Henkel Roadshow Presentation. As of November 2017

Transcription

1

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. This document has been issued for information purposes only and is not intended to constitute an investment advice or an offer to sell, or a solicitation of an offer to buy, any securities. 2

3 Agenda 1. Strong foundation, consistent performance 2. Compelling Ambition and clear strategy going forward 3. Consistent Capital allocation supporting our ambition 4. Strong financial performance in 1-9/2017 3

4 Henkel: Three Areas of Competence A Global Leader in Brands and Technologies Industrial Business Consumer Business Adhesive Technologies Beauty Care Laundry & Home Care 4

5 Well-diversified Portfolio of Three Business Units Sales by business unit 1 Sales by region 1 Beauty Care 20% Latin America 6% Africa/ Middle East 7% 2016 Eastern Europe 15% 2016 Western Europe 32% Adhesive Technologies 48% Laundry & Home Care 31% Asia/ Pacific 17% Emerging Markets 42% North America 22% 1 Corporate Sales Not Included (accounts for 1% of sales) 5

6 Portfolio of Strong and Leading Brands 6

7 Top Positions across all Business Units Adhesive Technologies Beauty Care Laundry & Home Care Global leading positions #1 globally Leading category / country positions #3 Hair Coloration #1 Europe #3 Hair Professional #2 North America/ MEA 7

8 High-performing Global Team High level of diversity in all dimensions People as top management priority Strong global talent base Performance-based compensation scheme Winning culture 8

9 Strong and Consistent Performance Profitable Growth path Sales & adj. EBIT margin development 19 bn sales, strong Organic Sales Growth outperforming Markets Sales bn Significant adjusted EBIT Margin increase leading to >3 bn Profit Consistently high adjusted EPS Growth, +11.3% CAGR % % 15.8% 15.4% % 13.0% 12.3% +7.0% +5.9% +3.8% +3.5% +3.4% +3.0% +3.1% Adj. EBIT % OSG % 9

10 Strong and Consistent Performance Sales / Share Price bn 16.5 bn 18.7 bn bn

11 Agenda 1. Strong foundation, consistent performance 2. Compelling Ambition and clear strategy going forward 3. Consistent Capital allocation supporting our ambition 4. Strong financial performance in 1-9/

12 In a Changing Market Environment Globalization Multipolar and increasingly interdependent market environment Digitalization Accelerating digitalization with exponential evolution of technologies VUCA Markets with high level of volatility, uncertainty, complexity & ambiguity Sustainability Increasing awareness about resource scarcity and social responsibility 12

13 we pursue a Compelling Ambition Generate profitable growth and attractive returns Become more customer-focused, innovative and agile Lead digital transformation in all business activities Promote sustainability across the entire value chain Advance our portfolio with value-adding acquisitions Clear and exciting growth strategy going forward 13

14 Financial Ambition 2020 Organic Sales Growth Adjusted EPS Growth Adjusted EBIT Margin Free Cash Flow 2 4% (Average ) 7 9% (CAGR , per preferred share) Continued improvement in adjusted EBIT margin Continued focus on free cash flow expansion 14

15 Henkel Strategic Priorities 15

16 Henkel Successful internal and external communication Focus on right priorities, full transparency of individual contribution Strong dynamic in execution to deliver attractive returns Numerous initiatives in concrete implementation 16

17 Drive Growth Customer & Consumer Brands & Technologies Innovation & Services New Sources of Growth Digital Connect2Consumer program Schwarzkopf expansion in North America High-performance innovations for connectivity and emobility Digital & technological Venture Capital investments Customer roadmaps with top 100 industrial customers Persil Offensive with international innovations First Hair Professional influencer brand #mydentity Three acquisitions closed in

18 Accelerate Digitalization Industry 4.0 Drive Digital Business Expansion of digital driven sales across all business units Global launch of ecommerce platform in industrial business Leverage Industry 4.0 Real-time production analytics based on >500 Mio. data points per day Implementation of smart factory concept in industrial and consumer operations etransform Organization Digital upskill of organization and resource shift from offline to online New Chief Digital Officer with crossbusiness responsibility on board 18

19 Increase Agility Energized & Empowered Teams Henkel Talks - powerful global dialogs between leaders/employees Empowered cross-divisional teams executing strategic projects Fastest Time-to-Market Simplified handling of investment projects in industrial business Shortening time-to-market of consumer goods innovations Smart Simplicity Streamlined global planning, forecasting and reporting processes Accelerated recruiting process with more efficient and simplified hiring 19

20 Fund Growth Resource Allocation Net Revenue Management Most Efficient Structures ONE!Global Supply Chain Build-up of cost category ownership structure Laundry & Home Care North America completed Opening of fully automated warehouse in Düsseldorf Successful implementation in EU30 countries completed More than 120 initiatives, first benefits as of 2017 Henkel roll-out in Europe and in North America started 100+ robotics and automation software solutions running Go-Live in North America beginning of

21 Agenda 1. Strong foundation, consistent performance 2. Compelling Ambition and clear strategy going forward 3. Consistent Capital allocation supporting our ambition 4. Strong financial performance in

22 Consistent Capital Allocation supporting our Ambition Strong Sources of Cash Consistent Capital Allocation Excellent Free Cash Flow Generation Significant Balance Sheet Optionality Investments Acquisitions Dividends 22

23 Consistent Capital Allocation: Investments Increase CapEx to ~3 bn until 2020 Significant investments to support growth initiatives, innovation, infrastructure and IT Step up investments in digitalization Venture Capital Fund of up to 150m 23

24 Consistent Capital Allocation: Acquisitions Integral part of our strategy Strengthen our portfolio both in core and adjacencies Disciplined approach in acquisitions Commitment to single-a rating 24

25 Consistent Capital Allocation: Acquisitions Integration of Sun Products Corporation well on track Henkel s 2 nd largest acquisition Advancing to the No. 2 in the US laundry market Attractive portfolio of well-established & successful brands Integration of business fully on track New admin site inaugurated beginning of September

26 Consistent Capital Allocation: Acquisitions Darex Packaging Technologies & Sonderhoff Group Acquisitions further strengthen leading position of Adhesive Technologies Complementary technologies in highly attractive metal packaging and sealing markets Customer-specific high-impact solutions with expertise-driven sales and services Fostering Henkel s position as partner of choice 26

27 Consistent Capital Allocation: Acquisitions Nattura Laboratorios closed & Zotos International signed Acquisitions reinforce Henkel s global # 3 position in the hair professional market Significant expansion of position in US and Mexican hair professional markets High-quality businesses with complementary portfolio and strong innovation capabilities Defensive as well as offensive synergy potential 27 11

28 Consistent Capital Allocation: Dividends Dividend Policy Established dividend policy Consistent growth of dividend payment Based on strong earnings profile Dividend & Payout Ratio 30.0% 30.0% 30.2% 30.3% 27.6% 24.0% 25.5% 25.5% 25.6% +10,2% Dividend per preferred share ( ) Payout ratio (%) 28

29 Agenda 1. Strong foundation, consistent performance 2. Compelling Ambition and clear strategy going forward 3. Consistent Capital allocation supporting our ambition 4. Strong financial performance in 1-9/

30 : Strong performance driven by our global team Sales 15.1 bn Adjusted EBIT 2.7 bn Adjusted EPS 4.50 Organic Growth +3.1% +4.6% Adhesive Technologies +0.9% Beauty Care +2.2% Laundry & Home Care Adjusted EBIT Margin 17.6% 18.8% Adhesive Technologies 17.6% Beauty Care 17.6% Laundry & Home Care Adjusted EPS Growth +10.0% 30

31 Delivering on Profitable Growth in 1-9/2017 Strong performance driven by all business units and regions Very strong organic sales growth in Emerging Markets, positive in Mature Markets Double-digit growth of adjusted EBIT driven by intensified cost management focus Further increase in adjusted EBIT margin Double-digit growth of adjusted EPS Integration of all acquisitions well on track, successful closing of three acquisitions 31

32 Continued Challenging Environment Persisting geo-political tensions, political and macro-economic uncertainties Difficult conditions in the consumer goods markets remain Natural disasters in North and Latin America Currencies turning into a headwind Raw material prices impacting Gross Profit Organic sales growth in Beauty Care below our expectations 32

33 All Regions Growing in m, OSG in % Western Europe Eastern Europe Africa/Middle East +0.2% +4.8% +2.2% 4,586 4,591 2,061 2,207 1, /16 1-9/17 1-9/16 x 1-9/17 x2 1-9/16 x 1-9/17 x2 North America Latin America Asia-Pacific 2, % +5.6% +6.7% 3,890 2,385 2, /16 1-9/17 1-9/16 x 1-9/17 x2 1-9/16 x 1-9/17 x2 33

34 Continued Challenging Environment in 2017 Geo-political tensions, political and macro-economic uncertainties Difficult conditions in the consumer goods markets persist Increasingly negative FX development Continuously high raw material prices Further drive growth with strong innovations, leading brands and intensified customer focus Increase the agility of our organization by constantly adapting structures to the market Fund growth with continued and rigorous cost focus 34

35 Guidance FY 2017 Organic Sales Growth Adjusted EBIT Margin FY 2017 previously 2-4% All Business Units within this range Improvement to a level above 17.0% FY 2017 updated Henkel: 2-4% Adhesive Technologies: 4-5% Beauty Care: 0-1% Laundry & Home Care: ~2% Improvement to a level above 17.0% Adjusted EPS Growth 7-9% ~ 9% 35

36 FY 2017: Additional input for selected KPIs FY 2017 previously FY 2017 updated Prices for Total Direct Materials Moderate increase vs. the level of the prior year Moderate increase vs. the level of the prior year Restructuring Charges m m CapEx m m 36

37 Key Points Strong foundation based on a well-balanced portfolio Excellent and consistent financial performance Compelling ambition to deliver attractive returns Consistent capital allocation supporting our ambition A clear and exciting growth strategy going forward 37

38 Thank you!