Annual Report 2013

Risks and opportunities report

Major opportunity categories

Entrepreneurial opportunities are identified at Group level and in the individual business units, evaluated, and duly incorporated into the strategy and planning processes. We understand the opportunities presented in the following as potential future developments or events that could lead to a positive deviation from our guidance. We also assess price-related procurement market and financial opportunities.

Macroeconomic and sector-specific opportunities
Description of opportunities: Additional business opportunities would arise, should the uncertain geopolitical and macroeconomic situation in some regions such as Africa/Middle East or the economic conditions in individual sectors such as the electrical industry develop substantially better than expected.

Impact: The opportunities described could have a major impact on our earnings guidance.

Procurement market opportunities
Description of opportunities: Countervailing the procurement market risks listed (see here), opportunities may also arise in which the influencing factors described in this section develop in a direction that is advantageous to Henkel.

Impact: Low probability ratingrating
Assessment of the creditworthiness of a company as published by rating agencies.
, possible major impact on our sales and earnings guidance.

Financial opportunities
Description of opportunities: Countervailing the credit risks, liquidity risks, currency risks, interest rate risks, and risks arising from our pension obligations listed under the financial risks (see here), opportunities may also arise in which the influencing factors described in this section develop in a direction that is advantageous to Henkel.

Impact: We classify financial opportunities as follows:

  • Currency opportunities with a moderate probability of a major impact on our earnings guidance
  • Interest rate opportunities with a moderate probability of a minor impact on our earnings guidance
  • Opportunities arising from our pension obligations with a low probability of a major impact on our earnings guidance, but with a high probability of a major impact on our equity

Acquisition opportunities
Description of opportunities: Acquisitions are an essential component of our strategy. Only acquisitions that have been concluded are included in our guidance.

Impact: Large acquisitions could have a major impact on our earnings guidance.

Research and development opportunities
Description of opportunities: Opportunities arising from our predominantly continuous innovation process are an essential component of our strategy and are already accounted for in our guidance. There are additional opportunities in the event of product introductions that exceed our expectations of market acceptance, and in the development of exceptional innovations that have not yet been taken into account.

Impact: Innovations arising from future research and development could have a major impact on our sales and earnings guidance.