Henkel Q Kasper Rorsted Carsten Knobel. London. 1 August 08, Q Henkel Analyst & Investor Call

Transcription

1 Henkel Q London August 08, 2013 Kasper Rorsted Carsten Knobel 1 August 08, 2013

2 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

3 Agenda 1 2 Key Developments Q Financials Q Summary & Outlook FY August 08, 2013

4 Key figures Q ,286 m Sales 15.4 % Adj. EBIT margin 1.07 Adj. EPS (pref.) 5.2 % NWC/ % of sales -130 m Net financial pos. 4 August 08, 2013

5 Achievements Q 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

6 Challenges Q 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

7 Laundry & Home Care Key developments Sales Strong OSG, Laundry strong Home Care very strong Emerging Markets OSG double digit Return Adj. EBIT Margin showing very strong increase ROCE further increased Mature Markets flat 7 August 08, 2013

8 Laundry & Home Care Key activities Perwoll Sport & Active Power Gel Pril 3x Best Power Patented odor neutralization system Successful roll-out in Central Eastern Europe Residue-free power gel Value for money innovation in MENA Best degreasing power in three dimensions Further strengthen position in E. Europe and MENA 8 August 08, 2013

9 Beauty Care Key developments Sales Solid OSG Retail solid, Hair Salon below PY quarter All regions growing, Emerging Markets with strong OSG Return Adj. EBIT Margin showing strong increase ROCE further increased 9 August 08, 2013

10 Beauty Care Key activities Schwarzkopf Million Color Fa Shower + Lotion Igora Royal Revolutionary permanent intense powder-to-cream coloration Millionized powder pigments 1 st shower cream with body lotion complex from Fa High Definition Technology The new standard in professional Hair Coloration 10 August 08, 2013

11 Adhesive Technologies Key developments Sales Solid OSG Emerging Markets with very strong OSG Mature Markets slightly below PY quarter Return Adj. EBIT Margin showing excellent increase ROCE further increased North America with solid OSG 11 August 08, 2013

12 Adhesive Technologies Key activities Composite leaf spring MAX 2 Multi-functional Adhesives Cytec integration Leverage on lightweight industry mega trend Build on strong customer partnerships Roll-out of technology platform Integration fully on track Optimized footprint 12 August 08, 2013

13 Progress towards Henkel s financial targets 2016 Sales [m ] EM sales [m ] EPS CAGR [%] 4, %* +8.9%* +10.3% 4,286 1,829 1, * Organic sales growth 13 August 08, 2013

14 Agenda 1 2 Key Developments Q Financials Q Summary & Outlook FY August 08, 2013

15 Key financials Q (1/2) Sales in m, OSG in % Gross Margin Adj. in % EBIT Margin Adj. in % EPS Pref. Adj. in 4, % 4, bp +90bp +10.3% August 08, 2013

16 Key financials Q (2/2) NWC in % of Sales Free Cash Flow in m Net Financial Position in m -180bp -38.5% +1.1bn , August 08, 2013

17 Sales growth in m, changes in % OSG: +4.0 % +3.2% -2.3% 4, % +0.2% 4,286 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

18 Sales growth by region in m, OSG in % Emerging Markets Mature Markets +8.9% +0.2% 1,943 2,337 2,304 1,829 Emerging Markets very strong with a sales share of 45% 18 August 08, 2013

19 Sales growth by region in m, OSG in % Western Europe Eastern Europe Africa/Middle East +0.2% 1,425 1, % +18.3% North America Latin America Asia-Pacific +1.1% +7.8% +6.0% Brazil, India, China with double digit growth, Russia strong Southern Europe and Japan with continued weakness 19 August 08, 2013

20 Income statement adjusted Sales to gross profit Sales in m Gross Profit in m Gross Margin in % of Sales +1.9% +3.4% +70bp 4,206 4,286 2,003 2, Increase in gross margin, despite negative impact of <50bp from COGS Disciplined execution of countermeasures 20 August 08, 2013

21 Income statement adjusted Gross profit to EBIT in m, % of sales 48.3% -26.2% 2, % -4.5% +0.2% 15.4% 660 Gross Profit Marketing, selling & distr. R&D Admin OOI/OOE EBIT Marketing investments flat, selling & distribution expenses slightly increased Higher admin expenses due to investments in regional hubs in Emerging Markets 21 August 08, 2013

22 Reported to Adjusted EBIT in m Reported EBIT Q2/13 One-time gains One-time charges Restructuring charges Adjusted EBIT Q2/13 22 August 08, 2013

23 Development of net financial position in m +1.1bn ,269 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 425m dividend payment in April 23 August 08, 2013

24 Laundry & Home Care Key figures Sales in m, OSG in % EBIT Margin Adj. in % NWC in % of Sales +5.8% 1,186 1, bp bp 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

25 Beauty Care Key figures Sales in m, OSG in % EBIT Margin Adj. in % NWC in % of Sales +2.8% bp bp 2.4 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

26 Adhesive Technologies Key figures Sales in m, OSG in % EBIT Margin Adj. in % NWC in % of Sales 2, % 2, bp bp 12.2 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

27 Agenda 1 2 Key Developments Q Financials Q Summary & Outlook FY August 08, 2013

28 Summary Q Overall solid OSG driven by all businesses All regions growing, Emerging Markets with very strong OSG Adj. EBIT margin very strong, growth driven by all businesses Adj. EPS (pref.) growth above 10% Strong quarter in continued challenging market environment 28 August 08, 2013

29 Outlook 2013 Global economic environment remains difficult Strong innovation pipeline to foster profitable growth path despite tougher competitive environment FX headwinds persisting Confirmed guidance for FY 2013 despite headwinds 29 August 08, 2013

30 Guidance FY 2013 Organic sales growth - Laundry & Home Care - Beauty Care - Adhesive Technologies Adjusted EBIT margin - Laundry & Home Care - Beauty Care - Adhesive Technologies Guidance FY % Each division 3-5% ~ 14.5% All divisions contributing Adjusted EPS growth ~ 10% We will continue to adapt our structures to the market 30 August 08, 2013

31 Upcoming events November 12, 2013 Q Financials February 20, 2014 FY 2013 Financials 31 August 08, 2013

32 Thank You! 32 August 08, 2013

33 Additional Information 33 August 08, 2013

34 Further FY 2013 Guidance for selected KPIs (unchanged) Guidance FY 2013 Price increase total direct materials moderate Restructuring charges ~125 m CAPEX on PPE ~500 m 34 August 08, 2013

35 Key financials YTD (1/2) Sales in m, OSG in % Gross Margin Adj. in % EBIT Margin Adj. in % EPS Pref. Adj. in 8, % 8, bp +100bp +10.3% /12 1-6/13 1-6/12 1-6/13 1-6/12 1-6/13 1-6/12 1-6/13 35 August 08, 2013

36 Key financials YTD (2/2) NWC in % of Sales Free Cash Flow in m Net Financial Position in m -180bp % +1.1bn , /12 3-6/13 1-6/12 1-6/13 1-6/12 1-6/13 36 August 08, 2013

37 Sales growth Henkel in m, changes in % OSG: +3.2 % +1.2% +2.0% 8, % +0.2% 8,319 Sales 1-6/12 Price Volume FX M&A Sales 1-6/13 37 August 08, 2013

38 Reported to Adjusted EBIT in m 1, ,260 Reported EBIT 1-6/13 One-time gains One-time charges Restructuring charges Adjusted EBIT 1-6/13 38 August 08, 2013

39 Laundry & Home Care Key figures Sales in m, OSG in % EBIT Margin Adj. in % NWC in % of Sales +6.9% +70bp -150bp 2,254 2, /12 1-6/13 1-6/12 1-6/ /12 3-6/13 OSG driven by 2.0% in price and 4.9% in volume 39 August 08, 2013

40 Beauty Care Key figures Sales in m, OSG in % EBIT Margin Adj. in % NWC in % of Sales +3.4% +50bp -40bp 1,782 1, /12 1-6/13 1-6/12 1-6/13 3-6/12 3-6/13 OSG driven by 0.7% in price and 2.7% in volume 40 August 08, 2013

41 Adhesive Technologies Key figures Sales in m, OSG in % EBIT Margin Adj. in % NWC in % of Sales +1.3% 4,099 4, bp bp /12 1-6/13 1-6/12 1-6/13 3-6/12 3-6/13 OSG driven by 0.9% in price and 0.4% in volume 41 August 08, 2013

42 Reporting changes As of Q onwards IAS 19 revised: Retrospective application of amendments to IAS 19 Employee benefits New regulation replaces expected return on plan assets (EROPA) with an identical actuarial rate for both, pension obligations and plan assets Net working capital definition: Adaptation of net working capital definition Enhanced transparency on customer and supplier figures Definition now also including other customer and supplier related payables and receivables Previous year figures calculated on a comparable basis 42 August 08, 2013