Henkel AG & Co.

KGaA
DB:HEN3

Shareholder/Analyst Call
Monday, April 13, 2015 9:00 AM GMT

CALL PARTICIPANTS

PRESENTATION

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HENKEL AG & CO. KGAA SHAREHOLDER/ANALYST CALL APR 13, 2015

Call Participants

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EXECUTIVES
Kasper Bo Rorsted
Chairman of the Management
Board - Henkel Management AG
and Chief Executive Officer of
Henkel Management AG
Simone Bagel-Trah
Chairwoman of Supervisory Board,
Chairman of Human Resources
Subcommittee, Chairman of
Shareholders' Committee,
Chairman of Nomination
Committee and Member of Audit
Committee

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HENKEL AG & CO. KGAA SHAREHOLDER/ANALYST CALL APR 13, 2015

Presentation

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Simone Bagel-Trah
Chairwoman of Supervisory Board, Chairman of Human Resources Subcommittee, Chairman of
Shareholders' Committee, Chairman of Nomination Committee and Member of Audit Committee
Dear shareholders, ladies and gentlemen, distinguished guests, ladies and gentlemen of the press, I
open this year's Annual General Meeting of Henkel AG & Co. KGaA. I'd to welcome you on behalf of the
Supervisory Board, the Shareholder Committee and the Board of Management.
We invited you to today's AGM through announcement in the Federal Gazette on 4th of March 2015.
The invitation was disseminated on the same day throughout Europe, and it was also published on our
website. The notary in charge has a printout of this invitation, including the agenda. Our notary is Dr.
Zimmermann, and I should like to welcome him, in particular. The required notices, in particular to the
credit institutions and shareholder associations, to be forwarded to our shareholders have been sent
out in due time. I therefore state that the convocation of this AGM has been carried out in line with the
law, the Articles of Association in due time and form. There are no motions or countermotions as well as
alternative voting proposals. All acting members of the Supervisory Board, apart from Mrs. Bernicke, who
is indisposed, are all present, are all in attendance, as well as the members of the Board of Management.
Since our last AGM in 2014, there has no -- there have been no changes in our executive bodies.
Ladies and gentlemen, before we get down to our agenda, I should like to make a few general
announcements. We would like to welcome the representatives of our auditor, KPMG AG
Wirtschaftsprfungsgesellschaft, and we would like to welcome Mrs. Fischer and Prof. Andrejewski, who
are in attendance at this AGM.
You have received an information leaflet regarding the organizational information, and I would like to
summarize the most important points of this information notice. And I should like to emphasize that my
announcements take priority over the information contained in the leaflet.
We have video and audio transmission of the proceedings in the -- on the first floor of the Stadthalle.
There's also audio transmission to the ancillary rooms. These rooms are, therefore, regarded as part of the
meeting premises. You leave the AGM once you pass the checkout counters on the first floor.
This AGM is a non-smoking event. Smoking is, therefore, only permitted outside the premises. Please
consume food and beverages only in the restaurant area.
I should also kindly like to ask you to switch off all mobile phones while you're in the Stadthalle. It's not
permitted to make telephone calls in here.
Holders of ordinary and preferred shares have received a voting card [ph] together with the admission
tickets. In case you have several admission tickets, please check that you received all the voting cards
[ph] for your admission tickets in order for all your votes to be counted properly. As in previous year, we
will vote by way of the subtraction method, and we are, therefore, obliged to have a proper check-in and
checkout updates. And we would like to ask for your cooperation. Please do not leave the AGM without
checking out at the checkout counters and submitting your voting cards [ph]. Those leaving the AGM
without checking out are considered to be in attendance.
Consequently, when we proceed with the vote, any votes will be counted as yes votes, affirmative votes
in the interest of the proposals by the administration. Those who would like to leave prematurely may
grant a proxy. At the back of your voting card [ph], you have the relevant proxy forms. In case you want
to authorize another attendee, you may actually use the form proxy to third parties. Please take out the
proxy form which you filled in and hand it over to your proxyholder. And also, present the proxy form
to the checkout counter. You may also authorize persons -- representatives who are employed by the
company, and please use the relevant form for the proxy and instruction. Or in case you're a preferred
shareholder, please use the proxy to representatives by the company and sign them. And in case you want
to abstain or want to vote no, please tick off the relevant boxes on the back of the form.
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HENKEL AG & CO. KGAA SHAREHOLDER/ANALYST CALL APR 13, 2015

Please use the pens disseminated or please use a black or blue pen. You should in no case use a red pen
because this will not provide an effective vote. Please leave the voting card to your representative. And
the proxy form, submit that to the checkout counter. I would like to point out that pursuant to Section
135 Subsection 5 of the Stock Corporation Act, authorized credit institutions, shareholder associations
and corporate representatives can only sub-authorize persons who are not in their employment if this is
explicitly stipulated by the proxy form.
In order to give shareholders who cannot attend personally and listen to these speeches and the
explanations on the annual financial statement, the speech of the Chairman of the Management Board,
Mr. Rorsted, will be fed on the -- that will broadcasted live on the Internet. Shareholders who are not
present may actually provide instructions and vote through the Internet at least until the conclusion of Mr.
Rorsted's speech. There are no other recordings of this meeting, and I would like to emphasize that it's
not permitted to make personal audio or video recordings of the AGM, and we do not make a stenographic
record of the AGM.
At present, we are preparing the directory of attendance, and I will announce the exact attendance figure
prior to the first vote. We will have a directory as of attendance, which is available for inspection at the
attendance terminal in the entrance area next to the information desk. We will continuously update
attendance, and any changes can also be seen at the attendance terminal.
As in previous year, we will have a general debate following the speech of the Chairman of the
Management Board.
Ladies and gentlemen, if you wish to take the floor after the speech by Mr. Rorsted, we would like to ask
you to hand in a written request for the floor with your name, the number of your voting card [ph] or your
admission card block or ticket block and with reference to the agenda item on which you wish to speak
and hand it over to the speaker's desk. We have prepared forms for you. If you have any -- if you would
like to submit any motions or countermotions, please do so in writing and hand it over to the speaker's
desk together with your request for the floor. You may actually also have it recorded by our assistants
because this will facilitate our procedure as to what to do with your motion or whether you should be given
the floor first in order to actually submit your motion and justify it.
In order to proceed in reasonable time, I would like to ask all speakers to be brief, to be to the point
and to the agenda item they wish to speak on and be focused. If need be and in the interest of all
shareholders present, I will actually limit the speaking time.
Following the general debate, we will have the vote on the proposals by the administration on all agenda
items. We will have a collective vote. I will come back to details later, and these details are also contained
in the information leaflet you received at the check-in desk. I would like to point out that it is possible to
cast a vote only in this meeting room.
So much on the formalities. We would like to proceed with the agenda now. As announced, we will
have a general debate on all agenda items, and I therefore call up all agenda items. Regarding agenda
items 1 and 2, I should like to state that the following documents have been available for inspection
and have been on our website since the convocation of this AGM. First, the financial -- annual financial
statement and the consolidated financial statement, the management report for the company and the
group, including the notes on corporate governance, on management and the remuneration as well as the
details provided pursuant to Sections 289 Subsection 4 and 5 and Section 315 Subsection 2 and 4 of the
German Commercial Code. Thirdly, the proposal for the adoption of the annual financial statement and the
resolution for the appropriation of profit. Fourth, the report of the Supervisory Board for fiscal 2014. Other
relevant documents on -- for the AGM were also available through the website. As you can see from the
agenda, we do not only have the regular formalities but also some additional items on our agenda, and I
will come back to them before we start the general debate.
Ladies and gentlemen, Mr. Rorsted will now present his report on fiscal 2014 and also comment on other
matters pertaining to the company. Mr. Rorsted, you have the floor.
Kasper Bo Rorsted
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HENKEL AG & CO. KGAA SHAREHOLDER/ANALYST CALL APR 13, 2015

Chairman of the Management Board - Henkel Management AG and Chief Executive Officer of Henkel
Management AG
Shareholders, guests, dear friends of the Henkel company, on behalf of the Management Board and our
employees, I would like to welcome you most cordially to our Annual General Meeting.
Henkel's vision is to be a global leader in brands and technologies. Last year, we took another step toward
realizing this vision, although the political and economic environment was, in part, very difficult. We
therefore look back on the year with pride.
What did we achieve in 2014? Again, we delivered profitable growth to which all 3 business units
contributed. Organic sales in our emerging markets showed a very strong increase. Given that political
and economic turbulence in many regions, this has been a very good performance. We further strengthen
our position in all 3 business units through acquisitions, investing a total of about EUR 1.8 billion.
Furthermore, we increased our total CapEx by almost 20% to more than EUR 500 million, with half of the
amount being invested in emerging markets. We further simplified and digitized our processes, and we
reached a number of important intermediate targets ahead of schedule in the areas of sustainability. These
-- such success was due to the efforts of our almost 50,000 employees around the world, so I would like
to take this opportunity to thank them, also in your name, for their hard work and commitment.
Ladies and gentlemen, in 2014, the world economy again experienced only moderate growth of around
2%. Once more, the emerging markets performed better than the mature markets, although their
dynamism eased somewhat compared to 2013, and the fluctuations in some currencies had a negative
impact.
In Asia, China was again a major driver of economic growth, with an increase in GDP of over 7%. Growth
momentum also came from India, with the GDP increase of more than 7% as well; and from Indonesia,
with a rise in GDP of over 5%.
The Africa/Middle East regions showed solid developments, too. There, the economy grew stronger
than in the previous year. By contrast, the growth rate in Latin America dipped below the level of the
previous year. In Eastern Europe, the severe conflicts between Russia and Ukraine impacted the economic
development.
I'd now like to say a few words on the economic situation in Russia and Ukraine. Russia is affected by
the rapid decline of the oil price and economic sanctions. The Ukrainian economy shrunk by almost 6%
last year. Additionally, the currencies in both countries are under pressure. These developments are also
affecting our business. We anticipate that the conflict between Russia and Ukraine will adversely affect our
results in the fiscal year 2015 by approximately EUR 100 million.
Time and again, we get asked about whether our involvement in Russia and Ukraine is still worth it.
Our answer to that is clear. For us, both countries are important. We've been around in Russia for 24
years now. It's our 4th biggest market. We opened a new research center there as recently as in 2013.
Ukraine counts among our most important emerging markets. We will stay in both countries. We have
achieved much there, and we believe in the future of both countries. We also feel responsibility towards
our employees. In Russia, we employ almost 3,000 people, and we have 1,000 employees in Ukraine.
Withdrawal would contradict our understanding as a globally active and reliable business partner. Needless
to say, the safety and well-being of our employees take highest priority.
Moving on to the mature markets. Once again, Germany was an anchor of stability in Europe. The North
American economy showed solid development. Movements on the foreign exchange markets were
particularly significant in 2014. Some currencies in the emerging markets continued to devalue versus the
euro. The U.S. dollar was also very volatile. Nevertheless, we're very satisfied with our performance. We
achieved our financial targets for 2014.
We generated solid organic sales growth to the tune of 3.4%, placing us within our target range. Annual
sales amounted to EUR 16.4 billion, which was only slightly above the level of 2013 because of negative
foreign exchange effects. This had an impact on the sales amounting to around EUR 650 million. We
generated 44% of our sales in the emerging markets. This figure has remained constant due to the
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HENKEL AG & CO. KGAA SHAREHOLDER/ANALYST CALL APR 13, 2015

devaluation of some currencies in these markets. Adjusted operating profit rose to EUR 2.6 billion,
resulting in an adjusted return on sales of 15.8%. The EBIT margin was likewise in line with our guidance
and represents the highest ever achieved in a full financial year. For adjusted earnings per preferred, we
guided growth in the high single-digit range. With a rise of 7.6% to EUR 4.38, we also achieved our target
here. Let aside this solid operating performance, Henkel has remained financially very strong.
Following acquisitions of the previous year and the high dividends paid out, our net financial position
slightly declined versus the previous year. Nevertheless, we still have considerable financial headroom
for further acquisitions. You, our shareholders, are also to benefit from this. Today, we are proposing a
dividend increase by EUR 0.09 to EUR 1.31 per preferred share and to EUR 1.29 per ordinary share; thus,
the payout ratio would remain at 30%.
You, our shareholders, are not only benefiting from a high dividend but also from the development of the
share price. In 2014, the preferred shares rose by 6.1%, while the ordinary shares increased by 6.3%.
This means that both classes of shares performed more than twice as well as the DAX. Over the past 5
years, Henkel preferred shares have shown an average annual return of 21.4%, including dividends. The
average return of the DAX over the same period was only half as much.
Ladies and gentlemen, I would now like to turn my attention to our 3 business units, each of which
contributed to our solid performance in 2014.
Sales in Laundry & Home Care amounted to EUR 4.6 billion, representing a slight increase on the
previous-year figure. Organically, sales rose by 4.6% despite stagnation in the relevant markets. This is
a solid achievement. The emerging markets were once again the major growth driver. They registered a
double-digit increase in sales. Sales in the mature markets were slightly below the level of the previous
year. However, developments were very mixed here. In North America, we suffered under a tough
competitive environment. In Western Europe, we achieved solid growth, on the other hand. Adjusted
operating profit rose by 4.8% to EUR 749 million, taking adjusted return on sales to a new high of 16.2%.
Reported operating profit amounted to EUR 615 million.
Once again, in 2014, Laundry & Home Care was able to leverage its strong brands. With its 10 top
brand clusters, the business unit generated 82% of its sales. That included Persil, Purex and Pril. The
innovation rate increased to more than 45%. This figure represents the share of sales achieved with
products launched onto the market within the last 3 years. An example is the new Pril Kraft-Gel launched
in Western Europe, Eastern Europe and also in Africa/Middle East.
The Beauty Care business unit registered organic growth of 2% in 2014, significantly outperforming
its relevant markets. These were characterized by intense competition. Nominally, sales increased
slightly to EUR 3.5 billion. Here again, the emerging markets showed a strong development. Thanks
primarily to China, we achieved double-digit growth in Asia. Africa and the Middle East also showed
significant increase. Developments in the mature markets were, on the other hand, mixed. Western
Europe was characterized by stagnating to contracting markets. Nevertheless, we were able to expand
sales organically. By contrast, sales in North America and the mature markets of Asia fell below the level
of the previous year. Adjusted operating profit in the Beauty Care business unit rose by 3.5% to EUR 544
million. Adjusted return on sales increased to a new high of 15.3%. Reported operating profit amounted to
EUR 421 million.
Beauty Care's solid performance is due primarily to our top brands. These grew more rapidly than the
portfolio as a whole in 2014. They now account for around 92% of sales. Our top brands in this business
unit include Schwarzkopf, Dial and Syoss.
A further driver of this solid performance was once again our innovations. More than 45% of sales came
from products launched into the market within the last 3 years. One example is Schwarzkopf
Essence Ultme. This is a product series that we developed together with Claudia Schiffer. The products
have been available in the market since the beginning of 2014 and are positioned in the upper price
segment. This is a segment in which we haven't been active before. With innovations like these, we're able
to open up new target groups. In just 4 months, we've rolled out this innovation to over 25 countries.
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HENKEL AG & CO. KGAA SHAREHOLDER/ANALYST CALL APR 13, 2015

The Adhesive Technologies business unit also reported profitable growth in 2014. Organically, sales rose
by 3.7%, outperforming the markets. In nominal terms, sales were at the previous year's level of EUR
8.1 billion. The emerging markets, in particular, registered strong organic growth. Sales rose considerably
in Africa/Middle East, especially, and also in Asia. Overall, we achieved organic sales growth in the
mature markets. Sales in Western Europe and the mature countries of Asia showed an increase. Sales in
North America, on the other hand, were below the previous year's level. Adjusted operating profit of the
Adhesive Technologies business rose by 3 -- 2.3% to EUR 1.4 billion. The adjusted EBIT margin reached a
new high, amounting to 7.2%. Reported operating profit increased to EUR 1.3 billion.
We've almost completed the process of consolidating our brands in the adhesives division. Our 10
biggest brands generated 80% of our sales. The leading brands are Loctite, Teroson and Technomelt. In
November, we also brought our Purbond wood adhesive under the Loctite brand umbrella.
Our adhesives are to be found everywhere. Aside from the well-known consumer brands such as Pritt,
Pattex or Ponal, which every one of you will certainly know, you also come into close contact with our
industrial adhesives every day, whether it be in the car, smartphone or refrigerator, to name just a few
examples.
Adhesive Technologies has introduced numerous new products over the last 5 years. In 2014, these
accounted for more than 30% of the business unit's sales. One example is our new protective coating for
magnesium, which is marketed under the Bonderite brand. Magnesium is lighter and more stable than
aluminum and is particularly widely used in consumer electronics.
Ladies and gentlemen, I would like to say a few words about the development of Henkel in North America,
which remain below our expectations. Returning to growth in North America is our top priority for the
current fiscal year. We therefore initiated various measures. These include changes in management, in
our product portfolio and in our internal processes. We've now reached halftime on our way to our 2016
financial targets. As you can see, we again worked coherently last year to ensure that we achieve them.
Our actions are guided by 5 corporate values, which are binding for all employees: we put our customers
at the center of whatever we do; we value, challenge and reward our people; we drive excellent,
sustainable financial performance; we are committed to leadership in the field of sustainability; and we
build our future on our family business foundation, which is successful.
Based on these values, we've defined our strategy and our targets for the period through to 2016. Those
2016 targets are EUR 20 billion in sales, of which EUR 10 billion are to come from the emerging markets
and EUR 10 billion from the mature markets; an average of 10% annual growth in adjusted earnings per
share. To achieve this, we intend to outperform our competition with a strong global team, expand our
businesses worldwide and simplify our operations.
We've defined 4 strategic priorities. They read outperform, globalize, simplify and inspire. Last year, we
made great progress in implementing them.
Outperform means we want to be more successful than our competitors. We achieve this by strengthening
our top brands, by driving innovation and working even more closely with our customers. In 2014, we
once again focused on our top brands, such as Loctite, Persil and Schwarzkopf. Together, these brands
generated sales of approximately EUR 5 billion. By 2016, we expect our top brands -- the 10 top brands to
account for 60% of our sales. In 2014, we had already achieved 59%, so we've almost reached our target
in that respect. Our focus on strong brands is paying off. They're growing organically more quickly and are
more profitable with our 10 top brands. And we're also gaining more leverage in marketing and sales.
Another major factor is innovation. Our innovation rates have continuously improved over the past few
years, and we regularly receive awards for innovative products. Our international development centers
play a particularly important role in this regard. Through these centers, we are able to provide our
customers locally with solutions to their specific requirements. One example is a liquid laundry detergent
developed specifically for Arab markets, Persil Black, with a special fragrance, which has significantly
consolidated Henkel's market leadership in this segment.
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HENKEL AG & CO. KGAA SHAREHOLDER/ANALYST CALL APR 13, 2015

We also cooperate with suppliers, universities and research institutions in order to enhance our innovative
capacity. We call this concept Open Innovation. Here are a few examples. Together with our partner BASF,
we have developed a new active ingredient for fabric softeners. We've improved our haircare products by
working together with Wacker Chemie. Here, we also are applying a new film-forming technology involving
silicone micro-emulsions. Our collaboration with Kaneka of Japan has also been a success, providing us
with early access to new developments in polymers for various industrial applications.
We're also increasing our investments in promising technologies of the future. One example is our
collaboration with Vitriflex. This startup was established in California in 2010. It specializes in the
production of advanced film products for flexible sprays in electronic devices. Our aim is to further develop
this technology on a collaborative basis.
We also want to get closer to our customers. We're aligning our activities in marketing and sales
specifically to their needs. In 2014, we strongly focused on digital channels, enabling us to reach new
users and to strengthen our position in the competitive environment. In the Beauty Care business unit, for
example, we were using various digital platforms for communication, consumer advice and e-commerce.
The digital marketing video from Schwarzkopf for Valentine's Day was a great success. On YouTube alone,
it was viewed more than 15 million times.
We have digital -- we've significantly expanded digital offers in the Laundry & Home Care business unit.
Here, we've reached around 10 million consumers with a viral campaign featuring our successful Bref
power balls.
We've further expanded our e-commerce platform in the Adhesive Technologies business unit. We're
using this platform to serve our industrial customers on a one-to-one basis. In 2014 alone, this platform
generated more than EUR 500 million in sales.
The second priority in our strategy is globalize. This means that we want to expand our business in the
emerging markets. At the same time, we intend to further strengthen our positions in mature markets.
By 2016, we want to generate annual sales of approximately EUR 20 billion, of which half of that will be
hopefully realized in the emerging markets. We've made major progress in our emerging markets. In
2014, we achieved organic sales growth of 7.8% in these markets. Once again, we generated doubledigit organic growth in Africa and the Middle East despite the continuing political unrest in some of these
countries. Developments in Asia were substantially driven by China. We were also very successful in India
and Indonesia. We generated solid organic growth in Eastern Europe despite the conflicts in some of these
countries. Overall, the emerging markets again accounted for 44% of our sales in 2014.
This share would've grown further if the currencies of some emerging markets had not been so weak.
At the same time, we further increased the share of employees working for us in these regions to 57%.
We've invested in local R&D and production. The Africa/Middle East region has already benefited from
a new research center for Laundry & Home Care. This is located in Dubai and was opened at the end of
2013. We further expanded our research centers serving the Beauty Care business unit. These include our
R&D sites in Johannesburg and Shanghai. They enable us to better satisfy the requirements of customers
in these regions. In Johannesburg, for instance, we have developed Schwarzkopf Smooth N Shine, a
haircare series specifically aligned to the needs of afro-textured hair. We opened the technology center for
Adhesive Technologies in Seoul, which focuses on providing solutions for mobile devices and displays.
We're also benefiting from acquisitions in emerging markets. In 2014, we acquired the Polish brand E
for our Laundry & Home Care business. And in May, we took over the Pert brand in Latin America for our
Beauty Care division.
We also invested in our mature markets and consolidated our leading position in 2014 in these markets.
Our business in Germany, which again performed well, played a particularly important role in this regard.
Our home market is and will continue to be an important pillar of our success. We invested nearly EUR
140 million here in 2014, which corresponds to approximately 1/4 of our total capital spend. The group
headquarters in Dsseldorf remains our largest production site of Henkel and the most important center
for research and development. We acquired the French-based Spotless Group in June, which strengthens
the position of the Laundry & Home Care business in Western Europe. Likewise in June, we've announced
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HENKEL AG & CO. KGAA SHAREHOLDER/ANALYST CALL APR 13, 2015

the acquisition of 3 haircare companies in the United States: Sexy Hair, Alterna and Kenra. Henkel now
belongs to the 3 top players in the hair professional market in North America. With the takeover of The
Bergquist Company in the United States, our Adhesive Technologies business is now able to market
thermal management technologies to our customers worldwide.
Acquisitions are part of our strategy. Last year, we spent a total of EUR 1.8 billion on such transactions.
This is also a reflection of our financial strength. Based on this strong basis, we intend to continue
investing in the growth of our businesses.
In addition to acquisitions, that's something that we can take for granted, we also intend to continue
expanding our existing businesses. Only then will we be able to maintain and expand our strong positions.
The third strategic priority is simplify. This means that we want to simplify our structures as well as
accelerate and digitize our processes. This will enable us to respond even more quickly to new challenges
in the future. In an increasingly competitive environment, we also need to become more digital. This
will not just make our processes more efficient, we also aim to better track market and business
developments. This will allow fast and better decision-making.
Our focus at the moment is on 3 topics: we will expand our shared service activities; we are consolidating
our IT systems on a single platform; and we are establishing a global supply chain organization.
We've opened 2 new shared service centers, 1 in Cairo and the other in Shanghai, where our business
processes are handled on a centralized-to-centralized basis. Currently, we employ more than 2,600
employee -- people in 6 such shared service centers. By 2016, this number is expected to increase to
more than 3,000.
We're still working on consolidating our IT systems. Since the start in Asia in 2013, we've migrated 21
different IT systems to 1 SAP platform. Last year, we started also doing this in Europe. Our other regions
will follow until 2016. By then, we want to have decreased the number of internal processes to 800. In
2012, we had still something like 2,200 different processes.
Again, last year, we improved the digital working environment of our employees. We, in fact, migrated
45,000 users to a new IT platform, making our employees able to work more closely together in a
network. We also improved our procurement processes. We are bundling our activities in central hubs, for
example, in So Paulo, Dubai, Shanghai and Rocky Hill. We rely more on electronic procurement. In 2014,
we handled 23% of our procurement volume using our new IT platform.
We've also made progress with our global supply chain organization. This will help us to bundle our
logistics and production processes and also the procurement activities, serving all our business units. We
completed preparations in 2014 and established a company in Amsterdam. In the future, around 200
employees will be working there for us.
To successfully drive all these initiatives, we need good and motivated people worldwide. Our fourth
strategic priority therefore reads inspire. We want to continuously develop our employees while, at
the same time, recruiting new talent for our company. For a global company such as Henkel, having
employees from different backgrounds and different types of experience is very important. At the
same time, we expect everyone to be committed to the same values and principles, established a clear
framework for this, which serves as guidance for our management.
Good management begins at the top. Together with the Harvard Business School, we've developed a new
forum for our top management. Now these executives can exchange their knowledge and experience
while, at the same time, learning how to deal more effectively with new challenges, supported by the
expertise of professors. 1/3 of our top executives has already participated in the first session, which took
place in August. We have also developed a program for future executives. This is aligned primarily to our
employees in emerging markets. It enables participants to build up their contacts and network with other
executives. Last year, we promoted 1,150 employees worldwide, paying due attention to diversity in terms
of gender, culture and experience. We support women in the development of their career opportunities.
1/3 of our executives are female. Our record in this regard has been recognized in South Korea, for
example. There, we were named, for the second time, as a great place for women to work.
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HENKEL AG & CO. KGAA SHAREHOLDER/ANALYST CALL APR 13, 2015

Diversity and inclusion has long been of great importance for us. For many years, we've encouraged
our employees with a wide range of measures to recognize and utilize the opportunities of a diverse
culture. Nevertheless, when it comes to promotions, quality remains the key criterion. In a globally aligned
process, we have praised the performance and potential of more than 10,000 executives. This enables us
to better manage career opportunities and the career development.
We want to find and secure new talent and retain that talent. And to do this, we place great importance
to digital communication. We cooperate with 6 top international universities which have a high proportion
of students from emerging markets. With our Henkel Innovation Challenge, we address students from
all over the world. This competition was launched in 2007. And since then, we've had around 35,000
students who participated. Our initiatives are paying off. Within our target group, Henkel is regarded as an
attractive employer. The number of good-quality applications is constantly rising.
Social responsibility is an important part of our corporate culture. This is why we promote volunteering
projects of our employees. In 2014, we supported 2,200 initiatives. In spring, for example, a large team of
volunteer helpers from Henkel supported the Special Olympics in Dsseldorf.
As a responsible corporate citizens, we've -- citizen, we've always have been dedicated and long been
dedicated to sustainability. This commitment is firmly anchored in our values and embraces the entire
value chain. We're convinced that sustainability will become ever more important in the future.
By the year 2015, the world's population will have grown to 9 billion people. This means we have to utilize
our resources more efficiently. We set ourselves specific targets for 2030 in that regard. Compared to the
baseline year of 2010, we want to triple the value we create in relation to our environmental footprint. To
achieve this, we have to increase our efficiency by an average of 5% to 6% each year. For 2015, we have
defined some milestones. These relate to 6 areas, including, for example, more energy efficiency and less
waste per production unit. We reached 4 of these 6 targets ahead of schedule last year. However, the work
on our targets is ongoing.
Our activities in this regard are aligned to 3 fields: products, partners and people. Even when developing
our products, we pay close attention to sustainability standards. We assess our ideas on the basis of fixed
evaluation scheme, enabling us to secure the sustainability of our innovations at an early point in time.
Together with other companies, we've expanded our initiative Together for Sustainability.
We examine the standards of suppliers in relation to aspects such as health, safety and employee working
conditions. Since the start of this initiative, the number of members has doubled from 6 to 12 global
companies.
We've strengthened the communication of our sustainability targets and objectives within our
organization. Since 2012, we've trained 3,800 employees as Sustainability Ambassadors. In doing this, we
also convey the importance of sustainability to partners, customers and the public at large. As part of the
program, we've educated 36,000 children in 37 countries.
Our engagement is -- has also been recognized by third parties. Henkel is represented in the Dow Jones
Sustainability Index as a sector leader. Our shares are also listed in other sustainability indices. These
include, for example, the ethical index FTSE4Good. Henkel also belongs to the Global Challenges Index as
1 of just 50 companies worldwide. You can find further information in our sustainability report and on our
website.
Ladies and gentlemen, 2015 will be another challenging year for Henkel. The world economy is expected
to grow by around 3%. Emerging markets are expected to grow by 4%, thus, again, outpacing the mature
markets. We again expect particular momentum to come from Asia. Developments in the mature markets
will remain mixed. Forecasts indicate that the United States will expand its GDP by around 3%; while in
Western Europe, we expect growth of about 1%.
Currency or foreign exchange markets will continue to be volatile in 2015. Overall, we expect currencies
of the -- which have major importance to us to appreciate against the euro. This applies particularly to
the U.S. dollar. Due to the expected turnaround in interest rates in America, the U.S. dollar has undergone
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HENKEL AG & CO. KGAA SHAREHOLDER/ANALYST CALL APR 13, 2015

significant appreciation since the start of the year. By contrast, currencies in emerging markets are likely
to depreciate. We expect the Russian ruble to remain under pressure.
For the year 2015, we've set ourselves the following targets: we expect organic sales growth of between 2
-- 3% to 5%; and the share of emerging markets will continue to be constant; we expect adjusted return
on sales to increase to approximately 16%, with all business units contributing; adjusted earnings per
preferred share should increase by around 10%. We will be publishing our figures for the first quarter of -on May 27. We'll then be also able to report on how 2015 has started for us.
Ladies and gentlemen, on behalf of the Management Board, I'd like to thank our Supervisory Board, the
members of the Shareholders Committee and the employee representative bodies for their constructive
cooperation in the past year. And I would like to thank you, the shareholders of Henkel, for your trust and
confidence. We, on the Management Board of Henkel, look forward to continuing on our successful journey
with your invaluable support. Thank you very much for your attention.

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HENKEL AG & CO. KGAA SHAREHOLDER/ANALYST CALL APR 13, 2015

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