Annual Report 2013

Fundamental principles of the Group

Strategy and financial targets 2016

In November 2012, we presented our Strategy 2016 based on thorough analysis of the long-term megatrends that are relevant for Henkel, and of Henkel's individual business units. As a result, we see considerable potential, both for further organic growth and for enhanced profitability, in all three business units.

Three megatrends played a key role in the definition of our new financial targets:

  1. We expect progressive consolidation among our competitors, customers and suppliers. Size will become an increasingly important factor for our ability to compete over the long term. As such, increasing our sales is essential to allow us to continue to operate successfully in our markets in the future.
  2. The shift of economic growth to the emerging markets of Eastern Europe, Africa/Middle East, Latin America and Asia (excluding Japan) will continue. This will require Henkel to steadily expand its position in these important markets and further increase sales in emerging markets.
  3. The speed and volatilityvolatility
    Measure of fluctuation and variability in the prices quoted for securities, in interest rates and in foreign exchange rates.
    of our markets will remain high and may even increase further. This requires processes and structures that are more flexible and more efficient, to enable us to respond to changes faster than our competitors. We therefore want to continuously improve our operational excellenceoperational excellence
    A comprehensive program to structure and optimize all Henkel’s business processes based on customer needs, quality and efficiency.
    and deliver outstanding financial performance.

This is why

     

  • absolute sales of the corporation as a whole,
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  • sales in emerging markets, and
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  • growth in earnings per preferred share (EPS) form the cornerstones of our financial targets through 2016.
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