Henkel Q2 2013 Kasper Rorsted Carsten Knobel London August 08, 2013 1 August 08, 2013 Q2 2013 – Henkel Analyst & Investor Call
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. 2 August 08, 2013 Q2 2013 – Henkel Analyst & Investor Call
Agenda Key Developments Q2 2013 1 2 Financials Q2 2013 Summary & Outlook FY 2013 3 3 August 08, 2013 Q2 2013 – Henkel Analyst & Investor Call
Key figures Q2 2013 4,286 m€ 4,286 m€ 15.4 % 15.4 % 1.07 € 1.07 € Sales Sales Adj. EBIT margin Adj. EBIT margin Adj. EPS (pref.) Adj. EPS (pref.) 5.2 % 5.2 % -130 m€ -130 m€ NWC/ % of sales NWC/ % of sales Net financial pos. Net financial pos. 4 August 08, 2013 Q2 2013 – Henkel Analyst & Investor Call
Achievements Q2 2013 Henkel � Solid organic sales growth driven by all businesses + � All regions growing, Emerging Markets very strong � Emerging Market sales share at 45% � Return to solid growth of Adhesive Technologies, also in North America � Adj. EBIT margin very strong, growth driven by all businesses 5 August 08, 2013 Q2 2013 – Henkel Analyst & Investor Call
Challenges Q2 2013 Henkel � Weakness in Southern Europe impacting all businesses – � Further increased promotional pressure � Electronic Adhesives improving, sales still slightly negative � Continued headwind from FX � Further geo-political and social unrests 6 August 08, 2013 Q2 2013 – Henkel Analyst & Investor Call
Laundry & Home Care Key developments Sales Return � � Strong OSG, Adj. EBIT Margin Laundry strong showing very strong Home Care very strong increase � � Emerging Markets ROCE further OSG double digit increased � Mature Markets flat 7 August 08, 2013 Q2 2013 – Henkel Analyst & Investor Call
Laundry & Home Care Key activities Perwoll Sport & Active Power Gel Pril 3x Best Power � Patented odor neutralization � Residue-free power gel � Best degreasing power in system three dimensions � Value for money innovation � Successful roll-out in Central � Further strengthen position in MENA Eastern Europe in E. Europe and MENA 8 August 08, 2013 Q2 2013 – Henkel Analyst & Investor Call
Beauty Care Key developments Sales Return � � Solid OSG Adj. EBIT Margin showing strong � Retail solid, increase Hair Salon below � PY quarter ROCE further increased � All regions growing, Emerging Markets with strong OSG 9 August 08, 2013 Q2 2013 – Henkel Analyst & Investor Call
Beauty Care Key activities Fa Shower + Lotion Igora Royal Schwarzkopf Million Color � Revolutionary permanent � 1 st shower cream with body � High Definition Technology intense powder-to-cream lotion complex from Fa � The new standard in coloration professional Hair Coloration � Millionized powder pigments 10 August 08, 2013 Q2 2013 – Henkel Analyst & Investor Call
Adhesive Technologies Key developments Sales Return � � Solid OSG Adj. EBIT Margin showing excellent � Emerging Markets with increase very strong OSG � ROCE further � Mature Markets slightly increased below PY quarter � North America with solid OSG 11 August 08, 2013 Q2 2013 – Henkel Analyst & Investor Call
Adhesive Technologies Key activities Composite leaf spring Multi-functional Adhesives Cytec integration MAX 2 � Leverage on lightweight � Build on strong � Integration fully on track industry mega trend customer partnerships � Optimized footprint � Roll-out of technology platform 12 August 08, 2013 Q2 2013 – Henkel Analyst & Investor Call
Progress towards Henkel’s financial targets 2016 Sales [m€] EM sales [m€] EPS CAGR [%] +4.0%* +8.9%* +10.3% 4,286 1,943 1.07 4,206 1,829 0.97 Q2/12 Q2/13 Q2/12 Q2/13 Q2/12 Q2/13 * Organic sales growth 13 13 August 08, 2013 August 08, 2013 Q2 2013 – Henkel Analyst & Investor Call Q2 2013 – Henkel Analyst & Investor Call
Agenda 1 Key Developments Q2 2013 2 Financials Q2 2013 Summary & Outlook FY 2013 3 14 August 08, 2013 Q2 2013 – Henkel Analyst & Investor Call
Key financials Q2 2013 (1/2) Sales in m€, OSG in % Gross Margin Adj. in % EBIT Margin Adj. in % EPS Pref. Adj. in € +4.0% +70bp +90bp +10.3% 4,286 1.07 15.4 48.3 47.6 4,206 0.97 14.5 Q2/12 Q2/13 Q2/12 Q2/13 Q2/12 Q2/13 Q2/12 Q2/13 15 August 08, 2013 Q2 2013 – Henkel Analyst & Investor Call
Key financials Q2 2013 (2/2) Free Cash Flow in m€ Net Financial Position in m€ NWC in % of Sales -180bp -38.5% +1.1bn€ 330 7.0 -130 203 5.2 -1,269 Q2/12 Q2/13 Q2/12 Q2/13 Q2/12 Q2/13 16 August 08, 2013 Q2 2013 – Henkel Analyst & Investor Call
Sales growth in m€, OSG: +4.0 % changes in % +3.2% -2.3% +0.2% 4,286 4,206 +0.8% Sales Q2/12 Price Volume FX M&A Sales Q2/13 � Negative FX impact: mainly Japanese Yen, US Dollar, Russian Ruble 17 August 08, 2013 Q2 2013 – Henkel Analyst & Investor Call
Sales growth by region in m€, OSG in % Emerging Markets Mature Markets +8.9% +0.2% 2,337 2,304 1,943 1,829 Q2/12 Q2/13 Q2/12 Q2/13 � Emerging Markets very strong with a sales share of 45% 18 August 08, 2013 Q2 2013 – Henkel Analyst & Investor Call
Sales growth by region in m€, OSG in % Western Europe Eastern Europe Africa/Middle East +0.2% +5.8% +18.3% 1,425 1,423 799 771 307 279 Q2/12 Q2/13 Q2/12 Q2/13 Q2/12 Q2/13 North America Latin America Asia-Pacific +1.1% +7.8% +6.0% 675 765 657 760 282 270 Q2/12 Q2/13 Q2/12 Q2/13 Q2/12 Q2/13 � Brazil, India, China with double digit growth, Russia strong � Southern Europe and Japan with continued weakness 19 August 08, 2013 Q2 2013 – Henkel Analyst & Investor Call
Income statement adjusted Sales to gross profit Sales in m€ Gross Profit in m€ Gross Margin in % of Sales +1.9% +3.4% +70bp 48.3 4,286 2,072 47.6 4,206 2,003 Q2/12 Q2/13 Q2/12 Q2/13 Q2/12 Q2/13 � Increase in gross margin, despite negative impact of <50bp from COGS � Disciplined execution of countermeasures 20 August 08, 2013 Q2 2013 – Henkel Analyst & Investor Call
Income statement adjusted Gross profit to EBIT in m€, % of sales 48.3% -26.2% 2,072 -2.4% -4.5% 15.4% +0.2% 660 Marketing, Gross Profit R&D Admin OOI/OOE EBIT selling & distr. � Marketing investments flat, selling & distribution expenses slightly increased � Higher admin expenses due to investments in regional hubs in Emerging Markets 21 August 08, 2013 Q2 2013 – Henkel Analyst & Investor Call
Reported to Adjusted EBIT in m€ 27 660 36 607 -10 Reported EBIT One-time One-time Restructuring Adjusted EBIT Q2/13 gains charges charges Q2/13 22 August 08, 2013 Q2 2013 – Henkel Analyst & Investor Call
Development of net financial position in m€ +1.1bn € +114 -85 -130 -612 -1,269 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 � 425m€ dividend payment in April 23 August 08, 2013 Q2 2013 – Henkel Analyst & Investor Call
Laundry & Home Care Key figures Sales in m€, OSG in % EBIT Margin Adj. in % NWC in % of Sales +5.8% +80bp -150bp 15.3 1,186 1,147 14.5 -2.7 -4.2 Q2/12 Q2/13 Q2/12 Q2/13 Q2/12 Q2/13 � OSG driven by 1.5% in price and 4.3% in volume � Very strong EBIT margin increase due to efficiency gains; strict cost discipline 24 August 08, 2013 Q2 2013 – Henkel Analyst & Investor Call
Beauty Care Key figures Sales in m€, OSG in % EBIT Margin Adj. in % NWC in % of Sales +2.8% +50bp -40bp 923 921 14.9 2.8 14.4 2.4 Q2/12 Q2/13 Q2/12 Q2/13 Q2/12 Q2/13 � OSG driven by 0.5% in price and 2.3% in volume � Strong EBIT Margin increase due to improved gross margin; strict cost discipline 25 August 08, 2013 Q2 2013 – Henkel Analyst & Investor Call
Adhesive Technologies Key figures Sales in m€, OSG in % EBIT Margin Adj. in % NWC in % of Sales +3.6% +120bp -220bp 2,138 16.9 2,099 15.7 14.4 12.2 Q2/12 Q2/13 Q2/12 Q2/13 Q2/12 Q2/13 � OSG driven by 0.5% in price and 3.1% in volume � Excellent EBIT margin increase due to improved gross margin; strict cost discipline 26 August 08, 2013 Q2 2013 – Henkel Analyst & Investor Call
Agenda 1 Key Developments Q2 2013 Financials Q2 2013 2 3 Summary & Outlook FY 2013 27 August 08, 2013 Q2 2013 – Henkel Analyst & Investor Call
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