Hans Van Bylen

Kuwait Times - - BUSINESS -

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.

Prof­itable growth

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.

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