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Our strategic framework

Introducing our new strategy

In November 2012, we introduced our new strategy for 2016:

“We will outperform our competition as a globalized company with simplified operations and a highly inspired team!”

Our new strategy is built on the foundation of our corporate values and will drive our successful development in the coming years in order to achieve our long-term vision for Henkel: to become a global leader in brands and technologies. 

The basis for our new strategy was a detailed analysis of major long-term market trends. We identified three megatrends which will affect our different businesses over the next years: consolidation, emerging markets and speed.

  • Consolidation in our supplier, manufacturer and customer base as well as in our competitive environment will continue. Size will become a critical success factor in the future. Consequently, we need to grow our businesses.
  • We expect the shift of growth from mature to emerging markets to continue. As a result, we need to expand our already strong footprint in these markets over the coming years.
  • We anticipate highly dynamic market evolution, and faster decision-making by suppliers, customers and competitors. In addition, further digitalization will lead to changes in our market environment. We therefore need to continue simplifying our processes and increasing our operational excellenceA comprehensive program to structure and optimize all Henkel’s business processes based on customer needs, quality and efficiency.
    .

Financial targets 2016

We have defined ambitious financial targets for our company. By 2016, Henkel aims to grow sales to 20 billion euros, of which 10 billion euros will come from emerging markets. For adjusted earnings per preferred share (EPS) Henkel targets a compound annual growth rateYear over year rate of growth, e.g. of an investment, over a defined period.
(CAGR) of 10 percent between now and 2016.

These financial targets are based on organic growth, including continuous portfolio optimization, i.e. small and mid-sized acquisitions as well as divestmentDisposal, sale or divestiture of an asset, operation or business unit.
or discontinuation of nonstrategic activities. Potential major acquisitions or divestments are not built into our financial targets.

Introducing our strategy – around the world

In order to steer the focus of the entire organization toward our new strategy and ensure its successful implementation, we have defined four strategic priorities: Outperform – Globalize – Simplify – Inspire.

We made substantial efforts to inform all Henkel employees around the world immediately after the announcement of our new strategy. We presented and discussed our strategy, targets and priorities in detail with employees in more than 50 townhall meetings around the world – more than half of these townhall meetings were led by a member of the Management Board.

Our new strategy is complemented by our longterm sustainability strategy, which we announced at the beginning of 2012: by 2030, we aim to triple our resource efficiency (“Factor 3”). In order to make continuous progress toward this ambitious target, we defined intermediate targets at five-year intervals.

Our strategic framework