The value added statement clearly shows that large portions of the sales revenue flow back into the global economy: Most of the value added – 60.0 percent – went to the employees. Central and local government received 9.1 percent in the form of taxes, and lenders received 6.9 percent in the form of interest. 5.8 percent of the value added went to shareholders as dividends. The non-appropriated value added is available for investment and therefore for financing the future growth of the Company.

Emerging and developing countries, in particular, expect multinationals such as Henkel to contribute to their economic development, in addition to paying salaries and taxes. Three categories are of special importance for us in this context:

Through our production and administrative sites around the world, we stimulate the economic development at the local level. Over 30 percent of our workforce of about 55,000 are employed in the growth markets of Eastern Europe, Africa, the Middle East, Asia-Pacific, and Latin America. In many places, therefore, we are a major employer and local business partner. In 2007, we strengthened our regional involvement by the opening of regional steering centers in China and Egypt. The building erected for Henkel in Shanghai, China, was created as new headquarters for all business activities in China and the Asia-Pacific region. The building can accommodate 700 employees and includes offices, laboratories, and training facilities for about 400 participants. The new regional center of the Laundry & Home Care business sector in Cairo, Egypt, enables us to tailor our business activities specifically to North African market and consumer needs.

Through the transfer of knowledge and technologies, we encourage our employees and customers in all parts of the world to assume responsibility and act accordingly. The central elements include modern management methods and the introduction of safe products and production processes. In 2007, training programs for our employees ranged from international research and development conferences for our product developers to regional workshops on financial reporting in accordance with international standards. Other examples include regular training courses for our sales and distribution staff to deepen their knowledge of the sustainability performance of Henkel’s industrial products. We also organize targeted international job rotation programs. In 2007 alone, some 400 employees performed jobs outside their native country.

With regard to production, the focus in 2007 was on the assessment of potential safety, health and environmental risks in our production facilities. With the help of a special training program, we instructed employees worldwide in how to identify and assess risks, and how to initiate corrective actions. By the end of 2007, a total of seven training courses had been held in Asia, Europe, North America, and South America.

Another key factor for knowledge transfer is customer training. In Central and Eastern Europe, for example, Henkel Ceresit has already established 140 training centers for craftsmen. In cooperation with education ministries and state vocational schools, new quality standards are being developed step by step for vocational and advanced training. Similarly, in 2007 the Schwarzkopf Academy (ASK) of Schwarzkopf Professional trained more than 220,000 hairdressers in 52 countries in cutting techniques, fashion advice, and management subjects. With this globally leading system of knowledge transfer in the hairdressing sector, we contribute to the establishment of the first binding training standards for hairdressers in many countries, especially in Asia and South America.

Emerging and developing countries will be the main drivers of economic development in the coming years. Ensuring that economic development proceeds in a socially balanced manner will be a major challenge to society. In order to do justice to the differing needs throughout the world, we pursue different brand strategies according to individual market situations:

• Globally uniform products: Wherever customers and consumers around the world have the same needs and expectations, we offer globally uniform products. Examples include the internationally identical demands made on an instant adhesive or on our industrial adhesives.
• Locally adapted product offerings: We adapt packaging units and distribution channels to local conditions, in order to make our products and our quality accessible to the broadest possible group of people. Customers from lower income segments for example purchase small units whenever they have some funds to spare. We consider this when planning packaging units and prices. For example, our dishwashing detergent Pril Liquid is available as a single-use pack in India. For 1 rupee – equivalent to 1.5 Euro cents – customers can buy a 6 milliliter pack of Pril “Lime and Vinegar”. In the South American markets we offer shampoos and deodorant creams in small sales units of 10 to 20 milliliters. Products that meet the needs of consumers in the lower income brackets not only have an enormous economic potential, but also make a positive social contribution in terms of, for example, domestic hygiene and health.
• Locally adapted product performance: Different regional circumstances may also require adjustments to our product formulations and performance. In North Africa and Latin America, for example, the scarcity of water necessitates careful use of this limited resource. Henkel has therefore developed and introduced a fabric softener with special ingredients that enables washing foam to be rinsed out very easily by hand. Other examples are our craftsmen and DIY products in Eastern Europe. Since the local building materials often differ from those in Western Europe, we offer locally adapted products such as the tile adhesive CM9 or the self-smoothing floor leveling compound Thomsit DA. Cultural differences are also taken into account during product development. In many North African countries and in India, there is a tradition of wearing white garments. Our laundry detergents Nadhif for the North African market and Mr. White for the Indian market therefore contain ingredients that give the laundry a radiant white appearance.