Strategy 2020+

We have a clear long-term strategy which is based on our purpose, vision, mission and values. It is the foundation which helps us successfully shape the future of our company.

To ensure sustainable profitable growth through to 2020 and beyond, Henkel has defined four strategic priorities: drive growth, accelerate digitalization, increase agility and fund growth. Our balanced and broadly diversified portfolio with strong brands, innovative technologies and leading positions in attractive markets and categories provides a strong foundation. Our passionate global team is united in a strong corporate culture with shared values.

Building on its strong foundation, Henkel is continuing to drive sustainable profitable growth. At the end of 2016, we presented our ambitions and strategic priorities that will drive the company through to 2020 and beyond.

Our ambitions

We have defined our ambitions in a very volatile market environment that is characterized by increasing globalization, accelerating digitalization, rapidly changing markets, and an increasing relevance of resource scarcity and social responsibility.

We want to become more customer- and consumer-focused and make the company even more innovative, agile and digital, in both our internal processes and our customer-facing activities. In addition, we are further promoting sustainability in all our business activities.

To underpin Henkel’s continued commitment to generate sustainable profitable growth and attractive returns, in January 2019 we expanded our mid- to long-term financial ambitions through to 2020 and beyond:

  • We are aiming to achieve organic sales growth of 2 to 4 percent.
  • For adjusted earnings per preferred share, we are targeting growth in a mid- to high-single-digit percentage range based on constant exchange rates.
  • We are aiming to further expand our free cash flow.

In addition, we plan to continue pursuing compelling growth opportunities while maintaining our focus on strict cost discipline and margin development.

Alongside organic growth, acquisitions will continue to be an integral part of our strategy. Our assessment of potential acquisitions is based on whether the targets are available, fit Henkel’s strategy, and are financially attractive. The focus in the Adhesive Technologies business unit is on expanding technology leadership, whereas in the Beauty Care and Laundry & Home Care business units we are striving to strengthen our categories in the relevant countries.

Growth in revenues after adjusting for effects arising from acquisitions, divestments and foreign exchange differences – i.e. “top line” growth generated from within.

Financial Glossary Schließen

Cash flow actually available for acquisitions, dividend payments, the reduction of borrowings and contributions to pension funds.

Financial Glossary Schließen

Our Strategic Priorities

  • Drive growth
  • Accelerate digitalization
  • Increase agility
  • Fund growth

Driving growth in mature and emerging markets is a key Strategic priority for Henkel. In order to achieve this, we are implementing a range of targeted initiatives to further deepen the relationships with customers and consumers worldwide, strengthen our leading brands and technologies, develop exciting innovations and services, and capture new sources of growth.

Accelerating digitalization helps us to successfully grow our business, strengthen the relationships with our customers and consumers, optimize our processes and transform the entire company. We are implementing a range of initiatives to drive our digital business, leverage Industry 4.0, and eTransform the organization.

In a highly volatile and dynamic business environment, increasing the agility of the organization is a critical success factor for Henkel. This requires energized and empowered teams, fastest time-to-market as well as smart and simplified processes.

In order to fund growth, we are implementing new approaches to optimize resource allocation, focus on “Net Revenue Management,” further increase efficiency in our structures, and continue to expand our Global Supply Chain organization. Together, these initiatives will contribute to further improving profitability and enable us to fund our growth ambitions for 2020 and beyond.

Additional Information