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Financial Figures/Balance Sheet
Düsseldorf (euro adhoc) - November 16, 2012
Outperform - Globalize - Simplify - Inspire
Henkel presents growth strategy
and financial targets for 2016
- Strong potential for accelerated growth and increased profitability
in all three business sectors
- Financial targets 2016*:
- 20 bn euros sales
- 10 bn euros sales in emerging markets
- 10 % EPS growth (CAGR)**
- Strengthen competitiveness: Focus on brands, innovations, customers
- Expand in emerging markets, leverage strong positions in
mature markets
- Increase investments: capex to rise by over 40% to total 2 bn euros
- Ongoing adaptation and simplification of processes and structures
- Strengthen global team: Leadership, Talents & Performance, Diversity
* Including continuous portfolio optimization without major acquisitions and
divestments
** Adjusted earnings per preferred share, compound annual growth rate
London/Düsseldorf - Today, Henkel presented its new strategy and financial
targets for the period up to 2016. At the same time, the company reconfirmed
its guidance for fiscal 2012 based on its strong business performance in the
first nine months of the year.
"The new strategy builds on the foundation of our corporate values and will
drive Henkel's successful development in the coming years in order to achieve
our long-term vision - to be a global leader in brands and technologies,"
explained Henkel CEO, Kasper Rorsted. "We will outperform our competition as a
globalized company with simplified operations and a highly inspired team - this
is the essence of our new strategy. We will accelerate growth and increase
profitability in all our three business sectors. We are focusing particularly
on the development of our core and growth categories and the expansion of our
businesses in emerging markets while we are continuously adapting our
structures and strengthening our global team."
The new strategy builds on the successful implementation of the strategic
priorities defined in 2008 for the period up to 2012. The foundation for the
strategy until 2016 was a detailed analysis of the major long-term market
trends. The portfolios of Henkel's three business sectors were reviewed against
these trends to determine how they are positioned for delivering profitable
growth in their respective markets.
As a result, Henkel has identified considerable potential for accelerated
growth and increased profitability in each of its business sectors. The company
will increase its investments and raise capital expenditures (capex) by more
than 40 percent to a total of around 2 billion euros until 2016.
Financial targets 2016
By 2016, Henkel aims to grow sales to 20 billion euros, of which 10 billion
euros in emerging markets. For adjusted earnings per preferred share (EPS)
Henkel targets a compound annual growth rate (CAGR) of 10 percent until 2016.
These financial targets include an active portfolio optimization, i.e. small
and mid-sized acquisitions as well as divestments or the discontinuation of non-
strategic activities (with total sales of currently around 500 million
euros). Potential major acquisitions or divestments are not accounted for in
the financial targets.
Henkel will continue to focus on strong cash generation driven by reducing net
working capital to around 5 percent of sales by 2016.
Strategic priorities in summary
1. Outperform: Leverage potential in categories
Henkel will leverage its full potential in categories by actively managing its
portfolio, strengthening top brands, launching powerful innovations and
focusing on customers and consumers.
In its core categories, Henkel will continue to invest in strengthening and
expanding its leading positions. In growth categories, investments will fuel
overproportional growth of existing and new segments. In value categories,
investments will be tailored to maximize profit potential. Henkel will
focus on its strong brands: By 2016, the top 10 brands will generate
approximately 60 percent of total sales (2012: around 46 percent).
To move its innovation capabilities closer to the growing consumer base in
emerging markets, Henkel will open seven new R&D facilities: in Pune (India),
Seoul (Korea), Dubai, Moscow (Russia), Johannesburg (South Africa), São Paulo
(Brasil) and Toluca (Mexico).
2. Globalize: Focus on regions with high potential
In mature markets, Henkel will leverage its strengths and generate profitable
growth by increased brand investments and continued cost focus. By 2016, the
company aims to gain more top positions while increasing profitability.
In emerging markets, Henkel will expand its existing category positions and
accelerate growth in countries where the company has already a strong presence.
In addition, Henkel will selectively enter new countries. By 2016, 12 out of
Henkel's Top 20 countries are expected to be in emerging markets.
3. Simplify: Drive operational excellence
Henkel will continuously improve its operational excellence by making its
processes faster, more standardized and more digital, driving cost-efficiency
and reducing administration cost.
To expand the global coverage of its Shared Services Centers, Henkel will make
significant investments and plans to open new hubs for the Arabic speaking
region and Greater China/North East Asia in addition to its existing four
Centers. The number of employees in Shared Services will grow to more than
3,000. A stronger IT focus will be critical to increase the efficiency of
business processes. Henkel will leverage an integrated global IT platform
supported by incremental IT investments of 140 million euros until 2016. Henkel
will also increase efficiency by sourcing via global hubs, expanding e-sourcing
and reducing the number of suppliers globally by around 40 percent by 2016.
As Henkel continuously adapts its structures to changing market environments,
the company will optimize its global manufacturing footprint on an ongoing
basis.
4. Inspire: Strengthen our global team
To strengthen its global team Henkel will focus on three areas Leadership,
Talents & Performance and Diversity.
As part of its focus on developing strong leaders, Henkel will expand its
training and development programs, such as the Executive Resource Program at
Harvard Business School. To attract and retain talents globally, Henkel will
strengthen its employer brand and offer competitive compensation linked to
performance. Its revised Long-Term-Incentive Plan is fully aligned with the new
financial targets for 2016.
As a diverse employee base with different cultural and professional backgrounds
provides a competitive advantage, Henkel promotes diversity by actively
managing the dimensions nationality, age and gender. With around 30 percent
women in management, Henkel has a leading position and strives to increase this
ratio by 1 to 2 percentage points per year.
Long-term sustainability strategy through to 2030
At the beginning of 2012, Henkel already announced its long-term sustainability
strategy with the target to triple its resource efficiency by 2030 and defined
specific intermediate targets for five-year intervals.
Henkel operates worldwide with leading brands and technologies in three
business areas: Laundry & Home Care, Beauty Care 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 about 47,000 people and reported sales
of 15,605 million euros and adjusted operating profit of 2,029 million euros in
fiscal 2011. Henkel's preferred shares are listed in the German stock index
DAX.
This document contains forward-looking statements which are based on the
current estimates and assumptions made by the corporate management of Henkel AG
& Co. KGaA. Forward-looking statements are characterized by the use of words
such as expect, intend, plan, predict, assume, believe, estimate, anticipate,
forecast and similar formulations. Such statements are not to be understood as
in any way guaranteeing that those expectations will turn out to be accurate.
Future performance and the 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 forward-looking statements.
Contact
Lars Witteck Wulf Klüppelholz
Tel. +49 211 797 - 2606 Tel. +49 211 797 - 1875
Fax +49 211 798 - 4040 Fax +49 211 798 - 4040
E-mail: {0>lars.witteck@henkel.com E-
Mail:<}100{>lars.witteck@henkel.com E-mail:
{0>wulf.klueppelholz@henkel.com<}100{>wulf.klueppelholz@henkel.com
Henkel AG & Co. KGaA
press@henkel.com
Further inquiry note:
Irene Honisch
Assistent Corporate Communications
Tel.: +49 (0)211 797-5668
E-Mail: irene.honisch@henkel.com
end of announcement euro adhoc
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company: Henkel AG & Co. KGaA
Henkelstr. 67
D-40191 Düsseldorf
phone: +49 (0)211 797-0
FAX: +49 (0)211 798-4008
WWW: http://www.henkel.com
sector: Consumer Goods
ISIN: DE0006048432, DE0006048408
indexes: DAX, CDAX, HDAX, Prime All Share
stockmarkets: free trade: Hannover, München, Hamburg, Düsseldorf, Stuttgart,
regulated dealing: Berlin, regulated dealing/prime standard:
Frankfurt
language: English