Fillable Printable Company Profile Example

Company Profile Example

Henkel AG & Co. KGaA page 1

Company profile

Henkel was founded in 1876. People around the world trust Henkel’s brands and technologies.

In the fiscal year 2015, the company reported sales of approx. 18 billion euros and an operating

profit of 2.9 billion euros (adjusted for one-time gains/charges and restructuring charges). The

DAX-30 company has its headquarters in Düsseldorf, Germany. Henkel employs about 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 company’s

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 2015, the Laundry & Home Care business unit

generated sales of 5,137 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 world’s leading suppliers of hair-salon products.

In 2015, the business unit generated sales of 3,833 million euros, 21 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 2015, the business unit generated sales of 8,992 million euros,

50 percent of total company sales.

Henkel AG & Co. KGaA page 2

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.

Henkel AG & Co. KGaA page 3

• 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.