henkel global coporate strategies.ppt
DESCRIPTION
Case study, facts and global trendsTRANSCRIPT
HenkelStrategy
TownhallMeetings
Presenter: Bruno Piacenza
Henkel: Roadmap of long-term Strategy
Who will we be in 2016?
How do we get there?Where do we
want to go?What’s our starting point?Where are
we coming from?
2 Henkel Strategy2
We set a clear strategic direction & ambitious targets
3-5%
14%
> 10%
Org. Sales Growth (average)
EBIT Margin (2012)*
EPS-Growth (CAGR)*
* adjusted
3 Henkel Strategy
All strategic priorities were pursued consistently
4 Henkel Strategy4
Strong financial performance
Efficiency gains
Strengthened global footprint
Focus on brands & innovations
Customer focusLeadership in
sustainability
Performance culture
Improved diversity
Our progress is built on various drivers…
…and will continue
Henkel Strategy5
2008
Shift to Emerging Regions / Strong Mature MarketsShift to Emerging Regions / Strong Mature Markets
2012
Continuous efficiency gains incl. Shared ServicesContinuous efficiency gains incl. Shared Services
Shift of Manufacturing FootprintShift of Manufacturing Footprint
Strengthening of Top Brands / Reduction of BrandsStrengthening of Top Brands / Reduction of Brands
Vision & ValuesVision & Values
Sustainability Strategy Sustainability Strategy
Performance & Talent Management, “Vienna”Performance & Talent Management, “Vienna”
Targets 2016 & StrategyTargets 2016 & Strategy
Thank you!
We are on track! As one company – ONEHenkel!
6 Henkel Strategy
Henkel: Roadmap of long-term Strategy
Who will we be in 2016?
How do we get there?Where do we
want to go?What’s our starting point?Where are
we coming from?
Henkel Strategy7
Which megatrends will shape our markets
in the years to come?
How well is our portfolio positioned
against these trends?
What actions are necessary to capitalize on
these trends?
Henkel Strategy
1
2
3
Galileo – Core questions of our strategic review
8
Overview of megatrends and their implications
Trend Description
Consolidation of suppliers, manufacturers and buyers
Shift of market growth to Emerging Markets
Rapidly changing markets & faster transfer of information
Trend Implication
Increasing importance of competitive size
Increasing importance of Emerging Market presence
Increasing importance of operational excellence in processes and structures
Henkel Strategy9
Long-term market assessment
Active in markets of significant size
Markets are attractive in terms of profitability and offer long-term growth potential
Strong potential to expand our businesses
Strong ability to win in attractive markets
Henkel Strategy10
Leverage full potential in all businesses
11 Henkel Strategy
Consumer Business Industrial Business
Henkel: Roadmap of long-term Strategy
Who will we be in 2016?
How do we get there?Where do we
want to go?What’s our starting point?Where are
we coming from?
Henkel Strategy12
Overview of megatrends and their implications
Henkel Strategy13
Consolidation of suppliers, manufacturers and buyers
Shift of market growth to Emerging Markets
Rapidly changing markets & faster transfer of information
Trend Description Trend Implication
Increasing importance of competitive size
Increasing importance of Emerging Market presence
Increasing importance of operational excellence in processes and structures
EM sales
Total sales
EPS growth
Performance Dimensions 2016
NES [bn €]*
Henkel’s financial targets 2016
14 Henkel Strategy
* Incl. continuous portfolio optimization (without major divestments and acquisitions)
~20
14.1
20
~3.5 bn €
~2.5 bn €
201620122008
[bn €]
Henkel’s financial targets 2016
15 Henkel Strategy
* Incl. continuous portfolio optimization (without major divestments and acquisitions)
Step-change in scale
Outperform – Strong investments in categories
Globalize – Focus on regions with high potential
NES [bn €]*
EM sales [bn €]*
Henkel’s financial targets 2016
16 Henkel Strategy
* Incl. continuous portfolio optimization (without major divestments and acquisitions)
~10
5.2
~3 bn €
~2 bn €
10
201620122008
[bn €]
Henkel’s financial targets 2016
17 Henkel Strategy
* Incl. continuous portfolio optimization (without major divestments and acquisitions)
Accelerate growth in Emerging Markets
Go deep in existing Emerging Markets
Selectively enter country white spots
EM sales [bn €]*
EPS CAGR [%]*
Henkel’s financial targets 2016
18 Henkel Strategy
[€]
>10%
10%
2016201220082.19
* Incl. continuous portfolio optimization (without major divestments and acquisitions); adjusted per preferred share
Henkel’s financial targets 2016
19 Henkel Strategy
* Incl. continuous portfolio optimization (without major divestments and acquisitions); adjusted per preferred share
Balanced value creation through top & bottom line growth
Standardization & complexity reduction along entire value chain to drive profitability
Maintain strong cash orientation & financial discipline to secure “A flat/A2”-rating
EPS CAGR [%]*
Henkel’s financial targets 2016
NES [bn €]* EM sales [bn €]* EPS CAGR [%]*
Henkel Strategy20
* Incl. continuous portfolio optimization (without major divestments and acquisitions); EPS: adjusted per preferred share
Our Strategy is based on our Vision & Values
Customers People Financials
Sustainability Family
Henkel Strategy
A global leader in brands and technologies
21
Leading position
Global footprint
Leading processes
Strong & diverse team
Leading financial performance
Key success factors to achieve our Vision
Henkel Strategy
A global leader in brands and technologies
22
Leading position
Global footprint
Leading processes
Strong & diverse team
Leading financial performance
Key success factors to achieve our Vision
Henkel Strategy
#1 choice for customers & consumers
Innovation leader
Powerful brands
Balanced portfolio
A global leader in brands and technologies
23
outperform
globalized
simplified
inspired
We will
as a
with
and a highly
our competition
company
operations
team!
Henkel Strategy
Henkel Strategy24
outperform
globalized
simplified
inspired
We will
as a
with
and a highly
our competition
company
operations
team!
Outperform Globalize
Simplify Inspire
A global leader in brands
and technologies
Henkel Strategy
Henkel Strategy25
Henkel Strategy
Leverage potential in categories
OutperformFocus on regions
with high potential
Globalize
Drive operationalexcellence
SimplifyStrengthen our
global team
Inspire
A global leader in brands
and technologies
Henkel Strategy26
Active portfolio mgmt.
Leverage top brands
Powerful innovations
Focus on customers
Globalize
Simplify Inspire
OutperformOutperform
Henkel Strategy
A global leader in brands
and technologies
Henkel Strategy27
Outperform – Leverage potential in categories
Core Categories
Continuous investment in top positions
Investments in category and new segment expansion
Value Categories
Active Portfolio Management
Growth Categories
Leverage profit potential with adequate investment
Divest/exit businesses (~500 m €)
Henkel Strategy28
Outperform – Build on strong base
Consistent innovationprocess
Trend-based innovations
Customer relationship management
Consumer proximity
Focused & balanced brand portfolio
Strong growth of top brands
Brand consolidation
Brands Customers Innovations
Henkel Strategy29
Accelerate sales growth with top brands
Strong growth driven by innovations & further roll-out of global brands Further portfolio alignment towards umbrella brands
Strong growth driven by innovations & further roll-out of global brands Further portfolio alignment towards umbrella brands
Henkel Strategy30
in % of sales
20162008
Top10
Other
38%
62%
46%
54%
~60%
~40%
2012*
* estimate
Consistently drive trend-based innovations
AccessibleLuxury
Convenience &Superior Quality
Performance &Sustainability
Henkel Strategy31
Henkel Strategy
New R&D sites fostering consumer proximity
Planned new site
Significant expansion of R&D centers in all emerging regions Further leverage local competence
Significant expansion of R&D centers in all emerging regions Further leverage local competence
JohannesburgJohannesburg
Moscow*Moscow*
DubaiDubaiToluca*Toluca*
Sao PauloSao Paulo
PunePune
SeoulSeoul
* Significant expansion
32
Beauty Care
Meet-your-Customer
Center
Actively deploy customer focus
Laundry & Home Care
Shopper
Marketing
Adhesive Technologies
Technology &
Design Partnerships
Henkel Strategy33
Leverage strength in
Mature Markets
Expand footprint in
Emerging Markets
Globalize
Simplify Inspire
Outperform
A global leader in brands
and technologies
Henkel Strategy
Globalize
Henkel Strategy34
Globalize – Focus on regions with high potential
Continuation of profitable growth with strong cost focus
Acceleration of growth in existing Emerging Markets
Enter country white spots in selective Emerging Markets
Mature Markets:Leverage Strengths
Emerging Markets:Go Deep
Emerging Markets:Enter White Spots
Henkel Strategy35
Mature Markets – Further leverage strengths
Outperform our markets
Increase brand investments
Continue cost focus
Outperform our markets
Increase brand investments
Continue cost focus
2016 Higher profit contribution
More top positions
2016 Higher profit contribution
More top positions
Henkel Strategy36
Emerging Markets – Accelerate growth
Henkel Strategy
2016: Balanced EM footprint with 12 EM countries in Henkel Top 20
TurkeyRussia
Poland
Mexico
Korea
EgyptChinaBrazilAlgeria
Ukraine
India
UAE
37
Henkel Strategy
Henkel Strategy
Outperform Globalize
Simplify Inspire
A global leader in brands
and technologies
38
Increase capex spend by >40%* to ~2 bn €
Strong focus on IT with investment of ~140 m €
Structural shift to Emerging Markets
Strengthen top brands and innovations via higher
marketing investments
Invest in our businesses
* total 2013-2016 vs. 2009-2012
Henkel Strategy39
Acquisitions
Boosting GrowthIn Line with Strategy
Adhesives: Technology leadership
Laundry & Home Care/Beauty Care: Regions & categories
Restrictive evaluation and selection process
Centralized decision and execution
Integrated part of our overall strategy
Clear prioritization of categories and regions
Restrictive Selection
Henkel Strategy40
Cost efficiency
Best-in-class processes
Strong IT focus
Globalize
Simplify Inspire
Outperform
A global leader in brands
and technologies
Henkel Strategy
Simplify
Henkel Strategy41
Simplify – Drive operational excellence
IT as an enabler to drive performance
Simplified & standardized global IT structure
Foster leading sourcing
Continued expansion of shared services
IT FocusCost Efficiency Best-in-Class Processes
Further improve admin costs
Location footprint optimization
Further reduce NWC
Henkel Strategy42
Shared services expansion: >3,000 employees
Newly established Business Process Outsourcing hub in Bangalore/India Newly established Business Process Outsourcing hub in Bangalore/India
Bratislava
Mexico City
Bangalore Manila
BPO: India since 09/12
Captive SSCs
Hubs for Arabic speaking region & Greater China/N-E Asia Hubs for Arabic speaking region & Greater China/N-E Asia
Henkel Strategy43
Invest ~140 m€ in IT until 2016
# of processes# of processes
Horizon
~800
Today
~2,200
Past
>20,000
Reduce complexity & leverage one IT platform
Supply Chain Mgmt.APO
SSC IT SolutionsGlobal integration
Promotion SpendPlanning & management
Global Henkel IT Platform: Horizon (SAP)
44 Henkel Strategy
Strong leadership
Talent & performance
focus
Diverse teams
Globalize
Simplify Inspire
Outperform
A global leader in brands
and technologies
Henkel Strategy
Inspire
Henkel Strategy45
Inspire – Strengthen our global team
DiversityTalent & Performance
Attract the best talents
Reward performance
Set clear expectations
Develop strong leaders
Leverage diversity as key success factor
Leadership
Henkel Strategy46
Diverse teams as key success factorNationality/Culture
Gender
Age/Seniority
Foster internationality in our teams
Increase female share by systematic career development
Leverage experience of senior colleagues
47 Henkel Strategy
Strong Impact around the GlobeGlobal Roadshow of Board Members
26 Locations26 Locations26 Locations26 Locations 22 Countries22 Countries22 Countries22 Countries
Bangkok Barcelona Bratislava Breda Bridgewater
Dubai Düsseldorf Istanbul London Manila
Mexico City Milano Moscow Mumbai Osaka
Paris Rocky Hill Sao Paulo Scottsdale Seoul
Shanghai Singapore Stockholm Tokyo Vienna Yokohama
Henkel Strategy48
outperform
globalized
simplified
inspired
We will
as a
with
and a highly
our competition
company
operations
team!
Summary: Henkel Strategy
Henkel Strategy49
outperform
globalized
simplified
inspired
Outperform Globalize
Simplify Inspire
A global leader in brands
and technologies
Summary: Henkel Strategy
Henkel Strategy50
Summary: Strategic Framework
A global leader in brands and technologies
Customers People Financials Sustainability FamilyValues
Vision
Targets 20 bn € SALES
10 bn €EM SALES
10 %EPS CAGR
Strategy Outperform Simplify InspireGlobalize
Vision
Values
Strategy
Targets
Henkel Strategy51
Thank you!
Henkel Strategy52