Henkel Company Profile

Company profile
Henkel was founded in 1876. People around the world trust Henkels brands and technologies.
In the fiscal year 2014, the company reported sales of 16.4 billion euros and an operating profit
of 2.6 billion euros (adjusted for one-time gains/charges and restructuring charges). The DAX30 company has its headquarters in Dsseldorf, Germany. Henkel employs almost 50,000
people worldwide, more than 80 percent of whom work outside of Germany. Henkel is thus
one of the most international German companies.
Three globally operating business units

Laundry & Home Care has always played an important role for Henkel: The companys
success story started with a product from this business unit. The Laundry Care business
includes
heavy-duty
and
specialty
detergents,
fabric
softeners,
laundry-
performance enhancers, and other fabric-care products. The Home Care portfolio includes
hand- and automatic-dishwashing products, cleaners for bathroom and WC applications, and
household, glass and specialty cleaners. Air fresheners and insecticides for household
application are offered in select regions. In 2014, the Laundry & Home Care business unit
generated sales of 4,626 million euros, 28 percent of total company sales.
Products from the Beauty Care business unit are available worldwide. Beauty Care stands for
brand-name products in the fields of hair colorants, hair styling, hair care, toiletries, skin care,
and oral hygiene. Beauty Care is one of the worlds leading suppliers of hair-salon products.
In 2014, the business unit generated sales of 3,547 million euros, 22 percent of total company
sales.
The Adhesive Technologies business unit is the world market leader in adhesives, sealants
and functional coatings for consumers, craftsmen and industrial applications. Henkel offers a
multitude of applications to satisfy the needs of different target groups: consumers, craftsmen,
and industrial businesses. In 2014, the business unit generated sales of 8,127 million euros,
49 percent of total company sales.
Henkel AG & Co. KGaA
page 1
Our vision
A global leader in brands and technologies our vision gives us a sense of direction and
destination. It captures our aspiration of being the best in everything we do. It is the basis for
what we all stand for as one company. Our vision and our values guide the choices and
decisions our employees make every day.
Strategy
Our strategy is built on the foundation of our corporate values and will drive our successful
development in the coming years in order to achieve our long-term vision for Henkel:
to become a global leader in brands and technologies.
In order to steer the focus of the entire organization toward our strategy and ensure its
successful implementation, we have defined four strategic priorities: Outperform Globalize
Simplify Inspire.
The basis for our strategy was a detailed analysis of major long-term market trends. We
identified three megatrends, which will affect our different businesses over the next years:
consolidation, emerging markets and speed.
page 2
Consolidation in our supplier, manufacturer and customer base as well as in our

competitive environment will continue. Size will become a critical success factor in the
future. Consequently, we need to grow our businesses.
We expect the shift of growth from mature to emerging markets to continue. As a result,
we need to expand our already strong footprint in these markets over the coming years.
We anticipate highly dynamic market evolution, and faster decision-making by suppliers,

customers and competitors. In addition, further digitalization will lead to changes in our
market environment. We therefore need to continue simplifying our processes and
increasing our operational excellence.
Financial targets 2016

We have defined ambitious financial targets for our company. By 2016, Henkel aims to grow
sales to 20 billion euros, of which 10 billion euros will come from emerging markets. For
adjusted earnings per preferred share (EPS), Henkel targets a compound annual growth rate
(CAGR) of 10 percent between now and 2016. These financial targets are based on organic
growth, including continuous portfolio optimization, that is, small and mid-sized acquisitions as
well as divestment or discontinuation of nonstrategic activities. Potential major acquisitions or
divestments are not built into our financial targets.
page 3

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Company profile

Three globally operating business units

Henkel AG & Co. KGaA

Henkel AG & Co. KGaA

Consolidation in our supplier, manufacturer and customer base as well as in our

We anticipate highly dynamic market evolution, and faster decision-making by suppliers,

Financial targets 2016

Henkel AG & Co. KGaA

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