Henkel (HEN) investor relations material

Strategic positioning and business overview

• Holds global #1 position in adhesives and #2 in consumer brands in active markets, with a diversified portfolio serving over 800 industries worldwide.

• Operates two main business units: Adhesive Technologies and Consumer Brands, each with leading brands and strong market presence.

• Maintains a robust financial foundation, with €20.5bn in 2025 sales, €3.0bn adjusted EBIT, and a 3.0% dividend yield per preferred share.

• Employs around 47,200 people from 125 nationalities, with 165 production sites in over 50 countries.

• Strategic priorities include innovation, sustainability, digitalization, and active portfolio management through M&A.

Financial performance and ambitions

• Achieved strong organic sales growth (OSG) and profitability, with a 14.8% adjusted EBIT margin and €5.33 adjusted EPS in 2025.

• Targets mid-term organic sales growth of 3-4% and adjusted EBIT margin of ~16%, with a focus on free cash flow expansion.

• Distributed over €10bn to shareholders in the past decade, with a consistent dividend policy and two share buybacks totaling €2bn between 2022-2026.

• Maintains strong Single A credit ratings (S&P, Moody’s) and an asset-light business model, supporting substantial investment capacity.

Innovation, sustainability, and digitalization

• Industry-leading R&D drives impactful innovations, with ~25% of sales from products launched in the last five years and over 3,000 R&D experts.

• Sustainability is core, with a 2030+ ambition framework targeting net-zero emissions by 2045 and a 29% reduction in absolute GHG emissions since 2021.

• Achieved 28% recycled plastic in consumer packaging and 98% sustainable palm-based ingredients.

• Digitalization initiatives include a combined digital unit (Henkel DX), ~20% digital sales share, and partnerships with SAP, Microsoft, and Adobe.