Achieve our full business potential
For this, we have identified the following drivers:

1. Portfolio optimization
   Within the Laundry & Home Care business sector, we aim to increase our profitability in the mass categories such as heavy-duty detergents and hand dishwashing products, and drive growth in the profitable specialty categories such as household cleaners and fabric softeners. In the Cosmetics/Toiletries business sector, we intend to further enhance profitability by strengthening our innovation leadership and expanding the Schwarzkopf brand. Within the Adhesive Technologies business sector we aim to improve our profitability in the automotive segment and consumer adhesives business, drive growth in specialty applications and utilize our advantages of scale with innovations in the industrial adhesives segment.
   In addition, we intend to achieve disproportionate expansion in the growth regions through increased capital expenditures, and increase the share of sales accounted for by these markets over the next few years to 45 percent – while also improving our margins. At the same time, we also want to further increase our market shares in the mature markets.
2. Concentration on our top brands
   Here, the focus is on fewer but stronger brands and further expansion of our strong regional and global brands. Brand awareness is to be further enhanced through extensive investment. Our three top brands Schwarzkopf, Loctite and Persil already account for 25 percent of our sales. Our objective is to grow organically twice as fast with these and other top brands as Henkel overall, and therefore to significantly expand their share of total sales.
3. Innovations and the innovation rate
   With an innovation rate1) of more than 30 percent, we already count among the most innovative companies in our strategic areas of competence. We are helped in this respect by the proximity we have to our customers and consumers, incorporating both audiences in our product development activities where appropriate. We have also made it our principle only to launch a new product onto the market if it has a positive effect on the gross margin of the business sector concerned.
4. Operational excellence
   In our purchasing activities, our aim is to generate economies of scale through the further development of our strategies. This includes concentrating on strategic suppliers and on procuring materials from low-wage countries. Our objectives with regard to production and supply chain management include a reduction in the number of production sites, particularly in the mature markets. This will enable us to reduce the complexity of our structures and better utilize available capacities. With these measures and improvements in our administration, selling and distribution expenses (achieved, for example, through the systematic utilization of standardization opportunities, shared service centers and the outsourcing of non-core activities), we expect to be able to realize significant cost savings.

Focus more on our customers
In order to place our customers right at the center of everything that we do, we need to prioritize expanding our contacts with them at the highest managerial level (top-to-top contacts), coupled with the further development of our partnership structures. Our aims are to establish a joint strategic approach to our markets, to expand services offering a measurable added value for our customers, and to effectively marshal our own competences in the form of, for example, our leading role in the field of sustainability/corporate social responsibility (CSR). The objective is to generate organic growth with our key accounts equivalent to 1.5 times the figure for Henkel as a whole.

Strengthen our global team
Our employees are our most important asset. With clear and unequivocal feedback, significant rewards in recognition of individual performance, and tailored development plans, we ensure that our competent and motivated team can master the challenges with which they are confronted. We are keen to develop and promote our managers from within the corporation. At the same time, we are also aware of the need to bring in external talents who best know their local markets, the requirements our customers in those markets and the cultures of the individual countries concerned. Already today, our Düsseldorf headquarters is staffed by people from 40 different countries; and the proportion of female managers is well above 25 percent worldwide, with the trend clearly rising. The diversity of our global team constitutes a competitive advantage for Henkel, and one we wish to continuously extend.

Financial Targets for 2012
We have set ourselves new financial targets for 2012 and are confident that, by following the strategic priorities indicated above, we will achieve them: