EANS-News: Henkel AG & Co. KGaA / Henkel delivers sales and earnings at record levels

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annual report/annual result/Henkel, Press Conference

Düsseldorf (euro adhoc) - March 8, 2012

Ambitious 2011 targets achieved

Henkel delivers sales and earnings at record levels

• Sales increase of 3.4% to 15,605 million euros (organic: +5.9%)
• Adjusted* operating profit: plus 9.0% to 2,029 million euros
• Adjusted* EBIT margin: plus 0.7 percentage points to 13.0%
• Adjusted* earnings per preferred share (EPS): plus 11.3% to 3.14 euros
• Double-digit increase in emerging markets (organic: +10.8%)
• Higher dividend proposed: plus 11.1% to 0.80 euros per preferred share
• 2012 financial targets reconfirmed

Düsseldorf - "2011 was another very successful year for Henkel.
Despite major challenges in a volatile economic environment, we
fully achieved our ambitious targets - and even overdelivered on
some of them. Sales and profits are higher than ever before," said
Henkel CEO Kasper Rorsted. "A major factor driving Henkel´s
strong performance was the further expansion of our position in
the emerging markets, where we once again registered double-digit
growth. We made considerable progress in 2011, establishing a
strong platform for Henkel´s future. Thus, we are very confident
of achieving the targets for fiscal 2012 that we set in 2008."

For the fiscal year 2012, Rorsted provided the following
guidance: "The economic environment remains challenging. It is
significantly more volatile today than in the past. As a
consequence we need to constantly adapt in order to respond
quickly and flexibly to changes in our markets. However, we consider
Henkel to be well-positioned. We expect organic sales growth for
the full fiscal year to be between 3 and 5 percent. We also
expect to increase our adjusted EBIT margin to 14 percent and
improve adjusted earnings per preferred share by at least 10
percent."

Operating in a challenging economic environment, Henkel increased
sales in fiscal 2011 to 15,605 million euros, a rise of 3.4
percent compared to the prior-year figure. Organic sales, which
exclude the impact of foreign exchange and
acquisitions/divestments, increased by an even stronger 5.9 percent.

All the company´s business sectors contributed to this positive
development, further expanding their market shares in the
relevant markets. Adhesive Technologies increased sales organically
by 8.3 percent to a new high of 7,746 million euros. The
Cosmetics/Toiletries business sector continued its strong growth
trend of recent years and, with organic sales growth of 5.4
percent, grew significantly stronger than the predominantly declining
market. Laundry & Home Care achieved a solid improvement in organic
sales of 2.9 percent in a slightly declining market.

After allowing for one-time gains, one-time charges and
restructuring charges, adjusted operating profit improved by 9.0
percent, from 1,862 million euros to 2,029 million euros, with all
three business sectors contributing. Operating profit (EBIT)
totaled 1,857 million euros and was 7.8 percent above the
comparable prior-year level.

Despite the substantial increase in prices on the procurement
markets, adjusted return on sales (EBIT margin) improved 0.7
percentage points, from 12.3 percent to 13.0 percent, thus achieving
Henkel´s guidance. Return on sales came in at 11.9 percent,
following 11.4 percent in the previous year.

Financial result improved by 16 million euros to -155 million
euros, due primarily to lower net debt. The tax rate was 24.6
percent, 1.8 percentage points lower than prior year.

Adjusted net income for the year after deducting non-controlling
interests rose by 11.4 percent compared to the previous year, from
1,217 million euros to 1,356 million euros. Net income for 2011
was 1,283 million euros compared to 1,143 million euros in 2010.
After deducting non-controlling interests of 30 million euros,
net income for the year came in at 1,253 million euros (previous
year: 1,118 million euros). Adjusted earnings per preferred share
(EPS) rose by 11.3 percent to 3.14 euros compared to 2.82 euros in
the previous year. The nominal figure was 2.90 euros versus 2.59
euros in 2010.

The Management Board, Supervisory Board and Shareholders´
Committee will be proposing to the Henkel Annual General Meeting
to increase the dividend per preferred share to 0.80 (previous
year: 0.72) euros and the dividend per ordinary share to 0.78
(previous year: 0.70) euros.

The ratio of net working capital to sales was 7.3 percent, slightly
above the prior-year level. Net debt as of December 31, 2011 was
1,677 million euros, 666 million euros below the prior-year level.

Business sector performance

Laundry & Home Care achieved an increase in organic sales of 2.9
percent, thus substantially outstripping its slightly declining
relevant markets. Average selling prices rose by 1.6 percent, while
volume increase contributed 1.3 percent to organic sales growth.
Nominally, sales declined slightly by 0.3 percent to 4,304 million
euros. The increase in market shares was mainly driven by the
positive development in both Europe and North America.

All regions contributed to the solid business performance
achieved. Western Europe posted an increase in organic sales,
benefiting from a solid performance in Germany. In North America, a
slight increase in sales was achieved in an intensely
competitive and appreciably declining market. Developments in
the emerging markets were strong across the board.

Adjusted operating profit rose by 1.4 percent to 570 million
euros. Adjusted return on sales increased by 0.2 percentage points
to 13.2 percent. Fiscal 2011 was generally characterized by high
raw material price increases. However, through product price
increases, particularly in the second half of the year, and
ongoing measures to reduce costs and increase efficiency in both
production and supply chain, the negative impact caused by the
strong rise in material costs was extensively offset. Due to
higher restructuring charges, nominal operating profit amounted to
511 million euros versus 542 million euros in the previous year.

Again in 2011, the Cosmetics/Toiletries business sector continued
its strong growth path of recent years and, with organic growth of
5.4 percent, once more significantly outperformed its relevant
markets. The foundation for this success was again provided by a
strong innovation program. Nominally, sales rose by 4.0 percent,
reaching 3,399 million euros.

The business sector generated growth in all regions, with
emerging markets growing double-digits. The strongest rises were
once again posted by the emerging markets of Africa/Middle
East, Latin America and Asia (excluding Japan). Solid growth
was also achieved in Eastern Europe. Sales likewise increased
in the mature markets in all regions. The mature markets in
Asia- Pacific experienced very strong growth. In Western Europe and,
in particular, North America, the growth achieved was higher
than that of the relevant markets.

Adjusted operating profit significantly increased versus prior
year, by 10.5 percent to 482 million euros, the business sector´s
highest earnings figure to date. As a result, adjusted return on
sales rose by 0.9 percentage points to 14.2 percent, likewise
reaching a new high. The foundation for this was provided
partly by measures to reduce costs and increase efficiency,
which helped to overcompensate the negative impact caused by the
increase in material costs. In addition, the strict cost management
approach contributed to margin improvement. Operating profit
increased compared to the previous year by 14.6 percent to 471
million euros, likewise reaching a new high.

2011 saw the Adhesive Technologies business sector continue its
profitable growth trend. In an increasingly difficult economic
environment, sales improved nominally by 6.0 percent to a new high
of 7,746 million euros. At 8.3 percent, organic growth was once
again significantly higher than that of the relevant markets.
This very strong performance was achieved through both price
and volume increases.

With growth in the mid-single-digit percentage range, the mature
markets of Western Europe and North America showed strong
expansion overall. In the emerging markets, Henkel again generated
disproportionate growth in the double- digit range, with the highest
rates of increase occurring in the Eastern Europe region.

Once again, adjusted operating profit rose significantly compared to
the prior year, by 14.7 percent to 1,075 million euros. As a result,
adjusted return on sales improved by 1.1 percentage points to
another new high of 13.9 percent. With an EBIT of 1,002 million
euros, operating profit passed the 1 billion euro mark for the first
time.

Regional performance

In the highly competitive market environment of Western Europe, sales
increased by 2.8 percent to 5,624 million euros. Organic sales
growth amounted to 2.3 percent, driven primarily by expansion in
Germany and France. Sales in Eastern Europe rose by 6.2 percent to
2,813 million euros. Organic sales growth here was an impressive
10.3 percent, generated primarily by the businesses in Turkey and
the adhesives business in Russia. Growth in the Africa/Middle East
region was adversely affected by the political unrest in some
countries. Sales rose nominally by 3.7 percent to 934 million
euros, although organic sales growth did pass the double-digit
mark with a 10.0 percent increase, achieved as a result of
double-digit growth rates in the United Arab Emirates, Saudi
Arabia and Algeria.

Due to foreign exchange factors, sales of the North America region
decreased slightly, by 0.3 percent to 2,716 million euros. Despite a
reluctant consumer climate in the USA, organic sales growth of the
region came in at 4.4 percent. The Latin America region continued
to develop very strongly, posting sales growth of 8.4 percent to
1,065 million euros. The double-digit organic sales growth of
11.0 percent was driven in particular by Henkel´s business
performance in Mexico, Brazil and Venezuela. Within
Asia-Pacific, the consequences of the natural disaster in Japan
exerted a dampening influence on regional sales growth. This
amounted to 5.9 percent, taking the total to 2,296 million euros.
With an organic growth rate of 8.6 percent, however, the region
continued to show a very strong development, driven particularly
by double- digit growth rates in China, India and South Korea.

Sales in the emerging markets of Eastern Europe, Africa/Middle
East, Latin America and Asia (excluding Japan) increased by 6.2
percent to 6,512 million euros. Organic growth reached 10.8
percent, with contributions coming particularly from the
Adhesive Technologies and Cosmetics/Toiletries business sectors,
both of which posted double-digit increases. The share of
Henkel´s sales accounted for by the emerging markets rose from 41 to
42 percent.

Fourth quarter 2011

In the fourth quarter of 2011, Henkel increased sales versus the
prior-year period by 1.9 percent to 3,800 million euros. Adjusted
for foreign exchange, sales improved by 2.8 percent. Organic sales
growth reached 3.8 percent. After allowing for one-time gains,
one-time charges and restructuring charges, adjusted operating
profit rose by 12.3 percent, from 448 million euros to 502 million
euros. At 439 million euros, operating profit was 15.8 percent
above the comparable figure for the previous year. Adjusted return
on sales (EBIT margin) improved by 1.2 percentage points, from 12.0
percent to 13.2 percent. Return on sales came in at 11.5
percent compared to 10.2 percent in the comparative prior-year
period. Adjusted net income for the quarter after deducting
non-controlling interests increased compared to the previous year
by 13.2 percent, from 295 million euros to 334 million euros. Net
income amounted to 304 million euros compared to 254 million euros
in the previous year. After deducting non-controlling interests of
9 million euros, quarterly net income was 295 million euros
(prior-year quarter: 249 million euros). Adjusted earnings per
preferred share (EPS) rose by 11.6 percent to 0.77 euros, compared
to 0.69 euros in the previous year. The nominal figure improved from
0.58 euros to 0.68 euros.

Sales and profits guidance for 2012 The Henkel Group expects to
generate organic sales growth of between 3 and 5 percent in
fiscal 2012. Henkel is confident of continuing the positive growth
trend posted by its consumer goods businesses, with sales likely to
expand in the low single-digit percentage range. For the Adhesive
Technologies business sector, Henkel expects sales to grow in the
mid-single-digit percentage range. In recent years, Henkel has
introduced a number of measures that have had a positive impact
on its cost structure. Also in this year, Henkel intends to
further adapt its structures to the constantly changing market
conditions while maintaining its strict cost discipline. Henkel
also aims to counteract the burden on earnings caused by high raw
material costs. These factors, together with the expected
increase in sales, should positively influence earnings
development. Based on the 2011 results, Henkel anticipates
achieving an increase in adjusted return on sales (EBIT) to 14
percent (2011: 13.0 percent) and an increase in adjusted earnings
per preferred share of at least 10 percent.

This document contains forward-looking statements which are
based on the current estimates and assumptions made by the
corporate management of Henkel AG & Co. KGaA. Forward-looking
statements are characterized by the use of words such as expect,
intend, plan, predict, assume, believe, estimate, anticipate,
forecast and similar formulations. Such statements are not to be
understood as in any way guaranteeing that those expectations will
turn out to be accurate. Future performance and the results
actually achieved by Henkel AG & Co. 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
forward-looking statements.

Contact

Lars Witteck Wulf Klüppelholz
Phone +49 211 797 - 2606 Phone +49 211 797 - 1875
Fax +49 211 798 - 4040 Fax +49 211 798 - 4040
E-Mail: lars.witteck@henkel.com E-Mail: wulf.klueppelholz@henkel.com

Henkel AG & Co. KGaA

The 2011 Annual Report and further information and download material
relating to fiscal 2011 together with the link to the live webcast of
the press kit for fiscal 2011 can be found in our press folder at: ht
tp://www.henkel.com/press/press-conference-annual-and-sustainability-
report- 2011-34779.htm

press@henkel.com

Further inquiry note:
Irene Honisch
AsTel.: +49 (0)211 797-5668
E-Mail: irene.honisch@henkel.com

end of announcement euro adhoc
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company: Henkel AG & Co. KGaA
Henkelstr. 67
D-40191 Düsseldorf
phone: +49 (0)211 797-0
FAX: +49 (0)211 798-4008
WWW: http://www.henkel.com
sector: Consumer Goods
ISIN: DE0006048432, DE0006048408
indexes: DAX, CDAX, HDAX, Prime All Share
stockmarkets: free trade: Hannover, München, Hamburg, Düsseldorf, Stuttgart,
regulated dealing: Berlin, regulated dealing/prime standard:
Frankfurt
language: English