Henkel takes another step in combining attractive corporate financing instruments with progress in sustainability: As the first company globally, Henkel concluded a plastic waste reduction bond. The proceeds from this bond, a private placement with Japanese insurance companies Dai-ichi Life and Dai-ichi Frontier Life, will be specifically allocated to projects and expenditures related to Henkel’s activities to reduce plastic waste. The bond has a total volume of 70 million US dollars and a maturity of five years.

At the virtual Annual General Meeting of Henkel AG & Co. KGaA on June 17, 2020, the shareholders approved all items on the agenda. In particular, they approved the proposed dividend resolution and the proposals for new elections to the corporate bodies. In total, about 90 percent of the voting capital stock was represented.

• Dividend proposal on prior-year level: 1.85 euros per preferred share
• New elections to the Supervisory Board and Shareholders’ Committee
• Four new members proposed for election to corporate bodies
• Robust performance despite corona crisis
• Clear growth agenda for the future
• Ambitious targets for climate protection and avoiding plastic waste
• Commitment to diversity and against racism

• Group sales impacted by COVID-19 pandemic: nominal -0.8%, organic -0.9%
• Adhesive Technologies sales decrease in sharply declining industrial business environment: nominal -4.3%, organic -4.1%
• Beauty Care sales lower due to significantly negative Hair Salon business: nominal -2.6%, organic -3.9%
• Laundry & Home Care posts very strong increase in sales: nominal 5.3%, organic 5.5%
• Differentiated regional sales development: emerging markets 2.2%, mature markets -2.8%

The management board of Henkel AG & Co. KGaA in accordance with the relevant governance bodies decided to conduct the company’s Annual General Meeting on 17 June 2020.

As the dynamic development of the COVID-19 pandemic impacts the global economy, a reliable and realistic evaluation of the future business performance of Henkel is currently not possible. As a consequence, the Management Board of Henkel AG & Co. KGaA has decided today that the forecast for fiscal 2020 published in the Annual Report 2019 will no longer be upheld.

Due to the spread of the coronavirus, Henkel will not be able to hold its Annual General Meeting on April 20, 2020 at the Düsseldorf Congress Center as planned.

• 2019 results, impacted by slowing economic growth and increased investments in consumer businesses and digitalization across the company:
  • Sales rise by 1.1% to 20,114 million euros, organic sales stable
  • Adjusted* EBIT margin at 16.0% ‏(-1.6 pp)
  • Adjusted* earnings per preferred share ‏(EPS) reach 5.43 euros, nominal -9.7%, at constant exchange rates -10.1%
  • Free cash flow: 2,471 million euros ‏(+554 million euros)
  • Dividend** on prior-year level: 1.85 euro per preferred share
• Outlook for 2020: further step-up in growth investments in an uncertain industrial market environment
  • Organic sales growth: 0 – 2%
  • Adjusted* EBIT margin: around 15%
  • Adjusted* EPS: decrease in the mid- to high single-digit percentage range at constant exchange rates

• Setting future direction with new strategic framework
  • Rigorously shape a winning portfolio
  • Accelerate impactful innovations with increased investments
  • Boost sustainability based on strong track record with ambitious targets
  • Transform Digital into a customer and consumer value creator
  • Reshape operating models to be lean, fast and simple
  • Strengthen collaborative culture with empowered people
• Growth agenda underpinned by mid- to long-term financial ambition
  • Organic sales growth of 2 – 4%
  • Adjusted* earnings per preferred share growth in mid- to high single-digit percentage range, at constant exchange rates
  • Focus on free cash flow expansion

• Strong progress towards 2020 sustainability targets
• New packaging targets for 2025 to avoid and reduce plastic waste
• Become a climate-positive company by 2040