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On our way… Analyst & Investor Meeting Munich, November 7, 2007 Alois Linder Adhesives Technologies

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1

On our way…

Analyst & Investor MeetingMunich, November 7, 2007

Alois Linder

Adhesives Technologies

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This information contains forward-looking statements which are based on current estimates and assumptions made by the corporate management of Henkel KGaA. Statements with respect to the future are characterized by the use of words such as “expect”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, and similar terms. Such statements are not to be understood as in any way guaranteeing that those expectations will turn out to be accurate. Future performance and results actually achieved by Henkel KGaA and its affiliated companies depend on a number of risks and uncertainties and may therefore differ materially from the forward-looking statements. Many of these factors are outside Henkel's control and cannot be accurately estimated in advance, such as the future economic environment and the actions of competitors and others involved in the marketplace. Henkel neither plans nor undertakes to update any forward-looking statements.

Disclaimer

3On our way November 7, 2007 – Henkel Adhesives Technologies

On Our Way…

We are on our way to be recognized as the world‘s

leading and

most competentcompany for adhesives, sealants andsurface treatments.

Today we show you how we will accomplish this.

4

Agenda

1. Facts on Global Adhesives Market

2. Facts on Henkel Adhesives Technologies

3. Vision & Strategy

4. Update Internal Merger Adhesives Technologies

5. Acquisition of National Starch Businesses

6. Summary

5

€18bn

€23bn

€10bn

Craftsmen &Consumer

Industry

World Core Market 2006: €51bn

Source: Henkel estimations

1 Facts on Global Adhesives Market November 7, 2007 – Henkel Adhesives Technologies

World Market for Adhesives, Sealants and Surface Treatments

CAGR 2006-2010: 3.5 - 4% CAGR 2006-2010: 4 - 4.5%

BuildingAdhesives

CAGR 2006-2010: 3.5 - 4%

CAGR 2006-2010: 3.5 - 4%

6

1. Henkel

2. Sika

3. National Starch

4. Bostik

5. RPM

6. ITW

7. HB Fuller

8. 3M

9. Mapei

10. Rohm & Haas

Competitive Environment

Top 10 companies (Sales ranking 2006)

€5.5bn

Industrial

Craftsmen & Consumer/ Building Adhesives

1 Facts on Global Adhesives Market November 7, 2007 – Henkel Adhesives Technologies

7

Henkel at the top of consolidation trend

Very fragmented market1,500+ mostly local/regional players

Only 10 players with sales > €500m

Trend towards consolidationRaw material suppliers going downstream

Private equity activities

Portfolio adjustments of competitors

1 Facts on Global Adhesives Market November 7, 2007 – Henkel Adhesives Technologies

Very Fragmented Market –Trend towards Consolidation

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Germany

5.05.5

6.5

FranceUSA

3.94.8

Japan UK Brazil

0.20.30.9

IndiaChina

[kg]

1 Facts on Global Adhesives Market November 7, 2007 – Henkel Adhesives Technologies

Adhesives use per capita (kg)

Source: Industrieverband Klebstoffe e.V.,Germany, 2006

Growth Potential inEmerging Markets

91 Facts on Global Adhesives Market November 7, 2007 – Henkel Adhesives Technologies

Growth Potential by SubstitutingCompeting Technologies

Global Fastening Market in Industrial Assembly (~ €55bn)

Structural adhesives can reach 20% share of the globalfastening market by 2015

Industrial Fasteners(Nailing, Screwing, Riveting)

Welding/Brazing

Laser4% 3%

Structural Adhesives

55%

18%10%

Source: ChemQuest, 2007

SolderingStaples & Tacks

10%

10

Industrialfasteners*,

staples & tacks

Welding,soldering,

brazing

Bonding,sealing

Join materials

* nailing, screwing, riveting

Bonding & Sealing Offering ClearAdvantages vs. Traditional Fastening

1 Facts on Global Adhesives Market November 7, 2007 – Henkel Adhesives Technologies

Value added

Reduce vibration and tension

No damage to material structure

( )Reduce volume & weight

( )Join thin materials

Even transfer of forces

Join different materials

Join heat-sensitive materials

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Agenda

1. Facts on Global Adhesives Market

2. Facts on Henkel Adhesives Technologies

3. Vision & Strategy

4. Update Internal Merger Adhesives Technologies

5. Acquisition of National Starch Businesses

6. Summary

12

Industry(3.5 bn. €)

Craftsmen & Consumer

(1.5 bn. €)

65%9%

26%

Transportation

Packaging

Durable Goods

Maintenance,Repair & Overhaul

ElectronicsMetal

Craftsmen

Consumer

2 Facts on Henkel Adhesives Technologies November 7, 2007 – Henkel Adhesives Technologies

Adhesives Technologies:Sales Split by SBU

Total sales 2006: €5.5bn

BuildingAdhesives

(0.5 bn. €)

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1. USA

2. Germany

3. France

4. China

5. Italy

Adhesives Technologies:Country Ranking

Top 10 countries Adhesives Technologies (Sales ranking 2006)

2 Facts on Henkel Adhesives Technologies November 7, 2007 – Henkel Adhesives Technologies

Sales Share Top 10: 70%

6. UK

7. Spain

8. Brazil

9. Russia

10. Mexico

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Financial Performance

Sales

EBIT

EBIT margin (%)

in mill. €

4,237

468

11.0

2005

5,008

530

10.6

5,510

579

10.5

11.5%

11.5%

---

2004 20062003

3,979

418

10.5

CAGR

~ €280m additional rawmaterial costs were absorbed by

countermeasures in 2 years

2 Facts on Henkel Adhesives Technologies November 7, 2007 – Henkel Adhesives Technologies

152 Facts on Henkel Adhesives Technologies November 7, 2007 – Henkel Adhesives Technologies

Organic sales growth: +6.8%Significantly outgrowing relevant markets (+3%)

Successful implementation of price increases(depending on product category & country)

Double digit sales growth in emerging markets

Gross margin improved vs. 1-9/2006

Adjusted EBIT growth >10%Adjusted for one-time items and restructuring charges

Highlights 1-9/2007

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≥ 5.0% p.a.

≥ 10.0% p.a.

Financial Targets

Organic Sales growth

EBIT growth (adjusted for FX)

Financial Targets

2 Facts on Henkel Adhesives Technologies November 7, 2007 – Henkel Adhesives Technologies

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Steady GrowingAdhesives Technologies Business

Diversified portfolio:Operating in 9 different and independent market segments (Consumer, Craftsmen, Building, Automotive, Packaging, …)

Broad technology base for differentiated product/solution offer

Well-balanced regional portfolio with strong presence in emerging markets

Steady growth of relevant markets:Average growth of 3% of world core market over the last 10 years (between 2% and 4%)

Constantly outgrowing our markets:Due to our diversified portfolio (markets, technologies, regions) average organic growth rates over last 10 years around 200 bp above average market growth

Steadily & strongly growing business

2 Facts on Henkel Adhesives Technologies November 7, 2007 – Henkel Adhesives Technologies

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Agenda

1. Facts on Global Adhesives Market

2. Facts on Henkel Adhesives Technologies

3. Vision & Strategy

4. Update Internal Merger Adhesives Technologies

5. Acquisition of National Starch Businesses

6. Summary

19

To be recognized as the world‘sleading and most competent

company for adhesives, sealantsand surface treatments.

3 Vision & Strategy November 7, 2007 – Henkel Adhesives Technologies

Vision Adhesives Technologies

most competent

20

Realizesustainableprofitable

growth

Top-line drivers Bottom-line drivers

Strategic Objectives

Realize successful breakthrough innovations

Strengthen the power of our brands and leverage the umbrella brand Henkel

Drive growth in emerging regions

Increase sales force efficiency

Improve cost structure across the entire value chain in:

ProductionDistributionAdministration

3 Vision & Strategy November 7, 2007 – Henkel Adhesives Technologies

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Strengthen and leverage the umbrella brand Henkel

Further develop and implement a global branding strategy

Manage a portfolio of strong global and regional brands as well as well-known local brands („local heroes“)

Position brands as premium brands allowing price premiums

Support premium positioning with consistent stream of innovations

Strengthen the Power of Brands and Leverage Umbrella Brand Henkel

Strong brands as key differentiator

3 Vision & Strategy November 7, 2007 – Henkel Adhesives Technologies

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Top 10 brands: 53% of sales

AdhesivesTechnologies

Top 10 Brands

3 Vision & Strategy November 7, 2007 – Henkel Adhesives Technologies

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EmergingMarkets

Share of Emerging Markets increasing to 40%+ by 2010

Drive Growth in Emerging Regions

Sales Split by Region (Sales 2006)

3 Vision & Strategy November 7, 2007 – Henkel Adhesives Technologies

Western Europe

North America

41%

33%

26%

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Two ways to serve our customers better: More effective - Better leverage our broad product portfolioMore efficient - Better steering of our sales force

Training of sales force (products, applications, pricing)

Calculation of “pocket margins” for customer portfolio management and product mix optimization

Development of clear business guidelines

3 Vision & Strategy November 7, 2007 – Henkel Adhesives Technologies

Increase Sales Force Efficiency

7,000+ sales reps interacting with 130,000+ customers

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Improve Cost Structure Across the Entire Value Chain: Production

3 Vision & Strategy November 7, 2007 – Henkel Adhesives Technologies

Continuous streamlining of production sites

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Improve Cost Structure Across the Entire Value Chain: Production

3 Vision & Strategy November 7, 2007 – Henkel Adhesives Technologies

Global siterationalization

Lean manufacturing initiatives in all major production sites

Focused production technology upgrades and automation

Positive processing cost development over the last 3 years

-14%

Processing costs

2004 2005 2006 1-9/07

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Improve Cost Structure Across the Entire Value Chain: Distribution

Strong cost control in freight and warehousing

3 Vision & Strategy November 7, 2007 – Henkel Adhesives Technologies

Strong cost control in freight and warehousing

Optimization of distribution network: Warehouse consolidation activities

Strong consolidation of logistics service providers (25% reduction over last 2 years)

Continued streamlining of warehouse/ distribution activities

Example Europe

28

Agenda

1. Facts on Global Adhesives Market

2. Facts on Henkel Adhesives Technologies

3. Vision & Strategy

4. Update Internal Merger Adhesives Technologies

5. Acquisition of National Starch Businesses

6. Summary

29

>60 projects launched to exploit cross-selling potential

Additional projects in preparation

Strategic Rationaleof internal merger: Implemented Measures:

4 Update Internal Merger Adhesives Technologies November 7, 2007 – Henkel Adhesives Technologies

Review of Strategic Rationale (1/2)

Supply chain organizations fully integrated

Two complementarybusinesses leading tobroad market / customercoverage

Accelerating growth worldwide

Combined marketpenetration in emergingmarkets

Use scale effects for furtherinvestments into marketing, distribution and innovation

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Strategy alignment process to cascade strategy to SBUs, regions and main functions

IT system harmonization completed

R&D organizations fully integrated into technology platform structure

Strategic Rationaleof internal merger: Implemented Measures:

Update Internal Merger Adhesives Technologies November 7, 2007 – Henkel Adhesives Technologies

Review of Strategic Rationale (2/2)

Further steps put on hold in view of National Starch acquisition

4

Generate common strengthby transferring existingknowledge & best practices(e.g. IT systems)

Leverage the full scope of current & future technologiesand make them available to all customers

31

Agenda

1. Facts on Global Adhesives Market

2. Facts on Henkel Adhesives Technologies

3. Vision & Strategy

4. Update Internal Merger Adhesives Technologies

5. Acquisition of National Starch Businesses

6. Summary

32

National StarchBusinesses to be acquired

5 Acquisition of National Starch Businesses November 7, 2007 – Henkel Adhesives Technologies

Electronic Materials(Sales 2006: €298m)

Adhesives(Sales 2006: €1,546m)

SpecialityStarchesSpecialityPolymers

38%52%

10%

FY 2006 sales, exchange rate £/€: 0.68

Businesses to be acquired

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Side by Side Analysis:Regional Portfolio

National StarchBusinesses

Adhesives Technologies Combined

13%

54%

26%

AP19%

47%

AP7%

LA

NA27%

7%

LA

NA38%

27%

29%

6%AP

LA

NA

EMEA EMEA EMEA

Further strengthening Asia Pacific

Acquisition of National Starch Businesses November 7, 2007 – Henkel Adhesives Technologies5

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By SBU

Scale Impact of Acquisition

By Region

Acquisition of National Starch Businesses November 7, 2007 – Henkel Adhesives Technologies

IndustrialAdhesives

Electronics

x 1.5

x 2

NorthAmerica

Asia/Pacific

x 2

Sales 2006 in bn €: Adh. Techn. National Starch Bus.

5

x 1.3

35

Scope Impact of Acquisition

Acquisition of National Starch Businesses November 7, 2007 – Henkel Adhesives Technologies5

Entering new markets, e.g. in:Non Wovens Hygiene

Adhesives used in baby diapers, adult incontinence products, feminine hygiene protection etc.

Athletic Footwear

Cleaners, primers, adhesives for sports shoes

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~70%

~30%Electronics

Adhesives €170-180m

€70-80m

Revenue synergies

Costsynergies

Synergiesby type

Synergies by business

Synergy Overview

~ €240-260m~ €240-260m

Overhead/Admin.

~30-35%

Purchasing& Production

Sales/Service& R&D

Synergies by function

~30-35%

~30-35%

Acquisition of National Starch Businesses November 7, 2007 – Henkel Adhesives Technologies

Overview Expected Synergies

5

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Synergy calculation based on bottom-up planning by experienced, cross-functional management team (internal view)

Experience from integration of Sovereign acquisition (2004)

Synergy figures well within the range of estimations by industry experts (external view)

Integration team incentivized related to integration milestones

Combined Henkel + National Starch business plan (incl. synergies) regular part of all managers’ yearly targets

Acquisition of National Starch Businesses November 7, 2007 – Henkel Adhesives Technologies

Cost & Revenue Synergies

5

38

Example Offensive Synergies (1/2)

Liofol flexible packaging business in Asia:Henkel’s flexible packaging business currently not present in Japan and Vietnam

National Starch with established local sales organizations, but without flexible packaging technology

Realize immediate market entry in Japan and Vietnam

Roll-out Liofol range via National Starch sales force

Leverage geographical coverage

Acquisition of National Starch Businesses November 7, 2007 – Henkel Adhesives Technologies5

39

Example Offensive Synergies (2/2)

Electronics business:Henkel with broad product portfolio, mainly serving mid-sized manufacturers

National Starch with focused product portfolio, with good relationships to big OEMs and contract manufacturers

Use National Starch customer relationships to offer Henkel’s broad product range

Leverage customer relationships

Acquisition of National Starch Businesses November 7, 2007 – Henkel Adhesives Technologies5

40

No Overlapin Top 5

Customers

Henkel National Starch*

Top CustomersElectronics Business

Texas Instruments

Kemet

Nokia

AVX Corp.

NXP

Amkor Electronics

ASE

Hewlett Packard

ChipPac

Siliconware

November 7, 2007 – Henkel Adhesives Technologies

* Source: ICI IR Seminar

Acquisition of National Starch Businesses5

41

Integration Process: 3 Phases

Implementation/Synergy capturingFirst 100 DaysPre-Day 1

Acquisition of National Starch Businesses November 7, 2007 – Henkel Adhesives Technologies

1 2 3

Aug. 13, 2007:

Take-over offerby Akzo Nobel for ICI

Back-to-back agreementAkzo Nobel – Henkel

Q2/2008:

Expected closing of Akzo Nobel/Henkel(Transfer of Nat. Starch businesses to Henkel)

State-of-the-art process to assure smooth integration & fullsynergy capturing; milestones of integration defined

5

42

Phase 1: Pre-Day 1

Acquisition of National Starch Businesses November 7, 2007 – Henkel Adhesives Technologies

Carve-OutAkzo Deal Execution

PreparatoryPeriod

1.1 1.2 1.3

November 05/06, 2007:EGM Akzo & ICI

January 02, 2008:Closing Akzo & ICI

Q2/2008:Closing Akzo & Henkel

Akzo merger control clearance

Henkel merger control clearanceCarve-out for National Starch businesses

Preparation for “Day 1“ well in plan

Day1

5

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State-of-the art integration process with external support to assure smooth integration and full synergy capturing

Roles and responsibilities early on clearly defined

Integration plan & milestones in place before closing

Regular updates on integration status and realized synergies

Most competent managers and specialists to be selected to lead future businesses

High respect for culture, know-how, capabilities and competences of the acquired businesses

Guiding Principles of Integration

Acquisition of National Starch Businesses November 7, 2007 – Henkel Adhesives Technologies5

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Agenda

1. Facts on Global Adhesives Market

2. Facts on Henkel Adhesives Technologies

3. Vision & Strategy

4. Update Internal Merger Adhesives Technologies

5. Acquisition of National Starch Businesses

6. Summary

45

Adhesives, Sealants and Surface Treatments market with further growth potential replacing traditional fastening methods

We have continuously outperformed the markets

Very strong portfolio of market segments, technology offer and regions as platform for future solid performance

New vision and strategy with strong focus on profitable growth

National Starch as transforming acquisition strengthening our electronics and Asian business and increasing our profitability

Summary: On Our Way…

Summary November 7, 2007 – Henkel Adhesives Technologies6

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Henkel is a leader with brands and technologies that make people's lives

easier, better and more beautiful.