HENKEL ROADSHOW PRESENTATION AUGUST 2021 DISCLAIMER
This presentation 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 includes – in the applicable financial reporting framework not clearly defined – supplemental financial measures that are or may be alternative performance measures (non-GAAP-measures). These supplemental financial measures should not be viewed in isolation or as alternatives to measures of Henkel’s net assets and financial positions or results of operations as presented in accordance with the applicable financial reporting framework in its Consolidated Financial Statements. Other companies that report or describe similarly titled alternative performance measures may calculate them differently. 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.
Henkel Roadshow Presentation August 2021 2 AGENDA
01 Henkel Group Overview
02 Business Performance H1 2021
03 Outlook
04 Purposeful Growth Agenda & Financial Ambition
Henkel Roadshow Presentation August 2021 3 A GLOBAL LEADER IN BRANDS AND TECHNOLOGIES HENKEL: THREE AREAS OF COMPETENCE
Industrial Business Consumer Business Adhesive Technologies Beauty Care Laundry & Home Care
Globally leading positions #1 Styling / #2 Hair Coloration #1 Europe #1 Global #3 Hair Professional #2 North America
Henkel Roadshow Presentation August 2021 Consumer business market positions in active markets 4 WELL DIVERSIFIED AND BALANCED PORTFOLIO THREE BUSINESS UNITS OPERATING ACROSS ALL REGIONS
Sales by business unit 1 Sales by region 1
Latin America 6% Beauty Care Africa/ Middle East 19% 6% Western Europe 30% Adhesive Eastern Europe Technologies 2020 15% 2020 45% Asia/ Pacific Laundry & North America 15% Home Care 27% 35% Emerging Markets 40% 1 Corporate sales not included (account for 1% of sales)
Henkel Roadshow Presentation August 2021 5 STRONG FOUNDATION
▪ Strong, long-standing customer relationships
▪ High-quality brands, innovations & technologies
▪ Global leader in Adhesive Technologies
▪ Beauty Care global #3 in Professional, selective strongholds in Hair Retail
▪ Global #3 in Laundry & Home Care with many leading positions
6 STRONG FOUNDATION
▪ Dedicated, passionate & loyal team
▪ Sustainability deeply rooted and widely recognized
▪ Strong track record in execution & efficiency
▪ Strong balance sheet & cash generation capabilities
▪ High number of M&A deals executed and integrated
7 HENKEL GROUP FINANCIALS ROBUST BUSINESS PERFORMANCE IN 2020
Organic Sales Adjusted Adjusted EPS1 Free Cash Flow Dividend Growth EBIT Margin -0.7% 13.4% €4.26 €2.3 bn €1.85
Mastering crisis Step-up of growth -17.9% Almost on par Sustaining with strong investments & at constant with prior-year track record of at business portfolio COVID headwinds currencies record level least stable pay-out
1 Per preferred share
Henkel Roadshow Presentation August 2021 8 HENKEL GROUP FINANCIALS
Overall robust performance in 2020 20.0 19.9 20.1 19.3 Sales ▪ Sales reaching € 19.3 bn, nominally down 18.7 in € bn 18.1 by -4.3%, organic sales growth -0.7% ▪ Adj. EBIT at €2.6 bn, -19.9% below the prior 16.4 16.4 year level 17.3% 17.6% 16.9% 16.2% Adj. EBIT ▪ Decline of Adj. EBIT Margin by 260bps to 15.8% 16.0% 15.4% Margin 13.4%, due to COVID-19 headwinds and 13.4% higher growth investments +3.5 +3.4 +3.0 +3.1 +3.1 +2.4 0.0 -0.7 OSG ▪ Adj. EPS1 -21.5% below previous year, 2013 2014 2015 2016 2017 2018 2019 2020 -17.9% at constant currencies
Henkel Roadshow Presentation August 2021 1 Per preferred share 9 HENKEL GROUP FINANCIALS
Free cash flow in € m 2,471 Strong and consistent cash generation 2,338 2,205 ▪ Continued focus on long-term cash expansion driven by operating performance, efficient 1,917 capital management and disciplined CapEx
1,690 1,701 ▪ Very robust balance sheet with net financial 1,616 position of € -888 m as of December 31, 2020
1,333 ▪ Cash generation capabilities and low debt levels provide sufficient room to maneuver
2013 2014 2015 2016 2017 2018 2019 2020
Henkel Roadshow Presentation August 2021 10 HENKEL GROUP FINANCIALS DISCIPLINED CAPITAL ALLOCATION
Investments Acquisitions Dividends
GE branded consumer sealants
▪ Asset-light business model; ▪ M&A integral part of strategy, ▪ Target payout ratio 30 to 40% relatively low CapEx requirement selective VC investments ▪ Dividend of € 1.85 for 2020, ▪ Focus on growth and ▪ Disciplined approach in M&A; payout ratio of 43.7% above capacity investments committed to single-A rating target ratio due to special nature ▪ € 715 m invested in 2020 ▪ Ca. € 500 m invested in 2020 of COVID-19 impact on earnings ▪ Dividend growing or at least stable every year since IPO
Henkel Roadshow Presentation August 2021 11 AGENDA
01 Henkel Group Overview
02 Business Performance H1 2021
03 Outlook
04 Purposeful Growth Agenda & Financial Ambition
Henkel Roadshow Presentation August 2021 12 VERY STRONG PERFORMANCE IN H1 2021
Double-digit organic sales growth Double-digit earnings increase of +11.3% in first half 2021 with with adjusted EBIT margin of 14.4%, growth across all business units EPS at €2.401 (+30% at constant FX) and regions
Full year 2021 guidance updated Purposeful Growth Agenda with stronger top-line growth and PIONEERS AT HEART with continued strong progress, adjusted EBIT margin reflecting H2 FOR THE GOOD expanding competitive edge and input cost headwinds – outlook for OF GENERATIONS enhancing company culture, EPS growth1 confirmed fueled by new purpose
Henkel Roadshow Presentation August 2021 1 Per preferred share at constant exchange rates 13 BUSINESS ENVIRONMENT
▪ Strong economic recovery in H1 2021 after significant pandemic-related downturn in 2020
▪ Industrial production significantly improved with broad-based recovery across industries
▪ Consumer demand with varying dynamics in different categories and partially high volatility
▪ Scarcity in raw material supply and logistics with drastic and broad-based cost inflation in volatile markets, further accelerating in Q2
Henkel Roadshow Presentation August 2021 14 BROAD-BASED RECOVERY OF INDUSTRIAL DEMAND DEVELOPMENT OF SELECTED MARKETS H1 2021
ADHESIVE TECHNOLOGIES MARKETS INDUSTRIAL PRODUCTION INDEX1
AUTOMOTIVE GENERAL MANUFACTURING & ELECTRONICS MAINTENANCE
2020 2021
CONSUMER & CRAFTSMEN PACKAGING AEROSPACE H1 H2 H1
negative positive
1 Illustrative presentation of monthly IPX development (year-over-year) 15 VARYING DYNAMICS IN CONSUMER CATEGORIES DEVELOPMENT OF SELECTED MARKETS H1 20211
BEAUTY CARE MARKETS LAUNDRY & HOME CARE MARKETS
HOME HAIR STYLING SOAPS HAIR SALON HARD SURFACE HEAVY DUTY AUTOMATIC
COLORATIONS CLEANERS DETERGENTS DISHWASHING
H1
2020
H2
H1 2021
1 Illustrative presentation of bi-monthly market development (year-over-year) 16 negative positive DRASTIC AND BROAD-BASED INPUT COST INFLATION SCARCITY IN RAW MATERIAL SUPPLY AND LOGISTICS
Four fold +93% vs. year-end +47% vs. year-end increase in average number increase of increase of of force majeures container freight rates Brent Crude Oil price H1 2021 vs. H1 2020
Strong pick-up in global Global supply chains facing Drastic and broad-based price demand and capacity supply-demand imbalances increases in raw materials, constraints leading to with all-time high force due to recovering volumes substantial increase majeure disruptions meeting tight supply chains in logistic costs
Henkel Roadshow Presentation August 2021 17 PURPOSEFUL GROWTH
WINNING COMPETITIVE EDGE FUTURE-READY PORTFOLIO OPERATING MODELS SUSTAIN- DIGITALI- INNOVATION ABILITY ZATION
COLLABORATIVE CULTURE & EMPOWERED PEOPLE
18 PROGRESS IN STRATEGIC FOCUS FIELDS
Advancing with active portfolio management: ~€ 350 m sales divested or discontinued Attractive acquisition strengthening sustainability position
Expanding competitive edge: Impactful innovations and sustainable solutions driving double-digit growth Group digital sales up by 40%
Doubling down on cultural transformation: New purpose and smart work concept launched
19 Advancing with active portfolio management
▪ Businesses and brands with total of ~€350 m annual sales divested or discontinued1 with majority in consumer businesses ▪ ~60% of revenues in turnaround cluster delivering improved topline momentum
1 accumulated since January 2020 20 ▪ Acquisition of Swania in France, expanding position with ecological laundry and home care products
▪ Highly complementary, leading portfolio in very attractive and profitable market segments
▪ M&A remains integral part of strategy
Attractive acquisition strengthening sustainability position
21 Accelerate growth in attractive markets in Adhesive Technologies
▪ Mid double-digit growth and market share gains in thermal interface materials for 5G applications driven by co-developments with major customers
▪ Share gains in fast-growing metal pack beverage market thanks to major project wins at key customers
▪ Strengthening leading silicone & sealant position in North American home improvement market
22 Strong comeback in Beauty Care Professional
▪ Professional with double-digit growth in all regions driven by innovations and strong customer support for fast comeback of salons
▪ Superior innovations fueling re-opening with IGORA Royal relaunch and Joico COLORFUL line extension
▪ New European & North American e-shop live, boosting digital sales share
23 Driving strategic initiatives in Beauty Consumer in challenging markets
▪ Continued growth in Hair Care driven by consumer-focused innovations under Gliss, Extra Care and Nature Box brands
▪ Outgrowing markets in Hair Color with strong innovations under Natural & Easy and Palette brands, gaining 110 bps global share vs. pre-COVID
▪ Expanding millennial consumer brand got2b into Color Cosmetics category
24 Expanding innovation leadership in Laundry & Home Care
▪ Significant growth in detergent caps with share gains of ~75 bps, supported by extensive innovation plan across categories & price tiers
▪ Further strengthening market leadership in Toilet Care supported by new launch Bref Brilliant Gel – the 1st premium gel rim block in the market
▪ Dishwashing gaining global share of ~60 bps boosted by impactful innovations like Somat Excellence 4in1 Caps and Pril Antibacterial 25 Progress update Laundry North America ▪ Innovations across key brands ‘all, Persil and Snuggle
▪ Meaningful improvement in service levels and customer in-stock levels
▪ New structures and stronger team with enhanced customer engagement
▪ Market shares still below expectation – starting to bottom out, trend to be confirmed in coming months
26 Expand leading position of Adhesive Technologies through sustainability
▪ Unique water-based bonding technology for sports shoes enabling CO₂ reduction of up to 30% in adhesive bonding process
▪ Innovative building insulation system driving energy savings of up to 50% and expanding leading position in active markets
▪ Comprehensive approach to map and track sustainability contribution of Adhesive Technologies portfolio
27 Stepping-up sustainability in Beauty Care and Laundry & Home Care
▪ Advancing partnership with Plastic Bank: Henkel‘s Social Plastic ecosystem recognized with PCD1 Innovation Award
▪ Promoting sustainable packaging solutions, e.g. with recyclable refill packaging for Nature Box, using 74% less plastic compared to bottles
▪ Further scaling up green platforms, for example with Love Nature, already #3 brand in strongly growing green segment in Germany
1 Packaging of Perfume Cosmetics & Design, Paris 28 ▪ Digital share in Group sales advanced to ~18% with increases in all business units ▪ Growth of >30% in e-commerce in Beauty Care and Laundry & Home Care combined ▪ Adhesive Technologies e-shop with mid double-digit growth in H1, boosting sales share to >25% ▪ Strategic partnership with Adobe to jointly accelerate digital innovations
Continued expansion of digital sales by 40%
29 “PIONEERS AT HEART FOR THE GOOD OF GENERATIONS”
New purpose introduced as north star of Henkel team and Purposeful Growth Strategy capturing: ▪ Entrepreneurial spirit anchored in Henkel’s DNA ▪ Strong sense of responsibility, sustainability, trust and integrity ▪ Commitment to next generations
30 Driving our cultural transformation MAKING OUR CULTURAL CHANGE TANGIBLE ▪ Cultural transformation program in full execution to strengthen creativity, entrepreneurship and customer focus
▪ 100% of top executives engaged in individual transformation journey to increase personal leadership effectiveness incl. new leadership trainings and 360° feedback
▪ “Smart Work” launched as future holistic framework, covering mobile work, role of office, workforce digitalization & employee health
31 SALES DEVELOPMENT IN H1 2021 DOUBLE-DIGIT ORGANIC SALES GROWTH DRIVEN BY VOLUME
OSG M&A FX Nominal
+11.3% +0.4% -7.0% +4.7% Price Volume +2.1% +9.2%
Henkel Roadshow Presentation August 2021 32 REGIONAL DEVELOPMENTS IN H1 2021 ALL REGIONS CONTRIBUTING TO GROWTH
Eastern Europe Western Europe North America 17.6% Mature Markets 5.5% 3.0% 4.5%
Africa / Middle East Emerging Markets Latin America 26.4% 21.0% Asia-Pacific 21.5% 20.8%
Henkel Roadshow Presentation August 2021 33 ADHESIVE TECHNOLOGIES ORGANIC SALES GROWTH H1: 20.2%
▪ Double-digit growth in each business area and region supported by market recovery against low prior-year basis ▪ Automotive & Metals driven by exceptionally strong Automotive business, outgrowing markets ▪ Electronics & Industrials business area with broad based recovery in Industrials and continued strong Electronics performance ▪ Growth in Packaging & Consumer Goods particularly strong in Packaging and Lifestyle ▪ Craftsmen, Construction & Professional supported by increased demand in General Manufacturing & Maintenance
34 ADHESIVE TECHNOLOGIES H1 2021
Organic Sales Growth Adjusted EBIT Margin Net Working Capital 20.2% 17.3% 10.5%
Price Volume Change y-o-y Change y-o-y +1.2% +19.0% +420bps -390bps
Henkel Roadshow Presentation August 2021 35 BEAUTY CARE ORGANIC SALES GROWTH H1: +5.2%
▪ Strong comeback of Professional with clear double-digit growth across all regions ▪ Consumer overall below previous year with mixed developments in business areas and regions ▪ Consumer Hair with very strong growth driven by all categories and strong share gains in Color ▪ Body Care double-digit % below previous year, affected by Soap – especially in North America –, lapping prior-year demand peaks
36 BEAUTY CARE H1 2021
Organic Sales Growth Adjusted EBIT Margin Net Working Capital 5.2% 10.0% 2.9%
Price Volume Change y-o-y Change y-o-y +1.8% +3.3% +50bps -100bps
Henkel Roadshow Presentation August 2021 37 LAUNDRY & HOME CARE ORGANIC SALES GROWTH H1: +3.9%
▪ Laundry Care with good organic sales growth driven by significant growth in our #1 brand Persil ▪ Home Care with significant organic sales growth due to double-digit growth in Pril and Bref and significant growth in Somat ▪ Substantial market share gains in almost all regions, double-digit growth in emerging markets ▪ North America below prior year, affected by supply/logistics challenges; market shares starting to bottom out
38 LAUNDRY & HOME CARE H1 2021
Organic Sales Growth Adjusted EBIT Margin Net Working Capital 3.9% 15.0% -5.7%
Price Volume Change y-o-y Change y-o-y +3.3% +0.6% -40bps +50bps
Henkel Roadshow Presentation August 2021 39 ADJUSTED GROSS PROFIT TO ADJUSTED EBIT H1 2021
Impact on Adjusted EBIT Margin in pp vs. PY, in % of sales
46.6% -25.6% -2.4% -4.7% +0.5% 14.4% +0.2pp +1.1pp +0.2pp +0.2pp +0.2pp +1.9pp
Adjusted Gross Marketing, R&D Admin OOI / OOE Adjusted EBIT Profit selling & distribution 40 STRONG DOUBLE-DIGIT % INCREASE OF ADJUSTED EPS H1 2021
in € m
2000
1800 1,430 -29 -356 1,045 -4 1,040 (25.4%1) 1600
1400
1200
1000 Adj. EPS per 800 pref. share 600 400 € 2.40 200 +22.4% y-o-y +30.1% at constant currencies 0 Adjusted Financial Taxes on Adj. net Minorities Adj. NI EBIT result income (adj.) income (NI) attributable to shareholders 41 1 Adjusted tax rate CASH FLOW PERFORMANCE & FINANCIAL POSITION H1 2021
Net Working Capital Free Cash Flow Net Financial Position 3.6% € 471 m € -1,035 m
Change y-o-y Change y-o-y Change vs. year-end -80bps € -468 m € -147 m
Dividend of € 1.85 per preferred share, ~ € 800 m paid out to shareholders
Henkel Roadshow Presentation August 2021 42 AGENDA
01 Henkel Group Overview
02 Business Performance H1 2021
03 Outlook
04 Purposeful Growth Agenda & Financial Ambition
Henkel Roadshow Presentation August 2021 43 GUIDANCE 2021
Organic Sales Growth Adjusted EBIT Margin Adjusted EPS1
High single-digit +6.0 to 8.0% 13.5 to 14.5% to mid-teens %
Adhesive Adhesive increase at constant +10.0 to 12.0% 16.0 to 17.0% Technologies Technologies exchange rates
Beauty Beauty +2.0 to 4.0% 9.5 to 10.5% Care Care
Laundry & Laundry & +2.0 to 4.0% 14.0 to 15.0% Home Care Home Care
Henkel Roadshow Presentation August 2021 1 Per preferred share 44 AGENDA
01 Henkel Group Overview
02 Business Performance H1 2021
03 Outlook
04 Purposeful Growth Agenda & Financial Ambition
Henkel Roadshow Presentation August 2021 45 Create superior Customer & Consumer Value to outgrow the markets WIN THE 20s THROUGH
Reinforce our leadership in PURPOSEFUL Sustainability to shape Henkel‘s future, GROWTH contribute to society and benefit the planet
Enable our People to grow with a sense of belonging
46 PURPOSEFUL GROWTH
WINNING COMPETITIVE EDGE FUTURE-READY PORTFOLIO OPERATING MODELS SUSTAIN- DIGITALI- INNOVATION ABILITY ZATION
COLLABORATIVE CULTURE & EMPOWERED PEOPLE
47 ACTIVE PORTFOLIO MANAGEMENT Market Attractiveness Brands and categories identified for portfolio measures (Turnaround & Divestment / Discontinuation) with high >€ 1 bn total sales volume
Around low 50% of identified sales marked for low high Ability divestment or discontinuation by 2021 to Win
Henkel Roadshow Presentation August 2021 Illustrative representation 48 ACTIVE PORTFOLIO MANAGEMENT
▪ M&A remains integral part of our bn € invested in M&A strategy ~13 since 2008
▪ Key criteria: Availability of Target, Strategic Fit & Financial Attractiveness percent of investment was cash and/or debt-financed ▪ Expand technology leadership in 100 Adhesive Technologies
▪ Focus on leading country/category bn € in free cash flow positions, new business models and ~22 generated in 2008-20 white spots in Consumer businesses
Henkel Roadshow Presentation August 2021 49 ENHANCING COMPETITIVE EDGE: INNOVATION
5 0 Enhance innovation Accelerate impactful Support innovations with approach innovations across all BUs adequate investments
▪ Leverage digital tools and data for Examples: ▪ Consistently support innovations and faster and better insights ▪ Adhesive Technologies leveraging the brands with targeted investments in ▪ Intensify co-creation, open megatrends mobility, connectivity and core categories and regions innovation and idea crowdsourcing sustainability ▪ Growth investments in advertising, ▪ Apply agile approaches / incubators ▪ Beauty Care seizing opportunities in digital and IT increased by € 350 m ▪ Enable creative leads by decision- natural segment and premiumizing by 2020 versus 2018 making in the regions for the region hair care portfolio ▪ Sharpen communication of brand ▪ Build Innovation Centers with ▪ Laundry & Home Care leveraging purpose state-of the-art working space breakthrough Persil 4in1 DISCS
Henkel Roadshow Presentation August 2021 50 ENHANCING COMPETITIVE EDGE: SUSTAINABILITY
BECOME ZERO PLASTIC CLIMATE- WASTE POSITIVE INTO NATURE BY 2040 5 1 Become climate-positive – Circular economy – Anchor sustainability accelerate towards 2025 ambitious 2025 targets in all we do
reduction in the CO2 recyclable / reusable Consumer businesses: 65% 100% 1 emissions of our plastic packaging ▪ Central pillar of innovation strategy production ▪ Strengthen sustainability positioning and brand purpose CO saved together reduction of fossil- ▪ New plastics strategy 100m t 2 50% with our consumers, based virgin plastics2 customers and Adhesive Technologies: suppliers ▪ Stronger positioning of sustainability 1 Excl. adhesive products where residue may affect ▪ Leveraging market potential recyclability or pollute recycling streams ‘ ▪ Setting industry standards Henkel Roadshow Presentation August 2021 2 Consumer products 51 ENHANCING COMPETITIVE EDGE: DIGITALIZATION
Boost 1:1 engagement and Drive E2E customer-centric New setup of digital sales in consumer digitalization in industrial digital business
▪ Scale-up IoT projects and D2C ▪ Digitalization of customer experience ▪ Henkel dx as dedicated unit for ▪ Build 1:1 consumer relationships across all touchpoints market-oriented incubation & leveraging eCRM ▪ End-to-end data integration to innovation ▪ Expand inhouse capabilities to strengthen competitive advantage ▪ Digital and IT combined under enhance speed and relevance ▪ Creation of innovative solutions CDIO, reporting to CEO ▪ Drive digital sales growth through through Analytics and AI ▪ Business Technology continuously dedicated and unique e-Innos ▪ Efficiency increase in Operations optimizing processes & IT & Supply Chain systems to ensure efficiency ▪ Further build-up of expertise
Henkel Roadshow Presentation August 2021 52 FUTURE-READY OPERATING MODELS
Market Megatrends Automotive & Metals Mobility Packaging & Consumer Goods Sustainability
Electronics & Industrials Connectivity
Craftsmen, Construction & Professional Urbanization
4 Divisions with 11 SBUs
Adhesive Technologies Beauty Care Laundry & Home Care
▪ 11 Strategic Business Units (SBUs) ▪ Empowering the front line being ▪ Enhanced regional focus for more focused on customers and markets closest to consumers and customers synergies & empowerment with ▪ End-to-end responsibility of SBUs ▪ Design, develop and decide in the three regions enables fast customer region for the region ▪ New Digital & Game Changer responsiveness ▪ Global growth office to identify and Unit focusing on future growth ▪ Driving synergies and competitive prioritize buckets of growth fields advantage through scale and know- ▪ Leaner structures with less layers and ▪ New process and agile methods how across portfolio complexity for more agility and customer & consumer proximity
Henkel Roadshow Presentation August 2021 53 COLLABORATIVE CULTURE & EMPOWERED PEOPLE
Leadership Commitments introduced as first step of our cultural journey ▪ Powerful global roll-out ▪ Integration in key HR processes
Cultural transformation requires engagement of all employees ▪ Commitment to transformation at the top ▪ Leverage change potential of younger generation
Henkel Roadshow Presentation August 2021 54 MID- TO LONG-TERM FINANCIAL AMBITION
Organic Sales EPS Free Growth Growth Cash Flow
Deliver mid- to high Continued focus on Achieve organic sales single-digit % adjusted Free Cash Flow growth of 2-4% EPS growth at constant expansion exchange rates
▪ Pursue compelling growth opportunities with superior execution
▪ Maintain cost discipline and focus on margin
Henkel Roadshow Presentation August 2021 55 BACK-UP RECONCILIATION REPORTED TO ADJUSTED EBIT H1 2021
in € m
Reported EBIT One-time gains One-time charges Restructuring Adjusted EBIT
1,296 -12 +51 +94 1,430
Henkel Roadshow Presentation August 2021 57 GUIDANCE 2021
FY 2021 – previously FY 2021 – updated
Organic Sales 4.0 to 6.0% 6.0 to 8.0% Growth
Adjusted EBIT 14.0 to 15.0% 13.5 to 14.5% Margin
Adjusted EPS1 High single-digit High single-digit (at constant currencies) to mid-teens % to mid-teens %
1 Increase of adjusted earnings per preferred share at constant currencies 58 FY 2021: ADDITIONAL INPUT FOR SELECTED KPIS
Currency Impact on Sales Mid-single-digit % negative1
Prices for Direct Materials Increase by low teens %1
Restructuring Charges € 250 - 300m
CapEx € 600 - 700m
Henkel Roadshow Presentation August 2021 1 versus the prior year 59 ADHESIVE TECHNOLOGIES TOP BRANDS, SALES 2020
~€ 2.9 bn ~€ 1.5 bn ~€ 0.8 bn
Top 10 brands: >80% of total Adhesive Technologies sales
Henkel Roadshow Presentation August 2021 60 BEAUTY CARE TOP BRANDS, SALES 2020
~€ 1.7 bn ~€ 0.4 bn ~€ 0.3 bn
Top 10 brands: ~85% of total Beauty Care sales
Henkel Roadshow Presentation August 2021 61 LAUNDRY & HOME CARE TOP BRANDS, SALES 2020
~€ 1.5 bn ~€ 0.4 bn ~€ 0.3 bn
Top 10 brand clusters: ~65% of total Laundry & Home Care sales
Henkel Roadshow Presentation August 2021 62 MANAGEMENT STRUCTURE HENKEL AG & CO. KGAA
Henkel ▪ AG as sole personally liable partner Management AG ▪ Management of the businesses of Henkel AG & Co. KGaA
Shareholders’ ▪ Approval of significant corporate actions, strategy Committee ▪ Appointment of Management Board (indirect via Supervisory (KGaA) Board AG)
Supervisory ▪ Supervision of management Board (KGaA) ▪ Appointing the statutory auditor
Annual General ▪ Approval of the financial statements Meeting (KGaA) ▪ Decision about the dividend
Henkel Roadshow Presentation August 2021 63 MANAGEMENT STRUCTURE HENKEL AG & CO. KGAA
Annual General Meeting (Ordinary Shares/ Preferred Shares)
elects members elects 8 shareholder representatives
Henkel AG & Co. KGaA Shareholdersʼ Committee Supervisory Board 5 to 10 members 16 members HR & Finance subcommittees Nominations & Audit subcommittees
members appoints, supervises, participates in
management of the business advises and supervises elects All shares held by Henkel AG & Co. KGaA Henkel Management AG (as sole personally liable partner)
Supervisory Board appoints and supervises Management Board 3 members from SH Committee
Henkel Roadshow Presentation August 2021 64 MANAGEMENT BOARD
Marco Swoboda Carsten Knobel CFO, Purchasing & Sylvie Nicol CEO Global Business Solutions HR & Infrastructure Services
Born 1969, Born 1971, Born 1973, with Henkel with Henkel with Henkel since 1995, since 1997, since 1996, Member of Member of Member of Board since Board since Board since 2012 2020 2019
Jan-Dirk Auris Wolfgang König Bruno Piacenza Adhesive Technologies Beauty Care Laundry & Home Care
Born 1968, Born 1972, Born 1965, with Henkel with Henkel with Henkel since 1984, since 2021, since 1990, Member of Member of Member of Board since Board since Board since 2011 June 2021 2011
Henkel Roadshow Presentation August 2021 65 MANAGEMENT BOARD REMUNERATION COMPONENTS AND CALCULATION
Long-term incentive (LTI) LTI calculation based on ROCE Proportion of target remuneration: Long-term variable Payout in cash around 23% cash remuneration Cap: max. 150% of the target amount Average ROCE target achievement over three years
Target Target Target Functional Factor1 achievement achievement achievement Share deferral + + : 3 x 0.9 - 1.75 (35% STI) Year 1 Year 2 Year 3 Variable annual cash remuneration (STI) Proportion of target remuneration: around 56% Short-term variable 2 Cap: max. 150% of the target amount cash remuneration STI calculation based on OSG and adj. EPS (65% STI) Payout 65% in cash, 35% purchase of preferred shares
Bonus (key financials ) 50% 50% Multiplier for target achievement target individual Functional Factor1 development of achievement + x performance x 0.9 - 1.75 Basic remuneration adj. EPS at constant Basic salary OSG 0.8 to 1.2 currencies
Performance-related components, long-term Performance-related components, short-term Non-performance-related components
1 The functional factor differs according to area of responsibility, 2 Earnings per preferred share Henkel Roadshow Presentation August 2021 66 CAPITAL STOCK & SHAREHOLDER STRUCTURE
438 million shares1
Ordinary shares Preferred shares 260 million shares1 (59.3%) 178 million shares1 (40.7%)
treasury shares 2.07% ▪ Voting right at AGM ▪ No voting right at AGM2 free float ▪ Indefinite share-pooling agreement share pooling 38.44% ▪ Dividend: agreement 61.56% for Henkel family shares free float +0.02€ vs. Ordinary shares (not to be terminated before December 31, 2033) 97.93%
As of March 1, 2021 ▪ Authorization to increase capital stock by up to 43,795,875 shares3 (valid until June 16, 2025) ▪ Authorization to buy back shares up to 10% of capital stock (valid until April 7, 2024)
1 437,958,750 shares in total, thereof 259,795,875 ordinary and 178,162,875 preferred shares 2 Voting right granted, if preferred dividend not fully paid out for two consecutive years 3 Against cash contributions with pre-emptive subscription rights.
Henkel Roadshow Presentation August 2021 67 UPCOMING EVENTS
November 8, 2021 Q3 2021 Release
February 23, 2022 Q4 & FY 2021 Release
April 4, 2022 Annual General Meeting
Henkel Roadshow Presentation August 2021 68 CONTACTS
Henkel AG & Co. KGaA Investor Relations Henkelstrasse 67 40589 Düsseldorf Germany
www.henkel.com/ir Phone: +49-211-797-3937 Fax: +49-211-798-2863 E-mail: [email protected]
From left to right: Dennis Starke, Jennifer Ott, Lars Korinth, Ines Göldner, Andrea Haschke, Manuel Bösing
Henkel Roadshow Presentation August 2021 69