20
24
ANNUAL
REPORT
HENKEL ANNUAL REPORT 2024
The Company
1
2024 at a glance
4
Foreword
14
Report of the Supervisory Board
26
Our Management Board
28
What drives us
29
Shaping our future
30
Shares and bonds
Combined management report
43
Corporate governance
93
Fundamental principles of the Group
108
Economic report
166
Henkel AG & Co. KGaA (condensed
version according to the German
Commercial Code [HGB])
175
Risks and opportunities report
203
Forecast
Consolidated financial statements
209
Consolidated statement of financial position
211
Consolidated statement of income
212
Consolidated statement of comprehensive
income
213
Consolidated statement of changes in equity
215
Consolidated statement of cash flows
217
Notes to the consolidated financial statements
361
Subsequent events
362
Recommendation for the approval of the
annual financial statements and the appropriation
of the profit of Henkel AG & Co. KGaA
363
Corporate bodies of Henkel AG & Co. KGaA
Further information
371
Independent Auditor’s Report
384
Responsibility statement
385
Quarterly breakdown of sales
386
Multi-year summary
388
Glossary
393
Credits/Legal
394
Contacts
394
Financial calendar
CONTENTS
Note: All individual figures in this report have been commercially rounded. Addition may result in deviations from the totals indicated.
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2024 AT A GLANCE
Key financials
in million euros
2020
2021
2022
2023
2024
+/-
Sales
19,250
20,066
22,397
21,514
21,586
0.3%
Operating profit (EBIT)
2,019
2,213
1,810
2,011
2,831
40.8%
Adjusted1 operating profit (adjusted EBIT)
2,579
2,686
2,319
2,556
3,089
20.9%
Return on sales (EBIT margin)
10.5%
11.0%
8.1%
9.3%
13.1%
3.8pp
Adjusted1 return on sales (adjusted EBIT margin)
13.4%
13.4%
10.4%
11.9%
14.3%
2.4pp
Net income
1,424
1,629
1,253
1,340
2,032
51.7%
Attributable to non-controlling interests
16
-5
-5
22
25
–
Attributable to shareholders of Henkel AG & Co. KGaA
1,408
1,634
1,259
1,318
2,007
52.3%
Earnings per preferred share (EPS)
in euros
3.25
3.78
2.95
3.15
4.80
52.4%
Adjusted1 earnings per preferred share (adjusted EPS)
in euros
4.26
4.56
3.90
4.35
5.36
23.2%
Return on capital employed (ROCE)
9.6%
11.0%
8.2%
9.4%
12.9%
3.4pp
Adjusted1 return on capital employed (adjusted ROCE)
12.1%
13.3%
10.5%
12.0%
14.0%
2.1pp
Dividend per ordinary share
in euros
1.83
1.83
1.83
1.83
2.022
10.4%
Dividend per preferred share
in euros
1.85
1.85
1.85
1.85
2.042
10.3%
pp = percentage points
Sales by business unit 2024
Sales by region 2024
1 Adjusted for one-time expenses and income, and for restructuring expenses.
2 Proposal to shareholders for the Annual General Meeting on April 28, 2025.
3 Sales and services not assignable to the individual business units.
2.6%
Organic
sales growth
14.3%
Adjusted1
EBIT margin
€5.36
Adjusted1
EPS
+25.1%
Development of
adjusted1 EPS
at constant
exchange rates
€2.04
Dividend
per preferred share2
1%
51%
48%
Adhesive Technologies
Consumer Brands
Corporateò
Europe
IMEA
North America
Latin America
Asia-Pacific
Corporate
1%
16%
28%
11%
8%
37%
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ADHESIVE TECHNOLOGIES
Key financials
in million euros
2023
2024
+/-
Sales
10,790
10,970
1.7%
Proportion of Henkel sales
50%
51%
–
Operating profit (EBIT)
1,423
1,715
20.6%
Adjusted1 operating profit (adjusted EBIT)
1,584
1,817
14.7%
Return on sales (EBIT margin)
13.2%
15.6%
2.5pp
Adjusted1 return on sales (adjusted EBIT margin)
14.7%
16.6%
1.9pp
Return on capital employed (ROCE)
14.7%
16.4%
1.7pp
Adjusted1 return on capital employed (adjusted ROCE)
16.4%
17.4%
1.0pp
Economic Value Added (EVA®)
359
515
43.5%
1 Adjusted for one-time expenses and income, and for restructuring expenses.
pp = percentage points
Organic sales growth
2.4%
Sales performance Adhesive Technologies
in million euros
Our top brands
8,684
9,641
11,242
10,970
0
2,000
4,000
6,000
8,000
10,000 12,000
10,790
2020
2021
2022
2023
2024
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CONSUMER BRANDS
Key financials
in million euros
2023
2024
+/-
Sales
10,565
10,467
-0.9%
Proportion of Henkel sales
49%
48%
–
Operating profit (EBIT)
753
1,276
69.4%
Adjusted1 operating profit (adjusted EBIT)
1,115
1,419
27.2%
Return on sales (EBIT margin)
7.1%
12.2%
5.1pp
Adjusted1 return on sales (adjusted EBIT margin)
10.6%
13.6%
3.0pp
Return on capital employed (ROCE)
6.5%
11.1%
4.6pp
Adjusted1 return on capital employed (adjusted ROCE)
9.6%
12.3%
2.7pp
Economic Value Added (EVA®)
-116
415
–
1 Adjusted for one-time expenses and income, and for restructuring expenses.
pp = percentage points
Organic sales growth
3.0%
Sales performance Consumer Brands
in million euros
Our top brands
10,456
10,283
10,928
10,565
10,467
0
2,000
4,000
6,000
8,000
10,000 12,000
2020
2021
2022
2023
2024
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“We are underpinning
Henkel’s transformation
with sustainable
financial success.”
CARSTEN KNOBEL
CHAIR OF THE MANAGEMENT BOARD
Fiscal 2024 was once again marked by major challenges: geopolitical tensions, wars, and military conflicts in
various regions of the world, economic uncertainties, and persistently strained supply chains, to name just the
most significant headwinds.
Nevertheless, thanks to the outstanding efforts of our teams around the world, we have consistently advanced
Henkel over the past year, reached or even exceeded important milestones, and, above all, underpinned the
transformation of our Company with sustainable financial success.
Last year, I assured you at this point: “We keep our promises. ” I am pleased that we were once again able to
confirm this with tangible results in the past fiscal year. Over the course of 2024, we raised our forecast twice
and achieved the communicated ambitious goals by the end of the year. This was also reflected in the capital
market. Taking into account dividend payouts, Henkel’s preferred stock outperformed the DAX and signifi-
cantly outperformed the STOXX® Europe 600 indices.
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The results of the past year are clear evidence that Henkel’s transformation is progressing successfully and
that, with our strategic framework for purposeful growth, we are on the right path to optimally positioning
the Company for the future.
Strong business and earnings performance
Consolidated sales in fiscal 2024 amounted to around 21.6 billion euros. This corresponds to solid organic
sales growth of 2.6 percent, driven by both business units – Adhesive Technologies and Consumer Brands.
I would particularly like to highlight the significant progress in our earnings performance. Adjusted operating
profit (adjusted EBIT) increased by approximately 21 percent to 3.1 billion euros. Adjusted return on sales
(adjusted EBIT margin) rose to 14.3 percent, representing a gain of 2.4 percentage points versus prior year.
Adjusted earnings per preferred share (EPS) increased to 5.36 euros, reflecting growth of approximately
25 percent at constant exchange rates.
This significant earnings improvement was supported by higher prices – adjustments that we had to
implement due to the persistently high costs prevailing for direct materials and input products. Additionally,
savings from the further integration of the Consumer Brands business unit, and ongoing portfolio measures,
contributed significantly to this positive development.
It is also important in my view that we continue to maintain a strong focus on investments in our businesses
and future growth, for example, through increased marketing activities in the consumer business and the
development of successful innovations in both business units.
Free cash flow amounted to around 2.4 billion euros, while the net financial position at year-end was
-93 million euros. As a result, Henkel is almost net debt-free. This also demonstrates the very solid financial
position of the Company.
Based on our successful business and earnings development, as well as our strong financial foundation,
we will – at the Annual General Meeting scheduled for April 28, 2025 – propose to you, our shareholders,
a dividend increase of more than 10 percent compared to the previous year amounting to 2.04 euros per
preferred share and 2.02 euros per ordinary share. This corresponds to a payout ratio of 37.9 percent, which
is within our targeted range of 30 to 40 percent of net income after non-controlling interests and adjustment
for exceptional items.
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This is why I would like to thank all Henkel employees for their outstanding performance. Through their
teamwork and extraordinary commitment, we have once again successfully guided our Company through a
challenging year.
The dedication and motivation of our employees, driven by a shared purpose, our core values, and an inspiring
culture, make me very confident – even in these challenging times – that Henkel is heading for a successful
future.
Major progress in the process of transformation
Over the past few years, we have profoundly changed our Company in many areas and consistently imple-
mented our strategic agenda for purposeful growth. A key driver of our long-term and sustainable success is
the willingness and determination shown by our people for continuous transformation. We strive for profit-
able growth and aim to sustainably improve our earnings results. To achieve this, we must constantly evolve
and develop. And that is exactly what we are doing – in all areas. I would like to outline the progress we
have made and why this is crucial for our future success.
The likely most significant change in Henkel’s recent history is the consolidation of our consumer goods
businesses into the Consumer Brands business unit, which we announced at the beginning of 2022. Since
then, much has happened. The business unit has been operational in its new setup since early 2023, and the
positive developments already became evident in that year. In the past fiscal year, it became clear that our
decision to merge the formerly separate consumer goods businesses into a single platform was the right one.
The Consumer Brands business unit posted sales of 10.5 billion euros in 2024 and recorded strong organic
sales growth of 3 percent. This increase was primarily driven by a very strong price development. Sales
volumes declined, mainly due to ongoing portfolio optimization measures. Adjusted return on sales reached
13.6 percent, an increase of 3 percentage points compared to the previous year. This significant improvement
in results was driven by higher selling prices, reflecting the targeted enhancement of our products’ value
for consumers and the need to offset the persistently high prices for direct materials. Additionally, savings
from the integration, as well as the positive effects from comprehensive portfolio optimization and ongoing
cost reduction and efficiency improvement measures, contributed to these strong results.
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We have progressed significantly faster with the integration of Consumer Brands than initially planned, with
team integration, portfolio restructuring and delivery of synergies all having been expedited. We completed
the first phase of integration in 2024, which primarily involved merging the sales and marketing teams. In the
second phase, which has been ongoing since 2023, we aim to achieve further cost savings by 2026 through
improvements in production networks and supply chains.
We are aligning Consumer Brands strictly with strong brands and businesses that have high gross margins
and leading positions in markets and categories. This includes comprehensive portfolio measures, such as
selling or discontinuing brands or businesses. Since the beginning of the integration, we have divested brands
and businesses representing a total sales volume of slightly more than one billion euros. The comprehensive
portfolio streamlining in the Consumer Brands unit, which we announced with the integration at the beginning
of 2022, has thus also been successfully completed. We see that the realignment of our portfolio is positively
impacting the gross margin of the business unit. The higher gross margin is also used for investments in our
brands and businesses, innovation, sustainability, and digitalization to drive future growth.
The positive effects of focusing on high-growth and high-margin brands and businesses are paying off:
The top ten brands within Consumer Brands, which accounted for more than half of the revenue in 2024,
achieved very strong organic growth, along with a positive increase in volume.
Active portfolio management also includes strengthening and expanding the portfolio through acquisitions:
In early 2024, we acquired the well-known Vidal Sassoon brand in China. This acquisition ideally complements
Consumer Brands’ local portfolio in China by covering the premium segment in the retail business. The Vidal
Sassoon brand portfolio primarily serves the hair care segment with shampoos and conditioners but also
includes products related to styling and hair care treatments.
In a highly competitive consumer goods market, innovation is a key success factor for differentiation. Our
approximately 1,000 research and development experts within Consumer Brands are working intensively on
innovations that provide real added value to consumers. Fiscal 2024 saw us once again successfully launch
numerous new products. One example is our new Perwoll technology – we have developed a new formulation
that smooths fibers and, after several washes, visibly restores the original color of garments.
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To enable sustainable consumption and further contribute to the circular economy, we have continuously
increased the proportion of recycled materials in the packaging of liquid detergents and products in the Hair
category in Europe – for example, in well-known brands such as Persil, Weißer Riese, Spee and Gliss. The bottle
bodies are recyclable, with the post-consumer recycled content reaching at least 50 percent. In North America,
the recycled plastic content in the bottle body of the liquid hand soap brand Dial has already been increased
to 100 percent.
The overall very positive development of the Consumer Brands business unit in the past year shows that
consolidating our consumer goods businesses into one entity, consistently optimizing the portfolio, and
thus creating a strong platform for future profitable growth was the right decision for Henkel.
The Adhesive Technologies business unit also made significant progress over the year under review with a
very strong business performance. This business unit offers approximately 20,000 products and solutions to
more than 100,000 customers worldwide and across more than 800 industry segments. This breadth and
depth of our portfolio, combined with our global presence and the expertise of our teams in developing
tailored solutions for customers, make us unique in the market and allow us to further expand our globally
leading market position. With its three business areas – Mobility & Electronics, Packaging & Consumer
Goods, and Craftsmen Construction and Professional – Adhesive Technologies is aligned with key future
trends, including e-mobility and connectivity, meaning the increasing interconnection of systems, as well
as sustainability.
The streamlined structure of our business areas, including some new leadership teams, and our consistent
focus on future trends contributed to another successful year in 2024, despite challenging market conditions.
Sales generated by Adhesive Technologies in the past year amounted to around 11 billion euros, representing
good organic sales growth of 2.4 percent. This growth was particularly driven by a strong increase in volume
in the second half of the year compared to the previous year, mainly due to rising demand in key end markets.
Prices remained overall stable year over year. Adjusted return on sales increased significantly by approximately
2 percentage points compared to the prior year, reaching 16.6 percent. This substantial improvement was
driven by strong volume growth, ongoing cost reduction and efficiency measures, and, particularly in the first
half of 2024, declining prices for direct materials.
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Although Adhesive Technologies serves a diverse range of customers and applications, the automotive
industry – especially the e-mobility segment – was a key focus of public attention in the past year.
Of the approximately 11 billion euros in sales from Adhesive Technologies, around 20 percent came from
the automotive sector. Within this sector, 20 percent of sales was generated by solutions for electric vehicles,
while 80 percent came from vehicles with conventional propulsion systems. The automotive industry as a
whole faced challenges in 2024, particularly in Germany. Nevertheless, we significantly outperformed the
market growth. This success was due to our innovative solutions, which allowed us to win more manufacturer
contracts, as well as our global presence, which enables us to serve many producers in different regions.
Innovation is a central driver of success for our business, and we continue to invest in this area to maintain
our competitive position. Last year, we opened a state-of-the-art battery testing center at our headquarters,
directly connected to our largest global innovation center of the Adhesive Technologies business unit, the
Inspiration Center Düsseldorf. This new testing center significantly expands our capabilities in the e-mobility
segment and strengthens our position as a leading development and innovation partner for automotive
manufacturers and battery producers.
The innovations and solutions developed within Adhesive Technologies also contribute significantly to
improving sustainability in our industrial customers’ production processes. A newly developed hotmelt
adhesive for the packaging industry, marketed under the Technomelt brand, allows application temperatures
to be reduced by up to 40 degrees Celsius. This innovation helps companies lower their CO₂ emissions by
up to one-third while significantly reducing energy consumption in production. Additionally, the adhesive
consists of 50-percent bio-based raw materials and is fully compatible with the paper recycling process.
In the past fiscal year, we also invested in acquisitions to expand our portfolio within the Adhesive Technologies
business unit, acquiring the US-based company Seal for Life Industries. This company provides protective
coatings and sealing solutions for infrastructure in industries such as renewable energy, gas, and water. This
acquisition complements our 2023 purchase of Critica Infrastructure, a company also specializing in infra-
structure maintenance and repair. With these acquisitions, we have expanded our existing portfolio in this
application area and created a platform for further growth in an attractive, forward-looking business sector.
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Looking at the development of our two business units over the past fiscal year, it is clear that with a well-
defined strategic agenda and the dedicated efforts of our teams, we successfully advanced the transformation
of our Company in 2024 with strong momentum. Henkel stands on two solid pillars – Adhesive Technologies
and Consumer Brands – in a structure that provides us with a clear foundation to further develop Henkel and
lead it into the future.
Responsibility for the environment, society, and future generations
Our commitment to sustainable business practices is a fundamental part of our values, purpose, and growth
agenda. We pursue a clear sustainability strategy, which is structured around three key focus areas under the
headings: “Regenerative Planet,” “Thriving Communities,” and “Trusted Partner.”
The “Regenerative Planet” focus area relates to our work toward a climate-neutral and circular economy. Our
goal is to achieve net-zero greenhouse gas emissions across our entire value chain by 2045. This commitment
comes with new short- and long-term targets that go significantly beyond our previous efforts. These targets
cover not only production but all operational processes at our sites worldwide. They also encompass a broader
portion of our upstream and downstream supply chain.
In 2024, the Science Based Targets initiative (SBTi) officially validated our new goals – an achievement that
few companies in our competitive landscape can claim. This is our contribution to the Paris Agreement,
which aims to limit global warming to 1.5 degrees Celsius.
Within the “Thriving Communities” focus area, we further reinforced our commitment to pioneering new
paths over the past year. We became the first company listed in the DAX index to introduce gender-neutral
parental leave worldwide – with full salary compensation. This step was met with highly positive reactions
from both our employees and the public. In recognition of this initiative, for example, we were honored with
the 2024 Responsible Leadership Award from the renowned F.A.Z. Institute for our strong stance and successful
communication on sustainability-related topics.
This initiative underscores our dedication to fostering a more inclusive corporate culture and aligns with the
expectations of younger generations, for whom equal parental responsibilities are becoming an increasingly
important factor in both family and career planning. Particularly in countries where no statutory parental leave
exists, this initiative represents a major step toward greater family-friendliness and equality.
For more information on how we are responsibly shaping our business and our role in society, I invite you to
explore our comprehensive 2024 Sustainability Report: www.henkel.com/sustainabilityreport
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Leveraging the opportunities of digitalization across all areas
In 2024, digitalization – especially the rapid advancements in artificial intelligence (AI) – was a major topic
of discussion, with widespread debates on its societal impact and economic potential.
At Henkel, AI has been an integral part of our digital strategy for several years. We actively implement AI
technologies in practical applications across both our industrial and consumer goods businesses.
For example, AI is used to automate processes in our adhesive development laboratories, virtually connect
our global production sites, operate autonomous robots in our manufacturing facilities, and for chatbots on
our brand websites.
As AI capabilities expand rapidly, responsible use of the technology and ensuring that our employees have
the necessary skills to leverage it effectively have become increasingly important. We regularly offer training
programs to keep our workforce up to date on the latest AI advancements and applications, including
e-learning modules, professional development courses, and hands-on workshops.
In 2024, our digital unit, Henkel dx, further optimized our internal structures, strengthened our digital expertise,
and fostered a culture of open innovation. Additionally, we benefit from our strategic partnerships with leading
global digital companies such as SAP, Microsoft, and Adobe. These collaborations enable us to integrate
cutting-edge technologies into our digital platforms and initiatives. By accelerating digital innovation, refining
our platform strategy, and enhancing cross-functional collaboration across all business areas and functions,
we significantly improved IT efficiency over the past year.
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Driving cultural transformation
As the foundation of our agenda for purposeful growth, we aim to foster a culture of collaboration and
empowerment for our employees. Strengthening our corporate culture is a top priority for me and the entire
Henkel Management Board.
To support our employees, we offer a variety of learning formats and training programs. Hence, 2024 again
saw us successfully continue the Accelerate Cultural Transformation (ACT) initiative, originally launched in
2023, across our global organization. This initiative promotes deeper dialog and stronger connections within
our teams. The core focus of the ACT initiative last year was on providing constructive feedback and fostering
an open feedback culture.
A culture of collaboration is closely linked to promoting diversity, equity, and inclusion. We firmly believe
that a diverse workforce and an open, appreciative corporate culture are key success factors in a globalized
world and form the foundation of our competitive advantage. To further enhance diversity, we follow a clearly
defined strategy based on three pillars: First, raising awareness through various formats, such as campaigns
and events, to highlight different dimensions of diversity. Second, strengthening inclusive behavior through
training programs for both leaders and employees. And third, continuously improving structural conditions,
such as offering programs that support work-life balance, eliminating structural barriers, and setting clear
targets to track our progress. One of our ambitions is to achieve gender parity across all leadership levels
by the end of 2025. As of today, approximately 42 percent of our leadership positions worldwide are held
by women.
A successful and important year for Henkel
In summary I would say that fiscal 2024 was a successful and highly significant year for Henkel. We achieved
our financial targets, which we raised twice during the year. We consistently implemented our agenda for
purposeful growth across all strategic dimensions and advanced our Company’s transformation with deter-
mination and success. We are on the right path, and the transformation of our Company is yielding tangible
results. With a clear strategy, a strong team, and a unique company culture, we are well-prepared for the
future.
On behalf of the entire Henkel Management Board, I would like to thank our customers, consumers, and
business partners for their trust in our brands and technologies. They are at the center of our work, and
successfully addressing their needs, wishes and challenges is what drives us. Day by day.
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I would also like to emphasize once again my thanks to all our employees and leaders around the world –
for their great commitment, dedication and hard work.
We would also like to thank the Shareholders’ Committee and the Supervisory Board for their valuable and
constructive support in these very challenging times.
And finally, we would like to express our sincere thanks to you, our shareholders. We greatly appreciate your
continued confidence in our Company. I firmly believe that we are on the right track, that we are pursuing the
right strategy and that we will continue to develop Henkel consistently on this foundation.
We look ahead with confidence to 2025 and beyond and are fully committed to leading Henkel successfully
into the future.
Düsseldorf, February 7, 2025
Carsten Knobel
Chair of the Management Board
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“I am confident that
our people and our
management team will
successfully overcome
the challenges that
lie ahead.”
DR. SIMONE BAGEL-TRAH
CHAIR OF THE SHAREHOLDERS’
COMMITTEE AND OF THE SUPERVISORY BOARD
The past year was once again marked by a difficult environment, with various political and economic uncer-
tainties and crises, and substantial volatility. Although the high global inflation rate has abated significantly,
economic growth was modest in many regions, particularly in Europe – and especially in Germany. Yet despite
all these headwinds, Henkel has once again made significant progress in the past year and is fundamentally
in a good position. In this changing and challenging environment, we have succeeded in delivering a good
business performance overall.
On behalf of the Supervisory Board, I would like to thank all employees at Henkel for their dedicated commit-
ment and their contribution to the successful further development of our Company over the past year. My
thanks are equally due to the members of the Management Board who have steered the transformation of
the Company through a challenging environment. I am also grateful to our employee representatives and
works councils for their consistently constructive support in growing Henkel.
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I would also like to extend my thanks to you, our shareholders, for your continued confidence in our
Company, its management and employees, and our brands and technologies over this past fiscal year.
Ongoing dialog with the Management Board
We continued to diligently discharge in full our Supervisory Board duties in fiscal 2024 in accordance with
the legal statutes, Articles of Association and rules of procedure governing our actions. This included consist-
ently monitoring the work of the Management Board, advising and supporting it in its stewardship and in the
strategic development of the Company, and discussing with it business matters of major importance. In
doing so, we were able to ascertain that the Management Board’s performance of its duties was consistently
legally and regulatory compliant, fit for purpose, and proper at all times.
The Management Board and Supervisory Board continued to cooperate in 2024 through extensive dialog
founded on mutual trust and confidence. The Management Board kept us regularly and extensively informed
of all major issues affecting the Company’s business and our Group companies with prompt written and oral
reports. Specifically, the Management Board reported on the business situation, operational development,
business policy, profitability issues, our short-term and long-term corporate, financial and personnel plans,
as well as on issues relating to sustainability, capital expenditures – including acquisitions – and organizational
measures.
We also discussed the risk situation and dealt with compliance and governance issues. Financial reports
focused, among other things, on the sales, earnings and return figures of the Henkel Group as a whole, with
further analysis by business unit and region. We regularly discussed the status of transformation of the
Consumer Brands business unit. The members of the Supervisory Board and its committees consistently had
sufficient opportunity to critically review and address the issues raised by each of these reports and associated
explanations, and to provide their individual guidance.
Outside of Supervisory Board meetings, the Chair of the Audit Committee and I, as Chair of the Supervisory
Board, remained in regular contact with individual members of the Management Board or with the Manage-
ment Board as a whole, discussing with them issues relating particularly to strategy, business performance,
risk management and compliance. This procedure ensured that we were constantly aware of current business
developments and significant events. Again outside of meetings, we also regularly held confidential talks
with the auditor to discuss audit-related topics and other important issues of relevance for the Supervisory
Board’s work. Major outcomes of these talks were shared with the other members no later than by the next
Supervisory Board or committee meeting.
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As Chair of the Supervisory Board, I also held several talks with investors on issues relating specifically to the
Supervisory Board and on questions of corporate governance. I reported on these talks in summary form to
the Supervisory Board.
There were no indications of conflicts of interest involving Management Board or Supervisory Board members
that might have required immediate disclosure to the Supervisory Board and reporting to the Annual General
Meeting.
Members of the Supervisory Board take it upon themselves to seek the training needed to perform their
duties; these efforts are appropriately supported by the Company. In addition to this training, the Company
again offered information and training events focusing on specific topics in the year under review, including
the expected implementation of the Corporate Sustainability Reporting Directive (CSRD) and two topics that
are relevant to the Adhesive Technologies business unit: “automated logistics centers” and “applications in
the aerospace industry.” Members also learned more about HCB production and high-bay warehouses and
the “Aerospace HUB” during a visit to our Montornès del Vallès production site.
Supervisory Board meetings
The Supervisory Board and the Audit Committee each held four regular meetings in the reporting year. The
newly established Sustainability Committee also met twice during the year. The meetings were held in person
with the option of attending via video conference. No meetings were held as a telephone conference or as
a remote-only meeting via video conference.
The members of the Management Board participated in the meetings of the Supervisory Board unless it was
deemed expedient for the Supervisory Board to discuss individual agenda items without the Management
Board being present. The Supervisory Board and Audit Committee also had the opportunity to discuss matters
without the Management Board present.
In each of our meetings, we discussed the reports submitted by the Management Board, conferring with it
on the development of the Company and on strategic issues. We also discussed the overall economic situation
and Henkel’s business performance.
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As already discussed in our last Annual Report, our meeting on February 27, 2024 focused on the annual and
consolidated financial statements for 2023, including the combined management report for Henkel AG &
Co. KGaA and the Group, together with the risk report, corporate governance report and combined separate
non-financial statement for Henkel AG & Co. KGaA and the Group, which was issued in the form of a separate
non-financial report. We also approved the declaration of compliance for 2024, and discussed matters relating
to marketing and sustainable product innovations.
Our meeting on April 22, 2024 focused on the constitution of the Supervisory Board in light of the routine
re-election of shareholder representatives and on the performance of our business units in the first three
months of the fiscal year. In particular, we discussed the development of volumes, margins and market
shares and preliminary expectations for further business development in a persistently volatile market
environment.
In our meeting on September 12, 2024, we focused both on the performance of our business units over the
first eight months and on our corporate strategy up to 2028, including strategic and financial planning. We
also examined in detail the competitive environment of our Consumer Brands and Adhesive Technologies
business units.
Our meeting on December 12, 2024 focused on the expected results for 2024 and on our assets and financial
planning for fiscal 2025. We also examined in detail the associated budgets of our business units based on
comprehensive documentation. Personnel development at senior executive level and our most recent acqui-
sitions and divestments were likewise discussed.
Committees of the Supervisory Board
In order to enable us to efficiently comply with the duties incumbent upon us according to legal statute and
our Articles of Association, we have established an Audit Committee, a Nominations Committee and a Sus-
tainability Committee. Simone Menne as Chair and Laurent Martinez as a member each meet the statutory
requirements for independence and expertise in the areas of accounting and auditing applicable to the
Audit Committee. For more details on the responsibilities and composition of the committees, please refer
to the corporate governance statement (on pages 51 to 92) and the membership lists (on page 365).
Committee activities
Following the appointment, by the 2024 Annual General Meeting, of the external auditor, it was mandated
by the Audit Committee to audit the separate annual financial statements and the consolidated financial
statements, including the combined management report for Henkel AG & Co. KGaA and the Group, and to
review the half-year financial report for fiscal 2024. The audit fee was also established and the key audit
matters were discussed. It was agreed that the auditor would notify the Supervisory Board immediately of
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any findings or occurrences discovered or occurring during the audit that are material to the performance of
the Supervisory Board’s duties. Appropriate procedures for the provision of non-audit-related services as
permitted in the relevant EU regulations were specified. The Audit Committee also obtained the necessary
validation of auditor independence for the performance of these tasks. The Audit Committee likewise commis-
sioned the external auditor to review the content both of the combined separate non-financial statement for
Henkel AG & Co. KGaA and the Group, which is compiled as a separate non-financial report (Sustainability
Report), and of the Remuneration Report compiled in accordance with Section 162 German Stock Corporation
Act [AktG]. Both reports will be made available in the public domain through publication on our website.
The Chair of the committee reported promptly and in full to the plenary Supervisory Board on the content
and results of the committee meetings described below.
The Audit Committee met four times in the year under review. In the run-up to each meeting, the Chair of
the Audit Committee held talks with the auditor regarding the audit findings and any other aspects of audit
relevance.
The meetings and resolutions were prepared through the provision of reports and other information by the
Management Board. The Heads of the relevant Group functions – particularly Corporate Accounting, Legal
& Compliance, Treasury, Corporate Sustainability and Corporate Audit – also reported on individual agenda
items and were available to answer questions.
The Company and Group accounts, including the interim financial reports (quarterly statements and half-year
financial report) were discussed at all Audit Committee meetings, with all matters arising being duly examined
with the Management Board. The auditor was present to discuss the relevant agenda items at the three
meetings at which we discussed and approved the interim financial reports; the auditor also reported on the
findings of the audit procedures commissioned by the Supervisory Board and the Management Board and
on the main issues and occurrences relevant to the work of the Audit Committee. There were no objections
raised in response to these reports. Some consultations with the auditors took place without the Management
Board being present.
The Audit Committee likewise focused in great detail on the accounting process and the sustainability
reporting process, and the efficacy and further development of the Group-wide internal control and risk
management systems. The efficiency of the risk management system was reviewed on the basis of the risk
reports of previous years. The report given by the General Counsel & Chief Compliance Officer on material
legal disputes and compliance within the Group was also discussed, as was the status report submitted by
Corporate Audit. The audit plan submitted by Corporate Audit, focusing on audits of the appropriateness
and effectiveness of the internal control system and the compliance organization, was approved. The Audit
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Committee further discussed treasury risks, their management, and the EMIR mandatory audit pursuant to
Section 32 German Securities Trading Act [WpHG]. The auditor’s provision of non-audit-related services and
adherence to the general conditions specified for same were monitored. There were no transactions requiring
approval pursuant to Section 111b AktG.
At its meeting on March 5, 2025, attended by the auditor, the Audit Committee discussed the annual and
consolidated financial statements, together with the combined management report for Henkel AG & Co.
KGaA and the Group, the Sustainability Report for fiscal 2024, the respective audit reports and auditor’s
opinions, the associated proposal for appropriation of profit, and the risk report, and prepared the corre-
sponding resolutions for the Supervisory Board. The Audit Committee also discussed the quality of the
audit at this meeting. As in previous years, other members of the Supervisory Board took part as guests in
this specifically accounting-related meeting of the Audit Committee.
As reported in the previous year, the Nominations Committee submitted its recommendation for the Super-
visory Board’s proposal to the 2024 Annual General Meeting for resolution with regard to the forthcoming
election of new shareholder representatives and conducted a structured process to select potential candidates
with the assistance of an external consultant.
Given the importance of ESG issues for the Company, the Supervisory Board has established a Sustainability
Committee. The remuneration for members of the Sustainability Committee was approved by the 2024
Annual General Meeting. The newly established Sustainability Committee was constituted after the Annual
General Meeting on April 22, 2024. As of December 31, 2024, the following were members of the committee:
Dr. Simone Bagel-Trah (Chair), Barbara Kux (Vice Chair) and Vinzenz Gruber as shareholder representatives,
and Birgit Helten-Kindlein, Dr. Konstantin Benda and Michael Vassiliadis as employee representatives. The
committee met twice in the year under review. Matters relating to the sustainability strategy were discussed
with the Management Board during the meetings, among other topics. The Sustainability Committee also
supported the preparation of the Sustainability Report, which for the first time was prepared in alignment
with the European Sustainability Reporting Standards (ESRS).
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Efficiency audit
The Supervisory Board and Audit Committee regularly review the efficiency with which they perform their
duties. As already reported, the efficiency with which the Supervisory Board and Audit Committee carry out
their duties and the required independence of their membership was confirmed in the 2023/2024 efficiency
audit. Some improvement opportunities were discussed and are in the process of being implemented. The
next efficiency audit is scheduled to take place in 2025/2026.
Corporate governance and declaration of compliance
The Supervisory Board again dealt with questions of corporate governance in the reporting year. A Sustain-
ability Committee was also established. Further details of Henkel’s corporate governance can be found in the
corporate governance statement (pages 51 to 92 of this Annual Report), with which we fully acquiesce.
At our meeting on March 6, 2025, we discussed and approved the joint declaration of compliance for 2025
to be submitted by the Management Board, Shareholders’ Committee and Supervisory Board, as specified in
the GCGC. The full wording of the current and previous declarations of compliance can be accessed through
the Company website. The current declaration of compliance is also reflected in the corporate governance
statement.
Individual meeting attendance
Members’ participation in the meetings of the Supervisory Board and the Audit Committee was 96 percent
overall. The following table lists the attendance of each Supervisory Board member:
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Individual meeting attendance 2024
Supervisory Board member
Supervisory
Board and com-
mittee meetings1
Attendance
Presence
Dr. Simone Bagel-Trah (Chair)
10
10
100%
Birgit Helten-Kindlein (Vice Chair)
10
9
90%
Michael Baumscheiper
4
4
100%
Dr. Konstantin Benda
6
6
100%
Lutz Bunnenberg
4
4
100%
Sabine Friedrich
4
4
100%
Vinzenz Gruber (since 4/23/2024)
5
4
80%
Benedikt-Richard Freiherr von Herman
4
4
100%
Barbara Kux
6
6
100%
Dr. Anja Langenbucher (since 4/23/2024)
3
3
100%
Laurent Martinez
8
8
100%
Simone Menne
8
7
88%
Andrea Pichottka
4
3
75%
Philipp Scholz (until 4/22/2024)
1
1
100%
Dirk Thiede
4
3
75%
Edgar Topsch
8
8
100%
Michael Vassiliadis
10
10
100%
Poul Weihrauch (until 4/22/2024)
1
1
100%
1 Number of meetings of relevance for the respective member, i.e. excluding attendance at the Audit Committee’s meeting to discuss the annual
financial statements by members of the Supervisory Board who are not members of the Audit Committee.
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Annual and consolidated financial statements/Audit
In its capacity as auditor appointed for 2024 by the Annual General Meeting on April 22, 2024, Pricewater-
houseCoopers GmbH Wirtschaftsprüfungsgesellschaft (PwC), Frankfurt am Main, Germany, examined the
annual financial statements and the consolidated financial statements, together with the consolidated
management report, which has been combined with the management report for Henkel AG & Co. KGaA for
fiscal 2024. The annual financial statements and the combined management report were prepared by the
Management Board in accordance with German statutory provisions. The consolidated financial statements
were prepared by the Management Board in accordance with International Financial Reporting Standards
(IFRSs) as endorsed by the EU, and in accordance with the supplementary German statutory provisions pur-
suant to Section 315e (1) German Commercial Code [HGB]. The consolidated financial statements in their
present form exempt us from the requirement to prepare consolidated financial statements in accordance
with German law.
PwC conducted its audits in accordance with Section 317 HGB and German generally accepted standards for
the audit of financial statements promulgated by the Institute of Public Auditors in Germany [Institut der
Wirtschaftsprüfer, IDW]. Unqualified audit opinions were issued for the annual and the consolidated financial
statements, as well as for the combined management report.
Combined separate non-financial report
The combined separate non-financial statement for Henkel AG & Co. KGaA and the Group, which is prepared
in the form of a separate non-financial report (Sustainability Report), for fiscal 2024 has been prepared in
accordance with Sections 289b ff. HGB and 315b to 315c HGB and aligned to the European Sustainability
Reporting Standards (ESRS). Based on the procedures performed and the evidence obtained, nothing has
come to the auditor’s attention that causes the auditor to believe that the information in the Sustainability
Report for fiscal 2024 has not been prepared, in all material respects, in accordance with the provisions of
German commercial law.
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Review of the documentation and proposals for resolution at the Annual General Meeting
The annual financial statements, consolidated financial statements, combined management report, and
combined separate non-financial statement relating to Henkel AG & Co. KGaA and the Group prepared in
the form of a separate non-financial report (Sustainability Report) for fiscal 2024 were presented in good
time to all members of the Supervisory Board, together with the corresponding audit reports and relevant
auditor’s opinions and the recommendations by the Management Board for the appropriation of the profit
made by Henkel AG & Co. KGaA. We reviewed these documents and discussed them at our meeting on
March 6, 2025, in the presence of the auditor, which reported on its main audit findings. We received and
approved the relevant audit reports. The Chair of the Audit Committee provided the plenary session of the
Supervisory Board with a detailed account of the treatment of the annual financial statements, the consolidated
financial statements, the combined management report and the Sustainability Report at the Audit Commit-
tee’s meeting on March 5, 2025.
Having received the final results of the review conducted by the Audit Committee and concluded our own
examination, we see no reason for objection to the aforementioned documents. We confirm the results of
PwC’s audits. The assessment by the Management Board of the position of the parent company and the
Group coincides with our own appraisal. At our meeting on March 6, 2025, we concurred with the recommen-
dations of the Audit Committee and therefore approved the annual financial statements, the consolidated
financial statements, the combined management report and the Sustainability Report as prepared by the
Management Board.
Additionally, we discussed and approved the proposal by the Management Board to pay out of the unap-
propriated profit of Henkel AG & Co. KGaA a dividend of 2.02 euros per ordinary share and of 2.04 euros
per preferred share, and to carry the remainder and the amount attributable to the treasury shares held by
the Company at the time of the Annual General Meeting forward to the following year. This proposal takes
into account the financial and earnings position of the Company, its medium-term financial and investment
planning, and the interests of our shareholders.
We also approved our proposals for resolution at the 2025 Annual General Meeting at our meeting on
March 6, 2025. Following the recommendation of the Audit Committee, the Supervisory Board proposes
the engagement of PwC to audit the annual and consolidated financial statements, and to review the
half-year financial report, and to audit the sustainability reporting for fiscal 2025.
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Remuneration Report
The Remuneration Report for fiscal 2024 was prepared jointly by the Management Board and the Supervisory
Board. The remuneration report was prepared as specified in Section 162 AktG and approved in the meeting
on March 6, 2025.
In addition to its formal audit, PwC also examined the content of the Remuneration Report with regard to
the disclosures required by law; no substantial cause for reservation was found.
Risk management
Risk management issues were examined by both the Audit Committee and the plenary Supervisory Board
with emphasis on the risk management system in place at Henkel and any major individual risks of which
we needed to be notified; there were no identifiable risks that might jeopardize the continued existence of
the Company as a going concern. During their audit of the annual financial statements 2024, in compliance
with Section 317 (4) HGB, the auditor examined whether the Management Board had put in place adequate
measures as required under Section 91 (2) AktG, particularly with regard to establishing a monitoring system,
and whether said monitoring system was suitable in all material respects for identifying at an early stage and
with reasonable assurance any developments that might jeopardize the continued existence of the Company
as a going concern. We believe that the risk management system corresponds to the statutory requirements.
Changes in the Supervisory Board and Management Board
In connection with the routine election of new shareholder representatives, which was conducted by the
Annual General Meeting on April 22, 2024, Poul Weihrauch and Philipp Scholz left the Supervisory Board
effective the end of the Annual General Meeting on April 22, 2024, while Vinzenz Gruber and Dr. Anja
Langenbucher were elected to the Supervisory Board. The other shareholder representatives were re-elected.
In its constituent meeting on April 22, 2024, I was elected as Chair of the Supervisory Board and Birgit Helten-
Kindlein was confirmed as Vice Chair. Furthermore, new members were elected to the Audit Committee,
Nominations Committee and newly established Sustainability Committee, with others being re-elected.
Andrea Pichottka – union representative on the Supervisory Board since October 2004 – left the Supervisory
Board effective December 31, 2024. By court resolution dated January 31, 2025, Natalie Mühlenfeld was ap-
pointed as her successor for the remaining term of the employee representatives.
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We thanked those members departing the Supervisory Board for their successful dedication to the interests
of the Company.
No changes occurred in the Management Board.
The fiscal year ahead will once again bring challenges for our employees and management, but I am confident
that with our motivated, dedicated teams around the world, our strong culture and our long-term growth
strategy, we will successfully tackle and overcome these challenges.
We thank you for your ongoing trust and support.
Düsseldorf, March 6, 2025
On behalf of the Supervisory Board
Dr. Simone Bagel-Trah
Chair
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OUR MANAGEMENT BOARD
Carsten Knobel
Mark Dorn
Wolfgang König
Chair of the Management Board
Born in Marburg/Lahn, Germany,
on January 11, 1969;
member of the Management Board since 2012,
Chair of the Management Board since 2020.
Executive Vice President
Adhesive Technologies
Born in London, UK,
on January 31, 1973;
member of the Management Board since 2023.
Executive Vice President
Consumer Brands
Born in Kassel, Germany,
on May 2, 1972;
member of the Management Board since 2021.
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Sylvie Nicol
Marco Swoboda
Executive Vice President
Human Resources, Infrastructure, Sustainability
Born in Paris, France,
on February 28, 1973;
member of the Management Board since 2019.
Executive Vice President
Finance, Purchasing, Global Business Solutions, Digital/IT
Born in Velbert, Germany,
on September 23, 1971;
member of the Management Board since 2020.
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WHAT DRIVES US
Our purpose describes what unites everyone at Henkel: Pioneers at heart for the good of generations. Every
day, around 47,150 employees worldwide give of their best to enrich and improve peoples’ lives with inno-
vative and sustainable products, services and solutions – with our shared values guiding them in their decisions
and actions.
OUR
PURPOSE
Pioneers at heart for the good
of generations.
OUR
VISION
Win the 20s by outperforming
the markets through innovative
and sustainable solutions.
OUR
VALUES
We put our customers and consumers at the center of what we do.
We value, challenge and reward our people.
We drive excellent sustainable financial performance.
We are committed to leadership in sustainability.
We shape our future with a strong entrepreneurial spirit based on
our family business tradition.
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SHAPING OUR FUTURE
We shape our future on the basis of a long-term strategic framework that builds on our purpose and
our values.
Our strategic framework has a clear focus on purposeful growth. This means: We aim to create superior
value for customers and consumers to outgrow our markets, to strengthen our leadership in sustainability,
and to enable our employees to grow both professionally and personally at Henkel.
The key elements of our strategic framework are a winning portfolio, clear competitive edge in the areas of
innovation, sustainability and digitalization, and future-ready operating models – underpinned by a strong
foundation of a collaborative culture and empowered people.
WINNING
PORTFOLIO
OPERATING
MODELS
COMPETITIVE EDGE
INNOVATION
SUSTAINABILITY
DIGITALIZATION
COLLABORATIVE CULTURE &
EMPOWERED PEOPLE
PURPOSEFUL GROWTH
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SHARES AND BONDS
In a market environment that remained challenging and was characterized, in particular, by geopolitical tensions,
persistently high inflation rates and slightly lower but nevertheless still high interest rates, Henkel’s shares
performed well overall in fiscal 2024. After getting off to a weaker start than the market as a whole, Henkel
shares performed very positively and even surpassed the performance of the overall market by the middle
of the year. This performance is attributable in particular to the very strong operating results generated in
the first and second quarters and the associated increases in the sales and earnings guidance issued for the
full year on May 3, 2024 and July 17, 2024 respectively. Following a short, market-related downward trend in
August, both the overall market and Henkel shares recovered. While the market as a whole remained at a
very high level as the year progressed and continued to post a very strong performance, Henkel shares
performed slightly weaker in comparison – partly due to general sector rotations following the US election.
Although Henkel shares had once again made substantial gains by the end of the year thanks to a further
increase in the overall market and positive assessments by analysts, they were not able to match the very strong
performance of the DAX over the year as a whole. Against this background, our preferred shares recorded
their highest price level for the year in December.
Henkel preferred shares closed the year at 84.70 euros, up 16.3 percent year on year. The ordinary shares
closed the year up 14.5 percent at 74.40 euros. Assuming reinvestment of the dividend (before tax deduction)
in the shares at the time of payment, the preferred shares generated a total return of 19.2 percent, and the
ordinary shares 17.7 percent. Henkel preferred shares therefore slightly outperformed the DAX (+18.8 percent)
and significantly outperformed the STOXX® Europe 600, which gained 6.0 percent over the course of the
year. Henkel preferred shares traded at an average premium of 11.4 percent over the ordinary shares in 2024.
Year on year, the trading volume (Xetra) of preferred shares decreased, this being partly due to the share
buyback program from February 15, 2022 to March 31, 2023. Each trading day saw an average of around
387,000 preferred shares changing hands (2023: 434,000).
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The average trading volume of the ordinary shares also decreased year on year to around 82,000 shares
(2023: 91,000). The market capitalization of the ordinary and preferred shares totaled 32.9 billion euros as
of year-end 2024.3
Key data on Henkel shares 2020 to 2024
in euros
2020
2021
2022
2023
2024
Earnings per share
Ordinary share
3.23
3.76
2.93
3.13
4.78
Preferred share
3.25
3.78
2.95
3.15
4.80
Share price at year-end1
Ordinary share
78.85
68.70
60.25
64.98
74.40
Preferred share
92.30
71.14
65.02
72.86
84.70
High for the year1
Ordinary share
87.55
85.80
76.85
69.90
76.90
Preferred share
96.02
98.92
82.34
78.40
85.84
Low for the year1
Ordinary share
55.00
65.55
57.05
58.62
62.40
Preferred share
64.94
69.52
57.54
64.52
68.92
Dividend
Ordinary share
1.83
1.83
1.83
1.83
2.022
Preferred share
1.85
1.85
1.85
1.85
2.042
Market capitalization1,3
in bn euros
36.6
30.3
26.2
28.5
32.9
Ordinary shares
in bn euros
20.5
17.8
15.5
16.7
19.1
Preferred shares
in bn euros
16.1
12.4
10.7
11.9
13.8
1 Closing share prices, Xetra trading system.
2 Proposal to shareholders for the Annual General Meeting on April 28, 2025.
3 Based on all outstanding shares, i.e. number of shares issued less treasury stock.
Henkel shares still represent a good investment for investors with a very long-term horizon. Shareholders
who invested the equivalent of 1,000 euros when Henkel preferred shares were issued in 1985, and reinvested
the dividends received (before tax deduction) in the stock, had a portfolio value of 33,457 euros at the end
of 2024. This equates to an average return of 9.4 percent per year. Over the same period, the DAX provided
an average annual return of 7.5 percent.
HENKEL ANNUAL REPORT 2024
32
THE COMPANY
SHARES AND BONDS
COMBINED MANAGEMENT
REPORT
CONSOLIDATED FINANCIAL
STATEMENTS
FURTHER INFORMATION
CREDITS/LEGAL
CONTACTS
FINANCIAL CALENDAR
Performance of Henkel shares versus market
January through December 2024
in euros
65
70
75
80
85
90
January
February
March
April
May
June
July
August
September
October
November
December
Dec. 31, 2023:
72.86 euros
Dec. 31, 2024:
84.70 euros
Henkel preferred share
Henkel ordinary share (indexed)
DAX (indexed)
STOXX® Europe 600 Index (indexed)
HENKEL ANNUAL REPORT 2024
33
THE COMPANY
SHARES AND BONDS
COMBINED MANAGEMENT
REPORT
CONSOLIDATED FINANCIAL
STATEMENTS
FURTHER INFORMATION
CREDITS/LEGAL
CONTACTS
FINANCIAL CALENDAR
Performance of Henkel shares versus market
2015 through 2024
in euros
50
100
150
200
Dec. 31, 2014:
89.42 euros
Dec. 31, 2024:
84.70 euros
Henkel preferred share
Henkel ordinary share (indexed)
DAX (indexed)
STOXX® Europe 600 Index (indexed)
2015
2016
2017
2018
2019
2020
2021
2022
2024
2023
HENKEL ANNUAL REPORT 2024
34
THE COMPANY
SHARES AND BONDS
COMBINED MANAGEMENT
REPORT
CONSOLIDATED FINANCIAL
STATEMENTS
FURTHER INFORMATION
CREDITS/LEGAL
CONTACTS
FINANCIAL CALENDAR
Henkel represented in all major indices
Henkel shares are traded on the Frankfurt Stock Exchange, predominantly on the Xetra electronic trading
platform. Henkel is also listed on all regional stock exchanges in Germany. In the USA, investors are able to
invest in Henkel preferred and ordinary shares by way of stock ownership certificates obtained through the
Sponsored Level I ADR (American Depositary Receipt) program. One share is equivalent to four ADRs. The
number of ADRs outstanding for ordinary and preferred shares decreased to 24.7 million at year-end (2023:
34.7 million).
Share data
Preferred shares
Ordinary shares
Security code no
604843
604840
ISIN code
DE0006048432
DE0006048408
Stock exchange symbol
HEN3.ETR
HEN.ETR
Number of shares
178,162,875
259,795,875
Treasury shares1
15,306,248
3,290,703
1 Further details of treasury shareholdings can be found in the section “Treasury shares” in the notes to the consolidated financial statements.
ADR data
Preferred shares
Ordinary shares
CUSIP
42550U208
42550U109
ISIN code
US42550U2087
US42550U1097
ADR symbol
HENOY
HENKY
Ratio
1 share : 4 ADRs
1 share : 4 ADRs
HENKEL ANNUAL REPORT 2024
35
THE COMPANY
SHARES AND BONDS
COMBINED MANAGEMENT
REPORT
CONSOLIDATED FINANCIAL
STATEMENTS
FURTHER INFORMATION
CREDITS/LEGAL
CONTACTS
FINANCIAL CALENDAR
The international importance of Henkel preferred shares derives not least from their inclusion in many
leading indices that serve as important indicators for capital markets, and as benchmarks for fund managers.
Particularly noteworthy in this respect are the STOXX® Europe 600, MSCI World and FTSE World Europe
indices. Henkel’s inclusion in the Dow Jones Titans 30 Personal & Household Goods Index also makes it one
of the most important corporations in the personal and household goods sector worldwide. As a DAX stock,
Henkel is one of the 40 most significant exchange-listed corporations in Germany.
At year-end 2024, Henkel ranked 30th in terms of free float-weighted market capitalization of the preferred
shares included in the DAX index (2023: 27th). The weighting of Henkel preferred shares in the DAX decreased
slightly to 0.98 percent (2023: 1.01 percent).
Once again, our advances in sustainable management earned recognition from external experts in 2024.
Our performance with respect to non-financial indicators (environmental, social and governance themes)
was reflected in regular positive assessments by various national and international rating agencies, from
which – among other things – sustainability indices are derived.
Henkel has been represented in the ethics index FTSE4Good since 2001. We are also listed in a number of
sustainability indices, including the Solactive ISS Prime Rated ESG Index Series, the Euronext Sustainable
Europe 120 Index, the Euro 120 Index and the World 120, and our membership of the MSCI ACWI ESG
Leaders Index has been confirmed. Henkel is, moreover, one of only 50 corporations worldwide to be included
in the renowned Global Challenges Index of particularly sustainable companies that make substantial con-
tributions to overcoming major global challenges, such as climate change.
HENKEL ANNUAL REPORT 2024
36
THE COMPANY
SHARES AND BONDS
COMBINED MANAGEMENT
REPORT
CONSOLIDATED FINANCIAL
STATEMENTS
FURTHER INFORMATION
CREDITS/LEGAL
CONTACTS
FINANCIAL CALENDAR
International shareholder structure
According to notifications received by the Company, members of the Henkel family share-pooling agreement
owned a majority of the ordinary shares amounting to 61.8 percent as of November 23, 2023. In addition,
BlackRock, Inc. last notified us on January 24, 2025 that its total share of voting rights – related to ordinary
and preferred shares – was 3.1 percent as of January 21, 2025. As of December 31, 2024, moreover, Henkel
held 3.3 million ordinary shares as treasury stock, which is equivalent to 1.3 percent of ordinary shares
(unchanged from the previous year).
Compared to the ordinary shares, our preferred shares are the significantly more liquid class of Henkel
stock. Apart from the treasury shares held, which amount to 8.6 percent of the preferred shares (previous
year: 8.6 percent), they are entirely in free float. A large majority are owned by institutional investors whose
portfolios are, in most cases, broadly distributed internationally. As of December 31, 2024, treasury stock
amounted to 15.3 million preferred shares, remaining almost unchanged year on year.
Ordinary shares
Preferred shares
At December 31, 2024
Source: Henkel, CMi2i
At December 31, 2024
Source: Henkel, CMi2i
Institutional
investors
Retail investors
Treasury shares
8.6%
29.0%
62.4%
Henkel family share-pooling
agreement
Institutional investors
Retail investors
Treasury shares
13.9%
1.3%
23.0%
61.8%
HENKEL ANNUAL REPORT 2024
37
THE COMPANY
SHARES AND BONDS
COMBINED MANAGEMENT
REPORT
CONSOLIDATED FINANCIAL
STATEMENTS
FURTHER INFORMATION
CREDITS/LEGAL
CONTACTS
FINANCIAL CALENDAR
Institutional investors holding Henkel shares by region
At December 31, 2024
Source: CMi2i
Employee share plan
Since 2001, Henkel has offered an employee share plan (ESP) enabling its employees to acquire Henkel
shares. In 2024 again, Henkel added 33 eurocents for each euro invested by an employee (limited to
4 percent of salary up to a maximum of 4,992 euros per year). Around 13,000 employees in 59 countries
purchased Henkel preferred shares under this program in 2024. At year-end, some 16,500 employees held
a total of around 3.1 million shares in the ESP securities accounts, representing 1.7 percent of total preferred
shares outstanding. The lock-up period for newly acquired ESP shares is three years.
Investing in Henkel shares through long-term participation in our ESP has proven to be beneficial for our
employees in the past. Employees who invested 100 euros each month in Henkel shares since the program
was first launched held portfolios valued at 93,531 euros at the end of 2024 (assuming reinvestment of the
dividends before tax deduction), which equates to a total return of 65,931 euros or 339 percent of the cumu-
lative investment.
USA
UK
Rest of Europe
France
4.5% <0.1%
5.3%
6.2%
6.5%
14.1%
20.0%
43.4%
Germany
Canada
Asia-Pacific
Rest of world
HENKEL ANNUAL REPORT 2024
38
THE COMPANY
SHARES AND BONDS
COMBINED MANAGEMENT
REPORT
CONSOLIDATED FINANCIAL
STATEMENTS
FURTHER INFORMATION
CREDITS/LEGAL
CONTACTS
FINANCIAL CALENDAR
Henkel bonds
At the end of fiscal 2024, six Henkel bonds were outstanding with a total volume of around 1.9 billion euros
and maturities ranging between 2025 and 2032.
The Sustainable Finance Framework established in October 2021 enables Henkel to issue two types of
bonds on the capital market: bonds tied to sustainability criteria that are linked to the sustainability targets
of Henkel, and “green bonds” that only fund selected sustainable projects. The 650 million euro bond issued
in September 2022 with a term of five years is tied to the achievement of certain targets by year-end 2025
relating to the sustainability of our packaging and to the reduction of greenhouse gas emissions. Failure to
meet the sustainability targets at the relevant audit points will incur an interest rate premium that raises the
cost of funding the outstanding three bonds linked to those criteria. The issuance proceeds will be used for
general corporate purposes, including the refunding of maturing bonds.
As of the end of fiscal 2024, three bonds linked to sustainability criteria were still outstanding. Also aligned
with sustainability goals is the private placement to reduce plastic waste, which Henkel was the first company
in the world to issue in July 2020. It consists of two tranches – 70 million US dollars and 25 million euros –
with a term of five years. Together, based on this, around 80 percent of Henkel's capital market financing is
linked to sustainability in terms of the amount repayable in euros.
Further information can be found on our website: www.henkel.com/creditor-relations
HENKEL ANNUAL REPORT 2024
39
THE COMPANY
SHARES AND BONDS
COMBINED MANAGEMENT
REPORT
CONSOLIDATED FINANCIAL
STATEMENTS
FURTHER INFORMATION
CREDITS/LEGAL
CONTACTS
FINANCIAL CALENDAR
Bond data1
Maturity year
2025
2026
2027
2032
Currency
USD
EUR
GBP
USD
EUR
EUR
Volume
70 million
25 million
350 million
250 million
650 million
500 million
Sustainability link2
Green Bond
(Plastic Waste
Reduction)
Green Bond
(Plastic Waste
Reduction)
–
Sustainability-Linked
Bond (SPT 1+3 2025)
Sustainability-Linked
Bond (SPT 1+3 2025)
Sustainability-Linked
Bond (SPT 1+2 2030)
Coupon
1.042% p.a.
0.12% p.a.
1.25% p.a.
1.75% p.a.
2.625% p.a.
0.50% p.a.
Maturity
7/7/2025
7/10/2025
9/30/2026
11/17/2026
09/13/2027
11/17/2032
Issuing year
2020
2020
2019
2021
2022
2021
Issuing price
100%
100%
99.99%
99.692%
99.649%
99.989%
Initial yield
1.042% p.a.
0.12% p.a.
1.25% p.a.
1.815% p.a.
2.701% p.a.
0.501% p.a.
Day count convention
30/360
Act/Act (ICMA)
Act/Act (ICMA)
30/360 (ISMA)
Act/Act (ICMA)
Act/Act (ICMA)
Denomination
200,000 USD
200,000 EUR
100,000 GBP
200,000 USD
100,000 EUR
100,000 EUR
Security code no.
A289QD
A289X0
A2YN23
A3MQMB
A30VN3
A3MQMC
ISIN
XS2198440260
XS2202774969
XS2057835808
XS2407954002
XS2530219349
XS2407955827
Listing
not listed
Regulated Market of the Luxembourg Stock Exchange
1 Bonds outstanding as of December 31, 2024.
2 The Sustainability-Linked Bonds use the following Sustainability Performance Targets: “SPT 1” (Scope 1+2 emissions), “SPT 2” (Scope 3 emissions), “SPT 3” (Recycled Plastic). More details about the
indicators can be found in our Sustainability Report.
Intensive capital market communication
An active and open information policy ensuring prompt and continuous communication is a major component
of the value-based management approach at Henkel. Hence, shareholders, shareholder associations, par-
ticipants in the capital market, financial analysts, the media and the public at large are kept informed of the
current situation and major business changes relating to the Company. All stakeholders are treated equally
in this respect.
Up-to-date information is incorporated in the regular financial reporting undertaken by the Company. The
dates of the major publications, and also the dates for the press conference on the preceding fiscal year and
the Annual General Meeting (AGM), are published together with all relevant information on the internet at
www.henkel.com/ir. This also serves as the portal for the live broadcast of telephone conferences and parts
of the Annual General Meeting.
HENKEL ANNUAL REPORT 2024
40
THE COMPANY
SHARES AND BONDS
COMBINED MANAGEMENT
REPORT
CONSOLIDATED FINANCIAL
STATEMENTS
FURTHER INFORMATION
CREDITS/LEGAL
CONTACTS
FINANCIAL CALENDAR
Our 2024 Annual General Meeting was held on April 22, 2024 in Düsseldorf, giving shareholders the oppor-
tunity to receive comprehensive information about the Company in person.
Shareholders, the media and the public at large are regularly provided with comprehensive information
through press releases and information events, while occurrences with the potential to materially affect the
price of Henkel shares are communicated in the form of ad-hoc announcements. The Company’s advance-
ments and targets in the sustainability-related issues of environmental, social and governance matters
continue to be published in our Sustainability Report.
Henkel is covered by numerous financial analysts at an international level. A total of 22 equity analysts
regularly publish reports and commentaries on the current performance of the Company.
Analyst recommendations
At December 31, 2024
Basis: 22 equity analysts
Henkel places great importance on dialog with investors and analysts. At 31 capital market conferences and
roadshows attended by people from Europe, North America and Asia, institutional investors and financial
analysts had an opportunity to engage with representatives of the Company and, in many instances, directly
with senior management. In total, we exchanged views with more than 500 different institutional investors
and financial analysts around the globe in over 400 individual or group meetings and telephone or video
conferences.
Buy
Hold
Sell
23%
68%
9%
HENKEL ANNUAL REPORT 2024
41
COMBINED MANAGEMENT
REPORT
43
Corporate governance
at Henkel AG & Co. KGaA
43
Takeover-relevant information
51
Corporate governance statement
93
Fundamental principles of the Group
93
Operational activities
93
Overview
93
Organization and business units
96
Strategic framework for purposeful growth
96
Our mid-term financial ambitions
96
Our strategic framework
99
Integration of the Consumer Brands
business unit
102 Consistent implementation of
our growth agenda in fiscal 2024
105
Management system and performance
indicators
107
Cost of capital
107
Combined separate non-financial report
108
Economic report
108
Macroeconomic development
110
Development by sector
111
Review of overall business performance
111
Results of operations of the Group
111 Sales
113 Operating profit
115 Expense items
116 Other operating income and expenses
116 Financial result
116 Income before tax, net income
and earnings per share (EPS)
117 Dividend
118 Net working capital
118 Free cash flow and net financial position
118 Adjusted return on
capital employed (ROCE)
118 Economic Value Added (EVA®)
119 Comparison between actual business
performance and guidance
HENKEL ANNUAL REPORT 2024
42
121
Business unit performance
121 Adhesive Technologies
129 Consumer Brands
138
Net assets and financial position
138 Acquisitions and divestments
139 Capital expenditures
140 Right-of-use assets
141 Net assets
144 Financial position
145 Financing and capital management
146 Key financial ratios
147
Employees
152
Procurement
155
Production
157
Research and development
163
Marketing and distribution
166
Henkel AG & Co. KGaA
(condensed version according to the
German Commercial Code [HGB])
175
Risks and opportunities report
175
Risks and opportunities
175
Risk management system
176
Risk reporting procedures
178
Major risk categories
198
Major opportunity categories
200
Internal accounting control system
202
Risks and opportunities in summary
203
Forecast
203
Macroeconomic development
204
Development by sector
205
Outlook for the Henkel Group in 2025
HENKEL ANNUAL REPORT 2024
43
THE COMPANY
SHARES AND BONDS
COMBINED MANAGEMENT
REPORT
CONSOLIDATED FINANCIAL
STATEMENTS
FURTHER INFORMATION
CREDITS/LEGAL
CONTACTS
FINANCIAL CALENDAR
CORPORATE GOVERNANCE
AT HENKEL AG & CO. KGAA
The corporate governance disclosures take into account the relevant recommendations of the German
Corporate Governance Code (GCGC) as amended on April 28, 2022, and contain
the takeover-relevant information required according to Sections 289a, 315a Commercial Code [HGB] and
the corporate governance statement per Sections 289f, 315d HGB,
together with explanations pertaining to same. Conditions cited in Sections 289a and 315a HGB which are
not fulfilled at Henkel, are not mentioned.
Unless expressly indicated otherwise, further links or references are not part of the report.
Takeover-relevant information
(Disclosures required per Sections 289a, 315a HGB, and explanations)
Composition of issued capital
As of December 31, 2024, the issued capital (capital stock) of the Company was unchanged year on year at
437,958,750 euros. It is divided into a total of 437,958,750 bearer shares (of no par value), with each share
representing a nominal proportion of the capital stock of 1 euro. Of this total, 259,795,875 are ordinary
shares (total nominal proportion of capital stock: 259,795,875 euros, representing 59.3 percent of the capital
stock), and 178,162,875 are preferred shares without voting rights (total nominal proportion of capital
stock:178,162,875 euros, representing 40.7 percent of the capital stock). All shares are fully paid in. Multiple
share certificates for shares may be issued. In accordance with Art. 6 (4) of the Articles of Association, there
is no right to individual share certificates.
HENKEL ANNUAL REPORT 2024
44
THE COMPANY
SHARES AND BONDS
COMBINED MANAGEMENT
REPORT
CONSOLIDATED FINANCIAL
STATEMENTS
FURTHER INFORMATION
CREDITS/LEGAL
CONTACTS
FINANCIAL CALENDAR
Shareholders’ rights/Annual General Meeting
The rights and obligations of shareholders are governed by the provisions of the German Stock Corporation
Act [AktG], particularly Sections 12, 53a ff, 118 ff and 186 AktG. Further obligations exist under capital market
legislation, such as statutory voting rights notifications per Sections 33 ff German Securities Trading Act [WpHG].
Each ordinary share grants to its holder one vote at the Annual General Meeting (Art. 21 (1) of the Articles
of Association). The preferred shares grant to their holders all shareholder rights apart from the right to vote
(Sections 139 (1) and 140 (1) AktG in conjunction with Art. 6 (1) of the Articles of Association). The preferred
shares carry the following cumulative preferential right of payment in the distribution of profit (Section 139
(1) AktG in conjunction with Art. 35 (2) of the Articles of Association) unless otherwise resolved by the Annual
General Meeting:
The holders of preferred shares receive a preferred dividend in the amount of 0.04 euros per preferred
share. If the profit to be distributed in a fiscal year is insufficient for payment of a preferred dividend of
0.04 euros per preferred share, the arrears are paid without interest from the profit of the following years,
with older arrears to be paid in full before more recent arrears and the preferred dividend from the profit
of a particular fiscal year paid only after the clearance of all arrears. The holders of ordinary shares then
receive a preliminary dividend from the remaining unappropriated profit of 0.02 euros per ordinary share,
with the residual amount being distributed to the holders of ordinary and preferred shares in accordance
with the proportion of the capital stock attributable to them.
If the preferred dividend is not paid out either in part or in whole in a year, and the arrears are not paid
off in the following year together with the full preferred share dividend for that second year, the holders
of preferred shares are accorded voting rights until such arrears are paid (Section 140 (2) AktG). Cancella-
tion or limitation of this preferred dividend requires the consent of the holders of preferred shares
(Section 141 (1) AktG).
The shareholders exercise their rights in the Annual General Meeting per the relevant statutory provisions
(especially Sections 118 ff, 286 AktG) and the Company’s Articles of Association (especially Art. 18 ff). In
particular, they exercise the right to vote conveyed by the shares with voting rights – either personally, by
mail-in (postal) vote, through a legal representative or through a proxy-holder nominated by the Company
(Section 134 (3) and (4) AktG in conjunction with Art. 21 (2) and (3) of the Articles of Association) – and are
also entitled to submit motions on the resolution proposals of management, speak on agenda items, raise
pertinent questions and propose motions (Sections 126 (1) and 131 AktG in conjunction with Art. 23 (2) of
the Articles of Association). Ordinary annual general meetings must be held within the first eight months fol-
lowing the close of the fiscal year (Section 175 (1) sentence 2 AktG); they usually take place within the first
four to five months of the fiscal year.
HENKEL ANNUAL REPORT 2024
45
THE COMPANY
SHARES AND BONDS
COMBINED MANAGEMENT
REPORT
CONSOLIDATED FINANCIAL
STATEMENTS
FURTHER INFORMATION
CREDITS/LEGAL
CONTACTS
FINANCIAL CALENDAR
Until June 9, 2025, the Management Board is authorized to hold Annual General Meetings virtually, without
the shareholders or their proxies being physically present at the AGM venue.
Shareholders whose combined shares represent one-twentieth of the capital stock – equivalent to 21,897,938
ordinary or preferred shares or a combination of the two – may demand that a General Meeting be convened.
Shareholders whose combined share of the capital stock amounts to 500,000 euros or more – equivalent to
500,000 ordinary or preferred shares or a combination of the two – may demand the inclusion of items on
the agenda and publication of same (Section 122 (1) and (2) AktG). In addition, shareholders whose combined
share of the capital stock amounts to 100,000 euros or more – equivalent to 100,000 ordinary or preferred
shares or a combination of the two – may, subject to certain conditions, request that a special auditor be
appointed by the court to examine certain matters (Section 142 (2) AktG).
Through the use of electronic communications, particularly the internet, the Company makes it easy for
shareholders to participate in the Annual General Meeting. It also enables them to be represented by proxy-
holders nominated by the Company for exercising their voting rights. The reports, documents and information
required by law for the Annual General Meeting, including the financial statements, annual reports and
remuneration reports, are made available on the internet, as are the agenda for the Annual General Meeting
and any countermotions or nominations for election by shareholders that require publication. Curricula vitae
are published for all candidates standing for election to the Supervisory Board as shareholder representatives
or to the Shareholders’ Committee.
Restrictions with respect to voting rights or the transfer of shares
Generally, preferred shares do not convey any voting rights (Sections 139 (1), 140 (1) AktG; please refer to
the remarks above for further details). Voting rights attached to treasury shares held by the Company
(Section 71b AktG) and to ordinary shares for which the statutory notification requirement has not been
met (Section 44 sentence 1 WpHG) may not be exercised. The voting rights attached to ordinary shares are
also excluded by law in the cases cited in Section 136 AktG (conflicts of interest concerning ordinary shares
held by members of the Management Board, Supervisory Board or Shareholders’ Committee).
HENKEL ANNUAL REPORT 2024
46
THE COMPANY
SHARES AND BONDS
COMBINED MANAGEMENT
REPORT
CONSOLIDATED FINANCIAL
STATEMENTS
FURTHER INFORMATION
CREDITS/LEGAL
CONTACTS
FINANCIAL CALENDAR
A share-pooling agreement has been concluded between members of the families of the descendants of
Company founder Fritz Henkel, pursuant to which the members agree on how to exercise the voting rights
conveyed by their relevant ordinary shares in Henkel AG & Co. KGaA and ensure their voting rights are
exercised consistently. The agreement also contains restrictions with respect to transfers of the ordinary
shares covered (Art. 7 of the Articles of Association).
If employees acquire Henkel preferred shares through the Employee Share Plan (employee shares), they
receive a certain number of additional Henkel preferred shares without further payment (bonus shares).
These bonus shares are subject to a Company-imposed lock-up period of three years, which begins on the
first day of the respective participation period, and they may not be sold before expiration of this period.
If the relevant employee shares are sold during the lock-up period, the respective bonus shares are forfeited.
Henkel preferred shares acquired by employees through the Long Term Incentive (LTI) Plan 2020+ are also
subject to a Company-imposed lock-up period and may not be sold before expiration of the four-year term
of each tranche.
Contractual agreements also exist with members of the Management Board governing lock-up periods for
Henkel preferred shares which they are required to purchase and hold under the Share Ownership Guideline.
Major shareholders
According to notifications received by the Company as of November 23, 2023, a total of 61.82 percent of
the voting rights are held by members of the Henkel family share-pooling agreement (for additional infor-
mation, please see the disclosures provided in the notes to the consolidated financial statements under
Note 43 on page 354). No other direct or indirect investment in capital stock exceeding 10 percent of the
voting rights has been reported to us or is known to us.
Shares with special rights
There are no shares carrying multiple voting rights, preference voting rights, maximum voting rights or other
special controlling rights.
HENKEL ANNUAL REPORT 2024
47
THE COMPANY
SHARES AND BONDS
COMBINED MANAGEMENT
REPORT
CONSOLIDATED FINANCIAL
STATEMENTS
FURTHER INFORMATION
CREDITS/LEGAL
CONTACTS
FINANCIAL CALENDAR
Statutory requirements and provisions in the Articles of Association governing the
appointment and dismissal of members of the Management Board and amendment
of the Articles of Association
Decisions regarding the appointment and dismissal of personally liable partners are taken by the Shareholders’
Committee of Henkel AG & Co. KGaA and not by the Annual General Meeting (Art. 26 of the Articles of
Association). Henkel Management AG is the sole Personally Liable Partner of the Company (Art. 8 (1) of the
Articles of Association); all its shares are held by Henkel AG & Co. KGaA.
The Supervisory Board of Henkel Management AG is responsible for the appointment and dismissal of
members of the Management Board of Henkel Management AG (Management Board). The appointments
are for a maximum tenure of five years, although initial appointments tend to be for a period of three years,
in accordance with the recommendations of the GCGC. Reappointment or an extension of tenure is permit-
ted for a maximum period of five years in each case (Section 84 (1) AktG). The Supervisory Board of Henkel
Management AG may revoke the appointment as member of the Management Board for good cause or
reason, which may consist of gross dereliction of Management Board duties or inability to properly manage
the Company’s affairs (Section 84 (4) AktG). The Supervisory Board of Henkel Management AG exercises
due discretion when appointing and revoking appointments.
According to Section 84 (3) AktG, a member of a Management Board comprised of more than one person
is entitled to request the Supervisory Board to revoke their appointment if they are temporarily unable to
perform the duties associated with the tenure because they are on maternity or parental leave, need to
nurse a relative or are themselves ill. If a member of a Management Board exercises this right, the Supervisory
Board must revoke the appointment
1. but, in the case of maternity leave, at the same time guarantee reinstatement following completion of
the protection periods specified in Section 3 (1) and (2) of the Maternity Protection Act [MuSchG],
2. but, in the case of parental leave, the need to nurse a relative, or sickness, at the same time guarantee
reinstatement following a period of up to three months, as requested by the Management Board
member; the Supervisory Board can refuse to revoke the appointment for good cause.
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The Management Board is composed of at least two members in accordance with Art. 7 (1) of the Articles of
Association of Henkel Management AG. The Supervisory Board of Henkel Management AG is also responsible
for determining the number of members on the Management Board. The Supervisory Board can appoint a
member of the Management Board to chair the Management Board (Section 84 (2) AktG; Art. 7 (1) of the
Articles of Association of Henkel Management AG).
If its management or executive board comprises more than three people, a listed corporation that is subject
to the German Codetermination Act of 1976 must appoint at least one woman and at least one man to that
executive body (participation requirement pursuant to Section 76 (3a) AktG). This participation requirement
is applied accordingly to the Management Board of Henkel Management AG.
Unless otherwise mandated by statute or the Articles of Association, the resolutions of the Annual General
Meeting of Henkel AG & Co. KGaA are adopted by simple majority of the votes cast. If a majority of capital is
required by statute, resolutions are adopted by simple majority of the voting capital represented (Art. 24 of
the Articles of Association). This also applies to changes in the Articles of Association. However, modifications
to the object of the Company require a three-quarters’ majority (Section 179 (2) AktG). The Supervisory
Board and Shareholders’ Committee have the authority to resolve purely formal modifications of and
amendments to the Articles of Association (Art. 34 of the Articles of Association). By resolution of the Annual
General Meeting, the Supervisory Board is also authorized to amend Art. 5 and 6 of the Articles of Association
with respect to each use of the authorized capital and upon expiration of the term of the authorization.
Authorization of the Management Board to issue or buy back shares
Authorized capital was created by resolution of the Annual General Meeting on June 17, 2020 (Art. 6 (5) of
the Articles of Association). Under the new resolution, the Personally Liable Partner is authorized, with the
approval of the Shareholders’ Committee and of the Supervisory Board, to increase the capital of the Com-
pany at any time through to June 16, 2025, by up to a nominal amount of 43,795,875 euros in total from
the issuance of up to 43,795,875 new non-voting preferred bearer shares for cash consideration (Authorized
Capital 2020). The new shares have exactly the same rights in terms of distribution of profits or of the
Company’s assets as the preferred bearer shares already in circulation in respect of eligibility. Existing
shareholders must be granted pre-emptive subscription rights. Pursuant to Section 186 (5) sentence 1 AktG,
the new shares can be acquired by one or more banks or companies to be nominated by the Personally
Liable Partner on condition that they offer them for purchase to the shareholders.
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The authorization may be utilized to the full extent allowed, once or several times in installments. The new
non-voting preferred shares participate in profit distributions from the beginning of the fiscal year in which
they are issued. To the extent permitted by law, the Personally Liable Partner may, with the approval of the
Shareholders’ Committee and of the Supervisory Board and in derogation from Section 60 (2) AktG, determine
that the new shares shall participate in profits from the beginning of a fiscal year that has already elapsed
and for which, at the time of their issuance, no resolution has yet been passed by the Annual General Meeting
on the appropriation of profit.
According to the resolution passed by the Annual General Meeting on April 24, 2023, the Personally Liable
Partner is authorized to purchase ordinary and/or preferred shares of the Company for any permissible
purpose at any time until April 23, 2028 up to a maximum proportion of 10 percent of the capital stock
existing at the time the resolution is adopted by the Annual General Meeting or at the time the authorization
is exercised, whichever is lower. Equity derivatives (put and/or call options and/or forward contracts or a
combination of same) can also be used for such purchase. The volume of any and all shares purchased using
such derivatives must not exceed 5 percent of the capital stock existing at the effective date or at the time
the authorization is exercised, whichever is lower. The terms of the derivatives must not exceed 18 months
in each case and shall be contracted such that, after April 23, 2028, it will not be possible to acquire treasury
shares through exercise of such derivatives.
Moreover, by resolution of the Annual General Meeting of April 24, 2023, the Personally Liable Partner is
authorized to utilize the acquired treasury shares for any permissible purpose, subject to the approval of the
Shareholders’ Committee and the Supervisory Board. To the exclusion of the pre-emptive rights of existing
shareholders, treasury shares may, in particular, be transferred to third parties for the purpose of acquiring
entities or participating interests in entities. Treasury shares may also be sold to third parties against payment
in cash, provided that the selling price is not significantly below the quoted market price at the time of share
disposal. Treasury shares may also be offered for purchase or transferred to members of the Company’s staff,
or managers and employees of affiliated companies, particularly in connection with share-based payment
plans or employee participation programs. The shares may likewise be used to satisfy warrants or conversion
rights granted by the Company. Moreover, the Personally Liable Partner was authorized to withdraw treasury
shares without further resolution by the Annual General Meeting.
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Insofar as shares are issued or used to the exclusion of pre-emptive rights, the proportion of capital stock
represented by such shares shall not exceed 10 percent.
Concerning the acquisition of treasury shares, the number held and their use, please refer to the disclosures
provided in the notes to the consolidated financial statements under Note 10 on pages 262 and 263.
Material agreements governed by a change of control, and compensation agreements in
the event of a takeover bid
The Company has not entered into any material agreements governed by a change of control in the wake
of a takeover bid, nor any compensation agreements with members of the Management Board or the staff
in the event of a takeover bid.
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Corporate governance statement
(Disclosures required under Sections 289f, 315d HGB, and explanations)
In the corporate governance statement issued jointly by the Management Board and Supervisory Board of
Henkel AG & Co. KGaA, the Management Board and Supervisory Board provide information in the relevant
sections of the report on the essential elements of Henkel’s corporate governance structures, relevant cor-
porate governance practices, the composition and working methods of the Management Board, Supervisory
Board and Shareholders’ Committee, and the objectives to be set and the concepts pursued in the composition
of the aforementioned bodies.
It should be noted that Section 317 (2) sentence 6 HGB stipulates that the review of the disclosures by the
external auditor is limited to the question as to whether the requisite information has been disclosed.
The GCGC stipulates disclosures relating to the internal control and risk management systems that extend
beyond the legal requirements governing management reports. These disclosures have been allocated
thematically to the corporate governance statement.
1. GCGC declaration of compliance
The GCGC is substantially aligned to the statutory provisions applicable to a German joint stock corporation
(“Aktiengesellschaft” [AG]). It is applied analogously by Henkel AG & Co. KGaA (the Company) to the extent
that its regulations are applicable to the legal form of a Kommanditgesellschaft auf Aktien. A description is
provided below to enable a better understanding of the principles underlying the management and control
structure of the Company and the special features distinguishing us from an AG which derive from our specific
legal form and our Articles of Association, with indication also of the primary rights accruing to the share-
holders of Henkel AG & Co. KGaA.
Legal form/Special statutory features of Henkel AG & Co. KGaA
Henkel is a “Kommanditgesellschaft auf Aktien” [KGaA]. A KGaA is a company with a legal identity (legal
entity) in which at least one partner has unlimited liability with respect to the Company’s creditors (personally
liable partner/general partner), while the liability for such debts of the other partners participating in the
share-based capital stock is limited to their share capital (limited shareholders, Section 278 (1) AktG).
In terms of its legal structure, a KGaA is a mixture of a joint stock corporation [AG] and a limited partnership
[KG], with a leaning toward stock corporation law. The differences with respect to an AG are primarily as
follows: The duties of the executive board of an AG are performed at the Company by Henkel Management
AG – acting through its Management Board – as the sole Personally Liable Partner (Sections 278 (2), 283 AktG
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in conjunction with Art. 11 of the Articles of Association). The Company is the sole shareholder of Henkel
Management AG.
The rights and duties of the supervisory board of a KGaA are more limited compared to those of the super-
visory board of an AG. Specifically, the supervisory board of a KGaA is not authorized to appoint personally
liable partners, preside over the partners’ contractual arrangements, impose procedural rules on the man-
agement board, or rule on business transactions. These duties are performed for the Company by the Share-
holders’ Committee and by the Supervisory Board of Henkel Management AG respectively. A KGaA is not
required to appoint a director of labor affairs, even if, like Henkel, the company is bound to abide by the
German Codetermination Act of 1976.
The general meeting of a KGaA essentially has the same rights as the shareholders’ meeting of an AG. For
example, it votes on the appropriation of earnings, elects members of the supervisory board (shareholder
representatives) and formally approves the supervisory board’s actions. It appoints the auditor and also
votes on amendments to the articles of association and measures that change the company’s capital, which
are implemented by the management board. Additionally, as stipulated by the legal form, it also votes on
the adoption of the annual financial statements of the company, formally approves the actions of the person-
ally liable partner (general partner), and elects and approves the actions of the members of the shareholders’
committee as established under the articles of association. Resolutions passed in general meeting require
the approval of the personally liable partner where they involve matters which, in the case of a limited part-
nership, require the authorization of the personally liable partners and that of the limited partners (Section 285
(2) AktG) or relate to the adoption of annual financial statements (Section 286 (1) AktG).
According to our Articles of Association, in addition to the Supervisory Board, Henkel also has a standing
Shareholders’ Committee comprising a minimum of five and a maximum of ten members, all of whom are
elected by the Annual General Meeting (Art. 27 of the Articles of Association). The Shareholders’ Committee
is required in particular to perform the following functions (Section 278 (2) AktG in conjunction with Sections 114
and 161 HGB, and Art. 8, 9 and 26 of the Articles of Association):
In particular, the Shareholders’ Committee acts in place of the Annual General Meeting in guiding the
business activities of the Company.
It decides on the appointment and dismissal of the Personally Liable Partners.
It holds both the power of representation and executive powers over the legal relationships prevailing
between the Company and Henkel Management AG, the Personally Liable Partner.
It exercises the voting rights of the Company in the Annual General Meeting of Henkel Management AG,
thereby choosing its three-member Supervisory Board which, in turn, appoints and dismisses the members
of the Management Board.
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It determines the rules of procedure for Henkel Management AG, as the Personally Liable Partner, and
specifies which transactions it must submit to the Shareholders’ Committee for approval.
There were no changes in the Group management and supervisory structure in the year under review. The
following chart illustrates the structure of the Company.
Structure of Henkel AG & Co. KGaA
Declaration of compliance per Section 161 AktG
Where the GCGC offers recommendations concerning the duties and responsibilities of a supervisory board
that are performed by the Company’s Shareholders’ Committee or the Supervisory Board of Henkel Man-
agement AG in compliance with the Articles of Association, those recommendations have been adopted
elects
members
elects
shareholder representatives
elects
Supervisory Board
Shareholders’ Committee
10 members
appoints
supervises
Management Board
Supervisory Board
16 members
Annual General Meeting
Ordinary shares/Preferred shares
appoints, supervises,
participates in management
of the business
advises and
supervises
Henkel Management AG
(Personally Liable Partner)
All shares held by Henkel AG & Co. KGaA
Henkel AG & Co. KGaA
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accordingly for the Shareholders’ Committee and the Supervisory Board of Henkel Management AG respec-
tively. Such recommendations by the GCGC relate to the composition of the Management Board, succession
planning, the length of first terms in office, reappointment and specification of an age limit, definition of a
remuneration system and of total remuneration, specification of the amount of variable remuneration to be
paid to the Management Board and of the monetary arrangements upon termination of a contract.
In February 2024, the Management Board, Supervisory Board and Shareholders’ Committee issued the
following declaration, which was published on the Company’s website:
“Declaration for 2024 pursuant to the German Corporate Governance Code
The Management Board of Henkel Management AG as the personally liable partner (general partner), the
Shareholders’ Committee and the Supervisory Board of Henkel AG & Co. KGaA (“Company”) declare, pursuant
to Section 161 German Stock Corporation Act [AktG], that notwithstanding the specific regulations governing
companies with the legal form of a German partnership limited by shares (“KGaA”) and the pertinent provi-
sions of its Articles of Association (“bylaws”) concretizing this legal form, the Company has complied with
the current recommendations of the German Corporate Governance Code as amended on April 28, 2022
(“GCGC”) since the last declaration of compliance of March 2023, and is currently complying and will comply
in future with the GCGC recommendations subject to certain derogations indicated below:
Modifications due to the legal form of a KGaA and their concretization in the bylaws
The Company is a German partnership limited by shares (“Kommanditgesellschaft auf Aktien” [KGaA]).
The tasks and duties of an executive board in a German joint stock corporation (“AG”) are assigned to
the personally liable partner(s) of a KGaA. The sole personally liable partner of the Company is Henkel
Management AG, the Management Board (“Management Board”) of which is thus responsible for managing
the business activities of the Company. The Company is the sole shareholder of Henkel Management AG.
The Shareholders’ Committee established in accordance with the Company’s bylaws acts in place of the
Annual General Meeting of the Company, its primary duties being to engage in the management of the
Company’s affairs and to appoint and dismiss personally liable partners; it holds representative authority
and the power of management, allowing it to preside over the legal relationships of the Company and
Henkel Management AG as the latter’s personally liable partner. It also issues the rules of procedure
governing the actions of Henkel Management AG.
The Shareholders’ Committee is likewise responsible for exercising the Company’s voting rights at Annual
General Meetings of Henkel Management AG. In so doing, it likewise appoints the members of the Supervisory
Board of Henkel Management AG, which in turn appoints the members of the Management Board. The
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Supervisory Board of Henkel Management AG comprises three members; these are also members of the
Shareholders’ Committee.
GCGC recommendations that refer to the duties and responsibilities of a supervisory board that are performed
by the Shareholders’ Committee in accordance with the Company’s bylaws are analogously applied to the
Shareholders’ Committee.
The rights and duties of the supervisory board of a KGaA are more limited compared to those of the
supervisory board of an AG. In particular, the Supervisory Board of the Company has no authority to
appoint personally liable partners or to preside over the associated contractual arrangements; it may not
issue rules of procedure governing the actions of the Management Board, and it is not permitted to
designate business transactions requiring oversight consent. These duties are performed by the Share-
holders’ Committee or the Supervisory Board of Henkel Management AG. A KGaA is not required to
appoint a director of labor affairs, even if, like Henkel, the company is bound to abide by Germany’s
Codetermination Act of 1976.
The general meeting of a KGaA essentially has the same rights as the shareholders’ meeting of an AG. In
addition, it resolves on the adoption of the annual financial statements of the corporation and formally
approves the actions of the personally liable partner(s). At Henkel, the General Meeting also elects the
Shareholders’ Committee and formally approves its actions. Numerous resolutions passed in the general
meeting require the consent of the personally liable partner, including approval of the annual financial
statements of the corporation.
GCGC recommendations
Where the GCGC offers recommendations concerning the duties and responsibilities of a supervisory board
that are performed by the Company’s Shareholders’ Committee or the Supervisory Board of Henkel Man-
agement AG due to legal form or in compliance with the Articles of Association, those recommendations
have been adopted accordingly for the Shareholders’ Committee and the Supervisory Board of Henkel
Management AG respectively. Such recommendations contained in the GCGC relate to the composition of
the Management Board, succession planning, the length of first terms in office, reappointments and spec-
ification of an age limit, definition of a remuneration system and of total remuneration, and specification of
the amount of variable remuneration to be paid to the Management Board and of the monetary arrangements
upon termination of a contract (Recommendations B.1 to B.5 and G.1 to G.16).
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Taking into account the special features arising from its legal form and bylaws, the Company complies with
all recommendations (“shall” provisions) of the GCGC, with the following exceptions:
According to Recommendation C.5 GCGC, the supervisory board should not include any management
board members of (other) listed corporations who hold more than two supervisory board appointments
or comparable offices in non-group listed corporations. Nor should these management board members
chair a supervisory board of a non-group listed corporation. Whether the number of mandates held by
members of the management board who sit on the supervisory board remains appropriate is to be assessed
on a case-by-case basis as a more reasonable approach, rather than by means of a rigid upper limit.
The Company has derogated and continues to derogate from Recommendation G.12 GCGC – according
to which, in the event of termination of a Management Board contract, the payment of any outstanding
variable remuneration components attributable to the period up to termination of the contract should
be based on the originally agreed targets and comparison parameters and in accordance with the due
dates or lock-up periods specified in the contract – insofar as – under the former remuneration policy –
all lock-up periods relating to a board member’s own investment in Henkel preferred shares (share deferral)
expire upon termination or in the event of death. By the same token, if the recipient dies, LTI entitlements
with regard to outstanding tranches are settled on the basis of budget figures and paid to the heirs.
Suggestions of the Code
Notwithstanding the aforementioned special features arising from its legal form, the Company has adopted
and will continue to adopt the discretionary suggestions of the GCGC.
Düsseldorf, February 2024
Management Board
Shareholders’ Committee
Supervisory Board”
The corresponding declarations of compliance together with the reasons for deviations from recommendations
are publicly accessible on our website: www.henkel.com/corporate-governance
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2. Availability of remuneration policy, remuneration report and adoption
of remuneration resolution
According to Section 120a (1) AktG, the general meeting of an exchange-listed corporation adopts resolutions
approving the remuneration policy for management board members as submitted by the supervisory board
whenever the policy is substantially amended, and at least every four years. The Annual General Meeting of
Henkel AG & Co. KGaA on April 24, 2023 approved the remuneration policy applicable since 2023 for the Man-
agement Board per Section 87a (1) AktG by a majority of 98.04 percent. The remuneration policy and the
corresponding resolution are publicly accessible on our website: www.henkel.com/corporate-governance
The remuneration of the members of the Supervisory Board and of the Shareholders’ Committee is governed
by Article 17 (Supervisory Board remuneration) and Article 33 (Shareholders’ Committee remuneration) of
the Articles of Association of Henkel AG & Co. KGaA. According to Section 113 (3) AktG, listed corporations
must adopt resolutions governing the remuneration of their supervisory board members at least every four
years, whereby a resolution simply confirming the status quo is permissible. By resolution adopted by the
Annual General Meeting on April 22, 2024, the remuneration of members of the Nominations Committee
and members of the new Sustainability Committee, which was established in 2024, of the Supervisory Board
was approved by a majority of 99.85 percent, and Art. 17 of the Articles of Association was amended
accordingly. Taking into consideration the aforementioned adjustments, the rules governing the remuneration
of the Supervisory Board and the Shareholders’ Committee were also confirmed. The remuneration policy
for the members of the Supervisory Board and the Shareholders’ Committee and the respective resolutions
are publicly accessible on the website www.henkel.com/ir
According to Section 120a (4) AktG, the general meeting of an exchange-listed corporation must approve
the remuneration report for the previous fiscal year, which report must be compiled and audited per Section
162 AktG. The Remuneration Report for fiscal 2023, which details the remuneration of the corporate bodies
of Henkel, together with the associated audit opinion relating to the statutory formal audit and additional
substantive audit, is publicly accessible on the website www.henkel.com/ir. Likewise, the remuneration
report for fiscal 2024 including audit opinion will be made publicly accessible on the website.
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3. Material corporate governance principles and practices
Material codes of conduct at Henkel
The Management Board, the Shareholders’ Committee and the Supervisory Board are committed to ensuring
that the management and stewardship of the Company are conducted in a responsible and transparent
manner aligned to achieving a long-term increase in shareholder value. With this in mind, they have pledged
allegiance to the following three principles:
Value creation as the foundation of our management approach
Sustainability achieved through the application of socially responsible management principles
Transparency supported by an active and open information policy
The members of the Management Board conduct the Company’s business with the care of a prudent and
conscientious business director in accordance with statutory requirements, the Articles of Association of
Henkel Management AG and the Articles of Association of Henkel AG & Co. KGaA, the rules of procedure
governing the actions of the Management Board, the provisions contained in the individual contracts of
employment of its members, and also the compliance guidelines and resolutions adopted by and within
the Management Board.
Corporate management principles which go beyond the statutory requirements are derived from our purpose,
our vision, and our values. For our Company to be successful, it is essential that we share a common approach
to entrepreneurship. We have defined a clear strategic framework with a long-term horizon. It guides us in
making the right decisions and helps us to concentrate on our strategic priorities and focus resolutely on our
ambition for the future.
We want to create value – for our customers and our consumers, for our people, for our shareholders, as
well as for the wider society and communities in which we operate.
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Our purpose:
Pioneers at heart for the good of generations.
Our vision:
Win the 20s by outperforming the markets through innovative and sustainable solutions.
Our values:
We put our customers and consumers at the center of what we do.
We value, challenge and reward our people.
We drive excellent sustainable financial performance.
We are committed to leadership in sustainability.
We shape our future with a strong entrepreneurial spirit based on our family business tradition.
The corporate bodies of Henkel and our employees worldwide are guided by this purpose, this vision, and
these values. They reaffirm our ambition to meet the highest ethical standards in everything we do. And they
guide our employees in all the day-to-day decisions they make, providing a compass for their conduct and
actions.
Henkel is committed to ensuring that all business transactions are conducted in an ethically irreproachable,
legal fashion. Consequently, Henkel expects all our employees not only to respect the Company’s internal
rules and all relevant laws, but also to avoid conflicts of interest, to protect Henkel’s assets and to respect
the social values of the countries and cultural environments in which Henkel does business. The Manage-
ment Board has therefore issued a series of Group-wide codes and standards with precepts that are binding
worldwide. These regulatory instruments are not static, but are periodically reviewed and amended as
appropriate, evolving in step with the changing legal and commercial conditions that affect Henkel as a
globally active corporation. The Code of Conduct supports our employees in ethical and legal issues. The
Leadership Commitments define the principles of management conduct. The Code of Sustainability describes
the principles that drive our sustainable, socially responsible approach to business. This code also enables
Henkel to meet the commitments derived from the United Nations Global Compact.
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Key principles governing the internal control and risk management systems
A responsible and appropriate approach to managing risks and opportunities is a central element of cor-
porate governance at Henkel. To enable us to identify and assess risks and opportunities early on, we have
established coordinated risk management and internal control systems that are closely aligned to the nature
and scope of the business activities and the risk situation of Henkel. Both systems feature operational
components alongside the accounting-related elements. Sustainability aspects are also taken into account,
whereby the internal sustainability control system is still being established. The internal control system and
the risk management system are subject to continuous improvement in line with regulatory requirements.
The aforementioned systems are supplemented by a compliance management system aligned to the risk
situation of the Company. Overall responsibility for ensuring effective control and risk management and
compliance with laws and guidelines lies with the Management Board.
1st line
Operational Management
Group, Business Units, Functions,
Global Business Solutions,
Affiliated Companies
Risk Management System,
Internal Control System,
Compliance Management
System, etc.
Corporate Audit
2nd line
Management Board
3rd line
External Auditor
Supervisory Board/Audit Committee
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The three-lines model provides the organizational framework for these systems. The first line of defense is
provided by those charged with managing business operations, who are responsible for identifying, assessing
and managing the associated risks. The second line of defense relates to the specific governance of Henkel
and is responsible for developing/improving and implementing the processes and systems for use by the
first line. The Management Board and Supervisory Board each receive regular risk management, internal
control system and compliance reports. The third line of defense is provided by the Corporate Audit function,
which acts as an impartial oversight body and regularly reports to the Management Board and the Supervisory
Board’s Audit Committee on its audit findings. For financial reporting, the three lines of defense are supple-
mented by the activities of the external auditor.
Risk management
Further details relating to governance and the risk management processes that have been put in place
can be found in the risks and opportunities report on pages 175 to 202.
Internal control system
The internal control system encompasses all systematically defined control mechanisms and oversight activities
and aims to ensure:
Effective and efficient business operations
Appropriate reporting procedures
Compliance with all laws and regulations of relevance for Henkel
At Henkel, the design of the internal control system is aligned to COSO – the internationally acknowledged
internal control framework – and to auditing standard IDW PS 982. It is subject to continuous development
and improvement. Policies that apply throughout the Group describe the material principles and objectives,
as well as the structure, of the internal control system and the approach to examining the effectiveness of
same. The design of the internal control system extends beyond just an internal accounting control system
and includes control mechanisms for operational and other material business processes, such as procurement,
distribution, personnel management and – to a certain degree – supply chain. The key characteristics of our
internal control and risk management systems relating to financial reporting and accounting processes per
Section 315 (4) HGB are described in our Risks and Opportunities Report on pages 200 and 201.
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Compliance management
Ensuring compliance with laws and regulations is an integral component of our business processes. Henkel
has established a Group-wide compliance organization with locally and regionally responsible compliance
officers led by a globally responsible General Counsel & Chief Compliance Officer (CCO). The compliance
organization operates on three levels: “Prevention,” “Detection,” and “Response.” The General Counsel & CCO,
supported by the Corporate Compliance Office and the interdisciplinary Compliance & Risk Committee,
manages and controls compliance-related activities undertaken at the corporate level, coordinates training
courses, oversees adherence to both internal and external regulations, supports the development and im-
plementation of in-house standards that are binding worldwide, and takes appropriate action in the event
of compliance violations.
The local and regional compliance officers are responsible for organizing and overseeing the training activities
and implementation measures tailored to the specific local and regional requirements. They report to the
Corporate Compliance Office. The General Counsel & CCO reports regularly to the Management Board and
to the Supervisory Board’s Audit Committee and the Shareholders’ Committee on identified compliance
violations. In addition, compliance issues and potential violations are also regular items on the agenda of
other local corporate management bodies.
The issue of compliance is moreover an integral part of the target agreements signed by all managerial staff
of Henkel. Due to their position, it is particularly incumbent on them to set the right example for their subor-
dinates, to effectively communicate the compliance rules and to ensure through the implementation of
suitable organizational measures that these are obeyed.
The procedures to be followed in the event of complaints or suspicion of malpractice also constitute an
important element of the compliance policy. Since we place great importance on identifying potential mis-
conduct and taking suitable action to prevent violations, all Henkel employees and stakeholders are required
to report possible misconduct. In addition to our internal reporting system and complaint registration chan-
nels, a compliance hotline operated by an external service provider is available for the purpose of reporting
suspicions of violations – anonymously, if preferred – to the Corporate Compliance Office. The Head of the
Corporate Compliance Office is mandated to initiate the necessary follow-up procedures.
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Our corporate compliance activities are focused on antitrust law and the fight against corruption. In our Code
of Conduct, the corporate guidelines based upon it, and in other publications, the Management Board clearly
expresses its rejection of all infringements of the principles of compliance, particularly antitrust violations
and corruption. We do not tolerate such violations in any way. For Henkel, bribery, anticompetitive agreements,
or any other violations of laws are no way to initiate or conduct business.
A further compliance-relevant area relates to capital market law. Supplementing the legal provisions, internal
codes of conduct have been put in place to regulate the treatment of issues and information that have the
potential to materially affect share prices. The Company has an Ad Hoc Committee comprised of representa-
tives from various departments. In order to ensure that potential insider information is handled as required
by law, this Committee reviews occurrences for their possible effect on share prices, determining the need
to issue reports to the capital markets on an ad hoc basis. The ultimate authority to decide how to handle
potential insider information lies with the Management Board. There are also rules that go beyond the legal
requirements, governing the behavior of the members of the Management Board, the Supervisory Board and
the Shareholders’ Committee, and also employees of the Company who, due to their function or involvement
in projects, have access to potential insider information.
Sustainability management
Our sustainability management is integrated vertically, horizontally and interdepartmentally into our organi-
zational structure, whereby the internal sustainability control system is still being established and is therefore
not included in the following description. The Sustainability Council chaired by CPO Sylvie Nicol is the central
corporate management body in charge of our global sustainability activities. At the request of the Manage-
ment Board, the Council performs coordinating, initiative and control functions relating to sustainability issues.
They include strategic issues and issues of operational relevance, such as climate change and the impacts of
same, human rights, sustainable products and technologies, packaging, product safety, and management
systems. The Sustainability Council establishes project groups to address sustainability issues and oversees
the findings. Additionally, overarching projects are initiated and the achievement of sustainability targets is
regularly monitored. The Sustainability Council is composed of senior executives from all business units and
functions throughout the Company.
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The operating business units are responsible for the operational design of our sustainability strategy and for
providing the resources needed to implement same. They align their brands and technologies, and the sites
involved, to sustainability in line with the specific challenges and priorities of their product portfolio. The
managers in charge of the regional and national companies are responsible for implementing Group specifi-
cations and for ensuring compliance with legal requirements. With the support of the corporate functions
and the operating business units, they develop an implementation strategy appropriate to the individual sites
and their local circumstances.
The corporate functions support the implementation of our sustainability strategy in the respective areas
and the measurement of progress. In this respect, the central Corporate Sustainability function headed by
the Chief Corporate Sustainability Officer acts as an important coordinator and steward.
The Supervisory Board’s Sustainability Committee, which was established in April 2024, deals with sustainable
corporate governance and closely monitors the sustainability strategy of the Management Board and its
further development.
Internal audit
The primary task of our internal audit function (Corporate Audit) is to provide independent and objective
auditing and consultancy services aimed at adding value and improving business processes. A systematic
and target-oriented approach assesses the effectiveness of the risk management system, control mechanisms
and management and monitoring processes and is used to coordinate improvement programs. Regular audits
are conducted around the globe at our production and administrative sites, as well as at our toll/contract
manufacturers and at logistics centers to assure compliance with our codes and standards. Our audits focus
particularly on the areas of procurement, distribution, marketing, finance, IT, personnel, supply chain, pro-
duction, and health and environmental safety. Corporate Audit reports regularly to the Management Board
and the Supervisory Board’s Audit Committee on the findings of its audits.
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Audit Committee
The Supervisory Board’s Audit Committee regularly assesses the appropriateness and effectiveness of the
Group-wide internal control and risk management systems and on the further improvement of same. The
efficacy of the control and risk management systems are examined on the basis of risk reports, the report on
the internal control system and reports submitted by the General Counsel & Chief Compliance Officer and
Corporate Audit. The Audit Committee also approves the relevant risk-based audit schedule submitted by
Corporate Audit.
Appropriateness and efficacy of the internal control and risk management systems
After examining the internal control and risk management systems, including the compliance management
system, and the internal audit reports, the Management Board is not aware of any circumstances that might
indicate that these systems are not appropriate and effective. Generally speaking, however, internal control
and risk management systems – irrespective of their individual design – cannot guarantee with absolute
certainty that all risks will be identified in time or that (compliance) violations will be avoided or discovered.
4. How the Management Board, Supervisory Board and Shareholders’ Committee work;
how their committees are composed and work
Management Board
The Management Board is composed of at least two members in accordance with Art. 7 (1) of the Articles of
Association of Henkel Management AG. The Supervisory Board of Henkel Management AG is also responsible
for determining the number of members on the Management Board; it can appoint a member of the Man-
agement Board as Chair. As a rule, members are appointed to the Management Board for an initial term of
no more than three years. As of December 31, 2024, the Management Board had five members.
The Management Board is solely responsible for managing the Company and for representing Henkel AG &
Co. KGaA in transactions with third parties. The members of the Management Board are segregated from
both the Supervisory Board and the Shareholders’ Committee of Henkel AG & Co. KGaA and from the Super-
visory Board of Henkel Management AG; no member of the Management Board may also sit on either of
the aforementioned Supervisory Board nor the Shareholders’ Committee.
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The Management Board is responsible for managing the entire Company. One of its material tasks is to define
the organizational structure, objectives, and strategic orientation of the Company, including its sustainability
strategy. In doing so, the Board systematically identifies and evaluates the social and environmental risks
and opportunities facing the Company, as well as the environmental and social impacts of the Company’s
business activities. In addition to long-term financial targets, sustainability objectives are also used to deter-
mine the remuneration payable to the Management Board and senior executives.
The Management Board also manages and monitors the activities of the Company by planning, coordinating
and allocating resources, resolving and supporting key individual measures and ensuring appropriate internal
control and risk management systems that also already incorporate sustainability aspects in relevant areas. It
must also ensure compliance with legal provisions, regulatory requirements and internal Company guidelines,
and take steps to ensure that Group companies also observe them. To this end, the Management Board
has put a compliance management system aligned to the Company’s risk situation in place that also offers
employees and third parties the option of reporting suspicions of relevant violations in the Company
without fear of retribution.
It is the duty of the Management Board to prepare the annual financial statements of Henkel AG & Co. KGaA,
the consolidated financial statements and combined management reports for Henkel AG & Co. KGaA and
the Group, the non-financial statements and non-financial reports and the half-year financial reports and
quarterly statements. Together with the Supervisory Board of Henkel AG & Co. KGaA, it compiles the annual
Remuneration Report per Section 162 AktG.
As the executive body of the Group, the Management Board is bound to uphold the interests of the Company
and is responsible for ensuring a sustainable increase in shareholder value. The members of the Management
Board are responsible for managing Henkel’s business operations in their entirety. The individual Manage-
ment Board members are assigned, in accordance with a business distribution plan, areas of competence for
which they bear lead responsibility. The members of the Management Board cooperate closely as colleagues,
informing one another of all major occurrences within their areas of competence and conferring on all actions
that may affect several such areas. Actions and business transactions that are of fundamental relevance for
the Company or pose an unusual risk must be agreed upon in advance by the entire Management Board. The
same applies to matters for which one member of the Management Board requires a decision by the entire
Management Board. The Chair of the Management Board (CEO) is responsible for coordinating all areas of
Management Board responsibility. Further details relating to cooperation and the division of operational
responsibilities within the Management Board are regulated by the rules of procedure issued by the Supervi-
sory Board of Henkel Management AG.
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The Management Board adopts its resolutions in regular meetings called and chaired by the CEO or by written
procedure. Decisions by the Management Board are taken on the basis of detailed information and analysis
submitted by the business units and central functions and – to the extent deemed necessary – by external
consultants. Wherever possible, Management Board resolutions are adopted unanimously. In the absence of
a unanimous vote, the majority decides; in the event of a tie, the Chair of the Management Board has the
casting vote. The Chair cannot force a decision against a majority vote but does have a veto right if outvoted.
Exercising the veto right prompts renewed debate of the resolution by the Management Board. If the veto
right is exercised again in response to the proposed adoption of a resolution, the matter is forwarded to
the Shareholders’ Committee for a final decision. Any member of the Management Board can appeal to the
Shareholders’ Committee in respect of a matter affecting the Company in which they were outvoted.
The Management Board has established various committees and councils – some of which are chaired by a
member of the Management Board – to consult and decide on individual issues, especially in respect of
acquisition/divestment/investment decisions, personnel policy issues and sustainability issues. These commit-
tees and councils examine the planned measures, assess the opportunities and risks, and communicate their
decisions to the Management Board or – to the extent that the Management Board is responsible for making
the appropriate decision – submit to it appropriate proposals for decision.
Supervisory Board
Composition, duties
The Company’s Supervisory Board is composed of equal numbers of shareholder and employee represent-
atives as specified in the Codetermination Act of 1976 [MitbestG], and is made up of 16 members (Section 7
(1) sentence 2 MitbestG in conjunction with Art. 12 (1) of the Articles of Association). The eight shareholder
representatives are elected by the Annual General Meeting and the eight employee representatives (six
employees of the Company and its German subsidiaries and two union representatives) by the workforce,
in keeping with the Codetermination Act of 1976 and the relevant voting procedures. A member of the
Management Board cannot simultaneously be a member of the Supervisory Board. All members of the
Supervisory Board are bound in equal measure to protect the interests of the Company. Members are ap-
pointed for five-year terms unless otherwise specified at election. At the election of the shareholder represent-
atives by the 2024 Annual General Meeting, their term of office was set at four years.
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It is the responsibility of the Supervisory Board to advise and supervise the Management Board in the perfor-
mance of its business management duties, including consideration of sustainability aspects. At regular intervals,
the Supervisory Board discusses with the Management Board the progress regarding implementation of the
business and sustainability strategy, business policy, business performance and planning, the risk situation,
risk management and the internal control system, as well as issues relating to compliance. It reviews the annual
financial statements of Henkel AG & Co. KGaA and the Group’s consolidated financial statements together
with the associated combined management reports, taking into account the reviews and audit reports submitted
by the auditor, and the combined separate non-financial statement for Henkel AG & Co. KGaA and the Group,
which is compiled as a separate non-financial report (Sustainability Report). It also votes on the proposal of
the Management Board regarding the appropriation of profit and submits to the Annual General Meeting a
proposal for the appointment of the external auditor, based on the recommendation submitted by the Audit
Committee. Moreover, the Supervisory Board compiles jointly with the Management Board the annual remuner-
ation report in accordance with Section 162 AktG. Approving the annual financial statements is not the
Supervisory Board’s duty, but rather, due to the legal structure of the Company, the responsibility of the
Annual General Meeting.
As a general rule, the Supervisory Board meets four times per year. The Management Board often does not
participate in such meetings. The Supervisory Board reaches its decisions by a simple majority of the votes
cast. In the event of a tie, the Chair has the casting vote. The Supervisory Board has established an Audit
Committee, a Nominations Committee and a Sustainability Committee.
The Audit Committee is made up of three shareholder and three employee representative members of the
Supervisory Board. Each member is elected by the Supervisory Board based on nominations of their fellow
shareholder or fellow employee representatives on the Board. The Chair of the Audit Committee is elected
based on a proposal of the shareholder representative members. As of December 31, 2024, the following
were members of the Audit Committee: Simone Menne (Chair), Laurent Martinez (Vice Chair) and Dr. Simone
Bagel-Trah as shareholder representatives, and Birgit Helten-Kindlein, Edgar Topsch and Michael Vassiliadis
as employee representatives. All members must be familiar with the sector in which the Company operates
(Section 107 (4) sentence 3 in conjunction with Section 100 (5) AktG). It is, moreover, a statutory requirement
that the Audit Committee includes at least one member with expertise in the field of accounting and at least
one further member with expertise in the field of auditing. According to D.3 GCGC, the Chair of the Audit
Committee should be knowledgeable in at least one of the two fields. Henkel’s Audit Committee meets
these requirements. In particular, among the shareholder representatives on the Audit Committee, Simone
Menne (Chair) and Laurent Martinez have spent many years working on management boards, as chief
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financial officers and being involved in audit committees, and have gained a thorough understanding of and
expertise in the fields of accounting and auditing.
The shareholder representatives believe that Dr. Bagel-Trah is independent from the Company and the
Management Board per Recommendation C.7 GCGC, despite being a member of the Supervisory Board
for more than twelve years. Likewise pursuant to the aforementioned Recommendation, Simone Menne
and Laurent Martinez are also independent from the Company, the Management Board and the controlling
shareholder.
As a general rule, the Audit Committee meets four times per year. It prepares the proceedings and resolutions
of the Supervisory Board relating to the adoption of the annual financial statements and the consolidated
financial statements, the combined management report, including the separate Sustainability Report, and
also the appointment proposal for the auditor of the financial statements and the auditor of the sustainability
reporting to be made to the Annual General Meeting. It issues audit mandates to the auditor of the financial
statements and the auditor of the sustainability report following their appointment by the Annual General
Meeting and defines the focal areas of the audit, as well as deciding on the fee for the audit and other advisory
services provided by the auditor. The Audit Committee specifies a cap on the provision of other advisory
services, i.e. non-audit-related services as permitted in the relevant EU regulations, and oversees adherence
to same. It also monitors the independence and qualifications of the auditor of the financial statements and
the auditor of the sustainability reporting, requiring said auditors to submit a declaration of independence,
which it then evaluates. Furthermore, the Audit Committee monitors the accounts and the accounting process
and assesses the effectiveness of the internal control system, the risk management system and the internal
auditing and review system. It is likewise involved in issues relating to compliance, sustainability and quality
of the financial statements audit and the audit of the sustainability reporting. The Heads of Group functions –
particularly Legal & Compliance, Treasury, Corporate Sustainability and Corporate Audit – report regularly to
the Audit Committee. Prior to the respective publication dates, the Audit Committee discusses the quarterly
statements and the financial report for the half year with the Management Board in a meeting that is also
attended by the external auditor, and discusses the corresponding auditor’s reports. The Audit Committee
also monitors the internal procedure for assessing whether transactions with related parties are conducted
correctly and at arm’s length, and adopts resolutions in place of the Supervisory Board governing the approval
of transactions with related parties as defined in Sections 111a to 111c AktG. In the year under review, no
transactions were conducted with related parties that would have required approval or disclosure per Section
111c AktG. The Chair of the Audit Committee reports promptly and in full to the plenary Supervisory Board
on the content and results of each of the committee meetings.
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The Nominations Committee comprises the Chair of the Supervisory Board and two further shareholder
representatives elected by the Supervisory Board based on nominations of the shareholders’ representatives.
The Chair of the Supervisory Board is also Chair of the Nominations Committee. The Nominations Committee
prepares the resolutions of the Supervisory Board on election proposals by the Supervisory Board to be
presented to the Annual General Meeting for the election of shareholder representatives. In the process, it
considers not just the requisite knowledge, skills and professional experience of the proposed candidates,
but also the Supervisory Board’s defined objectives and the agreed diversity strategy for its composition.
As of December 31, 2024, the following were members of the Nominations Committee: Dr. Simone Bagel-Trah
(Chair), Benedikt-Richard Freiherr von Herman (Vice Chair) and Barbara Kux.
Given the importance of sustainability issues for the Company, the Supervisory Board established a Sustaina-
bility Committee in April 2024 to focus on sustainable corporate governance and closely monitor the sus-
tainability strategy of the Management Board and its further development. The Sustainability Committee is
made up of three shareholder and three employee representative members of the Supervisory Board. Each
member is elected by the Supervisory Board based on nominations of their fellow shareholder or fellow
employee representatives on the Board. The Chair of the Sustainability Committee is elected based on a
proposal of the shareholder representative members. As of December 31, 2024, the following were members
of the committee: Dr. Simone Bagel-Trah (Chair), Barbara Kux (Vice Chair) and Vinzenz Gruber as shareholder
representatives, and Birgit Helten-Kindlein, Dr. Konstantin Benda and Michael Vassiliadis as employee repre-
sentatives.
Shareholders’ Committee
Composition, duties
According to our Articles of Association, in addition to the Supervisory Board, Henkel also has a standing
Shareholders’ Committee comprising a minimum of five and a maximum of ten members, all of whom are
elected by the Annual General Meeting (Art. 27 of the Articles of Association). A member of the Management
Board cannot simultaneously be a member of the Shareholders’ Committee. Members are appointed for
five-year terms unless otherwise specified at election. At the election by the 2024 Annual General Meeting,
the term of office was set at four years. The Shareholders’ Committee comprised ten members in the year
under review.
The Shareholders’ Committee performs the tasks assigned to it by the Annual General Meeting or according
to the Articles of Association. In particular, the Shareholders’ Committee acts in place of the Annual General
Meeting in guiding the business activities of the Company. It is involved in defining corporate policies, ob-
jectives and long-term planning activities, and monitors and regularly advises Henkel Management AG and
its Management Board on the management of the Company. The Shareholders’ Committee takes part in
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important business decisions, offers suggestions with regard to the further development of the Company,
and monitors adherence to budgets.
In addition, it governs the appointment and dismissal of personally liable partners and holds both executive
powers and the power of representation over the legal relationships prevailing between the Company and
Henkel Management AG as the Personally Liable Partner. The Shareholders’ Committee is likewise responsible
for exercising the Company’s voting rights at Annual General Meetings of Henkel Management AG. In doing
so, it also appoints members to the Supervisory Board of Henkel Management AG and is thus closely involved
in the appointment and remuneration of members of the Management Board. The Shareholders’ Committee
has, moreover, determined rules of procedure for Henkel Management AG that specify which transactions
are subject to its approval.
As a general rule, the Shareholders’ Committee meets six times per year. If deemed necessary, it meets without
participation of the Management Board. It also holds a joint conference with the Management Board lasting
several days to discuss issues surrounding corporate strategy, including sustainability. The Shareholders’
Committee reaches its decisions by a simple majority of the votes cast. It has established a Finance and a
Personnel Committee that likewise meet six times per year, as a rule.
The Finance Committee deals primarily with financial matters, questions of financial strategy, financial position
and structure, taxation, balance sheet and insurance policy, accounting, non-financial reporting procedures,
compliance issues and risk management within the Company. It also performs the necessary preparatory
work for decisions to be made by the Shareholders’ Committee in matters for which decision authority has
not been delegated to it. As of December 31, 2024, the following were members of the Finance Committee:
Konstantin von Unger (Chair), Dr. Christoph Kneip (Vice Chair), Dr. Paul Achleitner, James Rowan and
Poul Weihrauch.
The Personnel Committee deals primarily with personnel matters relating to members of the Management
Board and succession planning, with issues pertaining to human resources strategy, and with remuneration,
donations and corporate citizenship activities. It performs the necessary preparatory work for decisions to be
made by the Shareholders’ Committee in matters for which decision authority has not been delegated to it.
It also addresses issues concerned with succession planning and management potential within the individual
business units, taking into account relevant diversity aspects. As of December 31, 2024, the following were
members of the Personnel Committee: Dr. Simone Bagel-Trah (Chair), Dr. Kaspar von Braun (Vice Chair),
Alexander Birken, Thomas Manchot and Jean-François van Boxmeer.
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The respective Chairs of the Finance and Personnel Committees report promptly and in full to the Share-
holders’ Committee on the content and results of each of the committee meetings.
Conflicts of interest
Conflicts of interest must be disclosed in an appropriate manner to the Supervisory Board or Shareholders’
Committee, particularly those that may arise as the result of a consultancy or committee function performed
in the service of customers, suppliers, lenders or other business partners. Members encountering material
conflicts of interest that are not of a merely temporary nature are required to resign their mandate.
No consulting or other service or works agreements existed between members of the Supervisory Board or
Shareholders’ Committee on the one hand, and the Company on the other.
Some members of the Supervisory Board and of the Shareholders’ Committee are or were in past years holders
of senior managerial positions in other companies. If and when Henkel pursues business activities with these
companies, the same arm’s length principles apply as those adopted in transactions with and between unre-
lated third parties. In our view, such transactions do not affect the impartiality of the members in question.
Onboarding/Upskilling
In an onboarding procedure, newly elected members of the Supervisory Board and Shareholders’ Committee
are familiarized with our corporate values, applicable codes and standards, the basic organizational structure
and strategy of the Company together with the main corresponding initiatives, the Company’s operational
performance and other current issues of relevance, and members’ rights and obligations, taking into account
the special features arising from our legal form and Articles of Association. Further, members take it upon
themselves to seek the training needed to perform their duties – as recommended, for example, in the case
of amendments to legal frameworks. These efforts are appropriately supported by the Company. If the need
arises, in-house information events provide specific upskilling.
Interaction between Management Board, Supervisory Board and Shareholders’ Committee
The Management Board, Supervisory Board and Shareholders’ Committee work in close cooperation for the
benefit of the Company.
The Management Board agrees the strategic direction of the Company with the Shareholders’ Committee
and discusses with it the status of strategy implementation at regular intervals.
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In keeping with the precepts of good corporate governance, the Management Board informs the Supervisory
Board and the Shareholders’ Committee regularly, and in a timely and comprehensive fashion, of all relevant
issues concerning strategy and business policy, corporate planning, profitability, the business development
of the Company and major affiliated companies, and also matters relating to risk exposure, risk management,
and compliance. It also regularly discusses the status of strategy implementation, including the sustainability
strategy.
During their tenure, members of the Management Board are subject to a comprehensive ban on competition.
They are obligated to act in the interests of the Company and must not be guided by personal interest when
making decisions. In particular, they must not make personal use of business opportunities owed to the
Company. Any sideline activities – particularly supervisory board mandates outside the Henkel Group – may
only be accepted with the prior approval of the Supervisory Board of Henkel Management AG. The Supervisory
Board of Henkel Management AG decides whether and to what extent any compensation for sideline activities
is to be offset. All members of the Management Board must immediately notify the Chair of the Supervisory
Board of Henkel Management AG and their Management Board colleagues of any conflicts of interest.
For transactions of fundamental significance, the Shareholders’ Committee has established a right of veto in
the procedural rules governing the actions of Henkel Management AG in its function as sole Personally Liable
Partner (Art. 26 of the Articles of Association). This covers, in particular, decisions or measures that materially
change the net assets, financial position or results of operations of the Company. The Management Board
complies with these rights of consent of the Shareholders’ Committee and also duly submits to the decision
authority of the Company’s Annual General Meeting.
Our vision and values, Code of Conduct, Code of Corporate Sustainability and other codes and policies
governing our stewardship of the Company are publicly accessible on our website: www.henkel.com/
company/corporate-culture
Activities of the Supervisory Board and Shareholders’ Committee in the year under review
The activities of the Supervisory Board and its committees are described in the Report of the Supervisory
Board to the Annual General Meeting.
The Shareholders’ Committee continued to discharge its duties diligently in fiscal 2024 in accordance with
the legal statutes and Articles of Association. In compliance with the Articles of Association, it engaged in
the management of the Company and carefully and regularly monitored the work of the Management
Board, advising and supporting it in its stewardship and in the strategic development of the Company. It
also discussed and ruled on those transactions that required its approval.
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Six scheduled meetings took place in the year under review, together with one ad-hoc meeting and a con-
ference with the Management Board of several days’ duration. Likewise, the Personnel and Finance Commit-
tees each met six times. These meetings were held in person with the option of attending via video confer-
ence.
Participation in the meetings of the Shareholders’ Committee and its (sub)committees was 96 percent. For
details of individual members’ attendance at meetings, please refer to the Remuneration Report.
At all ordinary meetings, the reports submitted by the Management Board were discussed, and the general
development of the Company, the status of acquisitions and divestments, and other matters of strategic
importance were analyzed together with the Management Board. The overall economic situation and Henkel’s
business performance were also discussed. Areas of particular focus included the strategic alignment of the
Company and its implementation status – particularly the status of the transformation of the new Consumer
Brands business unit, and the strategies and respective progress updates of the business units, financial
reporting, overall performance by the business units and in the regions, options for advancing business unit
development, capital expenditures and innovations, the sustainability strategy of the Group and business
units, and the short- and medium-term plans of both the Group and the individual business units.
Business transactions requiring the approval of the Shareholders’ Committee were discussed in detail together
with the Management Board and appropriate resolutions adopted, some of which required preliminary
consultation with the relevant committees. The issues involved focused mainly on strategy and financial
planning, major capital expenditures, acquisitions and divestments, fundamental personnel issues and Henkel’s
funding and financing strategy. The Shareholders’ Committee and the Personnel Committee also submitted
appropriate recommendations with regard to Management Board matters to the Supervisory Board of Henkel
Management AG.
Efficiency audit
In adoption of Recommendation D.12 GCGC, the Supervisory Board and the Shareholders’ Committee hold
an internal review every two years to determine the efficiency with which they and their (sub)committees
carry out their duties. This assessment is performed on the basis of an extensive Company-specific checklist
focusing on the relevant key aspects, such as meeting frequency, duration, preparation and organization,
scope and content of the underlying documentation, information and reports submitted by the Management
Board, minutes, committee work and information disclosure, financial control and risk management systems,
requests for information, collaboration with the auditor, corporate governance matters and improvement
opportunities.
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The efficiency of the activities of the Supervisory Board and Shareholders’ Committee and their respective
(sub)committees, and the impartiality of their members, were confirmed in the efficiency audit performed in
2023/2024. Some improvement opportunities were discussed and are in the process of being implemented.
The next efficiency audit is scheduled to take place in 2025/2026.
Supervisory Board of Henkel Management AG
The Company holds all shares in Henkel Management AG. The voting rights to which the Company is entitled
at the general meetings of Henkel Management AG are exercised by the Shareholders’ Committee, which
therefore also elects the members of the Supervisory Board of Henkel Management AG. Members are
appointed for five-year terms unless otherwise specified at election. At the election by the 2024 Annual
General Meeting, the term of office was set at four years.
The Supervisory Board of Henkel Management AG consists of three members who are also members of the
Shareholders’ Committee. At December 31, 2024, the following were members of the Supervisory Board:
Dr. Simone Bagel-Trah (Chair), Dr. Kaspar von Braun (Vice Chair) and Alexander Birken. Electing certain members
to both corporate bodies ensures that the Shareholders’ Committee not only appoints Henkel Management
AG as the Personally Liable Partner, but also (through the members of the Supervisory Board of Henkel
Management AG) appoints its Management Board and therefore the individuals who are responsible for
managing the Company. Effective control of management – i.e. of the Management Board of Henkel
Management AG – is therefore also assured:
Monitoring and control of the Management Board by the Supervisory Board of Henkel Management
AG in accordance with laws governing joint stock corporations
Monitoring and control of Henkel Management AG as the Personally Liable Partner and therefore (also)
its Management Board
– by the Shareholders’ Committee, thus exercising the powers of the Company’s shareholders, and
– by the Supervisory Board at KGaA level in accordance with laws governing joint stock corporations.
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The Supervisory Board of Henkel Management AG is responsible for appointing and dismissing members of
the Management Board, the drafting of their contracts, the assignment of their business duties, and their
remuneration. Regarding Management Board remuneration, the Supervisory Board of Henkel Management AG
is responsible, in particular, for:
Determining and reviewing remuneration policy
Specifying the non-performance-related and variable, performance-related components of remuneration
Defining individual targets each year, and measuring performance with regard to same
Determining the extent to which the financial and non-financial targets have been met each year and
quantifying annual and multi-year variable, performance-related remuneration
Approving the assumption of voluntary duties and supervisory board, advisory board or similar mandates
in other companies, as well as other sideline activities
Corresponding resolutions are adopted by the Supervisory Board of Henkel Management AG after prior
consultation in the Shareholders’ Committee’s Personnel Committee. The general rules governing the
treatment of conflicts of interest are applied. Specifically, members of the Management Board are excluded
from such consultations and resolutions to the extent necessary to avoid conflicts of interest. The Supervisory
Board of Henkel Management AG is responsible for engaging external remuneration experts to either develop
or modify the remuneration system or to assess whether Management Board remuneration is appropriate.
At the same time, it ensures the independence of remuneration experts from both the Management Board
and the Company at large.
Members of the corporate bodies
Details of the composition of the corporate bodies of Henkel and their committees, of the other offices held
by the members of the corporate bodies that are subject to mandatory disclosure under Section 285 no.
10 HGB and of the tenures on said corporate bodies can be found in the presentation on pages 363 to 369.
Members’ curricula vitae are publicly accessible on our website: www.henkel.com
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5. Targets for the proportion of women in the first two management levels below
the Management Board/Adherence to minimum requirements when composing
Management and Supervisory Boards
Targets for the proportion of women in the first two management levels below the
Management Board
Pursuant to Section 76 (4) AktG, management or executive boards of companies that are listed or subject to
codetermination regulations must set targets for the proportion of women in the first two management
levels below the management or executive board. If the proportion of women is below 30 percent at the
time the targets are set, the targets may not be below the proportion already achieved. At the same time,
the schedules set for achievement of the targets must not be longer than five years in each case.
Based on the current personnel mix, the Management Board had established the following targets for the
first two levels of management below the Management Board. These targets are expected to be achieved by
December 31, 2026:
First management level: Proportion of 30 percent women
Second management level: Proportion of 35 percent women
In accordance with the legal requirements, the point of reference for the definition of the management
levels and the proportion of women was based exclusively on Henkel AG & Co. KGaA and not the Henkel
Group – notwithstanding Henkel’s globally aligned management organization. As a result, the figures include
only employees of Henkel AG & Co. KGaA with management responsibility who report directly to the Man-
agement Board (management level 1) and those who report to management level 1 (management level 2).
As of December 31, 2024, women accounted for 29.2 percent of the first management level, and for
42.1 percent of the second management level.
Separately from the targets for the first two levels of management below the Management Board of Henkel
AG & Co. KGaA – and mindful of our globally aligned management organization – it is our ambition to increase
the ratio of women at all levels of management within the Henkel Group to 50 percent by 2025. In 2024, we
were again able to raise the proportion of women in management worldwide – to 41.9 percent as of Decem-
ber 31, 2024 (previous year: 39.5 percent).
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Statutory gender quota for Management Board composition
If its management or executive board comprises more than three people, a listed corporation that is subject
to the German Codetermination Act of 1976 must appoint at least one woman and at least one man to that
executive body (participation requirement pursuant to Section 76 (3a) AktG).
In compliance with this requirement, the Management Board of Henkel Management AG – the sole Personally
Liable Partner of Henkel AG & Co. KGaA, which is a listed corporation subject to the German Codetermination
Act – must include at least one woman and at least one man as it comprises more than three members.
Compliance with this legislation governing the composition of the Management Board was assured through-
out the year under review. As of December 31, 2024, the Management Board was comprised of four men
and one woman. This represents a ratio on the Management Board of 80 percent men and 20 percent women.
Statutory gender quota for Supervisory Board composition
Given Henkel’s position as a listed corporation subject to the German Codetermination Act of 1976, its
Supervisory Board must consist of at least 30 percent women and at least 30 percent men (Section 96 (2) AktG).
Throughout the entire year under review, the statutory minimum quota of both women and men was repre-
sented among both the shareholder representatives and the employee representatives. As of December 31,
2024, the Supervisory Board comprised nine men and seven women. Shareholder representatives consisted
of four men and four women, and employee representatives of five men and three women. This represents
an overall ratio of around 56 percent men and 44 percent women.
6. Diversity considerations regarding composition of the Management Board of
Henkel Management AG and of the Supervisory Board and Shareholders’
Committee of Henkel AG & Co. KGaA
Diversity considerations governing Management Board composition/Succession planning
Notwithstanding the key requirements of qualification, competence and professional excellence for the
relevant areas of responsibility on the Management Board, the Supervisory Board of Henkel Management
AG has specified the following criteria – after consultation in the Shareholders’ Committee and its Personnel
Committee – that must be considered when making Management Board appointments to ensure as broad a
spectrum as possible of knowledge, skills and professional experience (diversity) on the Management Board:
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Education/Career experience
Overall, the members of the Management Board must demonstrate knowledge, skills and professional
experience in the following areas in particular:
– Management/leadership experience: Experience with managing globally operating entities, involvement
of employee representative bodies, leading and motivating employees, succession planning
– Understanding of the business: Knowledge of/experience in industrial/consumer business areas and
key markets, including the social environment in which Henkel operates, as well as knowledge of/
experience in the fields of marketing, selling and distribution, digitalization/e-commerce, research
and development, production/engineering and sustainable management
– Strategic expertise: Experience in developing and implementing prospects and strategies for the future
– Financial expertise: Experience in accounting, auditing financial statements, issues surrounding funding
and capital markets
– Financial control/risk management: Experience in the fields of internal control and risk management
systems, as well as internal auditing systems
– Governance/compliance/ethics: Experience with interaction among corporate bodies (governance)
and in compliance with statutory/in-house requirements; modern understanding of corporate ethics
and how to implement the associated principles
Internationality
The international activities of the Company in both emerging and mature markets should be appropriately
reflected in the composition of the Management Board. Henkel therefore strives to ensure that several
members of different nationalities or with international backgrounds (who have spent several years working
abroad or supervising foreign business activities, for example) are included on the Management Board.
Gender
A reasonable proportion of both genders shall be represented in the Management Board. The Management
Board must include at least one woman and at least one man.
Seniority
Change and continuity are two issues that must be taken into reasonable account when composing the
Management Board. Henkel therefore aims to include members with different levels of seniority on the
Management Board. Irrespective of this requirement, members of the Management Board should generally
not be older than 63.
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Implementation progress
We believe that the aforementioned requirements were met in full in the reporting period.
Overall, the Management Board, which includes one woman, has the knowledge, skills and professional
experience needed to properly and effectively perform its duties. Several members of the Management
Board have international business experience with both emerging and mature markets. No individual on
the Management Board exceeds the suggested maximum age.
Succession planning
The Shareholders’ Committee and the Supervisory Board of Henkel Management AG work with the Man-
agement Board to ensure long-term succession planning with regard to Management Board composition.
Although both in-house and external candidates are considered for future appointment, every effort is
made to select candidates from within the organization who have proven their aptitude for such duties.
In keeping with the requirements of the AktG and the GCGC, long-term succession planning takes account
of the corporate strategy and the aforementioned diversity considerations. Key elements of the systematic
management development process include:
Early identification of suitable candidates
Systematic development of managers by giving them tasks involving increasing levels of responsibility
and in different areas of the Company, regions and functions, where possible
Proven ambition to successfully shape strategy and operations; strong leadership skills
Role model in implementing our corporate values
Each year, the members of the first management level below the Management Board undergo corresponding
assessment, during which the issue of potentially taking on Management Board responsibility and measures
to secure succession are also considered. Management potential within the individual business units is likewise
discussed.
When a Management Board vacancy requires filling, a corresponding profile is developed that incorporates
the specific qualification requirements and the aforementioned criteria; this is then used as the basis for
shortlisting available candidates. Corresponding interviews are held with these candidates. Where necessary,
external consultants are engaged to help develop the profile and to assist with selecting and evaluating
candidates. The Shareholders’ Committee then submits an appropriate recommendation to the Supervisory
Board of Henkel Management AG.
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Diversity considerations governing Supervisory Board composition
Bearing in mind the statutory requirements and the recommendations of the GCGC, and taking into account
the specific situation and global reach of the Company’s activities in industrial and consumer business areas,
the Supervisory Board has specified the following objectives governing its composition. When proposing
candidates to the Annual General Meeting for both routine re-election and replacement by-election, the
Supervisory Board considers these objectives, whereby the particular regulations of the German Codeter-
mination Act of 1976 must be observed with regard to the employee representative candidates.
Education/career experience
Overall, the Supervisory Board must demonstrate knowledge, skills and professional experience in the
following areas in particular:
– Entrepreneurship/leadership experience: Experience in the management of companies, associations,
organizations and networks
– Understanding of the business: Knowledge of/experience in the fields of research and development,
production/engineering, marketing, selling and distribution, digitalization/e-commerce, as well as
knowledge of/experience in industrial/consumer business areas and in the key markets in which
Henkel operates
– Sustainability: Experience in sustainable management
– Financial expertise: Experience in the fields of accounting/accounting processes and with auditing
financial statements, knowledge of financial instruments and funding strategies
– Personnel/society/communication/media: Experience in the field of personnel, in managing employees
and in the areas of society, communication and media
– Financial control/risk management: Experience in the fields of internal control and risk management
systems, as well as internal auditing systems
– Governance/compliance: Experience with interaction among corporate bodies (governance) and in
ensuring compliance with statutory/in-house requirements
Impartiality, integrity
To ensure the impartiality of its counseling activities and supervision of the Management Board, the
shareholder representatives on the Supervisory Board must include what they believe to be a reasonable
number of independent members, bearing in mind the Company’s ownership structure. According to
Recommendation C.6 GCGC, a member of a supervisory board is considered independent if they are
independent from the company and its management board and independent from a controlling share-
holder. Pursuant to Recommendation C.7 GCGC, more than half the shareholder representatives should
be independent from the company and the management board. Supervisory board members are considered
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independent from the company and its management board if they have no personal or business relationship
with the company or its management board that could create a substantial and not merely temporary
conflict of interest. Assessing the independence of shareholder representatives from the Company and its
Management Board requires particular consideration of whether the respective Supervisory Board member
or a close family member
– was a member of the Company’s Management Board in the two years prior to appointment,
– is or was in the past three years a partner of or in the employ of the present or previous external
auditors of the Company,
– receives or has received over the past three years not inconsiderable remuneration of any nature
from Henkel AG & Co. KGaA or one of its affiliates (excluding remuneration for Supervisory Board or
Shareholders’ Committee membership),
– is currently involved in, maintains, or has maintained in the year prior to appointment by Henkel AG
& Co. KGaA or one of its affiliates, a material business relationship – either directly or indirectly – as a
partner, shareholder, member of management or in a leading position of the entity maintaining the
business relationship (e.g. as customer, supplier, lender or advisor),
– is a close family member of a member of the Management Board or
– has been a member of the Supervisory Board for more than twelve years.
If one or more of the aforementioned indicators apply and a shareholder representative is still considered
independent from the Company and/or the Management Board, the reasons for this assessment must be
given in the corporate governance statement.
In keeping with the ownership structure and the Company’s tradition as a family business to which the
Henkel family has been committed ever since the Company was founded in 1876, possession of a controlling
interest or attribution of a controlling interest due to membership in the Henkel family share-pooling agree-
ment is not viewed as a circumstance that could create a substantial and not merely temporary conflict of
interest as defined in the GCGC recommendation. Membership of the Shareholders’ Committee or of the
Supervisory Board of Henkel Management AG is compatible with membership of the Company’s Supervisory
Board. As a rule, however, three, but at least two, of the shareholder representatives on the Supervisory
Board or close members of their families should be neither members of the share-pooling agreement nor
members of the Shareholders’ Committee nor members of the Supervisory Board of Henkel Management
AG, and they must be named accordingly in the corporate governance statement.
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Moreover, no more than two former members of the Management Board should be elected to the Supervisory
Board, nor people
– who – if not members of a management/executive board of a listed corporation – exercise more
than five supervisory board mandates in total for non-Group listed corporations or for non-Group
companies with similar requirements (chairing a supervisory board counts twice),
– who – if members of a management/executive board of a listed corporation – exercise more than two
supervisory board mandates in total for non-Group listed corporations or for non-Group companies
with similar requirements, or chair the supervisory board of a non-Group listed corporation,
– or who perform management or advisory tasks for material competitors.
Members of the Supervisory Board should, moreover, be capable of duly upholding Henkel’s reputation in
the public domain.
Availability
When proposing new candidates to the Annual General Meeting for election to the Supervisory Board,
the Supervisory Board must make sure that the relevant candidates can devote the anticipated time
required to the task.
Internationality
The international activities of the Company should be appropriately reflected in the composition of the
Supervisory Board. Henkel therefore strives to ensure that several members with international back-
grounds (who have spent several years working abroad or supervising foreign business activities, for
example) are included on the Supervisory Board.
Gender
A reasonable proportion of women and men shall be appointed to the Supervisory Board. The statutory
minimum requirement of 30 percent of the respective gender is deemed to be reasonable. Henkel strives
to increase the proportion of the underrepresented gender when new or replacement members are
elected.
Age and length of service
The Supervisory Board should appropriately include representatives from different generations/age groups.
Henkel therefore aims to include members from different generations/age groups on the Supervisory
Board. Irrespective of the aforementioned, nobody should, as a rule, be proposed to the Annual General
Meeting for election to the Supervisory Board who, at the time of the election, has already reached their
70th birthday. Also, as a rule, nobody should be proposed to the Annual General Meeting for election to
the Supervisory Board who, at the time of the election, has already served more than ten years on the
Supervisory Board. However, to ensure continuity, members may also serve on the Supervisory Board for
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longer periods of time in individual cases. In keeping with the ownership structure and the Company’s
tradition as a family business, this applies particularly to members of the Henkel family share-pooling
agreement.
Implementation progress
In addition to the statutory minimum quota specified in Section 96 (2) AktG, the Supervisory Board believes
that the aforementioned requirements were met in full in the reporting period.
Overall, the Supervisory Board believes it has the knowledge and skills needed to properly and effectively
perform its duties. Several of the shareholder representatives on the Supervisory Board are or were members
of management/executive boards in relevant companies and are experienced and skilled in managing
globally operating corporations and in leading employees. Equally, several shareholder representatives have
in-depth knowledge in the fields of research and development, production, marketing, selling and distribution,
digitalization/e-commerce and sustainable management. The same applies for the fields of finance/accounting,
financial control/risk management and governance/compliance.
In addition, several shareholder representatives on the Supervisory Board offer international business experience
or other international expertise.
No shareholder representative exceeded the specified maximum age at the time of their election.
The GCGC recommendations on impartiality have been adopted.
None of the shareholder representatives nor close family members of a shareholder representative is a former
Management Board member, or performs board or committee functions or acts as a consultant for major
competitors, and none are persons whose business or personal relationship with the Company or members
of the Management Board could create a substantial and not merely temporary conflict of interest.
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Dr. Simone Bagel-Trah, Chair of the Supervisory Board, has been on the Supervisory Board for more than
twelve years. According to the GCGC, this could indicate a lack of impartiality. After exercising their due discretion,
the shareholder representatives judged that – despite this indication – Dr. Bagel-Trah is regarded as inde-
pendent from the Company and its Management Board as seen from an overall perspective. Dr. Bagel-Trah
maintains the necessary impartiality toward the Company and the Management Board in the performance
of her respective office and her functions. Her conduct in office demonstrates a critical approach to the issues
and questions to be assessed, while safeguarding the interests of the Company.
The other shareholder representatives had been members of the Supervisory Board for less than twelve
years in the year under review and had not been in any other personal or business relationship with the
Company or its Management Board that could create a substantial and not merely temporary conflict of
interest. According to the precepts of Recommendation C.7 GCGC, these shareholder representatives are
therefore independent from the Company and the Management Board. The shareholder side therefore
believes that all shareholder representatives on the Supervisory Board are independent from the Company
and the Management Board.
Four of the eight shareholder representatives – Barbara Kux, Simone Menne, Vinzenz Gruber and Laurent
Martinez – are not party to the Henkel family share-pooling agreement; under GCGC Recommendation C.9,
they are therefore independent from the controlling shareholder. Apart from Dr. Simone Bagel-Trah, none
of the shareholder representatives in office is a member of the Shareholders’ Committee or the Supervisory
Board of Henkel Management AG.
As such, the shareholder representatives on the Supervisory Board include what they believe to be a reason-
able number of independent members as recommended by the GCGC.
Qualifications matrix for the Supervisory Board
The members of the Supervisory Board believe they have the following skills and experience required
according to the Supervisory Board’s objective:
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Shareholder representatives
Skills and experience of the shareholder representatives serving on the Supervisory Board as of December 31, 2024
Independence
Skills/Experience
Name, gender*,
membership on the
Supervisory Board
from the
Company
and Manage-
ment Board1
from the
controlling
shareholder2
Entrepre-
neurship/
Leadership
experience
Under-
standing
of the
business
Sustainability
Financial
expertise
HR/
Society/
Commu-
nication/
Media
Financial
control/
Risk
management
Governance/
Compliance
Dr. Simone Bagel-Trah (Chair)
(f) (since 4/14/2008)
X
–
X
X
X
–
X
X
X
Lutz Bunnenberg
(m) (since 6/17/2020)
X
–
X
X
–
–
–
X
–
Vinzenz Gruber
(m) (since 4/22/2024)
X
X
X
X
X
–
X
X
X
Benedikt-Richard
Freiherr von Herman
(m) (since 4/11/2016)
X
–
X
X
X
–
–
X
X
Barbara Kux
(f) (since 7/3/2013)
X
X
X
X
X
X
X
X
X
Dr. Anja Langenbucher
(f) (since 4/22/2024)
X
–
X
X
X
X
X
X
–
Laurent Martinez
(m) (since 4/24/2023)
X
X
X
X
X
X
–
X
X
Simone Menne
(f) (since 6/17/2020)
X
X
X
X
X
X
–
X
X
* Gender: male (m); female (f)
1 Shareholder representativesʼ opinion, based on the criteria of Recommendation C.7 (2) GCGC 2022.
2 As defined in Recommendation C.9 GCGC 2022.
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Employee representatives
Skills and experience of the employee representatives serving on the Supervisory Board as of December 31, 2024
Skills/Experience
Name, gender*,
membership on the
Supervisory Board
Entrepre-
neurship/
Leadership
experience
Understanding
of the business
Sustainability
Financial
expertise
HR/
Society/
Commu-
nication/
Media
Financial
control/
Risk
management
Governance/
Compliance
Birgit Helten-Kindlein (Vice Chair)
(f) (since 4/14/2008)
X
X
X
–
X
X
–
Michael Baumscheiper
(m) (since 12/11/2020)
X
X
–
–
X
–
X
Dr. Konstantin Benda
(m) (since 4/24/2023)
X
X
–
X
X
–
X
Sabine Friedrich
(f) (since 9/23/2023)
X
X
X
–
X
–
–
Andrea Pichottka
(f) (from 10/26/2004 to 12/31/2024)
X
X
X
–
X
X
X
Dirk Thiede
(m) (since 4/9/2018)
X
X
–
–
X
–
–
Edgar Topsch
(m) (since 8/1/2010)
X
X
–
–
X
–
X
Michael Vassiliadis
(m) (since 4/9/2018)
X
X
X
–
X
X
X
* Gender: male (m); female (f)
Proposals to the Annual General Meeting for the election of shareholder representatives
Shareholder representatives are elected by the Annual General Meeting, both as part of routine re-elections
and replacement by-elections. To this end, the Supervisory Board must submit appropriate proposals for
adoption by the Annual General Meeting.
When elections are required, the Nominations Committee defines appropriate profiles that consider the
requirements of German company law [AktG] and the GCGC and the aforementioned objective for Supervisory
Board composition. This forms the basis for shortlisting available candidates who are then interviewed.
Where necessary, external consultants are engaged to help develop the profile and to assist with selecting
and evaluating candidates. Finally, the Nominations Committee submits its recommendation to the Supervisory
Board of Henkel AG & Co. KGaA for its election proposal to the Annual General Meeting.
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Diversity considerations governing the composition of the Shareholders’ Committee
Requirements profile
Given the tasks of the Shareholders’ Committee, its members should generally demonstrate knowledge,
skills and experience in the following areas particularly:
Management/leadership experience: Experience in managing and leading globally operating corporations.
Managing executives: Experience in managing and remunerating executives; succession planning.
Understanding of the business: Knowledge of/experience in industrial and/or consumer business areas
and Henkel’s key markets, as well as knowledge of/experience in the fields of marketing, selling and
distribution, digitalization/e-commerce, research and development, and production/engineering.
Sustainability: Experience in sustainable management.
Strategic expertise: Experience in developing and implementing prospects and strategies for the future.
Financial expertise: Experience in accounting, auditing financial statements, issues surrounding funding
and capital markets.
Financial control/risk management: Experience in the fields of internal control and risk management systems,
as well as internal auditing systems.
Governance/compliance: Experience with interaction among corporate bodies (governance) and in ensuring
compliance with statutory/in-house requirements.
Members of the Shareholders’ Committee should not have any personal or business relationship with the
Company or its Management Board that could create a substantial and not merely temporary conflict of
interest.
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In keeping with the ownership structure and the Company’s tradition as an open family business to which
the Henkel family has been committed ever since the Company was founded in 1876, possession of a
controlling interest or attribution of a controlling interest due to membership in the Henkel family share-
pooling agreement is not viewed as a circumstance that could create a substantial and not merely temporary
conflict of interest. Membership of the Company’s Supervisory Board or of the Supervisory Board of Henkel
Management AG is compatible with membership of the Shareholders’ Committee. As a rule, however, five,
and at least four, members of the Shareholders’ Committee or their close families should be neither members
of the share-pooling agreement nor members of the Company’s Supervisory Board, and they must be named
accordingly in the corporate governance statement.
Implementation progress
As of December 31, 2024, the Shareholders’ Committee was comprised of nine men and one woman. This
represents an overall ratio of 90 percent men and 10 percent women. Overall, the Shareholders’ Committee
believes it has the knowledge and skills needed to properly and effectively perform its duties. Several of the
Shareholders’ Committee members are or were members of management/executive boards in relevant
corporations and are experienced and skilled in managing globally operating businesses, developing and
implementing visions and strategies, and the management and remuneration of executives. Equally, several
members have in-depth knowledge in the fields of marketing, selling and distribution, digitalization/
e-commerce, research and development, production/engineering and sustainable management. The same
applies for the fields of finance/accounting, financial control/risk management and governance/compliance.
None of the Shareholders’ Committee members has a business or personal relationship with the Company
or members of the Management Board that could create a substantial and not merely temporary conflict of
interest.
Five of the ten members in office as of December 31, 2024 – Dr. Paul Achleitner, Alexander Birken, James
Rowan, Jean-François van Boxmeer and Poul Weihrauch – are not party to the Henkel family share-pooling
agreement; under GCGC Recommendation C.9, they are therefore independent from the controlling share-
holder. Apart from Dr. Simone Bagel-Trah, none of the members currently in office is a member of the
Company’s Supervisory Board.
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Qualifications matrix
The members of the Shareholders’ Committee believe they have the following skills and experience required
according to the Shareholders’ Committee’s objective:
Members of the Shareholders’ Committee
Skills and experience of the members serving on the Shareholders’ Committee as of December 31, 2024
Independence
Skills/Experience
Name, gender*,
membership on the
Shareholders’ Committee
from the
Company and
Management
Board1
from the
controlling
shareholder2
Manage-
ment/
Leadership
experience
Managing
executives
Under-
standing
of the
business
Sustainability
Strategic
expertise
Financial
expertise
Financial
control/
Risk
management
Governance/
Compliance
Dr. Simone Bagel-Trah
(Chair)
(f) (since 4/18/2005)
X
–
X
X
X
X
X
–
X
X
Konstantin von Unger
(Vice Chair)
(m) (since 4/14/2003)
X
–
X
X
X
X
X
X
–
–
Dr. Paul Achleitner
(m) (since 4/30/2001)
X
X
X
X
X
X
X
X
X
X
Alexander Birken
(m) (since 6/17/2020)
X
X
X
X
X
X
X
X
X
X
Kaspar von Braun, Ph.D.
(m) (since 4/4/2022)
X
–
–
–
X
X
X
X
–
X
Dr. Christoph Kneip
(m) (since 6/17/2020)
X
–
–
–
X
X
X
X
X
X
Thomas Manchot
(m) (since 4/22/2024)
X
–
X
X
X
–
X
–
–
–
James Rowan
(m) (since 4/16/2021)
X
X
X
X
X
X
X
X
X
X
Jean-François
van Boxmeer
(m) (since 4/15/2013)
X
X
X
X
X
X
X
–
–
X
Poul Weihrauch
(m) (since 4/22/2024)
X
X
X
X
X
X
X
X
X
X
* Gender: male (m); female (f)
1 No personal or business relationship with the Company or its Management Board that could create a substantial and not merely temporary conflict of interest.
2 As defined in Recommendation C.9 GCGC 2022.
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Proposals to the Annual General Meeting for the election of members of the Shareholders’ Committee
Members of the Shareholders’ Committee are elected by the Annual General Meeting, both as part of routine
re-elections and replacement by-elections. To facilitate this, the Shareholders’ Committee and the Supervisory
Board are required to submit appropriate proposals for adoption by the Annual General Meeting.
When elections are required, appropriate profiles are defined that consider the aforementioned diversity
objectives for Shareholders’ Committee composition and which serve as the basis for shortlisting available
candidates. Corresponding interviews are then held with these candidates. Where necessary, external con-
sultants are engaged to help develop the profile and to assist with selecting and evaluating candidates.
Following internal consultations, the Shareholders’ Committee and the Supervisory Board then approve the
corresponding proposals for resolution by the Annual General Meeting.
7. Other disclosures
Managers’ transactions
In accordance with Article 19 (1) of Regulation (EU) No. 596/2014 of the European Parliament and Council
on Market Abuse (Market Abuse Regulation), members of the Management Board, the Supervisory Board
and the Shareholders’ Committee, and parties related to same, are obligated by law to disclose notifiable
transactions involving shares in Henkel AG & Co. KGaA or their derivative financial instruments where the value
of such transactions by the member, or a party related to the member, attains or exceeds 20,000 euros
in a calendar year. Transactions disclosed to the Company are publicly accessible on the website
www.henkel.com/ir
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Disclosures relating to the external auditor
The contract to audit the annual and consolidated financial statements of Henkel AG & Co. KGaA in fiscal
2020 onward was publicly tendered in accordance with Regulation (EU) No. 537/2014 of April 16, 2014
(EU Audit Regulation). Based on the outcome of the tender process, PricewaterhouseCoopers GmbH
Wirtschaftsprüfungsgesellschaft, Frankfurt am Main, Germany (PwC), has been the external auditor for the
Henkel Group since fiscal 2020. The Financial Market Integrity Strengthening Act permits the proposal to the
Annual General Meeting of PwC for election as the external auditor up to and including fiscal 2029 without
the need for a new tender process.
The auditors who signed off the audit opinion relating to the consolidated financial statements and the
annual financial statements of Henkel AG & Co. KGaA for fiscal years 2020 to 2022 were Dr. Peter Bartels
and Michael Reuther (the latter being the auditor responsible for the engagement), while the financial state-
ments for fiscal 2023 and 2024 were signed off by Dr. Peter Bartels and Antje Schlotter (the latter being the
auditor responsible for the engagement).
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FUNDAMENTAL PRINCIPLES OF
THE GROUP
Operational activities
Overview
Henkel was founded in 1876. Therefore, the year under review marks the 148th in our corporate history. At the
end of 2024, Henkel employed around 47,150 people worldwide. We hold globally leading market positions
in our consumer and industrial businesses.
Our purpose describes what unites everyone at Henkel: “Pioneers at heart for the good of generations.” It is
firmly anchored in our DNA and continues our success story of innovation, responsibility and sustainability
as we move forward.
Organization and business units
Henkel AG & Co. KGaA is operationally active, as well as being the parent company of the Henkel Group. As
such it is responsible for defining and pursuing Henkel’s corporate objectives and also for the management,
control and monitoring of Group-wide activities, including risk management and the allocation of resources.
Henkel AG & Co. KGaA performs its tasks within the legal scope afforded to it as part of the Henkel Group,
with the affiliated companies otherwise operating as legally independent entities.
Operational management and control is the responsibility of the Management Board of Henkel Management AG
in its function as sole Personally Liable Partner. The Management Board is supported in this by the central,
corporate functions.
Since 2023, Henkel has been organized in two business units: Adhesive Technologies and Consumer Brands.
As global market leader for adhesives, the Adhesive Technologies business unit offers a broad portfolio of
high-impact solutions in adhesives, sealants and coatings. In the three business areas Mobility & Electronics,
Packaging & Consumer Goods, and Craftsmen, Construction & Professional, we develop customer-centric
solutions for a wide range of industrial applications as well as for consumers and craftsmen. As a result, we
are very well positioned with our innovative product portfolio. We aim to give our industrial customers a
competitive edge while offering consumers a clear added value.
1876
Year of foundation
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In the integrated Consumer Brands business unit, we focus on the global business areas Laundry & Home Care
and Hair. Additionally, with our business area Other Consumer Businesses, we are active in selective body
care markets. We occupy leading positions in numerous markets and categories and offer a strong brand
portfolio featuring consumer-relevant innovations that create added value for our customers and consumers.
We distribute our products through brick-and-mortar stores, hair salons and digital channels.
Details of the individual business areas of both business units can be found on page 122 for Adhesive
Technologies and page 130 for Consumer Brands.
Henkel around the world: Regional Centers
São Paulo, Brazil
Regional Center
Mexico City, Mexico
Regional Center
Stamford,
Connecticut, USA
Regional Center
Rocky Hill,
Connecticut, USA
Regional Center
Dubai, United
Arab Emirates
Regional Center
Shanghai, China
Regional Center
Düsseldorf, Germany
Global Headquarters
Vienna, Austria
Regional Center
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The business activities of our business units are supported by the central, corporate functions of Henkel AG
& Co. KGaA, our Global Supply Chain organization and our Global Business Solutions organization with its
Shared Service Centers, thus enabling optimum utilization of corporate network synergies.
Implementation of the business activities at the country and regional level is the responsibility of the
national affiliated companies whose operations are supported and coordinated by Regional Centers. The
executive bodies of these national affiliates manage their businesses in line with the relevant statutory
regulations, supplemented by their own articles of association, internal procedural rules and the principles
incorporated in our globally applicable management standards, codes and guidelines.
Further details on the organization of our business activities along the value chain can be found in the sections
“Procurement” (pages 152 to 154), “Production” (pages 155 and 156), “Research and development” (pages
157 to 162) and “Marketing and distribution” (pages 163 to 165).
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Strategic framework for purposeful growth
We shape our future on the basis of a long-term strategic framework that builds on our purpose and our values.
With this strategic framework, we place a clear focus on purposeful growth. This means: We aim to create
superior value for customers and consumers to outgrow our markets, to strengthen our leadership in
sustainability, and to help our employees to grow both professionally and personally at Henkel.
Our mid-term financial ambitions
Driving our growth agenda supports us in achieving our financial ambitions, and we are confident that we
will now achieve the mid- to long-term financial ambitions published at the start of 2022 in the medium term.
For the Group, we are aiming to generate organic sales growth of 3 to 4 percent, adjusted return on sales
(adjusted EBIT margin) of around 16 percent and adjusted earnings per preferred share growth in the mid-
to high single-digit percentage range (at constant exchange rates and including acquisitions). At the
same time, Henkel places a continuous focus on free cash flow expansion.
For the Adhesive Technologies business unit, we are aiming for organic sales growth of 3 to 5 percent
and adjusted return on sales (adjusted EBIT margin) in the high-teens percentage range.
For the Consumer Brands business unit, we are aiming for organic sales growth of 3 to 4 percent and
adjusted return on sales (adjusted EBIT margin) in the mid-teens percentage range.
Our strategic framework
The key elements of our strategic framework are a winning portfolio with strong brands and solutions, a
clear competitive edge in the areas of innovation, sustainability and digitalization, and future-ready operating
models – underpinned by a strong foundation of a collaborative culture and empowered people.
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Rigorously shape a winning portfolio
A successful portfolio is the key to sustainably profitable business performance. This is why we are consist-
ently evolving our portfolio of brands and businesses as part of our active portfolio management – not least
in light of the announced and since completed implementation of the portfolio measures in our integrated
business unit Consumer Brands (for more details, see pages 99 to 101). At the same time, M&A activities in
both business units remain an integral part of our strategy, supported by our strong balance sheet.
Accelerate impactful innovations
We want to accelerate impactful innovations and also adopt an enhanced innovation approach, for example by
utilizing digital applications and data to gain faster and better insights into consumer behavior and market
trends. Decision-making across the organization occurs close to the market. In our collaboration with external
partners, we are also increasingly leveraging the potential of open innovation, using agile methods and
continuing to invest in innovation centers. We consistently invest in innovations and brands in core categories
and regions.
WINNING
PORTFOLIO
OPERATING
MODELS
COMPETITIVE EDGE
INNOVATION
SUSTAINABILITY
DIGITALIZATION
COLLABORATIVE CULTURE &
EMPOWERED PEOPLE
PURPOSEFUL GROWTH
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Boost sustainability as a true competitive differentiator
We want to boost sustainability as a true competitive differentiator. Sustainability is essential to create a
competitive edge, enable business growth and generate value for our customers, consumers and all of our
stakeholders.
To drive sustainable development, we have set ourselves ambitious goals as part of our 2030+ Sustainability
Ambition Framework that build on our progress to date and which we are rigorously pursuing. We have
included different ESG dimensions and defined key areas of focus:
Regenerative Planet: We strive to achieve a circular economy, a climate-neutral future and the regeneration
of nature. To this end, we are further developing our business activities to drive solutions in the areas of
climate, circularity and nature.
Thriving Communities: We actively contribute to people being able to lead a better life through our
business and brands. To this end, we focus on equity, education and wellbeing.
Trusted Partner: We are committed to product quality and safety while ensuring business success with
integrity, focusing on performance, transparency and collaboration.
We will build on our particular strengths, such as the innovation capabilities of our business units and the
comprehensive knowledge of our employees, as well as various contact points of our products and customers
and consumers. Assessments in the relevant sustainability ratings provide important and impartial confirmation
and acknowledgment of our achievements and progress.
Please refer to our Sustainability Report 2024 for a detailed discussion of our sustainability strategy and
progress.
Enhance value creation for customers and consumers through digitalization
We take advantage of the opportunities offered by digitalization to increase the value added for our customers
and consumers, interacting directly with our consumers and striving to grow our digital sales. In the process,
we are building a pool of digitalization talent backed by targeted support. Ultimately, we want to strengthen
our digital business focus and increase efficiency. In this respect, our digital unit Henkel dx, which was created
in 2019 to bring together the digital and IT teams at Henkel, is of key importance.
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Continuously optimize operating models
We are striving to continuously optimize our operating models and, in doing so, to steadily improve the
competitiveness of our processes and structures. We want to step up customer and consumer proximity,
establish faster decision-making processes and realize further efficiency gains.
Strengthen our collaborative culture
A strong corporate culture, shared values and a clear understanding of collaboration as a strong team are
essential to continue to successfully drive our growth agenda. Important cornerstones of this are our purpose –
Pioneers at heart for the good of generations – and our Leadership Commitments uniting all employees
worldwide. We believe that cultural transformation is an ongoing process in which we focus on collaboration
and empowerment, foster the upskilling of our employees for future capabilities and enable them to
constantly develop further.
Integration of the Consumer Brands business unit
At the start of 2022, Henkel announced its plans to merge the two former business units Laundry & Home
Care and Beauty Care. The creation of the integrated business unit Consumer Brands – which we continued
to drive in 2024 – represents the most significant transformation of our Company in recent decades.
With the Consumer Brands business unit, which has been operating worldwide under the new structure
since the beginning of 2023, we have created a multi-category platform with a focus on the global categories
Laundry & Home Care and Hair, and which represents more than 10 billion euros in sales. The business unit
brings together all consumer brands across all categories under one roof – including many iconic brands such
as Persil and Schwarzkopf – and also incorporates the Hair Professional business. This step laid the foundation
for further profitable growth of our entire consumer goods business.
Through the merger, we want to raise the profitability of our consumer goods business and thus of the Group
as a whole. Furthermore, we want to create additional positive growth stimulus. To this end, we are focusing
the Consumer Brands portfolio on strategic core brands and businesses with attractive growth and margin
potential. The integration will allow us to realize significant synergies, which in part will be used to facilitate,
for example, targeted investment in strategic priorities such as innovation, sustainability and digitalization, and
to strengthen our attractive and leading brands.
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In detail, the creation of the Consumer Brands business unit is linked to the following strategic objectives:
Strong platform: Focus on attractive growth and margin potential
The integrated Consumer Brands business unit will allow Henkel to better capture the full potential for organic
and inorganic growth. To achieve this, we are focusing the portfolio on attractive growth potential and high
gross margins and are aligning investments to core platforms in relevant markets. We are also focusing on
valorizing our portfolio through targeted innovations, supported by greater investment in advertising and
marketing, in order to further strengthen our brands and offer clear added value to our consumers. At present,
our Consumer Brands portfolio comprises the global categories Laundry & Home Care and Hair, together
with the business area Other Consumer Businesses which is present in selective body care markets.
The combined size of our consumer businesses offers improved opportunities for further reducing complexity
and for even more rigorous implementation of portfolio measures. These include the sale or discontinuation
of brands and businesses that do not meet our expectations – in respect of growth prospects, gross margin or
market appeal, for example. Henkel had announced plans to review businesses and brands representing a
total sales volume of around 1 billion euros. Accordingly, we had fundamentally changed our portfolio of
consumer businesses following the announcement in 2022 with our global exit from the Oral and Skin Care
categories and our exit from selective body care markets and the North American air freshener business.
In 2024, we continued to rigorously pursue our portfolio measures.
As a multi-category platform, there are also additional opportunities for targeted acquisitions – in existing
core categories or in other new consumer goods categories. This will be our approach in optimizing the portfolio
and in further strengthening the growth dynamics in our consumer businesses as we move forward.
Creating advantages of scale: Significant synergies and efficiency gains
The Consumer Brands business unit will enable Henkel to leverage scale, allowing the Company to become
much more efficient. It will also help us to act faster and become more flexible in a highly volatile environment.
We are striving to generate significant savings. Net savings are now expected to total around 525 million euros
on an annualized basis by 2026. These savings are being generated primarily from the optimization of both
our sales and administrative structures and our supply chain (production and logistics).
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Implementation is taking place in two phases. The first phase of the merger of the consumer businesses
predominantly involves sales and administration. We achieved the targeted total net savings of around
275 million euros by the end of 2024, and in doing so successfully completed the first phase of the integration.
The second phase of integration is focusing on optimizing the supply chain, i.e. the production and logistics
network. Here, Henkel plans to improve the efficiency and regional footprint of its own production and to
optimize its network of third-party contract manufacturers and its procurement costs. In addition, we are driving
commercial integration with optimized logistics processes in line with the 1-1-1 principle – one order, one
shipment, one invoice. We were resolute in implementing appropriate measures in this area, too, in 2024. Of
the announced annual net savings target of around 250 million euros by 2026, around 150 million euros had
already been realized by the end of 2024.
As a result, we had already achieved around 425 million euros of the announced target of 525 million euros
in annual net savings by 2026 overall across both phases of the integration.
The efficiency and cost advantages arising from these two phases are enabling us to make higher and
more targeted investments in innovations and in more sustainability and digitalization, and in doing so
further extend our competitive edge. Moreover, they facilitate focused and strong marketing support to
further strengthen our attractive and leading brands.
Integrated approach: Leaner structures and faster decision-making processes
The new business unit places a particular focus on customer and channel centricity – with an integrated
approach for trade partners across all consumer categories. Under one leadership, the team focuses on
advancing the entire consumer business, with leaner structures and faster decision-making throughout the
entire integrated organization.
A detailed discussion of the material progress relating to the ongoing integration of the Consumer Brands
business unit in the fiscal year just ended can be found on pages 130 to 132.
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Consistent implementation of our growth agenda in fiscal 2024
In 2024, we again consistently implemented our growth agenda and made further progress in all areas –
despite the manifold macroeconomic and geopolitical challenges.
We continued to resolutely evolve our portfolio in both business units in 2024.
Since announcing the merger of our consumer businesses, we have divested or discontinued brands and
activities representing total sales of around 700 million euros in the Consumer Brands business unit. As a
result, we successfully completed the announced discontinuation of the relevant business activities by the
end of the year, as planned. The agreement signed on February 3, 2025 to sell the private label business in
North America marks the conclusion of the strategic portfolio optimization process as part of the integration
of the Consumer Brands business unit. At the same time, we strengthened our portfolio with a number of
acquisitions. For example, in 2024, Henkel acquired the Vidal Sassoon brand and the associated consumer hair
care business in China from Procter & Gamble. The acquisition strengthens our Consumer Brands business
in China and expands our hair care portfolio in an attractive market.
In addition, our Adhesive Technologies business unit has underscored its more pronounced focus on growth
through M&A and has added another acquisition to its maintenance, repair and overhaul (MRO) portfolio.
Henkel’s acquisition of Seal for Life enables the Company to strengthen its global position and expand its
offering in sustainability-driven, future-oriented, fast-growing and profitable markets. Seal for Life is a
specialized provider of protective coatings and sealing solutions for a broad variety of infrastructure markets
such as renewable energies, oil, gas and water.
We also made advancements in the area of innovations. Our innovation and customer centers play a key
role in this respect. At these centers, we offer state-of-the-art laboratory facilities and a platform that fosters
open collaboration and knowledge sharing in order to cater to the local needs of our customers and
consumers. Working in partnerships founded on trust, we develop innovations and solutions across the entire
value chain.
The Adhesive Technologies business unit, for instance, has three fully operational innovation centers in Europe,
North America and the IMEA region, with another innovation center set to officially open in Shanghai,
China, in 2025. The Consumer Brands business unit likewise enhanced its innovation strength. For example,
an innovation center has been opened in Shanghai, China, that supports research in hair care and coloring,
laundry detergents and household cleaners and draws on findings from markets across Asia.
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We have developed and launched numerous innovative products and solutions across both business units that
address important trends and offer relevant added value to customers and consumers. Material innovations
are discussed on pages 124 (Adhesive Technologies) and 133 (Consumer Brands).
In 2024, we continued to integrate sustainability within our business operations. As part of our 2030+
Sustainability Ambition Framework, we worked on a more sustainable product portfolio, for example by
increasing the use of renewable and recycled raw materials. We systematically track our progress in this
field, and are continually evolving the methodology used to assess the sustainability of our product portfolio
in both business units.
We continue to strengthen our commitment to climate protection and are driving progress in this area. To
that end, we have developed a net-zero roadmap, which includes further targets for reducing emissions
across the entire value chain. We were again able to further improve the carbon footprint of our production
sites in 2024, thanks in particular to the continued expansion of the use of renewable energies.
Our work likewise focused on the circular economy. We continued to increase the proportion of recycled
materials in our plastic packaging and maintained a consistent focus on the recyclability of our packaging.
Close collaboration along the value chain is a key success factor for sustainability innovations. For example,
in the Adhesive Technologies business unit, we once again organized events to bring together customers,
suppliers, partners and sustainability experts in various regions, for example in the USA and China. Aiming to
help consumers understand our services better and provide targeted communication that will enable them to
use our products in a responsible manner, in the Consumer Brands business unit we launched the campaign
“It starts with us” in additional countries in cooperation with our retail customers.
For further information on our strategies and measures and relevant key figures, please refer to our Sustainability
Report 2024.
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In 2024, we also made important progress in digitalization. We have continued to drive the strategic alignment
of our digital unit Henkel dx by steadily optimizing in-house structures, strengthening the development of
digital expertise and promoting a culture of innovation. Aspects such as the acceleration of digital innovations,
our platform strategy and the close collaboration of all business units and functions enabled us to further
improve our efficiency in IT last year and to create new business opportunities for Henkel.
The use of artificial intelligence (AI) is playing an increasingly important role in this field. For example, in the
Consumer Brands business unit, we use a digital assistant for product innovation and development to simplify
and accelerate the process from the idea stage through to production. The digital assistant is based on the
latest generative AI technology and helps our employees to evaluate information about consumer needs,
market trends and product feedback in a structured way.
We use AI in Adhesive Technologies, for example, in our global research labs to predict the chemical and
physical properties of new formulas – with the aim of substantially shortening the time needed for product
development while at the same time enhancing the performance of the new solutions.
To establish future-ready operating models, our focus in 2024 was once again on further integrating the
Consumer Brands business unit. Details of the progress in this respect can be found on pages 130 to 132.
Henkel also specifically pursued consolidation of the optimized organizational structure introduced in 2023
in the Adhesive Technologies business unit. As a result, the business unit with its three business areas Mobility &
Electronics, Packaging & Consumer Goods, and Craftsmen, Construction & Professional can make more
efficient use of scale and leverage competencies while at the same time ensuring close customer and market
proximity.
We have also further strengthened our corporate culture, building on our purpose – Pioneers at heart for
the good of generations – and our Leadership Commitments. To support our employees in fostering our
cultural change, we continued the Accelerate Cultural Transformation (ACT) initiative – initially launched in
2023 – in the year under review. The aim is to encourage engagement across teams and to define specific
measures. The focus areas in 2024 were trust, collaboration and feedback. A further area of focus was the
implementation of our integrated Smart Work concept that provides the global framework for topics such
as mobile working, digital workplaces or employee health, together with further global diversity, equity
and inclusion (DEI) initiatives.
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Management system and performance indicators
Our management system and key performance indicators are derived from our ambition to generate
purposeful growth. The key performance indicators are organic sales growth, adjusted return on sales, and
growth in adjusted earnings per preferred share at constant exchange rates.
These performance indicators are represented in both the annual and medium-term plans of Henkel. A
regular comparison of these plans with current developments and the regular reporting of expected figures
enable focused management of the Company based on the described performance indicators. Adjusting for
one-time expenses and income – such as effects of acquisitions and divestments, and impairment losses on
non-current assets –, for restructuring expenses and for the effects of fluctuating exchange rates, enables
better comparability of the performance indicators over time, thus enhancing transparency.
The performance indicators of relevance for management at Henkel – for which we have also defined
mid-term ambitions – are discussed below.
Organic sales growth
Organic sales growth is defined as the increase in sales after adjustment for the effects of acquisitions,
divestments and foreign exchange. As such, it serves to quantify growth from within the Company. In
addition, organic sales growth is one of the metrics used to determine the annual variable remuneration
(Short Term Incentive) payable to the Management Board.
Adjusted return on sales
Adjusted return on sales describes the ratio of adjusted operating profit (adjusted EBIT) to sales. As such,
adjusted return on sales is indicative of business profitability.
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Growth in adjusted earnings per preferred share at constant exchange rates
Earnings per share compares the net income to the weighted average number of shares in free float.
Calculation is based on IAS 33 (Earnings per Share). Calculation of this earnings metric as a performance
indicator is based on adjusted earnings per share compared to the prior-year figure. In addition, growth
in adjusted earnings per preferred share at constant exchange rates is one of the metrics used to determine
the annual variable remuneration (Short Term Incentive) payable to the Management Board.
Moreover, we routinely disclose other key financials and non-financial metrics.
Other key financials
Other key financials include adjusted earnings per preferred share, net working capital as a percentage of
sales, adjusted return on capital employed (adjusted ROCE), Economic Value Added (EVA®) and free cash
flow. These key financials are explained in the glossary.
Non-financial metrics
In line with the goal of sustainable corporate development, non-financial indicators are also used as part
of our sustainability strategy and reporting – for example, the reduction of the carbon footprint of our
production sites, the share of recycled plastic used in consumer goods packaging or the proportion of
women in management positions. Furthermore, ESG (Environmental, Social, Governance) targets count
among the metrics to determine the long-term variable share-based remuneration (Long Term Incentive)
payable to the Management Board.
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Cost of capital
The cost of capital is calculated as a weighted average of the cost of equity and debt capital (WACC).
We regularly review our cost of capital in order to reflect changing market conditions. Moreover, we apply
different WACC rates depending on the business unit involved. These are based on business-unit-specific
beta factors determined from a peer group benchmark.
The following table indicates the WACC rates before and after tax for the Henkel Group and each business unit.
WACC by business unit
WACC before tax
WACC after tax
in percent
2024
2025
2024
2025
Adhesive Technologies
11.50
11.50
8.50
8.50
Consumer Brands
7.50
8.00
5.75
5.75
Henkel Group
8.25
8.75
6.25
6.50
Combined separate non-financial report
With regard to the reporting pursuant to Sections 289b and 315b HGB for fiscal 2024, please refer to our
Sustainability Report 2024. This also constitutes the combined separate non-financial report for the Henkel
Group and Henkel AG & Co. KGaA for fiscal 2024 within the meaning of Sections 315b, 315c in conjunction
with 289b to 289e HGB, and similarly contains the information required by the EU Taxonomy Regulation. The
Sustainability Report is made publicly available through publication on our website: www.henkel.com/
sustainabilityreport
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ECONOMIC REPORT
Macroeconomic development
The general economic development described in this section is based on data published by S&P Global
Market Intelligence.
Overview:
Global economy with continued moderate growth
In 2024, the global economy again recorded moderate growth in the face of a persistent overall inflationary
environment with higher interest rate levels. Economic growth continued to be impacted by geopolitical
tensions. The global economy benefited from further stabilization in global supply chains and on the logistics
and materials markets, as well as from a slight overall easing in inflationary pressure compared to the
previous year.
As was also the case in the previous year, the global economy recorded gross domestic product growth of
around 3 percent in 2024.
For the year under review, economic growth in Europe was around 1 percent, with North America recording
approximately 2.5 percent. Both the IMEA and Asia-Pacific regions posted economic growth of around
4 percent, while Latin America recorded economic growth of approximately 2 percent.
Unemployment:
Global unemployment rate at constant levels
The global unemployment rate was on a par with the previous year at approximately 7 percent. Unemployment
remained at approximately 6 percent in Europe and was unchanged year on year in North America at
approximately 4 percent. The unemployment rate was around 11 percent in the IMEA region, approximately
6 percent in Latin America, and approximately 4 percent in the Asia-Pacific region.
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Inflation:
Slight decline in global inflation rates
Global inflation in 2024 was approximately 4.5 percent and thus lower year on year (2023: approximately
5.5 percent), although still at a high level. Prices in Europe and North America rose by approximately 3 percent
and were therefore below the prior year’s rates. At approximately 14 percent, inflation in the IMEA region
was also below the prior-year level. In Latin America, prices increased year on year by approximately 21 percent.
Inflation in the Asia-Pacific region was approximately 1.5 percent.
Direct materials:
Prices remain flat versus prior year
Year on year, prices for direct materials (raw materials, packaging, and purchased goods and services)
remained flat on average in 2024. After some substantial increases in prior years, raw material prices remained
high overall. The prices for direct materials were also driven by rising labor costs and by in part still elevated
logistics and energy costs.
Currencies:
Mainly negative trend in currencies
The US dollar remained stable versus the euro on average over the year. At year-end, the exchange rate of
US dollar to euro was 1.04. Most of the currencies of relevance for Henkel in the emerging markets depreciated
on average over the year – with a few exceptions. The Polish zloty appreciated, whereas the Turkish lira
depreciated by a double-digit percentage. Changes in the average exchange rates of the currencies of relevance
to Henkel in fiscal 2024 are indicated in the following table:
Average rates of exchange versus the euro
2023
2024 Appreciation (+)/
Depreciation (–)
Chinese yuan
7.66
7.79
-1.6%
Mexican peso
19.18
19.82
-3.2%
Polish zloty
4.54
4.31
5.3%
Turkish lira
25.76
35.56
-27.5%
US dollar
1.08
1.08
0.0%
Source: ECB daily foreign exchange reference rates.
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Development by sector
Consumption and retail:
Modest increase in global consumption
The increase in global private consumption spending in 2024, at approximately 3 percent, was similar to the
prior year.
Private spending increased in Europe by around 2 percent, in North America by around 3 percent and in
Latin America by approximately 3 percent. The IMEA region recorded an increase in private consumption of
approximately 5 percent, while private consumption in the Asia-Pacific region increased by approximately
3 percent.
Industrial production index:
Persistently muted development
At approximately 1 percent globally, the increase in the industrial production index (IPX) was on a par with
the previous year.
Industrial production contracted slightly by approximately -1 percent in Europe in 2024 and stagnated in
North America. The IMEA region recorded growth of approximately 2 percent and Latin America of approxi-
mately 1 percent. Industrial production in the Asia-Pacific region increased by approximately 3.5 percent.
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Review of overall business performance
Henkel delivered a good performance overall in a challenging fiscal 2024 that was characterized by a persistent
inflationary environment with substantially higher labor costs and by the impacts of geopolitical crises. In
the Industrial business, the growth in the Mobility & Electronics business area in particular had a positive
impact on performance. The Consumer business benefited in particular from a very strong performance in
the Hair business area.
Results of operations of the Group
Sales
Sales in fiscal 2024 totaled 21,586 million euros, up 0.3 percent year on year in nominal terms. Foreign exchange
effects had a negative impact of -1.8 percent on sales.3 Adjusted for these foreign exchange effects, sales
growth was 2.1 percent. Acquisitions/divestments had a slightly negative impact of -0.4 percent on sales, which
was mainly due to the disposal of our business activities in Russia in 2023. Organic sales growth, i.e. adjusted
for foreign exchange and acquisitions/divestments, came in at 2.6 percent, driven by good price development
and positive volume development.
Sales development
in percent
2023
2024
Change versus previous year
-3.9
0.3
Foreign exchange
-4.3
-1.8
Adjusted for foreign exchange
0.4
2.1
Acquisitions/divestments
-3.9
-0.4
Organic
4.2
2.6
Of which price
9.6
2.0
Of which volume
-5.4
0.6
1 Adjusted for one-time expenses and income, and for restructuring expenses.
2 Proposal to shareholders for the Annual General Meeting on April 28, 2025.
3 Including the impacts of the mandatory application of IAS 29 Financial Reporting in Hyperinflationary Economies for Türkiye.
This note also applies to the remainder of the management report.
2.6%
Organic sales growth
14.3%
Adjusted1 EBIT margin
€5.36
Adjusted1 EPS
+25.1%
Development of adjusted1
EPS at constant exchange
rates
€2.04
Dividend per preferred
share2
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Sales
in million euros
The Adhesive Technologies business unit generated good organic sales growth of 2.4 percent, driven in
particular by the Mobility & Electronics business area. The Consumer Brands business unit posted strong
organic sales growth of 3.0 percent, driven particularly by the Hair business area.
Sales performance by business unit
Sales
in million euros
2023
2024
+/-
Organic
Of which
price
Of which
volume
Henkel Group
21,514
21,586
0.3%
2.6%
2.0%
0.6%
Adhesive Technologies
10,790
10,970
1.7%
2.4%
0.0%
2.4%
Consumer Brands
10,565
10,467
-0.9%
3.0%
4.2%
-1.2%
From a regional perspective, Europe achieved positive organic sales growth of 0.9 percent. In the IMEA region,
Henkel generated double-digit organic sales growth of 18.7 percent. North America, on the other hand,
recorded a slightly negative sales development of -1.1 percent. We achieved organic sales growth of 1.6 percent
in the Latin America region. The Asia-Pacific region generated very strong organic sales growth of 4.9 percent.
16000
18000
20000
22000
24000
19,250
20,066
22,397
21,514
21,586
16,000
18,000
20,000
24,000
22,000
2020
2021
2022
2023
2024
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Sales performance by region
in million euros
Europe
IMEA
North
America
Latin
America
Asia-
Pacific
Corporate
Henkel
Group
Sales 2024¹
8,048
2,289
6,029
1,636
3,434
149
21,586
Sales 2023¹
8,270
2,071
6,073
1,681
3,260
159
21,514
Change versus previous year
-2.7%
10.5%
-0.7%
-2.7%
5.4%
–
0.3%
Organic
0.9%
18.7%
-1.1%
1.6%
4.9%
–
2.6%
Proportion of Group sales 2024
37%
11%
28%
8%
16%
1%
100%
Proportion of Group sales 2023
38%
10%
28%
8%
15%
1%
100%
1 By location of company.
Operating profit
Operating profit in fiscal 2024 came in at 2,831 million euros after 2,011 million euros in the previous year,
which corresponds to a significant increase of 40.8 percent. The operating expense and income items leading to
the operating profit result were impacted by one-time expenses and income, and by restructuring expenses.
Adjusted operating profit (adjusted EBIT)
in million euros
2023
2024
+/-
EBIT (as reported)
2,011
2,831
40.8%
One-time income
-4
-3
–
One-time expenses
281
60
–
Restructuring expenses
267
202
–
Adjusted EBIT
2,556
3,089
20.9%
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One-time expenses in fiscal 2024 totaled 60 million euros, including 26 million euros relating to the merger
of the former Beauty Care and Laundry & Home Care business units into the combined Consumer Brands
business unit. These result primarily from internal costs for the IT integration of the business units. The other
expenses mainly relate to incidental costs of 18 million euros in connection with acquisitions and divestments.
One-time income totaled 3 million euros in the year under review (previous year: 4 million euros).
In order to adapt our structures to our markets and customers, we spent 202 million euros on restructuring
(previous year: 267 million euros). The restructuring expenses substantially comprise payments related to the
termination of employment relationships, impairment losses on non-current assets and inventories, and
expenses connected with the termination of business relationships with business partners. In fiscal 2024, they
also included expenses arising from the reclassification of currency translation reserves in connection with
the discontinuation of our business activities in Venezuela. Please refer to pages 332 and 333 for more details
of our restructuring expenses and an explanation of the one-time expenses and income.
Adjusted operating profit (adjusted EBIT) increased significantly by 20.9 percent to 3,089 million euros
(previous year: 2,556 million euros).
Adjusted return on sales (adjusted EBIT margin) in fiscal 2024 was also significantly higher year on year at
14.3 percent (2023: 11.9 percent).
While prices for direct materials (raw materials, packaging, and purchased goods and services) and logistics
remained high overall, the significant increase in adjusted return on sales was driven by ongoing measures to
reduce costs and enhance purchasing, production and supply chain efficiency in both business units. Adhesive
Technologies was also positively impacted by economies of scale resulting from volume growth and a decline
in material prices, in particular in the first half of the year. In the Consumer Brands business unit, the increase
was mainly due to strategic initiatives, such as the continued realization of savings, and the optimization and
valorization of the portfolio.
As a consequence, adjusted return on sales increased significantly for both business units, reaching 16.6 percent
in the Adhesive Technologies business unit (2023: 14.7 percent) and 13.6 percent in the Consumer Brands
business unit (2023: 10.6 percent).
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Expense items
The following explanations relate to our operating expenses adjusted for one-time expenses and income, and
for restructuring expenses. The reconciliation statement and the allocation of the restructuring charges
between the various expense items of the consolidated statement of income can be found on pages 332
and 333.
Cost of sales was -8.6 percent down year on year at 10,664 million euros. While the prices for direct materials
remained flat overall, the measures taken to reduce costs and enhance purchasing, production and supply
chain efficiency, the portfolio measures taken in the Consumer Brands business unit, and the disposal of our
business activities in Russia in April 2023 had a particular impact. As a result, gross profit increased by
11.0 percent to 10,922 million euros. Adjusted gross margin was significantly up year on year at 50.6 percent
(2023: 45.7 percent).
Reconciliation from sales to adjusted operating profit
in million euros
2023
%
2024
%
+/-
Sales
21,514
100.0
21,586
100.0
0.3%
Cost of sales
-11,672
-54.3
-10,664
-49.4
-8.6%
Gross profit
9,842
45.7
10,922
50.6
11.0%
Marketing, selling and distribution expenses
-5,661
-26.3
-6,071
-28.1
7.3%
Research and development expenses
-580
-2.7
-631
-2.9
8.8%
Administrative expenses
-1,056
-4.9
-1,132
-5.2
7.2%
Other operating income/expenses
11
0.1
2
0.0
-78.3%
Adjusted operating profit
(adjusted EBIT)
2,556
11.9
3,089
14.3
20.9%
Marketing, selling and distribution expenses, at 6,071 million euros, were up year on year (2023: 5,661 mil-
lion euros). The ratio to sales increased to 28.1 percent, due largely to an increase in marketing investments
in the Consumer Brands business unit. We spent a total of 631 million euros for research and development.
The ratio to sales, at 2.9 percent, increased slightly year on year. Administrative expenses totaled 1,132 mil-
lion euros in fiscal 2024 following 1,056 million euros in the previous year. At 5.2 percent, administrative
expenses as a percentage of sales were also slightly higher year on year.
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Other operating income and expenses
At 2 million euros, the balance of adjusted other operating income and expenses decreased year on year
(2023: 11 million euros).
Financial result
At -62 million euros, the financial result in 2024 – adjusted for expenses relating to the application of IAS 29
Financial Reporting in Hyperinflationary Economies for Türkiye – improved year on year (2023: -85 million euros).
This change was mainly due to lower US dollar financing costs on account of lower debt levels.
Income before tax, net income and earnings per share (EPS)
Income before tax increased significantly from 1,888 million euros in the previous year to 2,723 million euros.
Taxes on income amounted to 691 million euros (2023: 549 million euros). The tax rate of 25.4 percent was
lower year on year (2023: 29.1 percent). At 25.1 percent, the adjusted tax rate was slightly down year on year.
Net income increased significantly by 51.7 percent to 2,032 million euros (2023: 1,340 million euros). After
allowing for 25 million euros attributable to non-controlling interests, net income attributable to shareholders
of Henkel AG & Co. KGaA amounted to 2,007 million euros, 52.3 percent above the prior-year figure (2023:
1,318 million euros). Adjusted net income after deducting non-controlling interests was 2,243 million euros
compared to 1,819 million euros in fiscal 2023, representing an increase of 23.3 percent year on year. A
condensed version of the annual financial statements of the parent company of the Henkel Group – Henkel AG
& Co. KGaA – can be found on pages 166 to 174.
At 4.80 euros, earnings per preferred share were significantly above the prior-year figure of 3.15 euros.
Earnings per ordinary share increased to 4.78 euros (2023: 3.13 euros).
Adjusted earnings per preferred share also increased significantly by 23.2 percent to 5.36 euros (previous
year: 4.35 euros). At constant exchange rates, adjusted earnings per preferred share increased by 25.1 percent.
In calculating adjusted earnings per preferred share, figures are adjusted for one-time expenses and income,
and for restructuring expenses.
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Dividend
According to our dividend policy, dividend payouts of Henkel AG & Co. KGaA shall, depending on the
Company’s asset and profit positions and its financial requirements, amount to 30 to 40 percent of net
income after non-controlling interests and adjusted for exceptional items.
At the Annual General Meeting, we will propose a dividend of 2.04 euros per share for the past fiscal year,
representing an increase of 10.3 percent year on year (2023: 1.85 euros). For the ordinary share, a dividend of
2.02 euros (2023: 1.83 euros) will be proposed, corresponding to an increase of 10.4 percent. The payout
ratio will consequently be 37.9 percent,1 which is within our target bandwidth of 30 to 40 percent. The in-
crease in dividend is possible thanks to the very good financial performance in the past fiscal year and the
strong financial base of the Henkel Group.
Dividend per preferred share
in euros
1 Proposal to shareholders for the Annual General Meeting on April 28, 2025.
1 Calculation based on the number of shares qualifying for dividends as of December 31, 2024.
0,0
0,5
1,0
1,5
2,0
0.00
0.50
1.00
1.50
2.00
1.85
1.85
1.85
1.85
2.04ð
2020
2021
2022
2023
2024
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Net working capital
Net working capital as a percentage of sales amounted to 3.0 percent, which was slightly up year on year
(2023: 2.6 percent).
Free cash flow and net financial position
Free cash flow totaled 2,362 million euros, representing a decrease compared to the prior-year figure
(2023: 2,603 million euros), the latter having been positively impacted by a normalization of the net working
capital. At -93 million euros, the net financial position was slightly below the prior-year level, due in particular
to payments made for acquisitions (December 31, 2023: 12 million euros).
Adjusted return on capital employed (ROCE)
Return on capital employed adjusted for one-time income and expenses and for restructuring expenses
(adjusted ROCE) increased significantly year on year to 14.0 percent (2023: 12.0 percent), mainly as a result
of higher adjusted operating profit.
Economic Value Added (EVA®)
Economic Value Added (EVA®) also increased significantly to 1,015 million euros (2023: 141 million euros),
mainly as a result of higher operating profit.
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Comparison between actual business performance and guidance
In light of business performance and evolving assumptions regarding further business development, the
Management Board of Henkel AG & Co. KGaA updated its guidance for fiscal 2024 over the course of the year.
Performance versus guidance 2024
Original guidance
for 2024
Guidance for 2024
as updated on May 3
Guidance for 2024
as updated on July 17
Results
2024
Organic sales growth
Henkel Group:
Adhesive Technologies:
Consumer Brands:
2.0 to 4.0 percent
2.0 to 4.0 percent
2.0 to 4.0 percent
2.5 to 4.5 percent
2.0 to 4.0 percent
3.0 to 5.0 percent
2.5 to 4.5 percent
2.0 to 4.0 percent
3.0 to 5.0 percent
2.6 percent
2.4 percent
3.0 percent
Adjusted1 return on sales
(adjusted EBIT margin)
Henkel Group:
Adhesive Technologies:
Consumer Brands:
12.0 to 13.5 percent
15.0 to 16.5 percent
11.0 to 12.5 percent
13.0 to 14.0 percent
16.0 to 17.0 percent
12.0 to 13.0 percent
13.5 to 14.5 percent
16.0 to 17.0 percent
13.0 to 14.0 percent
14.3 percent
16.6 percent
13.6 percent
Development of adjusted1
earnings per preferred share at
constant exchange rates
Increase in the range of
5.0 to 20.0 percent
Increase in the range of
15.0 to 25.0 percent
Increase in the range of
20.0 to 30.0 percent
+25.1 percent
1 Adjusted for one-time expenses and income, and for restructuring expenses.
The results for fiscal 2024 are compared below against the guidance that was last revised on July 17, 2024.
At 2.6 percent, organic sales growth of the Henkel Group was within our forecast range of 2.5 to 4.5 percent.
At 2.4 percent, organic sales growth in the Adhesive Technologies business unit was also within the forecast
range of 2.0 to 4.0 percent. At 3.0 percent, organic sales growth in the Consumer Brands business unit was at
the lower end of the forecast range of 3.0 to 5.0 percent.
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Adjusted return on sales (adjusted EBIT margin) for the Henkel Group was 14.3 percent, which was in the upper
half of the forecast range of between 13.5 and 14.5 percent. Both the Adhesive Technologies business unit
with adjusted return on sales of 16.6 percent and the Consumer Brands business unit with adjusted return on
sales of 13.6 percent were in the upper half of their forecast ranges of 16.0 to 17.0 percent and 13.0 to
14.0 percent respectively.
Adjusted earnings per preferred share at constant exchange rates increased by 25.1 percent, which was
virtually at the midpoint of the expected bandwidth of +20.0 to +30.0 percent.
Beyond these key indicators, we had forecasted restructuring expenses in 2024 in the range of 250 to
300 million euros. At 202 million euros, this figure was lower than expected. Cash outflows from investments
in property, plant and equipment and intangible assets were predicted to be 650 to 750 million euros. At
615 million euros, this figure was somewhat below expectations.
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ADHESIVE
TECHNOLOGIES
Our Adhesive Technologies business unit leads the global market
with technologies for adhesives, sealants and coatings – for industrial
applications as well as for consumers and craftsmen. As experts for
industrial applications in more than 800 industries, we work closely with
our customers and partners. Our strong technology portfolio results
in customer-centric solutions in our Mobility & Electronics, Packaging
& Consumer Goods, and Craftsmen, Construction & Professional
business areas.
Sales
€10,970m
Organic sales growth
2.4%
Adjusted1 operating profit
(EBIT)
€1,817m
Adjusted 1 return on sales
(EBIT margin)
16.6%
Our top 3 brands
1 Adjusted for one-time expenses and income, and for restructuring expenses.
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Overview of business activities and key developments
The Adhesive Technologies business unit offers a broad and globally leading portfolio of high-impact solutions
in adhesives, sealants and coatings across the three business areas Mobility & Electronics, Packaging & Consumer
Goods, and Craftsmen, Construction & Professional.
In the Mobility & Electronics business area, we offer our international customers customer-centric solutions
and specialized technical services in the automotive and electronics industries as well as for industrial key
accounts. In doing so, we create added value for our customers at the interface of technology, semiconductors,
automobiles and industrial goods. With our technology portfolio and market expertise, we deliver responses
to global trends such as electrification, connectivity and autonomous driving. We also enable our customers
in achieving their sustainability goals by ensuring that our solutions require fewer fossil raw materials during
further processing.
In the Packaging & Consumer Goods business area, we provide innovative solutions for manufacturers of
consumer goods and branded products around the globe. Building on strong, long-lasting and trusting
business relationships, our high-impact solutions add value to branded and customer products. With our
technology portfolio and market expertise, we address global consumer trends such as sustainability and
promotion of a circular economy, while striving to achieve the maximum possible levels of food safety.
In the Craftsmen, Construction & Professional business area, we offer high-impact solutions for private
consumers and craftsmen, the construction sector, and for manufacturing and professional maintenance
in more than 800 industry segments. We develop innovations for transformative products and customer
solutions on strong global brand platforms. In doing so, we shape global trends, such as sustainability and
digitalization – from sustainable construction and DIY to predictive maintenance and smart production
processes.
In 2024, the Adhesive Technologies business unit continued to develop its portfolio with the acquisition of
Seal for Life Industries. Seal for Life is a specialized provider of protective coatings and sealing solutions in
a broad variety of infrastructure markets such as renewable energy, oil, gas, and water. The company
operates worldwide and generated sales of around 230 million euros in 2024.
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Henkel has thus consistently expanded its range of maintenance, repair and overhaul (MRO) solutions in
recent years, after acquiring the specialized supplier Critica Infrastructure in fiscal 2023. These transactions
represent an important step toward significantly strengthening our existing MRO portfolio with the addition
of innovative solutions in adjacent applications in a dynamically growing market. Our aim is to create a
new platform for adding further adjacent businesses, stimulating growth and strengthening our position as
global leader in adhesive technologies.
At the same time, we have optimized our portfolio and divested our global metal packaging coatings business.1
We also drove forward relevant innovations under our largest brands in the year under review. In 2024, we
realized more than 75 percent of all sales with our five technology-based brand clusters for industrial
customers and our four biggest brands for consumers. The proportion of Adhesive Technologies sales from
products successfully launched onto the market in the last five years was around 25 percent. Here, the
business unit’s innovation centers played a key role. For further details of our global network of innovation
centers, please refer to the section “Research and Development.”
Significant innovations in the Adhesive Technologies business unit in fiscal 2024 include innovative structural
foam solutions for lighter, safer and more sustainable vehicles, new adhesive solutions for more sustainable
sports footwear production, and low CO2 cementitious adhesives for the construction industry.
1 This divestment had no material impact on the net assets, financial position or results of operations of the Henkel Group.
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SELECTED INNOVATIONS IN 2024
Innovative structural foam
solutions for lighter, safer and
more sustainable vehicles
With our structural foam solutions,
we make an important contribution
to the future of mobility, regardless
of the power train. Our solutions
reduce vehicle body weight com-
pared to conventional materials
while simultaneously improving
driver safety.
New adhesive solutions for
more sustainable sports
footwear production
Our innovative adhesive solution
CoolX™ significantly reduces the
required drying temperature in the
sports footwear production pro-
cess. This enables our customers to
save energy in production, cutting
both CO2 emissions and costs.
Lower CO2 cementitious
adhesives for the construction
industry
To reduce CO2 emissions of con-
struction materials, we have devel-
oped new, innovative formulas
for our cementitious adhesives. By
replacing a significant share of
the emission-intensive cement in
our portfolio, we offer our customers
more sustainable solutions and
support the decarbonization of the
construction industry.
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Market environment
The economic environment in which the Adhesive Technologies business unit operates was characterized in
particular by modest development overall in industrial demand and by persistent inflationary pressure. Year
on year, the global industrial production index (IPX) recorded a slight increase of approximately 1 percent,
a less dynamic performance compared to expectations at the start of the year. Automotive production de-
clined by around -1 percent year on year and was thus also below of what was expected at the beginning
of the year.
In these volatile economic conditions, the Adhesive Technologies business unit delivered a good perfor-
mance in 2024 overall.
Sales performance
Sales in the Adhesive Technologies business unit totaled 10,970 million euros in the year under review,
and thus increased by 1.7 percent year on year in nominal terms. While foreign exchange rate effects had
a negative impact of -1.8 percent, acquisitions/divestments increased sales by 1.1 percent.
Organically (i.e. adjusted for foreign exchange and acquisitions/divestments), sales increased by 2.4 percent.
This sales growth was particularly driven by a strong volume development in the second half of the year
compared to the prior year, mainly due to increased demand in some of our key end markets. Prices remained
flat compared to the previous year.
Sales development
in percent
2023
2024
Change versus previous year
-4.0
1.7
Foreign exchange
-4.3
-1.8
Adjusted for foreign exchange
0.3
3.5
Acquisitions/divestments
-2.9
1.1
Organic
3.2
2.4
Of which price
7.0
0.0
Of which volume
-3.8
2.4
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Organic sales development by business area
All three business areas contributed to the organic sales growth in fiscal 2024.
Sales performance by business area
Sales
in million euros
2023
2024
+/-
Organic
Adhesive Technologies
10,790
10,970
1.7%
2.4%
Mobility & Electronics
3,848
3,895
1.2%
3.7%
Packaging & Consumer Goods
3,413
3,337
-2.2%
0.7%
Craftsmen, Construction & Professional
3,529
3,738
5.9%
2.6%
The Mobility & Electronics business area generated strong organic sales growth of 3.7 percent, driven mainly
by double-digit sales growth in the Electronics business – particularly due to the strong performance in
China – and by very strong sales growth in the Industrial business. The Automotive business reported positive
sales growth despite a decline in production in the automotive industry. The strength of our balanced
portfolio – both in terms of end customers and regional presence – and our innovative solutions for different
drive systems had a particularly positive impact on performance.
The Packaging & Consumer Goods business area recorded positive organic sales growth of 0.7 percent,
with both the Packaging and the Consumer Goods businesses generating positive growth. In both businesses,
this growth was driven by an increase in demand.
The Craftsmen, Construction & Professional business area achieved good organic sales growth of 2.6 percent
overall, with the General Manufacturing & Maintenance, the Consumers & Craftsmen and the Construction
businesses all generating good growth.
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Sales by business area 2024
Organic sales development by region
From a regional perspective, the Adhesive Technologies business unit recorded a slightly negative organic sales
performance in Europe. The Craftsmen, Construction & Professional business area was only partially able to
offset the negative development in the Packaging & Consumer Goods business area. The North America
region also posted a slightly negative organic sales development. The negative development in the Packaging &
Consumer Goods business area was not entirely offset by strong growth in the Craftsmen, Construction &
Professional business area. In the IMEA region, the business unit achieved double-digit organic sales growth,
to which all business areas contributed. The Latin America region posted positive organic sales growth,
primarily driven by very strong figures in the Mobility & Electronics business area. The Asia-Pacific region
generated very strong organic sales growth, mainly driven by the Mobility & Electronics and Packaging &
Consumer Goods business areas. Here, the business in China had a particularly positive impact.
Mobility & Electronics
Packaging &
Consumer Goods
Craftsmen, Construction &
Professional
36%
30%
34%
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Operating profit
Adjusted operating profit recorded a double-digit percentage increase year on year at 1,817 million euros.
Adjusted return on sales increased year on year by 190 basis points to 16.6 percent. The gross margin also
significantly increased, partially driven by positive economies of scale resulting from strong volume growth,
measures to reduce costs and enhance efficiency, and – particularly in the first half of the year – declining
prices for direct materials.
At 12.1 percent, net working capital as a percentage of sales was higher compared to prior year. Adjusted
return on capital employed (adjusted ROCE) increased to 17.4 percent, mainly as a result of the higher
adjusted operating profit. Economic Value Added (EVA®) increased to 515 million euros, primarily due to
higher operating profit compared to the prior year.
Key financials
in million euros
2023
2024
+/-
Sales
10,790
10,970
1.7%
Proportion of Henkel sales
50%
51%
–
Operating profit (EBIT)
1,423
1,715
20.6%
Adjusted1 operating profit (adjusted EBIT)
1,584
1,817
14.7%
Return on sales (EBIT margin)
13.2%
15.6%
2.5pp
Adjusted1 return on sales (adjusted EBIT margin)
14.7%
16.6%
1.9pp
Return on capital employed (ROCE)
14.7%
16.4%
1.7pp
Adjusted1 return on capital employed (adjusted ROCE)
16.4%
17.4%
1.0pp
Economic Value Added (EVA®)
359
515
43.5%
1 Adjusted for one-time expenses and income, and for restructuring costs.
pp = percentage points
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CONSUMER
BRANDS
Within the Consumer Brands business unit, we hold leading positions
in attractive markets and have a strong brand portfolio. Our opera-
tions here are centered on the two global business areas Laundry &
Home Care and Hair, and on the Other Consumer Businesses area with
its operations in selective markets. Our portfolio features laundry de-
tergents and household cleaners, hair styling, hair colorants and hair
care products for both the Consumer and Professional businesses, and
body care products. In all business areas, we offer relevant innovations
that create added value for our customers and consumers. We distrib-
ute our products through brick-and-mortar stores, hair salons and
digital channels.
Sales
€10,467m
Organic sales growth
3.0%
Adjusted1 operating profit
(EBIT)
€1,419m
Adjusted 1 return on sales
(EBIT margin)
13.6%
Our top 3 brands
1 Adjusted for one-time expenses and income, and for restructuring expenses.
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Overview of business activities and key developments
The integrated business unit Consumer Brands encompasses the business areas Laundry & Home Care, Hair
and Other Consumer Businesses. In all business areas, we hold leading positions in numerous markets and
categories, and feature a strong brand portfolio.
In the Laundry & Home Care business area, we operate globally, offering a broad product portfolio. The
Laundry Care business comprises the fabric cleaning and fabric care products, fabric softeners and laundry
additives. Our products address a wide range of consumer needs, from deep cleaning and sensitive product
variants to fabric care across different price tiers. The portfolio in our Home Care business covers a range of
categories – from dishwashing and hard surface cleaners to toilet cleaners.
Our Hair business area is also represented globally – both in the Consumer and Professional businesses. We
are active with various brands covering hair care, hair colorants and hair styling products, and appeal to a
broad base of consumers. We offer comprehensive expertise and innovative technologies that are employed
in both the Consumer and Professional businesses.
In the business area Other Consumer Businesses, we are primarily active in the Body Care category in
selective markets, such as North America and Europe.
By merging our consumer goods businesses to form the Consumer Brands business unit, we have laid the
foundation for further profitable growth. We are focusing the portfolio on strategic businesses and brands
with attractive growth and margin potential. Another key aspect of our strategy is aligned to valorizing our
portfolio. Through targeted innovations, supported by strong, focused investments in advertising and market-
ing, we are able to offer our consumers clear added value while further strengthening our brands. In the
course of the integration, we are leveraging significant synergies to further enhance profitability, with some
of the savings being used for reinvestment into innovations, sustainability and digitalization. A detailed
discussion of the strategic objectives associated with the creation of the integrated business unit Consumer
Brands can be found on pages 99 to 101.
Over the past year, we have consistently pushed ahead with the integration of our consumer businesses.
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In the first phase of integration, we announced our intention of focusing our portfolio on brands and
products with strong margins and growth potential and, in the process, reviewing businesses representing
a total sales volume of around 1 billion euros. Since announcing the merger of our consumer businesses, we
have so far divested or discontinued businesses and brands representing total sales of around 700 million
euros. Portfolio measures in 2024 concentrated on Laundry & Home Care and, from a regional perspective,
on North America. We successfully completed the announced discontinuation of the relevant business activities
by the end of the year, as planned. The agreement signed on February 3, 2025 to sell the Retailer Brands
business in North America marks the conclusion of the strategic portfolio optimization process as part of the
integration of the Consumer Brands business unit.
At the same time, we are strengthening our portfolio with a number of acquisitions. In 2024, for example,
we acquired the Vidal Sassoon brand and the related consumer hair care business in China.
Henkel had also announced that the merger of the consumer businesses would affect around 2,000 jobs
globally – mainly in sales and administration. Corresponding agreements covering this number had been
concluded by year-end 2023. We achieved the targeted total net savings of around 275 million euros by
the end of 2024, and in doing so successfully completed the first phase of the integration.
The effect of the stronger focus of our portfolio and the enhanced marketing support for our brands is
already visible, for example, in improved growth momentum. The Hair business area, for example, where the
portfolio measures have already been completed, generated very strong organic sales growth overall in 2024,
including strong volume development. We were also able to expand market shares in the Hair Styling and
Hair Colorants categories globally. Our top 10 brands also posted similarly positive growth performance,
likewise generating very strong organic sales growth and positive volume development.
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The second phase of integration is focusing on optimizing the production and logistics network. Here,
too, we continued to resolutely implement appropriate measures in 2024. The 1-1-1 approach in line with
the principle of “one face to the customer” (one order, one shipment, one invoice) has now been successfully
implemented in the majority of countries. We have also continued to drive the consolidation of our production
network. This includes optimizing our production capacities through consolidation and closures in the North
America, Europe and IMEA regions. Overall, we have thus already significantly reduced complexity in our
production and logistics network – measured by the number of production sites, production lines, warehouses
and third-party contract manufacturers. Of the announced annual net savings target of around 250 million
euros by 2026, around 150 million euros had already been realized by the end of 2024.
As a result, we had already achieved around 425 million euros of the announced target of 525 million euros
in annual net savings by 2026 overall across both phases of the integration.
We also fostered relevant innovations under our strong brands – such as Perwoll, Somat or Schwarzkopf. In
2024, the business unit generated more than 50 percent of its sales with its top 10 brands. The proportion
of sales from products successfully launched onto the market in the last three years was over 50 percent.
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SELECTED INNOVATIONS IN 2024
New Triple Renew Technology
from Perwoll
Our new Perwoll technology
smooths fibers, brings colors back
to life, and gently cleans garments
with a pleasant fragrance. Our
leading fabric care brand is now
available in over 40 countries. As
of last year, that includes South
Korea and also the United Kingdom,
where the Perwoll technology is
marketed under the Dylon brand.
Somat introduces world’s
first 5-in-1 cap
With five powerful chambers, the
new Somat 5-in-1 caps effectively
tackle stubborn, dried-on food
residues that have been left for up
to 72 hours. With our dishwashing
brand Somat, we occupy a leading
position in over 80 percent of our
active markets and reach large
numbers of consumers in over
20 countries.
New shampoos and conditioners
added to Kenra portfolio
Our salon brand Kenra in North
America has expanded its portfolio
with new shampoos and condi-
tioners for easier combing and
stronger, shiny hair from root to
tip. The innovative formula also
contains ingredients such as vita-
mins D and E, plus peptides to
protect the hair.
NEU
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Market environment
Overall, the global markets of relevance for the Consumer Brands business unit recorded strong growth in
2024, to which all regions contributed with the exception of Asia-Pacific. This market growth continued to
be characterized by higher consumer prices, while volume development remained flat overall.
The global laundry detergents and household cleaners market of relevance for the Laundry & Home Care
business area showed strong price-driven growth year on year. Growth in the laundry care area was strong
overall, driven mainly by the Fabric Finisher and Fabric Cleaning categories. The home care market recorded
very strong growth driven primarily by a significant increase in the Dishwashing category.
The consumer markets of relevance for the Hair business area likewise experienced strong price-related
growth overall. This development was driven by very strong growth in the Hair Styling category. The Hair
Colorants category posted good growth, while the Hair Care category recorded strong growth.
The body care markets, which are of relevance for the business area Other Consumer Businesses, posted
very strong growth in 2024.
Within this environment, the Consumer Brands business unit recorded a good performance overall in
fiscal 2024.
Sales performance
Sales in the Consumer Brands business unit totaled 10,467 million euros in the year under review, -0.9 percent
below the prior year in nominal terms. Foreign exchange effects reduced sales by -1.8 percent. Acquisitions/
divestments also had a negative impact of -2.0 percent on sales, with the disposal of our business activities in
Russia in April 2023 remaining the primary cause.
Organically (i.e. adjusted for foreign exchange and acquisitions/divestments), sales increased by 3.0 percent.
This sales growth was driven by very strong price development, while volumes declined due, in particular, to
continued portfolio optimization measures.
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Sales development
in percent
2023
2024
Change versus previous year
-3.3
-0.9
Foreign exchange
-4.4
-1.8
Adjusted for foreign exchange
1.0
0.9
Acquisitions/divestments
-5.1
-2.0
Organic
6.1
3.0
Of which price
12.4
4.2
Of which volume
-6.3
-1.2
Organic sales development by business area
The organic sales growth in fiscal 2024 was attributable to both the Laundry & Home Care and the Hair
business areas.
Sales performance by business area
Sales
in million euros
2023
2024
+/-
Organic
Consumer Brands
10,565
10,467
-0.9%
3.0%
Laundry & Home Care
6,794
6,548
-3.6%
1.2%
Hair
3,075
3,256
5.9%
6.9%
Other Consumer Businesses
696
663
-4.7%
2.1%
The Laundry & Home Care business area generated positive organic sales growth of 1.2 percent, driven in
particular by the Home Care business. The very strong organic sales growth in this area was driven mainly by
a significant increase in the Dishwashing category. Our core brand Pril made a substantial contribution to
this growth, posting a double-digit increase. In the Laundry Care business, we posted a slightly negative
organic sales development overall. We generated significant sales growth in the Fabric Care category, which
is attributable in particular to the double-digit growth of our core brand, Perwoll. Among other influences,
growth here was driven by recent innovations, such as the Triple Renew Technology, entry into new markets
and strong media support. The Fabric Finisher category meanwhile recorded negative organic sales development,
which was also due to the portfolio optimization measures.
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The Hair business area generated very strong organic sales growth of 6.9 percent overall. The Consumer
business recorded significant growth that was driven mainly by the Hair Styling category featuring our core
brands got2b and Taft. Here, again, we reaped the benefits of our innovative products and strong marketing
support. The Hair Care category generated significant organic growth, while the Hair Colorants category
also achieved very strong sales growth. The Professional business was able to continue its positive performance
from previous years and delivered strong organic sales growth. We also benefited from innovative products
in the Professional business, particularly in our core brands Kenra and Joico in North America.
The business area Other Consumer Businesses recorded good organic sales growth of 2.1 percent overall,
with all regions making a positive contribution to this result.
Sales by business area 2024
Organic sales development by region
All regions contributed to the strong organic sales growth achieved in the Consumer Brands business unit,
with the exception of North America. In Europe, we recorded good organic sales growth, mainly driven by
the Hair business area. The North America region posted negative sales development due to the performance
in the Laundry & Home Care business area, which was impacted in particular by portfolio optimization
measures. The Latin America region recorded good organic sales growth, driven by the Hair business
area. Organic growth in the Asia-Pacific region was also good, driven by both Laundry & Home Care and
Hair. The IMEA region achieved double-digit organic sales growth, to which all business areas contributed.
Laundry & Home Care
Hair
Other Consumer Businesses
31%
6%
63%
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Operating profit
The Consumer Brands business unit generated adjusted operating profit of 1,419 million euros, a significant
increase versus the previous year (1,115 million euros). Gross margin also improved significantly, driven by a
range of measures including pricing initiatives as part of the valorization strategy, ongoing measures to reduce
costs and enhance purchasing, production and supply chain efficiency, savings generated from the creation
of the integrated Consumer Brands business unit – in particular the measures implemented in the second
phase – and portfolio optimization measures. At the same time, we increased our marketing and advertising
spend versus prior year, aimed at strengthening our brands and businesses. Adjusted return on sales reached
13.6 percent, representing a significant increase of 300 basis points compared to the previous year.
Net working capital as a percentage of sales came in at -6.4 percent, virtually on a par with the previous
year’s figure (2023: -6.5 percent). At 12.3 percent, adjusted return on capital employed (adjusted ROCE)
increased significantly versus prior year, due mainly to improved adjusted operating profit. Economic Value
Added (EVA®) was 415 million euros following -116 million euros in the previous year. This substantial increase
was driven in particular by the significant improvement in operating profit compared to the prior year.
Key financials
in million euros
2023
2024
+/-
Sales
10,565
10,467
-0.9%
Proportion of Henkel sales
49%
48%
–
Operating profit (EBIT)
753
1,276
69.4%
Adjusted1 operating profit (adjusted EBIT)
1,115
1,419
27.2%
Return on sales (EBIT margin)
7.1%
12.2%
5.1pp
Adjusted1 return on sales (adjusted EBIT margin)
10.6%
13.6%
3.0pp
Return on capital employed (ROCE)
6.5%
11.1%
4.6pp
Adjusted1 return on capital employed (adjusted ROCE)
9.6%
12.3%
2.7pp
Economic Value Added (EVA®)
-116
415
–
1 Adjusted for one-time expenses and income, and for restructuring expenses.
pp = percentage points
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Net assets and financial position
Acquisitions and divestments
Effective April 2, 2024, Henkel acquired all shares in Seal for Life Industries Intermediate Co., USA, Seal for
Life Global Dutch Holding B.V., Netherlands, and SFL Canusa Canada Ltd., Canada, in the Adhesive Technologies
business unit. These acquired companies, together with their subsidiaries, operate globally under the name
Seal for Life and specialize in protective coatings and sealing solutions in a broad variety of infrastructure
markets such as renewable energies, oil, gas and water.
Effective April 30, 2024, we also completed the acquisition of the Vidal Sassoon brand and related consumer
hair care business in China in the Consumer Brands business unit.
Active portfolio management continues to be an essential element in determining the future strategic direction
of the Henkel Group. Both the acquisition and sale of trademark rights and businesses are integral to our
strategy. As part of this strategy, we divested the global metal packaging coatings business in the Adhesive
Technologies business unit effective October 1, 2024. We also made a number of small divestments in both
business units in fiscal 2024.
These transactions did not have any material effect on the net assets, financial position and results of operations.
Furthermore, acquisitions and divestments in the year under review did not result in any material changes in
the business and organizational structure of the Henkel Group. For detailed information on our organization
and business activities, please refer to the disclosures on pages 93 to 95.
Additional disclosures relating to our acquisitions and divestments can be found on pages 222 to 224 of the
notes to the consolidated financial statements.
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Capital expenditures
In the reporting period, capital expenditures (excluding acquisitions) amounted to 615 million euros (previous
year: 613 million euros). At 561 million euros, investments in property, plant and equipment for existing
operations remained roughly on a par with the 2023 figure of 560 million euros.
Capital expenditures on property, plant and equipment in the Adhesive Technologies business unit totaled
308 million euros (previous year: 287 million euros) and in the Consumer Brands business unit totaled
240 million euros (previous year: 264 million euros). We invested 54 million euros in intangible assets (previous
year: 53 million euros).
Most of the expenditure was channeled into expansion projects, innovations and streamlining measures,
which included, for example, increasing our production capacity, introducing innovative product lines and
optimizing our supply chain.
The major projects of 2024 were as follows:
Construction of an adhesives production plant as part of a relocation in China (Adhesive Technologies)
Construction and extension of automated warehouses in Germany (Consumer Brands)
Relocation of a research and development and office site in Germany (Consumer Brands)
Site consolidation and expansion of an innovation center in China (Adhesive Technologies)
Construction of a thermal conductors manufacturing plant in the USA (Adhesive Technologies)
In regional terms, capital expenditures focused primarily on Europe, North America and Asia-Pacific.
The acquisitions resulted in additions to intangible assets and property, plant and equipment in the amount
of 1,367 million euros. Details of these additions can be found on pages 243 to 253 of the notes to the con-
solidated financial statements.
€ 615 million
Investments in property,
plant and equipment and
intangible assets
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Capital expenditures by business unit in 20241
1 Existing operations
Capital expenditures 2024
in million euros
Existing
operations
Acquisitions
Total
Intangible assets
54
1,317
1,372
Property, plant and equipment
561
50
610
Total
615
1,367
1,982
Right-of-use assets
In the course of its business operations, Henkel enters into various lease agreements as a lessee. In 2024, the
Henkel Group recognized additions to right-of-use assets in property, plant and equipment of 219 million
euros in total (previous year: 99 million euros). Acquisitions accounted for additions of 10 million euros (previous
year: 4 million euros). Additional disclosures relating to leases can be found on pages 252 and 253 of the
notes to the consolidated financial statements.
2%
54%
44%
Adhesive Technologies
Consumer Brands
Corporate
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Net assets
At 35.3 billion euros, total assets increased compared to year-end 2023 (31.7 billion euros).
Under non-current assets, intangible assets increased by 1,798 million euros in total to 18,781 million euros.
Additions of 1,372 million euros from acquisitions and capital expenditures, and positive currency effects
(637 million euros) were offset primarily by scheduled amortization (124 million euros) and impairment (43 mil-
lion euros). At 3,802 million euros, property, plant and equipment was above the level at year-end 2023
(3,736 million euros). The additions described under the sections dealing with capital expenditures and
right-of-use assets were partially offset by scheduled depreciation (586 million euros, of which 141 mil-
lion euros attributable to right-of-use assets) and impairment (86 million euros).
Current assets totaled 11.0 billion euros, an increase compared to year-end 2023 (9.3 billion euros). Other
financial assets increased by 586 million euros as a result of short-term cash investments. The volume of
cash and cash equivalents also increased by 938 million euros. Details on the development of cash and cash
equivalents are discussed in the section on our financial position on pages 144 and 145. In addition, assets
held for sale increased by 69 million euros in fiscal 2024. For further discussion of the assets held for sale,
please refer to the notes on pages 260 and 261.
Equity including non-controlling interests totaled 21.8 billion euros, an increase compared to year-end 2023
(20.0 billion euros). Net income in the amount of 2,032 million euros and the currency translation of the financial
statements of our subsidiaries in the amount of 618 million euros had a positive effect on equity. Dividend
payments in particular had a countervailing effect, reducing equity by 788 million euros. The individual com-
ponents influencing equity development are shown in the consolidated statement of changes in equity on
pages 213 and 214.
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Financial structure
in million euros
1 Amended following the updated allocation of the purchase price for the shares in Composite Technology Intermediate, Inc.
Non-current liabilities totaled 4.4 billion euros as at December 31, 2024, and were thus 384 million euros
above the level at year-end 2023. Here, non-current borrowings in particular increased by 189 million euros
as part of the financing, in matching currencies, of our acquisitions. Other financial liabilities and deferred tax
liabilities were also up on the prior year-end at 81 million euros and 72 million euros respectively.
Compared to year-end 2023, current liabilities increased by 1.3 billion euros to 9.1 billion euros in total.
1,118 million euros of this increase is attributable to the changes in current borrowings, which increased due
to the local assumption of liabilities to banks and the issuance of commercial paper.
Equity
Non-current assets
thereof: Intangible assets/
property, plant and equipment
Current assets
thereof: Cash and
cash equivalents
Current liabilities
thereof: Borrowings
Non-current liabilities
thereof: Pension obligations
thereof: Borrowings
Assets
of which in %
Equity and liabilities
of which in %
31,7271
31,7271
35,267
35,267
1
24
13
2
6
63
65
6
29
71
2023
2023
2024
2024
64
8
31
69
4
26
12
2
6
62
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Effective December 31, 2024, our net financial position1 amounted to -93 million euros (previous year:
12 million euros).
Net financial position
in million euros
Net financial position 2019 to 2024
in million euros
2019
-2,047
2020
-888
2021
-292
2022
-1,267
2023
12
2024
-93
1 The net financial position is defined as cash and cash equivalents, including cash and cash equivalents held for sale, plus readily
monetizable securities and time deposits and financial collateral provided, less borrowings, plus positive and minus negative fair
values of derivative financial instruments.
€ -93 million
Net financial position
At
December 31,
2023
At
December 31,
2024
Free cash
flow
Dividends
paid
Proceeds
from
divestments
Allocations
to pension
funds
Miscellaneous
Payments for
investments
in financial
assets
Payments for
acquisitions
12
2,362
-788
-51
-200
92
-1,345
-175
-93
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Financial position
Cash flow from operating activities in the year under review came in at 3,120 million euros, representing
a decrease versus fiscal 2023 (3,255 million euros). While the operating result in fiscal 2024 increased compared
to the previous year, the reduction in net working capital1 in fiscal 2023 led to a cash inflow in cash flow from
operating activities. This resulted from a normalization of previously increased prices for inventories, the
reduction of buffer stocks due to the easing of logistics and material bottlenecks, and the optimization of
inventory management. The net working capital relative to sales increased by 0.4 percentage points to
3.0 percent in fiscal 2024 compared to the previous year.
At -2,330 million euros, the cash outflow in cash flow from investing activities was up in fiscal 2024 compared
to the previous year (-684 million euros). The higher figure in the year under review was mainly due to
higher payments for the acquisition of subsidiaries and other business units and higher investments in other
financial assets compared to the prior-year period. Furthermore, the proceeds on disposal of subsidiaries
and business units in the year under review were below the 2023 figure. Further discussion of the acquisitions
and divestments in 2024 can be found in the “Acquisitions and divestments” section on page 138.
In fiscal 2024, cash flow from financing activities showed a cash inflow of 171 million euros, while in fiscal
2023 Henkel recorded a cash outflow of -1,754 million euros. The cash inflow in the year under review resulted
principally from payments received in connection with the assumption of liabilities to banks and commercial
paper financing, although compared to the previous year there were lower cash inflows from reimbursements
from Henkel Trust e.V. and external pension funds under “Other changes in pension obligations.” The cash
outflow in fiscal 2023 resulted primarily from a reduction in borrowings and the acquisition of treasury shares.
Cash and cash equivalents increased compared to December 31, 2023 by 938 million euros to 2,889 mil-
lion euros.
At 2,362 million euros, free cash flow was down year on year (2023: 2,603 million euros), due in particular to
the lower cash flow from operating activities and lower cash inflows from reimbursements from Henkel
Trust e.V. and external pension funds under “Other changes in pension obligations” in the period under review.
1 Inventories plus advance payments and receivables from customers and suppliers, less liabilities to customers and suppliers and
current sales provisions.
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The development of our financial position is indicated in detail in the consolidated statement of cash flows
on pages 215 and 216.
Financial and capital management
The financing of the Group is centrally managed by Henkel AG & Co. KGaA. Funds are, as a general rule,
obtained centrally and distributed within the Group. Our financial management is based on the financial ratios
defined in our financial strategy (see table of key financial ratios on page 146). We pursue a conservative
and flexible investment and borrowings policy with a balanced investment and financing portfolio. The pri-
mary goals of our financial management are to secure the liquidity and creditworthiness of the Group, to-
gether with ensuring access at all times to the capital market, and to generate a sustainable improvement in
shareholder value.
Measures deployed in order to achieve these aims include optimization of our capital structure, adoption of
an appropriate dividend policy, equity management and long-term debt reduction. Our capital needs and
capital procurement activities are coordinated to ensure that requirements with respect to earnings, liquidity,
security and independence are taken into account and properly balanced.
In fiscal 2024, Henkel paid the same dividends as in 2023 on both ordinary and preferred shares. Cash flows not
required for capital expenditures, dividends and interest payments were primarily used to finance our
acquisitions. We covered our short-term financing requirement primarily through commercial paper. Our multi-
currency commercial paper program is additionally secured by a syndicated credit facility. The Henkel Group
had access to approved credit lines of 2.0 billion euros that remained unutilized as of December 31, 2024
(previous year: 1.6 billion euros).
Our credit rating is regularly assessed by the rating agencies S&P, Moody’s and Scope Ratings. As in previous
years, our ratings remain within the “single A” target corridor. This is a good rating in the prime investment
grade segment.
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Credit ratings
S&P
Moody’s
Scope Ratings
Long term
A
A2
A
Outlook
Stable
Stable
Stable
Short term
A–1
P-1
S-1
At December 31, 2024
Our long-term ratings remain at A (S&P), A2 (Moody’s) and A (Scope Ratings) with a stable outlook. Our
short-term ratings are on the highest possible level in each case. This ensures our continued unrestricted
access to the money and capital markets and to favorable financing terms and conditions.
As of December 31, 2024, our borrowings totaled 3,576 million euros (previous year: 2,269 million euros).
They mainly comprised bonds issued and commercial paper.
Henkel’s financial risk management activities are explained in the risks and opportunities report on pages
175 to 202. Further detailed information on our financial instruments can be found in the financial instru-
ments report on pages 284 to 320 of the notes to the consolidated financial statements.
Key financial ratios
Leverage in fiscal 2024 was 0.3 and therefore remained unchanged compared to the figure for the previous year.
The interest coverage ratio in the year under review was 29.4, following 26.3 in fiscal 2023. The equity ratio as at
December 31, 2024 was 61.9 percent (previous year: 63.0 percent).
Key financial ratios
2023
2024
Leverage
Net financial position extended1 * (-1)/EBITDA
0.3
0.3
Interest coverage ratio
EBITDA/(interest expenses and pension interest)
26.3
29.4
Equity ratio
Equity/total assets
63.0%
61.9%
1 The extension additionally takes into account provisions for pensions and similar obligations, lease liabilities, sundry financial liabilities and
receivables from Henkel Trust e.V. and external pension funds.
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Employees
Our employees shape our Company through their commitment, knowledge and skills. They are crucial for
driving our long-term success. This is why strengthening a corporate culture characterized by close collab-
oration and empowered people is an integral element of our strategic framework for purposeful growth.
Open and appreciative leadership culture
Building on shared values, our Leadership Commitments form the behavioral foundation for our employees
to bring our purpose – “Pioneers at heart for the good of generations” – to life. The Leadership Commitments
are at the center of our initiatives and are firmly anchored in our HR processes and systems.
We strongly believe that cultural change requires the engagement of all our employees, which is why we
support them by offering various learning formats – such as the so-called Feedback Upskilling – to help
them to reflect on and adjust their behaviors. At the same time, cultural change requires greater transparency
in relation to the development areas of leaders. Hence, we have been guiding our top executives through
a 360-degree coaching process that supports them as role models in creating an inspiring and modern work
environment. To support our employees in fostering our cultural change, we launched the Accelerate
Cultural Transformation (ACT) initiative in 2023 and continued it in the year under review. The aim is to
encourage dialog across teams and to define concrete measures.
Development of employee numbers
As of year-end 2024, around 47,150 people were employed at Henkel. The decline year on year (2023: 47,750)
is mainly due to the optimization of the production and logistics network of our integrated Consumer Brands
business unit.
Payroll cost and average employee numbers
2023
2024
Payroll cost in million euros
3,775
3,960
Average employee numbers
48,900
47,500
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Promoting diversity
Diversity, equity and inclusion (DEI) are strategically important for Henkel and are an integral part of our
corporate culture. We are convinced that a diverse workforce as well as an open and appreciative corporate
culture, are important success factors in a globalized world. Our ambition is to promote a culture of belonging
and to create equal opportunities in order to leverage the full potential of our diversity. We thus pursue a
holistic approach encompassing different dimensions of diversity.
To strengthen diversity, we pursue a clearly defined DEI strategy that is based on three main pillars: Firstly,
we raise awareness for the various dimensions of diversity using different formats, such as campaigns and
events. Secondly, we offer training programs for managers and employees to foster inclusive behavior. And
thirdly, we are continuously improving the general structural conditions, for example through offerings to
promote work-life balance in order to eliminate structural barriers. As part of this, we introduced eight-week
gender-neutral parental leave for all employees worldwide in the year under review. Additionally, we define
clear targets to track our progress.
Employees by organizational unit
At December 31, 2024
50%
31%
19%
Adhesive Technologies
Consumer Brands
Corporate
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Women in management
in percent
2020
2021
2022
2023
2024
Henkel
36.1
36.7
37.1
37.7
38.8
Managers
36.9
38.1
38.7
39.5
41.9
Top managers1
25.2
27.6
29.6
30.7
34.5
1 Corporate Senior Vice Presidents, management circles I and IIa.
One of our strategic diversity dimensions is gender diversity. We want to steadily increase the proportion of
women at all levels of the Company, and are pursuing the ambition of achieving gender parity across all
management levels by 2025. In 2024, the proportion of women in management increased to 41.9 percent.
Internationality is also a natural part of the world of work at Henkel: We are represented by 126 nationalities
operating in 75 countries. More than 80 percent of our workforce operate outside Germany.
Energized and empowered teams
We enhance our employees’ skills and knowledge and help them to reach their full potential – on the basis
of regular development meetings, transparent and ongoing feedback as well as individual development
plans. This enables us to systematically identify and develop talents within the Company and ensure internal
succession planning. Individual upskilling measures and possible career steps are also discussed as part of
our globally standardized assessment process.
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Shaping the future of work
Based on a culture of trust, we have been promoting flexible working models for years. Our holistic Smart
Work concept forms the global framework for mobile working and highlights the potential of how our office
landscapes can better support collaboration among our employees, what improvements are possible through
our health program and which additional opportunities are offered by digitalization. An online program gives
all employees the chance to not only understand Smart Work as a concept but also to put it into the best
possible practice, both as individuals and in teams. The holistic Smart Work concept is now firmly established
within the Company.
Employees by activity
At December 31, 2024
Production and engineering
Marketing, selling and
distribution
Administration
Research and development
6%
50%
26%
18%
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Recruiting, developing and retaining talents
As an employer, we want both our current and potential future employees to be inspired and convinced by
our corporate culture and our development opportunities. As part of our global campaign entitled “Dare to
make an impact?” we offer authentic insights into our working world on our Careers webpage, on social
media and at face-to-face events. The positive response is reflected by our position in employer rankings
and ratings.
We give due consideration to locally different training paths for in-house training and the professional
development of our people. We offer 26 apprenticeship and five dual-track study programs in Germany. In
2024, we welcomed 140 new apprentices and dual-track students as they began working toward a professional
qualification at Henkel. We also offer a range of trainee programs in selected emerging markets. Hence, we
provide manifold development opportunities for our employees.
Employees per region over time
2020
%
2021
%
2022
%
2023
%
2024
%
Europe
24,100
45.5
24,100
46.0
23,650
46.2
20,900
43.7
20,450
43.4
IMEA
5,800
11.0
5,650
10.7
5,150
10.1
5,000
10.5
5,000
10.6
North America
8,850
16.7
8,250
15.7
8,300
16.2
8,050
16.8
7,850
16.6
Latin America
6,150
11.6
6,300
12.0
5,500
10.7
5,250
11.0
5,400
11.5
Asia-Pacific
8,100
15.3
8,200
15.6
8,600
16.8
8,600
18.0
8,500
18.0
Total
52,950
100.0
52,450
100.0
51,200
100.0
47,750
100.0
47,150
100.0
Basis: permanent employees excluding apprentices; figures rounded (at December 31)
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Procurement
We use externally sourced materials (raw materials, packaging and purchased goods and services) to man-
ufacture our finished products. These items all fall under the general category of direct materials. Examples
include washing-active substances (surfactants), adhesive components, cardboard boxes and external bottling
services.
Aside from supply and demand, the prices of direct materials are mainly determined by the prices of the
input materials used to manufacture them. In 2024, prices for direct materials remained flat overall compared
to the previous year. After a downward trend in the first half of the year – particularly in the Adhesive Tech-
nologies business unit, prices for direct materials increased again in the second half of the year. Following
substantial increases in prior years, raw material prices remained high overall. The prices for direct materials
were also driven by rising labor costs and by in parts still elevated logistics and energy costs.
Our direct material spend was slightly down year on year at 8.0 billion euros (2023: 8.2 billion euros). While the
prices for direct materials remained flat overall, the measures taken to reduce costs and enhance purchasing,
production and supply chain efficiency, the portfolio measures taken in the Consumer Brands business unit,
and the disposal of our business activities in Russia in April 2023 had a particular impact.
Direct material spend by business unit in 2024
45%
55%
Adhesive Technologies
Consumer Brands
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The five most important categories of direct materials are raw materials for use in hotmelt adhesives, washing-
active substances (surfactants), polyurethanes, inorganic raw materials, and packaging materials for adhesives.
These account for more than 35 percent of all direct material expenditures. Our five largest suppliers represent
around 15 percent of purchasing volume in direct materials.
Direct material spend by type of material in 2024
Within the category of indirect materials and services, we procure materials and services that are not
directly used to manufacture our finished products – such as maintenance materials, or logistics, marketing
and IT services. At 7.0 billion euros, the spend for indirect materials and services in 2024 was above the
prior-year level (2023: 6.4 billion euros).
Raw materials
Packaging
Purchased goods
and services
12%
20%
67%
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We continuously optimize our value chain to further improve our level of quality and efficiency and to secure
material supplies. In addition to negotiating new, competitive contract terms and conditions, our ongoing
measures to reduce total procurement expenditures is a major factor in the success of our global purchasing
strategy. We enter into long-term business relationships with selected suppliers to foster the development
of innovations, and to optimize manufacturing costs and logistics processes. We also agree and implement
individual targets with our strategic suppliers aimed at optimizing the supply of both direct and indirect
materials and services. Risk management is an important component of our purchasing strategy, especially
against the backdrop of persisting uncertainties on the procurement markets. The emphasis here is on reducing
price and supply risks while maintaining consistently high quality.
Sustainability plays a major role in our procurement strategy. Since 2011, we have been involved as co-founders
of “Together for Sustainability – Chemical Supply Chains for a Better World (TfS),” an initiative spawned by
the chemical industry with the goal of harmonizing the ever more complex supplier management processes
in the field of sustainability, and improving environmental and social standards within the supply chain. As
part of this initiative, we regularly perform sustainability assessments and audits of our strategic suppliers.
For a more detailed discussion of our strategies and measures, please refer to our Sustainability Report 2024.
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Production
In 2024, Henkel manufactured products at 161 sites in 53 countries. Our largest production facilities are located
in Bowling Green, Kentucky, USA, and in Düsseldorf, Germany. In Bowling Green, we manufacture laundry
detergents and household cleaners. In Düsseldorf, we produce not only laundry detergents and household
cleaners but also adhesives for consumers and craftsmen, and products for our industrial customers.
Number of production sites
2023
2024
Adhesive Technologies
122
124
Consumer Brands
39
37
Total
161
161
(at December 31)
In 2024, we further aligned the global production network of our Adhesive Technologies business unit to
the continuously changing requirements of the markets. Our current 124 production sites around the globe
use cutting-edge manufacturing technologies to secure cost and quality benefits in production and to meet
the requirements of our customers. We invest in improving our manufacturing and warehouse footprint in
line with market developments in all regions.
The acquisition of Seal for Life Industries in April 2024 increased the number of production sites. At the same
time, we continued to optimize our production network in 2024 by consolidating existing sites.
The construction of the new Adhesive Technologies production site in the Asia-Pacific region with an investment
volume of around 120 million euros proceeded according to plan in 2024. The production of adhesives for
the fast-growing industry sectors of electronics, medicine, appliance manufacturing and aviation is scheduled
to gradually begin in 2025.
As the merger of our integrated Consumer Brands business unit progressed, we concentrated on optimizing
the production and logistics network in 2024. The focus of this transformation program – which is expected to
generate annual savings of around 250 million euros by 2026 – includes not just merging production capacities
to optimize the network but also comprehensively optimizing the operational processes in all plants and
warehouses worldwide.
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In 2024, we maintained operations a total of 37 sites – slightly fewer than in the previous year. This is partly
due to the closure of the Laundry Care Port Said site in Egypt. Additionally, the change at the Viersen-Dülken
site in Germany is also reflected in this reduction, as it has now been fully transferred to the new owner as
part of the divestment of our former Oral Care business. Furthermore, we have taken measures to optimize
our production and logistics network. For example, we moved the liquid detergent production from the Saint
Louis site in Missouri, USA, to our Bowling Green site in Kentucky, USA, and thus further consolidated the
detergent production in North America. The production facility for manufacturing certain input products
for our detergents remains at the Saint Louis site. We also continued to implement the 1-1-1 principle –
one order, one shipment, one invoice – in 2024, with this now having been introduced in most countries. As a
result of these measures, we have already been able to achieve a significant complexity reduction in our
production and logistics network – measured by the number of production sites, production lines, warehouses
and contract manufacturers.
In addition, the Consumer Brands business unit again launched relevant capital expenditure projects in 2024.
This includes the conversion of production lines to facilitate the introduction of innovative paper packaging
for the European market. We also started a project to optimize the manufacturing process at our largest
production site in Bowling Green – with the aim of producing new, innovative product formulas in Laundry
Care for sensitive skin.
In 2024, we continued fostering sustainability and digitalization as major cornerstones in both business
units to ensure a future-ready production and logistics network.
Particularly, we made further progress in reducing our greenhouse gas emissions in production. For information
on our strategies and measures as well as relevant key figures, please refer to our Sustainability Report 2024.
We are also driving various Industry 4.0 initiatives in both business units. To this end, site-specific measures
were again put in place again to standardize, digitalize and link processes and components in the year under
review. Our aim is to ensure a continuous data exchange along the entire value chain – as the basis for
optimized planning and resource provision, and for production and logistics efficiency.
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Research and development
Expenditures by the Henkel Group for research and development (R&D) in fiscal 2024 totaled 634 million euros
and were thus above the prior-year level (587 million euros). The ratio of R&D expenses to sales amounted
to 2.9 percent (previous year: 2.7 percent). Adjusted R&D expenditures totaled 631 million euros, following
580 million euros the year before. The ratio of adjusted expenses to sales was 2.9 percent (previous year:
2.7 percent).
In 2024, R&D expenditures were mainly attributable to internal personnel expenses. Our research and devel-
opment costs were fully expensed; in compliance with International Financial Reporting Standards (IFRSs), no
product- or technology-related development costs were capitalized.
On an annual average, around 2,750 employees worked in research and development, as in the previous
year. This corresponds to approximately 6 percent of the total workforce. Our teams are composed of
scientists – predominantly chemists – as well as material scientists, engineers and technicians.
The capabilities of our employees and our investments form the foundation on which the success of our
R&D activities is built. We continue to focus on highly efficient innovations and steadily reducing our resource
consumption, while maintaining or improving performance.
R&D expenditures by business unit in 2024
43%
57%
Adhesive Technologies
Consumer Brands
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Key R&D figures
2020
2021
2022
2023
2024
R&D expenditures (in million euros)
501
727
570
587
634
R&D expenditures (in percent of sales)
2.6
3.6
2.5
2.7
2.9
Adjusted1 R&D expenditures (in million euros)
495
504
543
580
631
Adjusted1 R&D expenditures (in percent of sales)
2.6
2.5
2.4
2.7
2.9
Employees2 (annual average)
2,600
2,600
2,700
2,750
2,750
1 Adjusted for one-time expenses and income, and for restructuring expenses.
2 Figures rounded.
Strengthening research and development together
The research and development experts in both business units align their project portfolios to the specific needs
of their individual businesses. They work together on fundamental processes, basic innovations, evaluation
of partners for innovation, and on sustainability. The Research and Development Committee is responsible
for Group-wide coordination. The business units continually exchange on innovations in common areas of
knowledge. As in previous years, activities in 2024 focused on the areas sustainability and digitalization.
Contributing to sustainability
Worldwide, growth and quality of life need to be decoupled from resource use and emissions. Our contribution
here lies in the development of innovative products and processes that consume ever less resources while
offering the same or better performance. It is therefore our ambition to ensure that each new product
contributes to sustainable development.
We want to offer consistently better solutions, products and services that also have a positive impact on the
environment and society and thus contribute to creating value. Our focus in this respect is on three goals: In
collaboration with our suppliers, we want to continuously improve the sustainability profile of the raw materials
we use. We want to help our customers and consumers reduce their energy consumption and greenhouse
gas emissions through our innovations. And we want to ensure that our packaging fulfills consumers’ perfor-
mance expectations yet uses the least possible quantity of materials and the most sustainable solutions,
and that it can be recycled once the product has been used.
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In our innovation process, we use various tools to systematically analyze, measure and evaluate new products.
Life cycle analyses, profiles of potential raw materials and packaging materials, and our many years of
sustainability expertise enable us to identify and utilize improvement potential right from the start of the
product development process.
Open innovation and corporate venture capital
Our innovations come from both internal and external sources and evolve from long-standing, successful
partnerships. The concept of open innovation therefore holds great significance for us. Accordingly, we
constantly strive to intensify our efforts to involve customers, suppliers and other partners such as research
institutes, universities or startups. By partnering with and investing in startups with digital or technological
expertise, we are striving to gain access to strategically relevant new technologies, applications and business
models. In 2024, we further expanded our activities in this field and strengthened our expertise base, for
example through targeted investments in startup companies and venture capital funds.
Research and development worldwide
In addition to its central research laboratories, Henkel maintains research and development sites in all regions
around the world as hubs for innovative problem-solving. Worldwide research and development activities
are managed globally by the business units. Research-intensive base technologies are developed at a central
location with optimal access to external resources. These base technologies are then applied in the regional
research and development sites in the creation of customer- and market-specific innovations. At the same
time, the research and development staff in the regional sites obtain information about specific problems
for the next generation of innovations, while working in close contact with customers and consumers. The
new base technologies needed for the relevant solutions are, in turn, developed centrally.
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Selected research and development sites
The Adhesive Technologies business unit provides its customers around the globe with customer-centric
solutions based on a comprehensive portfolio of products, applications and services. The success of our
business is founded in particular on our broad technology portfolio, the extensive expertise of our global
and closely connected innovation teams, an in-depth understanding of the market, and proximity to our
customers as the result of years of close collaboration.
Similar to previous years, we focused our innovation activities and resources in 2024 on further developing
technologies and expanding partnerships aligned to key megatrends. These trends include sustainability,
digitalization and mobility, as well as connectivity and urbanization.
Düsseldorf, Germany
Hamburg, Germany
Heidelberg, Germany
Dublin,
Ireland
Barcelona,
Spain
Irvine, USA
Mexico City, Mexico
Toluca, Mexico
Guadalajara, Mexico
Bogotá, Colombia
São Paulo,
Brazil
Dubai, United
Arab Emirates
Pune, India
Sydney, Australia
Melbourne, Australia
Shanghai, China
Seoul, South Korea
Tokyo, Japan
Johannesburg,
South Africa
Madison Heights, USA
Bridgewater, USA
Stamford/Darien/Trumbull, USA
Rocky Hill, USA
Chanhassen, USA
Toronto, Canada
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In this context, the innovation centers operated by the Adhesive Technologies business unit play an important
role. In addition to the existing innovation centers – such as the Inspiration Center Düsseldorf (ICD) in Europe,
our innovation center in Mumbai, India, in the IMEA region, and the technology center in Bridgewater, New
Jersey, USA, in the North America region – the Inspiration Center Shanghai (ICS) is scheduled to open com-
pletely in 2025. Furthermore, by the end of 2025, the construction of an inspiration center in Latin America –
located in Jundiaí, São Paulo, Brazil – is planned. The new innovation centers offer a partner ecosystem for
the development of innovative, sustainable and customer-centric applications and solutions. They serve as a
hub, facilitating the exchange of knowledge and collaboration with customers and partners from the fields
of industry and science in the regions. At these innovation centers, the Adhesive Technologies business unit
showcases its entire technology portfolio of adhesives, sealants and coatings and collaborates with customers
from more than 800 industries to develop innovative and sustainable solutions.
Additionally, in 2024, we opened a state-of-the-art battery test center in Düsseldorf with the goal to further
strengthen our position as a leading development and innovation partner for automobile manufacturers and
battery producers in the electromobility market. This facility complements the application center at our
Inspiration Center Düsseldorf and forms the starting point of a global network with future locations in the
USA and China, in order to enable seamless collaboration across regions.
The Adhesive Technologies business unit again launched relevant innovations across all business areas in
2024. Selected innovations are presented on page 124.
In the Consumer Brands business unit, we bring relevant innovations to the market that meet consumers’
demand for functional use and emotional added value. In doing so, we particularly leverage technological
synergies and – based on an optimized strategy – place our global consumers at the center of our research
and development efforts. We are guided by relevant consumer trends, from sustainability to the desire for
a conscious and healthy lifestyle. Our ambition is to be “Technological pioneers for tomorrow’s consumers.”
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To successfully implement our strategy, we are rigorously driving the expansion of our research and devel-
opment centers in the various regions. This is demonstrated by our global investments in new laboratories:
For example, we have opened state-of-the-art pilot plant facilities for testing new products at our headquarters
in Düsseldorf, Germany. These new facilities for hair care and hair styling products as well as laundry and
home care products serve as a key interface between product development and production. In addition, we
have officially opened our research laboratory in Shanghai, China, which supports the entire Asian market. Its
focus is on the product development for hair care and hair coloring as well as laundry and home care. At the
same time, the laboratory serves as a central hub for the local research and development sites in the re-
gion, with the aim of further strengthening collaboration among our teams. With the addition of our new
laboratories at the House of Hair in Hamburg, Germany, we have expanded our research and development
capacities for innovations in hair care and hair styling. Across all regions, we are increasingly focusing on the
digitalization of our research and development processes, for example through a new digital platform for
product formulas in combination with a digital assistant to support product innovation and development.
In addition, we have invested in the further development of our existing global network of “Consumer Testing
Centers” as facilities that enable an even better understanding of the needs of our consumers so that we can
tailor our product developments and innovations accordingly.
We also fostered relevant innovations under our strong brands in the Consumer Brands business unit in
2024. Selected innovations are also presented on page 133.
Patents and registered designs
We hold around 10,700 patents to protect our technologies around the world. Approximately 4,700 patents
are currently pending. And we have registered around 2,500 design patents to protect our intellectual property.
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Marketing and distribution
We put our customers and consumers at the center of what we do. We offer them superior benefit, quality and
service, as well as attractive innovations of our brands and technologies. In doing so, we create sustainable value.
The Adhesive Technologies business unit offers a broad and globally leading portfolio of adhesives, sealants
and coatings. The success of our business is founded on groundbreaking innovations, customer-centric
products and strong brands. Working closely with our customers and partners, we combine our innovation
and technology leadership to create high-impact and sustainable solutions that are essential components
in countless industrial and consumer goods around the world.
We develop global and regional marketing strategies for our brands and technologies. The resulting
measures are implemented locally. Our branding strategy is aligned to our five technology-based brand
clusters for industrial customers – Loctite, Technomelt, Bonderite, Teroson and Aquence – and our four
global core brands for consumers and craftsmen (Pritt, Loctite, Ceresit and Pattex).
With our team of more than 6,500 technical experts, we foster close, long-term relationships with our more
than 100,000 customers and partners from more than 800 manufacturing and processing industry segments.
We are thus able to obtain an in-depth understanding of an exceptionally wide range of applications across
all markets. Since many of our solutions and technologies are integrated into technically highly complex
processes and products, excellent technical customer service and thorough user training worldwide are of
key importance. Retail customers and distributors serve the needs of private users, craftsmen and smaller
industrial customers.
Our innovation centers – such as the Inspiration Center Düsseldorf (ICD) – also serve as integrated, state-of-
the-art customer centers that showcase our entire range of Adhesive Technologies solutions and applications
to customers and partners from around the globe and, in doing so, strengthen cooperation. We have rolled
out this successful concept at many other sites around the world. For further details of our innovation centers,
please refer to the section “Research and development.”
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Close collaboration along the value chain is a key success factor for innovations fostering sustainability in
the widest range of industrial segments – which is why we once again brought together customers, suppliers,
partners and sustainability experts in the various regions this year. For example, at our technology center in
Bridgewater, New Jersey, USA, and at a sustainability event in Shanghai, China, we discussed the opportunities
and challenges of the sustainability transformation of the two largest industrial nations and laid the foundation
for pioneering collaborations.
We aim to ensure outstanding customer experiences at all contact points around the globe through personal
exchange as well as digital interaction. We have further expanded our digital offerings and technologies.
These include not just digital remote analysis and troubleshooting by our customer service experts, but also
a growing program of online training courses and seminars, as well as other interactive formats. In addition,
we have further increased the range of products offered by our digital marketplace “Adhesives e-shop” to
give customers from more than 60 countries a user-friendly option to order online from our broad portfolio
of specific product solutions tailored to their needs.
We strive to optimize our approach to consumers and craftsmen through the use of traditional advertising
campaigns coupled with measures to attract customers at the point of sale and with digital marketing formats.
Leveraging our close customer relationships and our comprehensive technical expertise, we continue to
offer tailored solutions and innovative branded products with sustainable added value for our customers.
In the Consumer Brands business unit, our diverse and strong brand portfolio focuses on several consumer
goods categories, in particular laundry and home care products and hair products. We are concentrating on
those markets, categories and brands in which we have strong expertise and where we see clear growth
opportunities. In this respect, the focus is on the valorization of our portfolio, which we support by targeted
innovations and strong, focused investments in advertising and marketing.
With our innovation process consistently focused on our consumers, we launch relevant innovations under
strong brands such as Persil, Schwarzkopf or all onto the market. We strive to ensure the systematic and
early identification of consumer trends – for which we also evaluate digital data – and to translate them into
relevant new products. In doing so, we concentrate on strengthening the brand equity and responding to
consumer demand for products offering functional use and emotional added value. Here, we specifically
cater to regional and local market conditions and consumer needs.
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A particular focus area is on communication and hence marketing and advertising support. In fiscal 2024,
we increased our marketing spend in the Consumer Brands business unit again compared to the previous
year in order to reach a broad consumer base, further strengthen our brands, and communicate the added
benefits of our innovations. We managed these marketing expenditures on the basis of a detailed analysis
aligned to our strategic priorities.
We use a wide range of distribution channels to offer products to our consumers: in brick-and-mortar stores,
for example, such as supermarkets, discount stores, drugstores and hypermarkets, but also on e-commerce
channels and in hair salons. Data-based understanding of our customers and consumers that we gain
through surveys and data collection enables us to craft customized solutions and to create shared value-
adding potential for our partners across all distribution channels. On the basis of our leading market positions
and global customer and consumer expertise, we serve as a strong partner for both brick-and-mortar and
online retailers.
In 2024, we were again able to welcome numerous customers to our customer centers – the Lighthouse, and
our Global Excellence Centers in Düsseldorf and Stamford, Connecticut, USA. These centers enable us to further
deepen our relationships with customers both in brick-and-mortar retail and in the field of e-commerce, and
to showcase our expertise to retail partners from around the globe. In our globally established Schwarzkopf
Academies, we offer hairdressers value-adding services in the form of customer-focused seminars and
continuous professional upskilling programs, which are used by many professionals around the world
every year.
The importance of sustainability in our relationships with customers and consumers has continued to grow
in both business units in recent years. Our customers expect their suppliers – and that includes Henkel – to
ensure compliance with global environmental, safety, and social standards. Our standards and management
systems, our many years of experience in sustainability reporting, and our leading positions awarded by
external rating agencies all help us to convince our audience of our credentials in this domain. At the same
time, the consistent implementation of our sustainability strategy strengthens both our brands and the
reputation of our Company in the marketplace. With our many years of experience in the field of sustainability,
we are able to position ourselves as a leading partner for our customers in industry and commerce, to offer
them solutions fit for the future and thereby to support them in achieving their own sustainability goals.
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HENKEL AG & CO. KGAA
(CONDENSED VERSION
ACCORDING TO THE GERMAN
COMMERCIAL CODE [HGB])1
The annual financial statements of Henkel AG & Co. KGaA have been prepared in accordance with the rules
and regulations of the German Commercial Code [HGB] and the German Stock Corporation Act [AktG].
Deviations from the International Financial Reporting Standards (IFRSs) applicable to the Group arise particularly
with respect to the methods of recognition and measurement of intangible assets, financial instruments and
provisions.
Operational activities
Henkel AG & Co. KGaA was operationally active in the two business units Adhesive Technologies and Consumer
Brands in fiscal 2024, and in the Corporate segment. Henkel AG & Co. KGaA is also the parent company
of the Henkel Group. As such, it is responsible for defining and pursuing Henkel’s corporate objectives and also
for the management, control and monitoring of Group-wide activities, including risk management and the
allocation of resources. As of year-end 2024, some 8,700 people were employed at Henkel AG & Co. KGaA.
The operating business of Henkel AG & Co. KGaA represents just a portion of the business activity of the
entire Henkel Group, which is managed across the Company by the business units, primarily on the basis of
the financial performance indicators: organic sales growth, adjusted return on sales (adjusted EBIT margin),
and growth in adjusted earnings per preferred share at constant exchange rates. Only the Group approach can
provide complete insight into these key financials (see the discussion of the management system and
performance indicators applicable to the Henkel Group on page 105).
1 The full financial statements of Henkel AG & Co. KGaA with the auditor’s unqualified opinion are filed with the commercial
register and accessible on the internet at www.henkel.com/reports.
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Unappropriated profit, the metric that determines a corporation’s ability to pay dividends, is a financial
performance indicator specifically of Henkel AG & Co. KGaA with its declared aim to ensure the reasonable
participation of its shareholders in the net income of the Henkel Group.
The profit generated by Henkel AG & Co. KGaA is dictated by its own operations, which are reflected in the sales
figures, among other metrics. Profit levels are also influenced to a large degree by the operations of its subsidi-
aries. Income from subsidiaries is a substantial contributor to the financial result of Henkel AG & Co. KGaA.
Thus the financial situation of Henkel AG & Co. KGaA generally corresponds to that of the Group as a whole,
which is discussed in the section “Review of overall business performance” on page 111.
Results of operations
Performance of key financial performance indicators
Henkel AG & Co. KGaA recorded good sales and earnings growth in 2024 compared to the previous year.
Despite the difficult economic and geopolitical environment, we were able to exceed the forecast of flat
or slightly higher sales – due in particular to higher sales in the Consumer Brands business unit and in the
Corporate segment.
Operating profit increased as a result of higher gross profit. The profit arising from the merger with a domestic
affiliated company also had a positive impact on earnings, while the previous year had been negatively
impacted by higher pension expenses and costs relating to the divestment of the business activities in Russia.
The financial result declined and therefore did not achieve the forecast, which had anticipated flat develop-
ment. The proceeds from the intragroup sale of foreign affiliated companies were more than offset by a
decline in dividend income. In addition, the previous year’s result was driven by the financial gain from
the disposal of the shares in the Russian subsidiary.
Overall, the improved operating profit substantially offset the decline in the financial result, meaning that
the forecasted increase in unappropriated profit was achieved.
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Condensed income statement in accordance with the German Commercial Code [HGB]
in million euros
2023
2024
Sales
3,756
3,862
Cost of goods and services sold
-2,635
-2,508
Gross profit
1,120
1,354
Selling and general administrative expenses
-1,157
-1,285
Research and development expenses
-540
-577
Other operating income/expenses
193
1,127
Operating profit
-384
620
Financial result
1,635
983
Income before tax
1,252
1,603
Taxes on income
-42
-92
Income after tax/Net income
1,210
1,511
Profit brought forward
971
1,411
Unappropriated profit
2,181
2,922
Sales and operating profit
Overall, Henkel AG & Co. KGaA generated sales of 3,862 million euros in fiscal 2024 (previous year: 3,756 mil-
lion euros). The Adhesive Technologies business sector achieved sales of 1,138 million euros, which was
slightly below the level of the previous year (1,160 million euros). While volumes increased, prices declined.
The Consumer Brands business unit generated sales of 1,451 million euros in fiscal 2024 (previous year:
1,437 million euros). This revenue growth was driven in particular by an increase in prices. Sales in the Corporate
segment increased significantly to 1,274 million euros in 2024 (previous year: 1,159 million euros). The
increase was due in particular to higher licensing revenues from affiliates and higher income from intragroup
services rendered.
The operating result of Henkel AG & Co. KGaA increased year on year by 1,003 million euros to 620 million
euros. The increase was driven by higher gross profit and higher other operating income, in particular as a
result of the profit arising from the merger of a domestic affiliated company.
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Expense items
Compared to 2023, cost of sales decreased by 127 million euros to 2,508 million euros, driven in part by
a decrease in license expenses due to the transfer of trademarks and similar rights as a result of the merger of
a domestic subsidiary. Gross margin increased year on year by 5.3 percentage points to 35.1 percent.
At 893 million euros, selling and distribution expenses came in above the prior-year figure of 811 million
euros. Their ratio to sales increased year on year by 1.5 percentage points to 23.1 percent, due mainly to
higher advertising expenditure in the Consumer Brands business unit.
Compared to 2023, general administrative expenses rose by 47 million euros to 392 million euros. This
increase was due in part to higher consulting expenses and higher expenses in relation to infrastructure
services. The ratio to sales increased by 1.0 percentage points to 10.2 percent.
Expenditures for research and development rose by 37 million euros to 577 million euros. The increase was
driven by greater investment in innovation. The ratio to sales rose compared to 2023 by 0.5 percentage
points to 14.9 percent.
On average, approximately 1,232 employees worked in research and development at Henkel AG & Co. KGaA
in 2024, supporting the development of innovative solutions for global application. The related activities are
managed globally by the business units. For an overview of the research and development activities, please refer
to the information relating to the Henkel Group on pages 157 to 162.
Restructuring expenses of 20 million euros, included in the expense items mentioned above, came in lower
versus 2023 (42 million euros).
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Other operating income/expenses
The balance of other operating income and expenses (other operating result), at 1,127 million euros, increased
in 2024 versus the prior year (2023: 193 million euros).
Other operating income rose in 2024 by 850 million euros year on year to 1,290 million euros. The increase
was mainly due to profit arising from the merger with an affiliated company. Among other factors, income
from the reversal of provisions, and gains from the disposal of assets, also had a positive impact on the result.
At 163 million euros, other operating expenses in 2024 were down on the prior-year total of 247 million euros.
In particular, this item includes reimbursements of costs to affiliated companies, pension expenses in con-
nection with the obligation to make additional contributions to an external pension fund, and losses on
the disposal of assets. The previous year was negatively affected by a significantly higher contribution to an
external pension fund and by expenses in connection with the divestment of the business activities in Russia.
Financial result
Financial result decreased from 1,635 million euros in 2023 to 983 million euros in 2024. Higher income from
the intragroup sale of foreign affiliated companies amounting to 516 million euros was more than offset by
a decrease in dividend income and higher write-downs on shares in affiliated companies. The previous year’s
result was driven by the financial gain arising from the disposal of the shares in the Russian subsidiary.
Taxes on income
Taxes on income amounted to 92 million euros in 2024. This figure includes withholding tax of 44 million euros
resulting from the intragroup sale of foreign affiliated companies. Taxes on income in the previous year
amounted to 42 million euros.
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Net income and unappropriated profit
Net income amounted to 1,511 million euros and was therefore above the prior-year figure of 1,210 million
euros. The increase was mainly attributable to the higher operating profit.
In light of the higher net income for the year, the unappropriated profit increased by 740 million euros year
on year to 2,922 million euros.
Condensed balance sheet in accordance with the German Commercial Code [HGB]
in million euros
Dec. 31, 2023
Dec. 31, 2024
Intangible assets and property, plant and equipment
2,191
2,315
Financial assets
13,344
11,354
Non-current assets
15,535
13,669
Inventories
20
17
Receivables and miscellaneous assets
1,013
1,342
Marketable securities
214
514
Liquid funds
1,132
1,950
Current assets
2,378
3,823
Prepaid expenses
43
31
Assets arising from the overfunding of pension obligations
9
12
Total assets
17,965
17,534
Equity
6,624
7,367
Special accounts with reserve element
60
58
Provisions
1,035
1,016
Liabilities/deferred income
10,246
9,093
Total equity and liabilities
17,965
17,534
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Net assets and financial position
In 2024, the total assets of Henkel AG & Co. KGaA decreased compared to year-end 2023 by 431 million euros
to 17,534 million euros.
Non-current assets decreased by 1,866 million euros to 13,669 million euros, mainly due to a reduction in
financial investments following, in particular, the merger of a domestic subsidiary, the intragroup sale of
affiliated companies and write-downs on shares in affiliated companies. The decrease was partially offset by
the addition of shares in affiliated companies. The carrying amount of intangible assets also increased as a
result of intragroup transfers to Henkel AG & Co. KGaA.
Substantial capital expenditures on property, plant and equipment in fiscal 2024 related to the expansion of
the fully automated warehouse center for consumer goods at the Düsseldorf site and numerous replacement
and expansion investments.
Current assets increased year on year in 2024 from 2,378 million euros to 3,823 million euros, due mainly to
higher short-term time deposits and securities as of the reporting date.
The assets arising from the overfunding of pension obligations were 2 million euros higher year on year at
12 million euros and essentially reflect the netting of the partial retirement obligations and associated plan
assets.
Equity increased from 6,624 million euros to 7,367 million euros, due to the higher net income for the year.
The equity ratio increased by 5.1 percentage points to 42.0 percent.
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Provisions decreased by 19 million euros to 1,016 million euros, mainly as a result of lower provisions for
sales deductions. The decrease was partially offset by higher tax provisions and higher provisions for pensions.
For details of issued capital and treasury stock, please refer to the disclosures in the notes to the statutory
financial statements of Henkel AG & Co. KGaA.
Year on year, liabilities and deferred charges decreased overall in 2024 by 1,152 million euros to 9,093 mil-
lion euros, as a result, among other things, of lower financial liabilities to affiliated companies following the
merger of a domestic subsidiary. Financial liabilities to affiliated companies are also affected by the cash
pool management function performed by Henkel AG & Co. KGaA within the Henkel Group. The use of cash
pools allows largely centralized management of the Group’s liquidity, thus facilitating a high degree of
financial flexibility.
As of the reporting date, Henkel AG & Co. KGaA had six bonds on its books with a total volume of 1,864 mil-
lion euros. These include one British pound-denominated bond with a total nominal volume of 350 million
British pounds, two waste reduction bonds with a nominal volume of 70 million US dollars and 25 million euros
respectively, and three sustainability-linked bonds representing a nominal volume of 1,150 million euros and
250 million US dollars.
For an overview of the financing and capital management of Henkel AG & Co. KGaA, please refer to the
information about the Henkel Group on pages 145 and 146.
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Risks and opportunities
The business performance of Henkel AG & Co. KGaA is essentially subject to the same risks and opportunities
as that of the Henkel Group. With respect to the risks affecting its subsidiaries, Henkel AG & Co. KGaA is
generally exposed in proportion to its shareholding in each case.
Due to the different accounting and measurement methods for pension obligations under the German
Commercial Code [HGB] and IFRS, the conclusion drawn from the risk assessment for the annual financial
statements of Henkel AG & Co. KGaA differs from that of the Group. The Group risk assessment refers to the
effect on equity whereas we see a risk for the income statement. We assess the potential financial impact of
this risk for Henkel AG & Co. KGaA as “high.”
Additional information regarding risks and opportunities and the internal control and risk management
system can be found on the following pages 175 to 202.
Forecast
The performance of Henkel AG & Co. KGaA in its function as an operating holding company is influenced
primarily by the development and dividend distributions of the companies in which it has shareholdings.
Based on the performance of the operational business units, we expect sales to remain flat or increase
slightly in 2025. Nevertheless, we expect a decline in operating profit due to this year’s one-time effect
arising from the merger of a domestic subsidiary.
The performance for the Group also impacts Henkel AG & Co. KGaA through dividend payments from
subsidiaries. For fiscal 2025, we expect an increase in the financial result due to higher income from investments,
which will partially offset the decline in the operating profit. Overall, we expect a stable unappropriated
profit, which will enable our shareholders to participate to a reasonable extent in the Group’s net income,
with retained earnings also available for utilization if necessary.
The forecast for the Henkel Group can be found on pages 203 to 206.
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RISKS AND OPPORTUNITIES
REPORT
Risks and opportunities
In the course of its business activities as a globally operating company, Henkel is exposed to a large number
of internal and external developments and events that are inextricably linked to entrepreneurial activity and
that can influence the achievement of our targets to a significant degree. We deploy an array of effective
monitoring and control systems aligned to identifying risks at an early stage, evaluating the exposure, and
introducing effective countermeasures.
Entrepreneurial activity also involves identifying and exploiting opportunities as means of securing and
extending the Company’s competitiveness. The reporting aspect of our risk management system, however,
does not encompass entrepreneurial opportunities. Early and regular identification, analysis and exploitation
of opportunities are performed at the Group level and within the individual business units. This is a funda-
mental component of our strategy. We perform in-depth analysis of the markets and our competitors, and
study the relevant cost variables and key success factors.
Risk management system
Our risk management system incorporates all organizational rules and measures for identifying, assessing,
managing and communicating risks, including system monitoring. The risk management system at Henkel
is integrated into the comprehensive planning, controlling, and reporting systems used in the subsidiaries, in
the business units, and at Group level. Furthermore, within the corporate governance framework, our internal
control and compliance management systems support our risk management capability. The interaction
between the individual governance systems at Henkel and our assessment of the appropriateness and effec-
tiveness of the risk management system and the internal control system are discussed in the corporate
governance statement on pages 60 to 65.
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Within our risk strategy framework, the assumption of calculated risk is an intrinsic part of our business.
However, risks that endanger the existence of the Company must be avoided. When it is not possible to
avoid these critical risks, they must be reduced or transferred, for example through insurance. Risks are
controlled and monitored at the level of the subsidiaries, the business units, and the Group. Risk management
is thus performed with a holistic, integrative approach to the systematic handling of risks. The Group-wide
risk management process also includes relevant environmental and social risks. Our risk management system
is continuously developed and adjusted to changing requirements.
Our Corporate Audit function regularly reviews the quality and efficiency of our risk management system.
During its audit of the annual financial statements for 2024, in compliance with Section 317 (4) German
Commercial Code [HGB], the auditor examined whether the Management Board had put in place adequate
measures as required under Section 91 (2) Stock Corporation Act [AktG], particularly with regard to estab-
lishing a monitoring system, and whether said monitoring system was suitable in all material respects for
identifying at an early point in time and with reasonable assurance any developments that might jeopardize
the continued existence of the Company as a going concern.
Risk reporting procedures
The risk reporting system encompasses the systematic identification, evaluation, documentation and com-
munication of risks and opportunities. We have defined the principles, processes and responsibilities relating
to risk management in a corporate standard that is binding on the Henkel Group. With the continuous
development of our corporate standards and systems, we take into account updated findings. In 2024, we
focused in particular on the opportunities and risks arising from the double materiality assessment under
the Corporate Sustainability Reporting Directive (CSRD).
We understand short-term risks as potential future developments or events that could lead to negative
deviations from our earnings guidance. As a rule, we estimate risks for the one-year forecast period. Risks
with a probability of occurrence of over 50 percent are taken into account in our guidance and short-term
planning. Risk reports therefore include risks that are not included in – or which extend beyond – short-term
planning. The annual short-term risk reporting process begins with identifying material risks using checklists
based on defined risk categories. We evaluate the risks according to the probability of occurrence and
potential loss after effective countermeasures (net), and collect additional information about the measures.
The risks also include tail event risks where the likelihood of occurrence is judged to be very low but which
could potentially cause huge damage. The short-term risk reporting process is supported by software which
ensures transparent communication throughout the entire Group. The first step entails determining gross
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risk to the extent that this is possible. We then calculate the net risk, taking countermeasures into account.
Initially, risks are compiled on a decentralized basis at regional level by regional coordinators. The risks
compiled at this stage include risks identified at country level. The risks collated regionally and at country
level are then analyzed by experts in the business units and corporate functions. In particular areas such as
Group Treasury, risks are determined with the support of sensitivity analyses including value-at-risk (VaR)
computations. Risk analyses are then prepared for the respective executive committees of the business units
and corporate functions, and finally assigned to an area-specific risk inventory. For the Henkel Group, we
then aggregate the risks on the inventory using Monte Carlo simulation. For the purpose of determining
resilience, we compare the VaR with our risk-bearing capacity.
To supplement our short-term risk reporting process, we conduct strategic risk analysis for long-term risks
with an analysis period of up to ten years. We understand long-term risks as possible future developments
or events outside the forecasting period of one year which – separately or in combination – could potentially
jeopardize the continued existence of the Company as a going concern. Once a year, long-term risks are
identified, subjected to qualitative assessment, and reviewed by selected in-house experts. The risks are then
analyzed as a whole and assessed against our long-term risk-bearing capacity, keeping in mind the risk
environment that is specific to Henkel.
The risk situation is subsequently reported to our Compliance & Risk Committee, the Management Board
and the various oversight bodies. Material unforeseen changes are reported immediately to the CFO and the
Compliance & Risk Committee. Corporate Accounting is responsible for coordinating the overall risk reporting
process and analyzing the inventoried exposures.
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Major risk categories
Short- and long-term risks are grouped by influencing factors, based on strategic analysis methods such as
PESTEL analysis or Porter’s Five Forces model. A distinction is made between (geo-)political, (macro-)economic,
social, technological, environmental, legal, and business-/industry-specific risks. As macroeconomic risks impact
both our business-/industry-specific risks and our financial risks, we divide these influencing factors into two
different risk categories. Long-term risks are compiled separately from the short-term risks and subjected to
qualitative assessment. Short-term risks affecting our one-year forecast period are recorded and quantitatively
assessed as part of the short-term risk reporting process, based on the following evaluation categories.
Classification of short-term risks in ascending order
Probability
Very low
< 10%
Low
≥ 10% to < 25%
Medium
≥ 25% to < 50%
High
≥ 50%
Potential financial impact
Low
≥ 1 to < 75 million euros
Medium
≥ 75 to < 150 million euros
High
≥ 150 to < 500 million euros
Significant
≥ 500 million euros
Short-term risks are presented from a net perspective, i.e. with their respective mitigation measures taken
into account.
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Overview of major risk categories and quantitative evaluation of short-term risks
Risk category
Probability
Potential financial impact
Geopolitical risks
(loss of assets)
Low
Significant
Business-/industry-specific risks
Procurement market risks
Low
Significant
Production risks
Low
Significant
Sales and market risks
Medium
Significant
Financial risks
Credit risks
Very low
Significant
Liquidity risks
Very low
Low
Currency risks
Low
High
Interest rate risks
Medium
Low
Risks from pension obligations
(impact on equity)
Medium
High
Social risks
Personnel risks
Very low
Low
Risks in connection with the Company’s
reputation and its brands
Very low
Medium
Technological risks
(IT and cyber risks)
Low
Significant
Environmental risks
(environment, safety and health risks)
Low
Significant
Legal and regulatory risks
Very low
Significant
In the following presentation of the risk categories, long-term risks are dealt with separately where they give
rise to additional relevant insights.
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Geopolitical risks
Description of risk: (Geo-)political risks include all risks to which Henkel is exposed in the course of its
global business operations in the respective sales and procurement markets and which arise from political
influencing factors, such as trade restrictions, measures to nationalize or expropriate assets, bans on capital
transfers, defaults on trade accounts receivable from state-owned institutions, war, terrorist attacks, and
other upheavals.
In the short-term forecast period, Henkel as a globally operating Group is exposed to the risk of major political
incidents in certain countries or regions resulting in a loss of assets.
Long-term risks arise, in particular, when trade restrictions increase and a trend toward deglobalization and
potential block formation becomes visible, in connection with potential instabilities within the European
Union (EU), and if geopolitical tensions increase or regional conflicts grow – in Africa/Middle East, Asia, or
Eastern Europe for example. These risks could have a substantial impact on our sales and procurement
markets and are therefore classified as business-/industry-specific risks.
Measures: We closely monitor the countries concerned, taking external ratings into account, and ensure
risk-optimized funding and the repatriation of liquidity that is not needed at present. Planned investments
are also analyzed with regard to potential political risks, and appropriate requirements specified for the
return on investment. If a major political incident occurs, early and targeted risk analysis is performed and
potential mitigation measures are put in place.
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Business-/industry-specific risks (including macroeconomic risks)
Business-/industry-specific risks include all risks arising for Henkel from factors such as the arrival of new
market participants or developments on the sales and procurement markets. Here we make a distinction
between procurement market risks, production risks and sales and market risks. Macroeconomic risks – such
as global economic and industry-specific developments – influence these risks to a substantial extent and are
therefore classified under this risk category unless they tend to have a greater impact on our financial risks.
Procurement market risks
Description of risk: We expect prices for direct materials in our procurement markets to increase by a low
to mid-single-digit percentage in 2025 compared to the annualized average in 2024 as a result of ongoing
uncertainties surrounding future global economic and geopolitical developments. Although economic devel-
opment is expected to be weak in Europe and particularly in China, partially offset by moderate growth in
the USA, we expect operational costs to be higher overall due to higher labor costs and persistently volatile
energy prices. These higher costs will have a particularly negative impact on the competitiveness of Europe
compared to the rest of the world. The ongoing war in Ukraine and the Middle East conflict are expected to
have a long-term impact on economic and financial stability in Europe. Given that the higher cost of energy
has already been priced into the first stages of the value chain, a higher risk is expected in respect of the
raw materials, packaging materials and goods we purchase. Prices differ among the various regional markets,
with Europe currently being exposed to additional price and supply risks arising from geopolitical uncertainties
due to its proximity to the locations concerned.
Additional price and supply risks exist due to possible demand- or production-related shortages in the
procurement markets, and these may also have long-term impacts. The development of new business
models may also produce shortages in the supply chain over the long term.
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Measures: If any supply shortages do occur, established interdisciplinary crisis management processes are
triggered to ensure a high degree of supply reliability to our customers. The measures taken also include
active supplier portfolio management through our globally engaged, cross-divisional sourcing capability,
together with strategies aimed at securing price and volume both through contracts and – to the extent
appropriate and possible – through financial hedging instruments. In order to minimize the risk of supplier
default, we perform detailed risk assessments of suppliers to determine their financial stability, and stipulate
supplier default clauses. With the aid of an external, independent financial services provider, we continuously
monitor important suppliers of which the financial situation is regarded as critical. If a high risk of supplier
default is identified, we systematically prepare back-up plans in order to ensure uninterrupted supply. Further-
more, we work in interdisciplinary teams within Research & Development, Supply Chain Management and
Purchasing on devising alternative formulations and packaging forms so as to be able to respond to un-
foreseen fluctuations in raw material prices. Supplier diversification also represents a key element in our risk
management to prevent dependence on individual suppliers and ensure our ability to source at all times the
goods and services we require. Finally, close collaboration with our strategic suppliers plays an exceptionally
important role. The basis for our risk management approach is provided by a comprehensive procurement
information system aimed at ensuring permanent transparency with respect to our purchasing volumes.
Over the long term, we continually adapt our structures in response to developments on the procurement
markets and the requirements of new business models, as well as in order to avoid shortages and bottlenecks
along our supply chains.
Production risks
Description of risk: Henkel faces production risks in the event of low capacity utilization due to volume
decreases and unplanned business interruptions, especially at our single-source sites. Risks from unscheduled
disruptions to operations could arise in the wake of cyber attacks on IT systems, escalating impacts of climate
change, energy shortages or a regionally specific shortage of labor. In light of regional conflicts and efforts
aimed at reducing economic ties between different economic areas, risks may still arise in the shape of
disruptions to our supply chains, regional and national restrictions on production workflows and a reduced
availability of labor. The risk of insolvency among key suppliers could also impair our production processes
in the short term. The development of new business models may also produce shortages and bottlenecks in the
production chains over the long term.
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Measures: We can offset the negative effects of possible production outages through flexible production
control and, where economically viable, additionally through insurance policies. Production risks are minimized
by ensuring high employee qualification, clearly defined safety and hygiene standards, and regular plant and
equipment maintenance. Capital expenditure decisions on property, plant and equipment are made in accord-
ance with defined, differentiated responsibility procedures and approval processes. They incorporate all
relevant specialist functions and are regulated in an internal corporate standard. Investments are analyzed
in advance on the basis of detailed risk aspects. Further audits accompanying projects provide the foundation
for project management and risk reduction. In terms of production, too, we continually adapt our structures
in response to the requirements of new business models, as well as to avoid shortages.
Sales and market risks
Description of risk: We are exposed to further sales and market risks emanating from the uncertainties of
the current geopolitical and economic environment. Geopolitical risks have heightened, especially as a result
of the conflicts in Ukraine and the Middle East. The impacts of global trade conflicts are also jeopardizing
the global economic climate. Supply bottlenecks and temporary failures of critical infrastructure also represent
the potential fallout from the current geopolitical environment. Risks arise for our business especially in
connection with any long-term adverse effect on economic development. A slowdown in production at our
industrial customers could lead to less demand for our solutions. In the consumer goods businesses, declining
volumes in the wake of weaker demand – as a result of inflation dampening purchasing power, for example –
could pose a risk for our sales. A further significant risk is posed by an increasingly competitive environment,
as this could result in a further increase in price and promotional pressures in the consumer goods sector.
As consolidation in the retail sector continues and private labels occupy a growing share of the market,
crowding-out competition in the consumer goods sector could further intensify. Moreover, the risk of product
substitution could, in principle, affect all business areas. Technological change associated with digitalization
may involve risks for the success of our products and processes. Acquisitions, and the integration of same,
could also pose risks for our businesses. During the integration of our consumer businesses, temporary
delays in the performance of necessary structural adjustments and process or system alignments may occur
in places.
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The risks described above are also relevant when analyzing long-term trends. Long-term economic devel-
opments, in particular – such as recessions in China or the USA or within the EU – could impact our future
business performance. New business models, new competitors or changing demand behavior could also
pose risks for our business.
Measures: Our focus is on continuously monitoring the market environment to enable flexible adjustment
of our portfolio and our cost structures to dynamic trends. In addition, we concentrate on strengthening our
brands (see separate risk description on page 190) and on consistently driving the development of further
innovations. We consider innovative products and processes to be a significant success factor for our Company,
enabling us to differentiate ourselves from the competition. We also pursue specific marketing and sales
initiatives, for example advertising and promotional activities. Another central aspect is the advancement of
digitalization, for example through the targeted marketing of our products via a dedicated e-commerce
platform for our industrial customers. In addition, we have the capability to react quickly to potential sales
declines through flexible production control. We respond to the emergence of new business models or new
competitors, or changing demand behavior by taking strategic measures such as adapting our structures
and portfolio, as well as through acquisitions and divestments. We mitigate the risks associated with acquisi-
tions and integration by performing economic feasibility analyses and ensuring comprehensive project and
integration management.
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Financial risks (macroeconomic influence)
Credit risks
Description of risk: Credit risk is the risk of a debtor failing to meet interest and redemption payment
obligations in full and on time. Henkel Group is exposed in particular to the risk of default by its customers
in the course of its operating activities and to the risk of non-performance by a contracting party in the
context of financial investments. Furthermore, depending on economic developments, defaults may become
more frequent, particularly on trade accounts receivable.
Measures: In order to reduce the credit risk resulting from the operating activities of the Henkel Group, the
default risks that our customers might represent are permanently monitored by our credit risk management
team, which operates on the basis of a globally valid Customer Credit Management Standard. In addition
to minimizing losses on receivables through the application of fixed credit limits, use of customer creditwor-
thiness analyses, risk classifications, and continuous monitoring of risks associated with the receivables
concerned, we also implement hedging measures both globally and selectively on a country- and customer-
specific basis. Risk-mitigating instruments include credit insurance cover such as global excess-of-loss
policies, letters of credit for the export business, plus for example sureties, guarantees and cover notes.
Default risks from financial investments are mitigated by selecting counterparties with good credit ratings
and by capping investment amounts. Credit ratings and investment limits are continuously monitored so as
to enable intervention in the event that fixed thresholds for ratings and credit default swaps (CDS) are ex-
ceeded. Our financial investments are broadly diversified across various counterparties and various financial
assets. In addition, netting arrangements are in place to offset bilateral receivables and obligations, and
collateral agreements are entered into with key banking partners.
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Liquidity risks
Description of risk: Liquidity risk is defined as the risk of an entity failing to meet its financial obligations at
any given time.
Measures: We mitigate this risk through our long-term management strategy of using financing instruments
in the form of bonds issued with variously staggered terms and in different currencies. Supported by our
existing debt issuance program and our Sustainable Finance Framework for issuing sustainable financing
instruments, this is also possible on a short-term and flexible basis. Our credit rating is regularly assessed by
the rating agencies S&P, Moody’s and Scope Ratings. We intend to maintain our ratings within a “single A”
target corridor. We predominantly invest cash in financial assets traded in a liquid market in order to ensure
that they can be sold at any time to receive liquid funds or to manage liquidity in the short term. We also
use our US dollar and euro commercial paper programs for short-term liquidity management. In order to
ensure the financial flexibility of Henkel at any time, the liquidity within the Group is largely centralized in
cash pools and managed across the Group using a liquidity reserve approach. In addition, the Henkel Group
has at its disposal confirmed credit lines.
Currency risks
Description of risk: Because of the global nature of our business, we are exposed to two types of currency
risk. Transaction risks arise from possible exchange rate fluctuations causing changes in the value of future
foreign currency cash flows. Translation risks arise from changes caused by foreign exchange fluctuations to
items on the statement of financial position and the income statement of a subsidiary, and the effect these
changes have on the translation of individual company financial statements into Group currency. We anticipate
continued high volatility in the currency markets in 2025.
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Measures: Transaction risks arising from our operating business are partially avoided by the fact that we
manufacture our products in those countries in which they are sold. Residual transaction risks on the operating
side are proactively managed by Group Treasury. This includes the overall assessment of the currency risk
and the development of appropriate hedging strategies. The objective of currency hedging is to ensure
protection from future adverse fluctuations in exchange rates. Because we limit our potential losses, any
negative impact on profits is restricted. The transaction risk from significant operating receivables and liabilities
recognized in the financial statements and from financial receivables and liabilities is hedged as far as possible.
In order to manage these risks, we primarily utilize currency forwards and cross-currency interest rate swaps.
The risks arising from the translation of the earnings results of subsidiaries in foreign currencies and from
net investments in foreign operations are only hedged in exceptional cases.
Interest rate risks
Description of risk: Interest rate risk encompasses all potentially negative influences on profits, equity or
cash flow in current or future reporting periods arising from changes in interest rates. The financing and cash
investment activities of the Henkel Group mainly take place on international money and capital markets. The
resultant financial liabilities and cash deposits are exposed to the risk of changing interest rates.
Measures: The aim of our centralized interest rate management is to reduce the risk by choosing fixed or
floating interest rate contracts and by using interest rate derivatives. Henkel’s interest management strategy
is essentially aligned to optimizing the net interest result for the Group. The decisions made in interest
management relate to the bonds, liabilities to banks and commercial paper put in place to secure Group
liquidity, the securities and time deposits used for cash investments, and other interest-bearing financial
instruments. Depending on forecasts with respect to interest rate developments, Henkel issues fixed- or
floating-rate notes or enters into derivative financial instruments, primarily interest rate swaps, in order to
optimize the interest rate lock-down structure.
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Risks from pension obligations
Description of risk: Our pension obligations are exposed to various market risks. The risks relate primarily
to changes in market interest rates, inflation, and life expectancy. The risks to which the plan assets are
exposed are general market price risks.
Measures: We counteract these risks by managing the funding level and the structure of pension commit-
ments. Our internal pension risk management function monitors the risks of all pension plans Group-wide in
compliance with local legal regulations. As part of the monitoring process, guidelines on the control and
management of risks are adopted and continuously developed; these guidelines mainly govern funding
levels, portfolio structure and actuarial assumptions. We also take into account sustainability criteria. The funds
earmarked for covering pension obligations are invested in line with an asset-liability study based on the
respective expected cash flows of the country-specific pension obligations. The objective of the financing
strategy within the Group is to ensure that plan assets cover 90 to 100 percent of the present value of the
funded pension obligations.
Social risks
Social risks are risks arising from population trends or changes in lifestyles that are reflected, for example,
in competition for labor, changes in consumer behavior or increasing pressure on healthcare and pension
systems. They also include reputational risks.
Personnel risks
Description of risk: The motivation and the qualification of our employees are key drivers of Henkel’s business
success. Therefore, it is strategically important to attract highly qualified professionals and executives and
ensure they stay with the Company. When it comes to selecting and recruiting talent, we are facing increased
global competition for the best candidates – especially over the long term – and we are noticing the effects of
demographic change in many of our markets. These developments expose us to the risk of losing valuable
employees or of being unable to recruit relevant qualified professionals and executives. Over the long term,
these risks could adversely affect our ability to compete and thus business performance at Henkel.
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Measures: We combat the risk of losing valuable employees through specifically devised personnel devel-
opment programs and incentive systems. Supporting this is an established, thorough annual review process
from which we derive individually tailored and future-viable qualification and upskilling programs, as well
as performance-related remuneration systems. The Leadership Commitments form the focal point of our
efforts to advance our leadership culture and to drive our cultural change.
In addition to an appreciative corporate culture, the principles of diversity, equity and inclusion (DEI) are
firmly anchored in Henkel’s corporate strategy. Striving for enhanced gender diversity is a key element in a
holistic DEI strategy that also incorporates further dimensions such as internationality and ethnicity, sexual
orientation, people with disability and inter-generational collaboration. Henkel is striving to make significant
progress in all these dimensions. The Company has established a Group-wide DEI network to anchor and
implement these efforts in all business units and regions.
Further areas of our personnel management focus include a global health management system and support
for flexible work models to ensure better work-life flexibility. We create a positive and supportive work
environment where our employees feel appreciated and respected. All these aspects are united in our Smart
Work approach.
Henkel reduces the risk of not being able to recruit qualified professionals and executives by promoting a
strong and authentic employer brand, partnering with universities and global student organizations, and
through enhanced, target-oriented communication and focus on promoting young talent and specialized
development programs.
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Risks in connection with the Company’s reputation and its brands
Description of risk: As a globally active corporation, Henkel is exposed to potential damage to the reputation
of its corporate brand – Henkel – or that of our product brands, particularly in the consumer goods sector,
in the event of negative reports in the media, including social media. These could lead to a negative impact
on sales or the pace of growth.
Measures: We minimize these risks through the measures described under legal and regulatory risks (see
pages 194 to 197). On the one hand, this is to ensure that our production facilities and products remain safe;
on the other, our active communications work strengthens the reputation of the corporate brand and our
product brands. These measures are supported by a global communication network and international and
local crisis management systems with regular training sessions.
Technological risks (IT and cyber risks)
Technological risks arise, in particular, from increasing digitalization.
Description of risk: Information technology (IT) has strategic significance for Henkel. Our business processes
rely to a great extent on internal and external IT services, applications, networks, and infrastructure systems.
The failure or disruption of key IT services and the manipulation or loss of data – as a result of unauthorized
access, for example, constitute material risks for Henkel. We analyze different potential in-house and external
perpetrators and types of threat, such as intent, error or natural phenomena. The failure or disruption of
important IT services can impair critical business processes. The loss of confidential data, for example formu-
lations, customer information or price lists, could put us at a disadvantage with our competitors or give rise
to legal consequences. Henkel’s reputation could also be damaged by such loss.
Measures: The technical and organizational safeguards for assuring information and cyber security at Henkel
are based on the international standards ISO 27001 and 27002. Major components include the classification
of information and IT applications with respect to confidentiality, availability, integrity and data protection
requirements, as well as commensurate measures for mitigating risk. In addition, Henkel has put technical
and organizational measures in place to prevent, discover and defeat cyber attacks. Henkel maintains regular
contact with other major corporations, associations and specialized service providers in order to enable the
early detection of threats and implementation of effective countermeasures.
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Our critical business processes operate through redundantly configured systems designed for high availability.
Our data backup procedures reflect best engineering practice. We regularly review our restore and disaster
recovery processes.
Access to buildings and areas containing IT systems, as well as user authorizations for our information systems,
are limited to the minimum level necessary. For critical business processes, the required segregation of duties
is enforced by technological means.
Our IT services are protected against unauthorized external access and are consistently kept up to date. We
develop our systems using proven project management and program modification procedures.
We instruct and train our employees in the proper and secure use and operation of information systems as
part of their regular duties. We require our IT service providers to maintain a comparable level of IT and
cyber security.
The implementation of our security measures is continually reviewed by our Corporate Audit function, other
internal departments, and independent third parties.
Environmental risks (environmental, safety and health risks)
Description of risk: Henkel is a global manufacturing corporation and, through its operating activities, is
therefore exposed to risks pertaining to the environment, safety and health, manifesting in the form of
personal injury, physical damage to goods, and reputational damage. For example, soil contamination and
the associated remediation expense, as well as leakage or other technical failures, could give rise to direct
costs for the Company. Furthermore, indirect costs such as fines, claims for compensation or reputational
damage may also be incurred. We assign the highest priority to the health and safety of our customers,
consumers and employees.
Long-term risks arise in particular from accelerated climate change, water scarcity and restrictions on dis-
posable and, in particular, non-recyclable plastic packaging and product ingredients.
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Accelerating climate change could have negative impacts on a wide range of countries, particularly through
increases in the frequency and severity of extreme weather events. In addition to physical risks, this develop-
ment may also give rise to socioeconomic, so-called “transition” risks, for example as a result of political
measures such as regulations and taxes.
Population and economic growth, and also, potentially, climate change impacts, can exacerbate water
scarcity in various regions. An acute, local water shortage or legal restrictions on the use of water can have
a direct impact on the activities of our suppliers, our own operations, and our customers and consumers.
Regulations to protect water resources, as well as changes in customer and consumer expectations, could
have an impact on our raw material and product portfolio. Restrictions on disposable and, in particular,
non-recyclable plastic packaging, as well as increasing requirements for distributors and manufacturers of
plastic packaging, for example in the context of “extended producer responsibility,” and also those governing
the use of recyclate and the recyclability of packaging, could have an impact on the marketability and profit-
ability of the current product and packaging portfolio.
For further information on our strategies and measures and relevant metrics and indicators, please refer to
our Sustainability Report 2024.
Measures: We take specific measures to minimize these risks (see the measures described under legal and
regulatory risks on pages 194 to 197), and organize appropriate auditing, advisory and training activities.
We continually update these preventive measures in order to properly safeguard our assets and reputation.
We ensure compliance with high technical standards, rules of conduct, and relevant statutory requirements
as a further means of preserving our assets, and make sure that our corporate values – one of which is sus-
tainability – are put into practice. We have established comprehensive monitoring systems and a holistic,
global crisis management system to manage extreme weather incidents or other crises, with defined pro-
tection strategies in place at all our sites and for all employees. Protecting the physical and mental health
of our employees is integral to securing our workflows. We achieve high uptake through extensive commu-
nication, information and support programs. Targeted measures to protect and promote health are imple-
mented on the basis of employee surveys.
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We reduce potential long-term risks with the help of our comprehensive sustainability strategy, medium-
and long-term targets, and the associated strategies and actions. For example, Henkel has established a
net-zero plan with much broader targets for reducing emissions along the value chain. To achieve net zero,
we have set targets for operational greenhouse gas emissions (Scope 1 and 2) and for indirect emissions
occurring both up- and downstream in the value chain (Scope 3) for 2030 and 2045. These new targets have
also been validated by the Science Based Targets initiative (SBTi), a climate action organization that supports
companies in setting targets to reduce greenhouse gas emissions in line with the Paris Climate Agreement. To
reduce direct emissions at our sites, we will continue to improve our energy efficiency and expand the use of
energy from renewable sources to cover the remaining energy demand. In order to bring the evaluation of our
CO2 emissions in the upstream supply chain to the next level, we have launched a comprehensive engagement
program for our worldwide suppliers called “Climate Connect.” The program aims to advance decarbonization
along the value chain of both business units through the collection of emissions data. We are also working
to further increase the proportion of ingredients based on low-emission, renewable or recycled raw materials
in our consumer goods and adhesive technologies. With our sustainable packaging strategy, we are contrib-
uting to emission abatement by minimizing the amount of packaging material and increasing the share of
low-emission, recycled and renewable packaging alternatives. Where relevant, weather risks and geohazards
are monitored separately and countermeasures are proactively put in place. Clear specifications in our
standards for safety, health and the environment, as well as comprehensive programs in the business units,
serve to improve the environmental compatibility of our products. With a comprehensive packaging strategy,
we promote the circular economy in particular by improving the recyclability of our packaging, increasing
the use of recycled plastics and developing new packaging concepts. By focusing on the central challenges
of sustainable development in our research and product development, we are creating an important founda-
tion for the future viability of our Company.
For a more detailed discussion of our strategies and measures, please refer to our Sustainability Report 2024.
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Legal and regulatory risks
Description of risk: As a globally active corporation, we are exposed, in the course of our ordinary business
activities, to a range of risks relating to litigations and other actions, including government agency proceedings
in which we are currently involved or may become involved in the future. These risks arise, in particular, in
the fields of product liability, product deficiency, competition and cartel law, infringement of proprietary rights,
data protection, artificial intelligence, information security, patent law, tax law, environmental protection and
legacy remediation. We also have a portfolio of industrial property rights, patents and trademarks that can
be the target of attacks and infringements. We cannot exclude the likelihood of negative rulings on current
litigations and further litigations being initiated in the future. Even in the case of completed proceedings, it
cannot be ruled out that we will still be confronted with claims by third parties on the basis of the same facts
due to long or, in some cases, absent statutory limitation periods. In addition, uncertainty in the legal envi-
ronment in some regions could cause us to lose our rights with or without adequate compensation, or limit
our ability to assert our rights.
As a corporation with global operations, we are particularly exposed to various environmental, health or product-/
safety-related regulations, laws and guidelines that affect our business activities and processes. Our business
is subject to various national rules and regulations and – within the EU – increasingly to harmonized laws
applicable throughout the EU. These regulations change constantly due to political requirements and can also
be tightened. The risk in these cases is that our products do not (yet) comply with these regulations and as
a result are no longer marketable, or these regulations are not yet (adequately) reflected in the relevant inter-
nal systems and processes, which may impair business activities or necessitate manual remedial measures. In
addition, some of our activities are subject to rules and regulations derived from approvals, licenses, certifi-
cates or permits. Our manufacturing operations are bound by rules and regulations with respect to the regis-
tration, evaluation, usage, storage, transportation and handling of certain substances and also in relation to
emissions, wastewater, effluent and other waste. The construction and operation of production facilities and
other plant and infrastructure are governed by framework rules and regulations, including those relating to
legacy remediation. Product-specific regulations of relevance to us relate in particular to ingredients and input
materials, safety in manufacturing, in the handling of products and their contents, and in the packaging
and marketing of these items. The control mechanisms include statutory material-related regulations, usage
prohibitions or restrictions, procedural requirements (test and inspection, identification marking, provision
of warning labels, etc.), and product liability law. Violation of such regulations may lead to legal proceedings
or compromise our future business activities. Consequently, major losses may also result from litigations and
proceedings that exceed the insurance amounts or are not covered by our insurance policies or provisions.
Potential damage to our reputation is not covered by insurance, nor is there any guarantee that Henkel will
acquire adequate insurance cover at economically reasonable terms and conditions in future.
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Amendments to the aforementioned regulations and further changes to the regulatory environment in our
relevant markets could influence our business activities or require adjustment of our operations. Such
changes might involve import and export controls, customs regulations – particularly changes planned by
the future US government in that regard –, other trade regulations, including sanctions, or pricing and foreign
exchange restrictions. In particular, the uncertain geopolitical situation may lead to unpredictable and po-
tentially contradictory extraterritorial regulations, restrictions and sanctions, with the risk that it is then
difficult to fulfill all relevant legal requirements at the same time for certain transactions. In addition, complex
multi-disciplinary regulations may vary from country to country. This harbors the risk that a global standard
cannot be implemented effectively and consistently, potentially rendering it necessary to implement multiple
country-specific or regional standards. Although we monitor the political and regulatory situation in all our
key markets so that we can promptly adapt potential problem areas and our business activities and processes
to changes in conditions, amendments to regulations, laws and policies can have a negative impact on our
business activities and processes and thus adversely affect our net assets, financial position and results of
operations.
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There is also a risk that our corporate values and our ethical, compliance and sustainability requirements are
not adequately mirrored by our contractual partners. Even if corresponding requirements exist for our partners
in the supply chain, violations that may lead to claims by third parties or damage our reputation cannot be
ruled out.
Equally, as a globally active corporation, we maintain business relations with customers in countries that are
subject to export control legislation, embargoes, economic sanctions, exclusion policies or other forms of
trade restriction. Changes to these regulations, new or extended sanctions, or corresponding initiatives by
institutional investors or non-governmental organizations may result in restrictions being imposed on our
business activities in these countries or, indirectly, in other countries, or may prevent us from acquiring or
keeping customers and suppliers.
We see long-term risks, for example, in tax law developments and new requirements arising from data
security-related legislation.
Measures: Our internal standards, guidelines, codes of conduct, and training measures are geared to ensuring
compliance with the aforementioned statutory requirements and, for example, safeguarding our manufacturing
facilities and products. These precepts have also been incorporated into our management systems and are
regularly reviewed. This includes the early monitoring and evaluation of relevant statutory and regulatory
requirements and changes.
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Ensuring compliance with laws and regulations is an integral component of our business processes. This
includes the early monitoring and evaluation of relevant statutory and regulatory requirements and changes.
Henkel has further established a Group-wide compliance organization with locally and regionally responsible
compliance officers led by a globally responsible General Counsel & Chief Compliance Officer, which carries
out appropriate risk analyses and risk-mitigating measures, such as training courses, or initiates internal audits.
Current proceedings and pending litigations are continuously recorded and monitored in a separate reporting
system. Our Corporate Legal department maintains constant contact with local counsel for this purpose.
Regular reports are submitted to the Management Board and oversight bodies. We conduct our own analysis
and assessments – or obtain external legal opinions, if necessary – to assess risks and determine any need
for provisions. This risk assessment is based predominantly on estimating the probability of occurrence and
bandwidths of the potentially ensuing claims for damages. This risk assessment and potential accrual of
provisions is conducted in collaboration between the business units with operational responsibility and the
legal and finance departments. Appropriate provisions are accrued based on probability of occurrence. For
certain legal risks, we have concluded insurance policies with coverage that we consider to be appropriate
and standard for the industry. However, predicting the outcome of proceedings is fraught with considerable
uncertainty, especially if a claimant is seeking substantial or unspecified damages. In view of this, we are unable
to predict what obligations may arise from such litigations.
With our comprehensive approach to responsible procurement, we already promote sustainable practices
and respect for human rights in our supply chain. A central element of our strategic risk management and
compliance approach is our six-step Responsible Sourcing Process, which is an integral part of our procure-
ment activities and includes pre-checks and risk assessment, review, analysis and continuous improvement
both when we start collaborating with our suppliers and in a recurring cycle.
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Major opportunity categories
Entrepreneurial opportunities are identified and evaluated at Group level and in the individual business units,
and duly incorporated into the strategy and planning processes. We understand the opportunities presented
in the following as potential future developments or events that could lead to a positive deviation from our
guidance. We also assess the probabilities of price-related procurement market and financial opportunities.
Procurement market opportunities
Description of opportunities: Countervailing the procurement market risks listed on pages 181 and 182,
opportunities may also arise in which the influencing factors described in this section develop in a direction
that is advantageous to Henkel, resulting in lower-than-expected prices for direct and indirect materials.
Impact: Very low probability rating, possible significant impact on our earnings guidance.
Sales and market opportunities
Description of opportunities: Additional business opportunities would arise if the uncertain geopolitical
and macroeconomic situation in some regions, or the economic conditions in individual sectors, develop
substantially better than expected.
Impact: The opportunities described could have a medium impact on our earnings guidance.
Financial opportunities
Description of opportunities: Countervailing the currency and interest rate risks indicated under financial
risks, and the risks arising from pension obligations as described on pages 185 to 188, opportunities may
also arise in which the influencing factors described in this section develop in a direction that is advantageous
to Henkel.
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Impact: We classify financial opportunities as follows:
Currency opportunities with a medium probability of a high impact on our earnings guidance
Interest rate opportunities with a medium probability of a low impact on our earnings guidance
Opportunities arising from our pension obligations with a medium probability of a high impact on our
equity
Acquisition opportunities
Description of opportunities: Acquisitions are a key component of our strategy. They allow us to grow
more strongly in promising markets or to gain access to new markets and technologies. In the process, we
reap the benefits of both earnings and cost synergies in most cases.
Impact: Large acquisitions could have a high impact on our earnings guidance.
Research and development opportunities
Description of opportunities: Opportunities arising from our extensive, continuous innovation process are a
key component of our strategy and are already accounted for in our guidance. There are additional opportu-
nities in the event of product introductions that exceed our expectations of market acceptance, and in the
development of exceptional innovations that have not yet been taken into account. They include key areas
of action for sustainable development, such as climate protection and circular economy.
Impact: Innovations arising from future research and development could have a high impact on our earnings
guidance.
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Internal accounting control system
The internal control system represents the entirety of all systematically defined control and monitoring
activities aimed at ensuring the efficacy and efficiency of business processes, appropriate reporting procedures
and compliance with all laws and regulations of relevance for Henkel. Accordingly, it extends beyond the
internal accounting control system (for a discussion of the internal control system, please refer to the corporate
governance statement on pages 60 to 65). The following describes the main features of the internal control
and risk management system in relation to our accounting processes, in accordance with Section 315 (4)
German Commercial Code [HGB]. The internal control system’s function is to implement relevant principles,
procedures and controls so as to ensure the financial statement closing process is regulatory compliant. At
Henkel, the design of the internal control system is aligned to COSO – the internationally acknowledged in-
ternal control framework – and the German audit code IDW PS 982. Within the organization of the internal
control system, the Management Board assumes overall responsibility at Group level. The duly coordinated
subsystems of the internal control system lie within the responsibility of the Corporate Accounting, Control-
ling, Group Treasury, Compliance, and Regional Finance functions. Within these functions, there are a num-
ber of integrated monitoring and control levels. These are assessed by regular and comprehensive effec-
tiveness tests performed by our Corporate Audit function and by our corporate unit Internal Control System.
Of the multifaceted control processes incorporated into the accounting process, several are important to
highlight.
The basis for all our accounting processes is provided by our corporate standard “Accounting,” which
contains detailed accounting and reporting instructions covering all material circumstances, including clear
procedures for inventory valuation or how transfer prices applicable for intragroup transactions should be
determined. This corporate standard is binding on the entire Group and is regularly updated and approved
by the CFO. The local Presidents and Heads of Finance of all consolidated subsidiaries must confirm their
compliance with this corporate standard on an annual basis.
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Further globally binding procedural instructions affecting our accounting practice are contained in our
corporate standards “Treasury” and “Investments.” Through appropriate organizational measures in conjunction
with restrictive access to our information systems, we ensure the segregation of duties in our accounting
systems between transaction entry on the one hand, and checking and approval on the other. Documentation
relating to the operational accounting and closing processes ensures that important tasks – such as the
reconciliation of receivables and payables on the basis of account balance confirmations – are clearly assigned.
Additionally, binding authorization regulations exist governing the approval of contracts, credit notes and
the like, and the principle of dual control is a mandatory requirement for all material transactions. This is also
stipulated in Group-wide corporate standards. To prevent possible data losses and system failures, we regularly
back up our relevant IT systems. Our security concept also includes technical system checks, manual spot
checks by experienced employees, and individually aligned authorizations and access restrictions. The signif-
icant risks for Henkel and the corresponding controls with respect to the regulatory preparation of our annual
and consolidated financial statements are collated in a central documentation pack. This documentation is
reviewed and updated annually by the respective process owners. The established systems are also regularly
reviewed to determine their improvement and optimization potential. We consider these systems to be
appropriate and effective.
The accounting activities for subsidiaries included in the consolidated financial statements are performed
locally by the subsidiary or through a Shared Service Center, taking the aforementioned corporate standards
into account. The individual subsidiaries’ financial statements are transferred to our central consolidation
system and checked at corporate level for correctness. After all consolidation steps have been completed,
the consolidated financial statements are prepared by Corporate Accounting in consultation with the specialist
departments. Preparation of the combined management report is coordinated by Investor Relations in cooper-
ation with each business unit and corporate function. The Management Board then draws up the consolidated
financial statements and the annual financial statements of Henkel AG & Co. KGaA, and the combined
management report for Henkel AG & Co. KGaA and the Group, and subsequently presents these documents
to the Supervisory Board for approval.
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Risks and opportunities in summary
At the time this report was prepared, there were no identifiable risks related to future developments that –
separately or in combination – could endanger the existence either of Henkel AG & Co. KGaA, or a material
subsidiary included in the consolidation, or the Group, as a going concern.
In the short term, we expect moderate growth in global economic output. There is, however, huge uncertainty,
particularly surrounding the war in Ukraine and the Middle East conflict. Although the assessment of some
risks may have changed somewhat, there has been no fundamental change to the overall risk and opportunities
situation. The system of risk categorization adopted by Henkel continues to indicate that the most significant
exposure currently relates to the impact of procurement market, and also sales and market risks and financial
risks, to which we are responding with the countermeasures described above.
Equally, none of the identified long-term risks within the ten-year risk horizon is classified as posing a threat
to the continued existence of Henkel as a going concern. Even in the unlikely event of several of these risks
occurring simultaneously, the Henkel Group’s solid risk profile, geographical and portfolio diversification,
and store of appropriate countermeasures mean that it is not exposed to any risks that could jeopardize its
continued existence as a going concern.
The Management Board remains confident that the earning power of the Group forms a solid foundation for
our future business development and provides the necessary resources to leverage our opportunities.
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FORECAST
Macroeconomic development
The assessment of future global economic development is based on data provided by S&P Global Market
Intelligence.
Overview:
Gross domestic product growth of approximately 2.5 percent
Following the moderate growth momentum over the past fiscal year, growth of approximately 2.5 percent is
again forecasted for global economic output in 2025. Global economic development is likely to continue to
be characterized by elevated inflation rates in the coming year and by persisting geopolitical uncertainties –
not least against the background of the war in Ukraine and the conflict in the Middle East.
Gross domestic product is expected to grow by around 1 percent in Europe. An increase of approximately
2 percent is forecasted for both North America and Latin America. Economic output is expected to expand
by approximately 4.5 percent in the IMEA region and approximately 3.5 percent in the Asia-Pacific region.
Inflation:
Globally declining inflationary pressure
S&P Global Market Intelligence expects global inflation to be approximately 3.5 percent in 2025 – which would
be lower than the previous year (approximately 4.5 percent) but still high on average. Inflation is forecasted
to be approximately 3 percent in Europe and North America. Prices in the IMEA region are expected to increase
by around 10 percent. Inflation is forecasted to be approximately 7 percent in Latin America. In the Asia-Pacific
region, prices are expected to increase by approximately 1.5 percent.
HENKEL ANNUAL REPORT 2024
204
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Direct materials:
Price levels to remain elevated overall
We expect an increase in the low to mid-single-digit percentage range in prices for direct materials (raw
materials, packaging and purchased goods and services) in 2025 compared to the previous year’s average.
Energy and labor costs, among other things, are expected to remain elevated – accompanied by continued
high uncertainty surrounding future global economic and geopolitical developments.
Currencies:
Continued high volatility
We anticipate continued high volatility in the currency markets. On average for 2025, we anticipate a largely
negative trend in the major emerging market currencies of relevance for Henkel compared to 2024. We expect
the US dollar to strengthen versus the euro.
Development by sector
Consumption and retail:
Growth of around 3 percent
S&P Global Market Intelligence forecasts that global private consumption will increase again by around
3 percent in 2025. Private spending is expected to grow by approximately 1.5 percent in Europe and by
approximately 2.5 percent in North America. Private consumption is forecasted to increase by around
5 percent in the IMEA region and by approximately 2 percent in Latin America. Growth of around 3 percent
is expected in the Asia-Pacific region.
Industrial production index:
Increase of approximately 2 percent
S&P Global Market Intelligence expects the industrial production index (IPX) to increase by approximately
2 percent worldwide. Slight growth of approximately 1 percent and 0.5 percent is forecasted for Europe and
North America respectively. An increase of around 4 percent and approximately 3.5 percent is expected in the
IMEA and Asia-Pacific regions respectively. Industrial production is expected to increase by approximately
2 percent in Latin America.
HENKEL ANNUAL REPORT 2024
205
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COMBINED MANAGEMENT
REPORT
CONSOLIDATED FINANCIAL
STATEMENTS
FURTHER INFORMATION
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CONTACTS
FINANCIAL CALENDAR
Outlook for the Henkel Group in 2025
Following moderate growth momentum in 2024 in a persistently – although easing – inflationary environment,
moderate growth in global economic output is again anticipated for 2025. This assumes a moderate increase
in both industrial demand and consumer demand in key areas of the consumer goods business for Henkel.
Furthermore, based on current estimates, global inflation is expected to continue to abate in fiscal 2025
compared to previous years, with interest rates also expected to fall.
We expect prices for direct materials to increase by a low to mid-single-digit percentage range versus the
annual average for 2024. We also expect energy and labor costs to remain at elevated levels. We will counteract
these headwinds in both business units through innovations and selective price increases combined with
strict cost discipline. We also anticipate further savings from the merger of our consumer businesses.
We expect acquisitions and divestments to have a negative effect in the low single-digit percentage range
on the growth of nominal sales of the Henkel Group.
We expect the translation of sales in foreign currencies to have a neutral to negative effect in the low single-
digit percentage range.
In light of these factors, we issue the following guidance for the business performance of the Henkel Group
and the two business units in 2025:
HENKEL ANNUAL REPORT 2024
206
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Guidance 2025
Guidance 2025
Organic sales growth
Henkel Group:
Adhesive Technologies:
Consumer Brands:
1.5 to 3.5 percent
2.0 to 4.0 percent
1.0 to 3.0 percent
Adjusted1 return on sales (adjusted EBIT margin)
Henkel Group:
Adhesive Technologies:
Consumer Brands:
14.0 to 15.5 percent
16.0 to 17.5 percent
13.5 to 15.0 percent
Development of adjusted1 earnings per preferred share
at constant exchange rates
Increase in the low- to high-single-digit percentage range
1 Adjusted for one-time expenses and income, and for restructuring expenses.
Furthermore, we have the following expectations for 2025:
Restructuring expenses of 200 to 250 million euros
Cash outflows from investments in property, plant and equipment and intangible assets of between
650 and 750 million euros
Dividend
In accordance with our dividend policy and depending on the Company’s asset and profit positions and its
financial requirements, we expect a dividend payout by Henkel AG & Co. KGaA for fiscal 2024 in the range
of 30 to 40 percent of net income after non-controlling interests and adjusted for exceptional items.
HENKEL ANNUAL REPORT 2024
207
209
Consolidated statement of financial
position
211
Consolidated statement of income
212
Consolidated statement of
comprehensive income
213
Consolidated statement of changes in
equity
215
Consolidated statement of cash flows
217
Notes to the consolidated financial
statements – Group segment report by
business unit
219
Notes to the consolidated financial
statements – Key financials by region
220
Notes to the consolidated financial
statements – Accounting principles and
methods applied in preparation of the
consolidated financial statements
241
Notes to the consolidated financial
statements – Notes to the consolidated
statement of financial position
243
Goodwill and other intangible assets
249
Property, plant and equipment
254
Other financial assets
255
Other assets
256
Deferred taxes
256
Inventories
258
Trade accounts receivable
259
Cash and cash equivalents
260
Assets and liabilities held for sale
262
Issued capital
264
Capital reserve
264
Treasury shares
265
Retained earnings
265
Other components of equity
265
Non-controlling interests
266
Provisions for pensions and similar obligations
CONSOLIDATED FINANCIAL STATEMENTS
HENKEL ANNUAL REPORT 2024
208
278
Other provisions
280
Borrowings
281
Other financial liabilities
282
Other liabilities
283
Trade accounts payable
284
Income tax liabilities
284
Financial instruments report
321
Notes to the consolidated financial
statements – Notes to the consolidated
statement of income
321
Sales and principles of revenue recognition
322
Cost of sales
323
Marketing, selling and distribution expenses
323
Research and development expenses
323
Administrative expenses
324
Other operating income
324
Other operating expenses
325
Financial result
326
Taxes on income
331
Non-controlling interests
332
Notes to the consolidated financial
statements – Other disclosures
332
Reconciliation of adjusted net income
334
Payroll cost and employee structure
335
Share-based payment plans
341
Group segment reporting by business unit
and by region
346
Earnings per share
347
Consolidated statement of cash flows
352
Contingent liabilities
352
Other unrecognized financial commitments
353
Shareholdings in the capital of
Henkel AG & Co. KGaA/
Voting rights notifications
354
Related party disclosures
355
Exercise of exemption options
355
Remuneration of the corporate bodies
359
Declaration of compliance with the Corporate
Governance Code
359
Subsidiaries and other investments
360
Auditor’s fees and services
361
Notes to the consolidated financial
statements – Subsequent events
362
Recommendation for the approval
of the annual financial statements
and the appropriation of the profit
of Henkel AG & Co. KGaA
363
Corporate bodies of
Henkel AG & Co. KGaA
HENKEL ANNUAL REPORT 2024
209
THE COMPANY
SHARES AND BONDS
COMBINED MANAGEMENT
REPORT
CONSOLIDATED FINANCIAL
STATEMENTS
FURTHER INFORMATION
CREDITS/LEGAL
CONTACTS
FINANCIAL CALENDAR
CONSOLIDATED STATEMENT
OF FINANCIAL POSITION
Assets
in million euros
Note
Dec. 31, 2023¹
%
Dec. 31, 2024
%
Goodwill
1
13,602
42.9
14,992
42.5
Other intangible assets
1
3,381
10.7
3,789
10.7
Property, plant and equipment
2
3,736
11.8
3,802
10.8
Other financial assets
3
275
0.9
232
0.7
Other assets
4
272
0.9
305
0.9
Deferred tax assets
5
1,178
3.7
1,115
3.2
Non-current assets
22,443
70.7
24,235
68.7
Inventories
6
2,445
7.7
2,568
7.3
Trade accounts receivable
7
3,470
10.9
3,530
10.0
Other financial assets
3
552
1.7
1,138
3.2
Income tax refund claims
266
0.8
287
0.8
Other assets
4
500
1.6
451
1.3
Cash and cash equivalents
8
1,951
6.1
2,889
8.2
Assets held for sale
9
100
0.3
168
0.5
Current assets
9,285
29.3
11,031
31.3
Total assets
31,727
100.0
35,267
100.0
1 Amended following the updated allocation of the purchase price for the shares in Composite Technology Intermediate, Inc.
HENKEL ANNUAL REPORT 2024
210
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SHARES AND BONDS
COMBINED MANAGEMENT
REPORT
CONSOLIDATED FINANCIAL
STATEMENTS
FURTHER INFORMATION
CREDITS/LEGAL
CONTACTS
FINANCIAL CALENDAR
CONSOLIDATED STATEMENT
OF FINANCIAL POSITION
Equity and liabilities
in million euros
Note
Dec. 31, 2023¹
%
Dec. 31, 2024
%
Issued capital
10
438
1.4
438
1.2
Capital reserve
11
652
2.1
652
1.8
Treasury shares
12
-1,054
-3.3
-1,052
-3.0
Retained earnings
13
21,363
67.3
22,619
64.1
Other components of equity
14
-1,478
-4.7
-926
-2.6
Equity attributable to shareholders of Henkel AG & Co. KGaA
19,922
62.8
21,732
61.6
Non-controlling interests
15
77
0.2
90
0.3
Equity
19,999
63.0
21,822
61.9
Provisions for pensions and similar obligations
16
535
1.7
569
1.6
Other provisions
17
301
0.9
329
0.9
Borrowings
18
1,860
5.9
2,049
5.8
Other financial liabilities
19
530
1.7
610
1.7
Other liabilities
20
77
0.2
57
0.2
Deferred tax liabilities
5
669
2.1
741
2.1
Non-current liabilities
3,972
12.5
4,356
12.4
Other provisions
17
2,230
7.0
2,165
6.1
Borrowings
18
409
1.3
1,527
4.3
Trade accounts payable
21
4,075
12.8
4,241
12.0
Other financial liabilities
19
209
0.7
282
0.8
Other liabilities
20
406
1.3
398
1.1
Income tax liabilities
22
428
1.3
467
1.3
Liabilities held for sale
9
–
–
8
0.0
Current liabilities
7,756
24.4
9,089
25.8
Total equity and liabilities
31,727
100.0
35,267
100.0
1 Amended following the updated allocation of the purchase price for the shares in Composite Technology Intermediate, Inc.
HENKEL ANNUAL REPORT 2024
211
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SHARES AND BONDS
COMBINED MANAGEMENT
REPORT
CONSOLIDATED FINANCIAL
STATEMENTS
FURTHER INFORMATION
CREDITS/LEGAL
CONTACTS
FINANCIAL CALENDAR
CONSOLIDATED STATEMENT
OF INCOME
in million euros
Note
2023
%
2024
%
+/-
Sales
24
21,514
100.0
21,586
100.0
0.3%
Cost of sales
25
-11,853
-55.1
-10,765
-49.9
-9.2%
Gross profit
9,661
44.9
10,820
50.1
12.0%
Marketing, selling and distribution expenses
26
-5,764
-26.8
-6,132
-28.4
6.4%
Research and development expenses
27
-587
-2.7
-634
-2.9
8.0%
Administrative expenses
28
-1,102
-5.1
-1,176
-5.4
6.7%
Other operating income
29
127
0.6
111
0.5
-12.9%
Other operating expenses
30
-324
-1.5
-159
-0.7
-50.9%
Operating profit (EBIT)
2,011
9.3
2,831
13.1
40.8%
Interest income
73
0.3
101
0.5
38.5%
Interest expense
-106
-0.5
-113
-0.5
6.9%
Other financial result
-90
-0.4
-96
-0.4
7.4%
Investment result
0
0.0
0
0.0
>100%
Financial result
31
-122
-0.6
-108
-0.5
-11.8%
Income before tax
1,888
8.8
2,723
12.6
44.2%
Taxes on income
32
-549
-2.6
-691
-3.2
25.9%
Tax rate
in %
29.1
25.4
Net income
1,340
6.2
2,032
9.4
51.7%
Attributable to non-controlling interests
33
22
0.1
25
0.1
14.8%
Attributable to shareholders of Henkel AG & Co. KGaA
1,318
6.1
2,007
9.3
52.3%
Earnings per ordinary share – basic and diluted
in euros
3.13
4.78
52.7%
Earnings per preferred share – basic and diluted
in euros
3.15
4.80
52.4%
HENKEL ANNUAL REPORT 2024
212
THE COMPANY
SHARES AND BONDS
COMBINED MANAGEMENT
REPORT
CONSOLIDATED FINANCIAL
STATEMENTS
FURTHER INFORMATION
CREDITS/LEGAL
CONTACTS
FINANCIAL CALENDAR
CONSOLIDATED STATEMENT
OF COMPREHENSIVE INCOME
See Notes 16 and 23 for further explanatory information
in million euros
2023
2024
Net income
1,340
2,032
Results subject to possible future reclassification:
Exchange differences on translation of foreign operations and inflation
adjustments according to IAS 29
-409
622
Gains/losses from derivative financial instruments (Hedge reserve)
-48
-81
Gains/losses from debt instruments
-0
0
Income taxes on these items
13
22
Results not subject to future reclassification:
Remeasurement of net liability from defined benefit pension plans
-174
-8
Gains/losses from equity instruments
1
-8
Income taxes on these items
65
10
Other comprehensive income (net of taxes)
-552
559
Total comprehensive income for the period
788
2,591
Attributable to non-controlling interests
16
29
Attributable to shareholders of Henkel AG & Co. KGaA
772
2,562
HENKEL ANNUAL REPORT 2024
213
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SHARES AND BONDS
COMBINED MANAGEMENT
REPORT
CONSOLIDATED FINANCIAL
STATEMENTS
FURTHER INFORMATION
CREDITS/LEGAL
CONTACTS
FINANCIAL CALENDAR
CONSOLIDATED STATEMENT
OF CHANGES IN EQUITY
See Notes 10 to 15 for further explanatory information
Issued capital
Other components of equity
in million euros
Ordinary
shares
Preferred
shares
Capital
reserve
Treasury
shares
Retained
earnings
Currency
translation
reserve
Hedge
reserve
Reserve
for equity
and debt
instruments
Share
holders of
Henkel AG
& Co. KGaA
Non
controlling
interests
Total
At January 1, 2023
260
178
652
-870
20,903
-925
-135
20
20,083
74
20,157
Net income
–
–
–
–
1,318
–
–
–
1,318
22
1,340
Other comprehensive
income (net of taxes)
–
–
–
–
-109
-402
-36
0
-546
-6
-552
Total comprehensive
income for the period
–
–
–
–
1,209
-402
-36
0
772
16
788
Dividends
–
–
–
–
-771
–
–
–
-771
-12
-783
Share-based payments
–
–
–
–
24
–
–
–
24
–
24
Changes in ownership interest
with no change in control
–
–
–
–
–
–
–
–
–
–
–
Purchase of treasury shares
–
–
–
-186
–
–
–
–
-186
–
-186
Use of treasury shares
–
–
–
3
1
–
–
–
4
–
4
Other changes in equity
–
–
–
–
-3
–
–
–
-3
–
-3
Equity transactions with
shareholders
–
–
–
-183
-748
–
–
–
-932
-12
-944
At December 31, 2023
260
178
652
-1,054
21,363
-1,327
-171
20
19,922
77
19,999
TABLE CONTINUED ON NEXT PAGE
HENKEL ANNUAL REPORT 2024
214
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SHARES AND BONDS
COMBINED MANAGEMENT
REPORT
CONSOLIDATED FINANCIAL
STATEMENTS
FURTHER INFORMATION
CREDITS/LEGAL
CONTACTS
FINANCIAL CALENDAR
Issued capital
Other components of equity
in million euros
Ordinary
shares
Preferred
shares
Capital
reserve
Treasury
shares
Retained
earnings
Currency
translation
reserve
Hedge
reserve
Reserve
for equity
and debt
instruments
Share
holders of
Henkel AG
& Co. KGaA
Non
controlling
interests
Total
At January 1, 2024
260
178
652
-1,054
21,363
-1,327
-171
20
19,922
77
19,999
Net income
–
–
–
–
2,007
–
–
–
2,007
25
2,032
Other comprehensive
income (net of taxes)
–
–
–
–
2
618
-59
-8
555
4
559
Total comprehensive
income for the period
–
–
–
–
2,010
618
-59
-8
2,562
29
2,591
Dividends
–
–
–
–
-771
–
–
–
-771
-18
-788
Share-based payments
–
–
–
–
18
–
–
–
18
–
18
Changes in ownership
interest with no change
in control
–
–
–
–
–
–
–
–
–
–
–
Purchase of treasury shares
–
–
–
–
–
–
–
–
–
–
–
Use of treasury shares
–
–
–
2
0
–
–
–
2
–
2
Other changes in equity
–
–
–
–
1
–
–
–
1
1
2
Equity transactions with
shareholders
–
–
–
2
-751
–
–
–
-750
-17
-766
At December 31, 2024
260
178
652
-1,052
22,619
-709
-229
12
21,732
90
21,822
HENKEL ANNUAL REPORT 2024
215
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SHARES AND BONDS
COMBINED MANAGEMENT
REPORT
CONSOLIDATED FINANCIAL
STATEMENTS
FURTHER INFORMATION
CREDITS/LEGAL
CONTACTS
FINANCIAL CALENDAR
CONSOLIDATED STATEMENT
OF CASH FLOWS
See Note 39 for further explanatory information
in million euros
2023
2024
Operating profit (EBIT)
2,011
2,831
Income taxes paid
-505
-574
Amortization/depreciation/impairment/write-ups of intangible assets, property, plant and
equipment, and assets held for sale
918
826
Gains/losses on disposal of intangible assets and property, plant and equipment,
and from divestments
205
6
Change in inventories
605
-122
Change in trade accounts receivable
47
-50
Change in other assets
122
82
Change in trade accounts payable
-468
187
Change in other liabilities, provisions and equity items
320
-64
Cash flow from operating activities
3,255
3,120
Purchase of intangible assets and property, plant and equipment, including payments on account
-608
-626
Acquisition of subsidiaries and other business units (net of cash and cash equivalents acquired)
-513
-1,333
Acquisition of associates and other investments
-16
-13
Proceeds on disposal of subsidiaries, other business units and investments
(net of cash and cash equivalents disposed)
368
92
Proceeds on disposal of intangible assets and property, plant and equipment
17
16
Interest received
57
86
Change in other financial assets
10
-552
Cash flow from investing activities
-684
-2,330
Dividends paid to shareholders of Henkel AG & Co. KGaA
-771
-771
Dividends paid to non-controlling shareholders
-12
-18
Interest paid1
-101
-103
Dividends and interest paid
-884
-892
TABLE CONTINUED ON NEXT PAGE
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216
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SHARES AND BONDS
COMBINED MANAGEMENT
REPORT
CONSOLIDATED FINANCIAL
STATEMENTS
FURTHER INFORMATION
CREDITS/LEGAL
CONTACTS
FINANCIAL CALENDAR
in million euros
2023
2024
Repayment of bonds
-312
–
Issuance of long-term bank loans
–
244
Other changes in borrowings
-274
979
Redemption of lease liabilities
-146
-146
Allocations to pension funds
-58
-51
Other changes in pension obligations
129
16
Payments for the acquisition of treasury shares
-195
–
Other financing transactions
-14
21
Cash flow from financing activities
-1,754
171
Net change in cash and cash equivalents
817
961
Effect of exchange rates on cash and cash equivalents and inflation adjustments according to IAS 29
-89
-23
Change in cash and cash equivalents
728
938
Cash and cash equivalents at January 1
1,088
1,951
Change in cash and cash equivalents classified as held for sale
135
–
Cash and cash equivalents at December 31
1,951
2,889
Additional voluntary information: Reconciliation to free cash flow
in million euros
2023
2024
Cash flow from operating activities
3,255
3,120
Purchase of intangible assets and property, plant and equipment, including payments on account
-608
-626
Redemption of lease liabilities
-146
-146
Proceeds on disposal of intangible assets and property, plant and equipment
17
16
Net interest paid
-45
-17
Other changes in pension obligations
129
16
Free cash flow
2,603
2,362
1 Including interest paid in connection with lease liabilities.
HENKEL ANNUAL REPORT 2024
217
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SHARES AND BONDS
COMBINED MANAGEMENT
REPORT
CONSOLIDATED FINANCIAL
STATEMENTS
FURTHER INFORMATION
CREDITS/LEGAL
CONTACTS
FINANCIAL CALENDAR
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
GROUP SEGMENT REPORT BY
BUSINESS UNIT
in million euros
Adhesive
Technologies
Consumer
Brands
Operating
business
units total
Corporate
Henkel Group
Sales 2024
10,970
10,467
21,437
149
21,586
Proportion of Henkel Group sales
51%
48%
99%
1%
100%
Sales 2023
10,790
10,565
21,355
159
21,514
Change versus previous year
1.7%
-0.9%
0.4%
-5.8%
0.3%
Adjusted for foreign exchange
3.5%
0.9%
2.2%
–
2.1%
Organic
2.4%
3.0%
2.6%
–
2.6%
Operating profit (EBIT) 2024
1,715
1,276
2,992
-161
2,831
Operating profit (EBIT) 2023
1,423
753
2,176
-165
2,011
Change versus previous year
20.6%
69.4%
37.5%
–
40.8%
Return on sales (EBIT margin) 2024
15.6%
12.2%
14.0%
–
13.1%
Return on sales (EBIT margin) 2023
13.2%
7.1%
10.2%
–
9.3%
Adjusted operating profit (adjusted EBIT) 2024
1,817
1,419
3,236
-147
3,089
Adjusted operating profit (adjusted EBIT) 2023
1,584
1,115
2,699
-144
2,556
Change versus previous year
14.7%
27.2%
19.9%
–
20.9%
Adjusted return on sales (adjusted EBIT margin) 2024
16.6%
13.6%
15.1%
–
14.3%
Adjusted return on sales (adjusted EBIT margin) 2023
14.7%
10.6%
12.6%
–
11.9%
Capital employed 2024¹
10,435
11,490
21,925
88
22,013
Capital employed 2023¹
9,674
11,592
21,266
116
21,382
Change versus previous year
7.9%
-0.9%
3.1%
–
3.0%
TABLE CONTINUED ON NEXT PAGE
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in million euros
Adhesive
Technologies
Consumer
Brands
Operating
business
units total
Corporate
Henkel
Group
Return on capital employed (ROCE) 2024
16.4%
11.1%
13.6%
–
12.9%
Return on capital employed (ROCE) 2023
14.7%
6.5%
10.2%
–
9.4%
Adjusted return on capital employed (adjusted ROCE) 2024
17.4%
12.3%
14.8%
–
14.0%
Adjusted return on capital employed (adjusted ROCE) 2023
16.4%
9.6%
12.7%
–
12.0%
Amortization/depreciation/impairment/write-ups of
intangible assets and property, plant and equipment
and assets held for sale 2024²
376
429
805
21
826
Of which impairment 2024
31
97
128
1
129
Of which write-ups 2024
-2
-10
-13
–
-13
Amortization/depreciation/impairment/write-ups of
intangible assets and property, plant and equipment
and assets held for sale 2023²
344
550
894
24
918
Of which impairment 2023
17
198
215
2
218
Of which write-ups 2023
–
-2
-2
–
-2
Additions to non-current assets 2024
1,501
672
2,172
29
2,202
Additions to non-current assets 2023
828
379
1,207
12
1,219
Operating assets 2024³
13,911
16,264
30,175
525
30,700
Operating liabilities 2024
3,864
4,634
8,499
437
8,935
Net operating assets 2024³
10,046
11,630
21,676
88
21,764
Operating assets 2023³
12,897
16,687
29,584
551
30,135
Operating liabilities 2023
3,697
4,957
8,654
435
9,089
Net operating assets 2023³
9,200
11,729
20,929
116
21,046
1 Including goodwill at cost prior to any accumulated impairment.
2 Including depreciation, impairment and write-ups of right-of-use assets.
3 Including goodwill at net carrying amounts.
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KEY FINANCIALS BY REGION
Additional voluntary information
in million euros
Europe
IMEA
North
America
Latin
America
Asia-
Pacific
Corporate
Henkel
Group
Sales 2024¹
8,048
2,289
6,029
1,636
3,434
149
21,586
Sales 2023¹
8,270
2,071
6,073
1,681
3,260
159
21,514
Change versus previous year
-2.7%
10.5%
-0.7%
-2.7%
5.4%
–
0.3%
Organic
0.9%
18.7%
-1.1%
1.6%
4.9%
–
2.6%
Proportion of Group sales 2024
37%
11%
28%
8%
16%
1%
100%
Proportion of Group sales 2023
38%
10%
28%
8%
15%
1%
100%
Adjusted operating profit
(adjusted EBIT) 2024²
1,579
213
650
203
591
-147
3,089
Adjusted operating profit
(adjusted EBIT) 2023²
1,328
195
515
184
477
-144
2,556
Change versus previous year
18.9%
9.1%
26.2%
10.3%
23.9%
–
20.9%
Adjusted return on sales
(adjusted EBIT margin) 2024²
19.6%
9.3%
10.8%
12.4%
17.2%
–
14.3%
Adjusted return on sales
(adjusted EBIT margin) 2023²
16.1%
9.4%
8.5%
11.0%
14.6%
–
11.9%
1 By location of company.
2 Effective from fiscal 2024, the regional development is presented based on adjusted operating profit (adjusted EBIT) and adjusted return on sales
(adjusted EBIT margin). To improve the comparability of profitability in the regions, the presentation of intragroup charges has been amended.
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ACCOUNTING PRINCIPLES
AND METHODS APPLIED IN
PREPARATION OF THE
CONSOLIDATED FINANCIAL
STATEMENTS
General information
Henkel AG & Co. KGaA (Düsseldorf Regional Court, HRB 4724) is the parent company of the Henkel Group.
Its registered office is Henkelstrasse 67, 40589 Düsseldorf, Germany. The Group is organized in two operational
business units – Adhesive Technologies and Consumer Brands. Details of the business units’ activities are
discussed in the notes to the consolidated financial statements, Note 37, on pages 341 to 345 and the com-
bined management report on pages 93 to 95.
The consolidated financial statements of Henkel AG & Co. KGaA as of December 31, 2024, have been prepared
in accordance with International Financial Reporting Standards (IFRSs) as adopted per Regulation number
1606/2002 of the European Parliament and the Council on the application of international accounting standards
in the European Union, and in compliance with Section 315e German Commercial Code [HGB]. The financial
statements are based on the going concern principle. The consolidated financial statements are published in
the commercial register.
The individual financial statements of the companies included in the consolidation have been prepared as of
the same accounting date, December 31, 2024, as that of Henkel AG & Co. KGaA.
Members of the PwC organization or other independent firms of auditors instructed accordingly have audited
the financial statements of the material companies included in the consolidation. The Management Board of
Henkel Management AG – which is the Personally Liable Partner of Henkel AG & Co. KGaA – prepared the
consolidated financial statements on February 7, 2025 and approved them for forwarding to the Supervisory
Board and for publication.
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FINANCIAL CALENDAR
The functional currency of Henkel AG & Co. KGaA and the reporting currency of the Group is the euro. Unless
otherwise indicated, all amounts are shown in million euros. All individual figures have been rounded. Addition
may therefore result in deviations from the totals indicated. In order to improve the clarity and informative
value of the consolidated financial statements, certain items are combined in the consolidated statement of
financial position, the consolidated statement of income and the consolidated statement of comprehensive
income, and then shown separately in the notes.
Scope of consolidation
In addition to Henkel AG & Co. KGaA as the ultimate parent company, the consolidated financial statements
at December 31, 2024 include 13 German and 192 non-German companies in which Henkel AG & Co. KGaA
has a dominating influence over financial and operating policies, based on the concept of control. The Group
controls a company when it is exposed, or has rights, to variable returns from its involvement with the company
and has the ability to affect those returns through its power over the company. Companies in which the stake
held represents less than half of the voting rights are fully consolidated if Henkel AG & Co. KGaA controls
them, as defined in IFRS 10 (Consolidated Financial Statements), through contractual agreements or the right
to appoint corporate bodies.
Henkel AG & Co. KGaA prepares the consolidated financial statements for the largest and the smallest
groups of companies to which Henkel AG & Co. KGaA and its subsidiaries belong.
The following table shows the changes to the scope of consolidation in fiscal 2024 and in the previous year:
Scope of consolidation
2023
2024
At January 1
201
197
Additions
14
30
Mergers
-9
-14
Disposals
-9
-7
At December 31
197
206
Details of the acquisitions and divestments made in the fiscal year can be found in the section “Acquisitions
and divestments” below. The remaining changes to the scope of consolidation have no significant impact on
the material items of the consolidated financial statements.
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Subsidiaries which are of secondary importance to the Group and to the presentation of a true and fair view
of our net assets, financial position and results of operations due to their inactivity or low level of activity are
generally not included in the consolidated financial statements. For simplification purposes, investments in
these subsidiaries are recognized at cost less any impairment. The total assets of these companies represent
less than 1 percent of the Group’s total assets; their total sales and income (net of taxes) are also less than
1 percent of the Group totals.
Acquisitions and divestments
Acquisitions
Effective April 2, 2024, Henkel acquired all shares in Seal for Life Industries Intermediate Co., USA, Seal for Life
Global Dutch Holding B.V., Netherlands, and SFL Canusa Canada Ltd., Canada, in the Adhesive Technologies
business unit. These acquired companies, together with their subsidiaries, operate globally under the name
Seal for Life and are specialized in protective coatings and sealing solutions in a broad variety of infrastructure
markets such as renewable energies, oil, gas and water. The acquisition is intended to strengthen our global
position and expand our range of solutions for maintenance, repair and overhaul. The purchase price, including
external liabilities repaid as of the transaction date, was 1,099 million euros and was paid in cash. The provi-
sional goodwill acquired represents the growth potential of the businesses purchased, as well as both offensive
and defensive synergies resulting from acquisition. Most of the goodwill is not tax-deductible.
The provisional fair values of the acquired assets and liabilities were determined by the contracts and available
opening balances on the relevant acquisition date.
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FINANCIAL CALENDAR
Acquisition of Seal for Life 2024
in million euros
Fair value
Goodwill
755
Other intangible assets
281
Property, plant and equipment
50
Other non-current assets
13
Non-current assets
1,099
Inventories
47
Trade accounts receivable
37
Cash and cash equivalents
16
Other current assets
6
Current assets
105
Total assets
1,204
Net assets
1,099
Deferred tax liabilities
54
Other non-current liabilities
10
Non-current liabilities
64
Other current provisions/liabilities
25
Trade accounts payable
16
Current liabilities
41
Total equity and liabilities
1,204
Reconciliation of the purchase price to provisional goodwill
in million euros
2024
Acquisition of Seal for Life
Purchase price
1,099
Fair value of the acquired assets and liabilities (provisional)
344
Provisional goodwill
755
If Henkel had completed the acquisition of Seal for Life effective January 1, 2024, and the business activities
had thus been included in the consolidated financial statements since that date, these activities would have
contributed 232 million euros to sales and, taking into account incidental acquisition costs, 12 million euros
to net income for the reporting period of January 1 to December 31, 2024. The actual contributions of the
business in the year under review were 183 million euros to sales and 8 million euros to net income, factoring
in the incidental acquisition costs. Incidental acquisition costs amounted to 17 million euros.
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FINANCIAL CALENDAR
Effective April 30, 2024, we also completed the acquisition of the Vidal Sassoon brand and the related consumer
hair care business in China in the Consumer Brands business unit. The purchase price paid in cash on completion
of the transaction was 252 million euros. In addition, a liability for a contingent purchase price payment was
recognized at its fair value of 29 million euros, with this payment essentially tied to the fulfillment of contrac-
tually defined services by the seller during a transitional services phase. Further information regarding the
determination of the fair value of this liability and the scope of future payments is provided in Note 23 on
pages 284 to 320.
The determination of the purchase price and the allocation of the purchase price to the acquired assets and
liabilities in accordance with IFRS 3 (Business Combinations) for the shares in Seal for Life and the consumer
hair care business in China acquired in fiscal 2024 have not yet been finalized, as certain information relevant
to the measurement is not yet available. Also and above all, determination of the fair value of the other intan-
gible assets, provisions and deferred taxes, and the resulting goodwill from the acquisition, has not yet been
finalized. The process of determining fair values requires discretionary judgments when making correspond-
ing assumptions and estimates. These preliminary estimates are based on currently available information and
will be updated during the measurement period, which may not exceed twelve months from the acquisition
date, based on valuations performed by independent third parties, additionally available information and
further analysis.
Divestments
Active portfolio management continues to be an essential element in determining the future strategic direc-
tion of the Henkel Group. Both the acquisition and sale of trademark rights and businesses are integral to
our strategy. As part of this strategy, we divested the global metal packaging coatings business in the Adhesive
Technologies business unit effective October 1, 2024. We also made a number of small divestments in both
business units in fiscal 2024. These divestments did not have a material effect on the net assets, financial position
and results of operations.
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FURTHER INFORMATION
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CONTACTS
FINANCIAL CALENDAR
Consolidation methods
The financial statements of Henkel AG & Co. KGaA and of the subsidiaries included in the consolidated
financial statements were prepared on the basis of uniformly valid principles of recognition and measure-
ment, applying the standardized year-end date adopted by the Group. Such entities are included in the
consolidated financial statements as of the date on which the Group obtained control.
All intragroup receivables and liabilities, sales, income and expenses, as well as intragroup profits on trans-
fers of non-current assets or inventories, are eliminated on consolidation.
The purchase method is used for capital consolidation. In business combinations, therefore, all hidden re-
serves and hidden charges in the entity acquired are revalued at the time of acquisition, and all identifiable
intangible assets are separately recognized if they are clearly separable or if their recognition arises from a
contractual or other legal right. Any difference arising between the acquisition cost and the (share of) net
assets after purchase price allocation is recognized as goodwill. The goodwill attributable to subsidiaries is
measured in the functional currency of the subsidiary.
Entities acquired are included in the consolidation for the first time as subsidiaries by offsetting the carrying
amount of the respective parent company’s investment in them against their assets and liabilities. Contin-
gent consideration is recognized at fair value as of the date of first-time consolidation. Subsequent changes
in value do not result in an adjustment to the valuation at the time of acquisition. Incidental costs relating to
the acquisition of participating interests in entities are not included in the purchase price. Instead, they are
recognized through profit or loss in the period in which they occur.
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FURTHER INFORMATION
CREDITS/LEGAL
CONTACTS
FINANCIAL CALENDAR
In the recognition of acquisitions of less than 100 percent of the shares in a company, non-controlling inter-
ests are measured at the fair value of the proportion of net assets that they represent. The Henkel Group
uses the present access method to recognize put options granted on non-controlling interests, unless the
acquisition of the outstanding non-controlling interests has already been realized from an economic view-
point. This method requires the recognition of a financial liability, remeasured through equity, for the com-
mitment associated with the put option granted. The non-controlling interests continue to be recognized
in the statement of financial position and the statement of comprehensive income. Minority interests that
have already been economically acquired are recognized using the anticipated acquisition method. Unlike
the present access method, non-controlling interests are in this case not recognized in the statement of finan-
cial position and the statement of comprehensive income.
Changes in the shareholdings of subsidiary companies resulting in a decrease or an increase in the partici-
pating interests of the Group without loss of control are recognized directly in equity as transactions with
shareholders.
As soon as the control of a subsidiary is lost, all the assets and liabilities and the non-controlling interests,
and also the accumulated currency translation gains or losses, are derecognized. In the event that Henkel
continues to own non-controlling interests in the non-consolidated entity, these are measured at fair value.
The result of deconsolidation is recognized under other operating income or expenses.
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FINANCIAL CALENDAR
Associates
An associate is a company over which the Group can exercise significant influence on the financial and oper-
ating policies without having control. Significant influence is generally presumed when the Group holds
20 percent or more of the voting rights. Where a Group company conducts transactions with an associate,
the resulting profits or losses are eliminated in accordance with the share of the Group in that company.
As a rule, shares in associates are recognized using the equity method. For simplification purposes, invest-
ments in associated companies that are less relevant for the Group and for the presentation of a fair view of
its net assets, financial position and results of operations, are recognized at cost less any impairment.
As of December 31, 2024, the Henkel Group did not hold any stakes in associated companies that were
accounted for using the equity method.
Currency translation
General principles
The annual financial statements, including the hidden reserves and hidden charges of Group companies rec-
ognized by the purchase method, goodwill arising on consolidation, and the statement of cash flows, are
translated into euros using the functional currency method outlined in IAS 21 The Effects of Changes in For-
eign Exchange Rates. The functional currency is the currency in which a foreign company predominantly
generates funds and makes payments. The functional currency of the Group companies is generally the local
currency of the company concerned. Assets and liabilities of subsidiaries of which the functional currency is
not the currency of a hyperinflationary economy are translated at closing rates, while income and expenses
are translated at the average rates for the year as an approximation of the actual rates at the date of the
transaction. Equity items are recognized at historical exchange rates. The differences arising from using average
rather than closing rates are taken to equity and shown as other components of equity, or as non-controlling
interests, and remain neutral in respect of net income until the shares in the Group company are divested.
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FURTHER INFORMATION
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CONTACTS
FINANCIAL CALENDAR
In the subsidiaries’ annual financial statements, transactions in foreign currencies are converted at the rates
prevailing at the time of the transaction. Financial assets and liabilities in foreign currencies are measured at
closing rates through profit or loss. For the main currencies in the Group, the following exchange rates have
been used based on 1 euro:
Currencies
Average exchange rate
Exchange rate on December 31
ISO code
2023
2024
2023
2024
Chinese yuan
CNY
7.66
7.79
7.85
7.58
Mexican peso
MXN
19.18
19.82
18.72
21.55
Polish zloty
PLN
4.54
4.31
4.34
4.28
Turkish lira
TRY
25.76
35.57
32.65
36.74
US dollar
USD
1.08
1.08
1.11
1.04
Financial reporting in hyperinflationary economies
Financial statements of subsidiaries of which the functional currency is the currency of a hyperinflationary
economy as defined in IAS 29 (Financial Reporting in Hyperinflationary Economies) must be restated for the
change in purchasing power resulting from inflation prior to conversion into the Group currency and before
consolidation. Non-monetary items on the statement of financial position that are measured at cost or
amortized cost, equity, and the amounts stated on the consolidated statement of income must be indexed
on the basis of a general price index and represented at current purchasing power from the time of initial
recognition in the financial statements. Monetary items are not restated. Corresponding gains and losses
from current inflation are recognized in financial result.
After restatement to current purchasing power, all items on the statement of financial position and all income
and expenses on the consolidated statement of income are translated to the functional currency of the
Group (euros) at the closing rate on the reporting date. When performing consolidation, Henkel recognizes
changes resulting from the current inflation of the equity of its subsidiaries in the currency translation reserve.
HENKEL ANNUAL REPORT 2024
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CONTACTS
FINANCIAL CALENDAR
Determining whether an economy is classifiable as hyperinflationary is based on qualitative and quantitative
criteria, including in particular whether cumulative inflation has exceeded 100 percent over the past three
years. On this basis, the Henkel Group has classified Türkiye as a hyperinflationary economy for the current
and the previous reporting period and has applied IAS 29 accordingly. For the purpose of preparing the
consolidated financial statements, a change of 48.4 percent in general purchasing power was assumed, with
input from experts, as the actual inflation rate for the month of December 2024 was not yet available when
the financial statements were being prepared. The price index published by TURKSTAT, the Turkish office of
statistics, was 2,685 as of December 31, 2024. The price index stood at 1,859 as of December 31, 2023, and
at 1,128 as of December 31, 2022. In fiscal 2024, a loss on the net monetary position from the adjustment to
current purchasing power was recognized in the other financial result in an amount of 58 million euros (pre-
vious year: 53 million euros).
IAS 29 was not applied to subsidiaries in other economies classified as hyperinflationary due to their imma-
terial impact on the net assets, financial position and results of operations of the Henkel Group.
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FINANCIAL CALENDAR
Recognition and measurement methods
Summary of selected measurement methods
Financial statement items
Measurement method
Assets
Goodwill
Lower of initially recognized value of acquisitions per IFRS 3 and comparative figure
following impairment testing at the level of the cash-generating units
(impairment-only approach)
Other intangible assets
With indefinite useful lives
Lower of cost and recoverable amount (impairment-only approach)
With definite useful lives
Amortized cost less any impairment losses
Property, plant and equipment
Depreciated cost less any impairment losses
Financial assets (categories per IFRS 9)
Amortized cost
Amortized cost using the effective interest method
Fair value through profit or loss
Fair value with gains or losses recognized in the income statement
Fair value through other comprehensive
income
Fair value with gains or losses recognized in other comprehensive income1
Other assets
(Amortized) cost
Inventories
Lower of cost and net realizable value
Assets held for sale
Lower of carrying amount and fair value less costs to sell
1 Apart from impairment equivalent to the expected credit losses, and from effects arising from measurement in a foreign currency.
Equity and liabilities
Provisions for pensions and similar obligations Present value of future obligations (projected unit credit method)
Other provisions
Settlement amount
Financial liabilities (categories per IFRS 9)
Amortized cost
Amortized cost using the effective interest method
Fair value through profit or loss
Fair value with gains or losses recognized in the income statement
Other liabilities
Settlement amount
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FINANCIAL CALENDAR
If relevant for the comprehension of the financial statements, the methods of recognition and measurement,
which are basically unchanged from the previous year, are described in the notes relating to the individual
items of the statement of financial position on these pages. The disclosures relevant for the Henkel Group
with regard to IFRS 7 (Financial Instruments: Disclosures) showing the breakdown of our financial instruments
by category, our methods for fair value measurement, and the derivative financial instruments that we use
are also provided as part of the report on our financial instruments (Note 23 on pages 284 to 320). Changes
to International Financial Reporting Standards (IFRSs) that were applied for the first time in the year under
review are discussed in the section entitled “New international accounting regulations according to Interna-
tional Financial Reporting Standards (IFRSs)” on pages 235 to 240. Changes in the methods of recognition
and measurement arising from revised and new standards are applied retrospectively, provided that the
effect is material and there are no alternative regulations. The consolidated statement of income from the
previous year and the opening balance for this comparative period are amended as if the new methods of
recognition and measurement had always been applied.
Accounting estimates, assumptions and discretionary
judgments
Preparation of the consolidated financial statements is based on a number of accounting estimates and as-
sumptions. These have an impact on the reported amounts of assets, liabilities and contingent liabilities at
the reporting date, and the disclosure of income and expenses for the reporting period. The actual amounts
may differ from these estimates.
The accounting estimates and their underlying assumptions are based on past experience and are continu-
ally reviewed. Changes in accounting estimates are recognized in the period in which the change takes place
where such change exclusively affects that period. A change is recognized in the period in which it occurs
and in later periods where such change affects both the reporting period and subsequent periods. Estima-
tions regarding the application of those IFRSs which have a significant impact on the consolidated financial
statements are presented, in particular, in the explanatory notes on goodwill and other intangible assets
(Note 1 on pages 243 to 248), right-of-use assets recognized in property, plant and equipment (Note 2 on
pages 249 to 253), provisions for pensions and similar obligations (Note 16 on pages 266 to 277), other pro-
visions (Note 17 on pages 278 and 279), financial instruments (Note 23 on pages 284 to 320), sales (Note 24
on pages 321 and 322), income taxes (Note 22 on page 284 and Note 32 on pages 326 to 331), and share-
based payment plans (Note 36 on pages 335 to 340).
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FINANCIAL CALENDAR
In light of persisting geopolitical uncertainties – not least against the backdrop of the war in Ukraine and the
Middle East conflict – the estimates required for the preparation of the consolidated financial statements are
subject in some areas to much greater uncertainty than is normally the case. This is especially true of esti-
mates of any possible impairment of non-financial assets, such as goodwill and other intangible assets and
financial assets.
Material discretionary judgments are currently made in respect of the demarcation of the cash-generating
units as explained in Note 1 on pages 243 to 248, the determination of the useful lives of trademarks and
other rights as explained on page 242, an assessment of the classification of assets and liabilities as held for
sale as explained in Note 9 on pages 260 and 261, an assessment of the impact of supplier finance programs
on our trade accounts payable (for further details, please refer to Note 21 on page 283) and the segment
report as explained in Note 37 on pages 341 to 345.
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FINANCIAL CALENDAR
Climate disclosures
Climate change poses one of the biggest global challenges of our time. We see it as a factor that exacer-
bates existing risks, but also offers opportunities. Even though we do not assume that risks will arise from
climate change that could jeopardize the survival of our business activities, such aspects do produce addi-
tional uncertainty when accounting for estimations, and have been considered accordingly. This holds
particularly true, in Henkel’s case, when determining the possible impairment of non-financial assets such
as goodwill and other intangible assets. The corporate planning figures used for impairment testing there-
fore also incorporate climate aspects (see Note 1 on pages 243 to 248).
For many years now, Henkel has included sustainability as an integral part of its corporate strategy, incorpo-
rating a large number of measures aimed at mitigating climate risks and adjustment to them. The costs and
benefits of these measures are embedded in the Company’s cost structures. In addition, climate and sus-
tainability aspects are considered when making investment and financing decisions. Explanations and disclo-
sures relating to this topic can be found in the sections discussing investments in startup companies and
venture capital funds (Note 3 on pages 254 and 255), the description of the bonds issued under our Sustain-
able Finance Framework (Note 18 on pages 280 and 281), and the characteristics of our supplier finance
programs (Note 21 on page 283) and of our virtual power purchase agreements (Note 23 on pages 284 to 320).
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Amendment of prior-year figures
In fiscal 2024, the allocation of the purchase price for the shares acquired in fiscal 2023 of Composite
Technology Intermediate, Inc. was finalized. The prior-year figures have been amended accordingly.
Amendments to the consolidated statement of financial position
in million euros
Dec. 31, 2023
reported
Amendments
Dec. 31, 2023
amended
Goodwill
13,569
33
13,602
Other intangible assets
3,422
-42
3,381
Property, plant and equipment
3,732
4
3,736
Other financial assets
275
0
275
Deferred tax assets
1,176
2
1,178
Non-current assets
22,447
-4
22,443
Inventories
2,444
2
2,445
Trade accounts receivable
3,471
-1
3,470
Other financial assets
550
2
552
Current assets
9,282
3
9,285
Total assets
31,728
-1
31,727
Other provisions
293
8
301
Deferred tax liabilities
678
-9
669
Non-current liabilities
3,972
-0
3,972
Other provisions
2,230
-1
2,230
Other liabilities
406
0
406
Current liabilities
7,757
-1
7,756
Total equity and liabilities
31,728
-1
31,727
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New international accounting regulations according
to International Financial Reporting Standards (IFRSs)
Accounting methods applied for the first time in the year under review
Mandatory for fiscal years
beginning on or after
IAS 1 (Amendment) Classification of Liabilities as Current or Non-current– Deferral of Effective Date and
Non-current Liabilities with Covenants
January 1, 2024
IAS 7 and IFRS 7 (Amendment) Supplier Finance Arrangements
January 1, 2024
IFRS 16 (Amendment) Lease Liability in a Sale and Leaseback
January 1, 2024
First-time application of the changes to the standards did not have any material effect on the net assets,
financial position and results of operations of the Henkel Group.
IAS 1 (Amendment)
With the amendments to IAS 1 (Presentation of Financial Statements), the standard-setter has provided more
precise regulations on the classification of liabilities as current or non-current. In cases where a company
does not have the right to defer settlement of the liability by at least twelve months from the reporting date, the
liability must be classified as current. If the company does have such a right as of the reporting date, the
liability is classified as non-current. If such a right exists but is contingent on the fulfillment of certain conditions
by the company, the relevant liability is classified as non-current only if these conditions are fulfilled at the
end of the reporting period. This applies even if the creditor does not assess the fulfillment of the conditions
until a later date. It is also made clear that the likelihood of whether the company will actually defer settle-
ment of the liability for at least twelve months is irrelevant in assessing the maturity. The classification is not
affected by management’s intentions, although these may render additional disclosures necessary. The standard-
setter has also incorporated regulations in IAS 1 on assessing the maturity of debt instruments that can be
converted into a company’s own shares. If the conversion option in such a contract is recognized separately
from the non-derivative host contract as equity, this does not have any impact on the assessment of the
maturity of the liability. The conversion option must only be included in the analysis in cases where it has the
characteristics of debt capital.
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In addition, the IASB clarifies that the classification of a liability of which the due date can be deferred by at
least twelve months into the future upon compliance with certain covenants must only be recognized on the
reporting date as current or non-current with reference to fulfillment of the covenants if such compliance
relates to the period prior to the reporting date or the reporting date. If the covenants relate to the future,
they are irrelevant for determining the settlement date on the reporting date. However, special recognition
and disclosure rules apply to such liabilities of which the settlement date is dependent on the compliance with
covenants in the twelve months following the reporting date.
IAS 7 and IFRS 7 (Amendment)
The amendments to IAS 7 (Statement of Cash Flows) and IFRS 7 expand the existing disclosure requirements
under the standards to include quantitative and qualitative disclosures regarding a company’s supplier
finance arrangements and the liabilities associated with such arrangements. The amendments aim to make
it possible for readers of financial statements to assess the influence of supplier financing on a company’s
liabilities and cash flows, as well as the liquidity risk to which the company is exposed.
IFRS 16 (Amendment)
With the amendments to IFRS 16 (Leases), the IASB has incorporated into the standard new rules governing
the remeasurement of a lease liability in the case of a sale and leaseback transaction. IFRS 16 contains specific
regulations on the initial measurement of the liability in a sale and leaseback transaction; however, there are
no specific regulations on the remeasurement of this liability. According to the amendments to IFRS 16, the
lease liability is to be measured in such a way that no profit or loss is realized in the remeasurement insofar
as this relates to the retained right of use.
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Accounting regulations not yet adopted by Henkel
Although already adopted into EU law (“endorsed”), the following accounting regulations were not yet
applicable in fiscal 2024 and were not voluntarily adopted early by the Henkel Group:
Accounting regulations not yet applied
Mandatory for fiscal years
beginning on or after
IAS 21 (Amendment) Lack of Exchangeability
January 1, 2025
IAS 21 (Amendment)
The amendments to IAS 21 incorporate extended guidelines for determining the relevant spot rates when
recognizing foreign exchange transactions and converting foreign business operations if one currency is
only convertible into another to a limited extent. In such instances, additional disclosures are required in the
notes to the consolidated financial statements. Here, the standard-setter has provided a more precise def-
inition of the exchangeability of a currency and clarifies the need to examine exchangeability on the reporting
date for each specific type of transaction. If one currency cannot be exchanged for another, IAS 21 specifies
that either an observable spot rate must be adopted unchanged, or a rate estimated on the basis of another
methodology must be used for conversion. When discussing the translation of such foreign currency trans-
actions, disclosures must be included in the notes to the consolidated financial statements in respect of the
restrictions on exchangeability and the rate used, and also with regard to the risks associated with the lack
of exchangeability. If the functional currency of a foreign business operation is not exchangeable, summarized
financial details of the foreign business operation must be included in the notes to the consolidated financial
statements in addition to disclosures about the relevant business. The amendment to IAS 21, which is not
yet mandatory, is not expected to have any material impact on the consolidated financial statements.
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Accounting regulations not yet adopted into EU law
In fiscal 2024, the IASB issued the following standards and amendments to existing standards, which still
have to be adopted into EU law before they become applicable:
Accounting regulations not yet adopted into EU law
Mandatory for fiscal years
beginning on or after
IFRS 9 and IFRS 7 (Amendment) Amendments to the Classification and Measurement of Financial
Instruments
January 1, 2026
Annual Improvements Volume 11
January 1, 2026
IFRS 18 Presentation and Disclosure in Financial Statements
January 1, 2027
IFRS 19 Subsidiaries without Public Accountability: Disclosures
January 1, 2027
IFRS 9 and IFRS 7 (Amendment)
The amendments to IFRS 9 incorporate a right to choose when to derecognize financial liabilities settled
using an electronic payment system. In addition, the existing guidelines on assessing whether the contractual
cash flows of a financial asset consist solely of payments of principal and interest on the principal amount
outstanding have been expanded for certain instruments. The newly incorporated regulations relate, among
other things, to the classification of financial assets of which the cash flows are linked to ESG conditions, to
non-recourse financial assets and to contractually linked instruments. As part of the package of amendments,
the disclosure requirements for financial instruments have also been expanded in IFRS 7. The additional dis-
closures relate to equity instruments for which changes in fair value are recognized in other comprehensive
income and to financial assets and liabilities that are measured at amortized cost or at fair value through other
comprehensive income and have contractual terms that may change the date or amount of the contractual
cash flows. The amendments to IFRS 9 and IFRS 7 are not expected to have any material impact on Henkel’s
consolidated financial statements.
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Annual Improvements Volume 11
The collective amendments include minor amendments to IFRS 1 (First-time Adoption of International Financial
Reporting Standards), IFRS 7, IFRS 9, IFRS 19 and IAS 7. These amendments primarily clarify cases of doubt in
the application of the standards and resolve inconsistencies and are not expected to have any impact on
Henkel’s consolidated financial statements.
IFRS 18
IFRS 18 replaces the existing standard IAS 1. As well as carrying forward existing regulations, it incorporates
various additional requirements concerning the presentation of components of primary financial statements.
The new regulations predominantly relate to the structure of the statement of income, which, following the
introduction of mandatory subtotals, is divided into the categories “Operating,” “Investing” and “Financing.”
The “operating profit or loss before financing and taxes” required to be reported under IFRS 18, i.e. the total
income and expenses allocated to the “Operating” and “Investing” categories, is conceptually more broadly
understood as the operating profit (EBIT) currently reported by Henkel in the consolidated statement of
income. The “Operating” category includes items such as income and expenses from the translation of oper-
ational monetary items in a foreign currency, and results from the hedging of risks arising from such items
as Henkel Group currently includes in the financial result. Further individual aspects relating to the future
reporting of income and expenses in Henkel’s consolidated statement of income are currently being assessed.
It is therefore not yet possible to quantify the impact.
IFRS 18 also requires additional disclosures on the statement of income to be included in the notes when
applying the cost of sales method. These include an explanation of how certain types of operating expenses
are recognized in the line items of the statement of income in accordance with the cost of sales method.
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Additional disclosures are also required in relation to company-specific metrics that are used in public
communications to provide management’s view of an aspect of a company’s financial performance – referred
to as management-defined performance measures. The management-defined performance measures in the
Henkel Group are currently the adjusted operating profit (adjusted EBIT), the adjusted financial result and
the adjusted net income. The reconciliation of these metrics to the subtotals reported in the consolidated
statement of income is already explained in Note 34 on pages 332 and 333. Under IFRS 18, the income tax
effects and the effects on non-controlling interests in relation to the adjustment components must be dis-
closed separately in the reconciliation. A more detailed description of the management-defined performance
measures must also be provided and must explain, among other things, the aspect of the company’s financial
performance that the metrics are intended to communicate.
The new accounting standard also includes principles and guidelines on the aggregation and disaggregation
of items in the components of primary financial statements that go beyond the guidelines of IAS 1. The first-
time application of these options and the removal of existing options concerning the reporting of interest
and dividends in the statement of cash flows in IAS 7 is not currently expected to have any material impact
on Henkel’s consolidated financial statements.
IFRS 18 is applicable retrospectively, which means that the comparative period must be amended when
applying the standard for the first time.
IFRS 19
The standard provides the option for certain companies to reduce the disclosure requirements in their
individual financial statements or subgroup financial statements prepared in accordance with the IFRSs
compared to the disclosure requirements that arise during regular application of all IFRS Accounting Standards.
In order to apply IFRS 19, the company concerned must be a subsidiary in accordance with IFRS 10, must not
have public accountability, and must be included in consolidated financial statements or subgroup financial
statements that are available to the public. The standard therefore has no impact on the consolidated financial
statements of Henkel AG & Co. KGaA.
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NOTES TO THE CONSOLIDATED
STATEMENT OF FINANCIAL
POSITION
The measurement and recognition policies for financial statement items are described in the relevant note.
Non-current assets
All non-current assets with definite useful lives are depreciated or amortized exclusively using the straight-line
method on the basis of their estimated useful lives. The useful life estimates are reviewed annually. If facts or
circumstances indicate the need for impairment, the recoverable amount is determined. It is measured at the
higher of fair value less costs of disposal and value in use. Impairment losses are recognized if the recoverable
amounts of the assets are lower than their carrying amounts. Impairment and scheduled amortization and
depreciation are allocated to the functions in the statement of income.
The same standardized useful lives were applied in the fiscal year as in the previous year, as follows:
Useful life
in years
Intangible assets with definite useful lives
3 to 20
Residential buildings
50
Office buildings
40
Research and factory buildings, workshops, stores and staff buildings
25 to 33
Plant facilities
10 to 25
Machinery
7 to 10
Office equipment
10
Vehicles
5 to 10
Factory and research equipment
2 to 5
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The intangible assets with indefinite useful lives essentially comprise trademarks and other rights with no
obvious time limitation on the generation of cash inflows. Given the consistency and strength of the brands,
indefinite useful lives are assumed, and these intangible assets are not subject to scheduled amortization.
Instead, they are subjected to impairment testing once a year and as indicated, as is also the case with
goodwill. Impairment of trademarks and other rights is recognized in selling expenses, whereas goodwill
impairment is included under other operating expenses.
HENKEL ANNUAL REPORT 2024
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1 Goodwill and other intangible assets
Cost
Trademarks and other rights
in million euros
Assets
with indefinite
useful lives
Assets
with definite
useful lives
Internally
generated
intangible
assets with
definite
useful lives
Intangible
assets in
development
Goodwill
Total
At Jan. 1, 2023
3,059
1,861
748
254
13,620
19,543
Acquisitions1
54
45
–
–
388
487
Divestments
–
-0
–
–
-6
-6
Additions
–
4
0
49
–
53
Disposals
–
-52
-2
-204
–
-258
Reclassifications to assets held for sale
-0
-52
–
–
-31
-84
Reclassifications
–
3
46
-48
–
–
Translation differences
-72
-54
-3
2
-373
-500
Adjustment to current purchasing power according to IAS 29
–
1
–
–
17
18
At Dec. 31, 2023/Jan. 1, 2024¹
3,040
1,755
789
54
13,614
19,252
Acquisitions
224
168
–
–
926
1,317
Divestments
-8
-1
–
–
-5
-13
Additions
–
5
-3
53
–
54
Disposals
-6
-2
-44
–
-0
-52
Reclassifications to assets held for sale
–
-6
–
–
-55
-61
Reclassifications
-8
11
64
-66
-0
–
Translation differences
119
32
2
6
508
667
Adjustment to current purchasing power according to IAS 29
–
1
–
–
17
17
At Dec. 31, 2024
3,361
1,962
808
46
15,005
21,181
1 Amended following the updated allocation of the purchase price for the shares in Composite Technology Intermediate, Inc.
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Accumulated amortization/impairment
Trademarks and other rights
in million euros
Assets
with indefinite
useful lives
Assets
with definite
useful lives
Internally
generated
intangible
assets with
definite
useful lives
Intangible
assets in
development
Goodwill
Total
At Jan. 1, 2023
78
1,611
527
207
11
2,434
Divestments
–
-0
–
–
–
-0
Write-ups
–
–
–
–
–
–
Scheduled amortization
–
67
50
–
–
117
Impairment
46
4
5
0
1
56
Disposals
–
-52
-2
-204
–
-258
Reclassifications to assets held for sale
-0
-34
–
–
–
-34
Reclassifications
–
0
-0
–
–
–
Translation differences
1
-45
-3
–
–
-47
Adjustment to current purchasing power according to IAS 29
–
0
–
–
1
1
At Dec. 31, 2023/Jan. 1, 2024
126
1,551
578
3
12
2,270
Divestments
-8
-1
–
–
–
-9
Write-ups
–
–
–
–
–
–
Scheduled amortization
–
69
55
–
–
124
Impairment
11
18
14
0
–
43
Disposals
-6
-1
-44
–
–
-52
Reclassifications to assets held for sale
–
-6
–
–
–
-6
Reclassifications
–
-0
3
-3
–
–
Translation differences
1
27
2
–
0
30
Adjustment to current purchasing power according to IAS 29
–
0
–
–
1
1
At Dec. 31, 2024
123
1,657
608
0
13
2,401
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Net carrying amounts
Trademarks and other rights
in million euros
Assets
with indefinite
useful lives
Assets
with definite
useful lives
Internally
generated
intangible
assets with
definite
useful lives
Intangible
assets in
development
Goodwill
Total
At December 31, 2024
3,238
305
200
46
14,992
18,781
At December 31, 2023¹
2,915
204
211
51
13,602
16,983
1 Amended following the updated allocation of the purchase price for the shares in Composite Technology Intermediate, Inc.
Goodwill represents the future economic benefit of assets that are acquired through business combinations
and are not individually identifiable and separately recognized, together with expected synergies. Goodwill
upon first-time consolidation constitutes a positive difference between the cost of acquiring the entity and the
amount of acquired identified assets and assumed liabilities existing at the time of acquisition and measured as
specified in IFRS 3. Trademarks and other rights acquired for valuable consideration are stated at purchase
cost, while internally generated software is stated at development cost.
Additions to intangible assets under development mostly reflect investments in digitalizing and consolidat-
ing our IT system architecture. The change in goodwill resulting from acquisitions made in the fiscal year is
presented in the section “Acquisitions and divestments” on pages 222 to 224.
Goodwill as well as trademarks and other rights with indefinite useful lives are subjected to an impairment
test once a year and also when indicators of impairment are present at the level of groups of cash-generat-
ing units (impairment-only approach). Testing is based on fair value less costs of disposal. A discounted cash
flow method is used to determine fair value (before deduction of costs of disposal), which is allocated to
level 3 of the fair value hierarchy (see Note 23 on page 290). The estimated future cash flows are derived
from the budget approved by the management bodies responsible, with the budgeted figures forming the
basis for the impairment test. The assumptions upon which the essential budgeting and planning parameters
are based reflect experience gained in the past, aligned to current information provided by external
sources.
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The impairment of goodwill is assessed at the level of global groups of cash-generating units. The identified
groups of cash-generating units and the goodwill assigned to these groups at the carrying amount as of
the reporting date of December 31, 2024 and at the prior year-end are indicated in the following table. Further
details on the groups of cash-generating units can be found in the segment report in Note 37 on pages 341
to 345 and in the combined management report on pages 121 to 137.
Goodwill carrying amounts and valuation parameters
December 31, 2023¹
December 31, 2024
Groups of cash-
generating units
in million euros
Goodwill
Terminal
growth rate
Weighted
average cost
of capital
(after tax)
Goodwill
Terminal
growth rate
Weighted
average cost
of capital
(after tax)
Mobility &
Electronics
2,623
1.50%
8.50%
2,701
1.50%
8.50%
Craftsmen, Construc-
tion & Professional
1,429
1.00%
8.50%
2,231
1.00%
8.50%
Packaging & Con-
sumer Goods
1,885
1.50%
8.50%
1,947
1.50%
8.50%
Total Adhesive
Technologies
5,937
6,879
Consumer
6,222
1.00%
5.75%
6,627
1.00%
5.75%
Professional
1,442
1.00%
5.75%
1,485
1.00%
5.75%
Total Consumer
Brands
7,664
8,112
1 Amended following the updated allocation of the purchase price for the shares in Composite Technology Intermediate, Inc.
The planning horizon on which impairment testing is based is four years. Planning assumptions included the
potential adverse effects on business of the continued geopolitical tensions, such as those arising from the
ongoing war in Ukraine and as a result of the Middle East conflict, although they themselves are subject to
great uncertainty.
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The expected average annual growth in sales in the groups of cash-generating units in Adhesive Technologies
during the four-year detailed planning period is between 3 and 5 percent (previous year: 3 to 6 percent).
Average sales growth of the groups of cash-generating units in the Consumer Brands business unit is 3 to
4 percent annually over the four-year planning horizon (previous year: 3 to 4 percent).
For the period after the four-year detailed planning horizon, a growth rate in cash flows of between 1 and 2
percent (previous year: 1 to 2 percent) is assumed for the purpose of goodwill impairment testing. This
assumption includes, in particular, the passing-on of expected long-term inflation to our customers. Taking
into account specific tax effects, the cash flows of the various cash-generating units are discounted at different
rates reflecting the weighted average cost of capital (WACC) in each business unit, namely: 8.50 percent
(previous year: 8.50 percent) after tax for Adhesive Technologies and 5.75 percent after tax for Consumer
Brands (previous year: 5.75 percent).
Impairment of trademarks and other rights with indefinite useful lives is assessed at the level of either global
cash-generating units (Adhesive Technologies) or regional cash-generating units (Consumer Brands).
As of December 31, 2024, as at the end of the previous year, most of the trademarks and other rights with
indefinite useful lives are attributable to two cash-generating units. The carrying amount of the trademarks
and other rights allocated to the regional cash-generating unit Consumer North America in the Consumer
Brands business unit was 1.7 billion euros as of December 31, 2024 (previous year: 1.6 billion euros). For
impairment testing purposes, a cost of capital of 6.13 percent after taxes (previous year: 6.23 percent) and a
terminal growth rate of 1.0 percent (previous year: 1.0 percent) were applied. The average annual increase in
sales in the cash-generating unit during the four-year detailed planning period is 1 percent (previous year:
0 percent). As of December 31, 2024, the carrying amount of the trademarks and other rights allocated to
the cash-generating unit Professional North America in the Consumer Brands business unit was 360 million
euros (previous year: 338 million euros). For impairment testing purposes, a cost of capital of 6.12 percent
after taxes (previous year: 6.22 percent) and a terminal growth rate of 1.0 percent (previous year: 1.0 percent)
were applied. The average annual increase in sales during the four-year detailed planning period is 5 percent
(previous year: 2 percent). The carrying amounts of the other trademarks and other rights with indefinite
useful lives are allocated to a large number of global (Adhesive Technologies) and regional (Consumer Brands)
cash-generating units.
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FINANCIAL CALENDAR
In the 2025 planning year, we expect moderate growth in global economic output characterized by sustained
high inflation rates and continued uncertainty surrounding geopolitical developments. We expect prices for
direct materials to increase compared to the annual average for 2024. Energy and labor costs are expected
to remain elevated. The corporate planning process also incorporates the potential impacts of climate change.
For example, expenses and investments relating to measures that support our net-zero targets, which reflect
our business strategy aligned to a reduced-emission economy, are incorporated in corresponding operating
and capital expenditure plans. The budget also considers climate-related opportunities, such as the progressing
trend toward electromobility accompanied by increased demand for our adhesives for use in battery assemblies.
The influence of the volatile market environment that is currently prevailing in terms of inflation, interest rate
trends and energy prices has been taken into consideration in sensitivity analyses, together with estimation
uncertainties due to climate change and geopolitical tensions. Neither an increase in the weighted average
cost of capital that Henkel regards as realistic nor a reduction in either the long-term growth rate or free
cash flow would result in any goodwill impairment requirement for the cash-generating units or groups of
cash-generating units.
No impairment was recognized on goodwill in fiscal 2024 (previous year: 1 million euros). Impairment of
11 million euros was recognized on trademarks and other rights with indefinite useful lives in the year under
review (previous year: 46 million euros) and relates to discontinued trademarks in both business units.
The trademarks and other rights with indefinite useful lives with a net carrying amount totaling 3,238 million
euros (previous year: 2,915 million euros) are established in their markets and will continue to be intensively
promoted. Moreover, there are no other statutory, regulatory or competition-related factors that limit our
usage of our brand names.
The Company also intends to continue using the trademarks and other rights disclosed as having definite
useful lives. In fiscal 2024, these assets and internally generated intangible assets with definite useful lives
required recognition of impairment charge in an amount of 33 million euros (previous year: 9 million euros).
The impairment losses relate primarily to trademarks and the associated technologies and to software in
both business units.
HENKEL ANNUAL REPORT 2024
249
THE COMPANY
SHARES AND BONDS
COMBINED MANAGEMENT
REPORT
CONSOLIDATED FINANCIAL
STATEMENTS
FURTHER INFORMATION
CREDITS/LEGAL
CONTACTS
FINANCIAL CALENDAR
2 Property, plant and equipment
Cost
in million euros
Land, land
rights and
buildings
Plant and
machinery
Factory and
office
equipment
Assets in the
course of
construction
Total
At Jan. 1, 2023
3,430
4,476
1,335
387
9,628
Acquisitions1
11
3
0
–
15
Divestments
-1
-11
-3
–
-14
Additions to existing operations
60
107
76
317
560
Additions of right-of-use assets
63
12
24
–
99
Disposals
-79
-151
-95
-2
-327
Reclassifications to assets held for sale
-26
-21
-17
-1
-65
Reclassifications
58
178
55
-290
–
Translation differences
-59
-71
-26
-7
-163
Adjustment to current purchasing power
according to IAS 29
15
28
4
-1
46
At Dec. 31, 2023/Jan. 1, 2024
3,472
4,552
1,352
402
9,777
Of which: right-of-use assets
872
58
100
–
1,030
Acquisitions
21
24
2
3
50
Divestments
-29
-49
-8
-7
-94
Additions to existing operations
69
115
73
303
561
Additions of right-of-use assets
176
11
32
–
219
Disposals
-114
-205
-117
-1
-430
Reclassifications to assets held for sale
-30
-149
-5
-8
-192
Reclassifications
75
180
39
-295
–
Translation differences
27
24
0
-3
42
Adjustment to current purchasing power
according to IAS 29
15
31
7
–
54
At Dec. 31, 2024
3,685
4,537
1,377
394
9,993
Of which: right-of-use assets
1,009
60
104
–
1,173
1 Amended following the updated allocation of the purchase price for the shares in Composite Technology Intermediate, Inc.
HENKEL ANNUAL REPORT 2024
250
THE COMPANY
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COMBINED MANAGEMENT
REPORT
CONSOLIDATED FINANCIAL
STATEMENTS
FURTHER INFORMATION
CREDITS/LEGAL
CONTACTS
FINANCIAL CALENDAR
Accumulated depreciation/impairment
in million euros
Land, land
rights and
buildings
Plant and
machinery
Factory and
office
equipment
Assets in the
course of
construction
Total
At Jan. 1, 2023
1,643
3,028
1,036
10
5,716
Divestments
-0
-8
-2
–
-10
Write-ups
–
-2
-0
–
-2
Scheduled depreciation
181
279
125
–
585
Impairment
10
122
10
19
161
Disposals
-72
-143
-91
-1
-309
Reclassifications to assets held for sale
-8
-12
-13
–
-33
Reclassifications
1
0
-1
–
–
Translation differences
-29
-46
-17
0
-92
Adjustment to current purchasing power
according to IAS 29
6
18
2
–
25
At Dec. 31, 2023/Jan. 1, 2024
1,730
3,236
1,048
28
6,042
Of which: right-of-use assets
380
32
64
–
476
Divestments
-24
-45
-8
-7
-83
Write-ups
-2
-10
–
–
-13
Scheduled depreciation
185
272
128
–
586
Impairment
24
63
5
-6
86
Disposals
-103
-197
-114
-0
-414
Reclassifications to assets held for sale
-14
-86
-4
–
-105
Reclassifications
0
0
-0
0
1
Translation differences
27
23
1
-0
51
Adjustment to current purchasing power
according to IAS 29
7
23
5
–
35
At Dec. 31, 2024
1,833
3,281
1,061
15
6,190
Of which: right-of-use assets
444
37
61
–
543
HENKEL ANNUAL REPORT 2024
251
THE COMPANY
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COMBINED MANAGEMENT
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CONSOLIDATED FINANCIAL
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FURTHER INFORMATION
CREDITS/LEGAL
CONTACTS
FINANCIAL CALENDAR
Net carrying amounts
in million euros
Land, land
rights and
buildings
Plant and
machinery
Factory and
office
equipment
Assets in the
course of
construction
Total
At Dec. 31, 2024
1,852
1,256
316
378
3,802
Of which: right-of-use assets
564
23
44
–
631
At Dec. 31, 2023¹
1,742
1,316
304
374
3,736
Of which: right-of-use assets
492
26
36
–
554
1 Amended following the updated allocation of the purchase price for the shares in Composite Technology Intermediate, Inc.
Property, plant and equipment includes land, land rights and buildings, plant and machinery, factory and
office equipment, rights of use to corresponding leased assets, and assets in the course of construction.
Special considerations relating to the recognition of right-of-use assets and separate disclosures regarding
leases are discussed in the following section “Additional disclosures regarding leases.”
Additions are stated at purchase or manufacturing cost. The latter includes direct costs and appropriate
proportions of necessary overheads. Borrowing costs for qualified assets per IAS 23 (Borrowing Costs) are
currently not capitalized due to their lack of materiality. Cost figures are shown net of investment grants
and allowances. As of December 31, 2024, investment grants of 98 million euros (previous year: 70 million euros)
were deducted from purchase and manufacturing costs. Some of the grants are contingent upon certain
terms and conditions being met, such as location guarantees. Henkel is sufficiently confident that these terms
and conditions can be satisfied. Acquisition-related incidental costs incurred in order to make the asset
ready for the intended use are capitalized. An overview of the primary investment projects undertaken during
the fiscal year can be found on pages 139 and 140 in the combined management report.
At December 31, 2024, no property, plant and equipment had been pledged as collateral for existing liabilities,
as was also the case in the previous year.
HENKEL ANNUAL REPORT 2024
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COMBINED MANAGEMENT
REPORT
CONSOLIDATED FINANCIAL
STATEMENTS
FURTHER INFORMATION
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CONTACTS
FINANCIAL CALENDAR
The impairment on property, plant and equipment in fiscal 2024 was essentially due to restructuring projects
implemented as part of production network optimization measures and to portfolio measures implemented
in the Consumer Brands business unit.
The periods over which the assets are depreciated are based on their estimated useful lives as set out on
page 241. The depreciation and impairment charges are included in the cost of sales, selling, distribution
and administrative expenses and research and development expenses in a ratio equivalent to the use of the
asset. Write-ups in fiscal 2024 have been recognized in the cost of sales.
Additional disclosures regarding leases
In the course of its business operations, Henkel enters into various lease agreements as a lessee. The under-
lying assets primarily include office buildings and fixtures, production facilities and warehouses – all of which
are recognized under land, land rights and buildings – as well as plant and machinery, and the vehicles and
IT inventory classified as factory and office equipment.
Right-of-use assets are recognized initially at the value of the lease liability plus any lease payments made at
or prior to provision of the leased asset, less any lease incentives received. Furthermore, additions include all
initial direct costs incurred by the lessee together with the estimated cost of dismantling or returning the
leased asset to the condition, and similar, required by the lease agreement at the end of the lease term. In
the case of short-term leases and leases involving assets of low value, the Henkel Group exercises the option
not to recognize a right-of-use asset or a lease liability.
In fiscal 2024, the Henkel Group recognized additions to right-of-use assets in property, plant and equipment
of 219 million euros in total (previous year: 99 million euros), attributable mainly to land, land rights and
buildings. Acquisitions accounted for additions of 10 million euros (previous year: 4 million euros). The additions
were offset by scheduled depreciation and impairment of 153 million euros (previous year: 149 million euros). As
of December 31, 2024, right-of-use assets amounted to 631 million euros (previous year: 554 million euros).
The depreciation recognized separately for the various categories of assets in the consolidated statement of
income for the fiscal year is listed in the following table, together with further disclosures of lease-related
expenses and income affecting Henkel as a lessee:
HENKEL ANNUAL REPORT 2024
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COMBINED MANAGEMENT
REPORT
CONSOLIDATED FINANCIAL
STATEMENTS
FURTHER INFORMATION
CREDITS/LEGAL
CONTACTS
FINANCIAL CALENDAR
Effects on the consolidated statement of income of leases with Henkel as lessee
in million euros
2023
2024
Depreciation and impairment in the year under review
149
153
Of which: right-of-use assets in land, land rights and buildings
112
114
Of which: right-of-use assets in plant and machinery
13
14
Of which: right-of-use assets in factory and office equipment
24
25
Interest expenses on lease liabilities
21
25
Expenses relating to short-term leases
11
12
Expenses relating to leases of low-value assets
5
6
Expenses relating to variable lease payments not considered in the valuation of the lease liability
1
1
Income from subleases
2
5
Henkel paid 189 million euros in total for leases in fiscal 2024 (previous year: 184 million euros).
The Henkel Group uses the incremental borrowing rate to discount lease payments when measuring its lease
liabilities. This rate is based on country-specific interest rates that are observable in the market and which are
adjusted with regard to duration and credit risk. If no interest rates are observable for the relevant durations,
they are derived from linear interpolation.
An analysis of the maturities of the lease liabilities of the Henkel Group is included with the disclosures on
financial instruments in Note 23 on pages 284 to 320. In addition to the future payments from leases dis-
cussed there, payment commitments of 6 million euros (previous year: 7 million euros) also existed as of the
reporting date with regard to leases of material relevance to Henkel that have already been agreed but have
not yet commenced and have therefore not yet been capitalized.
Some of Henkel’s leases for land, land rights and buildings include optional lease periods. Contractually
agreed payments in these optional lease periods are in the mid-triple-digit million euros range, as was also
the case in the previous year. They are not included in the measurement of the lease liability because there
is insufficient certainty that the option on the lease periods will be exercised.
HENKEL ANNUAL REPORT 2024
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THE COMPANY
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COMBINED MANAGEMENT
REPORT
CONSOLIDATED FINANCIAL
STATEMENTS
FURTHER INFORMATION
CREDITS/LEGAL
CONTACTS
FINANCIAL CALENDAR
3 Other financial assets
Analysis
December 31, 2023¹
December 31, 2024
in million euros
Non-
current
Current
Total
Non-
current
Current
Total
Receivables from non-consolidated subsidiaries and
associates
–
0
0
–
0
0
Financial receivables from third parties
12
19
31
12
213
225
Derivative financial instruments
89
52
141
40
73
113
Investments in non-consolidated subsidiaries
4
–
4
3
–
3
Investments in associates
3
–
3
3
–
3
Other investments
129
–
129
138
–
138
Receivables from Henkel Trust e.V. and external
pension funds
–
176
176
–
194
194
Securities and time deposits
24
217
240
20
544
564
Of which: readily monetizable
17
204
221
6
531
537
Financial collateral provided
–
5
5
–
19
19
Sundry financial assets
14
83
98
16
93
109
Total
275
552
827
232
1,138
1,370
1 Amended following the updated allocation of the purchase price for the shares in Composite Technology Intermediate, Inc.
With the exception of investments, derivatives, securities and time deposits, all other financial assets are
measured at amortized cost.
Of the receivables from non-consolidated subsidiaries and associates, 0 million euros is attributable to
non-consolidated subsidiaries, as was also the case in the previous year.
The receivables from Henkel Trust e.V. and external pension funds relate to pension payments made by
Henkel AG & Co. KGaA to retirees for which reimbursement can be claimed from Henkel Trust e.V. and
external pension funds.
Of the current financial receivables from third parties, 200 million euros relates to receivables from third
parties in connection with EU emission rights swaps contracted by Henkel for the purpose of liquidity
management.
HENKEL ANNUAL REPORT 2024
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THE COMPANY
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COMBINED MANAGEMENT
REPORT
CONSOLIDATED FINANCIAL
STATEMENTS
FURTHER INFORMATION
CREDITS/LEGAL
CONTACTS
FINANCIAL CALENDAR
The securities and time deposits essentially comprise time deposits, debt securities and shares in investment
funds and are generally readily monetizable under our financial management arrangements with the exception
of those securities and time deposits that are mandatory to cover our pension liabilities and cannot therefore
be monetized at short notice. In addition, the shares in investment funds are never used for liquidity manage-
ment purposes and are therefore not classified as readily monetizable.
Other investments and securities and time deposits also include investments in startup companies and
venture capital funds focusing on climate protection and sustainability. As of December 31, 2024, the carrying
amount of these non-current financial assets was 24 million euros (previous year: 22 million euros). Sundry
non-current financial assets include, among others, receivables from insurance companies.
Examples of sundry current financial assets include:
Receivables from sureties and guarantee deposits amounting to 26 million euros
(previous year: 22 million euros).
Receivables from suppliers amounting to 21 million euros (previous year: 33 million euros).
Receivables from employees amounting to 12 million euros (previous year: 6 million euros).
4 Other assets
Analysis
December 31, 2023¹
December 31, 2024
in million euros
Non-current
Current
Total Non-current
Current
Total
Tax receivables
3
345
348
4
281
285
Payments on account
–
65
65
–
78
78
Overfunding of pension obligations
160
–
160
179
–
179
Reimbursement rights related to employee
benefits
91
10
101
105
12
117
Deferred charges
13
58
71
11
61
72
Sundry other assets
4
22
26
6
19
25
Total
272
500
772
305
451
756
1 Amended following the updated allocation of the purchase price for the shares in Composite Technology Intermediate, Inc.
HENKEL ANNUAL REPORT 2024
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THE COMPANY
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COMBINED MANAGEMENT
REPORT
CONSOLIDATED FINANCIAL
STATEMENTS
FURTHER INFORMATION
CREDITS/LEGAL
CONTACTS
FINANCIAL CALENDAR
5 Deferred taxes
Deferred taxes are recognized for temporary differences between the valuation of an asset or a liability in
the financial statements and its tax base, for tax losses carried forward, and for unused tax credits. This also
applies to temporary differences in valuation arising through acquisitions, with the exception of deferred
tax liabilities relating to goodwill.
Deferred tax liabilities on taxable temporary differences related to shares in subsidiaries are recognized to
the extent that a reversal of this difference is expected in the foreseeable future, or cannot be controlled.
Changes in the deferred taxes in the statement of financial position result in deferred tax expenses or
income unless the underlying item is directly recognized in other comprehensive income. For items recog-
nized directly in other comprehensive income, the associated deferred taxes are also recognized in other
comprehensive income.
The valuation, recognition and breakdown of deferred taxes in respect of the various items in the statement
of financial position are disclosed under Note 32 “Taxes on income” on pages 326 to 331.
6 Inventories
In accordance with IAS 2 (Inventories), reported under inventories are those assets that are intended to be
sold in the ordinary course of business (finished products and merchandise), those in the process of production
for such sale (work in progress) and those to be utilized or consumed in the course of manufacture or the
provision of services (raw materials and supplies). Payments on account for purchasing inventories are likewise
disclosed under the inventories heading.
When accounting for cash flow hedges under IFRS 9, the measurement effects from hedging instruments for
acquiring non-financial assets are initially recognized in equity in the hedge reserve, and included as part of
the cost upon acquisition of the assets. The IFRS 9 basis adjustment shown under inventories relates to the
results of currency hedges for the procurement of inventories in a foreign currency and of hedging certain
raw materials purchases against market price risks. Further information can be found in the financial instruments
report in Note 23 on pages 284 to 320.
HENKEL ANNUAL REPORT 2024
257
THE COMPANY
SHARES AND BONDS
COMBINED MANAGEMENT
REPORT
CONSOLIDATED FINANCIAL
STATEMENTS
FURTHER INFORMATION
CREDITS/LEGAL
CONTACTS
FINANCIAL CALENDAR
Inventories are measured at the lower of cost and net realizable value, with the cost element being determined
using either the first in, first out (FIFO) or the moving average cost method. Manufacturing cost includes not
only the direct costs but also appropriate portions of necessary overheads (for example goods inward
department, raw material storage, filling, costs incurred through to the finished goods warehouse), production-
related administrative expenses, the costs of the pensions of people who are employed in the production
process, and production-related amortization/depreciation. The overhead add-ons are calculated on the
basis of average capacity utilization. Not included, however, are interest expenses incurred during the manu-
facturing period.
The net realizable value is determined as an estimated selling price less costs yet to be incurred through to
completion, and less necessary selling and distribution costs. Write-downs to the net realizable value are
made if, at the measurement date, the carrying amounts of the inventories are above their realizable market
values. The resultant valuation allowance as of December 31, 2024 amounted to 178 million euros (previous
year: 212 million euros). The carrying amount of inventories recognized at net realizable value amounted to
592 million euros (previous year: 597 million euros). No inventories were pledged as security for liabilities in
fiscal 2024 nor in the previous year.
Analysis of inventories
in million euros
Dec. 31, 2023¹
Dec. 31, 2024
Raw materials and supplies
678
718
Work in progress
137
146
Finished products and merchandise
1,616
1,689
Payments on account for merchandise
16
18
IFRS 9 basis adjustment
-1
-2
Total
2,445
2,568
1 Amended following the updated allocation of the purchase price for the shares in Composite Technology Intermediate, Inc.
HENKEL ANNUAL REPORT 2024
258
THE COMPANY
SHARES AND BONDS
COMBINED MANAGEMENT
REPORT
CONSOLIDATED FINANCIAL
STATEMENTS
FURTHER INFORMATION
CREDITS/LEGAL
CONTACTS
FINANCIAL CALENDAR
7 Trade accounts receivable
Trade accounts receivable amounted to 3,530 million euros (previous year: 3,470 million euros). They are all
due within one year. Valuation allowances are recognized in respect of customer default risks. The expense
arising from accrual of these valuation allowances, and income from the reversal of same, are recognized in
selling and distribution costs. For an explanation of these valuation allowances and our risk management,
please consult pages 307 to 311.
Trade accounts receivable
in million euros
Dec. 31, 2023¹
Dec. 31, 2024
Trade accounts receivable, gross
3,582
3,634
Less: cumulative valuation allowances on trade accounts receivable
112
103
Trade accounts receivable, net
3,470
3,530
1 Amended following the updated allocation of the purchase price for the shares in Composite Technology Intermediate, Inc.
Development of valuation allowances on trade accounts receivable
in million euros
2023¹
2024
Valuation allowances at January 1
102
112
Additions/Releases
24
3
Derecognition of receivables
-11
-14
Currency translation effects
-3
1
Other changes
1
0
Valuation allowances at December 31
112
103
1 Amended following the updated allocation of the purchase price for the shares in Composite Technology Intermediate, Inc.
HENKEL ANNUAL REPORT 2024
259
THE COMPANY
SHARES AND BONDS
COMBINED MANAGEMENT
REPORT
CONSOLIDATED FINANCIAL
STATEMENTS
FURTHER INFORMATION
CREDITS/LEGAL
CONTACTS
FINANCIAL CALENDAR
8 Cash and cash equivalents
Recognized under cash and cash equivalents are cash on hand, checks, credit at banks, and other financial
assets with an initial term of not more than three months. In accordance with IAS 7, also recognized under
cash equivalents are shares in money market funds which, due to their first-class credit rating and investment
in extremely short-term money market securities, experience only minor value fluctuations and can be readily
converted within one day into known amounts of cash. Utilized bank overdrafts are recognized in the statement
of financial position as liabilities to banks.
The volume of cash and cash equivalents increased compared to the previous year from 1,951 million euros
to 2,889 million euros. Of this figure, 2,755 million euros (previous year: 1,855 million euros) relates to cash
and 134 million euros (previous year: 96 million euros) to cash equivalents. The change in cash and cash
equivalents is shown in the consolidated statement of cash flows.
HENKEL ANNUAL REPORT 2024
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COMBINED MANAGEMENT
REPORT
CONSOLIDATED FINANCIAL
STATEMENTS
FURTHER INFORMATION
CREDITS/LEGAL
CONTACTS
FINANCIAL CALENDAR
9 Assets and liabilities held for sale
Assets and liabilities held for sale are assets and disposal groups that can be sold in their current condition
at terms and conditions that are common and usual for such assets and disposal groups and for which sale
is highly probable. Disposal must be expected within one year from the time of reclassification as held for
sale. Disposal groups include a group of assets earmarked for sale or otherwise disposal together in a single
transaction, together with the liabilities that are directly linked to these assets and transferred as part of the
transaction.
Immediately before the reclassification of any assets and liabilities to the held-for-sale category, the relevant
measurement rules for the balance sheet item are applied for the last time. For non-financial assets, this also
implies performing an impairment test in accordance with IAS 36. Any impairment recognized in this context
is reported in the consolidated statement of income in accordance with the rules formulated for the balance
sheet item. After reclassification, scheduled amortization/depreciation is no longer recognized for the assets.
Instead, the assets and disposal groups are recognized at the lower of carrying amount and fair value less costs
of disposal (level 3). The fair value less costs of disposal is generally determined by current price negotiations
with potential buyers. The expense from any write-down to fair value less costs of disposal is recognized
under other operating expenses. Cash and cash equivalents and trade accounts receivable are carried at
amortized cost.
HENKEL ANNUAL REPORT 2024
261
THE COMPANY
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COMBINED MANAGEMENT
REPORT
CONSOLIDATED FINANCIAL
STATEMENTS
FURTHER INFORMATION
CREDITS/LEGAL
CONTACTS
FINANCIAL CALENDAR
Year on year, assets held for sale increased from 100 million euros to 168 million euros. Liabilities held for
sale as of December 31, 2024 amounted to 8 million euros; there were no liabilities held for sale at the end
of the previous year. The assets and liabilities held for sale as of December 31, 2024 essentially relate to
the assets and liabilities that were reclassified in the year under review and are attributable to the Retailer
Brands business in North America that is intended for sale in the Consumer Brands business unit. They
mainly comprise pro rata goodwill, property, plant and equipment, inventories, and trade accounts receivable.
An agreement to sell two subsidiaries that comprise the business was signed on February 3, 2025.
The disposals connected with the assets held for sale relate substantially to the sale of the global metal
packaging coatings business effective October 1, 2024 in the Adhesive Technologies business unit. The
assets that were disposed of essentially comprised property, plant and equipment, other intangible assets
and proportionate goodwill.
In the case of two assets reclassified in fiscal 2023 to assets and liabilities held for sale, it was not possible
to complete the sale by the reporting date. The Company still plans to dispose of these assets. At the end of
fiscal 2024, the assets were stated in the amount of 7 million euros (previous year: 10 million euros).
Assets and liabilities held for sale
in million euros
Dec. 31, 2023
Dec. 31, 2024
Goodwill
33
55
Other intangible assets
18
0
Property, plant and equipment
37
98
Inventories and trade accounts receivable
11
16
Provisions and other liabilities
–
-8
Net assets
100
160
HENKEL ANNUAL REPORT 2024
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CONSOLIDATED FINANCIAL
STATEMENTS
FURTHER INFORMATION
CREDITS/LEGAL
CONTACTS
FINANCIAL CALENDAR
10 Issued capital
Issued capital
in million euros
Dec. 31, 2023
Dec. 31, 2024
Ordinary bearer shares
260
260
Preferred bearer shares
178
178
Capital stock
438
438
Comprising: 259,795,875 ordinary shares, 178,162,875 non-voting preferred shares.
All shares are fully paid in. The ordinary and preferred shares are bearer shares of no par value, each of
which represents a nominal proportion of the capital stock amounting to 1 euro. The liquidation proceeds
are the same for all shares. The number of issued ordinary and preferred shares remained unchanged year
on year.
The number of ordinary shares outstanding, i.e. the number of ordinary shares issued less treasury stock, as
of December 31, 2024 remained the same as at the end of the previous year at 256,505,172 (previous year:
256,505,172). The number of preferred shares outstanding increased versus prior year to 162,856,627 as of
December 31, 2024 (previous year: 162,822,096). Further information on the utilization of treasury shares in
fiscal 2024 can be found in Note 12 on page 264.
Pursuant to the resolution adopted by the Annual General Meeting on April 24, 2023, the Personally Liable
Partner is authorized to purchase ordinary and/or preferred shares of the Company for any permissible
purpose at any time until April 23, 2028 up to a maximum proportion of 10 percent of the capital stock existing
at the time the resolution is adopted by the Annual General Meeting or at the time the authorization is
exercised, whichever is lower. Equity derivatives (put and/or call options and/or forward contracts or a
combination of same) can also be used for such purchase. The volume of any and all shares purchased using
such derivatives must not exceed 5 percent of the capital stock existing at the effective date or at the time
the authorization is exercised, whichever is lower. The term of the derivatives must not exceed 18 months in
each case. The choice of derivative must ensure that the purchase of treasury shares acquired through exercising
the derivative is not possible after April 23, 2028.
HENKEL ANNUAL REPORT 2024
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Moreover, by resolution of the Annual General Meeting of April 24, 2023, the Personally Liable Partner is
authorized to utilize the acquired treasury shares for any permissible purpose, subject to the approval of the
Shareholders’ Committee and the Supervisory Board. To the exclusion of the pre-emptive rights of existing
shareholders, treasury shares may, in particular, be transferred to third parties for the purpose of acquiring
entities or participating interests in entities. Treasury shares may also be sold to third parties against payment
in cash, provided that the selling price is not significantly below the quoted market price at the time of share
disposal. Treasury shares may also be offered for purchase or transferred to members of the Company’s
staff, or managers and employees of affiliated companies, particularly in connection with share-based payment
plans or employee participation programs. The shares may likewise be used to satisfy warrants or conversion
rights granted by the Company. The Personally Liable Partner was further authorized to withdraw treasury
shares without further resolution by the Annual General Meeting.
Moreover, authorized capital was created by resolution of the Annual General Meeting on June 17, 2020
(Art. 6 (5) of the Articles of Association). Under the resolution, the Personally Liable Partner is authorized,
with the approval of the Shareholders’ Committee and of the Supervisory Board, to increase the capital of
the Company at any time through to June 16, 2025, by up to a nominal amount of 43,795,875 euros in total
from the issuance of up to 43,795,875 new non-voting preferred bearer shares for cash consideration
(Authorized Capital 2020). The new shares have exactly the same rights as the preferred shares already
in circulation in respect of eligibility for distribution of profits or Company assets. Shareholders must in this
case be granted pre-emptive subscription rights. Pursuant to Section 186 (5) sentence 1 AktG, the new
shares can be acquired by one or more banks or companies to be nominated by the Personally Liable Partner
on condition that they offer them for purchase to the shareholders.
The authorization may be utilized to the full extent allowed either once or several times in installments. The
new non-voting preferred shares participate in profit distributions from the beginning of the fiscal year in
which they are issued. To the extent permitted by law, the Personally Liable Partner may, with the approval
of the Shareholders’ Committee and of the Supervisory Board and in derogation from Section 60 (2) AktG,
otherwise determine that the new shares shall participate in profits from the beginning of a fiscal year that
has already elapsed and for which, at the time of their issuance, no resolution has yet been passed by the
Annual General Meeting on the appropriation of profit.
Insofar as shares are issued or used to the exclusion of pre-emptive rights, the proportion of capital stock
represented by such shares shall not exceed 10 percent.
HENKEL ANNUAL REPORT 2024
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COMBINED MANAGEMENT
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STATEMENTS
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11 Capital reserve
The capital reserve comprises the amounts received in previous years in excess of the nominal value of
preferred shares and convertible warrant bonds issued by Henkel AG & Co. KGaA.
12 Treasury shares
Treasury shares held by the Company – stated as 3,290,703 ordinary shares and 15,340,779 preferred shares
as at December 31, 2023 – changed as follows in the year under review:
During the reporting period, a total of 34,531 preferred shares (equivalent to a notional share of 0.03 million
euros or 0.01 percent of the capital stock) were taken from treasury shares to fulfill commitments arising
from the share-based Global Long Term Incentive Plan 2020+. Their issue to employees resulted in equity
increasing by 2.3 million euros. Details of the share-based payment plans settled in equity instruments can
be found in Note 36 on pages 335 to 340. As of December 31, 2024, treasury shares held by the Company
amounted to
3,290,703 ordinary shares (equivalent to a notional share of 3.3 million euros or 0.75 percent of the
capital stock) and
15,306,248 preferred shares (equivalent to a notional share of 15.3 million euros or 3.49 percent of the
capital stock).
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13 Retained earnings
Recognized in retained earnings are the following:
Amounts allocated in the financial statements of Henkel AG & Co. KGaA in previous years
Amounts allocated from consolidated net income less those amounts attributable to non-controlling
interests
Gains or losses from the sale of treasury shares
Actuarial gains and losses recognized in equity
Changes in reserves due to the accounting treatment of share-based payment plans
The effects of acquisition or disposal of ownership interests in subsidiaries with no change in control
Valuation effects following application of the present access method
Impacts of first-time application of IFRSs
14 Other components of equity
Reported under this heading are differences recognized in equity arising from the currency translation of
annual financial statements of foreign subsidiaries and from adjustments to current purchasing power in
compliance with IAS 29, and also the effects arising from the valuation in other comprehensive income of
financial assets in the “fair value through other comprehensive income” category and of derivative financial
instruments designated in cash flow hedges and hedges of a net investment in a foreign operation. At
December 31, 2024, the difference attributable to shareholders of Henkel AG & Co. KGaA arising from currency
translation decreased by 618 million euros from -1,327 million to -709 million euros. Other components of
equity decreased by 38 million euros following the reclassification of amounts from the currency translation
reserve to the statement of income in connection with the discontinuation of our business activities in Venezuela.
15 Non-controlling interests
Recognized under non-controlling interests are equity shares held by third parties measured on the basis of
the proportion of net assets they represent.
HENKEL ANNUAL REPORT 2024
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16 Provisions for pensions and similar obligations
Description of the pension plans
Employees in companies included in the consolidated financial statements have entitlements under
company pension plans which are either defined contribution or defined benefit plans. These take different
forms depending on the legal, financial and tax regimes of each country. The level of benefits provided is
based, as a rule, on the length of service and on the income of the person entitled. Details of pension benefits
for members of the Management Board are provided in the explanatory notes to the remuneration policy
and in the Remuneration Report.
In defined benefit plans, the liability for pensions and other post-employment benefits is calculated at the
present value of the future obligations (projected unit credit method). This actuarial method of calculation
takes future trends in wages, salaries and retirement benefits into account.
The majority of the beneficiaries of these pension plans are located in Germany and the USA. The pension
obligations are primarily financed via various external trust assets and pension funds that are legally independent
of Henkel.
Active employees of Henkel in Germany participate in a defined contribution system, “Altersversorgung 2004
(AV 2004),” which was newly formed in 2004. AV 2004 is an employer-financed pension plan that reflects the
personal income development of employees during their career at Henkel and thus provides a performance-
related pension. Henkel guarantees a return on the Company’s contributions. The benefit essentially consists
of an annuity payable upon attainment of the statutory retirement age plus a lump-sum payment if the
annuity threshold is exceeded in the employee’s service period. In addition to retirement and disability
pensions, the plan benefits include surviving spouse and surviving child benefits.
Employees at Henkel in Germany who started working for the Company after April 1, 2011 participate in the
pension plan “Altersversorgung 2011 (AV 2011).” AV 2011 is an employer-financed, fund-linked retirement plan
funded by contributions based on the income development of the employee. Henkel assures its employees
that a lump-sum amount is available upon retirement, which is at least equivalent to the level of principal
contributions made by Henkel. Henkel pays the pension contribution into an investment fund established for
the purpose of the Company pension plan.
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Upon attaining statutory retirement age, employees can choose in both pension plans between an annuity
through transfer of the superannuation lump sum to a pension fund, or a one-time payment, or payment in
installments.
To provide protection under civil law of the pension entitlements of future and current pensioners of Henkel
AG & Co. KGaA in Germany against insolvency, we have transferred the proceeds of the bond issued in 2005
and certain other assets to Henkel Trust e.V. The trustee invests the cash with which it has been entrusted in
the capital market in accordance with investment policies laid down in the trust agreement. In fiscal 2021,
we transferred the entitlements of most Henkel AG & Co. KGaA pensioners and their surviving dependents
in Germany to an external pension fund. Plan assets were correspondingly transferred from Henkel Trust e.V.
to the external pension fund. This did not have any effect on the recognition of pension obligations in Germany
under IFRSs. The only changes were in the primary funding of pension obligations and the way in which
benefits are provided. The non-insurance pension fund is subject to the German Insurance Supervision Act
and thus falls under the control of the German Federal Financial Supervisory Authority (BaFin).
In addition, we also subsidize medical benefits for active and retired employees resident mainly in the USA.
Under these programs, retirees are reimbursed a certain percentage of their refundable medical expenses.
We recognize provisions during the employees’ service period and pay out the promised benefits when they
are claimed. The subsidies paid to active employees for medical services are recognized as a current expense
and are therefore not included in the provisions for pensions and similar obligations.
The defined contribution plans are structured in such a way that the Company pays contributions to institutions
on the basis of statutory or contractual terms or on a voluntary basis and has no further obligations regarding
the payment of benefits to employees. The contributions for defined contribution plans, excluding multi-employer
plans, for the reporting period amounted to 141 million euros (previous year: 134 million euros).
HENKEL ANNUAL REPORT 2024
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Multi-employer plans
Henkel provides defined pension benefits that are financed by more than one employer. Within the Henkel
Group, benefits from multi-employer plans are provided for employees in the USA. The multi-employer plan
in the USA is treated as a defined contribution plan because, due to the limited share of the contribution
volume in the plan, the information available for each of the financing companies is insufficient for defined
benefit accounting. Withdrawal from the multi-employer plan at the present time would incur a one-time
expense of around 26 million euros (previous year: around 23 million euros). Payments into the multi-employer
plan in fiscal 2024 amounted to 1 million euros (previous year: 1 million euros). We expect contributions of
around 1 million euros in fiscal 2025. Henkel’s share in the overall plan is less than 1 percent.
Assumptions
Group-wide, the obligations from our pension plans are valued by an independent external actuary at the
end of the fiscal year. The calculations at the end of the fiscal year are based on the actuarial assumptions
below. These are given as the weighted average. The mortality rates used are based on published statistics
and experience relating to each country. In Germany, the assumptions in both the fiscal year and the previous
year were based on the “Heubeck 2018G” mortality table. In the USA, the assumptions in each case were
based on the modified “Pri-2012” mortality table. The valuation of pension obligations in Germany was
based essentially on the assumption of a 2.0-percent increase in retirement benefits (previous year: 2.0 percent).
As was also the case last year, that portion of inflation that had already occurred and exceeded the anticipated
long-term increase in pensions in Germany was taken into account in the year under review by increasing
the obligation to retirees by a flat rate of 5.6 percent (previous year: 8.3 percent). This effect is recognized
under actuarial losses as a change in the financial assumptions.
HENKEL ANNUAL REPORT 2024
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FURTHER INFORMATION
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FINANCIAL CALENDAR
The discount rate is based on yields in the market for high-ranking corporate bonds on the respective due
date. The currency and term of the underlying bonds are matched to the currency and expected maturities
of the post-employment pension obligations.
Actuarial assumptions
Germany
USA
Other countries1
in percent
2023
2024
2023
2024
2023
2024
Discount rate
3.50
3.50
5.00
5.60
4.50
4.70
Income trend
3.50
3.50
3.502
3.502
3.30
3.18
Retirement benefits trend
2.00
2.00
–
–
2.51
2.44
Expected increases in costs for medical benefits
–
–
6.80
8.25
4.20
4.80
in years
Life expectancy at age 65 as of the valuation
date for a person currently
65 years old
22.5
22.6
21.7
21.8
22.4
22.5
40 years old
25.5
25.6
23.5
23.6
23.9
24.1
1 Weighted average.
2 Income trend based on the average age of the plan participants in the USA. The actual income trend assumption is based on an age-related scale.
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FURTHER INFORMATION
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FINANCIAL CALENDAR
Development of defined benefit plans
Defined benefit obligation
I
Plan assets
II
Impact from the
asset ceiling
III
Net defined benefit
obligation
(I - II + III)
in million euros
2023
2024
2023
2024
2023
2024
2023
2024
At Jan. 1
3,849
4,143
3,649
3,789
25
21
225
375
Current service cost
65
72
65
72
Interest expense
167
158
167
158
Interest income
157
143
1
1
-156
-142
Other
-2
-1
-1
-0
-1
-1
Income and expenses recognized through profit or loss
230
228
157
142
1
1
74
87
Actuarial gains (-)/losses (+), due to
Changes in demographic assumptions
-11
-0
-11
-0
Changes in financial assumptions
315
-43
315
-43
Experience adjustments
-9
60
-9
60
Income (+)/expense (-) from plan assets
(excluding interest income or expenses)
111
-18
-111
18
Remeasurement of the asset ceiling
-5
-22
-5
-22
Items recognized in other comprehensive income
(before deferred taxes)
296
16
111
-18
-5
-22
179
12
Employer contributions
58
51
-58
-51
Employee contributions
25
26
25
26
0
0
Retirement benefits paid from plan assets
-200
-238
-200
-238
0
0
Retirement benefits paid by employer
-37
-36
-37
-36
Plan settlement payments
-1
-2
-1
-2
Changes in the scope of consolidation
-1
-3
-1
1
0
-4
Translation differences
-21
48
-11
44
-10
4
Other changes
2
5
-0
1
2
5
At Dec. 31
4,143
4,187
3,789
3,797
21
375
390
Of which: overfunding of pension obligations
(shown under other assets)
160
179
Of which: provisions for pensions and similar obligations
535
569
The amount at Dec. 31 is attributable to
Germany
2,704
2,757
2,520
2,552
185
205
USA
637
636
480
469
156
167
Rest of the world
802
794
789
776
21
34
17
HENKEL ANNUAL REPORT 2024
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FURTHER INFORMATION
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FINANCIAL CALENDAR
Development of reimbursement rights
in million euros
2023
2024
At Jan. 1
103
101
Interest income
5
5
Income and expenses recognized through profit or loss
5
5
Income (+)/expenses (-) from reimbursement rights
(excluding interest income)
6
5
Items recognized in other comprehensive income (before taxes)
6
5
Employer contributions
–
7
Employee contributions
–
–
Retirement benefits paid from reimbursement rights
-9
-8
Changes in the scope of consolidation
–
–
Translation differences
-4
7
At Dec. 31
101
117
Other amounts recognized in the consolidated statement of income include gains or losses on plan settle-
ments, past service cost, and administrative costs paid out of plan assets that are not attributable to the
administration of plan assets.
Of the defined benefit obligation (DBO) amounting to 4,187 million euros (previous year: 4,143 million euros),
3,808 million euros (previous year: 3,775 million euros) is fully or partially covered by plan assets. 117 million
euros (previous year: 101 million euros) is covered by reimbursement rights.
HENKEL ANNUAL REPORT 2024
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STATEMENTS
FURTHER INFORMATION
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FINANCIAL CALENDAR
Of the total obligation:
1,485 million euros (previous year: 1,449 million euros) is attributable to active employees,
753 million euros (previous year: 720 million euros) to former employees with vested pension benefits,
and
1,948 million euros (previous year: 1,973 million euros) to retirees.
The average weighted duration of pension obligations is 11 years (previous year: 11 years) for Germany,
7 years (previous year: 7 years) for the USA and 13 years (previous year: 14 years) for other countries.
In determining the net obligation, we take into account amounts that are not recognized due to asset ceiling
restrictions. If the fair value of the plan assets exceeds the obligations arising from the pension benefits, an
asset is recognized only if the reporting entity can also derive economic benefit from these assets, for example
in the form of return flows or a future reduction in contributions (asset ceiling). In the prior year, we recorded
an amount of 21 million euros as an asset ceiling. This asset ceiling related to a portion of the plan assets of
our companies in Belgium. In the 2024 reporting period, these assets were transferred to an insurance
company. Consequently, the assets can also be used for a future reduction in contributions and the funding
of other plans of our companies in Belgium, so there is no longer an asset ceiling to account for as of the
end of the fiscal year.
Within our consolidated statement of income, current service costs are allocated on the basis of cost of sales
to the respective function. Only the balance of interest expense for the defined benefit obligation and interest
income for the plan assets and asset ceiling is reported in financial result. All gains/losses from the termi-
nation, curtailment and amendment of plans are recognized in other operating income/expenses. Employer
contributions to state pension insurance are included as “Social security contributions and staff welfare costs”
under Note 35 on page 334. In 2024, employer contributions to plan assets totaled 51 million euros (previous
year: 58 million euros). Payments into pension funds in fiscal 2025 are expected to total 49 million euros.
The reimbursement rights covering a portion of the pension obligations in the USA are assets that are not
protected against insolvency and therefore are not classified as plan assets under IAS 19.
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The reimbursement rights indicated are available to the Group in order to cover the expenditures required
to fulfill the respective pension obligations. Reimbursement rights and the associated pension obligations
must, according to IAS 19, be shown unnetted in the statement of financial position.
Analysis of plan assets
Dec. 31, 2023¹
Dec. 31, 2024
in million euros
Quotation
on active
markets
No quotation
on active
markets
Total
Quotation
on active
markets
No quotation
on active
markets
Total
Shares
743
–
743
813
–
813
Europe
239
–
239
244
–
244
USA
145
–
145
149
–
149
Others
359
–
359
420
–
420
Bonds and hedging
instruments
2,388
-86
2,302
2,283
-72
2,211
Government bonds
996
–
996
931
–
931
Corporate bonds
1,393
–
1,393
1,352
–
1,352
Derivatives
–
-86
-86
–
-72
-72
Alternative investments
–
376
376
–
365
365
Cash
–
305
305
–
299
299
Liabilities²
–
-176
-176
–
-194
-194
Other assets
–
117
117
–
112
112
Qualified insurance contracts
–
122
122
–
193
193
Total
3,131
658
3,789
3,096
702
3,797
1 Adjustment of prior-year figures to separately reflect qualified insurance policies.
2 Liability to Henkel AG & Co. KGaA from the assumption of pension payments for Henkel Trust e.V. and external pension funds.
The objective of the investment strategy for the global plan assets is the long-term security of pension pay-
ments. This is ensured by comprehensive risk management that takes into account the asset and liability
portfolios of the defined benefit pension plans. Henkel pursues a liability-driven investment (LDI) approach
in order to achieve the investment objective. This approach takes into account the structure of the pension
obligations and manages the cover ratio of the pension plans. To improve this ratio, Henkel invests plan
assets in a diversified portfolio for which the expected long-term yield is above the interest costs of the
pension obligations.
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In order to cover the risks arising from trends in wages, salaries and life expectancies, and to close the
potential deficit between plan assets and pension obligations over the long term, additional investments are
made in a return-enhancing portfolio as an add-on instrument that contains assets such as equities, emerg-
ing-market bonds and real estate. The target portfolio structure of the plan assets is essentially determined
in asset-liability studies. These studies are conducted regularly with the help of external advisors who assist
Henkel in the investment of plan assets. They examine the actual portfolio structure, taking into account
current capital market conditions, investment principles and the obligation structure, and can suggest adjust-
ments to be made to the portfolio.
The expected long-term yield for individual plan assets is derived from the target portfolio structure and the
expected long-term yields for the individual asset classes.
Risks associated with pension obligations
Our internal pension risk management function monitors the risks of all pension plans Group-wide in com-
pliance with local legal regulations. As part of the monitoring process, guidelines on the control and man-
agement of risks are adopted and continuously developed; these guidelines mainly govern funding levels,
portfolio structure and actuarial assumptions. The objective of the financing strategy within the Group is to
ensure that plan assets cover at least 90 to 100 percent of the present value of the funded pension obligations.
The contributions and investment strategies are intended to ensure complete coverage of the plans for the
duration of the pension obligations.
Henkel’s pension obligations are exposed to various market risks. These risks are counteracted by ensuring
the required funding level and the structure of pension benefits. The risks relate primarily to changes in mar-
ket interest rates, inflation, and life expectancy, as well as general market fluctuations. Pension obligations
based on contractual provisions in Germany generally entail lifelong benefits payable when the employee
reaches retirement age or in the case of incapacity or death.
In order to reduce the risks arising from the payment of lifelong benefits, as well as inflation, pension bene-
fits have been gradually converted since 2004 to what are known as modular benefits with a pension option,
with the fund available being initially divided into an annuity and lump-sum portion. Newly hired employees
since 2011 receive a commitment based primarily on the lump-sum benefit. In principle, lump-sum benefits
may also be paid out as an annuity through a pension fund. All benefits in Germany are financed through
a provident fund (Vorsorgefonds) established for the purpose of the occupational pension plan. Benefits for
new employees since 2011, as well as a portion of the entitlements vested since 2004, are linked to the perfor-
mance of this provident fund, resulting in a reduction in overall risk to the Company. The described adjust-
ments within the pension structure reduce the financial risk arising from pension commitments in Germany.
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By linking the benefit to the capital investment, the net risk is also largely eliminated. An increase in the
long-term inflation assumption would mainly affect the expected increase in pensions and the expected trend
in pension-eligible salaries.
The pension obligations in the USA are based primarily on three retirement plans that are all closed to new
employees. New employees receive pension benefits based on a defined contribution plan. The pension
benefits generally have a lump-sum option which is usually exercised. When a pension becomes payable,
the amount granted is determined on the basis of current market interest rates. As a result, the impact of a
change to the interest rate used in the calculation is low compared to pension commitments entailing life-
long benefits. Additionally, in the USA, pensions paid once are not adjusted by amount, thus there are no
direct risks during the pension payment period arising from pending pension adjustments. Inflation risks
therefore result mainly from the salary adjustments awarded.
The effects of changes to assumptions with respect to medical benefits for employees and retirees in the
USA are shown in the sensitivity analysis.
The analysis of our Group-wide pension obligations revealed no extraordinary risks.
Cash flows and sensitivities
In the next five years, the following payments from pension plans are expected:
Future payments for pension benefits
in million euros
Germany
USA
Other
countries
Total
2025
179
70
44
293
2026
176
58
41
274
2027
172
56
44
272
2028
173
53
45
271
2029
172
52
49
273
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The future level of the funded status and thus of the pension obligations depends on the development of
the discount rate, among other factors. Companies based in Germany and the USA account for 81 percent of
our pension obligations (previous year: 81 percent). The medical costs incurred after retirement by former
employees of our subsidiaries in the USA are also recognized in the pension obligations for defined benefit
plans. A rate of increase of 8.25 percent (previous year: 6.8 percent) was assumed. We expect this rate of increase
to fall gradually to 4.0 percent by 2050 (previous year: 4.0 percent by 2047). The effects of a change in mate-
rial actuarial assumptions for the present value of pension obligations are as follows:
Sensitivities – Present value of pension obligations at December 31, 2023
in million euros
Germany
USA
Other
countries
Total
Present value of obligations
2,704
637
802
4,143
In the event of
Rise in discount rate by 1.0pp
2,500
605
709
3,814
Reduction of discount rate by 1.0pp
2,954
686
918
4,558
Rise in future income increases by 0.5pp
2,705
639
813
4,157
Reduction of future income increases by 0.5pp
2,704
635
790
4,129
Rise in retirement benefits increases by 0.5pp
2,789
637
823
4,249
Reduction of retirement benefits increases by 0.5pp
2,625
637
784
4,046
Rise in medical costs by 0.5pp
2,704
638
802
4,144
Reduction of medical costs by 0.5pp
2,704
636
802
4,142
pp = percentage points
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STATEMENTS
FURTHER INFORMATION
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CONTACTS
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Sensitivities – Present value of pension obligations at December 31, 2024
in million euros
Germany
USA
Other
countries
Total
Present value of obligations
2,757
636
794
4,187
In the event of
Rise in discount rate by 1.0pp
2,562
604
706
3,871
Reduction of discount rate by 1.0pp
2,994
675
905
4,574
Rise in future income increases by 0.5pp
2,757
638
806
4,201
Reduction of future income increases by 0.5pp
2,756
634
782
4,173
Rise in retirement benefits increases by 0.5pp
2,838
636
814
4,288
Reduction of retirement benefits increases by 0.5pp
2,681
636
773
4,091
Rise in medical costs by 0.5pp
2,757
637
794
4,188
Reduction of medical costs by 0.5pp
2,757
635
793
4,185
pp = percentage points
The extension of life expectancy in Germany by one year would increase the present value of pension
obligations by 3 percent (previous year: 3 percent). In the USA, an extension of life expectancy by one year
would increase the present value of pension obligations by 2 percent (previous year: 2 percent).
It should be noted with respect to the sensitivities presented that, due to mathematical effects, the percent-
age change is not and does not need to be linear. Thus the percentage increases and decreases do not vary
with the same absolute amount. Each sensitivity is independently calculated with no scenario analysis.
HENKEL ANNUAL REPORT 2024
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STATEMENTS
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CONTACTS
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17 Other provisions
Development 2024
in million euros
At December
31, 2023¹
Acquisitions
Utilized
Released
Added
Other
changes
At December
31, 2024
Restructuring provisions
265
–
-137
-50
105
-6
178
Of which: non-current
81
–
-31
-17
29
-11
52
Of which: current
184
–
-106
-34
76
5
126
Sales provisions
1,326
5
-873
-129
905
-2
1,232
Of which: non-current
9
–
-0
-4
8
-2
12
Of which: current
1,316
5
-873
-126
897
-0
1,220
Personnel provisions
579
2
-425
-31
550
4
679
Of which: non-current
85
–
-9
-1
57
-6
125
Of which: current
495
2
-416
-30
493
11
554
Sundry provisions
361
5
-61
-36
129
8
406
Of which: non-current
126
1
-1
-4
5
14
140
Of which: current
234
4
-59
-32
124
-6
265
Total
2,531
12
-1,496
-246
1,690
4
2,494
Of which: non-current
301
1
-41
-25
99
-6
329
Of which: current
2,230
11
-1,455
-221
1,591
10
2,165
1 Amended following the updated allocation of the purchase price for the shares in Composite Technology Intermediate, Inc.
Provisions are recognized for obligations toward third parties where the outflow of resources is probable
and the expected obligation can be reliably estimated. Provisions are measured to the best estimate of the
expenditures required in order to meet the current obligation as of the reporting date. Price increases expected
to take place prior to the time of performance are included in the calculation. Provisions in which the inter-
est effect is material are discounted to the reporting date at a pre-tax interest rate. For obligations in Germany,
we have applied interest rates of between 2.8 and 3.7 percent (previous year: 3.3 and 3.7 percent).
Other changes in provisions include changes in the scope of consolidation, movements in exchange rates,
compounding effects, and adjustments to reflect changes in maturity as time passes.
HENKEL ANNUAL REPORT 2024
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STATEMENTS
FURTHER INFORMATION
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Provisions are recognized in respect of restructuring measures on condition that work has begun on the im-
plementation of a detailed, formal plan or such a plan has already been communicated. Additions to the
restructuring provisions relate to the optimization of our production, logistics and sales and distribution
structures.
Sales provisions cover expected refunds to customers and risks arising from pending transactions. Commit-
ments to customers result in cash outflows in the following period.
Personnel provisions essentially cover expenditures likely to be incurred by the Group for variable, perfor-
mance-related remuneration components.
Sundry provisions include, for example, provisions for warranties in production and engineering. Also in-
cluded are provisions to cover the risk arising from legal disputes and proceedings, representing not just
the cash outflows for the probable amount but also the anticipated cost of legal – for example civil-law –
proceedings. The pending judicial and arbitration court proceedings or public authority proceedings relate
in particular to issues of product liability, product deficiency, competition law, infringement of proprietary
rights, patent law, tax law, environmental protection and legacy remediation.
The course and outcomes of legal disputes are inherently problematic and unpredictable. Based on the
knowledge currently available, no material future impact on the net assets, financial position and results of
operations of the Company is expected.
HENKEL ANNUAL REPORT 2024
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COMBINED MANAGEMENT
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CONSOLIDATED FINANCIAL
STATEMENTS
FURTHER INFORMATION
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18 Borrowings
Analysis
December 31, 2023
December 31, 2024
in million euros
Non-current
Current
Total
Non-current
Current
Total
Bonds
1,857
7
1,865
1,810
100
1,910
Commercial paper1
–
275
275
–
387
387
Liabilities to banks2
3
127
129
239
1,040
1,279
Total
1,860
409
2,269
2,049
1,527
3,576
1 From the euro and US dollar commercial paper program (total volume: 2 billion US dollars and 2 billion euros).
2 Obligations with floating rates of interest or interest rates pegged for less than one year.
Bonds
Issuer
Type
Nominal value
Carrying amounts
excluding accrued
interest
Market values
excluding accrued
interest1
Market values
including accrued
interest
Interest rate p.a.
Maturity
in million euros
Dec. 31,
2023
Dec. 31,
2024
Dec. 31,
2023
Dec. 31,
2024
Dec. 31,
2023
Dec. 31,
2024
2023
2024
Henkel AG & Co. KGaA
Bond
70 million
US dollars2
63
67
59
66
60
66
1.042%
1.042%
7/7/2025
Henkel AG & Co. KGaA
Bond
25 million euros
25
25
24
25
24
25
0.120%
0.120%
7/10/2025
Henkel AG & Co. KGaA
Bond
350 million
GB pounds2
403
422
376
399
377
400
1.250%
1.250%
9/30/2026
Henkel AG & Co. KGaA
Bond
250 million
US dollars3
226
240
208
227
208
228
1.750%
1.750%
11/17/2026
Henkel AG & Co. KGaA
Bond
650 million euros4
640
648
647
652
652
657
2.625%
2.625%
9/13/2027
Henkel AG & Co. KGaA
Bond
500 million euros
500
500
416
419
416
420
0.500%
0.500%
11/17/2032
Total
1,857
1,902
1,729
1,788
1,737
1,796
1 Stock market price at December 31.
2 The interest and principal payments of the bonds denominated in US dollars and GB pounds are converted into euro payments through interest rate currency swaps and foreign exchange forward
contracts.
3 The bond is designated as a hedging instrument in connection with a net investment in a foreign operation.
4 Coupon payments converted from fixed to floating through the use of interest rate swaps.
In fiscal 2021 and 2022, Henkel issued three sustainability-linked bonds with nominal values of 250 million US
dollars, 650 million euros and 500 million euros respectively, recognized as non-current borrowings. The
coupons on these bonds are fixed in principle and dependent on the achievement of certain sustainability
performance targets relating to the sustainability of our packaging and to the reduction of greenhouse gas
HENKEL ANNUAL REPORT 2024
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FINANCIAL CALENDAR
emissions. Failure by Henkel to meet these targets on the respective fixed date would result in a prospective
increase in the coupon payable on the bonds from said fixed date onward until maturity. In the case of the US
dollar bond, the capital surcharge at maturity would be 0.25 or 0.5 percentage points, depending on whether
one or both targets are missed. The surcharge on the coupon of the two euro-denominated bonds would be
0.375 or 0.75 percentage points respectively, for the residual term after the fixed date.
In July 2024, Henkel reclassified the US-dollar-denominated bond with a nominal value of 70 million US dollars
and the euro-denominated bond with a nominal value of 25 million euros from non-current to current bor-
rowings on account of the shorter residual term. In addition, current and non-current liabilities to banks
increased in fiscal 2024, as did current liabilities from commercial paper in connection with the financing, in
matching currencies, of the acquisitions made by Henkel in the year under review.
Liabilities to banks include financial collateral received from banks, in addition to loans and borrowings. Said
collateral amounted to 55 million euros as of December 31, 2024 (previous year: 88 million euros).
19 Other financial liabilities
Analysis
December 31, 2023
December 31, 2024
in million euros
Non-
current
Current
Total
Non-
current
Current
Total
Lease liabilities
504
119
624
593
120
713
Liabilities to non-consolidated subsidiaries
and associates
–
3
3
–
3
3
Liabilities to customers
1
45
46
1
52
52
Derivative financial instruments
8
29
37
0
76
76
Sundry financial liabilities
17
13
29
17
32
49
Total
530
209
738
610
282
893
HENKEL ANNUAL REPORT 2024
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COMBINED MANAGEMENT
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CONSOLIDATED FINANCIAL
STATEMENTS
FURTHER INFORMATION
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CONTACTS
FINANCIAL CALENDAR
Lease liabilities increased year on year by 89 million euros to 713 million euros. For further details of lease
liability measurement, please refer to Note 2 on pages 249 to 253.
Of the liabilities to non-consolidated subsidiaries and associated companies, 3 million euros (previous year:
3 million euros) is attributable to non-consolidated subsidiaries.
20 Other liabilities
Analysis
December 31, 2023
December 31, 2024
in million euros
Non-current
Current
Total Non-current
Current
Total
Other tax liabilities
–
221
221
–
193
193
Liabilities to employees
6
40
46
5
49
54
Liabilities relating to employee deductions
–
40
40
0
39
39
Liabilities in respect of social security
–
22
22
0
25
25
Sundry other liabilities
71
84
154
52
92
144
Total
77
406
483
57
398
455
Sundry other liabilities primarily comprise various income deferrals for other accounting periods amounting
to 12 million euros (previous year: 18 million euros) and payments on account received (i.e. contract liabili-
ties as defined in IFRS 15 [Revenue from Contracts with Customers]) in the amount of 67 million euros (pre-
vious year: 88 million euros). On December 31, 2024, contract liabilities also included a deferral for the use of
trademark rights in the amount of 63 million euros (previous year: 82 million euros). The reduction of this
liability resulted in the recognition of revenues totaling 19 million euros in fiscal 2024 (previous year: 13 mil-
lion euros).
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COMBINED MANAGEMENT
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STATEMENTS
FURTHER INFORMATION
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CONTACTS
FINANCIAL CALENDAR
21 Trade accounts payable
Trade accounts payable increased from 4,075 million euros to 4,241 million euros. In addition to purchase
invoices, they also relate to accruals for invoices outstanding in respect of goods and services received. They
are all due within one year.
As part of its strategic supplier management concept, Henkel offers selected suppliers around the world the
option to join its supplier financing programs. These programs involving four banks and one platform oper-
ator are, among other things, conditional upon the sustainability performance of the supplier, for example in
respect of climate-relevant emissions and the use of natural resources, and enable suppliers to pre-finance
individual invoices before they are due, thereby benefiting from favorable financing terms. Suppliers enter
into financing arrangements with a bank or platform operator without Henkel’s involvement to obtain
premature payout of the invoice amount less an interest component from said bank or platform operator.
Henkel pays the invoice amount to the bank or platform operator when it is due. Payment terms are within
the customary limits for the industry.
Henkel has evaluated these programs, based on various indicators, and has concluded that the respective lia-
bilities continue to bear the characteristics of trade accounts payable. Accordingly, the associated payments
to the bank/platform operator are presented as cash outflows from operating activities. The carrying amounts
of trade accounts payable that are part of a supplier finance arrangement amounted to 747 million euros as
of December 31, 2024 (previous year: 707 million euros). Suppliers had already received payments from finan-
cial service providers for trade accounts payable with a carrying amount of 497 million euros as of December
31, 2024. The average payment term for trade accounts payable that are part of a supplier financing arrange-
ment is between 91 and 134 days, depending on the region. The average payment term for comparable
liabilities that are not covered by such arrangements is between 60 and 95 days. There were no material busi-
ness combinations, foreign exchange effects or other non-cash effects that would have impacted the liabili-
ties that are part of a supplier financing arrangement in fiscal 2024.
HENKEL ANNUAL REPORT 2024
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STATEMENTS
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CONTACTS
FINANCIAL CALENDAR
22 Income tax liabilities
Income tax liabilities include tax obligations and uncertain tax positions. The tax treatment of certain items
and transactions is, in part, dependent on future recognition by the tax authorities or tax judiciary. Insofar as
it is deemed likely that the tax authorities will not accept a tax position, this is taken into consideration when
determining the income tax liabilities and other tax items, with the most probable or expected amount then
being applied (per IAS 12 and IFRIC 23). The same assumptions are applied to both current and deferred
taxes when accounting for uncertain tax positions.
Uncertain tax positions can arise when new tax regulations are applied or interpretations of existing tax reg-
ulations are amended. In relation to deferred income tax assets, this results in a tax risk in the mid to high
double-digit million euros range as of December 31, 2024 (previous year: mid- to high double-digit million
euros range). In relation to current income taxes, there were opportunities in the low double-digit million
euros range as of December 31, 2024. Occurrence of the underlying risk or underlying opportunity is not
deemed to be particularly likely.
23 Financial instruments report
How Henkel recognizes and measures financial instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability
or equity instrument of another entity.
Within the Henkel Group, financial instruments are reported in the statement of financial position under
trade accounts receivable, trade accounts payable, borrowings, other financial assets, other financial liabili-
ties, and cash and cash equivalents.
HENKEL ANNUAL REPORT 2024
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Financial instruments are recognized once Henkel becomes a party to the contractual provisions of the finan-
cial instrument and thereby acquires rights or enters into comparable obligations relating to same. The
recognition of financial assets takes place at the settlement date, with the exception of derivative financial
instruments which are recognized at the trade date. All financial instruments are initially reported at their
fair value. Only those trade accounts receivable without any material financing component are recognized at
transaction price as defined in IFRS 15. Transaction costs are only capitalized if the financial instruments are
not subsequently measured at fair value through profit or loss.
IFRS 9 specifies three categories for measuring financial assets:
Measured at amortized cost
Measured at fair value through profit or loss
Measured at fair value through other comprehensive income
Classification of financial assets to one of the measurement categories is initially based on the structure of
the contractual cash flows. Financial assets in respect of which cash flows occur at specified times and represent
solely interest and principal payments are classified depending on the business model under which they are held.
HENKEL ANNUAL REPORT 2024
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COMBINED MANAGEMENT
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STATEMENTS
FURTHER INFORMATION
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CONTACTS
FINANCIAL CALENDAR
Financial instruments held so as to collect contractual cash flows are recognized at amortized cost using the
effective interest method. All financial assets – with the exception of derivative financial instruments, other
investments, certain financial investments presented under securities and time deposits or cash equivalents,
and the virtual power purchase agreements and liabilities from contingent purchase price agreements included
under sundry financial assets and liabilities – meet these criteria and are measured at amortized cost.
If the business model essentially requires the assets to be held – albeit with their sale remaining possible
where necessary to cover liquidity needs, for example – said assets are recognized at fair value through
other comprehensive income.
Financial instruments in respect of which cash flows are comprised entirely of interest and principal pay-
ments but which are not held within one of the two aforementioned business models, are recognized at fair
value through profit or loss.
In addition, a risk provision must be accrued in the amount of expected credit losses for financial assets that
are measured at amortized cost or at fair value through other comprehensive income. For more details,
please refer to the notes on trade accounts receivable on page 258 and on credit risk on pages 307 to 313.
Financial assets in respect of which the cash flows are not comprised entirely of interest and principal pay-
ments are always recognized at fair value through profit or loss. At Henkel this is the case with derivative
financial assets and shares in investment funds. As a rule, Henkel exercises its right to choose to recognize
equity instruments at fair value through other comprehensive income. This approach is commensurate with
the fact that, generally, the Company does not plan to sell the assets to benefit from short-term changes
in their fair value. If these equity instruments are, nevertheless, sold or derecognized for some other reason,
the valuation effects accumulated up to then in other comprehensive income are reclassified to retained
earnings rather than the consolidated statement of income.
Financial liabilities must be allocated to one of the following measurement categories:
Measured at amortized cost
Measured at fair value through profit or loss
HENKEL ANNUAL REPORT 2024
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STATEMENTS
FURTHER INFORMATION
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CONTACTS
FINANCIAL CALENDAR
As a rule, Henkel recognizes financial liabilities at amortized cost using the effective interest method. Excep-
tionally, derivative financial liabilities and the virtual power purchase agreements and liabilities from contin-
gent purchase price agreements included under sundry financial assets and liabilities are measured at fair value
through profit or loss.
Hedge accounting is applied in individual cases – where possible and economically sensible – in order to
avoid profit and loss variations arising from fair value changes in derivative financial instruments. Fair value
and cash flow hedges or hedges of a net investment in a foreign operation are designated within the Group
depending on the type of underlying and the risk being hedged. Details relating to the hedging contracts
transacted within the Group and how the fair values of the derivatives are determined are provided on pages
298 to 306. The carrying amounts of borrowings recognized in connection with a fair value hedge are
adjusted for the valuation effect from the hedged risk.
Henkel currently exercises the fair value option in selected instances for financial assets if this reduces an
accounting mismatch between the assets and the corresponding derivative financial instruments hedging
material market risks. In the case of already contracted future purchases of non-financial assets containing
embedded derivatives, Henkel exercises the option on a case-by-case basis to recognize the entire contract
at fair value through profit or loss.
The following table summarizes the allocation of items on the statement of financial position to the financial
instrument classes and compares the carrying amounts of the financial assets and liabilities with their respec-
tive fair values:
HENKEL ANNUAL REPORT 2024
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COMBINED MANAGEMENT
REPORT
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STATEMENTS
FURTHER INFORMATION
CREDITS/LEGAL
CONTACTS
FINANCIAL CALENDAR
Comparison of carrying amounts and fair values of financial instruments
in million euros
Dec. 31, 2023¹
Dec. 31, 2023
Dec. 31, 2024
Dec. 31, 2024
Financial assets
Financial instruments class
(valuation hierarchy of fair values)
Carrying
amount
Fair value
Carrying
amount
Fair value
Trade accounts receivable
Amortized cost
3,470
3,530
Other financial assets
827
1,370
Receivables from non-consolidated
subsidiaries and associates
Amortized cost
0
0
Financial receivables from third parties
Amortized cost
29
225
Derivative financial instruments not included
in a designated hedging relationship
Fair value through profit or loss (level 2)
33
33
42
42
Derivative financial instruments included
in a designated hedging relationship
Derivatives included in a designated hedging
relationship (level 2)
108
108
71
71
Derivative financial instruments included
in a designated hedging relationship
Derivatives included in a designated
hedging relationship (level 3)
0
0
0
0
Investments in non-consolidated
subsidiaries and associates
Not assigned to any valuation
category under IFRS 9
7
6
Other investments
Fair value through other
comprehensive income (level 3)
129
129
138
138
Receivables from Henkel Trust e.V. and external pension funds Amortized cost
176
194
Securities and time deposits
Amortized cost
8
316
Securities and time deposits
Fair value through profit or loss (level 1)
208
208
228
228
Securities and time deposits
Fair value through profit or loss (level 2)
17
17
6
6
Securities and time deposits
Fair value through profit or loss (level 3)
7
7
14
14
Financial collateral provided
Amortized cost
5
19
Sundry financial assets
Amortized cost
100
108
Sundry financial assets
Fair value through profit or loss (level 3)
4
4
5
5
Sundry financial assets
Not assigned to any valuation
category under IFRS 9
-4
-4
Cash and cash equivalents
Amortized cost
1,951
2,889
Cash and cash equivalents
Fair value through profit or loss (level 2)
0
0
0
0
Total
6,248
7,790
TABLE CONTINUED ON NEXT PAGE
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FURTHER INFORMATION
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CONTACTS
FINANCIAL CALENDAR
Comparison of carrying amounts and fair values of financial instruments
in million euros
Dec. 31, 2023¹
Dec. 31, 2023
Dec. 31, 2024
Dec. 31, 2024
Financial liabilities
Financial instruments class
(valuation hierarchy of fair values)
Carrying
amount
Fair value
Carrying
amount
Fair value
Borrowings
2,269
3,576
Bonds (not included in a designated hedging relationship)
Amortized cost (level 1)
1,219
1,085
1,257
1,139
Bonds (included in a designated hedging relationship)
Amortized cost (level 1)
accounted for as part of a fair value hedge
645
652
653
657
Other borrowings
Amortized cost
404
1,666
Trade accounts payable
Amortized cost
4,075
4,241
Other financial liabilities
738
893
Lease liabilities
Not assigned to any valuation
category under IFRS 9
624
713
Liabilities to non-consolidated
subsidiaries and associates
Amortized cost
3
3
Liabilities to customers
Amortized cost
46
52
Derivative financial instruments not included in a
designated hedging relationship
Fair value through profit or loss (level 2)
21
21
31
31
Derivative financial instruments included in a
designated hedging relationship
Derivatives included in a designated
hedging relationship (level 2)
14
14
44
44
Derivative financial instruments included in a
designated hedging relationship
Derivatives included in a designated
hedging relationship (level 3)
1
1
0
0
Sundry financial liabilities
Amortized cost
28
21
Sundry financial liabilities
Fair value through profit or loss (level 3)
-9
-9
18
18
Sundry financial liabilities
Not assigned to any valuation
category under IFRS 9
11
10
Total
7,082
8,710
1 Amended following the updated allocation of the purchase price for the shares in Composite Technology Intermediate, Inc.
HENKEL ANNUAL REPORT 2024
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STATEMENTS
FURTHER INFORMATION
CREDITS/LEGAL
CONTACTS
FINANCIAL CALENDAR
IFRS 13 (Fair Value Measurement) defines fair value as the price that would be payable in a principal mar-
ket – or in the most favorable market, in the absence of the former – if an asset were to be sold or a liability
transferred. Valuation parameters as close to market reality as possible must be used as input factors to de-
termine fair value. The fair value hierarchy prioritizes the input factors used in the valuation methods in three
descending levels, depending on market proximity:
Level 1: Fair values which are determined on the basis of quoted, unadjusted prices in active markets.
Level 2: Fair values which are determined on the basis of parameters for which either directly or indirectly
derived market prices are available.
Level 3: Fair values which are determined with the aid of parameters for which the input factors are not
derived from observable market data.
The fair value of securities and time deposits, and bonds, classified as level 1, is based on the quoted market
prices on the reporting date. Observable market data are used to measure the fair value of level 2 securities,
time deposits and cash equivalents. If bid and ask prices are available, the mid price is used to determine the
fair value. When measuring derivative financial instruments, the credit risk is determined by netting all financial
assets, liabilities, collateral received and collateral provided for each counterparty to determine the net credit
exposure. An explanation of the method used to determine the fair values of derivative financial instruments
can be found on pages 298 to 306.
For financial instruments measured at fair value in the statement of financial position and of which the fair
value is allocated to level 3, the change in values in the reporting period is presented below:
HENKEL ANNUAL REPORT 2024
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CONSOLIDATED FINANCIAL
STATEMENTS
FURTHER INFORMATION
CREDITS/LEGAL
CONTACTS
FINANCIAL CALENDAR
Development of level 3 assets and liabilities 2023
in million euros
Derivative
financial assets
included in
a designated
hedging
relationship
Derivative
financial liabilities
included in
a designated
hedging
relationship
Other investments
and securities
Sundry financial
assets with
embedded
derivatives
Sundry financial
liabilities with
embedded
derivatives
Sundry financial
liabilities from
contingent
consideration
Carrying amount at January 1, 2023
0
1
116
4
-11
–
Purchases
–
–
21
–
–
–
Gains/losses (realized) recognized as other
operating income or expenses
–
–
–
0
1
–
Of which: attributable to assets and liabilities
held at the end of the reporting period
–
–
–
0
1
–
Gains/losses (realized) recognized in
other financial result
–
–
–
–
–
–
Of which: attributable to assets and liabilities
held at the end of the reporting period
–
–
–
–
–
–
Gains/losses recognized in other
comprehensive income
-0
0
1
–
–
–
Foreign exchange effects and other changes
–
–
-2
–
0
–
Carrying amount at December 31, 2023
0
1
136
4
-9
–
HENKEL ANNUAL REPORT 2024
292
THE COMPANY
SHARES AND BONDS
COMBINED MANAGEMENT
REPORT
CONSOLIDATED FINANCIAL
STATEMENTS
FURTHER INFORMATION
CREDITS/LEGAL
CONTACTS
FINANCIAL CALENDAR
Development of level 3 assets and liabilities 2024
in million euros
Derivative
financial assets
included in
a designated
hedging
relationship
Derivative
financial liabilities
included in
a designated
hedging
relationship
Other investments
and securities
Sundry financial
assets with
embedded
derivatives
Sundry financial
liabilities with
embedded
derivatives
Sundry financial
liabilities from
contingent
consideration
Carrying amount at January 1, 2024
0
1
136
4
-9
–
Purchases
–
–
22
–
–
29
Gains/losses (realized) recognized as other
operating income or expenses
–
–
–
0
1
-3
Of which: attributable to assets and liabilities
held at the end of the reporting period
–
–
–
0
1
-3
Gains/losses (realized) recognized in
other financial result
–
–
-1
–
–
–
Of which: attributable to assets and liabilities
held at the end of the reporting period
–
–
-1
–
–
–
Gains/losses recognized in other
comprehensive income
–
-1
-8
–
–
–
Foreign exchange effects and other changes
–
–
3
–
-1
1
Carrying amount at December 31, 2024
0
0
152
5
-9
26
The derivative financial instruments categorized as level 3 are commodity forwards recognized in hedge
accounting. In the absence of forward quotes in the market, the fair value is determined on the basis of bids
obtained from several banks for new contracts involving similar products.
Changes in the fair values determined using this procedure are recognized in full in other comprehensive
income and are presented in the hedge reserve. Reclassification of the corresponding amounts to the cost of
hedged inventories is performed when the derivatives are realized. This occurs when the hedged inventories
are recognized. A 10-percent higher (lower) forward price of the derivatives on the reporting date would
have resulted in other comprehensive income increasing (decreasing) by 0 million euros.
Other investments and securities include shares in companies and in investment funds that are currently not
intended for sale. The fair value of other investments and securities is based either on information derived
from recent financing transactions, on a cost-based method, or on valuation using the discounted cash flow
method taking into account the free cash flow of the share or fund investment. Appropriate risk-adjusted
costs of capital are applied when using the discounted cash flow method.
HENKEL ANNUAL REPORT 2024
293
THE COMPANY
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COMBINED MANAGEMENT
REPORT
CONSOLIDATED FINANCIAL
STATEMENTS
FURTHER INFORMATION
CREDITS/LEGAL
CONTACTS
FINANCIAL CALENDAR
The individual other investments and investment fund shares are of minor importance for the presentation
of the net assets and results of operations of the Henkel Group. If any conceivably realistic changes were to
occur in the valuation parameters, the change in the fair values revealed by sensitivity analysis would not
exceed in total a euro range in the mid-single-digit millions. Such changes are attributable virtually entirely
to other investments and would be included in other comprehensive income. Changes in the fair values of
securities are recognized in other financial result. No valuation results recognized in equity were reclassified
to retained earnings in the year under review, nor in the previous year.
As part of our sustainability strategy to achieve our climate targets, we have entered into virtual power pur-
chase (VPP) agreements in the USA and Europe. The renewable energy generation facilities underlying the
agreements are managed by their respective operators. Henkel has no rights of determination or control
over the use of the facilities. The benefits to the contract partners come in the form of two components: a
cash flow that depends, among other things, on the development of the respective spot electricity price, and
certificates that Henkel receives as proof of origin for electricity from renewable energies. The cash flow
between Henkel and the operator serves to settle, on a monthly basis, the difference between the contractu-
ally fixed price per MWh of electricity produced and the respective spot electricity price when the electricity
is fed into the grid. The agreed compensation payments between Henkel and the operator are limited to a
maximum differential amount for Henkel, so that fluctuations in value arising from the agreements are
limited. The annual production volume forecasted under the virtual power purchase agreement in the USA is
300,000 MWh. The agreement in Europe is for an annual production forecast of 200,000 MWh. The respec-
tive contract terms from start of operation of the wind farm/solar park are 10.5 years in the USA and 10 years
in Europe. Due to the derivatives embedded in the agreements, each contract is accounted for at fair value
through profit or loss. The fair value allocated to level 3 is derived from the present value of the expected
cash flows from the agreement.
HENKEL ANNUAL REPORT 2024
294
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COMBINED MANAGEMENT
REPORT
CONSOLIDATED FINANCIAL
STATEMENTS
FURTHER INFORMATION
CREDITS/LEGAL
CONTACTS
FINANCIAL CALENDAR
The main valuation parameters for the virtual power purchase agreement entered into in the USA in fiscal
2020 are the expected electricity prices and the US dollar interest rate used for discounting. In addition to
the expected electricity prices, a primary parameter for valuation of the virtual power purchase agreement
executed in Europe in fiscal 2022 is the euro interest rate used for discounting. A change of 10 percent in the
expected electricity prices or of 100 basis points in the discount rate would result in a change in the fair
value of the virtual power purchase agreement concerned of 0 million euros.
At the time of initial recognition, the fair values of the virtual power purchase agreements were higher than
the transaction price. The respective differences were deferred and will be recognized pro rata temporis
as earnings in the statement of income over the term of the agreement, once operations commence at the
wind farm or solar park on which the respective virtual power purchase agreement is based. The deferred
difference is recognized in the statement of financial position, together with the positive or negative fair
value of the agreement, under sundry financial assets or sundry financial liabilities.
Changes in the fair value and deferred amount are recognized in other operating income or other operating
expenses in the statement of income. On January 1, 2024, the deferred difference recognized for the virtual
power purchase agreement in the USA was 11 million euros (previous year: 13 million euros). In the reporting
period, 1 million euros was recognized as other operating income (previous year: 1 million euros). The
difference remaining as of December 31, 2024, after allowing for currency effects, was 10 million euros (previous
year: 11 million euros). On January 1, 2024, the deferred difference recognized for the virtual power purchase
agreement in Europe was 4 million euros (previous year: 4 million euros). In fiscal 2024, the amount of 0 million
euros was recognized as other operating income for the first time following the commissioning of the solar
park in May 2024. The difference remaining as of December 31, 2024, was 4 million euros (previous year:
4 million euros).
HENKEL ANNUAL REPORT 2024
295
THE COMPANY
SHARES AND BONDS
COMBINED MANAGEMENT
REPORT
CONSOLIDATED FINANCIAL
STATEMENTS
FURTHER INFORMATION
CREDITS/LEGAL
CONTACTS
FINANCIAL CALENDAR
The fair value of the contingent consideration reported under sundry financial liabilities in connection with
the acquisition of the Vidal Sassoon brand and the related consumer hair care business in China is essentially
tied to the fulfillment of contractually defined services by the seller during a transitional services phase. The
assessments as to whether the services have been provided as contractually agreed will be made in 2024
and 2025 at six-monthly intervals from the date of acquisition. If the seller fails to meet one of three agreed
performance indicators in any of the assessment periods, or only meets them in part, the purchase price liabil-
ity is reduced by a maximum of a low single-digit million euro amount for each unmet performance indicator.
Any corresponding changes will be recognized in other operating income or expenses. The agreement stipu-
lates that Henkel will pay a maximum amount of up to 29 million euros.
No reclassifications between the valuation categories or classes per IFRS 7, nor within the fair value hierarchy,
were performed during the reporting period or in the comparable prior period.
HENKEL ANNUAL REPORT 2024
296
THE COMPANY
SHARES AND BONDS
COMBINED MANAGEMENT
REPORT
CONSOLIDATED FINANCIAL
STATEMENTS
FURTHER INFORMATION
CREDITS/LEGAL
CONTACTS
FINANCIAL CALENDAR
Net gains and losses from financial instruments by category
The net gains and losses from financial instruments can be allocated to the following categories:
Net results by measurement category 2023
in million euros
Interest
Valuation
allowances
Payments
received for
written-off and
derecognized
financial
instruments
Fees
Other effects
recognized
through profit
or loss
Valuation
effects recog-
nized through
other compre-
hensive
income
Reclassi-
fications
of valuation
effects recog-
nized through
other compre-
hensive
income
Total
net results
Financial assets measured at
amortized cost
45
-30
1
–
-0
–
–
15
Financial assets measured at fair value
through other comprehensive income
(debt instruments)
–
–
–
–
–
-0
–
-0
Financial assets measured at fair value
through other comprehensive income
(equity instruments)
–
–
–
–
–
-0
–
-0
Financial assets and liabilities measured
at fair value through profit or loss1
20
–
–
–
-13
68
-107
-31
Financial liabilities measured at
amortized cost
-98
–
–
-2
-24
–
–
-124
Total net results 2023
-33
-30
1
-2
-37
68
-107
-140
1 Including designated hedging instruments.
HENKEL ANNUAL REPORT 2024
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COMBINED MANAGEMENT
REPORT
CONSOLIDATED FINANCIAL
STATEMENTS
FURTHER INFORMATION
CREDITS/LEGAL
CONTACTS
FINANCIAL CALENDAR
Net results by measurement category 2024
in million euros
Interest
Valuation
allowances
Payments
received for
written-off and
derecognized
financial
instruments
Fees
Other effects
recognized
through profit
or loss
Valuation
effects recog-
nized through
other compre-
hensive
income
Reclassi-
fications
of valuation
effects recog-
nized through
other compre-
hensive
income
Total
net results
Financial assets measured at
amortized cost
75
-9
1
–
3
–
–
70
Financial assets measured at fair value
through other comprehensive income
(debt instruments)
–
–
–
–
–
0
–
0
Financial assets measured at fair value
through other comprehensive income
(equity instruments)
–
–
–
–
–
-9
–
-9
Financial assets and liabilities measured
at fair value through profit or loss1
29
–
–
–
-5
-103
43
-36
Financial liabilities measured at
amortized cost
-117
–
–
-6
-15
–
–
-138
Total net results 2024
-12
-9
1
-6
-17
-112
43
-113
1 Including designated hedging instruments.
Reconciliation of net results to financial result
in million euros
2023
2024
Total net results
-140
-113
Less/plus results included in operating profit or in other comprehensive income
68
77
Foreign exchange effects
9
-12
Interest expense of pension obligations less interest income from plan assets and
reimbursement rights
-6
-11
Other financial result (not related to financial instruments)
-54
-49
Financial result
-122
-108
No gains or losses were realized in the fiscal year from the derecognition of financial assets measured at
amortized cost.
HENKEL ANNUAL REPORT 2024
298
THE COMPANY
SHARES AND BONDS
COMBINED MANAGEMENT
REPORT
CONSOLIDATED FINANCIAL
STATEMENTS
FURTHER INFORMATION
CREDITS/LEGAL
CONTACTS
FINANCIAL CALENDAR
Derivative financial instruments and hedge accounting
Derivative financial instruments are measured at their fair value at the reporting date. Recognition of the
gains and losses arising from fair value changes of derivative financial instruments is dependent upon
whether hedge accounting rules are applicable. The Group ensures that its hedge accounting is consistent
with the Group risk management objectives and strategy, and that a qualitative and forward-looking ap-
proach is adopted when assessing the effectiveness of its hedging transactions.
Hedge accounting is not applied for derivative financial instruments as long as their valuation is offset by
direct compensatory changes in the fair values of the hedged items or the requirements for hedge account-
ing are not fulfilled. We recognize directly in the statement of income the fair value changes in these deriva-
tives which, in economic terms, represent effective hedges within the framework of the Group strategy. In
derogation from the above, hedges of intragroup financing arrangements in US dollars are recognized as
cash flow hedges if their valuation effects cannot be fully eliminated in the consolidated financial statements.
In hedge accounting, derivative financial instruments are classified as instruments for hedging the fair value
(“fair value hedge”), as instruments for hedging future cash flows (“cash flow hedge”) or as instruments for
hedging a net investment in a foreign operation (“hedge of a net investment in a foreign operation”). When
closing the transaction, Henkel documents the relationship between the hedging instrument and the
hedged item, together with the risk management objectives and strategies of the hedging transactions. All
derivatives classified as hedging instruments are tied to specific committed and planned transactions. Henkel
uses acknowledged methods – such as the “dollar offset method” or the “hypothetical derivative method” –
to determine the effective portion of the hedges and any ineffective portions.
HENKEL ANNUAL REPORT 2024
299
THE COMPANY
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COMBINED MANAGEMENT
REPORT
CONSOLIDATED FINANCIAL
STATEMENTS
FURTHER INFORMATION
CREDITS/LEGAL
CONTACTS
FINANCIAL CALENDAR
The following table provides an overview of the derivative financial instruments utilized and recognized
within the Group, and their fair values:
Derivative financial instruments
Nominal value
Positive fair value2
Negative fair value2
in million euros
Dec. 31, 2023
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2024
Currency risk
Currency forwards1
7,669
8,633
85
60
-31
-75
Of which: for hedging loans within the Group
2,382
3,386
44
27
-6
-16
Of which: designated as cash flow hedges
2,641
2,550
59
19
-9
-36
Of which: designated as net investment hedge
229
228
1
–
-1
-8
Cross-currency interest rate swaps3
466
489
25
35
–
–
Of which: designated as cash flow hedges
466
489
25
35
–
–
Interest rate risk
Interest rate swaps
1,122
1,081
31
18
-4
–
Of which: designated as cash flow hedges4
271
289
24
13
–
–
Of which: designated as fair value hedges
650
650
–
3
-4
–
Commodity price risk
Commodity forwards
6
4
–
–
-1
0
Of which: designated as cash flow hedges
6
4
–
–
-1
0
Total derivative financial instruments
9,263
10,208
141
113
-37
-76
1 Maturity less than 1 year with the exception of forward exchange contracts for intragroup financing with a nominal volume of 400 million euros (previous year: 400 million euros) and a positive fair
value of 10 million euros (previous year: 34 million euros), as well as hedges of a net investment in a foreign operation with a nominal volume of 114 million euros (previous year: 114 million euros)
and a negative fair value of -5 million euros (previous year: -1 million euros).
2 Fair values including accrued interest and excluding valuation allowance for counterparty credit risk of 0 million euros (previous year: 0 million euros).
3 Nominal value reporting year: 350 million British pounds and 70 million US dollars (previous year: 350 million British pounds and 70 million US dollars).
4 Nominal value reporting year: 300 million US dollars (previous year: 300 million US dollars).
We determine the fair value of forward exchange transactions and cross-currency interest rate swaps on the
basis of the reference rates issued by the European Central Bank for the reporting date, taking into account
forward premiums/forward discounts for the remaining term of the respective contract versus the contracted
foreign exchange rate. Interest rate hedges are measured on the basis of discounted cash flows expected in
the future, taking into account market interest rates applicable for the remaining term of the contracts.
These are indicated for the two most important currencies in the following table. It shows the interest rates
quoted on the interbank market in each case on December 31.
HENKEL ANNUAL REPORT 2024
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STATEMENTS
FURTHER INFORMATION
CREDITS/LEGAL
CONTACTS
FINANCIAL CALENDAR
Interest rates in percent p.a.
Terms, each to December 31
Euro
US dollar
2023
2024
2023
2024
1 month
3.88
2.91
5.38
4.32
3 months
3.87
2.67
5.33
4.30
6 months
3.21
2.12
4.76
4.25
1 year
2.55
1.98
4.07
4.18
2 years
2.30
1.99
3.75
4.08
5 years
2.22
2.03
3.60
4.04
10 years
2.19
2.06
3.53
4.07
In measuring derivative financial instruments, counterparty credit risk is taken into account with an adjustment
to the unsecured fair values concerned, determined on the basis of credit risk premiums. The adjustment
relating to fiscal 2024 amounts to 0 million euros (previous year: 0 million euros). Changes in credit risk are
recognized through profit or loss in financial result.
Depending on their fair value and their maturity on the reporting date, derivative financial instruments are
included in current or non-current financial assets (positive fair value) or in current or non-current financial
liabilities (negative fair value).
Most of the currency forwards served to hedge risks arising from trade accounts receivable and payable, and
those pertaining to Group financing.
Fair value hedges
A fair value hedge hedges fluctuations in the fair value of recognized assets and liabilities or unrecognized
firm commitments which arise from a specific risk. The changes in the fair values of the hedging instruments
and of the hedged items resulting from the hedged risk are simultaneously recognized through profit or loss
in other financial result.
To hedge the fair value risk of a fixed-rate bond issued by Henkel AG & Co. KGaA in September 2022 with a
nominal volume of 650 million euros, interest rate swaps with identical nominal volumes and the same
term were used in both fiscal 2024 and the previous year as hedging instruments in a fair value hedge. The
hedged underlying is recognized under non-current borrowings.
HENKEL ANNUAL REPORT 2024
301
THE COMPANY
SHARES AND BONDS
COMBINED MANAGEMENT
REPORT
CONSOLIDATED FINANCIAL
STATEMENTS
FURTHER INFORMATION
CREDITS/LEGAL
CONTACTS
FINANCIAL CALENDAR
Fair value hedges and ineffective portions
in million euros
2023
2024
Carrying amounts of hedged items (net of accrued interest)
640
648
Of which: cumulative hedge-related adjustments
-8
-1
Change in the carrying amounts of hedged items in the period
16
7
Change in the carrying amounts of the hedging instruments in the period
-16
-7
Ineffective portion
–
–
Cash flow hedges
A cash flow hedge hedges fluctuations in future cash flows from recognized assets and liabilities, unrecog-
nized firm commitments, and highly probable forecasted transactions arising from a specific risk. The Henkel
Group uses this instrument to hedge currency, interest rate, and commodity price risks. The effective portion
of the change in fair value of the cash flow hedge is initially recognized in equity under cash flow hedge re-
serve. The ineffective portion of the change in value is recognized directly through profit or loss in financial
result or operating profit, depending on the hedged item. Henkel exercises its right to choose to also initially
recognize changes in value of non-designated components of hedging instruments – such as the forward
component and foreign currency basis spreads of currency forwards and the foreign currency basis spreads
of cross-currency interest rate swaps – in equity under hedging cost reserve. Amounts recognized in the re-
serves are released through profit or loss in the same period in which the hedged item impacts profit or loss.
If a cash flow hedge results in the recognition of a non-financial asset, the amounts recognized in equity are
included as part of the cost when the asset is recognized (“basis adjustment“).
Cash flow hedge reserve (net of deferred taxes)
in million euros
At
Jan. 1
Hedge results
Reclassifications
to the statement
of income
Reclassifications to
inventories
(basis adjustment)
At
Dec. 31
2024
-209
-69
24
-0
-253
2023
-176
103
-140
4
-209
HENKEL ANNUAL REPORT 2024
302
THE COMPANY
SHARES AND BONDS
COMBINED MANAGEMENT
REPORT
CONSOLIDATED FINANCIAL
STATEMENTS
FURTHER INFORMATION
CREDITS/LEGAL
CONTACTS
FINANCIAL CALENDAR
Hedging cost reserve (net of deferred taxes)
in million euros
At
Jan. 1
Hedge results
Reclassifications
to the statement
of income
Reclassifications to
inventories
(basis adjustment)
At
Dec. 31
2024
3
-20
19
2
5
2023
5
-40
39
-1
3
The reserves disclosed in equity essentially relate to currency hedges for past acquisitions, anticipated sales,
planned inventory purchases, and for our foreign currency bonds. The cash flow hedge reserve of -205 mil-
lion euros as of December 31, 2024, (previous year: -205 million euros) was attributable to results from
hedges that were no longer subject to hedge accounting.
Currency risk
As part of its risk management, the Henkel Group hedges fluctuations in cash flows of planned sales and inven-
tory purchases in foreign currencies against currency risk. Currency forwards or recognized receivables and
payables are used as hedging instruments. They are all due within one year. In the case of currency forwards,
no ineffective portions arise since the Group only designates the spot component as the hedging instru-
ment. Changes in the non-designated components of the derivatives over the term of the hedge are recog-
nized in the hedging cost reserve. The hedge ratio is determined individually, depending on the relevant
strategy for each currency. The hedging rates for major currencies are shown in the following table:
Hedging rates for sales and inventory purchases
2024
in million euros
Nominal
Weighted
hedging rate
US dollar
114
1.04
Canadian dollar
80
1.50
Chinese yuan
43
7.76
Polish zloty
27
4.34
Mexican peso
24
21.98
HENKEL ANNUAL REPORT 2024
303
THE COMPANY
SHARES AND BONDS
COMBINED MANAGEMENT
REPORT
CONSOLIDATED FINANCIAL
STATEMENTS
FURTHER INFORMATION
CREDITS/LEGAL
CONTACTS
FINANCIAL CALENDAR
An addition to the reserves (net of deferred taxes) of -40 million euros (previous year: 19 million euros) re-
lates to currency hedges of planned inventory purchases and currency hedges of planned sales against
fluctuating spot rates. Of the changes in hedge values recognized in equity in the reporting period, losses of
1 million euros (previous year: losses of 1 million euros) were reclassified to cost of hedged inventories with-
out affecting profit or loss while losses within the framework of hedging planned sales of 8 million euros
(previous year: gains of 47 million euros) were reclassified to operating profit through profit or loss. The pos-
itive and negative fair values of the derivatives contracted as a currency hedge of planned inventory purchases
and as a currency hedge of budgeted sales amounted to 9 million euros (previous year: 25 million euros)
and -36 million euros (previous year: -9 million euros) respectively. The cash flows from these currency deriv-
atives, like the cash flows from the hedged inventory purchases and the hedged sales, are expected to
occur and affect operating profit in the next fiscal year when the inventories are used and the sales revenue
is realized.
In addition to the currency derivatives, foreign currency trade accounts payable are designated as hedging
instruments for planned sales. The carrying amount of the liabilities designated as hedges amounted to
582 million euros (previous year: 472 million euros). The cash flows from these liabilities and the cash flows
from the hedged sales are expected to occur, and affect operating profit, in the next fiscal year. The hedge
transactions did not produce any ineffective portions.
In addition, hedges of existing and planned intragroup financing arrangements in US dollars are recognized
as cash flow hedges if their valuation effects cannot be fully eliminated in the consolidated financial state-
ments. The hedges do not contain any ineffective portions since the Group only designates the spot compo-
nent as the hedging instrument. Changes in the non-designated components of the derivatives over the
term of the hedge are recognized in the hedging cost reserve. In the year under review, hedging operations
resulted in an addition to the reserves (net of deferred taxes) of -27 million euros (previous year: 12 million
euros). Additions to the cash flow hedge reserve in the reporting year and the previous year were reclassi-
fied in full in each respective year to profit or loss. In fiscal 2024, losses of 24 million euros (previous year:
gains of 14 million euros) were reclassified to other financial result, where the valuation effects from intragroup
financing arrangements are also recognized. In the year under review, losses of 7 million euros (previous
year: losses of 7 million euros) were reclassified through profit or loss from the hedging cost reserve to the
interest result. As of December 31, 2024, the positive fair values of the respective derivatives totaled 10 mil-
lion euros (previous year: 34 million euros). The cash flows from these currency derivatives, like the cash
flows from the hedged intragroup financing arrangements, are expected to occur within the next three years.
HENKEL ANNUAL REPORT 2024
304
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COMBINED MANAGEMENT
REPORT
CONSOLIDATED FINANCIAL
STATEMENTS
FURTHER INFORMATION
CREDITS/LEGAL
CONTACTS
FINANCIAL CALENDAR
In addition, cross-currency interest rate swaps or rolling currency forwards are used to hedge currency risks
arising in connection with interest and principal payments in foreign currencies relating to Group funding.
Fixed payments in foreign currencies are converted into fixed-rate payments in euros through cross-currency
interest rate swaps. The hedging rates for the bonds issued in foreign currencies are shown in the table below:
Bond hedging rates
2024
Bond maturity
Nominal
Weighted hedging
rate in euros
7/7/2025
70 million US dollars
1.12
9/30/2026
350 million GB pounds
0.88
The hedging instruments have been structured and designated such that the occurrence of ineffectiveness
has been eliminated. Changes in the non-designated foreign currency basis spreads over their duration are
recognized in hedging cost reserve. The cash flows from the cross-currency interest rate swap that are at-
tributable to the interest payments were recognized proportionately for the reporting period through profit
or loss as an interest expense. The term of the cross-currency interest rate swaps is matched to the term of
the respective bond.
Interest rate risk
As was also the case in fiscal 2023, we hedged part of the risk of interest rate changes in connection with our
commercial paper program using interest rate swaps with a nominal volume of 300 million US dollars (pre-
vious year: 300 million US dollars) in the year under review. The swaps were designated as hedging instruments
in cash flow hedges. Because of the revolving nature of our commercial paper borrowings, the interest pay-
ments in US dollars are variable and were converted into fixed-interest payments through the interest rate
swap. Both in fiscal 2024 and the previous year, we contracted interest rate swaps to hedge the fair value risk
of the fixed-rate bond issued in September 2022 with a nominal volume of 650 million euros. The interest
rate swaps were designated as hedging instruments used in a fair value hedge. The interest rate swaps were
used to convert the interest payments on the bond to variable payments.
HENKEL ANNUAL REPORT 2024
305
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Commodity price risk
Payments for planned commodity purchases are selectively hedged against fluctuations due to changes
in the purchase prices of raw materials. Commodity forwards are used to hedge this risk. They are all due
within one year. The Group only designates the commodity price component of the planned raw material
purchases. Other price components, such as transportation costs, are not designated. Accordingly, there are
no ineffective portions.
During fiscal 2024, the Henkel Group hedged exposures to clearly identifiable palm kernel oil, kerosene and
natural gas components. In accounting for designated hedging relationships, the gains arising from the
derivatives designated as hedging instruments amounting to 0 million euros net of deferred taxes (previous
year: losses of 1 million euros) were recognized as additions to the reserve for cash flow hedges. On expiry
of the hedging relationships, losses of 0 million euros (previous year: losses of 2 million euros) recognized in
equity in the fiscal year were reclassified directly to the cost of the hedged inventories (basis adjustment).
As of December 31, 2024, contracts hedging the risk of commodity prices had positive and negative fair
values of 0 million euros (previous year: 0 million euros) and -0 million euros (previous year: -1 million euros)
respectively.
Hedges of net investments in foreign operations
The accounting treatment of hedges of net investments in foreign operations against translation risk is similar
to that applied to cash flow hedges. The gain or loss arising from the effective portion of the hedging instru-
ment is recognized in the reserve for hedges of net investments in foreign operations, with the ineffective
portion recognized directly through profit or loss. A bond issued by Henkel with a nominal volume of
250 million US dollars, which is included under non-current borrowings, and also the spot components of
currency forwards, were used as hedging instruments. As of December 31, 2024, the positive and negative
market values of these currency forwards amounted to 0 million euros (previous year: 1 million euros) and
-8 million euros (previous year: -1 million euros) respectively. In addition, current liabilities to banks with a
nominal volume of 4,960 million Chinese yuan were designated as hedging instruments in fiscal 2024. The
carrying amount of these liabilities to banks was 654 million euros as of December 31, 2024. The design of
the hedging relationships ensured there were no ineffective portions. For the non-designated forward
component and the currency basis spreads of the currency forwards used as hedging instruments, Henkel
exercises its right to also recognize these in equity in the hedging cost reserve insofar as they relate to the
hedged item.
HENKEL ANNUAL REPORT 2024
306
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STATEMENTS
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The gains or losses recognized directly in equity in connection with the hedges of net investments in foreign
operations remain there until disposal of the net investment. The changes in non-designated components of
hedges that are recognized in equity are reclassified pro rata temporis to the statement of income over the
term of the hedge.
The reserve for hedges of net investments in foreign operations relates essentially to translation risks arising
from net investments in Swiss francs, US dollars, Chinese yuan, Thai baht and British pounds. As of Decem-
ber 31, 2024, an amount of 30 million euros (previous year: 30 million euros) of the reserve was attributable
to the results from hedges for which the associated contracts expired in previous years.
Reserve for hedges of net investments in foreign operations (net of deferred taxes)
in million euros
At
Jan. 1
Addition
(recognized
in equity)
Release
(recognized
through
profit or loss)
At
Dec. 31
2024
39
-17
–
23
2023
36
10
-6
39
Reserve for cost of hedges of net investments in foreign operations (net of deferred taxes)
in million euros
At
Jan. 1
Addition
(recognized
in equity)
Release
(recognized
through
profit or loss)
At
Dec. 31
2024
-4
2
-1
-3
2023
–
-4
0
-4
Risks arising from financial instruments, and risk management
As a globally active corporation, Henkel is exposed in the course of its ordinary business operations to credit
risks, liquidity risks and market risks (currency translation, interest rate and other price risks). The purpose
of financial risk management is to restrict the exposure arising from operating activities through the use of
selective derivative and non-derivative hedges. Henkel uses derivative financial instruments exclusively for
the purposes of risk management. Without these instruments, Henkel would be exposed to higher financial
risks. Changes in exchange rates, interest rates or commodity prices can lead to significant fluctuations in
the fair values of the derivatives used. These variations in fair value should not be regarded in isolation from
the hedged items, as derivative and hedged item constitute a unit in terms of countervailing fluctuations.
HENKEL ANNUAL REPORT 2024
307
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STATEMENTS
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CONTACTS
FINANCIAL CALENDAR
Management of currency, interest rate and liquidity risks is based on the treasury guidelines introduced by
the Management Board, which are binding on the entire corporation. These guidelines define the targets,
principles and competencies of the Group Treasury unit. They also describe the fields of responsibility and
establish the distribution of these responsibilities between Group Treasury and Henkel’s subsidiaries. The
Management Board is regularly and comprehensively informed of all major risks and of all relevant hedging
transactions and arrangements. A description of the objectives and fundamental principles adopted in capital
management can be found in the combined management report on pages 145 and 146. There were no major
risk clusters in the reporting period. Appropriate details are provided in the description of the individual risks.
Credit risk
In the course of its business activities with third parties, the Henkel Group is inherently exposed to global
credit risk arising from both its operating business and its financial investments. This risk derives from the
possibility of the contractual party not fulfilling its obligations.
The maximum credit risk arising from financial assets not subject to the impairment rules of IFRS 9 – exclud-
ing any collateral provided – is reflected by the carrying amounts of the financial assets recognized in the
statement of financial position and presented as follows:
Maximum risk position
in million euros
Dec. 31, 2023
Dec. 31, 2024
Financial assets measured at fair value through profit or loss
269
294
Derivative financial instruments included in a designated hedging relationship
108
71
Equity instruments measured at fair value through other comprehensive income
129
138
Total carrying amounts
507
504
Given that collateral has been provided, the actual credit risk is significantly lower and is discussed in detail
in the following. Other financial assets include 194 million euros representing receivables from Henkel Trust
e.V. and an external pension fund (previous year: 176 million euros), which constitutes the largest of all the
financial assets. Given the investment structure and rules of Henkel Trust e.V. and of the external pension fund,
the credit risk is very minor. Further details of risk concentrations are discussed in the following.
HENKEL ANNUAL REPORT 2024
308
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STATEMENTS
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CONTACTS
FINANCIAL CALENDAR
Under IFRS 9, valuation allowances for expected credit losses (Expected Loss Model) must be recognized for
all financial assets measured at amortized cost and for all debt instruments measured at fair value through
other comprehensive income.
IFRS 9 provides a three-level method for this purpose. Valuation allowances are accrued on the basis either
of the 12 months expected losses (level 1), or of the lifetime expected losses if the credit risk has increased
significantly since initial recognition (level 2), or if the asset is credit-impaired (level 3). The simplified approach
is adopted, however, for most of the financial assets, including trade accounts receivable with no material
financing component. As such, the expected credit losses are always determined for the full lifetime of the
financial instruments.
To calculate the expected credit losses, counterparties are grouped by similar credit default risks. Individual
valuation allowances are made on a case-by-case basis in response to specific circumstances and risk indica-
tors. Both empirical data, such as historical default rates, and forward-looking information, such as individual
and macroeconomic circumstances, are considered when determining the amounts of the valuation allow-
ances. If a counterparty’s credit rating is deemed to be impaired – following noticeable changes in payment
behavior or application for bankruptcy, for example –, all outstanding amounts relating to that counterparty
are subjected to a valuation allowance. The level of expected loss is determined on the basis of individual
assessment. Valuation allowances and increases thereto are always recognized through profit or loss. If the
expected credit losses decrease, a corresponding amount of the risk provision is released through profit or loss.
A financial asset is derecognized if it is reasonably judged to be unlikely that the corresponding cash flows
will be recoverable in part or in whole, for example after completion of insolvency proceedings or after con-
sideration of other local law circumstances. If an outstanding receivable is judged to be unrecoverable, the
valuation allowance already in place is utilized and the remaining net amount outstanding is stated as an
expense and derecognized.
HENKEL ANNUAL REPORT 2024
309
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STATEMENTS
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FINANCIAL CALENDAR
Trade accounts receivable and other financial assets in Henkel’s operating business
In its operating business, Henkel is confronted by progressive concentration and consolidation on the cus-
tomer side, as reflected in the receivables from individual customers. As of December 31, 2024, the USA,
China and Germany represented the highest risk concentration at country level. Of the total trade accounts
receivable, customers based in the USA accounted for 20 percent as at the reporting date. Customers based
in China accounted for 12 percent and customers based in Germany for 9 percent of all trade accounts re-
ceivable. The risk concentration was much lower at individual customer level. Receivables from customers
with a high credit risk rating accounted for about 7 percent of all trade accounts receivable as at the report-
ing date. These risks are monitored regularly at the global and regional level and steps are taken to mitigate
exposure.
Our credit risk management system operating on the basis of a globally applied corporate standard entitled
“Customer Credit Management” ensures that credit risks are constantly monitored and bad debts minimized.
This corporate standard, which applies to both new and existing customers, governs the risk classification
and allocation of credit limits based on individual analyses of customers’ creditworthiness derived from both
internal and external financial information, and ensures the continuous monitoring of the risk of bad debts.
We monitor our key customer relationships at global, regional and local levels. In addition, risk-mitigating
measures (such as trade credit insurance) are put in place for most countries and customers worldwide.
Collateral received and other safeguards include country-specific and customer-specific protection afforded
by credit insurance, letters of credit in the export business and, for example, sureties, guarantees and cover
notes. The credit risk associated with trade accounts receivable is, moreover, reduced globally through ex-
cess-of-loss credit insurance. The insurance covers trade accounts receivable starting at a specific amount
and includes an aggregate first loss deductible as well as a small percentage deductible.
In order to reflect the fact that some of our customers might experience economic difficulties in connection
with the impacts of the war in Ukraine and the conflict in the Middle East or current macroeconomic risks,
higher default probabilities than in previous years were assumed in some cases when measuring valuation
allowances on trade accounts receivable. These probabilities were determined on the basis of expert assess-
ments regarding the economic impacts of the current developments and with reference to in-house and ex-
ternal information about the financial status of individual customers and customer groups.
HENKEL ANNUAL REPORT 2024
310
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STATEMENTS
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CONTACTS
FINANCIAL CALENDAR
Valuation allowances on trade accounts receivable by risk category as of December 31, 2023
Risk categories
Probability
of default1
Gross before
deduction of
collateral and
value-added tax
in million euros
Net for deter-
mining the
valuation
allowance in
million euros
Valuation
allowance in
million euros
Low risk
0.1%
1,740
760
2
Moderate risk
0.3% to 0.8%
1,275
520
13
High risk
2.6% to 17.8%
194
99
16
Individual assessment
individual
28
24
11
Default
100%
68
64
63
SMEs and microbusinesses
6.8%
114
96
6
Total
3,419
1,563
112
1 Average likelihood of default before case-by-case analysis, and adjustments to reflect the impacts of the war in Ukraine,
the Middle East crisis and of current macroeconomic risks.
Valuation allowances on trade accounts receivable by risk category as of December 31, 2024
Risk categories
Probability
of default1
Gross before
deduction of
collateral and
value-added tax
in million euros
Net for deter-
mining the
valuation
allowance in
million euros
Valuation
allowance in
million euros
Low risk
0.1%
1,661
792
3
Moderate risk
0.4% to 0.8%
1,405
570
13
High risk
2.3% to 16.0%
233
99
13
Individual assessment
individual
21
19
7
Default
100%
66
63
63
SMEs and microbusinesses
5.1%
111
90
5
Total
3,497
1,634
103
1 Average likelihood of default before case-by-case analysis, and adjustments to reflect the impacts of the war in Ukraine,
the Middle East crisis and of current macroeconomic risks.
HENKEL ANNUAL REPORT 2024
311
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STATEMENTS
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FINANCIAL CALENDAR
Of the gross amount before deduction of collateral and value-added tax of 3,497 million euros (previous
year: 3,419 million euros), positions worth in total 1,863 million euros (previous year: 1,856 million euros)
were deducted for which no valuation allowances were required. Of this figure, 1,581 million euros (previous
year: 1,645 million euros) relates to collateral received, and 282 million euros (previous year: 210 million euros)
to refundable sales tax. Accordingly, the net base for determining valuation allowances was 1,634 million
euros (previous year: 1,563 million euros).
The carrying amount of trade accounts receivable of which the term was renegotiated because they would
have otherwise been more than 30 days overdue, was 3 million euros (previous year: 13 million euros).
Receivables of 63 million euros (previous year: 64 million euros) were written off in full, but not yet derecog-
nized as they are still subject to ongoing collection proceedings.
Apart from financial receivables from third parties amounting to 225 million euros (previous year: 31 million
euros), no valuation allowances exist in respect of other financial assets in our operating business because
the credit risk is considered to be very low. A valuation allowance of 19 million euros exists for financial receiva-
bles from third parties (previous year: 18 million euros).
HENKEL ANNUAL REPORT 2024
312
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FINANCIAL CALENDAR
Financial investments
Credit risks also arise from financial investments such as cash at banks, securities and the positive fair value
of derivatives. Such exposure is limited by our Group Treasury specialists through the selection of counter-
parties with strong credit ratings, and limitations on the amounts allocated to individual investments. In finan-
cial investments and derivatives trading with German and international banks, we only enter into transac-
tions with counterparties of high financial standing. We invest primarily in securities from issuers with an in-
vestment grade rating. Our cash deposits can be liquidated at short notice. Our financial investments are
broadly diversified across various counterparties and various financial assets. Credit ratings and investment
limits are continuously monitored and steps taken if fixed thresholds for ratings and credit default swaps
(CDS) are exceeded. To minimize the credit risk, we agree netting arrangements with counterparties to offset
bilateral receivables and obligations involving those counterparties. We additionally enter into collateral
agreements with selected banks, on the basis of which reciprocal sureties are established at least twice a
month to secure the fair values of contracted derivatives and other claims and obligations. The netting ar-
rangements only provide for a contingent right to offset transactions conducted with a contractual party.
Accordingly, associated amounts can be offset only under certain circumstances, such as the insolvency of
one of the contractual parties. Thus, the netting arrangements do not meet the offsetting criteria under
IAS 32 (Financial Instruments: Presentation). The following table provides an overview of financial assets and
financial liabilities from derivatives that are subject to netting, collateral or similar arrangements:
Financial assets and financial liabilities from derivatives subject to netting, collateral,
or similar arrangements
Gross amount recog-
nized in the statement
of financial position1
Amount eligible
for offsetting
Financial collateral
received/provided
Net amount
At December 31
in million euros
2023
2024
2023
2024
2023
2024
2023
2024
Financial assets
141
113
37
75
88
55
16
-17
Financial liabilities
37
76
37
75
5
19
-5
-18
1 Fair values excluding valuation allowance of 0 million euros relating to counterparty credit risk (previous year: 0 million euros).
HENKEL ANNUAL REPORT 2024
313
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CONSOLIDATED FINANCIAL
STATEMENTS
FURTHER INFORMATION
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CONTACTS
FINANCIAL CALENDAR
In addition to netting and collateral arrangements, investment limits are set, based on the ratings of the
counterparties, in order to minimize credit risk. These limits are monitored and adjusted regularly. When
determining the limits, we also apply certain other indicators, such as the pricing of credit default swaps by
the banks. A valuation allowance of 0 million euros exists to cover the remaining credit risk relating to the
positive fair values of derivatives (previous year: 0 million euros).
In the case of financial assets held by Henkel in connection with EU emission rights swap contracts, the un-
derlying emission rights are provided as collateral to the Henkel Group. They may be utilized even if the
debtor is not in default of payment, since Henkel is only committed to returning the same number and speci-
fication of emission rights. The fair value of the non-financial assets held as collateral as of December 31, 2024
was 204 million euros (previous year: none). Because the financial assets are fully backed, the credit risk was
classified as absolutely minor, and no valuation allowance was recognized.
Liquidity risk
Liquidity risk is defined as the risk of an entity failing to meet its financial obligations at any given time. We
mitigate this risk through our long-term management strategy of using financing instruments in the shape
of bonds issued in different currencies with variously staggered terms. This is possible with the support of
our existing debt issuance program comprising a total volume of 10 billion euros. We predominantly invest
cash in financial assets traded in a liquid market in order to ensure that they can be sold at any time to re-
ceive liquid funds or to manage liquidity in the short term. We also use our US dollar and euro commercial
paper programs comprising 2 billion US dollars and 2 billion euros respectively for short-term liquidity man-
agement. In order to ensure the financial flexibility of Henkel at any time, the liquidity within the Group is
largely centralized and managed across the Group through the use of cash pools. In addition, the Henkel
Group has at its disposal a confirmed syndicated credit line of 2 billion euros. The term of this credit line
was extended for five years in July 2024 and can be carried through up to July 2029 with two one-year extension
options. Additionally, Henkel has access to bilateral loans of 0.1 billion euros with a revolving term of up to
one year. Our credit rating is regularly assessed by the rating agencies S&P, Moody’s and Scope Ratings. We
intend to maintain our ratings within a “single A” target corridor.
HENKEL ANNUAL REPORT 2024
314
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REPORT
CONSOLIDATED FINANCIAL
STATEMENTS
FURTHER INFORMATION
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CONTACTS
FINANCIAL CALENDAR
As part of its strategic supplier management concept, Henkel offers selected suppliers around the world the
option to participate in its supplier finance arrangements (supplier finance programs). Further details are
discussed in Note 21 on page 283. The payment targets agreed with suppliers for the relevant trade accounts
payable are not contractually tied to the existence of supplier finance arrangements. They are used to finance
suppliers and do not therefore expose Henkel to any material liquidity or concentration risk.
Overall, the liquidity risk of the Group is therefore very low.
The maturity structure of the original and derivative financial liabilities within the scope of IFRS 7 based on
undiscounted cash flows, and thus the risk cluster in relation to liquidity risk, is shown in the following table:
Cash flows from financial liabilities 2023
in million euros
Remaining term
Dec. 31, 2023
Carrying
amounts
Up to
1 year
Between
1 and 5 years
More than
5 years
Dec. 31, 2023
Total
cash flow
Bonds
1,865
29
1,476
510
2,015
Commercial paper1
275
275
–
–
275
Liabilities to banks
129
127
3
–
130
Lease liabilities
624
134
317
259
710
Trade accounts payable
4,075
4,075
–
–
4,075
Sundry financial instruments2
78
60
17
–
78
Original financial instruments
7,046
4,701
1,813
769
7,282
Expected inflow from interest rate and cross-currency interest rate swaps
4
17
51
–
68
Expected outflow for interest rate and cross-currency interest rate swaps
25
47
–
72
Other derivative financial instruments
32
32
–
–
32
Derivative financial instruments
37
40
-4
–
36
Total
7,082
4,741
1,808
769
7,318
1 From the euro and US dollar commercial paper program (total volume: 2 billion euros and 2 billion US dollars).
2 Sundry financial instruments include amounts due to customers, and finance bills.
HENKEL ANNUAL REPORT 2024
315
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STATEMENTS
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FINANCIAL CALENDAR
Cash flows from financial liabilities 2024
in million euros
Remaining term
Dec. 31, 2024
Carrying
amounts
Up to
1 year
Between
1 and 5 years
More than
5 years
Dec. 31, 2024
Total
cash flow
Bonds
1,910
122
1,459
508
2,088
Commercial paper1
387
387
–
–
387
Liabilities to banks
1,279
1,040
239
–
1,279
Lease liabilities
713
141
399
276
816
Trade accounts payable
4,241
4,241
–
–
4,241
Sundry financial instruments2
104
87
18
–
104
Original financial instruments
8,634
6,018
2,114
783
8,916
Expected inflow from interest rate and cross-currency interest rate swaps
–
–
–
–
–
Expected outflow for interest rate and cross-currency interest rate swaps
–
–
–
–
Other derivative financial instruments
76
76
–
–
76
Derivative financial instruments
76
76
–
–
76
Total
8,710
6,094
2,114
783
8,992
1 From the euro and US dollar commercial paper program (total volume: 2 billion euros and 2 billion US dollars).
2 Sundry financial instruments include amounts due to customers, and finance bills.
Market risk
Market risk exists where the fair value or future cash flows of a financial instrument may fluctuate due to
changes in market prices. Market risks primarily take the form of currency risk, interest rate risk and com-
modity price risk.
Group Treasury manages currency exposure and interest rates centrally for the Group and is therefore re-
sponsible for all transactions involving financial derivatives and other financial instruments. Trading, Treasury
Controlling and Settlement (front, middle and back offices) are separated both physically and in terms of
organization. The parties to the contracts are German and international banks which Henkel monitors regu-
larly, in accordance with Group-wide corporate treasury guidelines, for creditworthiness and the quality of
their quotations. Financial derivatives are used to manage currency exposure, interest rate and other price
risks in connection with operating activities and the resultant financing requirements, again in accordance
with the corporate treasury guidelines. Financial derivatives are entered into solely for hedging purposes.
HENKEL ANNUAL REPORT 2024
316
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STATEMENTS
FURTHER INFORMATION
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CONTACTS
FINANCIAL CALENDAR
The currency and interest rate risk management of the Group is supported by an integrated treasury system
which is used to identify, measure and analyze the Group’s currency exposure and interest rate risks. In this
context, “integrated” means that the entire process from the conclusion of financial transactions to their entry
in the accounts is covered. Much of the currency trading takes place on internet-based, multibank trading
platforms. The foreign currency transactions concluded are automatically transferred into the treasury system.
The currency exposure and interest rate risks reported by all subsidiaries under standardized reporting pro-
cedures are likewise integrated into the treasury system by data transfer. As a result, it is possible to retrieve
and measure at any time all currency and interest rate risks across the Group and all derivatives entered into
to hedge the exposure to these risks. The treasury system supports the use of various risk concepts.
Market risk is monitored on the basis of sensitivity analyses and value-at-risk computations. Sensitivity anal-
yses enable estimation of potential losses, future gains, fair values or cash flows of instruments susceptible
to market risks arising from one or several selected hypothetical changes in foreign exchange rates, interest
rates, commodity prices or other relevant market rates or prices over a specific period. We use sensitivity
analyses in the Henkel Group because they enable reasonable risk assessments to be made on the basis of
direct assumptions (e.g. an increase in interest rates). Value-at-risk analyses reveal the maximum potential
future loss of a certain portfolio over a given period based on a specified probability level.
Currency risk
The global nature of our business activities results in a large number of cash flows in different currencies.
This transaction risk arises from possible exchange rate fluctuations causing changes in the value of future
foreign currency cash flows. The hedging of the resultant exchange rate risks forms a major part of our
central risk management activity. Transaction risks arising from our operating business are partially avoided
by the fact that we manufacture our products in those countries in which they are sold. Residual transaction
risks on the operating side are proactively managed by Group Treasury. This includes the ongoing assess-
ment of the overall currency risk and the development of appropriate hedging strategies. The objective of
currency hedging is to fix prices based on hedging rates so that we are protected from future adverse fluctu-
ations in exchange rates. Because we limit our potential losses, any negative impact on profits is restricted.
The transaction risk arising from major financial payables and receivables is extensively hedged. In order to
manage these risks, we primarily utilize currency forwards and cross-currency interest rate swaps. The deriv-
atives are designated as cash flow hedges and recognized accordingly in the financial statements or measured
at fair value through profit or loss. The currency risk that exists within the Group in the form of transaction
risk initially affects equity in the case of cash flow hedges, while all changes in the value of the other deriva-
tives are recognized directly in the statement of income.
HENKEL ANNUAL REPORT 2024
317
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STATEMENTS
FURTHER INFORMATION
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FINANCIAL CALENDAR
The following table shows the risk exposure for Henkel’s major currencies. The risk arises mainly from im-
ports and exports by Henkel AG & Co. KGaA and its foreign subsidiaries. Due to the international nature of
its activities, the Henkel Group has a portfolio of more than 50 different currencies.
Currency risk exposure1
in million euros
December 31, 2023
December 31, 2024
Total
currency risk
exposure
before
currency
hedging
Of which:
from planned
transactions
Net
currency risk
exposure after
currency
hedging
Total
currency risk
exposure
before
currency
hedging
Of which:
from planned
transactions
Net
currency risk
exposure after
currency
hedging
US dollar
387
715
6
589
851
91
Canadian dollar
93
89
22
116
106
27
Chinese yuan
136
104
36
91
57
14
British pound
59
55
33
90
79
60
Australian dollar
79
68
48
85
74
56
Others
973
860
695
986
783
707
Total
1,728
1,890
840
1,957
1,949
955
1 Transaction risk.
The value-at-risk pertaining to the transaction risk of the Henkel Group as of December 31, 2024 amounted
to 40 million euros after hedging (previous year: 55 million euros). The value-at-risk shows the maximum
expected risk of loss in a year as a result of currency fluctuations. Our value-at-risk analysis within the internal
risk reporting system assumes a time horizon of one year and a one-sided confidence interval of 95 percent,
as it comprehensively reflects the risk associated with one fiscal year. We adopt the variance-covariance
approach as our basis for calculation. Volatilities and correlations are determined using historical data. The
value-at-risk analysis is based on the book positions, the derivative financial instruments and the operating
planned positions in foreign currency, with a forecasting horizon of up to 12 months.
HENKEL ANNUAL REPORT 2024
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COMBINED MANAGEMENT
REPORT
CONSOLIDATED FINANCIAL
STATEMENTS
FURTHER INFORMATION
CREDITS/LEGAL
CONTACTS
FINANCIAL CALENDAR
Interest rate risk
Interest rate risk encompasses all potentially negative influences on profits, equity or cash flow in current or
future reporting periods arising from changes in interest rates. In the case of fixed-interest financial instru-
ments, changing capital market interest rates result in a fair value risk, as the attributable fair values fluctuate
depending on those capital market interest rates. In the case of floating-interest financial instruments, a cash
flow risk exists because the interest payments may be subject to future fluctuations.
The financing and cash investment activities of the Henkel Group mainly take place on international money
and capital markets. The resultant financial liabilities and cash deposits are exposed to the risk of changing
interest rates. The aim of our centralized interest rate management is to reduce this risk by choosing fixed or
floating interest rate contracts and by using interest rate derivatives. Only those derivative financial instru-
ments that can be modeled, monitored and assessed in the risk management system may be used to hedge
the interest rate risk.
Henkel’s interest management strategy is essentially aligned to optimizing the net interest result for the
Group. The decisions made in interest management relate to the bonds, liabilities to banks and commercial
paper put in place to secure Group liquidity, the securities and time deposits used for cash investments, and
other interest-bearing financial instruments, such as intragroup financing arrangements. The financial instru-
ments exposed to interest rate risk are primarily denominated in euros and US dollars.
Depending on forecasts with respect to interest rate developments, Henkel enters into derivative financial
instruments, primarily interest rate swaps, in order to optimize the interest rate lock-down structure. In the
event of an expected rise in interest rate levels, Henkel protects its positions by transacting additional inter-
est rate derivatives as effective hedging instruments. In addition to interest obligations arising from the
fixed-rate US dollar bond, Henkel enters into cross-currency interest rate swaps to convert the bond denom-
inated in British pounds into fixed-rate euro obligations. Financial instruments with interest rates pegged for
less than twelve months are included in the calculation on a time-weighted basis. Interest rate swaps were
used to convert the interest on the euro bond issued in September 2022 to floating interest. All other finan-
cial instruments bear floating interest rates. The US dollar interest rate risk of intragroup financing arrange-
ments was mitigated by a long-term currency hedge with a nominal volume of 400 million US dollars.
HENKEL ANNUAL REPORT 2024
319
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COMBINED MANAGEMENT
REPORT
CONSOLIDATED FINANCIAL
STATEMENTS
FURTHER INFORMATION
CREDITS/LEGAL
CONTACTS
FINANCIAL CALENDAR
Our exposure to interest rate risk at the reporting dates was as follows:
Interest rate risk exposure
Carrying amounts
December 31, 2023
December 31, 2024
in million euros
Interest rate risk
exposure before
interest hedge
Interest rate risk
exposure after
interest hedge
Interest rate risk
exposure before
interest hedge
Interest rate risk
exposure after
interest hedge
Fixed-interest financial instruments
Euro
-977
-327
-987
-337
US dollar
-546
-841
-302
-591
Others
-187
-187
-467
-467
Total
-1,710
-1,355
-1,757
-1,395
Floating-interest financial instruments
Euro
634
-16
1,439
789
US dollar
-273
23
-567
-278
Chinese yuan
218
218
-266
-266
Polish zloty
103
103
109
109
Others
1,039
1,039
952
952
Total
1,722
1,367
1,667
1,306
The calculation of the interest rate risk is based on sensitivity analyses that assume a parallel shift of 100 basis
points in the interest curves of all currencies. When analyzing fair value risk, we calculate the hypothetical
fair value loss or gain of the relevant fixed-interest financial instruments as of the reporting date.
The risk of interest rate fluctuations with respect to the earnings of the Henkel Group per the basis point
value (BPV) analysis as described above is shown in the following table.
Interest rate risk
in million euros
2023
2024
Based on an interest rate change of 100 basis points
31
28
Of which:
Cash flow through profit and loss
14
13
Fair value recognized in equity through other comprehensive income
17
15
HENKEL ANNUAL REPORT 2024
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COMBINED MANAGEMENT
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CONSOLIDATED FINANCIAL
STATEMENTS
FURTHER INFORMATION
CREDITS/LEGAL
CONTACTS
FINANCIAL CALENDAR
When issuing sustainability-linked bonds, Henkel also committed to meet certain sustainability performance
targets. Failure by Henkel to meet these targets would result in a prospective increase in the interest rate on
the bonds (see Note 18 on pages 280 and 281).
Commodity price risk
Uncertainty with respect to commodity price development impacts the Group. Purchase prices for raw mate-
rials can affect the net assets, financial position and results of operations of Henkel. The risk management
strategy put in place by the Group management for safeguarding against procurement market risk is described
in more detail in the risks and opportunities report on pages 181 and 182. As a small part of the risk man-
agement strategy, cash-settled commodity forwards are entered into on the basis of forecasted purchasing
requirements in order to hedge future uncertainties with respect to commodity prices. Cash-settled com-
modity forwards are only used by Henkel where there is a direct relationship between the hedging derivative
and the physical underlying. Henkel uses hedge accounting for these hedging transactions, thus limiting the
temporary exposure to price risks related to holding commodity forwards. Developments in fair values and the
resultant risks are continuously monitored.
HENKEL ANNUAL REPORT 2024
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COMBINED MANAGEMENT
REPORT
CONSOLIDATED FINANCIAL
STATEMENTS
FURTHER INFORMATION
CREDITS/LEGAL
CONTACTS
FINANCIAL CALENDAR
NOTES TO THE CONSOLIDATED
STATEMENT OF INCOME
24 Sales and principles of revenue recognition
Sales relate exclusively to revenues from contracts with customers and, at 21,586 million euros (previous year:
21,514 million euros), came in above the level of the previous year.
Sales encompass the consideration received for the transfer of goods and services less direct sales deduc-
tions such as customer-related rebates, credits and other benefits paid or granted. Sales revenues are recog-
nized once control of the goods has been transferred, or the service provided. The timing of transfer of
control of the goods to a customer is determined by the underlying contract and the terms and conditions
of supply stipulated therein, or by international trade rules.
Sales represent the consideration that Henkel will likely receive in exchange for transferring the goods or
providing the service. Sales revenues may only be recognized when no substantial adjustments to the cumu-
lative recognized revenue are expected.
Pursuant to IFRS 15, Henkel does not recognize sales revenues for products that it expects to be returned. In
addition, empirical experience has shown that customers are justified in expecting invoice amounts to be
reduced in certain instances. The amounts of these expected refunds are also not recognized as sales. Henkel
draws on past return and refund statistics to quantify the expected returns and refunds; these are separated
by business unit and legal entity, and are subject to ongoing calculation and adjustment. Mathematical esti-
mates and assumptions are made with regard to the underlying analysis period for determining, among
other factors, the return and refund rates and the amount of sales to be adjusted by such rates, and also
with regard to observable volatilities.
HENKEL ANNUAL REPORT 2024
322
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COMBINED MANAGEMENT
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CONSOLIDATED FINANCIAL
STATEMENTS
FURTHER INFORMATION
CREDITS/LEGAL
CONTACTS
FINANCIAL CALENDAR
Henkel agrees payment terms that are standard in our industry; contracts with customers do not contain any
material financing components.
Warranty obligations do not constitute a separate performance obligation and are recognized as provisions
in accordance with IAS 37 (Provisions, Contingent Liabilities and Contingent Assets).
Services are generally provided in conjunction with the sale of goods, and recorded once the service has
been performed. The amount of sales revenues relating to the provision of services is less relevant than that
attributable to the transfer of goods.
For information on opening and closing balances of, and valuation allowances on receivables from contracts
with customers in fiscal 2024, please refer to our discussion of trade accounts receivable in Note 7 on page 258.
A breakdown of sales by business unit and region can be found in the Group segment report by business
unit on pages 217 and 218 and the key financials by region on page 219.
Henkel exercises its right to choose to refrain from disclosing transaction prices relating to any remaining
performance obligations, since the respective prerequisites are fulfilled.
Interest income is recognized on a time-proportion basis that takes into account the effective yield on the
asset and the interest rate in force. Dividend income from investments is recognized when the shareholders’
right to receive payment is legally established.
25 Cost of sales
Cost of sales amounted to 10,765 million euros (previous year: 11,853 million euros).
It comprises the cost of products and services sold and the purchase cost of merchandise sold. Cost of sales
includes the directly attributable cost of materials and primary production cost, plus indirect production
overheads including the production-related amortization/depreciation and impairment of intangible assets
and property, plant and equipment.
HENKEL ANNUAL REPORT 2024
323
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COMBINED MANAGEMENT
REPORT
CONSOLIDATED FINANCIAL
STATEMENTS
FURTHER INFORMATION
CREDITS/LEGAL
CONTACTS
FINANCIAL CALENDAR
26 Marketing, selling and distribution expenses
Marketing, selling and distribution expenses increased from 5,764 million euros to 6,132 million euros.
In addition to marketing organization and distribution expenses, this item comprises, in particular, advertising,
sales promotion and market research expenses. Also included here are the expenses of technical advisory
services for customers, valuation allowances on trade accounts receivable and amortization charges and
impairment losses on trademarks and other rights.
27 Research and development expenses
At 634 million euros, research and development expenses were higher year on year (previous year:
587 million euros).
The capitalization of research expenses is not permitted. Development expenditures are recognized as an
asset if all the criteria for recognition are met, the research phase can be clearly distinguished from the de-
velopment phase, and the expenditures can be attributed to distinct project phases. Currently, the criteria set
out in IAS 38 (Intangible Assets) for recognizing development expenditures are not all met with respect to
product and technology developments. This is due to a high level of interdependence within these develop-
ments and the difficulty of assessing which products will eventually be marketable.
28 Administrative expenses
Administrative expenses in the year under review totaled 1,176 million euros (previous year: 1,102 million euros).
Administrative expenses include personnel and material costs relating to the Group Management, Human
Resources, Purchasing, Accounting and IT functions, as well as the costs of managing and administering the
business units.
HENKEL ANNUAL REPORT 2024
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COMBINED MANAGEMENT
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CONSOLIDATED FINANCIAL
STATEMENTS
FURTHER INFORMATION
CREDITS/LEGAL
CONTACTS
FINANCIAL CALENDAR
29 Other operating income
Other operating income
in million euros
2023
2024
Gains on disposal of non-current assets and business units
15
11
Release of provisions
8
7
Insurance claim payouts
5
8
Sundry operating income
99
85
Total
127
111
Sundry operating income relates to a number of individual items arising from ordinary operating activities,
such as grants and subsidies, tax refunds for indirect taxes, and similar income.
30 Other operating expenses
Other operating expenses
in million euros
2023
2024
Losses on disposal of non-current assets and business units
-220
-16
Goodwill impairment
-1
–
Sundry operating expenses
-103
-143
Total
-324
-159
Sundry operating expenses include a number of individual items arising from ordinary operating activities,
such as fees, provisions for litigation and third-party claims, other taxes, and similar expenses. In fiscal 2024,
sundry operating expenses also included expenses of 38 million euros arising from the reclassification of
currency translation reserves in connection with the discontinuation of our business activities in Venezuela.
HENKEL ANNUAL REPORT 2024
325
THE COMPANY
SHARES AND BONDS
COMBINED MANAGEMENT
REPORT
CONSOLIDATED FINANCIAL
STATEMENTS
FURTHER INFORMATION
CREDITS/LEGAL
CONTACTS
FINANCIAL CALENDAR
31 Financial result
Financial result
in million euros
2023
2024
Interest result
-33
-12
Other financial result
-90
-96
Investment result
0
0
Total
-122
-108
Interest result
in million euros
2023
2024
Interest and similar income from third parties
56
89
Interest result from currency forwards hedging financial assets
17
12
Interest income
73
101
Interest to third parties
-86
-108
Interest result from currency forwards hedging financial liabilities
-20
-5
Interest expense
-106
-113
Total
-33
-12
Other financial result
in million euros
2023
2024
Interest result from net obligation (pensions)
-11
-16
Interest income from reimbursement rights (IAS 19)
5
5
Expenses from currency losses
-62
-76
Income from currency gains
45
55
Other financial expenses
-105
-103
Other financial income
37
38
Total
-90
-96
HENKEL ANNUAL REPORT 2024
326
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COMBINED MANAGEMENT
REPORT
CONSOLIDATED FINANCIAL
STATEMENTS
FURTHER INFORMATION
CREDITS/LEGAL
CONTACTS
FINANCIAL CALENDAR
Changes to the fair value of the forward component of currency forwards used to hedge the currency risks
associated with financial assets and liabilities are disclosed under interest result. The forward component of
a currency forward reflects the interest rate differential between two currencies at the time the transaction is
entered into and thus has the character of interest. The results from the development of the fair value of the
other components of the currency forwards, in particular the spot component, are shown as currency gains
or losses in other financial result.
Losses from adjustments to current purchasing power of the non-monetary assets and liabilities and of the
equity of our subsidiary in Türkiye of -58 million euros (previous year: -53 million euros) are recognized in
other financial expenses. Please see Note 23 on pages 296 and 297 for information on the net results of the
financial instruments by measurement category per IFRS 7, and the reconciliation of same to financial result.
32 Taxes on income
The breakdown of income tax expense/income reads as follows:
Income before tax and analysis of taxes
in million euros
2023
2024
Income before tax
1,888
2,723
Current taxes
520
598
Deferred taxes
29
93
Taxes on income
549
691
Tax rate
29.1%
25.4%
HENKEL ANNUAL REPORT 2024
327
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COMBINED MANAGEMENT
REPORT
CONSOLIDATED FINANCIAL
STATEMENTS
FURTHER INFORMATION
CREDITS/LEGAL
CONTACTS
FINANCIAL CALENDAR
Components of tax expense and income
in million euros
2023
2024
Current tax expense in the reporting year
552
606
Current tax expense global minimum tax (Pillar Two)
–
3
Current tax adjustments for prior years
-32
-11
Current taxes
520
598
Deferred tax expense from temporary differences
69
105
Deferred tax income from unused tax losses and other carry-forwards
-33
-2
Deferred tax income from tax credits
-11
-10
Deferred tax expense from changes in tax rates
1
–
Increase in valuation allowances on deferred tax assets
3
–
Deferred taxes
29
93
Deferred tax expense by items on the statement of financial position
in million euros
2023
2024
Intangible assets
4
97
Property, plant and equipment
-39
9
Financial assets
43
-14
Inventories
-2
-5
Other receivables and other assets
-34
-4
Special tax items
-4
-1
Provisions
-18
-43
Liabilities
93
9
Tax credits
-1
-1
Unused tax losses and other carry-forwards
-13
46
Total
29
93
We have summarized the individual company reports prepared on the basis of the tax rates applicable in
each country and taking into account consolidation procedures, in the reconciliation statement below. This
shows how the expected tax charge, based on the tax rate applicable to Henkel AG & Co. KGaA of 31.2 percent,
is reconciled to the effective tax charge disclosed.
HENKEL ANNUAL REPORT 2024
328
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COMBINED MANAGEMENT
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CONSOLIDATED FINANCIAL
STATEMENTS
FURTHER INFORMATION
CREDITS/LEGAL
CONTACTS
FINANCIAL CALENDAR
Tax reconciliation statement
in million euros
2023
2024
Income before tax
1,888
2,723
Tax rate (including trade tax) of Henkel AG & Co. KGaA
31.2%
31.2%
Expected tax charge
589
850
Tax reductions due to differing tax rates abroad
-140
-169
Tax reductions for prior years
-44
-34
Tax increases/reductions due to changes in tax rates
1
–
Tax increases due to the valuation of deferred tax assets relating to
unused tax losses and other carry-forwards and temporary differences
3
-41
Tax reductions due to tax-free income and other items
-54
-76
Tax reductions arising from additions and deductions for local taxes
-22
-19
Tax increases due to withholding taxes
46
101
Tax increases due to non-deductible expenses
170
76
Global minimum tax (Pillar Two)
–
3
Tax charge disclosed
549
691
Tax rate
29.1%
25.4%
Deferred taxes are calculated on the basis of tax rates that apply in the individual countries at the year-end
date or which have already been legally decided. In Germany, there is a uniform corporate income tax rate of
15 percent plus a solidarity surcharge of 5.5 percent. After taking into account trade tax, this yields an overall
tax rate of 31.2 percent. Deferred tax assets and liabilities are netted where they involve the same tax authority
and the same tax creditor.
The deferred tax assets and liabilities stated on the reporting date relate to the following items of the
consolidated statement of financial position, unused tax losses and tax credits:
HENKEL ANNUAL REPORT 2024
329
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COMBINED MANAGEMENT
REPORT
CONSOLIDATED FINANCIAL
STATEMENTS
FURTHER INFORMATION
CREDITS/LEGAL
CONTACTS
FINANCIAL CALENDAR
Allocation of deferred taxes
in million euros
Deferred
tax assets
Deferred
tax liabilities
Dec. 31, 2023¹
Dec. 31, 2024
Dec. 31, 2023¹
Dec. 31, 2024
Intangible assets
612
530
1,088
1,201
Property, plant and equipment
31
28
100
110
Financial assets
1
7
92
84
Inventories
23
26
4
1
Other receivables and other assets
86
166
152
228
Special tax items
–
–
19
18
Provisions
823
885
100
96
Liabilities
168
184
33
33
Tax credits
2
4
–
–
Unused tax losses and other carry-forwards
351
315
–
–
Amounts netted
-919
-1,030
-919
-1,030
Financial statement figures
1,178
1,115
669
741
1 Amended following the updated allocation of the purchase price for the shares in Composite Technology Intermediate, Inc.
The deferred tax assets relating to provisions in the financial statement of 885 million euros (previous year:
823 million euros) result in part from recognition and measurement differences with respect to pension obli-
gations. Of the deferred tax assets on unused tax losses and other carry-forwards, 145 million euros (previ-
ous year: 183 million euros) is attributable to tax loss carry-forwards, 152 million euros (previous year:
159 million euros) to other carry-forwards, and 18 million euros (previous year: 9 million euros) to interest
carry-forwards. The deferred tax liabilities of 1,201 million euros (previous year: 1,097 million euros) relating
to intangible assets are mainly attributable to business combinations. Deferred tax liabilities of 82 million
euros (previous year: 85 million euros) relating to the retained earnings of foreign subsidiaries have been
recognized due to the fact that these earnings will be distributed in the future.
A valuation allowance of 58 million euros for deferred tax assets arising from temporary differences was
reversed in the reporting year (previous year: 31 million euros).
We have summarized in the following table the expiry dates of unused tax losses and tax credits for which
no deferred tax assets have been recognized.
HENKEL ANNUAL REPORT 2024
330
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COMBINED MANAGEMENT
REPORT
CONSOLIDATED FINANCIAL
STATEMENTS
FURTHER INFORMATION
CREDITS/LEGAL
CONTACTS
FINANCIAL CALENDAR
Expiry dates of unused tax losses and other carry-forwards without deferred tax assets thereon
in million euros
Unused tax losses
corporate income tax
Unused tax losses
state/local taxes
Interest and other
carry-forwards
Capital losses
Tax credits
Dec. 31, 2023 Dec. 31, 2024 Dec. 31, 2023 Dec. 31, 2024 Dec. 31, 2023 Dec. 31, 2024 Dec. 31, 2023 Dec. 31, 2024 Dec. 31, 2023 Dec. 31, 2024
Expire within
1 year
43
3
–
–
–
–
–
–
–
–
2 years
–
17
–
–
–
–
–
–
–
–
3 years
–
5
–
–
–
–
–
–
–
–
more than 3 years
7
1
656
693
61
–
55
187
44
59
May be carried forward
without restriction
113
151
86
88
32
159
9
9
–
16
Total
163
177
742
781
93
159
64
196
44
75
A valuation allowance of 5 million euros for deferred tax assets arising from corporate tax loss carry-forwards
was reversed in the reporting year.
Of the unused tax losses for local income taxes, 693 million euros (previous year: 656 million euros) is mainly
attributable to unused US state tax losses (tax rate 5.2 percent [previous year: 5.3 percent]).
In some countries, different tax rates apply to unused tax losses arising from losses on the disposal of assets
than to operating profits, and in some cases losses on the disposal of assets may only be offset against gains
on the disposal of assets.
For one company in Germany that generated trade tax losses in the previous year, an excess of deferred tax
assets totaling 703 million euros (previous year: 741 million euros) was recognized on temporary differences,
other carry-forward expenses, and tax loss carry-forwards. In addition, a total of 72 million euros (previous
year: 130 million euros) was recognized as an excess of deferred tax assets on unused tax losses and tempo-
rary differences for a company in the Netherlands that suffered tax losses in the current year. Where neces-
sary, measures were taken to ensure the availability of sufficient taxable income in future, so that our current
position is that the deferred tax assets can be realized.
HENKEL ANNUAL REPORT 2024
331
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COMBINED MANAGEMENT
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CONSOLIDATED FINANCIAL
STATEMENTS
FURTHER INFORMATION
CREDITS/LEGAL
CONTACTS
FINANCIAL CALENDAR
Income taxes in other comprehensive income1
in million euros
Dec. 31, 2023
Dec. 31, 2024
Deferred taxes from actuarial gains and losses on pension obligations
-65
-10
Deferred taxes from the hedging of currency and interest rate risks
-13
-22
Total of income taxes in other comprehensive income
-78
-32
1 (-) Tax income/(+) Tax expense.
As an international group, Henkel is tax domiciled in around 80 countries and subject to the OECD’s “Pillar
Two” model rules. Germany has adopted “Pillar Two” legislation, which came into force on January 1, 2024.
Henkel observes the obligatory exception to temporary non-recognition of deferred taxes per IAS 12
Amendment of May 23, 2023, so that any future associated tax burdens/tax relief will not produce any
deferred tax effect.
33 Non-controlling interests
The amount shown here represents the proportion of net income and losses attributable to other shareholders
of consolidated subsidiaries.
In the 2024 fiscal year, net income of 25 million euros was attributable to non-controlling interests (previous
year: net income of 22 million euros).
The non-controlling interests included in the Henkel Group at the end of fiscal 2024 had no material impact
on our net assets, financial position and results of operations. The Group has no joint operations or uncon-
solidated structured entities.
HENKEL ANNUAL REPORT 2024
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COMBINED MANAGEMENT
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CONSOLIDATED FINANCIAL
STATEMENTS
FURTHER INFORMATION
CREDITS/LEGAL
CONTACTS
FINANCIAL CALENDAR
OTHER DISCLOSURES
34 Reconciliation of adjusted net income
in million euros
2023
2024
+/-
Operating profit (EBIT) (as reported)
2,011
2,831
40.8%
One-time income
-4
-3
–
One-time expenses
281
60
–
Restructuring expenses
267
202
–
Adjusted operating profit (adjusted EBIT)
2,556
3,089
20.9%
Adjusted return on sales
in %
11.9
14.3
2.4pp
Financial result (adjusted)
-85
-62
-26.9%
Taxes on income (adjusted)
-630
-759
20.4%
Adjusted tax rate
in %
25.5
25.1
-0.4pp
Adjusted net income
1,841
2,269
23.2%
Attributable to non-controlling interests
22
25
14.9%
Attributable to shareholders of Henkel AG & Co. KGaA
1,819
2,243
23.3%
Adjusted earnings per ordinary share
in euros
4.33
5.34
23.3%
Adjusted earnings per preferred share
in euros
4.35
5.36
23.2%
At constant exchange rates
25.1%
The figure for one-time expenses for fiscal 2024 includes 26 million euros relating to the merger of the
former Beauty Care and Laundry & Home Care business units into the combined Consumer Brands business
unit. These result primarily from internal costs for the IT integration of the business units. The other expenses
amounting to 18 million euros are primarily attributable to incidental costs relating to acquisitions and
divestments.
HENKEL ANNUAL REPORT 2024
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CONSOLIDATED FINANCIAL
STATEMENTS
FURTHER INFORMATION
CREDITS/LEGAL
CONTACTS
FINANCIAL CALENDAR
Restructuring expenses substantially comprise payments related to the termination of employment relation-
ships and impairment losses on non-current assets and inventories. The figure was also impacted in particular
by expenditure relating to the merger of the former Laundry & Home Care and Beauty Care business units
into the Consumer Brands business unit. In the period under review, the restructuring expenses also included
expenses arising from the reclassification of currency translation reserves in connection with the discontinu-
ation of our business activities in Venezuela. Of the restructuring expenses in fiscal 2024, 101 million euros
is attributable to cost of sales (previous year: 181 million euros) and 39 million euros to marketing, selling and
distribution expenses (previous year: 48 million euros). A further 2 million euros is attributable to research
and development expenses (previous year: 6 million euros), while 21 million euros is attributable to adminis-
trative expenses (previous year: 32 million euros) and 38 million euros to other operating expenses (previous
year: no expenses).
The financial result was adjusted by 46 million euros for the net loss incurred from the adjustment to current
purchasing power of non-monetary assets and liabilities, and of equity, resulting from the application of financial
reporting rules for hyperinflationary economies relating to Türkiye (previous year: 38 million euros).
Taxes on income amounting to 759 million euros (previous year: 630 million euros) reflect the tax effects of
the adjustments to operating profit (EBIT).
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35 Payroll cost and employee structure
Payroll cost1
in million euros
2023
2024
Wages and salaries
3,077
3,234
Social security contributions and staff welfare costs
521
540
Pension costs
178
185
Total
3,775
3,960
1 Excluding personnel-related restructuring expenses of 90 million euros (previous year: 150 million euros).
Number of employees per function1
2023
2024
Production and engineering
25,250
23,900
Marketing, selling and distribution
12,850
12,500
Research and development
2,750
2,750
Administration
8,100
8,300
Total
48,900
47,500
1 Basis: annual average number of full-time employees, excluding apprentices and trainees, work experience students and interns;
figures rounded.
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36 Share-based payment plans
Long-term variable cash-settled share-based remuneration (Long Term Incentive, LTI) as
part of Management Board remuneration
Since the start of fiscal 2023, the Long Term Incentive (LTI) plan for Management Board members has been
designed as a long-term cash-settled share-based remuneration component per IFRS 2 (Share-Based Payment).
It comprises a four-year forward-looking performance period divided into a three-year period for measuring
target achievement (performance measurement period) and a subsequent one-year lock-up period. The
LTI is a rolling program. As such, a new LTI tranche with a four-year performance period is issued every year.
At the start of each LTI tranche, a certain number of virtual shares are awarded provisionally to begin with.
This number is calculated by dividing the LTI target amount by the average price of Henkel preferred shares
over the last 30 stock exchange trading days immediately prior to the start of the performance period. The
number of virtual shares that are ultimately awarded is determined at the end of the three-year performance
measurement period by multiplying the number of provisionally awarded virtual shares by the weighted
target achievement of the three performance criteria – adjusted return on capital employed (adjusted ROCE
with a 60-percent weighting), relative total shareholder return (TSR with a – 20-percent weighting) and
ESG targets (20-percent weighting). Separate targets are set at the beginning of each year for each of the
three years in the performance measurement period. The ultimate number of virtual shares is subject to a
subsequent lock-up period of one year. The final payment amount at the end of the performance period is
determined by multiplying the number of ultimately awarded virtual shares by the average price of Henkel
preferred shares over the last 30 stock exchange trading days immediately prior to the end of the performance
period. In addition, Management Board members receive a dividend equivalent to the aggregate of the
dividends paid over the respective four-year performance period for each virtual share that is ultimately awarded.
The remuneration payable under an LTI tranche is capped. Further details regarding the LTI as a part of
Management Board remuneration can be found in the Remuneration Report, which is published separately.
To avoid non-payment of an LTI in 2026 due to extending the performance period of the LTI from three
years to four years, the LTI tranche 2023 has been split into two sub-tranches for purposes of transitioning
to the new remuneration system. Accordingly, under the first sub-tranche of the new LTI program (LTI
tranche 2023), 50 percent of the ultimately awarded virtual shares will be paid out at the end of the three-
year performance measurement period in 2026, while the remaining 50 percent will be payable under the
second sub-tranche as scheduled at the end of the one-year lock-up period in 2027.
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As the Management Board members’ LTI rights vest as soon as the first year of a performance measurement
period ends, a provision is already accrued in full for the anticipated payment amount until the end of the
first year. Additions to the provision are made pro rata temporis over the course of a year. At the end of the
first year and on each subsequent reporting date during the performance period, the provision is reviewed
on the basis of the fair value per virtual share. All changes to the measurement of this provision are reported
under payroll cost.
In the year under review, 115,010 virtual shares were provisionally awarded as part of the program (previous
year: 122,004 virtual shares). As of December 31, 2024, the measurement of the provision for all current
tranches was based on a total of 237,014 virtual shares awarded provisionally at the start of the relevant
tranche (previous year: 122,004 virtual shares). The addition to the provision for the share-based LTI as part
of Management Board remuneration recognized in payroll cost in fiscal 2024 totaled 12 million euros (previ-
ous year: 9 million euros). The carrying amount of the provision as of December 31, 2024 was 21 million
euros (previous year: 9 million euros) and applies only to vested entitlements.
Share Ownership Guideline in the context of Management Board remuneration
The obligation to purchase and hold shares (Share Ownership Guideline) is a key element of the remunera-
tion policy for Management Board members. Management Board members must invest at least 25 percent
of the net amount paid out as performance-related remuneration (STI and LTI) at the end of a fiscal year in
Henkel preferred shares until such time as their shareholdings equate to a specified minimum investment
amount derived from their basic remuneration (ordinary Management Board member: one times their basic
remuneration; Chair of the Management Board: twice their basic remuneration). The shares are placed in a
blocked custody account with correspondingly restricted access and must be held by the Management
Board members for the entire duration of their tenure. Management Board members can opt to invest more
each year or can add existing shares to their portfolio. The purchase price at the time of the respective ac-
quisition is decisive for fulfillment of the share acquisition and holding obligation.
All members of the Management Board have fulfilled their obligations to purchase shares in accordance with the
Share Ownership Guideline, so no further shares need to be purchased using members’ variable remuneration.
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Global Long Term Incentive Plan (LTI Plan) 2020+
The Global LTI Plan 2020+ introduced on January 1, 2017 provides for share-based remuneration settled with
preferred shares of Henkel AG & Co. KGaA. The treasury shares are granted on condition that members of
the plan are employed for four years by Henkel AG & Co. KGaA or one of its subsidiaries in a position senior
enough to qualify for participation, and that they are not under notice during that period. This minimum
period of employment pertains to the calendar year in which the treasury shares are granted and the three
subsequent calendar years. A performance-related investment amount is pledged to eligible employees at
the start of each four-year cycle. Target achievement is determined, and the investment amount for the cycle
specified, at the end of the first calendar year. At the start of the second calendar year, this investment
amount – after deduction of taxes and social security contributions, where applicable – is used to purchase
treasury shares on the stock exchange, which are then transferred to the employees. The number of shares
transferred to each employee on the basis of the investment amount is determined by the actual market
price (stock exchange price) of the shares at the time of purchase. The shares are subject to a lock-up period
that ends upon completion of the relevant four-year cycle. During this time, the employees participate in all
share price developments. Once the lock-up period has expired, the employees may dispose of the shares as
they wish. Employees who do not become eligible to participate in the Global LTI Plan 2020+ until after the
start of the respective cycle participate on a pro-rata basis in the cycles already in progress. The dividends
attributable to the shares during the lock-up period are reinvested in preferred shares.
The investment amount specified in the first year of the cycle based on target achievement is recognized as
a proportionate payroll cost spread over the four-year performance period. As the Global LTI Plan 2020+
provides for settlement using treasury shares, the allocations are recognized in equity. If treasury shares are
granted at the end of the performance measurement period, equity is reduced accordingly with no effect on
profit or loss. Additional employer contributions and other payments that do not constitute part of the in-
vestment amount and are not settled with treasury shares are recognized under other provisions.
The Global LTI Plan 2020+ was replaced by the Global LTI Plan 2023 from January 1, 2023 onward. The cycles
within the new plan now only run for three years. As such, due to the switch to the Global LTI Plan 2023, no
further cycle relating to the Global LTI Plan 2020+commenced in fiscal 2022. The Global LTI Plan 2020+ there-
fore acted as an incentive for the last time in the cycle 2021–2024.
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Development of the number of shares for the Global LTI Plan 2020+
2023
2024
Outstanding entitlements at the end of the previous year
1,178,912
1,028,289
Entitlements freely available on January 1
-103,032
-178,267
Entitlements granted in the year
55,348
46,209
Entitlements forfeited in the year
-82,142
-32,548
Shares resulting from conversion of dividend payments in the year
19,905
30,873
Entitlements that became vested in the year
-40,702
-50,787
Outstanding entitlements on December 31
1,028,289
843,769
In fiscal 2024, an equity-increasing payroll cost of 19 million euros was recognized in connection with the
Global LTI Plan 2020+ (previous year: equity increase of 27 million euros). Following the close of the year
under review, all entitlements are freely available to beneficiaries as of January 1, 2025.
Global Long Term Incentive Plan (Global LTI Plan) 2023 for employees
The Global LTI Plan 2023 was introduced on January 1, 2023, to replace the Global LTI Plan 2020+. The
Global LTI Plan 2023 provides for variable cash remuneration over a performance and measurement period
of three years. The LTI is a rolling program. As such, a new cycle with a three-year performance measurement
period commences every year. At the start of each cycle, beneficiaries are awarded an opportunity defined
as a fixed percentage derived from their individual base salary. At the end of the three-year cycle it is mul-
tiplied by the average target achievement over the measurement period of defined performance indicators
and paid out to the employees. Exceptionally, employees moving to different positions in other countries
may be eligible for premature payment at the time of the change.
One exception from these general conditions relates to eligible employees at the highest level of the hierar-
chy, to whom 45 percent of the potential benefit is awarded as virtual shares. The number of virtual shares
awarded is determined at the start of each three-year performance measurement period – usually January 1 –
by dividing 45 percent of the overall opportunity awarded by the average price of Henkel preferred shares
over the first 15 stock exchange trading days in January of the first fiscal year of the performance measure-
ment period. The value of a virtual share on the settlement date equates to the average price of Henkel pre-
ferred shares over the first 15 stock exchange trading days in January of the year following the three-year
performance measurement period. The dividends attributable to the virtual shares during the performance
measurement period are reinvested in virtual shares. At the end of the three-year performance measure-
ment period, the virtual shares are paid to the employees in cash.
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The remuneration under the Global LTI Plan 2023 is payable on condition that members of the plan were
employed for three years by Henkel AG & Co. KGaA or one of its subsidiaries in a position senior enough to
qualify for participation and that they were not under notice during that period. This minimum period of
employment pertains to the calendar year of the award and the two subsequent calendar years.
The performance indicators of relevance for the current fiscal year for all current cycles are specified by the
Management Board at the start of the fiscal year. For fiscal 2024 and the previous year, LTI remuneration is
dependent on the weighted target achievement of three performance criteria – adjusted return on capital
employed (adjusted ROCE), relative total shareholder return (TSR) and ESG targets. Given the dependence
on relative TSR and the award to beneficiaries at the highest level of the hierarchy of virtual shares as part of
the opportunity, the Global LTI Plan 2023 constitutes a long-term cash-settled share-based remuneration
program per IFRS 2 for all beneficiaries. The cash remuneration payable to the executives under the LTI is
redetermined on each reporting date based on anticipated target achievement, the number of virtual shares
awarded and the closing price of Henkel preferred shares and is recognized as an expense pro rata temporis
over the period of service of the employee. Appropriate provisions are accrued. All changes to the measure-
ment of this provision are reported under payroll cost.
The addition to the LTI 2023 provision for all hierarchy levels recognized in payroll cost totaled 34 million
euros in fiscal 2024 (previous year: 16 million euros), while an amount of 4 million euros (previous year:
0 million euros) was withdrawn for payout to employees. The carrying amount of the provision was 46 mil-
lion euros as at December 31, 2024 (previous year: 15 million euros).
Development of the number of virtual shares for the Global LTI Plan 2023
2023
2024
Virtual shares at the end of the previous year
–
32,135
Virtual shares granted in the year
33,335
31,392
Virtual shares forfeited in the year
-1,870
–
Virtual shares resulting from conversion of dividend payments in the year
669
1,634
Virtual shares on December 31
32,135
65,161
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The fair value of each virtual share as of the reporting date was 84.70 euros (closing date of Henkel preferred
shares on December 30, 2024; previous year: 72.86 euros, closing date on December 29, 2023).
Employee share plan
Since 2001, Henkel has been offering its employees a share plan whereby employees can voluntarily invest
up to 4 percent of their salary up to a maximum amount of 4,992 euros each year in Henkel preferred
shares. As was also the case in the previous year, in 2024 Henkel rewarded each euro invested by employees
with a bonus of 33 eurocents, which was also invested in Henkel preferred shares. Employees can dispose
freely of these bonus shares after a lock-up period of three years on condition that they remain employed
by Henkel AG & Co. KGaA or one of its subsidiaries without being under notice during that period. The em-
ployee share plan constitutes a share-based remuneration program as defined in IFRS 2 that is serviced
through equity instruments.
Under the plan, the Henkel Group paid its employees a bonus of 8 million euros in Henkel preferred shares
in fiscal 2024 (previous year: 8 million euros). Because of the revolving nature of the plan, this bonus was
recognized directly as a payroll cost for reasons of simplification. The sale of bonus shares forfeited by em-
ployees lowered the payroll cost by 1 million euros in 2024 (previous year: 1 million euros). The following
table summarizes the outstanding entitlements of employees from bonus shares in fiscal 2024 and the previ-
ous year.
Development of the number of shares for the employee share plan
2023
2024
Outstanding entitlements on January 1
331,163
372,085
Entitlements granted in the year
112,231
103,049
Entitlements forfeited in the year
-7,619
-6,882
Shares resulting from conversion of dividend payments in the year
4,511
4,786
Entitlements that became vested/freely available in the year
-68,201
-152,585
Outstanding entitlements on December 31
372,085
320,453
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37 Group segment reporting by business unit and
by region
The Group segment report examines the activities of the Henkel Group by operating segments; selected re-
gional information is also provided on a voluntary basis. In keeping with the requirements of IFRS 8 (Operat-
ing Segments), the two business units – Adhesive Technologies and Consumer Brands – were identified as
operating segments in fiscal 2024. The operating segments also constitute the reportable segments. The
segment report corresponds to the way in which the Henkel Group managed its operating business inter-
nally in fiscal 2024, and the Group’s internal reporting structure.
Reportable segments
Adhesive Technologies
The operating segment Adhesive Technologies offers a broad and globally leading portfolio of high-impact
solutions in adhesives, sealants and functional coatings. It is made up of three business areas – Mobility &
Electronics, Packaging & Consumer Goods, and Craftsmen, Construction & Professional.
Our Mobility & Electronics business area offers our international customers in the automotive and electron-
ics sectors, as well as industrial key accounts, tailor-made system solutions, specialized technical services and
a technology portfolio that addresses global trends such as electrification, connectivity, autonomous driving
and industrial defossilization.
In the Packaging & Consumer Goods business area, we offer innovative solutions for manufacturers of con-
sumer goods and brand products around the globe. We use our technology portfolio and market expertise
to address global consumer trends, such as the demand for more sustainable products and for a circular
economy, and the requirement to ensure the maximum possible levels of food safety.
In the Craftsmen, Construction & Professional business area, we offer high-impact solutions for private con-
sumers and craftsmen, the construction trade, and for manufacturing and professional maintenance in more
than 800 industries. We develop innovations for transformative products and customer solutions on strong
global brand platforms and respond to global technology trends, such as sustainable construction, DIY,
smart production processes, and preventive maintenance.
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Consumer Brands
The Consumer Brands business unit operates worldwide in the Laundry & Home Care and Hair business
areas. Both business areas have focused brand portfolios and offer consumer-relevant innovations. In the
Laundry & Home Care business area, we offer heavy-duty and specialty detergents, laundry additives, dish-
washing products, and hard surface and toilet cleaners. In the Hair business area, we offer hair styling, hair
coloring and hair care products. In our Other Consumer Businesses area, Henkel is represented in selective
markets, primarily in body care products.
The products in our Laundry & Home Care and Other Consumer Businesses areas are marketed and sold
exclusively under the Consumer business. The Hair business area comprises brands and products that are
distributed under the Consumer business as well as those that are offered exclusively as part of our Professional
business. The Consumer business and the Professional business are designed as two distinct functions from
both an organizational and strategic perspective to ensure that we optimally serve the different customer
groups and fulfill the different needs of the businesses.
Principles of Group segment reporting
In determining the assets and liabilities, we apply essentially the same principles of recognition and meas-
urement as in the consolidated financial statements. We have valued net operating assets in foreign curren-
cies at average exchange rates.
The Group measures the performance of its segments on the basis of a segment income variable referred to
internally and in our reporting procedures as “adjusted EBIT,” which is calculated by adjusting operating profit
(EBIT) for one-time expenses and income, and also for restructuring expenses (see Note 34 on pages 332
and 333). The adjusted cost of sales included in adjusted EBIT (10,664 million euros, previous year: 11,672 mil-
lion euros) is distributed evenly across the reportable segments in fiscal 2024, as was also the case in the
previous year. In both years, around two thirds of the adjusted marketing, selling and distribution expenses
(6,071 million euros, previous year: 5,661 million euros) is attributable to the Consumer Brands business unit
and around one third to the Adhesive Technologies business unit.
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The reportable segments account for 3 million euros (previous year: 4 million euros) of the one-time income
and for 44 million euros (previous year: 278 million euros) of the one-time expenses. Of the restructuring
expenses, 204 million euros (previous year: 249 million euros) is attributable to the reportable segments. Of
these restructuring expenses, 84 million euros (previous year: 95 million euros) is attributable to Adhesive
Technologies and 119 million euros (previous year: 154 million euros) to the Consumer Brands business unit.
For reconciliation with the figures for the Henkel Group, Group management overheads are reported under
Corporate together with income and expenses that cannot be allocated to the individual business units.
For reconciliation with the pre-tax earnings of the Henkel Group, please refer to the consolidated statement
of income and the financial result reported therein.
Proceeds transferred between the segments only exist to a negligible extent and are therefore not sepa-
rately disclosed.
Operating assets, provisions and liabilities are assigned to the segments in accordance with their usage or
origin. Where usage or origin is attributable to several segments, allocation is effected on the basis of appro-
priate ratios and keys.
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Reconciliation between net operating assets/capital employed and financial statement figures
in million euros
Net operating assets
Financial
statement
figures
Net operating assets
Financial
statement
figures
Annual
average¹
2023
December
31, 2023
December
31, 2023⁴
Annual
average¹
2024
December
31, 2024
December
31, 2024
Goodwill at carrying amounts
13,566
13,569
13,602
14,360
14,992
14,992
Other intangible assets and property, plant and equipment (including assets held for sale)
7,319
7,254
7,216
7,562
7,759
7,759
Deferred taxes
–
–
1,178
–
–
1,115
Inventories
2,824
2,444
2,445
2,555
2,568
2,568
Trade accounts receivable from third parties
3,752
3,471
3,470
3,724
3,530
3,530
Intragroup trade accounts receivable
1,930
1,785
–
1,865
1,939
–
Other assets and tax refund claims2
743
661
1,866
633
623
2,413
Cash and cash equivalents
–
–
1,951
–
–
2,889
Operating assets/Total assets
30,135
29,185
31,727
30,700
31,411
35,267
Liabilities
9,089
8,896
11,728
8,935
9,196
13,445
Of which:
Trade accounts payable to third parties
4,200
4,075
4,075
4,110
4,241
4,241
Intragroup trade accounts payable
1,930
1,785
–
1,865
1,939
–
Other provisions and other liabilities2 (financial and non-financial)
2,959
3,035
3,752
2,961
3,010
3,842
Net operating assets
21,046
20,289
–
21,764
22,215
–
– Goodwill at carrying amounts
13,566
13,569
–
14,360
14,992
–
+ Goodwill at cost3
13,903
13,907
–
14,609
15,265
–
Capital employed
21,382
20,627
–
22,013
22,488
–
1 The annual average is calculated on the basis of the 12 monthly figures.
2 We take only amounts relating to operating activities into account in calculating net operating assets.
3 Before deduction of accumulated impairment.
4 Amended following the updated allocation of the purchase price for the shares in Composite Technology Intermediate, Inc.
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Discussion of the key financials by region
For regional and geographic analysis purposes, we allocate sales to countries on the basis of the country-of-
origin principle. Non-current assets are allocated in accordance with the domicile of the international company
to which they pertain.
In 2024, the subsidiaries domiciled in Germany, including Henkel AG & Co. KGaA, generated sales of
2,434 million euros (previous year: 2,411 million euros). Sales realized by the subsidiaries domiciled in the USA
amounted to 5,547 million euros in 2024 (previous year: 5,655 million euros). Subsidiaries domiciled in China
achieved sales of 1,778 million euros in 2024 (previous year: 1,588 million euros). In total, the Group generated
sales of 21,586 million euros in the year under review (previous year: 21,514 million euros). In fiscal 2023 and
2024, no individual customer accounted for more than 10 percent of total sales.
Of the total non-current assets disclosed for the Henkel Group at December 31, 2024 (excluding financial
instruments, deferred tax assets and the overfunding of pension obligations) amounting to 22,888 million
euros (previous year: 20,996 million euros), 2,472 million euros (previous year: 2,371 million euros) was attribut-
able to the subsidiaries domiciled in Germany, including Henkel AG & Co. KGaA. The non-current assets
(excluding financial instruments, deferred tax assets and the overfunding of pension obligations) recognized
in respect of the subsidiaries domiciled in the USA amounted to 12,711 million euros at December 31, 2024
(previous year: 11,900 million euros).
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38 Earnings per share
Earnings per share
2023
2024
in million euros
Reported
Adjusted
Reported
Adjusted
Net income attributable to shareholders of Henkel AG & Co. KGaA
1,318
1,819
2,007
2,243
Dividends, ordinary shares
469
469
518
518
Dividends, preferred shares
302
302
332
332
Total dividends
771
771
850
850
Retained earnings, ordinary shares
334
640
707
851
Retained earnings, preferred shares
212
407
449
541
Retained earnings
546
1,048
1,156
1,392
Number of outstanding ordinary shares1
256,529,013
256,529,013
256,505,172
256,505,172
Dividend per ordinary share
in euros
1.83
1.83
2.023
2.02
Of which: preliminary dividend per ordinary share2
in euros
0.02
0.02
0.02
0.02
Retained earnings per ordinary share
in euros
1.30
2.50
2.76
3.32
Earnings per ordinary share (basic/diluted)4
in euros
3.13
4.33
4.78
5.34
Number of outstanding preferred shares1
163,191,731
163,191,731
162,849,645
162,849,645
Dividend per preferred share
in euros
1.85
1.85
2.043
2.04
Of which: preferred dividend per preferred share2
in euros
0.04
0.04
0.04
0.04
Retained earnings per preferred share
in euros
1.30
2.50
2.76
3.32
Earnings per preferred share (basic/diluted)4
in euros
3.15
4.35
4.80
5.36
1 Weighted annual average of preferred and ordinary shares.
2 See sections entitled “Corporate governance” and “Composition of issued capital/Shareholders’ rights” in the combined management report.
3 Proposal to shareholders for the Annual General Meeting on April 28, 2025.
4 There are currently no significant dilutive effects.
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CONTACTS
FINANCIAL CALENDAR
39 Consolidated statement of cash flows
The consolidated statement of cash flows shows the movements in cash and cash equivalents, distinguishing
between changes in cash and cash equivalents from operating activities, investing activities and financing
activities in accordance with the requirements of IAS 7. Changes in financial funds due to exchange rate
movements are presented separately and are not included in cash flow from operating activities, cash flow
from investing activities or cash flow from financing activities.
The composition of cash and cash equivalents is discussed in Note 8 on page 259. In some countries, there
are administrative hurdles to the transfer of money to the parent company or to other Group companies.
The cash and cash equivalents attributable to these countries amounted to 150 million euros as of Decem-
ber 31, 2024 (previous year: 131 million euros).
Cash flows of subsidiaries whose functional currency is that of a hyperinflationary economy are presented at
current purchasing power. They are therefore adjusted using the relevant conversion factors from the date
on which each respective transaction took place.
Cash flow from operating activities is calculated using the indirect method by adjusting the operating profit
for non-cash items and adding cash inflows and outflows not reflected in the operating profit. The necessary
adjustments to operating profit include in particular depreciation and amortization, impairment losses and
write-ups of intangible assets, property, plant and equipment and assets held for sale, as well as changes in
provisions, other assets and liabilities, and in net working capital. In addition, payments for income taxes are
included in cash flows from operating activities.
In fiscal 2024, non-cash impairment on intangible assets, property, plant and equipment and assets held for
sale reported under “Amortization/depreciation/impairment/write-ups of intangible assets, property, plant
and equipment, and assets held for sale” by which operating profit was corrected, amounted to 129 million
euros (previous year: 218 million euros).
HENKEL ANNUAL REPORT 2024
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FINANCIAL CALENDAR
Cash flows from investing activities are calculated directly and occur essentially as a result of outflows for the
purchase and inflows from the disposal of intangible assets and property, plant and equipment, subsidiaries
and other business units, and investments. This item also includes cash inflows and outflows from other finan-
cial assets and interest received on cash and cash equivalents.
In the year under review, the cash outflow for investments in subsidiaries and other business units and the
cash inflow from proceeds on disposal of subsidiaries, other business units and investments, related essen-
tially to the transactions discussed in the section “Acquisitions and divestments” on pages 222 to 224.
The cash flow from financing activities, which is also determined directly, mainly comprises dividends paid,
interest paid, the change in financial funds from borrowing and repaying financial liabilities and the changes
in pension obligations resulting from funding activities. Cash flows from the forward components of currency
forwards contracted with Group-external parties used to hedge intragroup financing arrangements are netted
under interest paid. The incoming payments from forward components of currency forwards recognized
here amounted to 12 million euros in fiscal 2024 (previous year: 17 million euros), while outgoing payments
amounted to 5 million euros (previous year: 20 million euros).
HENKEL ANNUAL REPORT 2024
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FINANCIAL CALENDAR
The other changes in borrowings in fiscal 2024 are essentially due to payments received in the amount of
927 million euros resulting from the increase of our current liabilities to banks. Payments made and received
in connection with our revolving short-term commercial paper financing program resulted – netted – in cash
inflows from financing activities of 94 million euros in fiscal 2024 (previous year: cash outflows of 227 million
euros). Other changes in pension obligations include payment receipts of 100 million euros in fiscal 2024
constituting the refund of pension payments to retirees for which a right of reimbursement exists with respect
to Henkel Trust e.V. and an external pension fund. The prior-year reimbursement recognized in cash flow
from financing activities amounted to 210 million euros.
Further explanation of the development of the individual cash flows can be found in the discussion of the
financial position of the Henkel Group in the management report on page 144.
Free cash flow indicates how much cash is actually available for acquisitions and dividends, reducing debt
and for allocations to pension funds.
HENKEL ANNUAL REPORT 2024
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FURTHER INFORMATION
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CONTACTS
FINANCIAL CALENDAR
Reconciliation of assets and liabilities reflected in cash flow from financing activities 2023
in million euros
Derivative assets
and liabilities
Receivables from
Henkel Trust e.V.
and other
external pension
funds and
reimbursement
rights
Provisions for
pensions and
similar
obligations
Borrowings
Lease liabilities
Other assets
and liabilities1
Total
At January 1, 2023
122
374
-417
-2,907
-681
-18
-3,526
Changes in cash flows
(Cash flow from financing activities)
-29
-104
32
687
167
-1
752
Of which:
Interest paid2
-11
–
–
80
21
-1
88
Issuance and repayment of bonds,
repayment of non-current bank
liabilities and other changes in
borrowings3
-18
–
–
599
–
–
581
Redemption of lease liabilities
–
–
–
–
146
–
146
Allocations to pension funds and other
changes in pension obligations
–
-104
32
–
–
–
-72
Payments for the acquisition
of treasury shares
–
–
–
8
–
–
8
Interest income and expenses recognized in
financial result
10
5
-11
-77
-21
0
-93
Additions of lease liabilities
–
–
–
–
-99
–
-99
Acquisition or disposal of subsidiaries
–
–
–
–
-4
–
-4
Foreign exchange effects
-0
-4
10
18
13
–
36
Changes in fair value
-21
6
-179
10
-1
–
-186
Sundry
–
–
29
0
1
–
31
At December 31, 2023
82
277
-535
-2,269
-624
-18
-3,088
1 These include commitments and entitlements relating to incidental tax expenses.
2 Differs from the cash flow statement due to fees and other financial charges relating to the procurement of money and loans.
3 Differs from the cash flow statement due to currency differences and the currency results of intragroup financing and capital transactions, and changes in financial liabilities to third parties.
HENKEL ANNUAL REPORT 2024
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FURTHER INFORMATION
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CONTACTS
FINANCIAL CALENDAR
Reconciliation of assets and liabilities reflected in cash flow from financing activities 2024
in million euros
Derivative assets
and liabilities
Receivables from
Henkel Trust e.V.
and other
external pension
funds and
reimbursement
rights
Provisions for
pensions and
similar
obligations
Borrowings
Lease liabilities
Other assets
and liabilities1
Total
At January 1, 2024
82
277
-535
-2,269
-624
-18
-3,087
Changes in cash flows
(Cash flow from financing activities)
-10
17
18
-1,119
171
-11
-935
Of which:
Interest paid2
-17
–
–
91
25
-11
87
Issuance and repayment of bonds,
repayment of non-current bank
liabilities and other changes in
borrowings3
7
–
–
-1,210
–
–
-1,204
Redemption of lease liabilities
–
–
–
–
146
–
146
Allocations to pension funds and other
changes in pension obligations
–
17
18
–
–
–
35
Interest income and expenses recognized in
financial result
17
5
-16
-92
-25
14
-96
Additions of lease liabilities
–
–
–
–
-219
–
-219
Acquisition or disposal of subsidiaries
–
–
4
–
-9
–
-5
Foreign exchange effects
-0
7
-4
-53
-14
–
-64
Changes in fair value
-18
5
-12
-43
7
–
-62
Sundry
–
–
-24
–
1
–
-23
At December 31, 2024
71
311
-569
-3,576
-713
-15
-4,492
1 These include commitments and entitlements relating to incidental tax expenses.
2 Differs from the cash flow statement due to fees and other financial charges relating to the procurement of money and loans.
3 Differs from the cash flow statement due to currency differences and the currency results of intragroup financing and capital transactions, and changes in financial liabilities to third parties.
HENKEL ANNUAL REPORT 2024
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COMBINED MANAGEMENT
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STATEMENTS
FURTHER INFORMATION
CREDITS/LEGAL
CONTACTS
FINANCIAL CALENDAR
40 Contingent liabilities
Compared to provisions, contingent liabilities are subject to much greater uncertainty as they represent either
a potential obligation or a current obligation where payment is unlikely or the amount of the obligation can-
not be estimated with sufficient reliability.
Estimating the financial impact from contingent liabilities pertaining to risks arising from legal disputes and
proceedings that do not meet the criteria for recognition as provisions is not expedient due to the uncertainty
surrounding the likelihood of resolution and amount of resource outflow involved.
Within the Henkel Group, contingent liabilities also exist with respect to warranty agreements and to guaran-
tees assumed with respect to public authorities. At December 31, 2024, these contingent liabilities amounted
to 8 million euros (previous year: 12 million euros).
41 Other unrecognized financial commitments
As of the end of 2024, commitments arising from orders for property, plant and equipment amounted to
105 million euros (previous year: 108 million euros).
As of the reporting date, payment commitments under the terms of agreements for capital increases and share
purchases contracted prior to December 31, 2024 amounted to 17 million euros (previous year: 21 million euros).
HENKEL ANNUAL REPORT 2024
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STATEMENTS
FURTHER INFORMATION
CREDITS/LEGAL
CONTACTS
FINANCIAL CALENDAR
42 Shareholdings in the capital of Henkel AG & Co.
KGaA/Voting rights notifications
The following information was available regarding notifiable shareholdings in accordance with Section 160 (1)
(8) AktG:
Henkel AG & Co. KGaA, Düsseldorf, has been notified that, on November 23, 2023, the proportion of voting
rights held by the members of the Henkel family share-pooling agreement represented in total a share of
61.82 percent of the voting rights (160,599,025 votes) in Henkel AG & Co. KGaA (ISIN DE0006048408). The
voting rights are held by
139 members of the families of the descendants of Fritz Henkel, the Company’s founder,
18 foundations set up by members of those families,
three trusts set up by members of those families,
two private limited companies (GmbH) set up by members of those families, and
twelve limited partnerships with a limited company as general partner (GmbH & Co. KG),
under a share-pooling agreement as defined in Section 34 (2) German Securities Trading Act [WpHG].
No party to the share-pooling agreement is obliged to notify that it has reached or exceeded 3 percent or
more of the total voting rights in Henkel AG & Co. KGaA, whether with or without the addition of voting
rights expressly granted under the terms of usufruct agreements.
Dr. Simone Bagel-Trah, Germany, is the authorized representative of the parties to the Henkel family share-
pooling agreement.
On December 27, 2024, BlackRock, Inc., Wilmington, Delaware, USA, gave notification that, as of December 20,
2024, it directly or indirectly held a total share of voting rights of 3.07 percent, of which 3.04 percent
(7,887,993 voting rights) attached to ordinary shares and 0.03 percent (84,783 voting rights) arose from
instruments as defined in Section 38 (1) WpHG. Most recently, BlackRock, Inc., Wilmington, Delaware, USA,
gave notification on January 24, 2025 that its total share of voting rights in Henkel AG & Co. KGaA held directly
or indirectly as of January 21, 2025 was 3.06 percent of the voting rights, whereby 3.01 percent (7,830,855 voting
rights) comprised voting rights attached to ordinary shares and 0.05 percent (118,639 voting rights) comprised
voting rights arising from said instruments.
Voting rights notifications received by the Company and further related information are publicly accessible
on the website: www.henkel.com/ir
HENKEL ANNUAL REPORT 2024
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COMBINED MANAGEMENT
REPORT
CONSOLIDATED FINANCIAL
STATEMENTS
FURTHER INFORMATION
CREDITS/LEGAL
CONTACTS
FINANCIAL CALENDAR
43 Related party disclosures
Related parties as defined by IAS 24 (Related Party Disclosures) are legal entities or natural persons who may
be able to exert influence on Henkel AG & Co. KGaA and its subsidiaries, or be subject to control or signifi-
cant influence by Henkel AG & Co. KGaA or its subsidiaries. These mainly include all members of the Henkel
family share-pooling agreement who, together, represent the ultimate controlling party of the Henkel Group
as defined in IAS 24, and the non-consolidated subsidiaries, the associates, and the members of the corpo-
rate bodies of Henkel AG & Co. KGaA. Related parties as defined in IAS 24 also include Henkel Trust e.V. and
Metzler Trust e.V.
Accounts receivable from and payable to non-consolidated subsidiaries and associates are indicated in
Note 3 on pages 254 and 255, and in Note 19 on pages 281 and 282.
Detailed information on the remuneration paid to the members of the corporate bodies can be found in the
Remuneration Report compiled by the Management Board and the Supervisory Board in accordance with
Section 162 AktG and in Note 45 on pages 355 to 358. As was also the case last year, no further material
business transactions took place between the Company and members of the Management Board, Supervi-
sory Board and Shareholders’ Committee.
Henkel Trust e.V. and Metzler Trust e.V., as parties to relevant contractual trust arrangements (CTA), hold the
assets required to cover the Company’s pension obligations in Germany. The claim on Henkel Trust e.V. for
reimbursement of pension payments made is shown under other financial assets (Note 3 on pages 254 and
255). The receivable does not bear interest.
HENKEL ANNUAL REPORT 2024
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COMBINED MANAGEMENT
REPORT
CONSOLIDATED FINANCIAL
STATEMENTS
FURTHER INFORMATION
CREDITS/LEGAL
CONTACTS
FINANCIAL CALENDAR
44 Exercise of exemption options
The following German companies included in the consolidated financial statements of Henkel AG & Co.
KGaA exercised exemption options in fiscal 2024:
Schwarzkopf Henkel Production Europe GmbH & Co. KG, Düsseldorf (Section 264b German Commercial
Code [HGB])
Henkel IP Management and IC Services GmbH, Monheim (Section 264 (3) HGB)
Sonderhoff Holding GmbH, Cologne (Section 264 (3) HGB)
The Dutch company Henkel Nederland B.V., Nieuwegein, exercised the exemption option afforded in Article
2:403 of the Civil Code of the Netherlands.
45 Remuneration of the corporate bodies
The remuneration of the members of the Management Board of Henkel Management AG as the sole Per-
sonally Liable Partner of Henkel AG & Co. KGaA essentially consists of a fixed basic remuneration and other
non-performance-related emoluments, an annual variable remuneration (Short Term Incentive, STI), and a
variable cash remuneration based on the long-term performance of the Company (Long Term Incentive, LTI).
Management Board members can also be granted pension benefits under a defined contribution plan or
alternatively lump-sum pension payments. The non-performance-related emoluments include fringe bene-
fits and benefits in kind that are commensurate with market conditions and directly related to Management
Board activity.
The performance-related STI provides for remuneration in line with achievement within a one-year perfor-
mance measurement period of targets set for the performance of both the Company and the individual
Management Board members. The performance of the Company is measured in terms of organic sales
growth (OSG) and adjusted earnings per preferred share (EPS) at constant exchange rates, which are equally
weighted in the determination of target achievement. The multiplier for individual performance reflects the
absolute and relative performance of the business unit for which each officer is responsible compared to
market/competition performance, their individual contribution to implementing strategic priorities and the
attainment of specific individual targets.
Under the 2022 LTI tranche for which the measurement period ended on December 31, 2024, and for which
payment is due following the close of fiscal 2024, Management Board members were awarded cash remu-
neration based on average target achievement with regard to adjusted return on capital employed (adjusted
HENKEL ANNUAL REPORT 2024
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FINANCIAL CALENDAR
ROCE) over the three-year performance measurement period (remuneration year and the two following fis-
cal years). A separate target was set for each of the three years in the performance measurement period.
The LTI tranche that is due for payment also considers the functional factors of the individual Management
Board members, which reflect the complexity and significance of the business units for which they are respon-
sible. A cap has been defined for the individual variable components of remuneration and the total com-
pensation payable including other emoluments and pension contributions.
Since the start of fiscal 2023, the Long Term Incentive (LTI) for Management Board members is designed as
a long-term cash-settled share-based remuneration plan under which the members of the Management
Board are awarded a specific number of virtual shares based on the weighted target achievement of three
performance criteria – adjusted return on capital employed (adjusted ROCE), relative total shareholder return
(TSR) and ESG targets – over a three-year measurement period. The virtual shares are subsequently subject
to a one-year lock-up period. Since the targets for each of the three years in the measurement period are
only set at the beginning of each respective year, the full terms of the agreement governing this component
of remuneration are not known until the targets are specified for the third year of the cycle. Under a transi-
tional arrangement, the first payment under the share-based LTI will be due in 2026. Further discussion of
this component of remuneration can be found in Note 36 on pages 335 and 336.
Members of the Supervisory Board and the Shareholders’ Committee receive a fixed fee in cash. Supervisory
Board members also receive attendance fees. Those members of the Supervisory Board elected as employee
representatives are paid a salary that is commensurate with the market, as well as the fixed fee and attend-
ance fees.
As the Supervisory Board of Henkel Management AG is only comprised of members who also belong to the
Shareholders’ Committee of Henkel AG & Co. KGaA, as was also the case in previous years, no remunera-
tion was paid to these members for their activity on the Supervisory Board of Henkel Management AG in the
year under review in accordance with Art. 14 of the Articles of Association of Henkel Management AG.
The following expenditure was recognized in fiscal 2024 and in the previous year per IFRSs for remuneration
paid to members of the Management Board, Supervisory Board and Shareholders’ Committee of Henkel AG
& Co. KGaA in office in the year under review:
HENKEL ANNUAL REPORT 2024
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STATEMENTS
FURTHER INFORMATION
CREDITS/LEGAL
CONTACTS
FINANCIAL CALENDAR
Remuneration of the corporate bodies according to IFRS
in euros
2023
2024
Management Board remuneration
Short-term remuneration1
15,952,537
16,915,281
Non-share-based Long Term Incentive
825,012
383,920
Share-based remuneration
9,352,139
12,322,869
Service cost of pension obligations
1,209,116
1,220,357
Total
27,338,804
30,842,427
Supervisory Board remuneration
Fixed fee and attendance fee2
1,634,000
1,757,970
Shareholders’ Committee remuneration
Fixed fee2
2,350,000
2,350,000
Total expenses relating to the corporate bodies
31,322,804
34,950,397
1 Fixed remuneration, other emoluments, Short Term Incentive (excluding the share-based amount related to the Share Ownership Guideline),
lump-sum pension payouts, one-time special payments.
2 Including (sub)committee activities.
The defined benefit obligation (DBO) outstanding as at December 31, 2024 from pension schemes for Man-
agement Board members in office amounted to 14,470,245 euros (previous year: 11,903,860 euros). For the
Short Term Incentive and the Long Term Incentive for the Management Board, provision had been accrued
or obligations recorded in equity in the amount of 35,067,924 euros as of the reporting date (previous year:
25,505,785 euros).
The remuneration paid in fiscal 2024 and in the previous year to members of the Management Board,
Supervisory Board and Shareholders’ Committee of Henkel AG & Co. KGaA in office in the fiscal year per
HGB (Section 285 no. 9a HGB and Section 314 (1) no. 6a HGB) was as follows:
HENKEL ANNUAL REPORT 2024
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COMBINED MANAGEMENT
REPORT
CONSOLIDATED FINANCIAL
STATEMENTS
FURTHER INFORMATION
CREDITS/LEGAL
CONTACTS
FINANCIAL CALENDAR
Remuneration of the corporate bodies according to the German Commercial Code [HGB]
in euros
2023
2024
Management Board remuneration
Short-term remuneration1
16,365,037
16,915,281
Of which: share-based remuneration based on the Share Ownership Guideline
412,500
–
Non-share-based Long Term Incentive
3,112,243
3,637,632
Share-based Long Term Incentive
9,652,075
12,240,331
Total
29,129,355
32,793,244
Supervisory Board remuneration
Fixed fee and attendance fee2
1,634,000
1,757,970
Shareholders’ Committee remuneration
Fixed fee2
2,350,000
2,350,000
Total expenses relating to the corporate bodies
33,113,355
36,901,214
1 Fixed remuneration, other emoluments, Short Term Incentive, lump-sum pension payouts, one-time special payments.
2 Including (sub)committee activities.
Provisions for pension obligations to former members of the Management Board and the management of
Henkel KGaA, as well as the former management of its legal predecessor and surviving dependents, amounted
to 110,749,089 euros (previous year: 116,221,040 euros). The total remuneration (Section 285 no. 9b HGB
and Section 314 (1) no. 6b HGB) of this group of persons, including the tranches of the Long Term Incentive
or compensation for loss of earnings paid to departing Management Board members in the reporting year
amounted to 10,697,503 euros in the reporting year (previous year: 9,475,746 euros).
Further discussion of the remuneration paid to the individual members who served on the Management
Board, Supervisory Board and Shareholders’ Committee in the year under review can be found in the audited
Remuneration Report, which is published separately.
HENKEL ANNUAL REPORT 2024
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CONSOLIDATED FINANCIAL
STATEMENTS
FURTHER INFORMATION
CREDITS/LEGAL
CONTACTS
FINANCIAL CALENDAR
46 Declaration of compliance with the German
Corporate Governance Code
In February 2024, the Management Board of Henkel Management AG, and the Supervisory Board and Share-
holders’ Committee of Henkel AG & Co. KGaA approved a joint declaration of compliance with the recom-
mendations of the German Corporate Governance Code (GCGC) in accordance with Section 161 German Stock
Corporation Act [AktG]. The declaration has been made permanently available to shareholders on our
website: www.henkel.com/corporate-governance
47 Subsidiaries and other investments
Details relating to the investments held by Henkel AG & Co. KGaA and the Henkel Group, which form part of
these financial statements, are provided in a separate schedule appended to these notes to the consolidated
financial statements but not included in this version of the Annual Report. Said schedule is included in the
accounting record submitted for publication in the Federal Gazette and can be viewed there. The schedule is
also published on our website: www.henkel.com/reports
HENKEL ANNUAL REPORT 2024
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STATEMENTS
FURTHER INFORMATION
CREDITS/LEGAL
CONTACTS
FINANCIAL CALENDAR
48 Auditor’s fees and services
The following table lists the total fees charged to the Group for services provided by the auditor Pricewater-
houseCoopers GmbH Wirtschaftsprüfungsgesellschaft and other companies of the worldwide PwC network
for fiscal 2024 and the previous year:
Type of fee
in million euros
2023
Of which:
Germany
2024
Of which:
Germany
Audit services
11.0
3.8
11.4
3.8
Other attestation services
0.6
0.5
0.9
0.8
Other services
0.0
0.0
0.0
0.0
Total
11.6
4.3
12.4
4.6
The financial statement auditing services relate primarily to the statutory audits of the annual and consoli-
dated financial statements of Henkel AG & Co. KGaA, together with various audits of annual financial state-
ments of its subsidiaries. Reviews of interim financial statements were also included in the audit mandate.
The other attestation services mainly related to the audit of non-financial reporting and sustainability-
related disclosures and the audit of the Remuneration Report.
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FINANCIAL CALENDAR
SUBSEQUENT EVENTS
On February 3, 2025, Henkel signed an agreement to sell the Company’s Retailer Brands business in North
America, thus completing the strategic portfolio optimization in the Consumer Brands business unit, announced
in February 2022. The business, which generates annual sales of around 500 million euros, includes detergents,
fabric finishers and dishwash categories serving several retail customers in North America. No material
financial effect is expected from the transaction.
Düsseldorf, February 7, 2025
Henkel Management AG,
Personally Liable Partner
of Henkel AG & Co. KGaA
Management Board
Carsten Knobel,
Mark Dorn, Wolfgang König, Sylvie Nicol, Marco Swoboda
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Recommendation for the approval of the annual
financial statements and the appropriation of the
profit of Henkel AG & Co. KGaA
It is proposed that the annual financial statements of Henkel AG & Co. KGaA be approved as presented and
that the unappropriated profit of 2,921,709,194.73 euros for fiscal 2024 be applied as follows:
a) Payment of a dividend for fiscal 2024 of 2.02 euros per
eligible ordinary share (256,505,172 shares)
= 518,140,447.44 euros
b) Payment of a dividend for fiscal 2024 of 2.04 euros per
eligible preferred share (162,856,627 shares)
= 332,227,519.08 euros
c) Carry forward of the remaining amount
= 2,071,341,228.21 euros
(profit carried forward)
2,921,709,194.73 euros
The proposal for appropriation of the profit allows for the 3,290,703 ordinary shares and 15,306,248 preferred
shares held directly or indirectly as treasury stock by the Company as of December 31, 2024. According to
Section 71b Stock Corporation Act [AktG], treasury shares do not qualify for dividends. If the number of
shares qualifying for dividends for fiscal 2024 changes between now and the Annual General Meeting, a
correspondingly adapted proposal for the appropriation of profit will be submitted to the Annual General
Meeting providing for an unchanged payout of 2.02 euros per eligible ordinary share and 2.04 euros per
eligible preferred share, with corresponding adjustment of the payout totals and of retained earnings carried
forward.
Pursuant to Section 58 (4) sentence 2 AktG, dividends are payable on the third business day following the
resolution in the Annual General Meeting, i.e. on Thursday, May 2, 2025.
Düsseldorf, February 7, 2025
Henkel Management AG,
Personally Liable Partner
of Henkel AG & Co. KGaA
Management Board
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CORPORATE BODIES OF
HENKEL AG & CO. KGAA
Boards/memberships as defined by Section 125 (1) sentence 5 German Stock Corporation Act [AktG]
Honorary Chair of the Henkel Group: Dipl.-Ing. Albrecht Woeste
Supervisory Board of Henkel AG & Co. KGaA
Dr. rer. nat. Simone Bagel-Trah
Chair,
Private Investor, Düsseldorf
Place of residence: Düsseldorf
Born: January 10, 1969
Nationality: German
Member since: April 14, 2008
Elected until: 2028
Memberships:
Henkel AG & Co. KGaA
(Shareholders’ Committee, Chair)2
Henkel Management AG (Chair)1
Heraeus Holding GmbH1
Birgit Helten-Kindlein*
Vice Chair,
Chair of the General Works Council
and Chair of the Works Council of
Henkel AG & Co. KGaA, Düsseldorf site
Place of residence: Monheim
Born: February 16, 1964
Nationality: German
Member since: April 14, 2008
Elected until: 2028
Michael Baumscheiper*
Vice Chair of the General Works Council
of Henkel AG & Co. KGaA and
Chair of the Works Council of
Henkel AG & Co. KGaA, Hamburg site
Place of residence: Heidgraben
Born: September 3, 1966
Nationality: German
Member since: December 11, 2020
Elected until: 2028
Dr. rer. nat. Konstantin Benda*
Chemist, Transaction Manager
Chair of the Senior Staff Representative
Committee of Henkel AG & Co. KGaA
Place of residence: Mettmann
Born: October 7, 1972
Nationality: German
Member since: April 24, 2023
Elected until: 2028
Lutz Bunnenberg
Private Investor, Munich
Place of residence: Munich
Born: November 16, 1973
Nationality: German
Member since: June 17, 2020
Elected until: 2028
Sabine Friedrich*
Assistance and Product Management for
Product Development Industrials EIMEA
Member of the Works Council of Henkel
AG & Co. KGaA, Düsseldorf site
Place of residence: Ratingen
Born: February 24, 1973
Nationality: German
Member since: September 23, 2023
Elected until: 2028
Vinzenz Gruber
(since April 22, 2024)
Executive Vice President & President
Mondelez Europe, Mondelez International,
Inc., Zurich, Switzerland
Place of Residence: Meilen, Switzerland
Born: May 1, 1965
Nationality: Italian-Swiss
Member since: April 22, 2024
Elected until: 2028
* Employee representatives.
1 Membership of statutory supervisory and administrative boards in Germany.
2 Membership of comparable oversight bodies.
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* Employee representatives.
1 Membership of statutory supervisory and administrative boards in Germany.
2 Membership of comparable oversight bodies.
Benedikt-Richard Freiherr von Herman
Private Investor, Wain
Place of residence: Wain
Born: October 4, 1972
Nationality: German
Member since: April 11, 2016
Elected until: 2028
Barbara Kux
Private Investor, Zurich, Switzerland
Place of residence: Zurich, Switzerland
Born: February 26, 1954
Nationality: Swiss
Member since: July 3, 2013
Elected until: 2028
Dr. Anja Langenbucher
(since April 22, 2024)
Europe Director, Bill and Melinda Gates
Foundation, Berlin/London, UK
Place of Residence: Berlin
Born: November 12, 1972
Nationality: German
Member since: April 22, 2024
Elected until: 2028
Membership:
Sofina SA, Belgium2
Laurent Martinez
Chief Financial Officer, Orange S.A.,
Issy-les-Moulineaux, France
Place of residence: Boulogne-Billancourt,
France
Born: June 23, 1968
Nationality: French
Member since: April 24, 2023
Elected until: 2028
Memberships:
BuyIn S.A., Belgium2
Orange Group:
MasOrange S.L., Spain2
Orange MEA S.A., France2
Orange Polska S.A., Poland2
Simone Menne
Private Investor, Kiel
Place of residence: Rodenbek
Born: October 7, 1960
Nationality: German
Member since: June 17, 2020
Elected until: 2028
Memberships:
Johnson Control International plc.,
Ireland2
Russell Reynolds Associates Inc., USA2
Siemens Energy1
Natalie Mühlenfeld*
(since January 31, 2025)
Board Secretary, Board Division 1 –
Politics/Transformation, IG BCE, Hannover
Place of residence: Düsseldorf
Born: August 13, 1980
Nationality: German
Member since: January 31, 2025
Elected until: 2028
Memberships:
BASF SE1
3M Deutschland GmbH1
Solventum Germany GmbH1
Andrea Pichottka*
(until December 31, 2024)
Managing Director, IG BCE
Bonusagentur GmbH, Hannover
Managing Director, IG BCE
Bonusassekuranz GmbH, Hannover
Place of residence: Bad Münder
Born: November 29, 1959
Nationality: German
Member since: October 26, 2004
Elected until: 2028
Philipp Scholz
(until April 22, 2024)
Adjunct Professor at Humboldt University
Berlin, Berlin
Place of residence: Berlin
Born: February 18, 1967
Nationality: German
Member since: April 9, 2018
Elected until: 2024
Dirk Thiede*
Member of the Works Council of
Henkel AG & Co. KGaA, Düsseldorf site
Place of residence: Düsseldorf
Born: December 3, 1969
Nationality: German
Member since: April 9, 2018
Elected until: 2028
Edgar Topsch*
Member of the General Works
Council and member of the
Finance Committee of the
General Works Council of
Henkel AG & Co. KGaA, and
Vice Chair of the Works Council of
Henkel AG & Co. KGaA, Düsseldorf site
Place of residence: Düsseldorf
Born: September 16, 1960
Nationality: German
Member since: August 1, 2010
Elected until: 2028
Michael Vassiliadis*
Chair of IG BCE, Hannover
Place of residence: Hannover
Born: March 13, 1964
Nationality: German
Member since: April 9, 2018
Elected until: 2028
Memberships:
BASF SE1
RAG AG (Vice Chair)1
STEAG GmbH1
Vivawest GmbH1
Poul Weihrauch
(until April 22, 2024)
CEO/Office of the President, Mars Inc.,
McLean, Virginia, USA
Place of residence: Washington DC, USA
Born: June 19, 1968
Nationality: Danish
Member since: April 4, 2022
Elected until: 2024
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Committees of the Supervisory Board
Nominations Committee
Functions
The Nominations Committee prepares the resolutions of the Supervisory Board on
election proposals to be presented to the Annual General Meeting for the election
of members of the Supervisory Board (representatives of the shareholders).
Members
Dr. Simone Bagel-Trah, Chair
Benedikt-Richard Freiherr von Herman, Vice Chair
Barbara Kux
Audit Committee
Functions
The Audit Committee prepares the proceedings and resolutions of the Supervisory
Board relating to the approval of the annual financial statements and the consolidated
financial statements, and relating to ratification of the proposal to be put before the
Annual General Meeting regarding appointment of the auditor. It also deals with
accounting, risk management and compliance issues.
Members
Simone Menne, Chair
Laurent Martinez, Vice Chair
Dr. Simone Bagel-Trah
Birgit Helten-Kindlein
Edgar Topsch
Michael Vassiliadis
Sustainability Committee
Functions
The Sustainability Committee deals with sustainable corporate governance. It closely
monitors the sustainability strategy of the Management Board and its further
development.
Members
Dr. Simone Bagel-Trah, Chair
Barbara Kux, Vice Chair
Dr. Konstantin Benda
Vinzenz Gruber
Birgit Helten-Kindlein
Michael Vassiliadis
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Shareholders’ Committee of Henkel AG & Co. KGaA
Dr. rer. nat. Simone Bagel-Trah
Chair,
Private Investor, Düsseldorf
Place of residence: Düsseldorf
Born: January 10, 1969
Nationality: German
Member since: April 18, 2005
Elected until: 2028
Memberships:
Henkel AG & Co. KGaA (Chair)1
Henkel Management AG (Chair)1*
Heraeus Holding GmbH1
Konstantin von Unger
Vice Chair,
Chair of the Supervisory Board,
HFO GmbH, Düsseldorf
Place of residence: London, UK
Born: September 5, 1966
Nationality: German
Member since: April 14, 2003
Elected until: 2028
Membership:
HFO GmbH (Chair)2
Dr. rer. pol. HSG Paul Achleitner
Investor, Munich
Place of residence: Munich
Born: September 28, 1956
Nationality: Austrian
Member since: April 30, 2001
Elected until: 2028
Membership:
Bayer AG1
Alexander Birken
Chair of the Management Board,
Otto Group (GmbH & Co. KG), Hamburg
Place of residence: Hamburg
Born: November 13, 1964
Nationality: German
Member since: June 17, 2020
Elected until: 2028
Memberships:
Henkel Management AG1
C&A AG, Switzerland2
Otto Group:
Hermes Germany GmbH1
Crate & Barrel Holdings, Inc., USA2
EDI Sourcing, LLC, USA2
Euromarket Design, Inc., USA2
Kaspar von Braun, Ph.D.
Astrophysicist, Pasadena, USA
Place of residence: Pasadena, USA
Born: February 12, 1971
Nationality: German
Member since: April 4, 2022
Elected until: 2028
Membership:
Henkel Management AG
(Vice Chair)1
Johann-Christoph Frey
(until April 22, 2024)
Private Investor, Klosters, Switzerland
Place of residence: Klosters, Switzerland
Born: November 26, 1955
Nationality: German
Member since: April 9, 2018
Elected until: 2024
Memberships:
Henkel Management AG1
Antai Venture Builder S.L., Spain2
Dr. rer. oec. Christoph Kneip
Tax Consultant, Düsseldorf
Place of residence: Düsseldorf
Born: February 8, 1962
Nationality: German
Member since: June 17, 2020
Elected until: 2028
Memberships:
Arenberg Schleiden GmbH2
Arenberg Recklinghausen GmbH2
Arenberg Beteiligungs-GmbH2
Rheinische Bodenverwaltung AG1
Thomas Manchot
(since April 22, 2024)
Private Investor, Düsseldorf
Place of Residence: Monaco
Born: March 16, 1965
Nationality: German
Member since: April 22, 2024
Elected until: 2028
Dr.-Ing. Dr.-Ing. E.h. Norbert Reithofer
(until April 22, 2024)
Chair of the Supervisory Board of
Bayerische Motoren Werke
Aktiengesellschaft, Munich
Place of residence: Penzberg
Born: May 29, 1956
Nationality: German
Member since: April 11, 2011
Elected until: 2024
Memberships:
Henkel Management AG1
Bayerische Motoren Werke
Aktiengesellschaft (Chair)1
*
1 Membership of statutory supervisory and administrative boards in Germany.
2 Membership of comparable oversight bodies.
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James Rowan
Chief Executive Officer & President
Volvo Car AB, Gothenburg, Sweden
Place of residence: Singapore
Born: October 14, 1965
Nationality: British
Member since: April 16, 2021
Elected until: 2028
Membership:
Link & Co. International AB, Sweden2
Jean-François van Boxmeer
Chair of the Board of Directors of
Vodafone Group plc., London, UK
Place of residence: Tervuren, Belgium
Born: September 12, 1961
Nationality: Belgian
Member since: April 15, 2013
Elected until: 2028
Memberships:
Heineken Holding N.V., Netherlands2*
Vodafone Group plc. (Chair), UK2
Poul Weihrauch
(since April 22, 2024)
CEO/Office of the President,
Mars Inc., McLean, Virginia, USA
Place of Residence: Washington DC, USA
Born: June 19, 1968
Nationality: Danish
Member since: April 22, 2024
Elected until: 2028
*
1 Membership of statutory supervisory and administrative boards in Germany.
2 Membership of comparable oversight bodies.
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Committees of the Shareholders’ Committee
Finance Committee
Functions
The Finance Committee deals principally with financial matters, accounting issues
including the statutory year-end audit, taxation and accounting policy, internal
auditing, and risk management in the corporation.
Members
Konstantin von Unger, Chair
Dr. Christoph Kneip, Vice Chair
Dr. Paul Achleitner
James Rowan
Poul Weihrauch
Personnel Committee
Functions
The Personnel Committee deals principally with personnel matters relating to members
of the Management Board, issues pertaining to human resources strategy, and with
remuneration.
Members
Dr. Simone Bagel-Trah, Chair
Kaspar von Braun, Ph.D., Vice Chair
Alexander Birken
Thomas Manchot
Jean-François van Boxmeer
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Management Board of Henkel Management AG*
Supervisory Board of Henkel Management AG*
Carsten Knobel
Chair of the Management Board
Place of residence: Hilden
Born: January 11, 1969
Nationality: German
Member since: July 1, 2012
Memberships:
Deutsche Lufthansa AG1
Kühne Holding AG, Switzerland2
Mark Dorn
Adhesive Technologies
Place of residence: Düsseldorf
Born: January 31, 1973
Nationality: British-German
Member since: February 1, 2023
Wolfgang König
Consumer Brands
Place of residence: Düsseldorf
Born: May 2, 1972
Nationality: German
Member since: June 1, 2021
Membership:
Mast-Jägermeister SE1
Sylvie Nicol
Human Resources, Infrastructure,
Sustainability
Place of residence: Düsseldorf
Born: February 28, 1973
Nationality: French
Member since: April 9, 2019
Membership:
Henkel Central Eastern Europe GmbH,
Austria2
Marco Swoboda
Finance, Purchasing,
Global Business Solutions, Digital/IT
Place of residence: Düsseldorf
Born: September 23, 1971
Nationality: German
Member since: January 1, 2020
Memberships:
Henkel Central Eastern Europe GmbH
(Chair), Austria2
Henkel South Africa (Pty.) Ltd. (Chair),
South Africa2
Henkel Strategic Business Solutions B.V.
(Chair), Netherlands2
Dr. rer. nat. Simone Bagel-Trah
Chair,
Private Investor, Düsseldorf
Place of residence: Düsseldorf
Born: January 10, 1969
Nationality: German
Member since: February 15, 2008
Elected until: 2028
Memberships:
Henkel AG & Co. KGaA (Chair)1
Henkel AG & Co. KGaA
(Shareholders’ Committee, Chair)2
Heraeus Holding GmbH1
Kaspar von Braun, Ph.D.
Vice Chair,
Astrophysicist, Pasadena, USA
Place of residence: Pasadena, USA
Born: February 12, 1971
Nationality: German
Member since: April 23, 2024
Elected until: 2028
Membership:
Henkel AG & Co. KGaA
(Shareholders’ Committee)2
Alexander Birken
Chair of the Management Board,
Otto Group (GmbH & Co. KG), Hamburg
Place of residence: Hamburg
Born: November 13, 1964
Nationality: German
Member since: April 23, 2024
Elected until: 2028
Memberships:
Henkel AG & Co. KGaA
(Shareholders’ Committee)2
C&A AG, Switzerland2
Otto Group:
Hermes Germany GmbH1
Crate & Barrel Holdings, Inc., USA2
EDI Sourcing, LLC, USA2
Euromarket Design, Inc., USA2
* Personally Liable Partner of Henkel AG & Co. KGaA.
1 Membership of statutory supervisory and administrative boards in Germany.
2 Membership of comparable oversight bodies.
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371
Independent Auditor’s Report
384
Responsibility statement
385
Quarterly breakdown of sales
386
Multi-year summary
388
Glossary
393
Credits/Legal
394
Contacts
394
Financial calendar
FURTHER INFORMATION
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INDEPENDENT AUDITOR’S
REPORT
To Henkel AG & Co. KGaA, Düsseldorf
Report on the audit of the consolidated financial statements and of the group management report
AUDIT OPINIONS
We have audited the consolidated financial statements of Henkel AG & Co. KGaA, Düsseldorf, and its subsid-
iaries (the Group), which comprise the consolidated statement of financial position as at December 31, 2024,
and the consolidated statement of income, consolidated statement of comprehensive income, consolidated
statement of changes in equity and consolidated statement of cash flows for the financial year from 1 January
to 31 December 2024, and notes to the consolidated financial statements, including material accounting
policy information. In addition, we have audited the group management report of Henkel AG & Co. KGaA,
which is combined with the Company’s management report, for the financial year from 1 January to
31 December 2024. In accordance with the German legal requirements, we have not audited the content of the
statement on corporate governance pursuant to § [Article] 289f HGB [Handelsgesetzbuch: German Commercial
Code] and § 315d HGB.
In our opinion, on the basis of the knowledge obtained in the audit,
the accompanying consolidated financial statements comply, in all material respects, with the IFRS Ac-
counting Standards issued by the International Accounting Standards Board (IASB) (the IFRS Accounting
Standards) as adopted by the EU and the additional requirements of German commercial law pursuant
to § 315e Abs. [paragraph] 1 HGB and, in compliance with these requirements, give a true and fair view of
the assets, liabilities, and financial position of the Group as at 31 December 2024, and of its financial
performance for the financial year from 1 January to 31 December 2024, and
the accompanying group management report as a whole provides an appropriate view of the Group’s
position. In all material respects, this group management report is consistent with the consolidated financial
statements, complies with German legal requirements and appropriately presents the opportunities and
risks of future development. Our audit opinion on the group management report does not cover the con-
tent of the statement on corporate governance referred to above
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Pursuant to § 322 Abs. 3 Satz [sentence] 1 HGB, we declare that our audit has not led to any reservations
relating to the legal compliance of the consolidated financial statements and of the group management
report.
BASIS FOR THE AUDIT OPINIONS
We conducted our audit of the consolidated financial statements and of the group management report in
accordance with § 317 HGB and the EU Audit Regulation (No. 537/2014, referred to subsequently as “EU
Audit Regulation”) in compliance with German Generally Accepted Standards for Financial Statement Audits
promulgated by the Institut der Wirtschaftsprüfer [Institute of Public Auditors in Germany] (IDW). Our re-
sponsibilities under those requirements and principles are further described in the “Auditor’s Responsibilities
for the Audit of the Consolidated Financial Statements and of the Group Management Report” section of
our auditor’s report. We are independent of the group entities in accordance with the requirements of Euro-
pean law and German commercial and professional law, and we have fulfilled our other German professional
responsibilities in accordance with these requirements. In addition, in accordance with Article 10 (2) point (f)
of the EU Audit Regulation, we declare that we have not provided non-audit services prohibited under Arti-
cle 5 (1) of the EU Audit Regulation. We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinions on the consolidated financial statements and on the
group management report.
KEY AUDIT MATTERS IN THE AUDIT OF THE CONSOLIDATED FINANCIAL STATEMENTS
Key audit matters are those matters that, in our professional judgment, were of most significance in our
audit of the consolidated financial statements for the financial year from 1 January to 31 December 2024.
These matters were addressed in the context of our audit of the consolidated financial statements as a
whole, and in forming our audit opinion thereon; we do not provide a separate audit opinion on these matters.
In our view, the matters of most significance in our audit were as follows:
1. Recoverability of goodwill and trademarks and other rights with indefinite useful lives
2. Recognition and measurement of pension provisions
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Our presentation of these key audit matters has been structured in each case as follows:
1. Matter and issue
2. Audit approach and findings
3. Reference to further information
Hereinafter we present the key audit matters:
1. Recoverability of goodwill and trademarks and other rights with indefinite useful lives
1.
In the consolidated financial statements of Henkel AG & Co. KGaA, goodwill amounting to € 15.0 billion
in total (42.5 % of consolidated total assets) is reported, and trademarks and other rights with indefinite
useful lives amounting to € 3.2 billion in total (9.2 % of consolidated total assets) are reported under
the line item "Other Intangible assets" of the balance sheet. Goodwill and trademarks and other
rights with indefinite useful lives are tested for impairment by the Company once a year or when
there are indications of impairment to determine any possible need for write-downs. The impairment
tests are performed at the level of the cash-generating units or groups of cash-generating units to
which the respective goodwill and trademarks and other rights with indefinite useful lives are allocated.
In the context of the impairment test the carrying amount of the relevant (groups of) cash-generat-
ing units, including the respective allocated goodwill and trademarks and other rights with indefinite
useful lives, are compared with the corresponding recoverable amount. The recoverable amount is
generally determined on the basis of fair value less costs of disposal. The valuation to determine the
fair value less costs of disposal carried out for the purposes of the impairment tests is based on the
present values of the future cash flows derived from the financial planning for the financial year 2025
prepared by the executive directors and acknowledged by the supervisory board which is extrapolated
for subsequent years based on assumptions. Expectations relating to future market developments and
country-specific assumptions about the development of macroeconomic factors, as well as the effects
of geopolitical and economic developments on the business activities of the Henkel Group are also
taken into account. Present values are calculated using discounted cash flow models. The discount
rate used is the weighted average cost of capital for the respective (groups of) cash-generating unit.
The impairment test determined that no write-downs were necessary.
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The outcome of this valuation is dependent to a large extent on the estimates made by the executive
directors of the future cash flows of the respective (groups of) cash-generating units, and on the
respective discount rates, rates of growth and other assumptions employed. The valuation is therefore
subject to considerable uncertainties. Against this background and due to the underlying complexity
of the valuation, this matter was of particular significance in the context of our audit.
2.
As part of our audit we assessed, among other things, the methodology used for the purpose of the
impairment tests and evaluated the calculation of the weighted average cost of capital. In addition,
we assessed whether the future cash flows underlying the valuation together with the weighted aver-
age cost of capital used represent an appropriate basis for the impairment tests overall. We evalu-
ated the appropriateness of the future cash flows used in the calculations, which also include the
effects of geopolitical and economic developments, among other things by comparing this data with
the Group’s extrapolated financial planning, by reconciling it against general and sector-specific
market expectations, and on the basis of the executive directors' explanations regarding key planning
value drivers. In this context, we also assessed the appropriate consideration of the costs of Group
functions in the respective (groups of) cash-generating units. With the knowledge that even relatively
small changes in the discount rate applied can have material effects on the fair values less costs of
disposal calculated in this way, we also focused our assessment on the parameters used to determine
the discount rate applied, and evaluated the measurement model. Furthermore, we evaluated the
sensitivity analyses performed by the Company in order to assess any impairment risk (lower recov-
erable amount versus carrying amount) relating to any potential change in a material assumption
underlying the valuation.
Overall, the valuation parameters and assumptions used by the executive directors are in line with
our expectations and are also within the ranges considered by us to be reasonable.
3.
The Company's disclosures on goodwill and trademarks and other rights with indefinite useful lives
are contained in the notes to the consolidated financial statements in the section entitled "Notes to
the consolidated balance sheet", note "(1) Goodwill and other intangible assets".
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2. Recognition and measurement of pension provisions
1.
In the consolidated financial statements of Henkel AG & Co. KGaA pension provisions amounting to
€ 0.6 billion are reported under the balance sheet item "Provisions for pensions and similar obligations".
The pension provisions comprise pension obligations amounting to € 4.2 billion, plan assets of € 3.8 bil-
lion and a reported surplus of plan assets over benefit obligations of € 0.2 billion. The obligations
from defined benefit pension plans are measured using the projected unit credit method. This requires
assumptions to be made in particular about long-term rates of growth in salaries and pensions, average
life expectancy and staff turnover. The average life expectancy is calculated for Germany as at 31 De-
cember 2024 based on the mortality tables published by Heubeck-Richttafeln GmbH (Heubeck-
Richttafeln RT 2018 G). Country-specific mortality tables are used to calculate obligations outside of
Germany. The discount rates must be determined by reference to market yields on high-quality corpo-
rate bonds with matching currencies and consistent maturities. This usually requires the data to be
extrapolated, since sufficient long-term corporate bonds do not exist. The plan assets are measured
at fair value, which in turn involves estimation uncertainties. From our point of view, these matters
were of particular significance in the context of our audit because the recognition and measurement
of this significant item in terms of its amount are based to a large extent on estimates and assumptions
made by the Company's executive directors.
2.
As part of our audit, we firstly assessed whether the criteria for recognition as defined benefit or
defined contribution pension commitments were met and evaluated the actuarial expert reports ob-
tained and the professional qualifications of the external experts. We also examined the specific fea-
tures of the actuarial calculations and assessed the numerical data, the actuarial parameters and the
valuation methods on which the valuations were based for compliance with the standard and ap-
propriateness, in addition to other procedures. In addition, we analyzed the development of the obli-
gation and the cost components in accordance with actuarial expert reports in the light of changes
occurring in the valuation parameters and the numerical data, and assessed their plausibility. For the
audit of the fair value of the plan assets, we obtained bank and fund confirmations and assessed
the methods on which the respective valuation was based and the valuation parameters applied.
Based on our audit procedures, we were able to satisfy ourselves that the estimates and assumptions
made by the executive directors are substantiated and sufficiently documented.
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STATEMENTS
FURTHER INFORMATION
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CONTACTS
FINANCIAL CALENDAR
3.
The Company's disclosures relating to the pension provisions are contained in the notes to the
consolidated financial statements in the section entitled "Notes to the consolidated balance sheet”
in note “(16) Provisions for pensions and similar obligations”.
OTHER INFORMATION
The executive directors are responsible for the other information. The other information comprises the state-
ment on corporate governance pursuant to § 289f HGB and § 315d HGB as an unaudited part of the group
management report.
The other information comprises further
the separate non-financial report to comply with §§ 289b to 289e HGB and with §§ 315b to 315c HGB
all remaining parts of the annual report – excluding cross-references to external information – with the
exception of the audited consolidated financial statements, the audited group management report and
our auditor’s report
Our audit opinions on the consolidated financial statements and on the group management report do not
cover the other information, and consequently we do not express an audit opinion or any other form of
assurance conclusion thereon.
In connection with our audit, our responsibility is to read the other information mentioned above and, in so
doing, to consider whether the other information
is materially inconsistent with the consolidated financial statements, with the group management report
disclosures audited in terms of content or with our knowledge obtained in the audit, or
otherwise appears to be materially misstated.
HENKEL ANNUAL REPORT 2024
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COMBINED MANAGEMENT
REPORT
CONSOLIDATED FINANCIAL
STATEMENTS
FURTHER INFORMATION
CREDITS/LEGAL
CONTACTS
FINANCIAL CALENDAR
RESPONSIBILITIES OF THE EXECUTIVE DIRECTORS AND THE SUPERVISORY BOARD FOR THE
CONSOLIDATED FINANCIAL STATEMENTS AND THE GROUP MANAGEMENT REPORT
The executive directors are responsible for the preparation of the consolidated financial statements that
comply, in all material respects, with IFRS Accounting Standards as adopted by the EU and the additional
requirements of German commercial law pursuant to § 315e Abs. 1 HGB and that the consolidated financial
statements, in compliance with these requirements, give a true and fair view of the assets, liabilities, financial
position, and financial performance of the Group. In addition, the executive directors are responsible for
such internal control as they have determined necessary to enable the preparation of consolidated financial
statements that are free from material misstatement, whether due to fraud (i.e., fraudulent financial reporting
and misappropriation of assets) or error.
In preparing the consolidated financial statements, the executive directors are responsible for assessing the
Group’s ability to continue as a going concern. They also have the responsibility for disclosing, as applicable,
matters related to going concern. In addition, they are responsible for financial reporting based on the going
concern basis of accounting unless there is an intention to liquidate the Group or to cease operations, or
there is no realistic alternative but to do so.
Furthermore, the executive directors are responsible for the preparation of the group management report
that, as a whole, provides an appropriate view of the Group’s position and is, in all material respects, consistent
with the consolidated financial statements, complies with German legal requirements, and appropriately pre-
sents the opportunities and risks of future development. In addition, the executive directors are responsible
for such arrangements and measures (systems) as they have considered necessary to enable the preparation
of a group management report that is in accordance with the applicable German legal requirements, and to
be able to provide sufficient appropriate evidence for the assertions in the group management report.
The supervisory board is responsible for overseeing the Group’s financial reporting process for the prepara-
tion of the consolidated financial statements and of the group management report.
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COMBINED MANAGEMENT
REPORT
CONSOLIDATED FINANCIAL
STATEMENTS
FURTHER INFORMATION
CREDITS/LEGAL
CONTACTS
FINANCIAL CALENDAR
AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF THE CONSOLIDATED FINANCIAL STATEMENTS
AND OF THE GROUP MANAGEMENT REPORT
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a
whole are free from material misstatement, whether due to fraud or error, and whether the group manage-
ment report as a whole provides an appropriate view of the Group’s position and, in all material respects, is
consistent with the consolidated financial statements and the knowledge obtained in the audit, complies
with the German legal requirements and appropriately presents the opportunities and risks of future devel-
opment, as well as to issue an auditor’s report that includes our audit opinions on the consolidated financial
statements and on the group management report.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accord-
ance with § 317 HGB and the EU Audit Regulation and in compliance with German Generally Accepted
Standards for Financial Statement Audits promulgated by the Institut der Wirtschaftsprüfer (IDW) will always
detect a material misstatement. Misstatements can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be expected to influence the economic decisions of
users taken on the basis of these consolidated financial statements and this group management report.
We exercise professional judgment and maintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the consolidated financial statements and of the
group management report, whether due to fraud or error, design and perform audit procedures responsive
to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our audit
opinions. The risk of not detecting a material misstatement resulting from fraud is higher than for one
resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or
the override of internal controls.
Obtain an understanding of internal control relevant to the audit of the consolidated financial statements
and of arrangements and measures (systems) relevant to the audit of the group management report in
order to design audit procedures that are appropriate in the circumstances, but not for the purpose of
expressing an audit opinion on the effectiveness of the internal control and these arrangements and
measures (systems), respectively.
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COMBINED MANAGEMENT
REPORT
CONSOLIDATED FINANCIAL
STATEMENTS
FURTHER INFORMATION
CREDITS/LEGAL
CONTACTS
FINANCIAL CALENDAR
Evaluate the appropriateness of accounting policies used by the executive directors and the reasonable-
ness of estimates made by the executive directors and related disclosures.
Conclude on the appropriateness of the executive directors’ use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to events or con-
ditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we con-
clude that a material uncertainty exists, we are required to draw attention in the auditor’s report to the
related disclosures in the consolidated financial statements and in the group management report or, if
such disclosures are inadequate, to modify our respective audit opinions. Our conclusions are based on
the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions
may cause the Group to cease to be able to continue as a going concern.
Evaluate the overall presentation, structure and content of the consolidated financial statements, includ-
ing the disclosures, and whether the consolidated financial statements present the underlying transactions
and events in a manner that the consolidated financial statements give a true and fair view of the assets,
liabilities, financial position and financial performance of the Group in compliance with IFRS Accounting
Standards as adopted by the EU and the additional requirements of German commercial law pursuant
to § 315e Abs. 1 HGB.
Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial
information of the entities or business units within the Group as a basis for forming audit opinions on the
consolidated financial statements and on the group management report. We are responsible for the direc-
tion, supervision and review of the audit work performed for purposes of the group audit. We remain solely
responsible for our audit opinions.
Evaluate the consistency of the group management report with the consolidated financial statements, its
conformity with German law, and the view of the Group’s position it provides.
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CONSOLIDATED FINANCIAL
STATEMENTS
FURTHER INFORMATION
CREDITS/LEGAL
CONTACTS
FINANCIAL CALENDAR
Perform audit procedures on the prospective information presented by the executive directors in the
group management report. On the basis of sufficient appropriate audit evidence we evaluate, in particular,
the significant assumptions used by the executive directors as a basis for the prospective information, and
evaluate the proper derivation of the prospective information from these assumptions. We do not express
a separate audit opinion on the prospective information and on the assumptions used as a basis. There is
a substantial unavoidable risk that future events will differ materially from the prospective information.
We communicate with those charged with governance regarding, among other matters, the planned scope
and timing of the audit and significant audit findings, including any significant deficiencies in internal control
that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with the relevant
independence requirements, and communicate with them all relationships and other matters that may reason-
ably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or
safeguards applied.
From the matters communicated with those charged with governance, we determine those matters that
were of most significance in the audit of the consolidated financial statements of the current period and are
therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation
precludes public disclosure about the matter.
Other legal and regulatory requirements
Report on the Assurance on the Electronic Rendering of the Consolidated Financial Statements and the Group
Management Report Prepared for Publication Purposes in Accordance with § 317 Abs. 3a HGB
ASSURANCE OPINION
We have performed assurance work in accordance with § 317 Abs. 3a HGB to obtain reasonable assurance as
to whether the rendering of the consolidated financial statements and the group management report (herein-
after the “ESEF documents”) contained in the electronic file Henkel_KA+KLB_ESEF-2025-02-07.zip and pre-
pared for publication purposes complies in all material respects with the requirements of § 328 Abs. 1 HGB
for the electronic reporting format (“ESEF format”). In accordance with German legal requirements, this
assurance work extends only to the conversion of the information contained in the consolidated financial
statements and the group management report into the ESEF format and therefore relates neither to the
information contained within these renderings nor to any other information contained in the electronic file
identified above.
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CONSOLIDATED FINANCIAL
STATEMENTS
FURTHER INFORMATION
CREDITS/LEGAL
CONTACTS
FINANCIAL CALENDAR
In our opinion, the rendering of the consolidated financial statements and the group management report
contained in the electronic file identified above and prepared for publication purposes complies in all material
respects with the requirements of § 328 Abs. 1 HGB for the electronic reporting format. Beyond this assur-
ance opinion and our audit opinion on the accompanying consolidated financial statements and the accom-
panying group management report for the financial year from 1 January to 31 December 2024 contained in
the “Report on the Audit of the Consolidated Financial Statements and on the Group Management Report”
above, we do not express any assurance opinion on the information contained within these renderings or on
the other information contained in the electronic file identified above.
BASIS FOR THE ASSURANCE OPINION
We conducted our assurance work on the rendering of the consolidated financial statements and the group
management report contained in the electronic file identified above in accordance with § 317 Abs. 3a HGB
and the IDW Assurance Standard: Assurance Work on the Electronic Rendering of Financial Statements and
Management Reports, Prepared for Publication Purposes in Accordance with § 317 Abs. 3a HGB (IDW AsS
410 (06.2022)) and the International Standard on Assurance Engagements 3000 (Revised). Our responsibility
in accordance therewith is further described in the “Group Auditor’s Responsibilities for the Assurance Work
on the ESEF Documents” section. Our audit firm applies the IDW Standard on Quality Management: Require-
ments for Quality Management in the Audit Firm (IDW QMS 1 (09.2022)).
RESPONSIBILITIES OF THE EXECUTIVE DIRECTORS AND THE SUPERVISORY BOARD FOR THE ESEF
DOCUMENTS
The executive directors of the Company are responsible for the preparation of the ESEF documents including
the electronic rendering of the consolidated financial statements and the group management report in
accordance with § 328 Abs. 1 Satz 4 Nr. [number] 1 HGB and for the tagging of the consolidated financial
statements in accordance with § 328 Abs. 1 Satz 4 Nr. 2 HGB.
In addition, the executive directors of the Company are responsible for such internal control as they have
considered necessary to enable the preparation of ESEF documents that are free from material non-compli-
ance with the requirements of § 328 Abs. 1 HGB for the electronic reporting format, whether due to fraud or
error.
The supervisory board is responsible for overseeing the process for preparing the ESEF documents as part of
the financial reporting process.
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COMBINED MANAGEMENT
REPORT
CONSOLIDATED FINANCIAL
STATEMENTS
FURTHER INFORMATION
CREDITS/LEGAL
CONTACTS
FINANCIAL CALENDAR
GROUP AUDITOR’S RESPONSIBILITIES FOR THE ASSURANCE WORK ON THE ESEF DOCUMENTS
Our objective is to obtain reasonable assurance about whether the ESEF documents are free from material
non-compliance with the requirements of § 328 Abs. 1 HGB, whether due to fraud or error. We exercise
professional judgment and maintain professional skepticism throughout the assurance work. We also:
Identify and assess the risks of material non-compliance with the requirements of § 328 Abs. 1 HGB,
whether due to fraud or error, design and perform assurance procedures responsive to those risks, and
obtain assurance evidence that is sufficient and appropriate to provide a basis for our assurance opinion.
Obtain an understanding of internal control relevant to the assurance work on the ESEF documents in or-
der to design assurance procedures that are appropriate in the circumstances, but not for the purpose of
expressing an assurance opinion on the effectiveness of these controls.
Evaluate the technical validity of the ESEF documents, i.e., whether the electronic file containing the ESEF
documents meets the requirements of the Delegated Regulation (EU) 2019/815 in the version in force at
the date of the consolidated financial statements on the technical specification for this electronic file.
Evaluate whether the ESEF documents provide an XHTML rendering with content equivalent to the au-
dited consolidated financial statements and to the audited group management report.
Evaluate whether the tagging of the ESEF documents with Inline XBRL technology (iXBRL) in accordance
with the requirements of Articles 4 and 6 of the Delegated Regulation (EU) 2019/815, in the version in
force at the date of the consolidated financial statements, enables an appropriate and complete machine-
readable XBRL copy of the XHTML rendering.
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CONSOLIDATED FINANCIAL
STATEMENTS
FURTHER INFORMATION
CREDITS/LEGAL
CONTACTS
FINANCIAL CALENDAR
Further Information pursuant to Article 10 of the EU Audit Regulation
We were elected as group auditor by the annual general meeting on 22 April 2024. We were engaged by
the supervisory board on 7 May 2024. We have been the group auditor of the Henkel AG & Co. KGaA,
Düsseldorf, without interruption since the financial year 2020.
We declare that the audit opinions expressed in this auditor’s report are consistent with the additional
report to the audit committee pursuant to Article 11 of the EU Audit Regulation (long-form audit report).
Reference to an other matter – use of the auditor’s report
Our auditor’s report must always be read together with the audited consolidated financial statements and
the audited group management report as well as the assured ESEF documents. The consolidated financial
statements and the group management report converted to the ESEF format – including the versions to be
filed in the company register – are merely electronic renderings of the audited consolidated financial state-
ments and the audited group management report and do not take their place. In particular, the “Report on
the Assurance on the Electronic Rendering of the Consolidated Financial Statements and the Group Manage-
ment Report Prepared for Publication Purposes in Accordance with § 317 Abs. 3a HGB” and our assurance
opinion contained therein are to be used solely together with the assured ESEF documents made available in
electronic form.
German public auditor responsible for the engagement
The German Public Auditor responsible for the engagement is Antje Schlotter.
Düsseldorf, 7 February 2025
PricewaterhouseCoopers GmbH
Wirtschaftsprüfungsgesellschaft
Dr. Peter Bartels
Antje Schlotter
Wirtschaftsprüfer
Wirtschaftsprüferin
(German Public Auditor)
(German Public Auditor)
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STATEMENTS
FURTHER INFORMATION
CREDITS/LEGAL
CONTACTS
FINANCIAL CALENDAR
RESPONSIBILITY STATEMENT
To the best of our knowledge and in accordance with the applicable accounting principles, the consolidated
financial statements give a true and fair view of the net assets, financial position and results of operations of
the Group, and the management report of the Group, which is combined with the management report of
Henkel AG & Co. KGaA, includes a fair review of the development, performance and results of the business
and the position of the Group, together with a cogent description of the principal opportunities and risks
associated with the expected development of the Group.
Düsseldorf, February 7, 2025
Henkel Management AG
Management Board
Carsten Knobel,
Mark Dorn, Wolfgang König, Sylvie Nicol, Marco Swoboda
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STATEMENTS
FURTHER INFORMATION
CREDITS/LEGAL
CONTACTS
FINANCIAL CALENDAR
QUARTERLY BREAKDOWN
OF SALES
1st quarter
2nd quarter
Half year
3rd quarter
4th quarter
Full year
in million euros
2023
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
2024
Adhesive Technologies
2,791
2,677
2,683
2,798
5,475
5,475
2,711
2,800
2,604
2,695
10,790
10,970
Change versus previous year
6.1%
-4.1%
-5.4%
4.3%
0.1%
0.0%
-9.5%
3.3%
-6.3%
3.5%
-4.0%
1.7%
Adjusted for foreign exchange
5.0%
-0.4%
-0.5%
4.4%
2.1%
2.0%
-3.0%
6.5%
0.3%
3.4%
0.3%
3.5%
Organic
6.8%
1.3%
2.7%
2.6%
4.7%
2.0%
0.8%
3.7%
2.8%
1.7%
3.2%
2.4%
Consumer Brands
2,772
2,605
2,593
2,662
5,365
5,266
2,695
2,653
2,505
2,547
10,565
10,467
Change versus previous year
7.3%
-6.0%
-5.7%
2.6%
0.6%
-1.8%
-7.6%
-1.6%
-6.4%
1.7%
-3.3%
-0.9%
Adjusted for foreign exchange
6.5%
-2.0%
1.1%
2.1%
3.7%
0.0%
-1.3%
2.3%
-1.7%
1.3%
1.0%
0.9%
Organic
7.0%
5.2%
4.5%
3.3%
5.7%
4.3%
6.2%
2.7%
6.9%
0.6%
6.1%
3.0%
Corporate
46
35
40
36
86
71
34
40
39
38
159
149
Henkel Group
5,609
5,317
5,316
5,496
10,926
10,813
5,440
5,492
5,148
5,281
21,514
21,586
Change versus previous year
6.4%
-5.2%
-5.8%
3.4%
0.1%
-1.0%
-9.0%
1.0%
-6.6%
2.6%
-3.9%
0.3%
Adjusted for foreign exchange
5.5%
-1.3%
0.0%
3.2%
2.7%
0.9%
-2.7%
4.5%
-0.9%
2.4%
0.4%
2.1%
Organic
6.6%
3.0%
3.2%
2.8%
4.9%
2.9%
2.8%
3.3%
4.5%
1.1%
4.2%
2.6%
HENKEL ANNUAL REPORT 2024
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COMBINED MANAGEMENT
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CONSOLIDATED FINANCIAL
STATEMENTS
FURTHER INFORMATION
CREDITS/LEGAL
CONTACTS
FINANCIAL CALENDAR
MULTI-YEAR SUMMARY
in million euros
2018
2019
2020
2021
2022
2023¹
2024
Results of operations
Sales
19,899
20,114
19,250
20,066
22,397
21,514
21,586
Adhesive Technologies
9,403
9,461
8,684
9,641
11,242
10,790
10,970
Consumer Brands
10,368
10,533
10,456
10,283
10,928
10,565
10,467
Corporate
128
121
110
142
228
159
149
Gross margin
46.0%
45.9%
46.1%
44.7%
41.8%
44.9%
50.1%
Research and development expenses
484
499
501
727
570
587
634
Operating profit (EBIT)
3,116
2,899
2,019
2,213
1,810
2,011
2,831
Adhesive Technologies
1,669
1,631
1,248
1,524
1,500
1,423
1,715
Consumer Brands
1,559
1,391
933
874
458
753
1,276
Corporate
-112
-123
-162
-185
-149
-165
-161
Income before tax
3,051
2,811
1,925
2,149
1,689
1,888
2,723
Tax rate
23.6%
25.2%
26.0%
24.2%
25.8%
29.1%
25.4%
Net income
2,330
2,103
1,424
1,629
1,253
1,340
2,032
Attributable to shareholders of Henkel AG & Co. KGaA
2,314
2,085
1,408
1,634
1,259
1,318
2,007
Earnings per preferred share (EPS)
in euros
5.34
4.81
3.25
3.78
2.95
3.15
4.80
Net return on sales2
11.7%
10.5%
7.4%
8.1%
5.6%
6.2%
9.4%
Net assets
Total assets
29,562
31,409
30,238
32,674
33,170
31,727
35,267
Non-current assets
20,879
22,279
20,906
22,264
22,744
22,443
24,235
Current assets
8,683
9,130
9,332
10,410
10,425
9,285
11,031
Equity
16,999
18,611
17,870
19,794
20,157
19,999
21,822
Liabilities
12,563
12,798
12,368
12,879
13,013
11,728
13,445
Equity ratio
57.5%
59.3%
59.1%
60.6%
60.8%
63.0%
61.9%
Return on equity3
14.9%
12.4%
7.6%
9.1%
6.3%
6.6%
10.2%
Leverage
0.8
0.8
0.6
0.4
0.8
0.3
0.3
TABLE CONTINUED ON NEXT PAGE
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FURTHER INFORMATION
CREDITS/LEGAL
CONTACTS
FINANCIAL CALENDAR
in million euros
2018
2019
2020
2021
2022
2023¹
2024
Financial position
Cash flow from operating activities
2,698
3,241
3,080
2,141
1,247
3,255
3,120
Capital expenditures4
1,104
1,262
1,220
802
716
1,120
1,982
Investment ratio4
as % of sales
5.5
6.3
6.3
4.0
3.2
5.2
9.2
Shares
Dividend per ordinary share
in euros
1.83
1.83
1.83
1.83
1.83
1.83
2.025
Dividend per preferred share
in euros
1.85
1.85
1.85
1.85
1.85
1.85
2.045
Total dividends6
805
805
805
798
776
771
8505
Payout ratio6
30.9%
34.2%
43.7%
40.5%
46.6%
42.4%
37.9%
Share price, ordinary shares, at year-end7
in euros
85.75
84.00
78.85
68.70
60.25
64.98
74.40
Share price, preferred shares, at year-end7
in euros
95.40
92.20
92.30
71.14
65.02
72.86
84.70
Market capitalization at year-end7, 8
in bn euros
38.9
37.9
36.6
30.3
26.2
28.5
32.9
Employees
Total9
(at December 31)
53,000
52,450
52,950
52,450
51,200
47,750
47,150
Germany
8,500
8,550
8,700
8,700
8,550
8,350
8,050
Abroad
44,500
43,900
44,250
43,750
42,650
39,400
39,100
1 Amended following the updated allocation of the purchase price for the shares in Composite Technology Intermediate, Inc.
2 Net income divided by sales.
3 Net income divided by equity at the start of the year.
4 Capital expenditures in existing operations and acquisitions.
5 Proposal to shareholders for the Annual General Meeting on April 28, 2025.
6 Since fiscal 2021, calculated based on the number of shares qualifying for dividends as of December 31.
7 Closing share prices, Xetra trading system.
8 Based on all outstanding shares, i.e. number of shares issued less treasury stock.
9 Basis: permanent employees excluding trainees.
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CONTACTS
FINANCIAL CALENDAR
GLOSSARY
Adjusted EBIT
Earnings Before Interest and Taxes (EBIT) adjusted for exceptional items in the form of one-time expenses
and income, and for restructuring expenses.
Adjusted return on capital employed (ROCE)
Profitability metric reflecting the adjusted ratio of earnings before interest and taxes (adjusted EBIT) to capi-
tal employed.
Capital employed
Capital invested in company assets and operations.
Compliance
Term given to: Acting in conformity with applicable regulations; adherence to laws, rules, regulations and
in-house or corporate codes of conduct.
Compound annual growth rate
Year-over-year rate of growth, e.g. of an investment.
Corporate governance
System of management and control, primarily within listed companies. Describes the powers and authority
of corporate management, the extent to which these need to be monitored and the extent to which struc-
tures should be put in place through which certain interest/stakeholder groups may exert influence on the
corporate management.
Corporate Governance Code
The German Corporate Governance Code (abbreviation: GCGC; German: Corporate Governance Kodex) is in-
tended to render the rules governing corporate management and control for a stock company in Germany
transparent for national and international investors, engendering trust and confidence in the corporate man-
agement of German companies.
Credit default swap
A financial contract in which the issuer of a bond insures the buyer’s potential losses in the event of the
issuer defaulting. Instrument used by Henkel to evaluate the credit risks of banks.
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Credit facility
Aggregate of all loan services available on call from one or several banks as cover for an immediate credit
requirement.
Declaration of compliance
Declaration made by the management/executive board and supervisory board of a company according to
Section 161 German Stock Corporation Act [AktG], confirming implementation of the recommendations of
the Governmental Commission for the German Corporate Governance Code.
Defined contribution plans/Defined contribution pension system
Post-employment benefit plans under which an entity pays fixed contributions into a separate, independent
fund and is subject to no legal or constructive obligation to pay further contributions if the fund does not
hold sufficient assets to pay all employee benefits relating to employee service in current and prior periods.
Derivative
Financial instrument, the value of which changes in response to changes in an underlying asset or an index,
which will be settled at a future date and which initially requires only a small or no investment.
Earnings per share (EPS)
Net profit divided by the number of shares outstanding. Metric indicating the income of a joint stock corpo-
ration divided between the weighted average number of its shares outstanding. EPS is calculated in accord-
ance with IAS 33 Earnings Per Share.
EBIT
Abbreviation for Earnings Before Interest and Taxes. Standard profit metric that enables the earning power
of the operating business activities of a company to be assessed independently of its financial structure,
facilitating comparability between entities where these are financed by varying levels of debt capital.
EBITDA
Abbreviation for Earnings Before Interest, Taxes, Depreciation and Amortization; impairment losses and re-
versals/write-ups are also eliminated from the earnings calculation.
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Economic Value Added (EVA®)
The EVA concept reflects the net wealth generated by a company over a certain period. A company achieves
positive EVA when the operating result exceeds the weighted average cost of capital. The WACC corre-
sponds to the yield on capital employed expected by the capital market. EVA is a registered trademark of
Stern Stewart & Co.
Equity ratio
Financial metric indicating the ratio of equity to total capital. It expresses the share of total assets financed
out of equity (owners’ capital) rather than debt capital (provided by lenders). Serves to assess the financial
stability and independence of a company.
Free cash flow
Cash flow actually available for acquisitions, dividend payments, the reduction of borrowings, and allocations
to pension funds.
Gross margin
Indicates the percentage by which a company’s sales exceed cost of sales, i.e. the ratio of gross profit to
sales.
Gross profit
Difference between sales and cost of sales.
Hedge accounting
Method for accounting for hedging transactions whereby the compensatory effect of changes in the fair
value of the hedging instrument (derivative) and of the underlying asset or liability is recognized in either
the statement of income or the statement of comprehensive income.
IMEA
Abbreviation for the region comprised of India, Middle East and Africa.
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KGaA
Abbreviation for “Kommanditgesellschaft auf Aktien.” A KGaA is a company with a legal identity (legal entity)
in which at least one partner has unlimited liability with respect to the company’s creditors (personally liable
partner, aka general partner), while the liability for such debts of the other partners participating in the
share-based capital stock is limited to their share capital (limited shareholders).
Long Term Incentive (LTI)
Term given to bonus aligned to long-term financial performance.
Net financial position
The net financial position is defined as cash and cash equivalents including cash and cash equivalents held
for sale plus readily monetizable securities and time deposits and financial collateral provided, less borrow-
ings, plus positive and minus negative fair values of derivative financial instruments.
Net financial position extended
In the extended definition, provisions for pensions and similar obligations, lease liabilities and sundry finan-
cial liabilities are deducted from the net financial position, while receivables arising from reimbursement
rights in respect of Henkel Trust e.V. and external pension funds are added.
Net working capital
Inventories plus payments on account, receivables from suppliers and trade accounts receivable, less trade
accounts payable, liabilities to customers, and current sales provisions.
Non-controlling interests
Proportion of equity attributable to third parties (non-controlling shareholders, aka minority shareholders) in
subsidiaries included within the scope of consolidation. Valued on a proportional net asset basis. A pro-rata
portion of the net income of the Group is attributable to shareholders owning non-controlling interests.
Organic sales growth
Growth in sales after adjusting for effects arising from acquisitions, divestments and foreign exchange ef-
fects – i.e. “top line” growth generated from within. Also excluded from the calculation is the organic sales
development in Russia since the beginning of the second quarter of 2022 against the background of the an-
nounced and since completed exit of the business activities there, and the effects arising from the applica-
tion of IAS 29 (Financial Reporting in Hyperinflationary Economies) for Türkiye.
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Payout ratio
Indicates what percentage of annual net income (adjusted for exceptional items) is paid out in dividends to
shareholders, including non-controlling interests.
Relative total shareholder return (TSR)
Total shareholder return (TSR) describes the share price performance plus any gross dividends paid during
the respective period. Relative TSR is derived by comparing the TSR of Henkel preferred shares with the TSR
of a benchmark (DAX Performance Index).
Return on capital employed (ROCE)
Profitability metric reflecting the ratio of earnings before interest and taxes (EBIT) to capital employed.
Return on sales (EBIT)
Operating business metric derived from the ratio of EBIT to revenues.
Return-enhancing portfolio
Contains investments in equities and alternative investments, serving the purpose of improving the overall
return of the pension plan assets over the long term in order to raise the coverage ratio of pension funds. In
addition, a broader investment horizon increases the level of investment diversification.
Swap
Term given to the exchange of capital amounts in differing currencies (currency swap) or of different interest
obligations (interest swap) between two entities.
Value-at-risk
Method, based on fair value, used to calculate the maximum likely or potential future loss arising from a
portfolio.
Weighted average cost of capital (WACC)
Average return on capital, expressed as a percentage and calculated on the basis of a weighted average of
the cost of debt and equity. WACC represents the minimum return expected of a company by its lenders for
financing its assets.
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Published by
Henkel AG & Co. KGaA
40191 Düsseldorf, Germany
Phone: +49 (0) 211 797-0
© 2025 Henkel AG & Co. KGaA
Edited by
Corporate Accounting and Subsidiary Controlling,
Investor Relations, Corporate Communications
Coordination
Martina Flögel, Leslie Iltgen, Lisa Lind
Design and typesetting in SmartNotes
RYZE Digital
www.ryze-digital.de
Photographs
Henkel; Nils Hendrik Müller
English translation
RWS Holdings PLC
Proofing
Paul Knighton, Cambridge; Thomas Krause, Krefeld
Date of publication of this report
March 11, 2025
PR no.: 03 25 0
Except as otherwise noted, all marks used in this publication
are trademarks and/or registered trademarks of the Henkel
Group in Germany and elsewhere.
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. Statements
with respect to the future are characterized by the use of
words such as expect, intend, plan, anticipate, believe, estimate,
and similar terms. These 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 there-
fore 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 eco-
nomic environment and the actions of competitors and others
involved in the marketplace. Henkel neither plans nor under-
takes to update forward-looking statements. This document has
been issued for information purposes only and is not intended
to constitute investment advice or an offer to sell, or a solici-
tation of an offer to buy, any securities.
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CONTACTS
Corporate Communications
Phone: +49 (0) 211 797-3533
Email: corporate.communications@henkel.com
Investor Relations
Phone: +49 (0) 211 797-3937
Email: info@ir.henkel.com
Our website:
www.henkel.com
Our financial publications:
www.henkel.com/financial-reports
Our sustainability publications:
www.henkel.com/sustainability/reports
Henkel on social media:
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www.instagram.com/henkel
www.facebook.com/henkel
www.youtube.com/henkel
FINANCIAL
CALENDAR
Annual General Meeting
Henkel AG & Co. KGaA 2025:
Monday, April 28, 2025
Publication of
Statement for the First Quarter 2025:
Thursday, May 8, 2025
Publication of
Report for the First Half Year 2025:
Thursday, August 7, 2025
Publication of
Statement for the Third Quarter 2025:
Thursday, November 6, 2025
Publication of Report for Fiscal 2025:
Wednesday, March 11, 2026