Henkel Ag & Co. Kgaa · XETR:HEN
Henkel Ag & Co. Kgaa — Q3 2023 Earnings Presentation
28 slides from Henkel Ag & Co. Kgaa's earnings presentation, Nov 9, 2023
Slide 1: Henkel Q3 2023
HENKEL Q3 2023 CARSTEN KNOBEL, MARCO SWOBODA – 9 NOVEMBER 2023
Slide 2: Disclaimer
DISCLAIMER This presentation contains forward-looking statements which are based on current estimates and assumptions made by the corporate management of Henkel AG & Co. KGaA. Statements with respect to the future are characterized by the use of words such as “expect”, “intend”, “plan”, “anticipate”
Slide 3: Agenda
AGENDA 01 Key Developments 02 Business Performance Q3 2023 & Outlook 03 Key Take-Aways & Closing 3 HENKEL Q3 2023
Slide 4: Delivering on our priorities
DELIVERING ON OUR PRIORITIES Sustained topline trajectory in Q3 2023 ▪ Organic sales increase driven by strong pricing and improved HENKEL ADHESIVE CONSUMER sequential volume development in both businesses GROUP TECHNOLOGIES BRANDS ▪ Adhesive Technologies acquires attractive adjacent business SALES
Slide 5: Adhesive Technologies: Expanding our portfolio in adjacent business
ADHESIVE TECHNOLOGIES: EXPANDING OUR PORTFOLIO KEY FACTS IN ADJACENT BUSINESS ▪ Sales of ~€100m in 2023e ▪ 3-year-CAGR* >10% Acquisition of Critica Infrastructure closed ▪ Active in many countries with focus on North America ▪ Acquisition of specialized supplier for innovative *2019-2022 composite r
Slide 6: Adhesive Technologies: Well-positioned in attractive market segments enabling sustainability
ADHESIVE TECHNOLOGIES: WELL-POSITIONED IN ATTRACTIVE MARKET SEGMENTS ENABLING SUSTAINABILITY Broad range of applications to 140 OF 150 CARS EXTEND ASSET produced every minute LIFETIME while increasing worldwide contain efficiency & enabling sustainability at least one Henkel solution OUTGROWING High
Slide 7: Consumer Brands: Business transformation in full swing
CONSUMER BRANDS: PHASE 1 NET SAVINGS: >80% TO BE REALIZED BUSINESS TRANSFORMATION BY END OF 2023 ~€250 m IN FULL SWING 2022 2023e 2024e Implementation ahead of plan ▪ Clear roadmap for business transformation to shape ORGANIZATIONAL SET-UP: consumer businesses along global categories Laundry & AGREE
Slide 8: Consumer Brands: Growing with global categories Laundry & Home Care and Hair
CONSUMER BRANDS: GROWING WITH GLOBAL CATEGORIES LAUNDRY & HOME CARE AND HAIR Sustained growth path with 7TH CONSECUTIVE DOUBLE-DIGIT organic sales growth QUARTER in Q3 2023 with organic sales growth Henkel is Top premium detergent brands Persil and ‘all contributing with MARKET LEADER in Europe – sh
Slide 9: Outlook 2023 raised
Layout tbd – new chart OUTLOOK 2023 RAISED ORGANIC SALES GROWTH 3.5 to 4.5% ADJ. EBIT MARGIN 11.5 to 12.5% ADJ. EPS1 +15 to +25% 9 HENKEL Q3 2023 1 Per preferred share, at constant exchange rates
Slide 10: Agenda
AGENDA 01 Key Developments 02 Business Performance Q3 2023 & Outlook 03 Key Take-Aways & Closing 10 HENKEL Q3 2023
Slide 11: Organic sales increase driven by continued strong pricing
ORGANIC SALES INCREASE DRIVEN BY CONTINUED STRONG PRICING Q3 2023 2.8% -5.5% -6.3% -9.0% OSG M&A FX NOMINAL PRICE VOLUME SALES 8.3% -5.5% €5.4bn 11 HENKEL Q3 2023
Slide 12: Organic sales growth by region
ORGANIC SALES GROWTH BY REGION Q3 2023 Organic sales growth Europe 0.9% North America 3.2% IMEA 24.7% Asia-Pacific -4.7% Latin America 5.8% 12 HENKEL Q3 2023
Slide 13: Adhesive Technologies Q3 2023
In progress ADHESIVE TECHNOLOGIES Q3 2023 NOMINAL SALES €2.7bn ORGANIC SALES GROWTH 0.8% PRICE VOLUME 4.9% -4.1% 13 HENKEL Q3 2023
Slide 14: Adhesive Technologies: Business unit performance
ADHESIVE TECHNOLOGIES Q3 2023 – Business Unit Performance Price/Volume Development in % 10 9.0 ▪ Overall comparably resilient performance given continued softer demand in relevant 4.9 5 end markets and higher prior-year comparables 0 ▪ Positive organic sales growth with continued strong pricing and
Slide 15: Adhesive Technologies: Business area performance
ADHESIVE TECHNOLOGIES Q3 2023 – Business Area Performance MOBILITY & PACKAGING & CRAFTSMEN, ELECTRONICS CONSUMER GOODS CONSTRUCTION & PROF. SALES OSG SALES OSG SALES OSG €980m 4.6% €855m -5.0% €876m 2.8% Growth driven by Automotive, Both Consumer Goods and Growth driven by Consumers Industrials posi
Slide 16: Consumer Brands Q3 2023
New layout – contentIn to progress be updated CONSUMER BRANDS Q3 2023 NOMINAL SALES €2.7bn ORGANIC SALES GROWTH 6.2% PRICE VOLUME 11.9% -5.7% 16 HENKEL Q3 2023
Slide 17: Consumer Brands: Business unit performance
CONSUMER BRANDS Q3 2023 – Business Unit Performance Price/Volume Development in % ▪ Very strong organic growth driven by double-digit 16 15.4 pricing 11.9 12 ▪ Clear sequential improvement in volume Portfolio measures 8 development vs. Q2 2023 – continued impact from and trade 4 negotiations portfol
Slide 18: Consumer Brands: Business area performance
CONSUMER BRANDS Q3 2023 – Business Area Performance LAUNDRY & HAIR OTHER CONSUMER HOME CARE BUSINESSES SALES OSG SALES OSG SALES OSG €1,726m 5.8% €779m 8.9% €190m -0.6% Very strong growth in both Double-digit increase in Consumer Very strong growth in Laundry Care and Home Care mainly driven by Styl
Slide 19: Raised outlook 2023
RAISED OUTLOOK 2023 ORGANIC ADJUSTED ADJUSTED SALES GROWTH EBIT MARGIN EPS1 GROUP 3.5 to 4.5% 11.5 to 12.5% +15 to +25% previously: 2.5 to 4.5% previously: 11.0 to 12.5% previously: +5 to +20% ADHESIVE 2.5 to 3.5% 14.0 to 15.0% TECHNOLOGIES previously: 2.0 to 4.0% previously: 13.5 to 15.0% CONSUMER
Slide 20: Agenda
AGENDA 01 Key Developments 02 Business Performance Q3 2023 & Outlook 03 Key Take-Aways & Closing 20 HENKEL Q3 2023
Slide 21: Key take-aways
KEY TAKE-AWAYS ▪ Henkel with sustained growth momentum in Q3 2023 – continued strong pricing and sequentially improved volume development in both business units ▪ Adhesive Technologies acquires attractive adjacent business Critica Infrastructure underpinning M&A growth journey ▪ Consumer Brands merg
Slide 22: Questions & Answers
QUESTIONS & ANSWERS 22 HENKEL Q3 2023
Slide 23: Upcoming events
UPCOMING EVENTS Tbd – HAT Teach-in? 2023 NOV 9 | Q3 2023 RELEASE Quarterly Statement 2024 MAR 4 | FY 2023 RELEASE Annual Report + Sustainability Report APR 22 | AGM Annual General Meeting MAY 8 | Q1 2024 RELEASE Quarterly Statement 23 HENKEL Q3 2023
Slide 24: Thank you
THANK YOU. 24 HENKEL Q3 2023
Slide 25: Balanced and diversified portfolio
BALANCED AND DIVERSIFIED PORTFOLIO FY 20221 1% 40% 50% 49% ADHESIVE €22.4bn CONSUMER 27% SALES TECHNOLOGIES BRANDS 34% 27% 7% 16% 1% 10% Corporate €11.2bn €10.9bn SALES 33% SALES 7% 33% 66% Europe Asia/Pacific IMEA Latin America Mobility & Electronics Laundry & Home Care North America Corporate Pack
Slide 26: Sales by business unit and business area Q1 2023 – Q3 2023
SALES BY BUSINESS UNIT AND BUSINESS AREA Q1 2023 – Q3 2023 - Q1 2023 Q2 2023 H1 2023 Q3 2023 1-9 2023 €m Sales YoY OSG Sales YoY OSG Sales YoY OSG Sales YoY OSG Sales YoY OSG HENKEL GROUP 5.609 6.4% 6.6% 5,316 -5.8% 3.2% 10,926 0.1% 4.9% 5,440 -9.0% 2.8% 16,366 -3.1% 4.1% ADHESIVE 2.791 6.1% 6.8% 2,
Slide 27: Updated outlook 2023 selected additional KPIs
UPDATED OUTLOOK 2023 SELECTED ADDITIONAL KPIs CURRENCY IMPACT ON SALES Mid single-digit % negative1 M&A IMPACT ON SALES Mid single-digit % negative2 PRICES FOR DIRECT MATERIALS Low single-digit % increase1 € ~300m RESTRUCTURING EXPENSES Previously: € 300 – 350m € ~650m CAPEX Previously: € 650 – 750m
Slide 28: Find out more on henkel.com/ir
FIND OUT MORE ON HENKEL.COM/IR