DGAP-Adhoc

Henkel AG & Co. KGaA: Henkel announces strategic measures to strengthen competitiveness and growth dynamics - Seite 2

Based on the planned merger, Henkel has defined a new mid- to long-term financial ambition: Henkel is now pursuing organic sales growth of 3 to 4 percent and an adjusted EBIT margin of around 16 percent. In addition, Henkel is targeting growth in adjusted earnings per preferred share (EPS) in the mid to high single-digit percentage range (at constant exchange rates and including M&A) and is placing a continued focus on expanding free cash flow.

For its Adhesive Technologies business unit, Henkel's financial ambition is to achieve organic sales growth in the range of 3 to 5 percent and an adjusted EBIT margin in the high-teens percentage. For the new Consumer Brands business unit, Henkel is pursuing organic sales growth of 3 to 4 percent and a mid-teens percentage adjusted EBIT margin.

The Management Board also resolved to launch a share buyback program with a total value of up to 1 billion euros. Henkel preferred shares (ISIN DE0006048432 // WKN 604843) with a total value of up to 800 million euros and ordinary shares (ISIN DE0006048408 // WKN 604840) with a total value of up to 200 million euros are to be repurchased (for each excluding additional costs). Based on current stock market prices, this corresponds to a share of about 3 percent of the company's capital stock.

The program is expected to start during the month of February 2022 and to be carried out until March 31, 2023 at the latest, with the involvement of a bank via the stock market. The Management Board is thus making use of the authorization granted by the Annual General Meeting on April 8, 2019 to purchase treasury shares of up to 10 percent of the capital stock. Henkel intends to hold the repurchased shares initially as treasury shares, reserving the right to cancel them and reduce the capital stock accordingly. Henkel will provide information on the start and progress of the share buyback program by appropriate publications and on its website and reserves the right to interrupt and resume or discontinue the share buyback program at any time. In this context, Henkel reconfirms that acquisitions in both future business units remain an integral part of its strategy.