Annual Report 2009
A global team – winning together
UnternehmenThe Company
Henkel at a glance
Highlights of 2009
» Organic sales performance: –3.5 percent
» Laundry & Home Care: +2.9 percent
» Cosmetics/Toiletries: +3.5 percent
» Adhesive Technologies: –10.2 percent
» Share of sales accounted for by our growth regions:
increase of 1 percentage point to 38 percent
» Adjusted return on sales (EBIT): 10.0 percent
» Net working capital: improvement of 3.9 percentage
points to 7.8 percent of sales
» Net debt: reduced by 1.0 billion euros to
2.8 billion euros
Key financials
in million euros 2008 2009 +/–
Sales 14,131 13,573 – 3.9 %
Operating profit (EBIT) 779 1,080 38.6 %
Adjusted1) operating profit (EBIT) 1,460 1,364 – 6.6 %
Return on sales (EBIT) in % 5.5 8.0 2.5 pp
Adjusted1) return on sales (EBIT) in % 10.3 10.0 – 0.3 pp
Net earnings 1,233 628 – 49.1 %
Earnings after minority interests 1,221 602 – 50.7 %
Earnings per preferred share in euros 2.83 1.40 – 50.5 %
Adjusted1) earnings per preferred share in euros 2.19 1.91 –12.8 %
Return on capital employed (ROCE) in % 6.9 9.8 2.9 pp
Capital expenditures on property, plant and equipment 473 344 – 27.3 %
Research and development expenses
2) 429 396 – 7.7 %
Number of employees (annual average) 55,513 51,361 – 7.5 %
Dividend per preferred share in euros
0.53 0.53
3)
0.0 %
2) Includes restructuring charges of 52 million euros (2008) and 13 million euros (2009)
3) Proposed
Sales by region
1)
Eastern Europe, Africa/Middle East, Latin America, Asia excluding Japan
Western Europe 39 %
Growth
regions1) 38 %
Corporate 2 %
Japan/Australia/
New Zealand 2 %
North America 19 %
Corporate = sales and services not assignable to the individual business sectors
Sales by business sector
Cosmetics/
Toiletries 22 %
Laundry &
Home Care 30 %
Corporate 2 %
Adhesive
Technologies 46 %
» Global supplier of brands and technologies
» 133 years of brand success
» Competence in three business sectors:
» Laundry & Home Care
» Cosmetics/Toiletries
» Adhesive Technologies
The Company
Cosmetics/Toiletries
Leading market positions worldwide
Achieving profitable growth with
appealing innovations under our
strong brands, aligned to exacting
customer demands
Expanding our strong market
positions in Europe and North
America and selectively increasing
our presence in the growth regions
Adhesive Technologies
Leading our markets worldwide
Achieving profitable growth
through innovations under our
strong brands, efficient processes
and a firm focus on our customers
Developing new applications and
growth potential in all regions of
the world
Laundry & Home Care
Leading market positions worldwide
Achieving profitable growth
through innovation, strong brands
and a heightened focus on our
customer relationships
Further expanding our strong
market position in Europe and our
presence in the growth regions and
North America
Key financials
in million euros 2008 2009 +/–
Sales 4,172 4,129 –1.0 %
Operating
profit (EBIT)
439
501
14.0 %
Adjusted
1)
operating
profit (EBIT)
450
530
17.8 %
Return on
sales (EBIT)
10.5 %
12.1 %
1.6 pp
Adjusted
1)
return on sales
(EBIT)
10.8 %
12.8 %
2.0 pp
pp = percentage points
1)
Adjusted for one-time charges / gains and
restructuring charges
Key financials
in million euros 2008 2009 +/–
Sales 3,016 3,010 –0.2 %
Operating
profit (EBIT)
376
387
3.1 %
Adjusted
1)
operating
profit (EBIT)
379
387
2.1 %
Return on
sales (EBIT)
12.5 %
12.9 %
0.4 pp
Adjusted
1)
return on sales
(EBIT)
12.6 %
12.9 %
0.3 pp
pp = percentage points
1)
Adjusted for one-time charges / gains and
restructuring charges
Key financials
in million euros 2008 2009 +/–
Sales 6,700 6,224 –7.1 %
Operating
profit (EBIT)
658
290
–55.9 %
Adjusted
1)
operating
profit (EBIT)
680
506
–25.6 %
Return on
sales (EBIT)
9.8 %
4.7 %
–5.1 pp
Adjusted
1)
return on sales
(EBIT)
10.1 %
8.1 %
–2.0 pp
pp = percentage points
1)
Adjusted for one-time charges / gains and
restructuring charges
Major brands
Adhesive and sealant systems;
surface treatment products for
in dus trial applications in the auto-
motive, packaging, aircraft, electro-
nics, durable goods and metal sec-
tors, and for maintenance, repair
and overhaul applications; adhe-
sives and sealants for craftsmen
and consumers and for applications
in the home, school and office
Major brands
Hair shampoos and conditioners;
hair colorants; hair styling products;
soaps; shower gels, body wash and
bath products; deodorants; skin
creams; skin care products; dental
care and oral hygiene products;
hair salon products
Major brands
Heavy-duty detergents; fabric soft-
eners; laundry conditioning pro-
ducts; dishwashing products; all-pur–
pose cleaners; scouring agents; floor
and carpet care products; bath and
WC cleaners; glass cleaners; kitchen
cleaners; specialty cleaning products;
air fresheners and insecticides for
household applications
At a glance
Major innovations
Laundry & Home Care
Persil ActicPower is particularly eco-
nomical, offering a high yield plus
its full laundry power from just 15
degrees Celsius. Available in a small,
handy bottle. And Persil Hygiene
Rinse ensures enhanced laundry
hygiene, particularly at low wash
temperatures. www.persil.de
Somat 9 – nine functions for an even
better dishwashing result with the
addition of two new components: an
odor neutralizer to combat unpleasant
smells and an Extra-Dry function to
ensure that water runs evenly and
effectively from the washed items.
Launched in Western Europe and in
Central and Eastern Europe, Somat
Perfect Gel is the first multi-functional
gel to hit those machine dishwashing
product markets. www.somat.de
Marketed in the USA, innovative
Purex Complete 3in1 laundry sheets
combine the performance of a deter-
gent with a fabric softener while also
preventing the build-up of wash static
in the drier. Plus: CO2 emissions attri-
butable to transportation are reduced
by almost 70 percent and packaging
materials by some 45 percent.
www.purex.com
Major innovations
Cosmetics/Toiletries
Schwarzkopf Essential Color – our
first 100 percent permanent hair
colorant without ammonia and with
nature-based ingredients such as
lychee and white tea for a deeply lust-
rous color offering long-lasting gray
coverage. www.essentialcolor.com
Syoss – professional hair care at an
affordable price. Developed and tested
in cooperation with stylists, the for–
mulations offer salon-standard hair
beauty on a daily basis and are avail-
able in retail stores. The Syoss launch
was Europe’s most successful in the
hair care sector in 2009.
www.syoss.de
Dial AntiOx body wash with cran-
berries and anti-oxidant pearls – the
most successful body wash launch in
the USA. Gently cleans and protects
the skin from harmful environmental
influences. www.dialsoap.com
Major innovations
Adhesive Technologies
Loctite 5188 flange sealant is particu-
larly suitable for use in engines, gear
units and pumps. It remains super–
flexible yet adheres very well to metal-
lic substrates even after long exposure
to high temperatures and chemical
attack. www.loctite.com
Technomelt Supra Cool 130 – a newly
developed hotmelt adhesive for packag–
ing that works at a significantly lower
application temperature to reduce
energy consumption. It also offers
extremely high adhesive strength,
outstanding flowability and a substan–
tially wider range of application suit–
ability. www.technomelt.com
Major advancement in semiconductor
attachment technology – with Ablestik
SelfFilleting it is now possible to mount
miniature electronic components more
quickly and reliably than ever before.
All that is needed is a small drop of this
adhesive and the capillary force automa-
tic ally ensures that the substance is dis tri-
buted right to the edge of the component
joint – where it automatically stops.
www.henkel.com/ablestik
1
Annual Report 2009
The Company
We are successful because of our people. Only with talen ted,
experienced and well-trained employees can we succeed in
identifying and satisfying varying customer and consumer
needs. Determined to achieve our three strategic priorities,
we are committed to strengthening our global team. With
a highly skilled workforce of some 50,000, our brands and
our technologies, our objective is:
winning together.
Our three strategic priorities
Achieve
our full
business potential
Focus
more on
our customers
Strengthen
our global
team
Winning
Culture
2 Annual Report 2009
The Company
Employees from throughout the world give our company
its unique character. They are the foundation of our suc-
cess. As an international and innovative company, we are
committed to developing our people and continuously
extend ing the diversity of our team.
Our employees at a glance
50 – 65 years 17 %
Employees by gender
Male 68 %
Female 32 %
Employees by age group
16 – 29 years 19 %
30 – 39 years 34 %40 – 49 years 30 %
Employees by region
North America 12 %
Europe/Africa/
Middle East 63 %
Asia-Pacific 17 %
Latin America 8 %
» Globally structured
» Around 50,000 employees
Employees by function
Marketing, selling
and distribution 32 %
Production and
engineering 49 %
Research and development 5 %
Administration 14 %
3
Annual Report 2009
21 Group management report subindex
22 Corporate governance
34 Operational activities
34 Strategy and financial targets for 2012
37 Value-based management and control system
39 Business performance
45 Assets and financial analysis
48 Employees
51 Procurement
52 Production
53 Research and development
55 Marketing and distribution
56 Sustainability/Corporate
social responsibility
58 Business sector performance
71 Risk report
76 Forecast
78 Subsequent events
21 Group management report
79 Consolidated financial statements subindex
80 Consolidated statement of income
81 Consolidated balance sheet
82 Consolidated cash flow statement
83 Statement of comprehensive income
83 Statement of changes in shareholders’ equity
79 Consolidated financial statements
132 Auditor’s report
133 Responsibility statement
134 Corporate management of Henkel AG & Co. KGaA
142 Quarterly breakdown of key financials
143 Five-year summary
144 Credits
Financial calendar
84 Notes to the consolidated financial statements
140 Further information
Further information
You will notice a number of cross-references on the pages
of this Annual Report for 2009 indicating locations in this
publication, in our Sustainability Report for 2009 and on
the internet where you can find further information.
Annual Report
Sustainability Report
Internet
Contents
01 The Company
05 Foreword
09 Report of the Supervisory Board
12 Management Board
14 A global team – winning together
16 Shares and bonds
Kasper Rorsted
Chairman of the Management Board
The Company
5
Annual Report 2009
The Company » Foreword
2009 was a challenging year both for Henkel and for the world
economy as a whole, as the largest economic crisis in many
decades took its toll on us all. Despite the difficult business
environment, we continued to advance toward our targets,
making this anything but a lost year. We were able to convinc-
ingly demonstrate, even under adverse market conditions,
that we can act quickly and decisively, allowing nothing to
stand in the way of our continuing successful growth.
Laundry & Home Care and Cosmetics/Toiletries exhibited
strong growth, expanding their market positions in the
process; and as the year progressed, our Adhesive Technol-
ogies business also began to rebound from the effects of
the crisis.
Industrial production experienced a significant decline
in demand in a number of important segments, causing
the industrial businesses under our Adhesive Technologies
umbrella to suffer. However, private consumption was less
affected by the economic downturn. Due to the recession,
the price of crude oil fell during the first half of 2009; with
this, the cost of the related commodity prices also decreased,
reducing our own raw material costs. However, as the general
economic situation stabilized in the second half of the year,
raw material prices picked up again.
We responded consistently and effectively in all areas of
our company to the recessive market environment. Unfor–
tunately, this involved some difficult decisions regarding
redundancies. This was painful for us but nevertheless im-
portant in order to secure the long-term competitiveness
of our businesses.
The most important facts relating to fiscal 2009 are as
follows:
» Sales fell nominally by 3.9 percent to 13,573 million euros,
and organically by 3.5 percent.
» Adjusted
1)
operating profit came in at 1,364 million euros
compared to 1,460 million euros in the previous year.
» Adjusted1) net earnings after minority interests fell by
13.0 per cent to 822 million euros; and adjusted1) earnings per
preferred share decreased by 12.8 percent to 1.91 euros.
» There were excellent developments with respect to our net
working capital which decreased to 7.8 percent of sales –
the first time we have managed to bring this metric down
to below 10 percent.
» We were able to reduce our net debt by 1.0 billion euros
to 2.8 billion euros.
» The Management Board, Shareholders’ Committee and
Supervisory Board propose that the Annual General Meet-
ing approve an unchanged dividend of 0.53 euros per pre–
ferred share and 0.51 euros per ordinary share.
In recognition of this exceptional team performance, I would
like to extend my heartfelt thanks to all our employees for
their undoubted commitment and hard work!
Significant progress was made in 2009 in pursuit of our
three strategic priorities:
1. Achieve our full business potential
2. Focus more on our customers
3. Strengthen our global team
Innovations make strong brands even stronger. We generate
more than 30 percent of our sales with products launched
1) Adjusted for one-time charges/gains and restructuring charges
The Company » Foreword
6 Annual Report 2009
within the preceding three years. This makes us one of the
strongest innovators in our markets. Again in 2009, we intro–
duced numerous new product ideas into the marketplace,
enabling us to score heavily with our customers and con-
sumers. In addition to the sustainability initiatives relevant
to the entire company, we are focusing in our consumer
businesses on the ever more important aspects of care and
convenience. In the Adhesive Technologies business sector,
many of our innovations are aligned to new trends in ma-
terials, and applications in lightweight construction – for
example in the automotive and aircraft industries.
As part of our active portfolio management, we are aiming in
particular to further strengthen our leading brands. Today,
we already generate around 25 percent of our sales with
our three top brands – Schwarzkopf, Loctite and Persil. And
our ten largest brands account for more than 40 percent of
our revenues. Again last year, we eliminated a number of
marginal activities. In spring 2009, for example, we sold our
business with adhesive tapes under the brands Duck and
Painter’s Mate Green in North America. We also divested a
number of smaller brands from our Cosmetics/Toiletries
business sector in the United States.
The “Global Excellence” efficiency enhancement program,
initiated in February 2008 in order to secure the long-term
profitability and competitiveness of the Henkel Group, was
implemented significantly faster than initially planned.
Originally, our aim was to achieve annual savings of around
150 million euros starting in 2011. Following the accelerat-
ed execution of the program, we now expect to achieve or
exceed these savings as of this year.
The integration of the National Starch businesses we ac–
quired also proceeded more rapidly than originally planned.
Here, we exceeded the synergies anticipated for 2009.
Our customers are at the center of everything we do. In
order to further cement our employees’ awareness in this
regard, we made 2009 our Year of the Customer, reviewing
our organizational structures in order to determine where
and how we might achieve greater customer focus. And we
were able to augment our customer contacts at the highest
management level with our “Top-to-Top” initiative, with
the objectives of achieving a common strategic alignment,
creating tangible added value for our customers and fully
and consistently utilizing our own competences – such as
our recognized leadership in the field of sustainability/
corporate social responsibility (CSR).
Sustainability and responsibility are among the salient
features of Henkel’s operations. But here too, we want to
further improve. The importance of this field of competence
becomes particularly apparent in periods of crisis. Hence we
again invested a great deal of time and effort pursuing our
ambitious sustainability targets in 2009, further reducing
energy and water consumption, decreasing waste volumes
and cutting the number of occupational incidents at our
sites. By reducing energy consumption in production and by
manufacturing energy-efficient products, we are able to re-
duce the CO
2
emissions – the carbon footprint – attributable
to our sphere of influence. Henkel’s corporate philosophy
dictates that every newly introduced product must make a
contribution to sustainable development.
Our employees have been the foundation of our success
for 133 years, and it is to them that we are dedicating this
year’s annual report with the motto: A global team – win-
ning together. With open feedback, clear recognition of
individual performance and tailored development plans
– in short, the right mix of challenge and reward – we are
engaging and enhancing the motivation and capabilities of
our people. In this way, we are able to ensure that our global
team is always a match for the challenges it encounters,
providing us with true competitive advantage as we take
our businesses forward.
The past financial year saw us redefine our personnel
strat egy, restructure our human resources organization
and further simplify our processes. Using a modern talent
The Company
Dr. Simone Bagel-Trah
Chairwoman of the Shareholders’ Committee
and of the Supervisory Board
9
Annual Report 2009
The Company » Report of the Supervisory Board
Report of the Supervisory Board
Fiscal 2009 was an eventful year. Thanks to its dedicated team,
Henkel succeeded in coping with a difficult economic envi–
ronment by playing to the strengths inherent in each of its
business sectors. The two consumer goods businesses Laundry
& Home Care and Cosmetics/Toiletries again made outstanding
contributions to consolidated sales and earnings in 2009, while
the industrial operations under the Adhesive Technologies
business sector recovered remarkably from the consequences
of the economic crisis in the course of the year.
All our employees around the world deserve great recog-
nition for these achievements. On behalf of the Supervi–
sory Board, I would therefore like to give my thanks to all
Henkel personnel for their dedication to our common cause.
I would also like to express my gratitude to the members of
the Management Board and the Works Councils for their
constructive support and close cooperation.
And the Supervisory Board also thanks you, our share-
holders, for the loyalty and trust you have shown in our
company, its management, its employees, its products and
its strategy.
Again in fiscal 2009, the Supervisory Board performed the
duties incumbent upon it according to the requirements of
legal statute, the corporation’s Articles of Association and
applicable procedural rules.
Collaboration with the Management Board
During the reporting period, we carefully and regularly
monitored the work of the Management Board of Henkel
Management AG, which is the sole personally liable partner
of the corporation, advising and supporting it in its exe–
cutive duties, in the strategic further development of the
corporation and on individual matters of importance.
Our engagement with the Management Board was
characterized by an intensive and collaborative exchange
of information. The Management Board kept us regular–
ly informed in detail through both written and verbal
communications relating to major issues affecting the
corporation and the Group companies. These included,
in particular, aspects of the business situation and the
development of the Group, business policy, the profitabi-
lity of our operations, and our short-term and long-term
corporate, financial and personnel planning, as well as
capital expenditures and restructurings. In the course of
preparing the quarterly reports, details were provided of
the sales and profits of Henkel as a whole, with further
analysis by business sector and region. Outside Supervisory
Board meetings, the Chair of the Supervisory Board also
remained in regular contact with the Chair of the Manage–
ment Board for the purpose of regularly conferring on
current developments and salient business events.
Major issues discussed in Supervisory Board meetings
The Supervisory Board met a total of four times in fiscal
2009. At these meetings, we examined in detail the reports
of the Management Board and deliberated together with the
Management Board on the development of the corporation
as well as on strategic issues.
We dealt in depth with the effects of the difficult eco–
nomic situation and how it was influencing business per–
formance at Henkel. The Adhesive Technologies business
sector was the subject of particularly intensive discussion,
leading to appropriate measures being introduced to faci-
litate structural change and cost adjustment.
At the meeting of February 17, 2009, we concerned our–
selves primarily with the annual and consolidated financial
statements of 2008 as well as the proposals to be put before
the Annual General Meeting. We also dealt with the research
and development strategy of the company and issues relating
to our R&D organization.
Aside from general business development, at our meeting
of April 20, 2009, we also discussed in depth the integration
of the Adhesives and Electronic Materials divisions of National
Starch. We deliberated on our human resources diversity stra–
tegy, agreeing the objective of utilizing the different talents,
philosophies, perspectives and capabilities of our employees
in order to ensure our success in the competitive environment
while establishing a balanced and effective organization.
The main issues dealt with at our meeting of September
22 were the financial position and strategy of the Henkel
Group, the current status of our customer focus program
and the general strategy for brand consolidation and brand
management within our business sectors.
At our meeting of December 15, 2009, we conferred in de–
tail on our financial and balance sheet planning, including
aspects relating to our income statement and the budgets
of the individual business sectors. We also discussed issues
arising from the Accounting Law Reform Act [BilMoG] and
agreed a corresponding amendment to the procedural rules
governing the activities of our Audit Committee.
Members of the Supervisory Board of Henkel AG & Co.
KGaA are obliged to declare potential conflicts of interest
10 Annual Report 2009
The Company » Report of the Supervisory Board
to the plenary body and to refrain from participating in
matters which could lead to such conflict of interest. Dr.
h.c. Bernhard Walter, Member of the Supervisory Board of
Henkel AG & Co. KGaA, is also a member of the supervisory
board of Daimler AG. In order to avoid a potential conflict
of interest in conjunction with a now settled legal dispute
concerning sponsorship claims of Daimler’s Formula One
team, Brawn GP, Dr. h.c. Walter has, at his own request, been
excluded from discussion of this matter in the Supervisory
Board and has not received any information whatsoever in
this regard.
Committee activities
In order to efficiently comply with the duties incumbent upon
us according to legal statute and our Articles of Association,
we have assigned certain activities to two different commit–
tees: an Audit Committee comprised of three shareholder-
representative members and three employee-representative
members, and a Nominations Committee made up of three
shareholder-representative members. The memberships of
the committees are shown in the table on page 136.
These committees do the groundwork preparing for
certain resolutions passed by the plenary Supervisory Board;
they also take decisions related to specific responsibilities
assigned to them in accordance with relevant procedural ru–
les. In the year under review, the respective chairpersons of
the committees each provided detailed reports of the results
of their meetings to the plenary Supervisory Board.
The Audit Committee met four times in 2009. During
these sessions, the members primarily reviewed the quar–
terly reports and the half-year financial report, discussing
their contents with the Management Board. The meeting
of August 3, 2009, at which the half-year financial report
was discussed, was also attended by the auditor which sub–
mitted a report on the results of its review. This gave rise
to no objections.
Further issues of importance included the implications
of the Accounting Law Reform Act with respect to the work
of the Audit Committee, and also the modifications required
to relevant procedural rules. We further deliberated on the
question of the effectiveness of Henkel’s internal control
and risk management system, and the status reports of
the Chief Compliance Officer and of the Head of Internal
Audit. The audit plan submitted by Internal Audit was also
approved at this session.
The Audit Committee mandated the external auditor,
pursuant to the latter’s appointment by the 2009 Annual
General Meeting, to audit the annual and consolidated fi–
nancial statements for fiscal 2009, at the same time defining
the main areas on which the audit was to concentrate. The
audit fee was also established.
At the meeting of February 22, 2010, the Audit Committee
discussed together with the external auditor the annual and
consolidated financial statements for fiscal 2009 and also
the risk report, thereupon preparing the corresponding
resolutions for consideration by the plenary Supervisory
Board. The Committee also made recommendations to the
Supervisory Board regarding its proposal for the appointment
by the Annual General Meeting of the external auditor for
the subsequent financial year. A declaration from the auditor
relating to its independence was duly received; the auditor
likewise provided details of the non-audit services rendered
in fiscal 2009 and those envisaged for fiscal 2010.
The Nominations Committee made appropriate recom–
mendations in preparation for the resolution to be formu-
lated by the Supervisory Board and placed before the 2010
Annual General Meeting with respect to the upcoming sup–
plementary elections to the Supervisory Board.
Corporate governance and declaration of compliance
In 2009, the Supervisory Board consulted on issues relating
to corporate governance, and in particular, the latest editi-
on of the German Corporate Governance Code. For details
relating to the corporation’s corporate governance policy,
please refer to the corporate governance report on pages 22
to 26, with which we fully acquiesce.
At the meeting of February 23, 2010, we discussed and
approved the joint Declaration of Compliance of the Ma–
nagement Board, the Shareholders’ Committee and the
Supervisory Board with respect to the German Corporate
Governance Code for 2010. The full wording of the current
and the previous declarations of compliance can be found
on the company website www.henkel.com.
Efficiency review
The Supervisory Board and the Audit Committee perform
an internal review of their operational efficiency at regular
intervals on the basis of comprehensive checklists. These
include questions relating to corporate governance and
potential for further improvement.
Corresponding internal reviews were conducted in the
period under review. At the meetings of the Audit Commit–
tee on February 22, 2010, and of the Supervisory Board on
February 23, 2010, the results of these self-assessments were
discussed in detail. There were no reservations with respect
to the operational efficiency of either the Supervisory Board
or the Audit Committee, nor with respect to the requisite
independence of their members.
11
Annual Report 2009
The Company » Report of the Supervisory Board
Annual and consolidated financial statements; audit
The annual financial statements of Henkel AG & Co. KGaA and
the management report have been prepared in accordance
with the provisions of the German Commercial Code [HGB].
The consolidated financial statements and the Group manage–
ment report have been prepared according to International
Financial Reporting Standards (IFRS) as endorsed by the Euro–
pean Union, supplemented by the provisions under commer–
cial law applicable according to Clause 315a (1) HGB.
The auditor appointed for 2009 by the last Annual Ge–
neral Meeting – KPMG AG Wirtschaftsprüfungsgesellschaft
(KPMG), Berlin – has examined the 2009 annual financial
statements of Henkel AG & Co. KGaA and the 2009 consolida–
ted annual financial statements, including the management
reports, in compliance with the generally accepted standards
for the audit of financial statements promulgated by the
Institut der Wirtschaftsprüfer (IDW) and – in the case of
the consolidated financial statements – in supplementary
compliance with International Standards on Auditing (ISA),
and has issued them with an unqualified opinion.
KPMG reports that the annual financial statements give
a true and fair view of the net assets, financial position and
results of operations of Henkel AG & Co. KGaA in accordance
with generally accepted German accounting principles, and
that the consolidated financial statements give a true and
fair view of the net assets, financial position, results of opera–
tions and cash flows of the Group for the year under review,
in compliance with International Financial Reporting Stan–
dards. KPMG further confirms that the consolidated financial
statements and Group management report for the year under
review meet the requirements of Clause 315a (1) HGB.
The annual financial statements and management report,
consolidated financial statements and Group management
report, the audit reports of KPMG and the recommendations
by the personally liable partner for the appropriation of the
profit made by Henkel AG & Co. KGaA were laid before all
members of the Supervisory Board in good time. We exami–
ned these documents and discussed them at our meeting of
February 23, 2010 attended by the auditor, which reported
on its main audit findings. We received the audit reports
and voiced our acquiescence therewith. Having received the
final results of the review conducted by the Audit Committee
and concluded our own examination, we see no reason for
objection. At our meeting of February 23, 2010, we approved
the annual financial statements, the consolidated financial
statements and the management reports as prepared by the
personally liable partner.
We discussed the recommendation by the personally
liable partner for appropriation of the profit of Henkel AG &
Co. KGaA, taking into account the financial and earnings po–
sition of the corporation, and expressed our endorsement of
said recommendation. At this meeting, we also ratified our
proposals for resolution to be presented before the Annual
General Meeting relating to the appointment of the external
auditor for the next financial year, taking into account the
recommendations of the Audit Committee, and discussed
the costs of the audit of the financial statements.
Risk management
Risk management issues were examined not only by the
Audit Committee but also in the plenary sessions of the
Supervisory Board. The emphasis here was on the risk ma-
nagement system in place at Henkel and any reportable
major individual risks. There were no identifiable risks that
could endanger the continued existence of the corporation
as a going concern. The structure and function of the risk
management system were also integral to the audit per–
formed by KPMG, which found no cause for reservation. It
is also our considered opinion that the risk management
system corresponds to the statutory requirements.
Changes in the Supervisory Board and the
Management Board
Dipl.-Ing. Albrecht Woeste, who joined our Supervisory Board
in 1988 and became its Chairman in 1990, resigned his offices
effective the end of September 22, 2009. Dr. Simone Bagel-Trah
was elected the new Chairwoman. Following a decision by Düs–
seldorf District Court, Mr. Johann-Christoph Frey was appointed
as a new shareholder-representative member of the Supervisory
Board, this appointment being limited in accordance with the
recommendations of the German Corporate Governance Code
to the end of the 2010 Annual General Meeting.
We expressed our deep gratitude to Dipl.-Ing. Albrecht
Woeste for his more than twenty highly successful years on
the Supervisory Board and his unwavering commitment to the
long-term success and solid financial policies of the company.
He was a champion of the fairness, mutual trust and respect
that characterize our corporate culture. With great pleasure,
we have appointed him Honorary Chairman of the Henkel
Group in recognition of his services to the corporation.
There were no changes to the Management Board in
2009.
Düsseldorf, February 23, 2010
The Supervisory Board
Dr. Simone Bagel-Trah (Chairwoman)
Sitting from the left:
Dr. Lothar Steinebach
Executive Vice President
Finance/Purchasing/IT/Law,
born 1948; with Henkel since 1980.
Kasper Rorsted
Chairman of the Management Board,
born 1962; with Henkel since 2005.
Standing from the left:
Dr. Friedrich Stara
Executive Vice President
Laundry & Home Care,
born 1949; with Henkel since 1976.
Hans Van Bylen
Executive Vice President
Cosmetics/Toiletries,
born 1961; with Henkel since 1984.
Thomas Geitner
Executive Vice President
Adhesive Technologies,
born 1955; with Henkel since 2008.
The Company
“ Diversity is a key factor in Henkel’s success. We want to have a versatile
team that is both motivated and capable while at the same time being
ready and willing to constantly improve. Standing shoulder to shoulder, we
will be able to meet and master the challenges that the future has in store.”
Kasper Rorsted
“ Profitable growth is achieved not just through isolated measures aimed
at increasing sales and earnings. It is also a function of the motivation felt
by our employees and their identification with our values and objectives.
Only with strong and committed teams will we be able to successfully de
vel op and sell products while also keeping our costs competitive. We have
a great team dedicated to achieving our ambitious goals. And we are dedi
cated to further strengthening and developing that team.”
Dr. Lothar Steinebach
“ Creativity and entrepreneurship are among the indispensable attributes
of our team. Only with these tools at our fingertips can we think beyond
the current status quo and develop true innovations capable of securing
profitable growth over the longer term. Our task is to give our employees
the motivation and the necessary freedom to be creative.”
Dr. Friedrich Stara
“ We are interested in our employees not just as factors of production but
also as people and colleagues. Trust, constructive criticism and communi
cation are essential tools that every manager must be able to use with ex
pertise. Leadership is a ‘people skill’ that has to be demonstrated at every
level – starting with the board.”
Hans Van Bylen
“ It is important that our people adopt an entrepreneurial approach, accept
responsibility and show the right kind of fighting spirit – for the sake of
our customers and for the sake of Henkel. Commitment and crea tive scope
are the yardsticks by which we gage ourselves and our team.”
Thomas Geitner
The Company » Management Board
The Company » A global team – winning together
“Strengthening our global team” is one of
the three strategic priorities that Henkel
is pursuing. As a global team, our aim is to
be successful in our markets and to win to-
gether with our customers. It is to this end
that we align the principles underlying our
human resources work, placing our focus
on the following five core elements:
Harnessing internationality and diversity
There are people from 116 nations wor–
king for Henkel. The number of company
employees engaged outside Germany is
continuously rising – and has now reached
more than 80 percent. However, it is not
just employees of different nationalities
but also a balance of gender and experi-
ence in our teams that serves to enrich our
corporate culture. Such a mix gives us a
decisive competitive advantage – because it
enables us to better understand our mar–
kets and therefore secure long-term success.
Talent identification and development
We assess all employees on an objective,
fair and transparent basis. In 2008, we intro–
duced a new process of appraisal and deve–
lopment for our managerial staff, applying
the same set of global criteria: in annual
“Development Round Tables,” line mana–
gers deliberate on the performance and
potential of their employees and prepare
individual development plans for them.
Differentiated compensation
We analyze the personal contribution
made by our employees to our corporate
success and link it in a clear and transpa-
rent manner to their individual compen-
sation. For this, the managers responsible
agree specific targets with their employees
and provide regular constructive feedback
regarding the attainment of those objecti-
ves, with the two parties jointly agreeing
on performance-promoting measures.
Providing clear feedback
Open feedback on the performance levels
achieved, with due reference to our ex-
pectations, is decisive for the success of
Henkel. It is the task of all line managers
to identify the strengths and development
potential of their employees and to discuss
with them how to best harness these. The
measures derived from such discussions
lead to performance enhancement and
enable each employee to be ideally deplo-
yed in accordance with their competences.
Succession planning
We further improved our succession plan-
ning in 2009 in order to ensure the best
possible assignment of personnel to the
most important managerial positions over
the short, medium and long term. Our ap-
proach is to identify suitable successors as
part of our talent management process and
to agree measures enabling their further
development. These will likely include spe-
cific training courses and job rotation on
the basis of our “Triple Two” program in
which up-and-coming managers are encou-
raged to work in two business sectors, in
two countries and in two functions.
A global team –
winning together
The Company » A global team – winning together
Human Resources at Henkel supports all the business sectors with tailored measures for the further
development of their teams while also helping the company to attract the best employees available.
From the left:
Zuzana SchützHalkova Kathrin Menges Edmundo Gonzales Dorian Williams Christina Rositzka
Henkel’s Head of HR in
Central and Eastern Europe
Head of Global HR at
Henkel
Manager – Remuneration
and Bonus Payments
Head of Henkel HR in
Africa/Middle East
International Job Rotation
Officer
16 Annual Report 2009
The Company » Shares and bonds
In the first three months of 2009, Henkel shares initially
weakened slightly, as did the market as a whole. Then there
was a further dip in Henkel share prices as a response to our
ad-hoc announcement of April 9, 2009. However, our shares
gained steadily in value thereafter and for the remainder
of the year. This price rise was boosted by the fact that an
increasing number of analysts and investors appeared to
feel that, although ambitious, our financial targets for 2012
were becoming increasingly achievable. Toward the end of
the year, our preferred shares began to consistently improve
on their year-high prices, completing a generally gratifying
performance for 2009 and substantially outperforming the
relevant benchmark indexes.
» Henkel share price outpaces overall market
» International, widely diversified shareholder
structure
» Capital market communication further extended
Henkel share prices experienced above-average increases in
2009. Thanks to signs of an end to the global recession and
the first positive growth forecasts for the world economy
in 2010, the DAX rose 23.9 percent compared to the closing
price at the end of 2008. The industry benchmark in the
form of the Dow Jones Euro Stoxx Consumer Goods index
increased by 31.5 percent. In this strong market environ–
ment, the price of Henkel’s preferred shares even outpaced
that increase, closing the year at 36.43 euros, 61.3 percent
above the prior-year level, while our ordinary shares closed
at 31.15 euros, a gain of 66.1 percent.
Shares and bonds
December 31, 1999:
22.07 euros
December 31, 2008:
22.59 euros