HENKEL GLOBAL coporate strategies.ppt

HenkelStrategy

TownhallMeetings

Presenter: Bruno Piacenza

Henkel: Roadmap of long-term Strategy

Who will we be in 2016?

How do we get there?Where do we

want to go?What’s our starting point?Where are

we coming from?

2 Henkel Strategy2

We set a clear strategic direction & ambitious targets

3-5%

14%

> 10%

Org. Sales Growth (average)

EBIT Margin (2012)*

EPS-Growth (CAGR)*

* adjusted

3 Henkel Strategy

All strategic priorities were pursued consistently

4 Henkel Strategy4

Strong financial performance

Efficiency gains

Strengthened global footprint

Focus on brands & innovations

Customer focusLeadership in

sustainability

Performance culture

Improved diversity

Our progress is built on various drivers…

…and will continue

Henkel Strategy5

2008

Shift to Emerging Regions / Strong Mature MarketsShift to Emerging Regions / Strong Mature Markets

2012

Continuous efficiency gains incl. Shared ServicesContinuous efficiency gains incl. Shared Services

Shift of Manufacturing FootprintShift of Manufacturing Footprint

Strengthening of Top Brands / Reduction of BrandsStrengthening of Top Brands / Reduction of Brands

Vision & ValuesVision & Values

Sustainability Strategy Sustainability Strategy

Performance & Talent Management, “Vienna”Performance & Talent Management, “Vienna”

Targets 2016 & StrategyTargets 2016 & Strategy

Thank you!

We are on track! As one company – ONEHenkel!

6 Henkel Strategy





we coming from?

Henkel Strategy7

Which megatrends will shape our markets

in the years to come?

How well is our portfolio positioned

against these trends?

What actions are necessary to capitalize on

these trends?

Henkel Strategy

1

2

3

Galileo – Core questions of our strategic review

8

Overview of megatrends and their implications

Trend Description

Consolidation of suppliers, manufacturers and buyers

Shift of market growth to Emerging Markets

Rapidly changing markets & faster transfer of information

Trend Implication

Increasing importance of competitive size

Increasing importance of Emerging Market presence

Increasing importance of operational excellence in processes and structures

Henkel Strategy9

Long-term market assessment

Active in markets of significant size

Markets are attractive in terms of profitability and offer long-term growth potential

Strong potential to expand our businesses

Strong ability to win in attractive markets

Henkel Strategy10

Leverage full potential in all businesses

11 Henkel Strategy

Consumer Business Industrial Business





we coming from?

Henkel Strategy12

Overview of megatrends and their implications

Henkel Strategy13

Consolidation of suppliers, manufacturers and buyers

Shift of market growth to Emerging Markets

Rapidly changing markets & faster transfer of information

Trend Description Trend Implication

Increasing importance of competitive size

Increasing importance of Emerging Market presence

Increasing importance of operational excellence in processes and structures

EM sales

Total sales

EPS growth

Performance Dimensions 2016

NES [bn €]*

Henkel’s financial targets 2016

14 Henkel Strategy

* Incl. continuous portfolio optimization (without major divestments and acquisitions)

~20

14.1

20

~3.5 bn €

~2.5 bn €

201620122008

[bn €]


15 Henkel Strategy


Step-change in scale

Outperform – Strong investments in categories

Globalize – Focus on regions with high potential

NES [bn €]*

EM sales [bn €]*


16 Henkel Strategy


~10

5.2

~3 bn €

~2 bn €

10

201620122008

[bn €]


17 Henkel Strategy


Accelerate growth in Emerging Markets

Go deep in existing Emerging Markets

Selectively enter country white spots

EM sales [bn €]*

EPS CAGR [%]*


18 Henkel Strategy

[€]

>10%

10%

2016201220082.19

* Incl. continuous portfolio optimization (without major divestments and acquisitions); adjusted per preferred share


19 Henkel Strategy

* Incl. continuous portfolio optimization (without major divestments and acquisitions); adjusted per preferred share

Balanced value creation through top & bottom line growth

Standardization & complexity reduction along entire value chain to drive profitability

Maintain strong cash orientation & financial discipline to secure “A flat/A2”-rating

EPS CAGR [%]*


NES [bn €]* EM sales [bn €]* EPS CAGR [%]*

Henkel Strategy20

* Incl. continuous portfolio optimization (without major divestments and acquisitions); EPS: adjusted per preferred share

Our Strategy is based on our Vision & Values

Customers People Financials

Sustainability Family

Henkel Strategy

A global leader in brands and technologies

21

Leading position

Global footprint

Leading processes

Strong & diverse team

Leading financial performance

Key success factors to achieve our Vision

Henkel Strategy


22

Leading position

Global footprint

Leading processes

Strong & diverse team

Leading financial performance

Key success factors to achieve our Vision

Henkel Strategy

#1 choice for customers & consumers

Innovation leader

Powerful brands

Balanced portfolio


23

outperform

globalized

simplified

inspired

We will

as a

with

and a highly

our competition

company

operations

team!

Henkel Strategy

Henkel Strategy24

outperform

globalized

simplified

inspired

We will

as a

with

and a highly

our competition

company

operations

team!

Outperform Globalize

Simplify Inspire

A global leader in brands

and technologies

Henkel Strategy

Henkel Strategy25

Henkel Strategy

Leverage potential in categories

OutperformFocus on regions

with high potential

Globalize

Drive operationalexcellence

SimplifyStrengthen our

global team

Inspire


and technologies

Henkel Strategy26

Active portfolio mgmt.

Leverage top brands

Powerful innovations

Focus on customers

Globalize

Simplify Inspire

OutperformOutperform

Henkel Strategy


and technologies

Henkel Strategy27

Outperform – Leverage potential in categories

Core Categories

Continuous investment in top positions

Investments in category and new segment expansion

Value Categories

Active Portfolio Management

Growth Categories

Leverage profit potential with adequate investment

Divest/exit businesses (~500 m €)

Henkel Strategy28

Outperform – Build on strong base

Consistent innovationprocess

Trend-based innovations

Customer relationship management

Consumer proximity

Focused & balanced brand portfolio

Strong growth of top brands

Brand consolidation

Brands Customers Innovations

Henkel Strategy29

Accelerate sales growth with top brands

Strong growth driven by innovations & further roll-out of global brands Further portfolio alignment towards umbrella brands

Strong growth driven by innovations & further roll-out of global brands Further portfolio alignment towards umbrella brands

Henkel Strategy30

in % of sales

20162008

Top10

Other

38%

62%

46%

54%

~60%

~40%

2012*

* estimate

https://upload.wikimedia.org/wikipedia/de/2/2a/Schwarzkopf_(Haarkosmetik)_logo.svg

Consistently drive trend-based innovations

AccessibleLuxury

Convenience &Superior Quality

Performance &Sustainability

Henkel Strategy31

Henkel Strategy

New R&D sites fostering consumer proximity

Planned new site

Significant expansion of R&D centers in all emerging regions Further leverage local competence

Significant expansion of R&D centers in all emerging regions Further leverage local competence

JohannesburgJohannesburg

Moscow*Moscow*

DubaiDubaiToluca*Toluca*

Sao PauloSao Paulo

PunePune

SeoulSeoul

* Significant expansion

32

Beauty Care

Meet-your-Customer

Center

Actively deploy customer focus

Laundry & Home Care

Shopper

Marketing

Adhesive Technologies

Technology &

Design Partnerships

Henkel Strategy33

Leverage strength in

Mature Markets

Expand footprint in

Emerging Markets

Globalize

Simplify Inspire

Outperform


and technologies

Henkel Strategy

Globalize

Henkel Strategy34

Globalize – Focus on regions with high potential

Continuation of profitable growth with strong cost focus

Acceleration of growth in existing Emerging Markets

Enter country white spots in selective Emerging Markets

Mature Markets:Leverage Strengths

Emerging Markets:Go Deep

Emerging Markets:Enter White Spots

Henkel Strategy35

Mature Markets – Further leverage strengths

Outperform our markets

Increase brand investments

Continue cost focus

Outperform our markets

Increase brand investments

Continue cost focus

2016 Higher profit contribution

More top positions

2016 Higher profit contribution

More top positions

Henkel Strategy36

Emerging Markets – Accelerate growth

Henkel Strategy

2016: Balanced EM footprint with 12 EM countries in Henkel Top 20

TurkeyRussia

Poland

Mexico

Korea

EgyptChinaBrazilAlgeria

Ukraine

India

UAE

37

Henkel Strategy

Henkel Strategy


Simplify Inspire


and technologies

38

Increase capex spend by >40%* to ~2 bn €

Strong focus on IT with investment of ~140 m €

Structural shift to Emerging Markets

Strengthen top brands and innovations via higher

marketing investments

Invest in our businesses

* total 2013-2016 vs. 2009-2012

Henkel Strategy39

Acquisitions

Boosting GrowthIn Line with Strategy

Adhesives: Technology leadership

Laundry & Home Care/Beauty Care: Regions & categories

Restrictive evaluation and selection process

Centralized decision and execution

Integrated part of our overall strategy

Clear prioritization of categories and regions

Restrictive Selection

Henkel Strategy40

Cost efficiency

Best-in-class processes

Strong IT focus

Globalize

Simplify Inspire

Outperform


and technologies

Henkel Strategy

Simplify

Henkel Strategy41

Simplify – Drive operational excellence

IT as an enabler to drive performance

Simplified & standardized global IT structure

Foster leading sourcing

Continued expansion of shared services

IT FocusCost Efficiency Best-in-Class Processes

Further improve admin costs

Location footprint optimization

Further reduce NWC

Henkel Strategy42

Shared services expansion: >3,000 employees

Newly established Business Process Outsourcing hub in Bangalore/India Newly established Business Process Outsourcing hub in Bangalore/India

Bratislava

Mexico City

Bangalore Manila

BPO: India since 09/12

Captive SSCs

Hubs for Arabic speaking region & Greater China/N-E Asia Hubs for Arabic speaking region & Greater China/N-E Asia

Henkel Strategy43

Invest ~140 m€ in IT until 2016

# of processes# of processes

Horizon

~800

Today

~2,200

Past

>20,000

Reduce complexity & leverage one IT platform

Supply Chain Mgmt.APO

SSC IT SolutionsGlobal integration

Promotion SpendPlanning & management

Global Henkel IT Platform: Horizon (SAP)

44 Henkel Strategy

Strong leadership

Talent & performance

focus

Diverse teams

Globalize

Simplify Inspire

Outperform


and technologies

Henkel Strategy

Inspire

Henkel Strategy45

Inspire – Strengthen our global team

DiversityTalent & Performance

Attract the best talents

Reward performance

Set clear expectations

Develop strong leaders

Leverage diversity as key success factor

Leadership

Henkel Strategy46

Diverse teams as key success factorNationality/Culture

Gender

Age/Seniority

Foster internationality in our teams

Increase female share by systematic career development

Leverage experience of senior colleagues

47 Henkel Strategy

Strong Impact around the GlobeGlobal Roadshow of Board Members

26 Locations26 Locations26 Locations26 Locations 22 Countries22 Countries22 Countries22 Countries

Bangkok Barcelona Bratislava Breda Bridgewater

Dubai Düsseldorf Istanbul London Manila

Mexico City Milano Moscow Mumbai Osaka

Paris Rocky Hill Sao Paulo Scottsdale Seoul

Shanghai Singapore Stockholm Tokyo Vienna Yokohama

Henkel Strategy48

outperform

globalized

simplified

inspired

We will

as a

with

and a highly

our competition

company

operations

team!

Summary: Henkel Strategy

Henkel Strategy49

outperform

globalized

simplified

inspired


Simplify Inspire


and technologies

Summary: Henkel Strategy

Henkel Strategy50

Summary: Strategic Framework


Customers People Financials Sustainability FamilyValues

Vision

Targets 20 bn € SALES

10 bn €EM SALES

10 %EPS CAGR

Strategy Outperform Simplify InspireGlobalize

Vision

Values

Strategy

Targets

Henkel Strategy51

Thank you!

Henkel Strategy52

HENKEL GLOBAL coporate strategies.ppt

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