DGAP-Adhoc

Henkel AG & Co. KGaA: Henkel announces strategic measures to strengthen competitiveness and growth dynamics

DGAP-Ad-hoc: Henkel AG & Co. KGaA / Key word(s): Strategic Company Decision/Forecast Henkel AG & Co. KGaA: Henkel announces strategic measures to strengthen competitiveness and growth dynamics 28-Jan-2022 / 08:30 CET/CEST Disclosure of an inside information acc. to Article 17 MAR of the Regulation (EU) No 596/2014, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. Düsseldorf, 2022-01-28T08:00+01:00 (CET)

Henkel announces strategic measures to strengthen competitiveness and growth dynamics:

- Merger of Laundry & Home Care and Beauty Care into one business unit "Henkel Consumer Brands" planned

- New mid- to long-term financial ambition announced:

- Organic sales growth of 3 to 4 percent, EBIT margin* of around 16 percent,
Earnings growth per preferred share (EPS)* in the mid to high single-digit percentage range (at constant exchange rates, incl. M&A)

- Share buyback program with a total volume of up to 1 billion euros

- Preliminary results for fiscal 2021 disclosed:

- Organic sales growth +7.8 percent, EBIT margin* 13.4 percent, Earnings per preferred share (EPS)* +9.2 percent at constant exchange rates

- Outlook for fiscal 2022 published:

- Organic sales growth 2 to 4 percent, EBIT margin* 11.5 to 13.5 percent, Earnings per preferred share (EPS)* development in the range between -15 and +5 percent (at constant exchange rates), reflecting high level of market uncertainty and volatility

At its meeting today, the Management Board of Henkel AG & Co. KGaA decided, with the necessary approval of the Shareholders' Committee, several strategic measures to further strengthen the competitiveness and future business development of the company within the framework of its long-term agenda for purposeful growth:

Henkel intends to merge Laundry & Home Care and Beauty Care into one single business unit "Henkel Consumer Brands", to sustainably strengthen the growth and margin profile of the consumer goods businesses. With sales of around 10 billion euros, the new, integrated business unit will provide a strong multi-category platform for future growth. Therefore, the portfolio will be consistently focused on strategic core businesses and products with attractive growth and margin potential - beyond the active portfolio management measures completed by the end of 2021. First measures relating to the Beauty Care portfolio will be already implemented in the course of 2022. Significant synergies are also expected in the course of the integration. These, as well as the expenses for restructuring measures will be specified at a later date.