FY 2015 Kasper Rorsted Carsten Knobel Dsseldorf, February 25th, - PowerPoint PPT Presentation

Henkel FY 2015 Kasper Rorsted Carsten Knobel Düsseldorf, February 25th, 2016

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 2015 – Henkel Investor & Analyst Call 2 February 25, 2016

Agenda 1. Key developments 2015 2. Strategy 2016 - Progress in 2015 3. Financials FY 2015 & Excellence in value creation 4. Summary & Outlook FY 2016 FY 2015 – Henkel Investor & Analyst Call 3 February 25, 2016

FY 2015: Excellent performance in a volatile environment OSG Adj. EBIT margin Adj. EPS growth +3.0% 16.2% +11.4% Free Cash Flow Acquisitions & CapEx Div. payout ratio* € ~1bn € 1.7bn 30.2% * Proposal to shareholders for the Annual General Meeting on April 11th, 2016. FY 2015 – Henkel Investor & Analyst Call 4 February 25, 2016

Delivering on 2015 guidance Guidance FY 2015 FY 2015  Organic Sales Growth ~3% 3.0% EM Sales Share At prior-year level Slight decrease*  Adjusted EBIT Margin ~16% 16.2%  Adjusted EPS Growth >10% 11.4% * Due to FX effects FY 2015 – Henkel Investor & Analyst Call 5 February 25, 2016

Continued profitable growth • Consistent execution of 2016 strategy • Double-digit nominal sales growth, with acquisitions & FX tailwind contributing • Solid organic sales growth driven by all businesses • Strong organic sales growth in Emerging Markets • Positive organic sales growth in Mature Markets driven by North America • Strong increase in adj. EBIT margin • Double-digit growth in adjusted EPS & dividends* * Proposal to shareholders for the Annual General Meeting on April 11th, 2016. FY 2015 – Henkel Investor & Analyst Call 6 February 25, 2016

Challenging & increasingly volatile environment • Severe geo-political and social unrest in some countries • Moderate global GDP growth • Lower economic growth in China, impacting demand for Adhesive Technologies FY 2015 – Henkel Investor & Analyst Call 7 February 25, 2016

Laundry & Home Care Solid OSG & very strong margin improvement in 2015 Sales Return • • Solid OSG Adj. EBIT margin with very strong increase • Laundry solid, • Home Care strong ROCE below level of previous year (acquisitions • MM positive, & FX) North America solid 16.2% 17.1% 15.6% 14.5% 13.0% 13.2% 12.8% 5,137 • EM very strong 4,626 4,556 4,580 4,319 4,304 4,129 5.7% 4.9% 2.9% 1.5% 2.9% 4.7% 4.6% 2009 2010 2011 2012 2013 2014 2015 Sales in m € Adj. EBIT margin OSG in % FY 2015 – Henkel Investor & Analyst Call 8 February 25, 2016

Laundry & Home Care Strengthening innovation leadership across categories High-performance Cleaners Perwoll Care & Repair Persil ProClean • • • 1 st fiber-repair detergent by Perwoll, Improved performance based on High-performance formula, dirt repellent formulations reduces fuzzing & pilling by up to 80% developed for US consumers • • • Prevents contaminant build-up, Effectively prevents new fuzzing & Persil 2-in-1 recently rated #1 weakens adhesion of grease stains pilling of fibers Detergent in America by a leading consumer testing publication FY 2015 – Henkel Investor & Analyst Call 9 February 25, 2016

FY 2015 – Henkel Investor & Analyst Call 10 February 25, 2016

Beauty Care Solid OSG & very strong margin improvement in 2015 Sales Return • • Solid OSG Adj. EBIT margin with very strong increase • Retail solid, • Hair Salon positive ROCE above level of previous year • MM slightly negative, North America solid 15.9% 15.3% 15.0% 14.5% 14.2% 13.3% 12.9% • EM very strong, 3,833 3,542 3,547 3,510 3,399 3,269 3,010 China double digit 2.1% 3.5% 4.8% 5.4% 3.1% 3.0% 2.0% 2009 2010 2011 2012 2013 2014 2015 Sales in m € Adj. EBIT margin OSG in % FY 2015 – Henkel Investor & Analyst Call 11 February 25, 2016

Beauty Care Strengthening innovation leadership across categories Taft Ultimate Fa Magic Oil Schwarzkopf • • • 1 st Taft range with hold level 6 1 st refreshing shower gel from Successful launch of mega brand for the strongest Taft-hold ever Fa with Micro Oil droplets Schwarzkopf in Retail in the US • • • Formula with liquid crystal-gloss- Transparent formula providing soft Recognized with multiple industry effect for luxuriously shiny hair skin feel without greasy residues and consumer awards FY 2015 – Henkel Investor & Analyst Call 12 February 25, 2016

FY 2015 – Henkel Investor & Analyst Call 13 February 25, 2016

Adhesive Technologies Solid OSG & high margin level in 2015 Sales Return • • Solid OSG Adj. EBIT margin at high level, slightly below • All businesses growing previous year • MM positive, • ROCE below level of North America positive previous year (acquisitions) • 15.1% 16.9% 17.2% 17.1% EM solid, 13.9% 12.8% 8.1% China slightly negative 8,992 8,256 8,117 8,127 7,746 7,306 6,224 -10.2% 11.8% 8.3% 3.6% 2.7% 3.7% 2.4% 2009 2010 2011 2012 2013 2014 2015 Sales in m € Adj. EBIT margin OSG in % FY 2015 – Henkel Investor & Analyst Call 14 February 25, 2016

Adhesive Technologies Fostering technology leadership with strong innovations Loctite 60 sec. Universal Glue Loctite GC 10 Solder Paste Mobile Phone Bonding • • • 1 st all-purpose glue from Loctite, 1 st solder paste stable at room Combination of adhesives, repairs in only 60 seconds temperature dispensing equipment & service • • • Forms strong bonds faster & allows Simplifies processes of customers, Improves process chain for repositioning after application reduces energy consumption & costs assembling mobile phones FY 2015 – Henkel Investor & Analyst Call 15 February 25, 2016

FY 2015 – Henkel Investor & Analyst Call 16 February 25, 2016

Agenda 1. Key developments 2015 2. Strategy 2016 - Progress in 2015 3. Financials FY 2015 & Excellence in value creation 4. Summary & Outlook FY 2016 FY 2015 – Henkel Investor & Analyst Call 17 February 25, 2016

2015: Consistent execution of our 2016 Strategy Outperform Globalize outperform globalized A global leader in brands simplified and technologies inspired Simplify Inspire FY 2015 – Henkel Investor & Analyst Call 18 February 25, 2016

2015: Consistent execution of our 2016 Strategy • Active portfolio mgmt • Leverage strength in Outperform Outperform Globalize Globalize • Leverage top brands Mature Markets • Expand footprint in • Powerful innovations Emerging Markets • Focus on customers A global leader in brands and technologies Simplify Inspire FY 2015 – Henkel Investor & Analyst Call 19 February 25, 2016

2015: Consistent execution of our 2016 Strategy Outperform Globalize • Top 3 brands: € 5.9bn sales (2014: € 5bn) • Closing of white spots in attractive categories • Top 10 brands: 61% of sales (2014: 59%) • Fostering online sales both in B2C & B2B • Customer focus enhanced across all channels • Strengthening footprint in MM & EM FY 2015 – Henkel Investor & Analyst Call 20 February 25, 2016

Acquisitions in 2015 Integration of 2014 acquisitions on track Laundry & Home Care Beauty Care Adhesive Technologies 2014 2015 FY 2015 – Henkel Investor & Analyst Call 21 February 25, 2016

2015: Consistent execution of our 2016 Strategy Outperform Globalize A global leader in brands and technologies • Strong leadership • Cost efficiency • Talent & performance • Best-in-class processes focus • Strong IT focus • Diverse teams Simplify Simplify Inspire Inspire FY 2015 – Henkel Investor & Analyst Call 22 February 25, 2016

2015: Consistent execution of our 2016 Strategy Simplify Inspire • Building a scalable business model: “ONE ! Global • Henkel Leadership Forum in cooperation with Supply Chain ”, IT focus & Shared Services Harvard Business School • Flat headcount development year-on-year • Focus on talent development in Emerging Markets FY 2015 – Henkel Investor & Analyst Call 23 February 25, 2016

Agenda 1. Key developments Q3 2015 2. Strategy 2016 - Progress in 2015 3. Financials FY 2015 & Excellence in value creation 4. Summary & Outlook FY 2016 FY 2015 – Henkel Investor & Analyst Call 24 24 February 25, 2016