SPOTLIGHT MAGAZINE

• Group sales: around 5.3 billion euros, organic growth of 3.0 percent
• Organic sales increase driven by both business units:
  • Adhesive Technologies: positive organic sales growth of 1.3 percent
  • Consumer Brands: very strong organic sales growth of 5.2 percent
• Acquisitions of Seal for Life Industries and Vidal Sassoon in China closed earlier than anticipated
• Further progress in implementing strategic growth agenda
• Outlook for fiscal 2024 significantly raised on May 3:
  • Organic sales growth: 2.5 to 4.5 percent ‏(previously: 2.0 to 4.0 percent)
  • Adjusted return on sales: 13.0 to 14.0 percent ‏(previously: 12.0 to 13.5 percent)
  • Adjusted earnings per preferred share ‏(EPS): Increase in the range of +15.0 to +25.0 percent at constant exchange rates ‏(previously: +5.0 to +20.0 percent)

• Strong business performance in 2023
  • Sales: 21.5 billion euros, very strong organic growth of 4.2 percent
  • Operating profit ‏(EBIT)*: 2.6 billion euros, significant increase of 10.2 percent
  • EBIT margin*: 11.9 percent, strong improvement by 150 basis points
  • Earnings per preferred share ‏(EPS)* significantly higher: 4.35 euros, +20.0 percent at constant exchange rates
  • Free cash flow at a new high of 2.6 billion euros
• Stable dividend proposed: 1.85 euros per preferred share
• Implementation of Purposeful Growth Agenda further accelerated
  • Consumer Brands: Merger progressing faster than planned
  • Adhesive Technologies: New organization even more customer-focused
  • Both business units strengthened with targeted acquisitions
  • Sustainability driven forward in key areas
• Outlook for fiscal 2024 – focus on profitable growth
  • Organic sales growth: 2.0 to 4.0 percent
  • EBIT margin*: 12.0 to 13.5 percent
  • Earnings per preferred share ‏(EPS)*: Increase of +5 to +20 percent ‏(at constant exchange rates)

• Climate action:
  • reduction of CO₂ emissions in production by 61 percent
  • share of purchased electricity from renewable sources increased to 89 percent
• Circular economy: share of recycled plastic increased to 19 percent worldwide
• Natural Resources: 10th anniversary of collaboration with Solidaridad for sustainable palm ‏(kernel) oil
• Gender parity ambition: gender-neutral parental leave guideline introduced
• Sustainable solutions: product portfolio further developed
• Employee engagement: “Sustainability at Heart” program extended

Henkel and SAP have teamed up to drive digital co-innovation by leveraging a unique combination of future-ready software, technology, and ecosystem. Two significant changes will be executed in a tailor-made approach: implementing the cutting-edge software SAP S/4 HANA and fully transitioning into the cloud.