Kasper Rorsted Carsten Knobel Dsseldorf May 08, 2013 Q1 2013 - PowerPoint PPT Presentation

Henkel Q1 2013 Kasper Rorsted Carsten Knobel Düsseldorf May 08, 2013 Q1 2013 – Henkel Analyst & Investor Call 1 May 08, 2013

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. Q1 2013 – Henkel Analyst & Investor Call 2 May 08, 2013

Agenda Key Developments Q1 2013 1 2 Financials Q1 2013 3 Summary & Outlook FY 2013 Q1 2013 – Henkel Analyst & Investor Call 3 May 08, 2013

Key figures Q1 2013 4,033 m € 14.9 % 0.96 € Adj. EPS (pref.) Sales Adj. EBIT margin 5.8 % +114 m € NWC*/ % of sales Net financial pos. * According to new definition: Now including also other customer & supplier related payables & receivables. Q1 2013 – Henkel Analyst & Investor Call 4 May 08, 2013

Achievements Q1 2013 Henkel  Strong growth in HPC +  Very strong growth in Emerging Markets despite slower market growth  Solid growth in Latin America  Adj. EBIT margin at all-time high, driven by all 3 businesses  Net financial position again improved Q1 2013 – Henkel Analyst & Investor Call 5 May 08, 2013

Challenges Q1 2013 Henkel –  Adhesives negatively impacted by weakness in Mat. Markets  Weakness of major industrial sectors, esp. in W. Europe  Slow start in North America due to destocking and weakness in execution  Electronics industry with weak start  Strong headwind from FX impact Q1 2013 – Henkel Analyst & Investor Call 6 May 08, 2013

Laundry & Home Care Key developments Sales Return   Very strong OSG Adj. EBIT Margin further increased  Emerging Markets  OSG double digit ROCE further increased  Mature Markets positive Q1 2013 – Henkel Analyst & Investor Call 7 May 08, 2013

Laundry & Home Care Key activities Persil Duo-Caps Vernel Aroma Therapy Acquisition in E. Europe  1 st to launch multi-chamber  Further strengthen position  PZ Cussons’ Polish caps across E. Europe in Western Europe L&HC brands  Now also in W. Europe  Trend setter in scent  Closing expected in Q3 segment after antitrust clearance Q1 2013 – Henkel Analyst & Investor Call 8 May 08, 2013

Beauty Care Key developments Sales Return   Solid OSG, Adj. EBIT Margin Retail strong, further increased Hair Salon negative  ROCE further  Emerging Markets increased OSG double digit  Mature Markets positive Q1 2013 – Henkel Analyst & Investor Call 9 May 08, 2013

Beauty Care Key activities Color Ultimate Dial Coconut Water Gliss Kur Ultimate Oil Elixir  1 st permanent  1 st body wash with nutrient  1 st care with nourishing multi-usage coloration rich coconut water golden oil elixir  Groundbreaking, superior application Q1 2013 – Henkel Analyst & Investor Call 10 May 08, 2013

Adhesive Technologies Key developments Sales Return   OSG below PY quarter Adj. EBIT Margin strongly increased  Emerging Markets with  solid OSG ROCE further increased  Mature Markets below PY quarter Q1 2013 – Henkel Analyst & Investor Call 11 May 08, 2013

Adhesive Technologies Key activities Ceresit CM 77 UltraFlex Pressure sensitive Adh. Divestment of Chemofast  Innovation in construction  Roll-out of technologies  Ongoing active portfolio business based on Henkel acquired from Cytec in 2012 management own technology Q1 2013 – Henkel Analyst & Investor Call 12 May 08, 2013

Progress towards Henkel’s financial targets 2016 Sales [m € ] EM sales [m € ] EPS CAGR [%] +2.5%* +8.2%* +10.3%** 4,033 0.96 4,008 1,728 1,639 0.87** Q1/12 Q1/13 Q1/12 Q1/13 Q1/12 Q1/13 * Organic sales growth, ** Prior-year figure before adaptation to IAS 19. Q1 2013 – Henkel Analyst & Investor Call Q1 2013 – Henkel Analyst & Investor Call 13 13 May 08, 2013 May 08, 2013

Agenda 1 Key Developments Q1 2013 2 Financials Q1 2013 3 Summary & Outlook FY 2013 Q1 2013 – Henkel Analyst & Investor Call 14 May 08, 2013

Key financials Q1 2013 (1/2) Sales in m € , OSG in % Gross Margin Adj. in % EPS Pref. Adj. in € EBIT Margin Adj. in % +2.5% +150bp +120bp +10.3%* 0.96 48.6 14.9 4,033 4,008 13.7 0.87* 47.1 Q1/12 Q1/13 Q1/12 Q1/13 Q1/12 Q1/13 Q1/12 Q1/13 * Prior-year figure before adaptation to IAS 19. Q1 2013 – Henkel Analyst & Investor Call 15 May 08, 2013

Key financials Q1 2013 (2/2) Net Financial Position in m € Free Cash Flow in m € NWC* in % of Sales +1.3bn € -170bp -9.1% 114 230 7.5 209 5.8 -1,159 Q1/12 Q1/13 Q1/12 Q1/13 Q1/12 Q1/13 * According to new definition: Now including also other customer & supplier related payables & receivables. Q1 2013 – Henkel Analyst & Investor Call 16 May 08, 2013

Sales growth – Henkel in m € , changes in % OSG: +2.5 % +0.9% -2.0% +1.6% +0.1% 4,033 4,008 Sales Q1/12 Price Volume FX M&A Sales Q1/13  Negative FX impact: mainly Japanese Yen, Brazilian Real, Egyptian Pound Q1 2013 – Henkel Analyst & Investor Call 17 May 08, 2013

Sales growth by region in m € , OSG in % Emerging Markets Mature Markets +8.2% -1.5% 2,330 2,267 1,728 1,639 Q1/12 Q1/13 Q1/12 Q1/13  Emerging Market sales share at 43% Q1 2013 – Henkel Analyst & Investor Call 18 May 08, 2013

Sales growth by region in m € , OSG in % Western Europe Eastern Europe Africa/Middle East -1.0% +7.3% +18.2% 1,437 718 1,421 289 259 675 Q1/12 Q1/13 Q1/12 Q1/13 Q1/12 Q1/13 North America Asia-Pacific Latin America -0.4% +4.5% +1.3% 746 729 263 257 589 580 Q1/12 Q1/13 Q1/12 Q1/13 Q1/12 Q1/13  Eastern Europe with very strong contribution from Russia, Turkey double digit  Asia-Pacific with solid growth from China, Japan below PY level Q1 2013 – Henkel Analyst & Investor Call 19 May 08, 2013

Income statement adjusted Sales to gross profit Sales in m € Gross Profit in m € Gross Margin in % of Sales +0.6% +3.8% +150bp 48.6 4,033 1,961 4,008 47.1 1,889 Q1/12 Q1/13 Q1/12 Q1/13 Q1/12 Q1/13  Significant increase in gross margin, despite negative impact of 50bp from COGS  Disciplined execution of countermeasures Q1 2013 – Henkel Analyst & Investor Call 20 May 08, 2013

Income statement adjusted Gross profit to EBIT in m € , +60bp +20bp +120bp % of sales 48.6% -26.9% 1,961 -2.6% -4.8% +0.6% 14.9% 600 Marketing, Gross Profit R&D Admin OOI/OOE EBIT selling & distr.  Higher marketing expenses, selling & distribution flat  Higher admin expenses due to investments in regional hubs in Emerging Markets Q1 2013 – Henkel Analyst & Investor Call 21 May 08, 2013

Development of net financial position in m € +1.3bn € +114 -85 -612 -1,159 -1,269 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13  Net financial position significantly improved Q1 2013 – Henkel Analyst & Investor Call 22 May 08, 2013

Laundry & Home Care Key figures Sales in m € , OSG in % EBIT Margin Adj. in % NWC* in % of Sales +8.0% +50bp -70bp 1,177 15.0 1,108 14.5 -3.1 -3.8 Q1/12 Q1/13 Q1/12 Q1/13 Q1/12 Q1/13  OSG driven by 2.7% in price and 5.3% in volume  EBIT margin driven by improvement in gross margin; marketing expenses increased * According to new definition: Now including also other customer & supplier related payables & receivables. Q1 2013 – Henkel Analyst & Investor Call 23 May 08, 2013

Beauty Care Key figures Sales in m € , OSG in % EBIT Margin Adj. in % NWC* in % of Sales +4.0% +50bp -80bp 4.2 873 14.9 861 14.4 3.4 Q1/12 Q1/13 Q1/12 Q1/13 Q1/12 Q1/13  OSG driven by 0.8% in price and 3.2% in volume  EBIT margin driven by improvement in gross margin; marketing expenses increased * According to new definition: Now including also other customer & supplier related payables & receivables. Q1 2013 – Henkel Analyst & Investor Call 24 May 08, 2013

Adhesive Technologies Key figures Sales in m € , OSG in % EBIT Margin Adj. in % NWC* in % of Sales -1.2% +210bp -160bp 16.5 2,001 15.2 1,944 13.6 14.4 Q1/12 Q1/13 Q1/12 Q1/13 Q1/12 Q1/13  OSG driven by 1.3% in price, volume down by -2.5%  EBIT margin driven by improvement in gross margin; strong cost discipline * According to new definition: Now including also other customer & supplier related payables & receivables. Q1 2013 – Henkel Analyst & Investor Call 25 May 08, 2013