUND
38%WOMEN IN MANAGEMENT
SUSTAINABILITY DEEPLY ROOTED:
-50%LESS CO2 EMISSIONS PER TON OF PRODUCT1
WE EMPLOY MORE THAN
52,000PEOPLE WORLDWIDE FROM 124 NATIONALITIES
4 ¹ Figure relates to the 2021 fiscal year compared to the 2010 base year
HIGH NUMBER OF M&A DEALS
EXECUTED
HENKEL ROADSHOW PRESENTATION MAY 2022
HENKEL ROADSHOW PRESENTATION MAY 20225
GLOBAL PLAYER WITH LEADING POSITIONS IN BRANDS AND TECHNOLOGIES
Beauty CareLaundry & Home Care
CONSUMER BUSINESSESINDUSTRIAL BUSINESS
Adhesive Technologies
[insertpicture]
Globally leading positions#1 Global
#1 Styling / #2 Hair Coloration#3 Hair Professional
#1 Europe #2 North America
HENKEL ROADSHOW PRESENTATION MAY 20226
HENKEL GROUPKEY FINANCIALS 2021
ORGANIC SALES GROWTH
7.8%
Significant organic growth supported by
all business units
Strong volume growth and pricing / savings offsetting accelerated headwinds from direct
material prices
ADJUSTED EBIT MARGIN
13.4%
+9.2% at constant currencies
ADJUSTEDEPS1
€4.56FREE
CASH FLOW
€1.5 bn
Net financial position improved to €-0.3 bn
DIVIDEND
€1.85
Sustaining track record of at least stable
pay-out
1 Per preferred share
HENKEL GROUP FINANCIALS
HENKEL ROADSHOW PRESENTATION MAY 20227
Good business performance in 2021
Sales reaching € 20.1 bn, nominally up by 4.2%, organic salesgrowth 7.8%
Adj. EBIT at € 2.7 bn, 4.2% above the prior year level
Adj. EBIT Margin on prior year level at 13.4%
Adj. EPS1 7.0% above previous year, 9.2% at constantcurrencies
1 Per preferred share
16.4
18.118.7
20.0 19.9 20.1
19.3
20.1
15.8% 16.2%16.9% 17.3% 17.6%
16.0%
13.4%
13.4%
2014 2015 2016 2017 2018 2019 2020 2021
Sales in € bn
OSG (%)
Adj. EBITMargin
+0.0+2.4+3.1+3.1+3.0+3.4 +7.8-0.7
HENKEL GROUP FINANCIALS
HENKEL ROADSHOW PRESENTATION MAY 20228
Strong and consistent cash generation
Continued focus on long-term cash expansion driven byoperating performance, efficient capital management and disciplined CapEX
Very robust balance sheet with net financial position of€ -292 m as of December 31, 2021
Cash generation capabilities and low debt levels providesufficient room to maneuver
Free cash flowin € m
1,333
1,690
2,205
1,701
1,917
2,4712,340
1,478
2014 2015 2016 2017 2018 2019 2020 2021
STRINGENT EXECUTION OF CAPITAL ALLOCATION STRATEGY
HENKEL ROADSHOW PRESENTATION MAY 20229
Stable dividend proposal to AGM, equivalent to 40.5% pay-out
Dividend policy unchanged going forward at 30-40%
Dividend growing or at least stable every year since IPO
M&A integral part of strategy with disciplined approach and commitment to single-A rating
Complemented by selected Venture Capital investments
Asset-light business model; relatively low CapEx requirement
Investing in growth, capacity expansion and sustainability/digital
Total CapEx equivalent to 3.2% of Group sales in 2021
Buyback started on Feb 15
Up to €1 bn to be purchased until end of Q1 2023
INVESTMENTS2021
€640 mACQUISITIONS
2021
€166 m
DIVIDENDFOR 2021
€1.85SHARE BUYBACK
2022/23
€1 bn
HENKEL ROADSHOW PRESENTATION MAY 202210
HENKEL GROUPSALES 2021
TOTAL SALES: € 20,066 M
Sales by business unit 2021 Sales by region 2021
3 sales and services not assignable to the individual business units. 4 Eastern Europe, Africa/Middle East, Latin America, Asia (excluding Japan)
HENKEL ROADSHOW PRESENTATION MAY 202211
HENKEL GROUPEMPLOYEES 2021
NUMBER OF EMPLOYEES1: 52,450
Employees by region1 Employees by organizational unit1
27%
20%18%
16%
12%
7% Western EuropeEastern EuropeAsia-PacificNorth AmericaLatin AmericaAfrica/Middle East
1 At December 31, 2021
HENKEL ROADSHOW PRESENTATION MAY 202212
01 Henkel Group Overview
02 Purposeful Growth Agenda & Financial Ambition
Progress 2020/2021 & next level Henkel Consumer Brands 2030+ Sustainability Ambition & Framework
03 Business Performance Q1 2022 & Outlook
AGENDA
HENKEL ROADSHOW PRESENTATION MAY 202213
WIN THE 20s THROUGHPURPOSEFUL GROWTH
WINNINGPORTFOLIO
COMPETITIVE EDGEFUTURE-READY
OPERATING MODELS
COLLABORATIVE CULTURE & EMPOWERED PEOPLE
INNOVATION SUSTAINABILITY DIGITALIZATION
WINNING PORTFOLIO
HENKEL ROADSHOW PRESENTATION MAY 202214
NEXT LEVEL
Further shaping consumer portfolio based on comprehensive review with focus on attractive growth and margin potential
M&A remains integral part of our strategy, with clear criteria: availability of target, strategic fit, financial attractiveness
ACTIVE PORTFOLIO MANAGEMENT
Target achieved: Brands and businesses with total sales volume of ~€0.5 bn divested or discontinued in 2020/2021
PORTFOLIO STRENGTHENEDWITH ACQUISITIONS
More than €600 m total spend, adding annual revenues of >€200 m
Enhancing portfolio across all three business units
ACQUISITION OF SHISEIDO’SHAIR PROFESSIONAL BUSINESS IN APAC
Step-change for Henkel’s Professional business
Acquiring attractive portfolio with strong and successful premium brands
Adding >€100 m annual sales and strong R&D capabilities
Henkel’s Professional business advancing to one of the leading players in dynamic growth region APAC
Strong partnership with Shiseido to support future business growth
NEXT STEP IN HENKEL’S ACTIVE PORTFOLIO MANAGEMENT
NEXT STEP IN HENKEL’S ACTIVE PORTFOLIO MANAGEMENT15
INNOVATION
HENKEL ROADSHOW PRESENTATION MAY 202216
IMPACTFUL INNOVATIONS
Adhesive Technologies advancing with high impactsolutions addressing global megatrends
Successful launches in Beauty Care and Laundry & Home Care focusing on sustainabilityand growth segments
New state-of-the-artAdhesive Technologies Inspiration Center in DUS
Intensified collaboration with start-ups, incubators and thinktanks
STRENGTHEN CUSTOMER COLLABORATION
Launching new €150 m Venture Capital Fund II
Continue investments to boost strong innovation pipeline and expand market positions
Fully leverage potential of customer and consumer collaborations through innovation centers, D2C platforms and AI tools
NEXT LEVEL
Ongoing transformation of products and portfolios towards sustainability contribution across all business units
SUSTAINABILITY
HENKEL ROADSHOW PRESENTATION MAY 202217
KEY MILESTONES ACHIEVED
CO2 reduced by 50% – share of green electricity increased to 68%
Share of recyclability of our packaging at 86%
Excellent results in ratings and rankings, including EcoVadis Platinum Recognition Level, ISS ESG rating B+
EXTERNAL RECOGNITION
Step up efforts guided by new 2030+ Sustainability Ambition Framework
Further advance portfolios, making sustainability a true competitive differentiator for consumers and customers
Advancing Adhesive Technologies portfolio building on comprehensive approach to map and track sustainability contribution
NEXT LEVEL
Add products
ADVANCING PORTFOLIOS
DIGITALIZATION
HENKEL ROADSHOW PRESENTATION MAY 202218
Further strengthen e-shops as driver for digital sales growth
Leverage hubs in Berlin & Shanghai with strong collaboration between dx and business units
Scaling up new digital RAQN platform with focus on e-commerce
NEXT LEVELSTRONG E-COMMERCE EXPANSION
Digital sales share increased to more than 18% on Group level in FY 2021
Organic digital sales growth of ~60% across businesses vs. 2019
B2B e-shops in Adhesive Technologies and Beauty Care Professional boostingdigital sales growth
SUCCESSFUL INITIATIVES
Combined digital unit Henkel dx fully operational – investing in new initiatives while optimizing IT spend
Pioneering role in industry 4.0confirmed by WEF
FUTURE-READY OPERATING MODELS
HENKEL ROADSHOW PRESENTATION MAY 202219
NEXT LEVEL
Successful completion of Laundry & Home Care and Beauty Care merger into new Henkel Consumer Brands
Optimization of support structures and stringent management of cost base
CLOSER TO CUSTOMERS & CONSUMERS
Customer-centric organization in Adhesive Technologies established
Organizational changes in consumer businesses for more regional focus and customer proximity
Purchasing organization aligned to business units, innovation and procurement markets
EFFICIENT STRUCTURES AND COST FOCUS
Freeing up resources for sustained and targeted investments into sustainability, digital and innovation
100% of top executives engaged in new leadership trainings and 360° feedback
COLLABORATIVE CULTURE & EMPOWERED PEOPLE
HENKEL ROADSHOW PRESENTATION MAY 202220
NEW WAYS OF WORKING
Holistic Smart Work concept developed and global roll-out started
New purpose as north star of Henkel teamand Purposeful Growth Strategy, supportedby launch of new corporate brand
PURPOSE & CORPORATE BRAND
Continue cultural journey with a focus on ‘enabling pioneers’ with strong initiatives targeting all levels of the organization
Complete roll-out of Smart Work concept focusing on health & well-being and digital workplaces
Strengthen diversity, equity and inclusion across all dimensions
NEXT LEVEL
CULTURAL TRANSFORMATION
“PIONEERS AT HEART FOR THE GOOD
OF GENERATIONS”
HENKEL ROADSHOW PRESENTATION MAY 202221
ACHIEVEMENTS 2020/2021 HIGHLIGHTS WAY FORWARD
2030+ SUSTAINABILITY AMBITION FRAMEWORK
CREATION OF HENKEL CONSUMER BRANDS
Strong progress along all six pillars of Purposeful Growth Agenda since launch in early 2020
Key milestones achieved, but also areas for improvement and need for change identified
Clear priorities set for next level of implementationto fully leverage potential
HENKEL ROADSHOW PRESENTATION MAY 202222
01 Henkel Group Overview
02 Purposeful Growth Agenda & Financial Ambition
Progress 2020/2021 & next level Henkel Consumer Brands 2030+ Sustainability Ambition & Framework
03 Business Performance Q1 2022 & Outlook
AGENDA
2323
HENKEL CONSUMER BRANDSSTRONG PLATFORM FOR GROWTH WITHONE MULTI-CATEGORY CONSUMER GOODS UNIT
HENKEL ROADSHOW PRESENTATION MAY 2022
A WINNING COMBINATION
24 HENKEL ROADSHOW PRESENTATION MAY 2022
Creating one multi-category platform for growth
Stronger basis for shaping and growing the portfolio with clear must-haves to be part of Consumer Brands
Unleash potential of combined scale
Joint forces to advance in fields critical for success, leveraging substantial synergy potential to invest in growth and drive margin
Empower one team to win
One leadership team with leaner structures and faster decisions as well as bigger roles and opportunities for teams
Drivinggrowth &
profitability
Team
STRATEGIC RATIONALE – EXECUTINGTHE PURPOSEFUL GROWTH AGENDA
HENKEL ROADSHOW PRESENTATION MAY 202225
Building a sustainable growth model
Increasing focus on stronger gross margin
Lifting significant organizational synergies
Taking next step in active portfolio management
BUSINESS ANCHORED IN TWO GLOBAL CORE CATEGORIES IN ATTRACTIVE MARKETS
HENKEL ROADSHOW PRESENTATION MAY 202226
Strategic focus on
– two global core categories Laundry & Home Care and Hair Care1
– selected regional categories
Sizeable markets with strong revenue pool and sustainable growth development
Focus on high-margin strategic country-category combinations
1 Hair Care comprising of Hair Professional and Consumer segments Shampoo & Conditioner, Styling and Coloration
WHERE WE PLAY, WE HOLD LEADING CATEGORY POSITIONS
HENKEL ROADSHOW PRESENTATION MAY 202227
Hair Care
Co-# 2 Professional globally
# 2 in Hair Care in Europe
# 1 in Styling segment globally
# 2 Coloration segment globally
Laundry & Home Care
# 2 in LHC globally
# 1 in LHC in Europe
# 2 in LHC in NA
# 1 in Toilet Care segment globally
Source: Nielsen / IRI trade panels (except Professional)
CREATING A STRONG COMBINED PLATFORM FOCUSED ON GROWTH AND GROSS MARGIN ACCELERATION
HENKEL ROADSHOW PRESENTATION MAY 202228
Top 20 markets
~85%of sales
Top 20 customers
~40%of sales
2 global core categories
~85%of sales
HENKEL ROADSHOW PRESENTATION MAY 202229
OSG3 to 4%
Adj. EBIT Marginmid teens %
Accelerated Growth
Increased Profitability
…through: Shaping the portfolio Creating one organization Consolidating Supply
Chain Investing into profitable
growth-cells
ENABLING US TO DELIVER ON OUR MID-TO LONG-TERM AMBITION
Henkel Consumer Brands
HENKEL ROADSHOW PRESENTATION MAY 202230
SHAPING A HEALTHY GROWTH PORTFOLIO
Key criteria for target portfolio:
− Profitability with gross margin obsession,
− Growth focused portfolio cells and
− Ability to win with #1/2 market positions
Increased combined critical mass facilitates portfolio optimization
Up to 1.0 bn€ businesses under review for divestment/discontinuation
Expansion of consumer platform via M&A and/or organic growth
Leaner structures enabling agility and increasing responsibility through significantly reduced management positions on all layers
One face to the customer with one combined sales team per country representing a more significant business
Reduction of redundant tasks, workflows and procedures
Increased operational efficiency with efficient usage of Shared Service centers for insourcing and offshoring
Enhanced competitive edge via one combined agenda for digitalization & sustainability
CREATING ONE NEW ORGANIZATION DELIVERING SIGNIFICANT UPSIDES
HENKEL ROADSHOW PRESENTATION MAY 202231
AS-IS
TWO PARALLEL SET-UPS WITH DUPLICATED STRUCTURES
TO-BE
ONE MERGED SYNERGISTIC ORGANIZATION
CONSOLIDATING SUPPLY CHAIN NETWORK
32 HENKEL ROADSHOW PRESENTATION MAY 2022
Consolidate network of ~470 contract manufacturers and co-packers
Streamline set-up with ~140 warehouse & logistic locations
Optimize footprint of 45 manufacturing plants and increasing in-housed production volumes to drive gross margin
REALIZING SIGNIFICANT SYNERGIES
HENKEL ROADSHOW PRESENTATION MAY 202233
Reaching € 500m1 gross savings with re-investments in the business
driven by multiple levers: Portfolio – SG&A – Supply Chain
Phase 1Mostly implemented until end of ’23
~€ 250m1 net savings
Impacting ~2,000 mainly white-collar employees
One-time cost of ~€ 350m
Portfolio of up to € 1.0bn sales under review
Phase 2Mostly implemented until end of ‘25
Net savings will be defined
Focusing on Supply Chain footprint measures
One-time costs and CAPEX to be specified
1 on an annualized basis
HENKEL ROADSHOW PRESENTATION MAY 202234
FUELING A POSITIVE GROWTH SPIRAL
Strong brands create pricing power
Allowing better management of increased input costs
Portfolio with high gross margin focus
Investment focus on core platforms with higher margin in key markets
Manufacturing and logistics network optimization
High support levels create strongleading brands
Creating consumer pull on must stock brands
WAY TO REACH THE MID-TO LONG-TERM MARGIN AMBITION
HENKEL ROADSHOW PRESENTATION MAY 202235
Mid-to-long termadj. EBIT margin
Updated Outlook adj. EBIT margin
2022
Normalization input cost vs. selling price
Synergies from SG&A
Active portfolio management
Synergies from supply chain
mid-teens %
Contribution from re-investment into growth initiatives
Note: Box sizes not allowing indication on underlying financial impact
HENKEL CONSUMER BRANDSSTRONGER IN A COMBINED SET-UP
HENKEL ROADSHOW PRESENTATION MAY 202236
Building one business with increased scale, focused on attractive market cells with strong in-market positions
Strategic investment choices behind attractive market & category combinations, with above average gross margin potential
Leverage substantial synergies from SG&A and Supply Chain to enable investmentinto profitable growth and deliver our mid-term profitability ambition
Opportunity to actively manage portfolio due to enhanced critical mass
New consumer platform facilitating acquisition of further consumer categories
to become Executive Vice President Henkel Consumer Brands
and to lead the integration process
to continue leading Laundry & Home Care during transition and to stay with Henkel latest until year-end 2022
WOLFGANG KÖNIGExecutive Vice President
Beauty Care(since 06/2021)
BRUNO PIACENZAExecutive Vice President Laundry & Home Care
(since 03/2011)
HENKEL ROADSHOW PRESENTATION MAY 202237
CLEAR PATH TOWARDS CREATION OF CONSUMER BRANDS
HENKEL ROADSHOW PRESENTATION MAY 202238
2022
Consumer Brands Q1 Q2 Q3 Q4
Design phase
Detail / planning phase
Execution phase
Live
2023
Q1
Setup integration architecture, validate ambition and design initiatives
Detail and plan implementation initiatives
Implementation and tracking of impact
New organization live
HENKEL ROADSHOW PRESENTATION MAY 202239
HENKEL CONSUMER BRANDS
1 Based on 2021 sales of the Laundry & Home Care and Beauty Care business units
One strong platform to accelerate Purposeful Growth Agenda in Consumer
SALES OF
~10 bn €1
MULTI-CATEGORYCONSUMER PLATFORM
DRIVING
GROWTH & PROFITABILITY
LEVERAGINGSCALE,SYNERGIES AND RESOURCE ALLOCATION
OPTIMIZEDPORTFOLIO WITHICONIC BRANDS
ONE AGILE TEAM WITH ENHANCED
CUSTOMER& CHANNEL CENTRICITY
OPPORTUNITIES FOR
TEAMS, TALENTS, LEADERS
HENKEL ROADSHOW PRESENTATION MAY 202240
01 Henkel Group Overview
02 Purposeful Growth Agenda & Financial Ambition
Progress 2020/2021 & next level Henkel Consumer Brands 2030+ Sustainability Ambition & Framework
03 Business Performance Q1 2022 & Outlook
AGENDA
SUSTAINABILITY AS KEY STRENGTH OF HENKEL
HENKEL ROADSHOW PRESENTATION MAY 202241
Strong heritage
Deep roots in sustainability with consistent focus and commitment throughout decades
Strong performance
Well on track to achieve targets –also recognized in key sustainability ratings
Ambitious targets
Comprehensive set of targets covering key dimensions of sustainability
KEY FACTORS DRIVING ACCELERATION
HENKEL ROADSHOW PRESENTATION MAY 202242
SCIENTIFIC INSIGHTS
GLOBAL POLICIES
MARKET SHIFTS
CUSTOMERS
CONSUMERS
STAKEHOLDERS
HENKEL PURPOSE
GROWTH STRATEGY
CULTURAL CHANGE
LEADERSHIP BEHAVIORS
FUTURE OF WORK
EMPLOYEE ENGAGEMENT
External factors Internal factors
ALIGNING KEY DIMENSIONS UNDER ONE SHARED AMBITION
HENKEL ROADSHOW PRESENTATION MARCH 20224343
2030+ AMBITION HIGHLIGHTS
Aim for climate-positive operations by 2030 and set a net-zero pathway for our scope 3 emissions.
Aim for circular use of water resourcesand waste materials in our operations by 2030
Aim for gender parity across all management levels by 2025 – and shape the future of work for our business and employees
HENKEL ROADSHOW PRESENTATION MAY 202244
HENKEL ROADSHOW PRESENTATION MAY 202245
01 Henkel Group Overview
02 Purposeful Growth Agenda & Financial Ambition
03 Business Performance Q1 2022 & Outlook
AGENDA
Compelling financial ambition for the Henkel Group
and the Adhesive Technologies and Consumer Brands business units
HENKEL ROADSHOW PRESENTATION MAY 202246
MID- TO LONG-TERM AMBITION
3 to 4%
mid- to high single-digit % at constant exchange rates, including M&A
~16%
HENKEL GROUP
continued focus on Free Cash Flow expansion
3 to 5%
high teens %
3 to 4%
mid teens %
ADHESIVE TECHNOLOGIES
CONSUMER BRANDS
OSGORGANIC SALES GROWTH
ADJUSTEDEBIT MARGIN
ADJUSTEDEPS GROWTH
FREE CASH FLOW
HENKEL ROADSHOW PRESENTATION MAY 202247
01 Henkel Group Overview
02 Purposeful Growth Agenda & Financial Ambition
03 Business Performance Q1 2022 & Outlook
AGENDA
HENKEL ROADSHOW PRESENTATION MAY 202248
ORGANIC SALES GROWTH DRIVEN BY STRONG PRICING
Price
Volume
9.4%
Significant organic sales growth in still highly challenging environment driven by strong pricing across all business units
Nominal sales increased to €5.3 billion
M&A
-1.1%
FX
0.2%
Nominal
6.1%
OSG
7.1%-2.3%
BROAD-BASED ORGANIC SALES GROWTH
49 HENKEL ROADSHOW PRESENTATION MAY 2022
NORTH AMERICA
1.2%
WESTERN EUROPE
3.2%
LATIN AMERICA
14.4%
AFRICA MIDDLE EAST
20.3%
EASTERN EUROPE
14.0%
ASIA PACIFIC
13.7%
MATURE MARKETS
3.1%EMERGING MARKETS
11.4%
NORTH AMERICA
6.6%
WESTERN EUROPE
-0.4%
LATIN AMERICA
15.2%
AFRICA MIDDLE EAST
1.4%
EASTERN EUROPE
21.0%
ASIA PACIFIC
5.3%
ADHESIVE TECHNOLOGIES
HENKEL ROADSHOW PRESENTATION MAY 202250
Continuously strong growth momentum with double-digit pricing at stable volumes
Organic growth driven by all business areas:
– Good growth in Automotive & Metals despite ongoing headwinds inAutomotive from semiconductor shortages
– Packaging & Consumer Goods up double-digit, particularly driven by Packaging and Lifestyle
– Electronics & Industrials with significant growth driven by Industrials
– Significant growth in Craftsmen, Construction & Professional supported by all businesses
ORGANIC SALES GROWTH
10.7%Price: 10.6%
Volume: 0.1%
ADHESIVE TECHNOLOGIES
HENKEL ROADSHOW PRESENTATION MAY 202251
DOUBLE DIGIT
Eastern EuropeLatin AmericaNorth America
VERY STRONG
Asia-Pacific (EM)Western Europe
SIGNIFICANT
Africa/Middle-EastAsia-Pacific (MM)
BEAUTY CARE
HENKEL ROADSHOW PRESENTATION MAY 202252
Strong pricing but volume decline particularly due to portfolio measures in Consumer resulting in slightly negative organic sales growth
Consumer below previous year:
– Hair: continued market normalization leading to double-digit growth in Styling and negative development in Coloration; Care below previous year
– Body Care negative mainly driven by portfolio measures
Professional with double-digit growth and all regions contributing,in particular key markets North America and Europe
ORGANIC SALES GROWTH
-1.2%Price: 5.1%
Volume: -6.3%
BEAUTY CARE
HENKEL ROADSHOW PRESENTATION MAY 202253
BELOW PY
Africa/Middle-EastWestern Europe
VERY STRONG
Eastern Europe
GOOD
North America
STRONG
Asia-Pacific (MM)
SIGNIFICANT
Asia-Pacific (EM)Latin America
LAUNDRY & HOME CARE
HENKEL ROADSHOW PRESENTATION MAY 202254
Double-digit pricing clearly offsetting volume decline leading to very strong organic sales growth
Laundry Care with significant organic growth driven by all categories,with strong contribution from core brands Persil, ‘all and Perwoll
Home Care with slightly negative development mainly due to further normalization of demand for hard surface cleaners
ORGANIC SALES GROWTH
4.9%Price: 10.1%
Volume: -5.2%
LAUNDRY & HOME CARE
HENKEL ROADSHOW PRESENTATION MAY 202255
BELOW PY
Western Europe
VERY STRONG
Africa/Middle-East
POSITIVE
Asia-Pacific (EM)
GOOD
North America
DOUBLE-DIGIT
Asia-Pacific (MM)Eastern EuropeLatin America
HENKEL ROADSHOW PRESENTATION MAY 202256
OUTLOOK 2022 (AS PER APRIL 29)
ORGANIC SALES GROWTH1
+3.5 to 5.5%ADJUSTED EBIT MARGIN
9.0 to 11.0%ADJUSTED EPS2 GROWTH
-35 to -15%
At constant exchange rates
reflecting high level ofmarket uncertainty
and volatility
ADHESIVETECHNOLOGIES
BEAUTY CARE
LAUNDRY & HOME CARE
+8.0 to 10.0%
-5.0 to -3.0%
+2.0 to 4.0%
ADHESIVETECHNOLOGIES
BEAUTY CARE
LAUNDRY & HOME CARE
13.0 to 15.0%
5.0 to 7.0%
7.0 to 9.0%
1 Beauty Care OSG considering announced portfolio measures; excluding Russia and Belarus from Q2 2022 onwards 2 Per preferred share
KEY ASSUMPTIONS
HENKEL ROADSHOW PRESENTATION MAY 202257
War in Ukraine
Exit of business activities in Russia and Belarus significantly impacting Group sales and profitability
Noticeable effect from business in Ukraine on Group sales and profitability
Broadly impacting global economies and markets: further acceleration of raw materials and logistics prices paired with substantial volatility
Drastic acceleration of input cost
Average direct materials price increase of mid twenties %expected for 2022
Step up in pricing and savings initiatives
Negative mathematical effect on margin resulting frompassing on in absolute terms significantly higher input cost
Comparison of direct materials gross price increases
~€ 1bn2021
~€ 2bn2022e
Annual delta vs previous year
~€ 0.1bnØ 2011-2020
ACCELERATING PRICING INITIATIVES
HENKEL ROADSHOW PRESENTATION MAY 202258
Comprehensive pricing and savings initiatives in execution
Strong pricing in Q1 across all business units and regions
Further pricing efforts required to compensate for unprecedented headwinds from raw materials and logistic costs
Confident to recover profitability over time, while full compensation not yet in 2022
Development of pricing component
ADHESIVETECHNOLOGIES
BEAUTY CARE
LAUNDRY & HOME CARE
HENKEL GROUP Q1/22:9.4%
0.8% 1.0%
3.1%
1.7%2.7%
3.4%3.4%
1.7%
4.3%5.4%
3.8% 3.4%
10.6%
5.1%
10.1%
Q1/21 Q2/21 Q3/21 Q4/21 Q1/22
KEY TAKE-AWAYS
HENKEL ROADSHOW PRESENTATION MAY 202259
1. Henkel with significant organic sales growth in Q1 2022 driven by pricing
2. Highly volatile environment with broad impacts from war in Ukraine and drastic input cost increases
3. Outlook 2022 reflecting fundamental changes in business environment
4. Step up pricing initiatives to mitigate exceptional headwinds from raw materials & logistics
4. Progressing with creation of multi-category platform Henkel Consumer Brands:
Enhancing growth and margin profile
Significant synergies – targeting € 500m gross savings mid-term
First phase implemented by 2023with annualized net savings of € 250m
Businesses of up to €1 bn under review for portfolio measures
UPCOMING EVENTS
HENKEL ROADSHOW PRESENTATION MAY 202260
What‘s next in 2022
May 5
Q1/22 RELEASE Quarterly
Statement Q1/22
Progress Henkel Consumer Brands
AUG 15
H1/22 RELEASE HY Financial
Report 2022
Interim update on strategic progress
SAVE THE DATE
SEP 20
CAPITAL MARKET DAY2022, DÜSSELDORF Henkel Adhesive Technologies
Henkel Consumer Brands
NOV 8
Q3/22 RELEASE Quarterly
Statement Q3/22
THANK YOU.
HENKEL ROADSHOW PRESENTATION MAY 202261
HENKEL ROADSHOW PRESENTATION MAY 202262
OUTLOOK 2022ADDITIONAL INPUT FOR SELECTED KPIS
Currency Impact on Sales Low single-digit % positive1
M&A Impact on Sales Low to mid-single-digit % negative2
Prices for Direct Materials Increase by mid twenties %1
Restructuring Charges € 450 – 500m3
CapEx € 700 – 800m
1 versus the prior year average 2 including effect from exiting Russia and Belarus 3 including restructuring charges related to the merger of Laundry & Home Care and Beauty Care;
excluding potential restructuring charges related to exiting Russia
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OUTLOOK 2022
Organic Sales Growth 2.0 to 4.0% 3.5 to 5.5%
Adjusted EBIT Margin 11.5 to 13.5% 9.0 to 11.0%
Adjusted EPS1
(at constant currencies)-15 to +5% -35 to -15%
1 Per preferred share
FY 2022 – previously FY 2022 – updated
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ADHESIVE TECHNOLOGIESTOP BRANDS, SALES 2021
~€ 3.1 bn ~€ 0.9 bn~€ 1.6 bn
Top 10 brands: >80% of total Adhesive Technologies sales
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BEAUTY CARETOP BRANDS, SALES 2021
~€ 1.8 bn ~€ 0.3 bn~€ 0.3 bn
Top 10 brands: ~85% of total Beauty Care sales
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LAUNDRY & HOME CARETOP BRANDS, SALES 2021
~€ 1.4 bn ~€ 0.4 bn~€ 0.4 bn
Top 10 brands: ~70% of total Laundry & Home Care sales
HENKEL ROADSHOW PRESENTATION MAY 202267
MANAGEMENT BOARD
CARSTEN KNOBEL CEOBorn 1969, with Henkel since 1995, Member of Board since 2012
MARCO SWOBODAFinance, Purchasing & Global Business SolutionsBorn 1971, with Henkel since 1997, Member of Board since 2020
SYLVIE NICOLHR & Infrastructure ServicesBorn 1973, with Henkel since 1996, Member of Board since 2019
JAN-DIRK AURIS Adhesive TechnologiesBorn 1968, with Henkel since 1984, Member of Board since 2011
WOLFGANG KÖNIGBeauty CareBorn 1972, with Henkel since 2021, Member of Board since June 2021
BRUNO PIACENZALaundry & Home CareBorn 1965, with Henkel since 1990, Member of Board since 2011
Henkel AG & Co. KGaAInvestor RelationsHenkelstrasse 6740589 DüsseldorfGermany
www.henkel.com/irPhone: +49-211-797-3937Fax: +49-211-798-2863E-mail: [email protected]
HENKEL ROADSHOW PRESENTATION MAY 202268
CONTACTS
MANUEL BÖSINGSenior Manager Investor Relations
JENNIFER OTTSenior Manager Investor Relations
DENNIS STARKESenior Manager Investor Relations
INES GÖLDNERTeam Assistant Investor Relations
ANDREA HASCHKESpecialist Investor Relations
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