April 11, 2016

Annual General Meeting 2016

Henkel confirms outlook for 2016

•	Proposed dividends at a new high
•	Confirmation of outlook for the fiscal year 2016
•	Priority of EPS growth in targets for strategy cycle 2016

Düsseldorf – At Henkel’s Annual General Meeting today, CEO Kasper Rorsted reviewed the company’s excellent performance in the fiscal year 2015. “2015 was a record year for Henkel. Despite a difficult economic environment, we achieved excellent results. We are well on track to meet our main targets for 2016, and we have laid a strong foundation for Henkel’s future.”

Rorsted also highlighted the progress made in implementing the strategy 2016 and provided specific examples on how Henkel had successfully pursued its four strategic priorities: Outperform – Globalize – Simplify – Inspire.

Simone Bagel-Trah, Chairwoman of the Shareholders’ Committee and the Supervisory Board, thanked the Management Board and all employees for their great commitment in 2015.

Proposed dividends at a new high
The proposed dividends for both share classes increased by 16 cents to 1.47 euros per preferred share and 1.45 euros per ordinary share. This corresponds to a payout ratio of approximately 30 percent. The dividends have thus been taken to a new high, with an increase of more than 12 percent compared to the prior year.

Confirmation of outlook for the fiscal year 2016
Looking at the current fiscal year, Rorsted emphasized the high degree of uncertainty in the markets: “2016 will be another challenging year. Volatility on the foreign exchange markets will remain, and major currencies, particularly in the emerging markets may further depreciate.”

At the same time – and despite the difficult environment – Rorsted confirmed the outlook for 2016. “We expect organic sales growth of 2 to 4 percent for the full fiscal year 2016. We expect our EBIT margin to increase to approximately 16.5 percent and adjusted earnings per preferred share to grow between 8 and 11 percent.”

Strategy and financial targets 2016: EPS growth has priority
Henkel defined ambitious targets in 2012. By the end of 2016, Henkel aims to generate annual sales of 20 billion euros, with 10 billion euros coming from mature markets and from emerging markets respectively. In addition, Henkel aims to increase adjusted earnings per preferred share by an average of 10 percent per year between 2013 and 2016.

In the period from 2013 to 2015, Henkel delivered an average annual growth in adjusted earnings per preferred share of 9.7 percent. Rorsted reconfirmed the commitment to achieve the 10 percent CAGR target for the current strategy cycle by the end of 2016. “For us the key target is adjusted earnings per preferred share,” he said. “It is this figure that shows how well we have coped with the volatility and crises in our markets and from which the dividends to our shareholders are derived.”

Henkel has also made significant progress over the last three years with respect to its sales targets. In 2015, sales in mature markets exceeded 10 billion euros for the first time. However, currency fluctuations had a negative effect on sales in emerging markets. “In total, we faced substantial currency headwinds over the last three years – primarily in the emerging markets – of around 700 million euros,” Kasper Rorsted said. “Therefore, from today’s perspective the sales target of 20 billion euros appears unlikely to be met exactly.”

First quarter results of 2016 will be published with the quarterly report on May 19.

Corporate management bodies and shareholders thanked
In his last statement to the company’s Annual General Meeting as Henkel’s CEO, Kasper Rorsted thanked the Supervisory Board and the Shareholders’ Committee for their constructive cooperation over the years, and the shareholders for their confidence. He expressed a special gratitude to Simone Bagel-Trah for her trust and support, and she in turn thanked him for his successful service at Henkel. 

Simone Bagel-Trah also introduced Hans Van Bylen, who will take over as the new CEO as of May 1. Hans Van Bylen has been with Henkel for more than 30 years, 11 of which as a member of the Management Board. In addition, she welcomed the newly appointed Management Board member Pascal Houdayer, who will assume responsibility for the Beauty Care business unit effective May 1.

For more information on the Annual General Meeting, please visit our website:

Investors & Analysts
http://www.henkel.com/investors-and-analysts/annual-general-meeting/annual-general-meeting2016

Press & Media
http://www.henkel.com/press-and-media/press-releases-and-kits/2016-04-11-annual-general-meeting-2016/664238
•	AGM live webcast (from 10 a.m.)
•	Statement by Kasper Rorsted (from 10.15 a.m.)
•	Press photos of the AGM (from noon) 
•	News release on the results of the AGM (in the course of the afternoon)

Henkel is active worldwide with leading brands and technologies in three business units: Laundry & Home Care, Beauty Care and Adhesive Technologies. Founded in 1876, Henkel holds globally leading market positions in both the consumer and industrial businesses with well-known brands such as Persil, Schwarzkopf and Loctite. Henkel employs about 50,000 people and reported sales of 18.1 billion euros and adjusted operating profit of 2.9 billion euros in fiscal 2015. Henkel’s preferred shares are listed in the German stock index DAX.

This document contains forward-looking statements which are based on the current estimates and assumptions made by the corporate management of Henkel AG & Co. KGaA. Forward-looking statements are characterized by the use of words such as expect, intend, plan, predict, assume, believe, estimate, anticipate, forecast and similar formulations. Such statements are not to be understood as in any way guaranteeing that those expectations will turn out to be accurate. Future performance and the results actually achieved by Henkel AG & Co.  KGaA and its affiliated companies depend on a number of risks and uncertainties and may therefore differ materially from forward-looking statements. Many of these factors are outside Henkel’s control and cannot be accurately estimated in advance, such as the future economic environment and the actions of competitors and others involved in the marketplace. Henkel neither plans nor undertakes to update forward-looking statements.

Contact

Investors & Analysts	Press & Media

Renata Casaro	Lars Witteck
Phone:	+49 211 797 - 1631	Phone:	+49 211 797 - 2606
Email: 	renata.casaro@henkel.com	Email:	lars.witteck@henkel.com

Dr. Eva Sewing	Wulf Klüppelholz
Phone:	+49 211 797 - 5277	Phone: 	+49 211 797 - 1875
Email:	eva.sewing@henkel.com	Email:	wulf.klueppelholz@henkel.com

Christopher Huesgen	Hanna Philipps
Phone:	+49 211 797 - 4314	Phone:	+49 211 797 - 3626
Email: 	christopher.huesgen@henkel.com	Email:	hanna.philipps@henkel.com

Ewa Penczek
Phone:	+49 211 797 - 7151
Email: 	ewa.penczek@henkel.com

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