SpotlightNews

• Full year results 2022:
  • Group sales: 22.4 billion euros, organic growth* of 8.8 percent
  • Operating profit ‏(EBIT)**: 2.3 billion euros, -13.7 percent
  • EBIT margin**: 10.4 percent, -3.0pp
  • Earnings per preferred share ‏(EPS)**: 3.90 euros, -17.8 percent at constant exchange rates
• Proposed dividend on prior-year level: 1.85 euros per preferred share
• Good progress in implementing Purposeful Growth Agenda
• New business unit Consumer Brands live
• Sustainability driven forward in key areas
• Outlook for fiscal 2023: further growth expected
  • Organic sales growth: 1.0 to 3.0 percent
  • EBIT margin**: 10.0 to 12.0 percent
  • Earnings per preferred share ‏(EPS)**: between -10.0 and +10.0 percent ‏(at constant exchange rates)

Effective February 1, 2023, Mark Dorn ‏(49), currently Senior Vice President at Henkel with responsibility for the Adhesive Technologies business in the Asia-Pacific region, will be appointed Executive Vice President and member of the Management Board responsible for the Adhesive Technologies business unit. He succeeds Jan-Dirk Auris, who will leave the company at the end of January 2023 after around 35 years of successful service.

Henkel today announced that Jan-Dirk Auris, the Board member responsible for the Adhesive Technologies business unit, will conclude his longstanding and successful service to the company at the end of January 2023, following the joint decision to forego a prolongation of his existing contract, which is scheduled to expire at the end of 2023. He will support the handover of responsibility to his successor.

• Group reports organic sales growth of +11.3% to new all-time high of around 6 billion euros, nominal +17.3%, with all three business units contributing:
  • Adhesive Technologies achieves double-digit organic sales growth of +16.8%, nominal +22.6%
  • Beauty Care reports positive organic sales growth of +0.9%, nominal +8.4%
  • Laundry & Home Care generates significant organic sales growth of +7.3%, nominal +13.2%
• Double-digit sales growth in emerging markets, very strong growth in mature markets
• Merger of Laundry & Home Care and Beauty Care into Consumer Brands ahead of plan
• Outlook for fiscal 2022: Raised guidance for sales and earnings based on continued strong business performance

Henkel has successfully executed a Sustainable Deposit in Saudi Arabia. BNP Paribas, the European global banking group, acted to arrange this inaugural deposit for Henkel.

Effective September 30, 2022, Bruno Piacenza ‏(56), who has been Executive Vice President of Henkel's Laundry & Home Care business sector since 2011, will leave the Henkel Management Board, as already announced at the beginning of the year. Wolfgang König ‏(50), currently Executive Vice President for Beauty Care, will additionally assume responsibility for Laundry & Home Care with effect from October 1, 2022 and will also lead the newly created Henkel Consumer Brands business unit in the future.

• Implementation of new organizational structure in the Consumer Brands business unit ahead of plan
• Continued strong organic sales performance at Adhesive Technologies
• Outlook for organic sales growth for Henkel in fiscal 2022 increased: +5.5 to +7.5 percent ‏(previously +4.5 to +6.5 percent)
• Adhesive Technologies and Consumer Brands well positioned for capturing future growth and profit opportunities
• Confirmation of mid- to long-term financial ambition

• Group sales in the first half of 2022 grew organically by +8.9 percent to around 10.9 billion euros ‏(nominal +9.9 percent), driven by all business units and regions
• Earnings impacted, as expected, by drastic input cost headwinds:
  • Operating profit ‏(EBIT)* reaches 1,166 million euros ‏(-18.5%)
  • EBIT margin* at 10.7% ‏(-370 basis points)
  • Earnings per preferred share ‏(EPS)* at 1.95 euros, -20.8% at constant exchange rates
• Good progress in implementing the purposeful growth agenda and in merging the consumer businesses into Henkel Consumer Brands
• Outlook for fiscal 2022 updated:
  • Organic sales growth: increased to +4.5 to +6.5 percent
  • EBIT margin*: unchanged at 9.0 to 11.0 percent
  • Earnings per preferred share ‏(EPS)* at constant exchange rates: unchanged a decline in the range of -35 to -15 percent

As first adhesive manufacturer worldwide Henkel will introduce plastic-free blister packaging for its broad portfolio of consumer adhesives globally, starting with the Pritt glue sticks in early summer 2022. The new plastic-free blister packs are made from minimum 85 percent recycled paper and are fully recyclable. This solution will contribute to a reduction of 1,000 tons of plastics annually. The new packaging concept is in-line with the company´s sustainability ambition and packaging targets 2025 and aims to further enhance the recyclability of products towards a circular economy.

• Group sales increase organically by +7.1 percent to around 5.3 billion euros; nominal +6.1 percent:
  • Adhesive Technologies generates double-digit organic sales growth of +10.7 percent; nominal +11.6 percent
  • Beauty Care with slightly negative organic sales development of -1.2 percent; nominal -3.5 percent, due to implementation of planned portfolio measures
  • Laundry & Home Care records very strong organic sales growth of +4.9 percent; nominal +2.2 percent
• Emerging markets with double-digit sales growth, mature markets with strong growth
• Merger of Laundry & Home Care and Beauty Care business units into integrated multi-category platform Henkel Consumer Brands:
  • Strengthening growth momentum and margin profile in the consumer business
  • Significant synergies: around 500 million euros gross savings targeted in the mid term
  • First phase of measures to be implemented by the end of 2023: around 250 million euros annualized net savings expected, around 2,000 jobs affected worldwide
  • Portfolio measures for businesses with total annual sales of up to 1 billion euros under review
• Outlook for fiscal 2022 updated on April 29
• Clear commitment to mid- to long-term financial ambition

The winning students in the Forscherwelt Science Lab competition have been announced at the German Pavilion at Expo 2020 Dubai. In an award ceremony led by Csaba Szendrei, President Henkel GCC last Thursday; Aliya Abdul Gafoor from Woodlem Park School, Riya Wynn from Gulf Indian High School, and Amaal Hamad from GEMS FirstPoint School, were celebrated for their creative designs, which stood out to the judges amongst the submissions from over 1,000 students aged 7 to 11 from 14 schools across Dubai.

• Good business performance in 2021 in challenging market environment:
  • Group sales reach 20.1 billion euros, +7.8 percent organic growth
  • Operating profit* increases to 2.7 billion euros, +4.2 percent
  • EBIT margin* on prior-year level: 13.4 percent
  • Earnings per preferred share ‏(EPS)*: 4.56 euros, +9.2 percent adjusted for currency effects
  • Good free cash flow of 1.5 billion euros, net financial position significantly improved
• Proposed dividend on prior-year level: 1.85 euros per preferred share
• Outlook 2022 and mid- to long-term financial ambition unchanged
• Consistent implementation of agenda for Purposeful Growth since 2020
• Key measures to take strategic growth agenda to next level:
  • Integration process of Laundry & Home Care and Beauty Care to one multi-category platform with around 10 billion euros sales started
  • Further portfolio optimization planned in the consumer goods business
  • Share buyback program with a volume of up to 1 billion euros started
  • Venture Fund II with a total volume of 150 million euros
  • New sustainability strategy and ambitions

• Strong performance and improvements across key dimensions in 2021
• Evolved sustainability strategy: 2030+ Sustainability Ambition Framework
• Introducing new ambitions, including moving up climate positivity in production from 2040 to 2030

• Creating one multi-category platform for growth with around 10 billion euros sales
• Continued optimization of consumer portfolio: clear focus on core brands and businesses with attractive growth and margin potential and a stronger basis for M&A across consumer space
• Significant synergies and efficiency gains expected through the combination
• Launch of share buyback program of up to 1 billion euros: leverage strong balance sheet and cashflow, optimize the capital structure and signal strong confidence in the future potential for profitable growth
• Preliminary results for 2021 published: Organic sales growth ‏(OSG) of +7.8 percent, EBIT margin* of 13.4 percent and earnings per preferred share* ‏(EPS) growth of +9.2 percent ‏(at constant exchange rates)
• Outlook for 2022: OSG: 2 to 4 percent, EBIT margin*: 11.5 to 13.5 percent, EPS* development: -15 to +5 percent ‏(at constant exchange rates), reflecting high level of market uncertainty and volatility
• New mid- to long-term financial ambition for Henkel: OSG of 3 to 4 percent, EBIT margin* of around 16 percent and mid- to high-single-digit percentage EPS* growth ‏(at constant exchange rates, incl. M&A)

Fakeeh University Hospital, world-class healthcare and academic facility in the UAE signed a Memorandum of Understanding ‏(MoU) with Henkel to support employees’ health. Fakeeh University Hospital is thrilled to be providing services including access to 24/7 urgent care, home healthcare services, and travel vaccinations.