Henkel Launches Growth Program

Henkel announced its strategic framework for the future. Carsten Knobel, Henkel CEO, stated: "The core elements of our new strategic framework, created for purposeful growth, are a winning portfolio and competitive advantages demonstrated in innovation, sustainability and digitalization, as well as future-ready business models based on a solid foundation of collaborative culture and capable people. This strategic framework is also reflected in our medium to long-term financial targets: Organic sales growth between 2 and 4 percent, growth in privileged earnings per share* at constant exchange rates in the mid to upper single-digit percentage range, and continued focus on free cash flow improvement."

Enhancing sustainability with ambitious targets based on past successful performance

In order to become a climate-positive company by 2040, Henkel plans to work together with consumers, customers and suppliers to reduce the carbon footprint from its production by 65 percent by 2025 and achieve 100 million tonnes of carbon dioxide savings. Henkel also set ambitious packaging targets for 2025 to implement a circular economy and reach the goal of zero plastic waste in nature: In addition to making all produced packaging recyclable or reusable,** Henkel aims to reduce the amount of fossil-based and previously non-recycled plastic used in consumer product packaging by 50 percent. Henkel also wants to strengthen the positive social impact it creates within the communities in which it operates, alongside responsible resource use resulting from the increased contribution of more than 50,000 employees, by improving the lives of 20 million people worldwide by 2025.

Transforming Digitalization into a Tool Creating Customer and Consumer Value

Henkel aims to transform digitalization into a tool creating customer and consumer value. The company wants to increase one-to-one interaction and digital sales in consumer business units by expanding the scope of existing digital platforms for direct-to-consumer relationships and creating new ones. End-to-end customer-focused digitalization taking place in industrial business units will be used to generate new business potential and make the customer experience more digital at all touchpoints. Additionally, Henkel will continue its work towards end-to-end data integration. This will provide the company with opportunities such as developing innovative and personalized solutions managed by artificial intelligence. Henkel will also invest in digital capabilities, particularly data scientists and engineers with future-oriented skills and deep technological expertise in the sector. Finally, Henkel aims to strengthen its digital operations focus and efficiency. Henkel will completely reorganize its digital structure and create a new structure under the name "Digital Business Unit." Henkel created a new CDIO (Chief Digital and Information Officer) position at the end of 2019. Henkel's Digital and Information Technology teams will henceforth work together under the leadership of the CDIO, who reports directly to the CEO. Henkel's new "Digital Business Model" is built on two main pillars: First, "Business Technology," a tool that manages efficiency by continuously optimizing business processes and Information Technology systems throughout the value chain. The second pillar is "Henkel Digital," a market-oriented development and innovation unit. Under this umbrella, Henkel aims to establish digital innovation centers in Berlin, Silicon Valley and Asia.