Hans Van Bylen
organic growth, acquisitions will continue to be an integral part of our strategy in order to further strengthen our portfolio. We will begin to implement our strategic priorities in a highly energized way from day one, to continue our successful development and create sustainable value,” said Hans Van Bylen, summarizing Henkel’s future strategic direction.
In a highly volatile and uncertain market environment, Henkel has defined a concrete financial ambition for the period until 2020: Over the next four years, Henkel aims to achieve an average organic sales growth between 2% and 4% with an over-proportionate contribution from emerging markets. For adjusted earnings per preferred share, Henkel targets a compound annual growth rate (CAGR) of 7 to 9%. This ambition for EPS growth includes the impact of currency developments and excludes major acquisitions as well as share buy-back. In addition, Henkel aims for continued improvements of its adjusted EBIT margin and free cash flow expansion. Overview of strategic priorities.
Driving growth in mature and emerging markets
In a highly volatile and dynamic business environment, increasing agility of the organization will be a critical success factor for Henkel in the future. This will include energized and empowered teams, fastest time-to-market as well as smart and simplified processes.
In order to fund growth, Henkel will implement new approaches to optimize resource allocation, focus on net revenue management, further increase efficiency in its structures, and continue to expand its Global Supply Chain organization. Together, these initiatives will contribute to further improve profitability and enable Henkel to fund its growth ambitions for 2020 and beyond.
To reinforce its commitment to sustainability, Henkel has defined clear targets to improve its resource efficiency, for example by creating more value with less resources. Henkel has defined ambitious sustainability milestones which would result in an overall efficiency improvement of 75 percent by 2020 compared to 2010. Engaging all Henkel employees globally to act as sustainability ambassadors toward customers and consumers, business partners and society will be a driver of Henkel’s sustainability leadership.