THIS IS HENKEL GCC

• Group sales in the first half of 2022 grew organically by +8.9 percent to around 10.9 billion euros ‏(nominal +9.9 percent), driven by all business units and regions
• Earnings impacted, as expected, by drastic input cost headwinds:
  • Operating profit ‏(EBIT)* reaches 1,166 million euros ‏(-18.5%)
  • EBIT margin* at 10.7% ‏(-370 basis points)
  • Earnings per preferred share ‏(EPS)* at 1.95 euros, -20.8% at constant exchange rates
• Good progress in implementing the purposeful growth agenda and in merging the consumer businesses into Henkel Consumer Brands
• Outlook for fiscal 2022 updated:
  • Organic sales growth: increased to +4.5 to +6.5 percent
  • EBIT margin*: unchanged at 9.0 to 11.0 percent
  • Earnings per preferred share ‏(EPS)* at constant exchange rates: unchanged a decline in the range of -35 to -15 percent

As first adhesive manufacturer worldwide Henkel will introduce plastic-free blister packaging for its broad portfolio of consumer adhesives globally, starting with the Pritt glue sticks in early summer 2022. The new plastic-free blister packs are made from minimum 85 percent recycled paper and are fully recyclable. This solution will contribute to a reduction of 1,000 tons of plastics annually. The new packaging concept is in-line with the company´s sustainability ambition and packaging targets 2025 and aims to further enhance the recyclability of products towards a circular economy.

• Group sales increase organically by +7.1 percent to around 5.3 billion euros; nominal +6.1 percent:
  • Adhesive Technologies generates double-digit organic sales growth of +10.7 percent; nominal +11.6 percent
  • Beauty Care with slightly negative organic sales development of -1.2 percent; nominal -3.5 percent, due to implementation of planned portfolio measures
  • Laundry & Home Care records very strong organic sales growth of +4.9 percent; nominal +2.2 percent
• Emerging markets with double-digit sales growth, mature markets with strong growth
• Merger of Laundry & Home Care and Beauty Care business units into integrated multi-category platform Henkel Consumer Brands:
  • Strengthening growth momentum and margin profile in the consumer business
  • Significant synergies: around 500 million euros gross savings targeted in the mid term
  • First phase of measures to be implemented by the end of 2023: around 250 million euros annualized net savings expected, around 2,000 jobs affected worldwide
  • Portfolio measures for businesses with total annual sales of up to 1 billion euros under review
• Outlook for fiscal 2022 updated on April 29
• Clear commitment to mid- to long-term financial ambition