2015 Facts and Figures North America 2 Henkel Facts and Figures 2015 Henkel around the world Henkel operates worldwide with leading brands and Purex®, Dial®, gÖt2b® and LOCTITE®. Henkel employs technologies in three business units: Laundry & Home almost 50,000 people and reported sales of $20.1 billion Care, Beauty Care and Adhesive Technologies. and adjusted operating profit of $3.2 billion in fiscal 2015. Henkel’s preferred shares are listed in the Founded in 1876, Henkel holds globally leading German stock index DAX. market positions, both in the consumer and industrial www.henkel-northamerica.com businesses, with well-known brands such as Persil®, Mississauga, Ontario Düsseldorf, Germany Canada Global Headquarters Vienna, Austria Shanghai, China Rocky Hill, Connecticut, USA North American Scottsdale, Headquarters Arizona, USA Dubai, United Mexico City, Arab Emirates Mexico Cairo, Egypt São Paulo, Brazil Regional Center Henkel Facts and Figures 2015 3 Henkel at a glance 2015 Global Highlights North American Highlights $20.1 16.2 $4.0 billion in sales Adjusted 1 return on sales (EBIT): billion in sales up .4 percentage points Almost About 50,000 43% 6,250 employees of our sales generated in employees the emerging markets Supported approximately Founded in 3,400 1876 51 social projects facilities 1 Adjusted for one-time charges/gains and restructuring charges. 4 Henkel Facts and Figures 2015 our vision our values We put our customers at the A global leader center of what we do. in brands and We value, challenge and technologies. reward our people. We drive excellent sustainable financial performance. We are committed to leadership in sustainability. We build our future on our family business foundation. Henkel Facts and Figures 2015 5 our strategy We will outperform our competition as a globalized company with simplified operations and a highly inspired team! our targets 2016 20 bn € sales 10 bn € sales in emerging markets 10 % annual growth in earnings per share 1 1 Average annual growth in adjusted earnings per preferred share (compound annual growth rate/CAGR). Including continuous portfolio optimization. 6 Henkel Facts and Figures 2015 Our sustainability strategy We are committed to leadership in sustainability – this is By the end of 2015, we had reached all five of our 2015 one of our company values. As sustainability leaders, we targets: We improved net sales per ton of product by 11 pioneer new solutions while continuing to shape our percent (target: 10 percent) and lowered our worldwide business responsibly and increase our economic success. accident rate by 33 percent (target: 20 percent). We We are convinced that sustainability will be more reduced our energy consumption by 18 percent, water important than ever before, supporting our growth, usage by 23 percent and waste by 17 percent – exceeding improving our cost efficiency and reducing risks. our reduction targets of 15 percent in each of these three focal areas. All interim sustainability targets achieved To stay on track for our long-term goal for 2030, we will Our long-term goal for 2030 to triple our efficiency, which need to increase our efficiency by 75 percent by 2020, we call Factor 3, requires an average improvement of 5 to 6 which is our next milestone. We have defined percent each year. For the five-year period up to 2015, we corresponding targets in our focal areas: had set interim targets for each focal area that would result in a 30 percent overall improvement in efficiency. • 22 percent improvement in net sales per ton of product • 30 percent reduction in our carbon dioxide emissions With a 38 percent overall efficiency improvement, we from energy consumption, water usage and waste have clearly achieved the first set of interim targets for the per ton of product period from 2011 to 2015 – and we are well on track toward • 40 percent reduction in our worldwide accident rate meeting our long-term goal. compared to the base year 2010. We have also committed to drive progress along the entire value chain. Accordingly, we are continuously expanding and refining our measurement systems. This has enabled us to assess our entire footprint, including our raw materials as well as the consumption and use of our products. Based on this comprehensive assessment, we have identified additional improvement opportunities and ambitions to create more value and reduce our footprint along the value chain. Our ambition is to become three times more efficient by 2030. www.henkel-northamerica.com/sustainability We call this “Factor 3.” That means tripling the value we create through our business activities in relation to the ecological footprint made by our products and services. Henkel Facts and Figures 2015 7 Our focal areas and targets To successfully implement our strategy and reach our targets, we rely on our products, cooperation with our partners, and the dedication of our people. erforman P ce Our products s s S re a g f deliver more value at a o H e r t P e y Deliver a reduced environmental l l a a t n i more value h c d footprint. o S faCtor Our partners E n e C r d l g r i at a reduced n e are key to driving m y a t a a footprint r a t n e w sustainability along our e d t e a t s W a value chain. W Materials and Waste Our people make the difference – with their commitment, skills and knowledge. For 2020, we have set new interim targets (base year 2010): + 75 % + 22 % + 40 % – 30 % – 30 % – 30 % overall more net safer per less water per less waste per less energy / CO2 efficiency sales per ton million hours ton of product ton of product emissions per of product worked ton of product 8 Henkel Facts and Figures 2015 Our business units Henkel operates on a global scale with leading Laundry & Home Care brands and technologies in three business units: Laundry & Home Care, Beauty Care and Adhesive Technologies. In 2015, we achieved 61 percent of our sales with our top 10 brands, and 44 percent of our global revenue came from our emerging markets. Global sales by business unit Corporate = sales and services not assignable to the individual business units. Henkel Facts and Figures 2015 9 Beauty Care Adhesive Technologies ® 10 Henkel Facts and Figures 2015 Our brands and technologies Laundry & Home Care Henkel’s North American Laundry & Home Care business insecticides for household applications. In 2015, includes heavy-duty and specialty detergents, as well as we generated 79 percent of our global sales with fabric softeners, stain removers and laundry performance our top 10 brand clusters. A brand cluster comprises enhancers. The Home Care product portfolio includes individual global and local brands that share a household and specialty cleaners, air fresheners and common brand positioning internationally. ® ® ® ™ ® ® Persil ProClean Renuzit Sensitive Scents Purex plus Clorox2 detergent ® ® ® ™ ® ® Persil ProClean is a premium The Renuzit Sensitive Scents New Purex plus Clorox2 * detergent laundry detergent that delivers an collection is the first line of air combines the “Bright Clean, Smart exceptional clean. Available in three fresheners developed to perform Value” formula of Purex® detergent forms, Persil® ProClean® detergents without overwhelming sensitive noses with an extra powerful boost of ® with Pro-Power technology help and includes three spa-like scents: Clorox2 stain fighters! The highly remove tough stains and are great Pure Ocean Breeze™, Pure White Pear efficacious formula uses a special for everyday laundry. Discover the & Lavender™ and Pure Water Blossom enzyme boost that works on over ® ® ® ® Persil ProClean detergent that fits and Cucumber™ and are available in 100 stains. Purex plus Clorox2 your laundry routine. Experience a continuous action Adjustable Cone, detergent comes in both Original Premium Clean™ with Persil® Universal Powered Plug Scented Oil Fresh and Sunny Linen™ fragrances. ® ProClean detergent. Refills and an instant action Super Purex and Clorox2 – Together for the www.persilproclean.com Odor Neutralizer®trigger spray. Ultimate Clean™! www.renuzit.com www.purex.com *Clorox is a trademark of the Clorox company and used under license by the Dial Corporation. Henkel Facts and Figures 2015 11 Beauty Care Henkel markets a wide range of high-quality personal hairdressers and salons across North America. care products that help people look and feel their best. In 2015, we again set the standard in the market The Beauty Care sector is comprised of hair styling and with our innovation rate of over 45 percent. care products, soaps and body washes, lotions and Additional growth potential is being developed antiperspirants and deodorants. Henkel also provides through the expansion of strategic partnerships professional hair care and coloring products to with our customers. göt2b® mess-merizing™ Right Guard® Xtreme Odor Combat™ texturizing hairspray, sculpting Dial® Body Washes - Soothing Body Wash & Antiperspirant spritz & Messyfying™ putty Care & Silk & Magnolia Surge-scented protection with Odor The texturizing hairspray is the New Dial® Miracle Oil Body Wash Combat Complex – the patented ultimate styling tool to achieve is the first body wash with Micro technology attracts odor molecules touchable textures with a causal Oil Technology for a luxurious, and then surrounds and destroys them. natural finish. Unleash the artist clean-rinsing lather that leaves Right Guard® – For The Win®. in you for defined textures and skin feeling soft and smooth – www.rightguard.com tousled creations with the sculpting also available in liquid hand soap. spritz. The Messyfying™ putty will New Omega Moisture Body Wash, help you create edgy, disheveled enriched with omega-packed sea styles with texturized layers. berries, provides ultra moisture for www.got2b.com soft and healthy skin – available in bar soap, lotion, and Dial Complete® foaming hand soap. www.dialsoap.com 12 Henkel Facts and Figures 2015 Adhesive Technologies The Adhesive Technologies business unit is the leading Virtually every vehicle on the road is built with Henkel solution provider worldwide for adhesives, sealants and products, as are washing machines, audio speakers, functional coatings.