FY 2014 Kasper Rorsted Carsten Knobel Dsseldorf March 4, 2015 - PowerPoint PPT Presentation

Henkel FY 2014 Kasper Rorsted Carsten Knobel Düsseldorf March 4, 2015

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. FY 2014 – Henkel Investor & Analyst Call 2 March 4, 2015

Agenda 1 Key developments 2014 2 Strategy 2016 - progress in 2014 3 Financials FY 2014 & excellence in value creation 4 Summary & outlook FY 2015 FY 2014 – Henkel Investor & Analyst Call 3 March 4, 2015

FY 2014: Robust performance in a challenging, volatile environment OSG Adj. EBIT margin Adj. EPS growth +3.4% 15.8% +7.6% Free Cash Flow Div. payout ratio* Acquisitions € 1.3 bn € 1.8 bn 30% * Proposal to shareholders for the Annual General Meeting on April 13 th , 2015. FY 2014 – Henkel Investor & Analyst Call 4 March 4, 2015

Delivering on 2014 key financial indicators Guidance FY 2014 FY 2014  Organic sales growth 3 - 5% 3.4% Emerging Markets sales share Slight increase At prior-year level  Adjusted EBIT margin Just under 16.0% 15.8%  Adjusted EPS growth High single digits 7.6% FY 2014 – Henkel Investor & Analyst Call 5 March 4, 2015

Continued profitable growth in all business units • Consistent execution of 2016 strategy • High-quality acquisitions strengthening our market positions • Solid organic sales growth driven by all businesses • Continued very strong organic sales growth in Emerging Markets • Adj. EBIT margin at all-time high driven by all businesses • Adj. EPS growth in the high single digits • Further increase in dividend, payout ratio at 30%* * Proposal to shareholders for the Annual General Meeting on April 13 th , 2015. FY 2014 – Henkel Investor & Analyst Call 6 March 4, 2015

Highly challenging & increasingly volatile environment • Pressure from FX headwind, especially in first half 2014 • Severe geo-political and social unrest in some countries • Eastern European economies affected by Russian/Ukrainian crisis • Further intensified price & promotion pressure in HPC markets • North America below expectations FY 2014 – Henkel Investor & Analyst Call 7 March 4, 2015

Laundry & Home Care Solid OSG & very strong adj. EBIT margin improvement in 2014 Sales Return • • Solid OSG Adj. EBIT margin showing very strong increase • Laundry solid, • Home Care very strong ROCE below level of previous year • Mature Markets: - Western Europe solid 16.2% 15.6% 14.5% - North America negative 13.0% 13.2% 12.8% 10.8% • 4,626 4,580 4,556 Emerging Markets double- 4,319 4,304 4,172 4,129 digit 3.8% 2.9% 1.5% 2.9% 4.7% 5.7% 4.6% 2008 2009 2010 2011 2012 2013 2014 Sales in m € Adj. EBIT margin OSG in % FY 2014 – Henkel Investor & Analyst Call 8 March 4, 2015

Laundry & Home Care Strengthening innovation leadership across categories Persil Duo-Caps Vernel Soft & Oils Pril Kraft-Gel • Innovative transparent formula • New and improved concentrated • Powerful formula with new brightness+ formula enzyme technology with precious essential oils • Perfect cleanliness already at • • Exceptional freshness & care, Strong against grease & 20 ° C & improved color protection further improved softness starch-crusts FY 2014 – Henkel Investor & Analyst Call 9 March 4, 2015

FY 2014 – Henkel Investor & Analyst Call 10 March 4, 2015

Beauty Care Solid OSG & solid adj. EBIT margin improvement in 2014 Sales Return • • Solid OSG Adj. EBIT margin showing solid increase • Retail solid, • Hair Salon negative ROCE below level of previous year • Mature Markets: - Western Europe positive 15.3% 15.0% - North America negative 14.5% 14.2% 13.3% 12.9% 12.6% • Emerging Markets strong 3,542 3,547 3,510 3,399 3,269 3,016 3,010 4.7% 3.5% 4.8% 5.4% 3.1% 3.0% 2.0% 2008 2009 2010 2011 2012 2013 2014 Sales in m € Adj. EBIT margin OSG in % FY 2014 – Henkel Investor & Analyst Call 11 March 4, 2015

Beauty Care Strengthening innovation leadership across categories Diadermine N˚110 Schwarzkopf Essence Ultîme Schwarzkopf Bonacure • • 1 st anti-age line with 110 drops of • 1 st Professional Hair Care with 1st celebrity co-created hair brand in retail elixir activating 11 signs of youth patented Cell Perfector Technology • • Celebration of 110 years of • Replenishes damaged hair cells High-performance formulas with luxurious pearl essence for 100% strength & resilience dermatological expertise FY 2014 – Henkel Investor & Analyst Call 12 March 4, 2015

FY 2014 – Henkel Investor & Analyst Call 13 March 4, 2015

Adhesive Technologies Solid OSG & solid adj. EBIT margin improvement in 2014 Return Sales • • Solid OSG, all Adj. EBIT margin showing businesses growing solid increase • • Mature Markets: ROCE further increased - Western Europe positive - North America negative 17.2% 16.9% 15.1% 13.9% 12.8% • Emerging Markets strong 10.1% 8.1% 8,256 8,117 8,127 7,746 7,306 6,700 6,224 1.3% -10.2% 11.8% 8.3% 3.6% 2.7% 3.7% 2008 2009 2010 2011 2012 2013 2014 Sales in m € Adj. EBIT margin OSG in % FY 2014 – Henkel Investor & Analyst Call 14 March 4, 2015

Adhesive Technologies Fostering technology leadership with strong innovations Magnesium Coating Acoustic Solutions Hybrid Adhesive • 1 st technology combining • Electro-ceramic coating against • Acoustic solutions using structural & instant bonding corrosion, friction & wear renewable raw materials • New industrial applications incl. • Weight reduction & efficiency • 30% less weight than synthetic metal, plastics and rubber improvements sound-damping products FY 2014 – Henkel Investor & Analyst Call 15 March 4, 2015

FY 2014 – Henkel Investor & Analyst Call 16 March 4, 2015

Agenda 1 Key developments 2014 2 Strategy 2016 - progress 2014 3 Financials FY 2014 & excellence in value creation 4 Summary & outlook FY 2015 FY 2014 – Henkel Investor & Analyst Call 17 March 4, 2015

Strategy & financial targets 2016 Outperform Globalize Leverage potential Focus on regions in categories with high potential 20 bn € Sales A global leader 10 bn € EM Sales in brands and technologies 10 % Adj. EPS CAGR Simplify Inspire Drive operational Strengthen our excellence global team FY 2014 – Henkel Investor & Analyst Call 18 March 4, 2015

Outperform – Leverage potential in categories Powerful Innovations Consumer Proximity Top Brands R&D Centers 5 new / expanded since 2013 2 planned until 2016 • • • Top 3 brands account for 5bn € Fast, agile & focused innovator Successful innovations from new R&D centers • • Top 10: 59% of sales Innovation rate further • “Open Innovation” concept (2013: 57%) increased in all business units FY 2014 – Henkel Investor & Analyst Call 19 March 4, 2015

Globalize – Focus on regions with high potential Mature Markets Emerging Markets • • Continuous growth driver with very strong organic Strong market positions while further leveraging sales growth supported by all regions profitability • • Investments focusing on further business expansion Investments to further drive efficiency FY 2014 – Henkel Investor & Analyst Call 20 March 4, 2015

Outperform & Globalize – Acquisitions € 1.8 bn invested in acquisitions in 2014 FY 2014 – Henkel Investor & Analyst Call 21 March 4, 2015

Simplify – Drive operational excellence Best-in-Class Processes IT Focus Global Supply Chain • • • > 2,600 employees in 6 shared 45,000 users on new digital Global supply chain company service centers work environment established in Amsterdam • • • Opening of Cairo & Shanghai Further roll-out of Horizon Global sourcing hubs expansion Building a scalable business model FY 2014 – Henkel Investor & Analyst Call 22 March 4, 2015

Inspire – Strengthen our global team Diversity Leadership Talent & Performance • • • “Leadership Forum” developed ~10,250 employees evaluated in 33% of managers are women with Harvard Business School Development Round Tables • New campaign to foster a more • • One third of senior leadership Promotion of ~1,150 employees inclusive work environment team participated in 2014 FY 2014 – Henkel Investor & Analyst Call 23 March 4, 2015