Henkel (HEN) Investor presentation summary

Strategic positioning and business overview

• Holds global leadership in adhesives, sealants, and coatings, and is a top player in consumer markets with iconic brands across 800 industries worldwide.

• Operates two main business units: Adhesive Technologies (51% of sales) and Consumer Brands (48% of sales), with a strong presence in Europe, North America, and Asia-Pacific.

• Maintains a robust financial foundation with €21.6bn in 2024 sales, €3.1bn adjusted EBIT, and a Single A credit rating.

• Four billionaire brands account for ~40% of sales, and the top 10 brands contribute over 50% of sales.

• Employs ~47,000 people from over 125 nationalities and operates more than 160 production sites in over 50 countries.

Innovation, sustainability, and digitalization

• Invests heavily in R&D, with global innovation centers and over 3,000 R&D experts, launching ~25% new products in the last five years.

• Sustainability is core, targeting net-zero by 2045, with a 64% reduction in CO2 emissions since 2017 and 89% of packaging designed for recycling.

• Digitalization drives efficiency and growth, with digital sales share rising to ~20% in 2024 and a dedicated digital unit (Henkel DX).

• Achieves high ESG ratings and is recognized for industry-leading sustainability management.

Portfolio management and growth strategy

• Actively manages its portfolio, divesting or discontinuing over €2bn in brands/businesses since 2022 and acquiring strategic assets in both business units.

• Focuses on high-growth segments and megatrends such as mobility, sustainability, connectivity, and urbanization.

• Consumer Brands business merged for efficiency, targeting €525m in annual savings by end of 2025.

• Drives value through innovation, premiumization, and digital tools, with strong growth in top brands and premium product launches.