Henkel Presentation. Investor Relations As of May 04, 2011

Transcription

1 Henkel Presentation Investor Relations As of May 04, 2011

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. Page 2

3 Agenda 1. Henkel at a Glance 2. Highlights Q1/ Winning Culture 4. Outlook 2011 & Financial Targets Henkel A Compelling Investment Page 3

4 Three Areas of Competence Leading with Brands and Technologies Laundry & Home Care Cosmetics/ Toiletries Adhesive Technologies Page 4 Henkel at a Glance

5 Focused Portfolio Sales Split Q1/2011 By Business Sector By Region Adhesive Technologies Corporate 1% 28% 49% Laundry & Home Care Japan/Australia/ Corporate New Zealand 4% 1% North America 18% 40% Emerging Markets* 22% 37% 29% Cosmetics/ Toiletries Western Europe * Eastern Europe, Middle East/Africa, Latin America, Asia excl. Japan Page 5 Henkel at a Glance

6 Agenda 1. Henkel at a Glance 2. Highlights Q1/ Winning Culture 4. Outlook 2011 & Financial Targets Henkel A Compelling Investment Page 6

7 Highlights Q1/2011 Henkel Strong organic sales growth Double digit growth in Emerging Markets Market share gains in all relevant markets Adaptation of structures to market Cost reduction achieved (SG&A) Declining gross margin MENA weaker Ongoing intense competition in HPC Supply shortages of certain raw materials Challenges in HPC North America Page 7 Highlights Q1/2011

8 Situation HPC in North America Update Complete business evaluation performed together with external consultant Agreed set of actions with focus on: Operational Excellence: Intensifying all marketing and sales activities Portfolio: Strengthening innovation program Organization: Optimization of structures and processes First stabilization achieved Page 8 Highlights Q1/2011

9 Highlights Q1/2011 Laundry & Home Care Positive organic sales growth in declining markets Western Europe strong; North America negative; healthy organic sales growth in Eastern Europe and Latin America Further market share gains Adj. EBIT margin negatively impacted by higher raw material prices Successful innovations: Bref/WC-Frisch Duo-Aktiv, Persil Gold Plus Robust performance in a highly competitive environment Page 9 Highlights Q1/2011

10 Highlights Q1/2011 Cosmetics/Toiletries Accelerated strong organic sales growth All Regions contributing; Emerging Markets double digit OSG; North America stabilized with market share gains European market shares on record level Adj. EBIT margin on record level for a Q1 Successful innovations: Perfect Mousse, Got2b Powderful Strong quarter in a very challenging environment Page 10 Highlights Q1/2011

11 Highlights Q1/2011 Adhesive Technologies Very strong organic sales growth All regions growing; Emerging Markets main growth driver, especially Eastern Europe, MENA and Asia-Pacific Further market share gains Further increase of adj. EBIT margin Successful innovations: Loctite Quick Tape 249, Teroson Terostat 9120/9320 Super Fast Strong profitable growth path sustained Page 11 Highlights Q1/2011

12 Key Financials Q1/2011 Q1/2010 Q1/2011 Change Sales (m ) (OSG in %) 3,512 3, % (+ 7.2%) Adjusted Gross Margin (%) bp Adjusted EBIT (m ) Adjusted EBIT margin (%) % + 40bp Adj. EPS per pref. share % NWC / sales (%) bp Solid first quarter in a challenging environment Page 12 Highlights Q1/2011

13 Agenda 1. Henkel at a Glance 2. Highlights Q1/ Winning Culture 4. Outlook 2011 & Financial Targets Henkel A Compelling Investment Page 13

14 Winning Culture Cultural changes Structural changes Page 14 Winning Culture

15 Winning Culture Framework Aspiration Behavior Evaluation Reward Page 15 Winning Culture

16 Logo with Claim Vision A global leader in brands and technologies Values Customers People Financials Sustainability Family Page 16 Winning Culture

17 Portfolio Focus on Top Brands Top 3 51% 71% 26% Top 10 81% 89% 52% Page 17 Winning Culture

18 Portfolio Growth Engine Emerging Markets Sales share 31% 37% 41% 69% 63% 59% Emerging Markets Target: 45% sales share in 2012 Mature Markets Page 18 Winning Culture

19 Portfolio Growth Engine Emerging Markets FTE share development 48% 51% 53% 52% 49% 47% Emerging Markets Mature Markets More FTEs in Emerging Markets than in Mature Markets Page 19 Winning Culture

20 Supply Chain Streamlining of supplier portfolio : - 25 % : - 29 % Reducing number of product formulations/packaging : - 9 % : > -10% Targeting annual savings of 100 m Page 20 Winning Culture

21 Transformational Changes Expanding Shared Services Mexico City, Mexico Bratislava, Slovakia Manila, Philippines Bratislava 300 employees Geographical coverage: Western Europe, Eastern Europe, Middle East Africa Manila 300 employees Geographical coverage: North America, Asia-Pacific Mexico City 100 employees Geographical coverage: Latin America Around 1,000 employees by the end of 2011 Page 21 Winning Culture

22 Agenda 1. Henkel at a Glance 2. Highlights Q1/ Winning Culture 4. Outlook 2011 & Financial Targets Henkel A Compelling Investment Page 22

23 Market Environment 2011 Global GDP growth 4.1 4, ,4-2, ,2 Strong economic growth World Trade + 6.6% Industry + 6.8% Private consumption + 2.9% Further increase in raw material costs Low double-digit for Henkel basket Global economy still with positive growth prospects Page 23 Outlook 2011 & Financial Targets 2012

24 Forecast FY 2011 Organic sales growth 3-5% (upper end) NEW! Laundry & Home Care Cosmetics/ Toiletries Adhesive Technologies Market Growth flat flat 3-5% Adjusted EBIT margin Adjusted EPS growth ~13% ~+10% Another year of profitable growth ahead Page 24 Outlook 2011 & Financial Targets 2012

25 The Journey in 2011 Focus on profitable growth and increase market shares Extend strong position in Emerging Markets Stabilize HPC in North America Offset raw material price increases by Sales price increases Continuation of cost focus Acceleration of structural measures (160 m ) 2011 important step towards achieving 2012 financial targets Page 25 Outlook 2011 & Financial Targets 2012

26 Progress towards 2012 Targets Organic sales growth 3 5% (ø p.a.) -3.5% 7.0% Organic sales growth (ø09/10) 1.8% Adjusted EBIT margin (2012) 14% 10.0% 12.3% Adjusted EPS growth > 10% (ø p.a.) -12.8% 47.6% Adj. EPS growth (ø09/10) 13.5% Very confident to achieve Financial Targets 2012 Page 26 Outlook 2011 & Financial Targets 2012

27 Management Incentives Short-Term Incentive (STI) Stronger link between company success and incentive Clear alignment with Henkel s financial targets Enhancement of performance differentiation Special Incentive 2012 Incentive directly linked to achievement of adjusted EBIT margin of 14% in 2012 Cash incentive for 3,000 top managers Special incentive ~1 x Short-Term Incentive if margin target is met Page 27 Outlook 2011 & Financial Targets 2012

28 Use of Free Cash Flow Dividends ~ 25% of Net Earnings (adjusted for exceptional items) Reduction of debt Target: A flat / A2 -ratings Acquisitions Precondition: Rating KPIs fulfilled Share Buy Backs No plans Strong commitment to A flat / A2 -ratings Page 28 Outlook 2011 & Financial Targets 2012

29 Agenda 1. Henkel at a Glance 2. Highlights FY Winning Culture 4. Outlook 2011 & Financial Targets Henkel A Compelling Investment Page 29

30 50 45 Consistent Shareholder Value Growth , CAGR Henkel: 7.3% vs. CAGR DAX: 0.7% 2010 Henkel pref. share price DAX (indexed) Page 30 Henkel A Compelling Investment

31 Henkel A Compelling Investment Focus on three attractive areas of competence Leading brands and successful innovations Strong and growing foothold in Emerging Markets Maintain strong focus on cost Solid financial position Continuous adaptation of structures to market Page 31 Henkel A Compelling Investment

32 Thank you very much!

33 Investor Relations Team What can we do for you? Christian Wietfeld Andrea Haschke Constance Spitzer Henkel AG & Co. KGaA Investor Relations Düsseldorf Germany Phone: Fax: Ines Göldner Oliver Luckenbach Stefan de Diego Page 33

34 Backup

35 Laundry & Home Care Sustainable and Profitable Growth Segment Split Profitable Growth Path Home Care 31% 10.6% 10.9% 11.1% 10.8% 12.8% 13.0% 12.4% 3.0% 4.6% 5.5% 3.8% 2.9% 1.5% 1.6% Laundry Care 69% OSG EBIT margin Q1/2011 Page 35

36 Cosmetics/Toiletries Sustainable and Profitable Growth Segment Split Profitable Growth Path Skin/Oral 7 % 12.2% 12.5% 12.5% 12.6% 12.9% 13.3% 13. 8% Body Care 29 % 1.3% 4.1% 5.8% 4.7% 3.5% 4.8% 5.7% Hair Care 64 % OSG EBIT margin Q1/2011 Page 36

37 Adhesive Technologies Segment Split and Profitable Growth Path Segment Split Craftsmen, Consumers and Building Adhesives 26% Electronics 8% General Industry 15% Profitable Growth Path 12.8% 13.1% 10.6% 10.5% 10.9% 10.1% 8.1% 8.5% 11.8% 11.5% 6.5% 5.3% 1.3% Transport and Metal 32% 19% Packaging, Consumer Goods and Construction Adhesives OSG EBIT margin 10.2% Q1/2011 Page 37

38 Why is Adhesives an Attractive Business? Adhesive: A matter of trust Page 38

39 Growth Drivers of the Adhesives Market Growth of Emerging Countries Growth of emerging countries Adhesives and Sealants Consumption per Capita in kilo* Increasing demand for sustainable products Structural adhesives replacing traditional fastening methods New fields of application Germany USA Japan Russia China Brazil India *) Source: Industrieverband Klebstoffe (IVK), Henkel estimates Page 39

40 Growth Drivers of the Adhesives Market Increasing Demand for Sustainable Products Growth of emerging countries Alternative energies Replacement of hazardous ingredients Increasing demand for sustainable products Structural adhesives replacing traditional fastening methods New fields of application Reduction Page 40

41 Growth Drivers of the Adhesives Market Structural Adhesives Replacing Traditional Fastening Methods Growth of emerging countries Multi-materials, light metals and composites in the automotive industry Increasing demand for sustainable products Structural adhesives replacing traditional fastening methods New fields of application Page 41

42 Growth Drivers of the Adhesives Market New Fields of Application Growth of emerging countries LED lighting Transdermal applications Increasing demand for sustainable products Structural adhesives replacing traditional fastening methods New fields of application Page 42