Henkel Life Summer 2014

Henkel LifeSUMMER 2014 / WWW. HENKEL.BE / WWW. HENKEL.NL / WWW. HENKEL.LU / BENELUXPORTRAIT GEERT LUYCKX, FRESH APPROACH SCHOOL PROJECT:ADHESIVE TECHNOLOGIES, HELPS US BETTER EDUCATE FOR A MORENEW BENELUX EXCOM TARGET SHOPPERS SUSTAINABLE LIFEPage 4-5 Page 10 Page 12-13 GeertLuyckxLeading the way to success

Summer 2014 Table of contents Henkel Life Benelux News 3 Global and Benelux Q1 2014 financial resultsDear Colleagues, PortraitThe global Henkel financials of the first quar- 4-5 Geert Luyckx,ter confirmed that we are in good shape. All Director Sales Adhesive Technologiesour business units grew and the profit devel- Electronics (AE) Europe & IMEA,oped in line with our 2016 objectives. The appointed Member of the Benelux ExComemerging countries continued to experienceabove average growth whereas we in the Strategymature countries also contributed to the posi-tive top-line development. 6-9 Strategy in action: n Outperform: Adhesives bring innovation to car wrappingThe Benelux know-how is also contributing n Globalize: Touchscreen successto the emerging market growth, especially in n Simplify: Customer Segmentation benefits businessTurkey. In May Walter Brattinga moved and n Inspire: Inno Insights highlight innovationtook on the role of General Manager of AC inIstanbul. He was succeeded by Amélie Vidal- Organizational UnitsSimi who is now in charge of theBeNeFrance AC business. Geert Luyckx, 10 Fresh approach helps us better target shoppersHead of AE Europe, India, Middle East and 11 Inclusion starts with IAfrica based in Westerlo, took over as chair- 14 World Cup do’s and don’tsman of the Adhesive Technologies Country 14 Importance of cyber security to protect our businessCouncil Benelux and member of the BeneluxExCom. You’ll get to know him better in this Sustainabilityedition of Henkel Life. 12-13 School project: Educate for a more sustainable lifeIn the feature ‘Outperform. Globalize. Sim-plify. Inspire’, you’ll find some examples from Personnel Lifethe Benelux of what we do and how theseactivities link to our strategy. This article is 15 Calendar: Talks@Henkelmeant to not only inspire, but also to illus- 15 Personneltrate how these four words become more 15 In the spotlight: Abdullah Yildizand more evident in our day-to-day activi-ties. Another nice example of 'Outperform & Henkel Life GlobalInspire' is the Diversity & Inclusion campaign “Diversity is in Your Hands”of Human Resources: Inclusion starts with I.Working with diverse colleagues is inspiring IMPRINT © 2014 / Henkel Benelux / Summer 2014and motivating. Also by adopting an inclusivebehavior we can obtain a competitive busi- Responsible publisher: Eric Dumez, Havenlaan 16, Avenue du Port - 1080 Brusselsness advantage, as it enables us to better Responsible: Gaëlle Vilatteunderstand our colleagues, customers and Editorial staff: Maud Colléethe markets we operate in to become even Editorial assistant: Jana Mostynovamore successful. Correspondent: A lain Engels, Cindy Lenaerts, Jean-Philippe Lietaer, Eszter Marai, Elodie Picard, Karolien Pieters, Magda Sempels, Jan Sturtewagen and Wouter Van Dyck.We also continue on our sustainability mis- Journalist: Nina Hakamiession with ambitious 2030 targets. We are con- Graphic design: Friedemann BVBAtributing to spreading the word and sharing Printing: Altaviaour enthusiasm with the younger generationby visiting schools and creating opportunitiesto improve daily consumer behavior duringbrainstorming sessions in the classroom.Our commitment to sustainability goes wellbeyond our product offers.And, summer is around the corner! I wishyou all success in business and enjoyableholidays.Eric Dumez2  Henkel Life

NEWS Summer 2014Strong Global start tofiscal year 2014In the first quarter of 2014, all of Henkel’s business units reported organic salesgrowth and improved profitability worldwide. The performance in the emergingmarkets was very strong, while we also experienced growth in the mature markets.Sales rose by 2.0% to 1,450 million euros in an increased EBIT margin, and the TWC The start of the year for Beauty Carein the Western Europe region, a market business experienced significant market Professional was marked by a very suc-environment that remains highly com- gains in both countries. cessful relaunch of Bonacure and sev-petitive. Organic sales increased by 2.4% eral impactful customer events, such aswith growth in most countries offsetting ❚❚Beauty Care Benelux Essential Looks and BC experience days.a slight decline in Southern Europe. East- Beauty Care Retail recorded good sales The business unit experienced strong newern Europe reported sales to the amount development in the Netherlands and customer acquisition performance.of 670 million euros compared to 718 mil- strong GP1% development in the Beneluxlion euros in the prior-year quarter. Russia driven by innovations. The solid inno- ❚❚Adhesive Technologies Beneluxand Turkey were the main drivers of the vation pipeline fueled the top line of the Adhesive Technologies reported overallorganic growth of 5.4%. business unit. top-line growth in comparable figures, while industrial business top-line growth In the Benelux all three business sectors was even higher. The gross profitability ofcontributed to the positive organic NES the industrial business, driven by the cen-evolution. Our profitability came under tralized and local businesses, was higherpressure due to the continued challeng- than the previous year.ing market environment, but our top lineexperienced solid growth development. The developments in Eastern Europe are expected to add uncertainty to the already❚❚Laundry & Home Care Benelux challenging economic environment, andDespite heavily increased promotional agility and flexibility remain key to suc-pressure in traditional trade, Laundry cess. We are committed to further simpli-& Home Care reported top-line growth fying and accelerating the processes anddriven by the Netherlands and recovery structures, and achieving the targets.in Belgium. Strong cost control resultedThe Outstanding Performance Recognition awardAt the end of the Financial Talks an Outstanding Performance Recognition (OPR) award for Q1 2014,was presented by the Benelux ExCom to an individual and team for a significant accomplishmentin line with our strategic priorities. In Belgium, FrontOffice In the Netherlands, Lianne Boeljon-Kaat and her team from Benelux AI ( John Boer, the Laundry & Home Care division were awarded, thanks to Fabienne Collee, Marion an outstanding development of Witte Reus in Toilet blocks Froger, Edwin Van den Berg, category (all time high market share) and linked key contri- Ilse Van Tieghem and Inge bution to profitability recovery for the whole division. Wuyts) were recognized for their outstanding performance Nina Hakamies in serving the AI customers and gaining the trust of the AIH customers out of the Cytec Acquisition. On top they hit the End Customer Servicel Level of 95% and more in Q1/2014. Henkel Life  3

Summer 2014 PCOORLTURMAINTGeert LuyckxLeadingthewaytosuccessGeert Luyckx, Director Sales Adhesive Technologies Electronics (AE) Europe & India, Middle East andAfrica , was appointed Member of the Benelux ExCom and Chairman of the Adhesive TechnologiesCountry Council Benelux effective as of May 1, 2014.Geert started his career 25 years ago in the production sites, not at the main offices, ❚❚What is Adhesive Electronics’ currentproduct development at Emerson & Cum- and it is important that they are repre- market position?ing. He joined Henkel as Global Business sented at the ExCom.Manager of Industrial Electronics in 2009 In Europe and IMEA, AE has approximatelyafter the acquisition of National Starch. In As part of the ExCom I represent all the 16-17% of the market share. Benelux is actu-2012 he moved into his sales role cover- Adhesives Sub BU's and cascade the deci- ally a pretty small market, the majority ofing Europe & IMEA and now also serves as sions to the Country Council. My key tasks our business is conducted outside, howeverMember of the Benelux ExCom and Chair- as Chairman of the Council are to cascade the centralized business model entails thatman of the Adhesive Technologies Coun- ExCom decisions to the businesses, coor- the figures are part of the Benelux results.try Council Benelux. dinate cross business topics, review and drive change processes, share ideas, and The consolidation and centralization of❚❚How do you combine your roles and transfer global decisions to a local level. our customer service had an impact on AE overseeing such a large geographical I also ensure that ExCom decisions get sales in 2013, which accounted for 23% of area? implemented. Adhesives sales. We expect the installation of the Western European Customer ServiceI see my role on the ExCom as being the Covering this vast area is a challenge, desk in Westerlo to have an even greatervoice of Adhesive Technologies. A lot of but the sales organization was restructured impact on our business in 2014. This movepeople who work in Adhesives are based at and split into 4 sub regions and I have a also enabled us to significantly simplify our great team in place, which makes it highly processes, which is a big step forward and a manageable. huge advantage for us and our customers.4  Henkel Life

PORTRAIT Summer 2014❚❚What challenges does Adhesive We need to focus but trust must go both ways. To be suc- Electronics face? on innovation cessful we all have to deliver. We either win We need to grow top line sales and together or we lose together. and new businessin light of the current difficult economic development. It is very important that people are solu-environment we can’t count on help from tion-oriented. Everyone should feel com-the market, it’s not growing. We therefore people can participate in all of the Henkel fortable raising issues, but also think aboutneed to grow our market share. In order to Benelux initiatives in one way or another what they can do to help solve the problem.achieve this and outperform the competi- We all need to work on turning a negativetion, we need to focus on innovation, new ❚❚What do you do to increase performance situation into a positive one.business development and being more and develop a good team?aggressive with our pricing. The mega trend ❚❚Will combining the 3 majorin our industry is increasing globalization In my opinion, coaching and motivating are responsibilities affect how you leadand the importance of the emerging mar- essential. My role is to empower people and yourself?kets. Henkel has the global footprint to pro- create a positive environment. As a leaderduce where our customer is based and we I need to be respected, trusted and live up Finding a balance is a challenge, but a leaderoffer customer support, which is a unique to my commitments. I put the team first, must instill a positive mindset across theoffering. team, motivate the individuals, and coach them. I am very results-driven and believe❚❚How do you ensure your team that if you don’t deliver results you can’t be understands the link between the successful. It’s all about performance, trust, corporate strategy and the team goals? respect, setting targets and ensuring that the right people are in the right jobs. I amEveryone in my team is already aware of confident that I have a strong team in placethe goals and how they link to the strategy. and this will help ensure that I can deliver inWe have an annual conference, regular fol- all 3 roles.low-up calls, track performance in terms ofthe tasks, and align with the various busi- ❚❚Change is a constant in our lives and innesses. Clear communications, clear targets our business. How do you lead change?and regular follow-up are key. My teamrealizes that the targets are fair and people A lot of people are reluctant when it comesare rewarded when results are achieved. To to change, but that is because they focusbe successful everyone must be aware of on the past, do not understand the rea-what we are going to do, but also what we sons for the change, and perceive it asare not going to do –and we need to stick something to be feared. It is important toto it. emphasize why the change is happening and convince people of the reasons why. We❚❚Do you have any personal goals that you don’t change things just to change things. would like to achieve? There’s always an important factor that has led to the change and we need to focus onWe have already made good progress in the positives. After all, change leads to newcreating a One Henkel Benelux team, but to opportunities.me it is really important to ensure that theproduction sites feel part of the Benelux Thank you Geert for sharing your insights onteam. I want to ensure that the operations Adhesive Electronics and leadership with us! nina hakamies Henkel Life  5

Summer 2014 STRATEGY Strategy in action The global strategy was put in place to drive our continued success and enable us to not only reach our ambitious financial targets for 2016, but also meet our long-term goal of becoming a global leader in brands and technology. The strategy, which is based on four pillars – Out- To highlight the relevance of the strategy and perform, Simplify, Globalize, Inspire – has been demonstrate how it impacts our business, we are communicated extensively both within and out- pleased to introduce proof points of the strategy in side of Henkel and has become a vital cornerstone action. of our successful initiatives.◆ OutperformCooperation & technology: a winning formulaThe successful collaboration between the Adhesive Technologies Electronics (AE) team at Henkel in Westerloand one of our customers in Luxembourg, a leading manufacturer of seat heaters, led to the development of aprimary ink technology for heating, which was combined with conductive ink already produced by Scheemda.The use of ink replaces the copper wire system tradi- service life; and because no external temperaturetionally used in car seats heating system and offers control is necessary, they also consume less energy.our customer better performance at a lower cost. The In addition, printing as an additive technologyinks are applied in thin layers, making them both produces considerably less waste than, say, etch-very light and space-efficient. The material is for- ing. The heating application is highly customizablemulated to ensure that it heats up very quickly to a ensuring that it can be applied to different car seats,certain temperature and is then held constant at that which enables our customer to meet the needs of alltemperature. Thanks to PTC functionality (Positive of their clients.Temperature Coefficient), the printing inks regulatethe temperature themselves up to a certain threshold. The first step is to optimize the technology for theThis autocontrol function significantly reduces the automotive industry. In the future, the applicationdanger of overheating, thus increasing the intrinsic can be used in consumer electronics such as mir-safety of the system. And the material also offers clear rors and floor heating. By successfully leveragingadvantages in the sustainability stakes: as ecologi- the existing relationship with the customer, thecally stable compounds, the printing inks give long Adhesive Electronics business is poised to outper- form our competition and gain market share.Innovation spurs leadership in car wrappingHenkel has a long-standing history of producing solvent-based acrylic adhesives, which are applied by majorcompanies in Europe and in the US to PVC films for outdoor applications. Now our innovative products are alsobeing used in car wrapping. This highly customizable new technology is growing in popularity and involvessticking advertising graphics films to buses and decorative films to cars, including taxis.Henkel’s adhesives are known for their versatility, strength, and Thanks to its solvent-based acrylic grades made in Drogenbos,resistance to all forms of weather and chemical aggression. The Adhesive Technologies Packaging and Consumer Goods (AI) canrecently launched Pressure Sensitive Adhesive (PSA) Loctite outperform the competition and be market leader in the graph-Duro-Tak 3214 is initially removable and permits repositioning ics market.before achieving its final, permanent bond strength. Its ease of use facilitates the large-area application of adhesive tapes and graphics films to all surfaces without loss of material. Loc- tite Duro-Tak 3214 can be applied with conventional application equipment and enables the production of high-grade laminates with even better performance.6  Henkel Life

STRATEGY Summer 2014◆ GlobalizeWesterlo goes global with touchscreen successFor the past few years the touchscreen market has been one of the fastest growing segments in consumer elec-tronics driven by increased consumer spending on mobile devices. Due to the demand for lighter, cheaper andflexible devices, the market is currently demanding major material changes thus opening the doors for newinnovative suppliers. To take advantage of the opportunities in this rapidly changing and ever-growing arena,Henkel entered the market in 2013. A focused and global team was created to ensure the bestknowledge and expertise was utilized. The experienced ink devel-opment team based in Westerlo worked together with the Hen-kel team in China on a new silver-based nano ink for metal meshtouchscreen sensors. At the end of 2013 the collaboration bore itsfirst fruits with Henkel's first win in this new emerging market. The success of the project has led to the transfer of the devel-opment from Westerlo to China, the world’s primary touch panelmarket; the perfect illustration of how we globalize our businessand achieve growth.Leveraging global experience: The Excise LicenseEnabling international mobility is part of Henkel'sstrategy and often results in positive effects forbusiness results.Following his transfer to the site in Drogenbos, Alexis Metz, now Small drums, big reward! From the left: G. Hellinckx, P. vanden BrouckeEuropean AI Operations Controller, noted, that some products and A. Metz.were significantly more expensive than others of the same type.His Düsseldorf experience for our global Beauty Care supply chain Working together, leveraging the extensive and varied knowl-as well as his current network helped him quickly identify that a edge and international experience of Henkel employees, provedparticular raw material was more expensive than usual for a dena- to be a real benefit for Henkel and the team.turized alcohol. By discussing with his colleagues and later forming an internalproject with plant manager Geert Hellinckx and raw material plan-ner Patrick vanden Broucke the concept of excise taxes was dis-covered. As a consequence of the acquisition of an Allnex (formerCytec) production site, a separate permit was needed for Henkelfor the use of ethanol. Without the license, the Dutch supplierof the product was obliged to charge Henkel a high excise tax. Byworking together with the Finance team and an external special-ist, Henkel received a half a million euro tax refund in April 2014. Henkel Life  7

Summer 2014 STRATEGY Strategy in action◆ SimplifyCustomer Segmentation benefits businessDriven by the focus on simplifying our processes to enable us to reach our targets,Financial Operations (FO) has developed a regional approach for our collection activities namedCustomer Segmentation whereby customers are segmented according to customer type.The analysis of our customer portfolio, based on annual turno- • Customers are encouraged to pay automatically via Direct Debitver, showed that a large amount of customers represented a lim-ited share of the overall turnover. Taking this into account, we • O ne standardized credit limit and one yearly credit reviewdecided to focus on our most important and profitable customerswhile at the same time aligning and simplifying collection pro- Improved results and an overall decrease in overdues in the lastcesses throughout Western Europe for smaller accounts. period already show the benefits of this new approach. Finalizing the roll-out of this strategy will help us to further outperform and As an example, B-prof segmented customers (with an annual reach our targets.turnover up to 5,000 euros) represented 16% of the 2013 turno-ver for Western Europe while in number of accounts, they rep- Segmented customers collection strategyresented 43%. For the Benelux, 54% of individual accountsaccounted for a turnover of 3.2 million euros or 12% of Net Exter- ❚❚Collection strategy timeline for segmented customers:nal Sales (NES) over the same period.❚❚Benelux Customer Segmentation split: 15 days 30 days 40 days 45 days overdue overdue overdue overdue BA # % 2013 NES 2013 NES % 1st dunning 2nd dunning Handover External customers customers (TEUR) letter letter to BU collectionB-prof 3.155 11,5% agencyB-ret 2.596 53,8% 0,0% + Information to Final 1 0,8% 0 0,0% Sales rep. / information to L 2 1,9% 0 1,3% CSM / Local Sales rep. / AC 36,6% 724 1,1% credit manager CSM / Local AI 469 21,1% 2.503 1,1% credit managerTotal 651 40,0% 6.394 3.710By applying this segmentation strategy, FO wishes to focus on ❚❚Customer Segmentation overview:larger customers with a higher added value, while in the mean-time standardizing the handling of customers with limited Customer Segmentation from Finance point of viewturnover. (Impact on E2E Process and Saving/Improvement Potential)For this second category, the segmentation approach allows us to Customer Segmentation from Finance point of viewsimplify both collection and credit management processes whilemitigating our risk of bad debts. The simplification is evident in (Impact on E2E Process and Saving/ImprovemIIe.nPtrPoocteesnstiiaml)provementsthe following actions taken by FO-OTC: II.•PrFocoescsuimsproovnemCenrtesdit Management and• No more phone calls to segmented customers Customer •  FBocuussoinn CersedsitPMaanratgnemeernitnagnd Portfolio • BPursionecses PsasrtnEe2rinEg improvements with• New orders are blocked as soon as invoices expire and remain unpaid Big size •  pPCTtreuooorsfctoepeocsmltsiCeonErr2usdgE/es/ErimtDpinopIv/ersmooerivclfefee-eminrcevsnot/ticsoiwEnrgiDdt/hteoIT/oorlspiniegn/lfv-oinicveoicing/ (A)• Customers are sent to an external collection agency when invoices remain unpaid after the second dunning letter and the •  • IImmpropvreomevnetsminedendutsctioinns/ddisepdutuesc/ tions/disputes/ sales manager has been informed pprormoomtioonstwioithnsselewcteidthcusstoemleercs ted customers Medium size (B) ca. 30 – 50 % I. IP.roPcerssosicmeplsifiscastioinmplification Small size • • NiNnol/oolcim/allitioemrdgacinrteizedaidttiomncasnraegdemitenmt acatinviatiegs ement (C) Satocpt/rievdiutciteiosn oifncalsoh calaloclaotiorng/anizations •  • cBScoraoltlteoilcsltlpeaiov/cnar/t(deiSeoKddPnuu/cA/tcCido/tnAieGoad/cnAtuiIv)ioctitefisocinanSsSahCcatilvloitciaetsioinn/SSC Bratislava (SKP/AC/AG/AI)8  Henkel Life

STURSATATEINGAYBILITY Summer 2014◆ InspireExpert Talk explores cyber crimeThe growing threat of cyber crime is affecting both organizations and individuals. Learning how toprevent cyber criminality in both the professional and private environment is becoming increasinglyimportant. As a result, the first Expert Talk, held in Brussels on Friday May 9, focused on this highlyrelevant topic.©Shutterstock Participants were advised how they could con- group of people to come tribute to their personal security and protect together and not only Henkel's information and reputation. Simple, strengthen their knowl- yet highly effective, steps include using Bit- edge, but discuss funda- Locker to encrypt USB drives, creating com- mental issues related to the topic. plex passwords, conducting regular backups, and involving Legal if data is transferred to a More detailed information can be read in the supplier. article about the “Importance of cyber secu- rity to protect our business” on page 14. The Expert Talks offer a unique opportunity to inspire our employees by enabling a diverseInno Insights highlight innovation Inn0InsightsHenkel’s power of innovation is what makes us outperform thecompetition, which is why fostering innovation and creativity isembedded in our corporate culture.Innovation across the three business units creates added value To highlight all the innovation within the Benelux, Henkelfor our customers and lays the foundation for our continued launched a new quarterly series entitled Inno Insights. It featuresgrowth. units that an overview of the product innovations from our three business unitsthat we proudly bring to the Benelux market on a The value of innovation is not only apparent in our finan- quarterly basis.cials: it also enables us to attract new talent and retain the talentresponsible for the current innovations. We encourage you to read Inno Insights to stay informed, get inspired and take pride in your contribution to these Success inspires success. innovations. Discover the Benelux innovative power! Please visit the Inno Insights intranet page on our Benelux intranet for the Q2 innovations. Henkel Life  9

Summer 2014 ORGANIZATIONAL UNITSFresh approachhelps us bettertarget shoppersKnowing what shoppers want and do in-store ©©SShhuutttteerrssttoocckkenables Henkel to develop targeted and concreteactions to optimize the assortment, shelves andpromotions, bringing partnerships with tradecustomers to the next level.The Shoppers’ Perspective study was developed globally and study has a positive impact on the buying behavior of shoppersrolled out locally to examine purchase decisions in the FMCG and, as a result, our product sales.landscape. This new study differs from previous studies byfocusing on the shopper, the person who buys products, not the Laundry & Home Careconsumer, the person using them; and their attitudes and behav-iors, what they want and what they do/buy in-store, instead of For Laundry & Home Care in the Netherlands, promotion strate-demographics. gies have been optimized at several customers, matching trade customers’ shopper profiles with the promotion buying behavior The study highlighted some significant similarities and differ- of shoppers. The trade customer Plus was even convinced to listences in the Benelux shopper profiles. the brand Silan as the brand is bought by the shoppers that Plus wants to attract.In the Netherlands, two groups make up more than 75% ofshoppers: In Belgium, we are working with Colruyt to increase shopper loyalty to the detergent category. We also advised Carrefour Mar- – M ainstreamers, who always buy the products they know, ket on how to optimize their assortment to service their current and shoppers but also attract new ones in order to grow their deter- gent business. – E nthusiastic Value Seekers, who enjoy shopping, but at a reasonable price.In Belgium, on top of the Enthusiastic Value Seekers, two other Beauty Careclusters are significant: For Beauty Care, we currently are working on gaining a better – P romo Value Seekers, shoppers who constantly search for understanding of the Beauty Care shopper in Belgium to better special offers/ discounts, and support our retail partners to focus on the needs of their shop- pers. The very diverse retail landscape includes drugstores such – Q uality Aware Economizers, who search for the best price- as Kruidvat and small and large supermarkets such as Carrefour quality offers. and Colruyt, which have their specific challenges and opportu- nities. The shopper insights will enable us to grasp the specificBy examining the results of shopper marketing, a continuously opportunities in these channels.evolving study, we are able to adapt our strategies and worktogether with our customers to influence the shoppers at thepoint of sale. Implementing changes based on the findings of the Understanding shopper attitudes, motivations and behaviors is crucial for all our businesses. We strive to continuously strengthen our role as experts in shopper behavior to better serve our customers. This enables us to reach our shop- pers effectively and improve the performance of our categories, brands and our customers' stores. Helene Darul, Jean-Philippe Lietaer, Kim van der Aar & Wouter Van Dyck10  Henkel Life

ORGANIZATIONAL UNITS Summer 2014Global Diversity & Inclusion campaign:Inclusion starts with IOn June 2nd, Henkel launched its first global Diversity and Inclusion campaignto foster the awareness and understanding of Diversity and Inclusion among all itsemployees. Henkel employs diverse people from more than 120 countries and it is ourDiversity that unites us. Regardless of differences in age, gender, cultural or religious background,experiences and orientation, we all are all brought together at Henkel.This year the campaign focuses on ‘Inclusion’, Did you know?but what is inclusion? … generation Y, generation X and Baby Boomers are workingAs a company, we aspire to create a company culture where the together at Henkel in the Benelux. Three generations underappreciation of differences (inclusion) is inherent in the way we one roof, and it won’t take that long until we can welcome thetreat each other. Inclusion gives our global company a competi- fourth: Millennials. These generations all have their own char-tive advantage as it helps us to better understand our colleagues, acteristics and knowledge, but are key to creating big ideas andcustomers and the markets we operate in. That is why we foster moving the business forward. It is through appreciation thatmixed teams, inclusive behavior, and aim to treat all our employ- we can create a true value for Henkel.ees with dignity, respect and appreciation. By tapping into eachothers’ expertise, knowledge and mindsets we can broaden our … w e have 6 impats in the Benelux and 17 expats from the Beneluxhorizons and move forward. assigned to all the regions. We also have more and more local employees with regional or international functions working in A few years ago, we started a mentorship program in the multicultural teams. Benelux in the Laundry & Home Care division, followed by Beauty Care and AG. This year, the program was launched … more than 12 nationalities are represented in Henkel Benelux within the AC Division and it is well appreciated. Here are the first reactions from a mentor and mentee: … in 2014, we intend to gain the diversity label delivered by The Brussels Capital Diversity Charter (European program).Mentee - Diana Sebe Mentor - Stijn Thielen How can I behave more inclusively?I think the mentorship Coaching andprogram is a very nice Inclusion is all about questioning our assumptions and aboutexperience. It is always developing talents fighting prejudices. It’s about seeing differences as an asset forinteresting to get advice gives a higher job our teams as they bring creativity to our daily work. By appreciatingfrom the colleagues differences, we give ourselves the chance to live a fuller and brighterwho you look up to. satisfaction. life and we are able broaden our horizons. Inclusion is not about the others, it’s all about you. You are responsible and can foster inclusive behavior on a daily basis: • B e open-minded about Henkel’s diversity: Be receptive to new ideas and foster open communication with your colleagues. • T ake a look around you: Some of the differences are visible at first sight; some take longer to be revealed. • T alk to your colleagues and find out how your individual differences can complement each other efficiently: The resulting success will speak for itself! • Take action and encourage colleagues to act inclusively! benedicte grossmann You can delve into the topic of Diversity and Inclusion via the e-learning platform (Henkel Global eCademy, under ‘Major Initiatives & Corporate Topics’). In the coming weeks, the Henkel Diversity website (www.henkeldiversity.com) will be renewed and there you will find the testimonies of Benelux colleagues who have been selected as role models. Let’s start fostering a more inclusive behavior and create a better working atmosphere where all contributions are appreciated. Visit www.henkeldiversity.com for more information about Diversity@Henkel. Henkel Life  11

Performance Summer 2014 Social Deliver Safety SUSTAINABILITY Progress more value and Energy Health and at a reduced Water Climate footprint and Wastewater Materials EducateandWaste for a more sustainable life©Shutterstock Globally Henkel kicked-off the “School Project” as part of the Sustainability Ambassadors Program. The objective is to promote the topic of sustain- ability amongst school children. With the “School Project” all Henkel Sustainability Ambassadors are encour- aged to visit elementary schools in order to raise the awareness of the children, and explain in an interactive way what sustain- ability actually means in their daily lives. The Ambassadors' reward is witnessing the children's excitement and motivation to contribute to a more sustainable planet. The Henkel Ambassadors Program engages Henkel employees to inform oth- ers -including colleagues, suppliers, cus- tomers, consumers and other stakehold- ers- about the importance of sustainability. Our engagement from the highest level of the company demonstrates our seri- ous commitment to leadership in sus- tainability. Our CEO, Kasper Rorsted, and several Global Board Members have all visited elementary schools. Also, in the Benelux our President and General Man- ager Beauty Care, Eric Dumez, and other colleagues took part in the “School Pro- ject” and taught children how they could use resources more efficiently. Become a Sustainability Ambassador in just a few clicks Seven different e-learning modules, including business unit modules, are now available on the HenkelONEPortal under 'Major Initiatives & Corporate Topics' (http://ecademy). Every employee that successfully completes four general units, as well as one of three business modules, will become a Sustainability Ambassador. 12  Henkel Life

PerformanceSUSTAINABILITY Social Deliver Safety Summer 2014 Progress more value and Energy Health and at a reduced Water Climate footprint and Wastewater Materials and Waste Since launching the program in 2012, Our Henkel Benelux President, Eric Dumez, completed theHenkel has trained more than 2,000 Henkel Sustainability Ambassador program and took partAmbassadors, including all Management in the “School Project”. On April 5, he visited the De Cirkel,Board members, in 55 countries. In the elementary school in Grimbergen and taught the childrenBenelux, we already have more than 100 how to lead a more sustainable life. Read all about ourqualified Sustainability Ambassadors and President’s experience and discover his commitment tothe number continues to rise. this international project. “Sustainability is not only a Henkel value, but it also relates to a truly honest concern I have for future genera- tions. This concern, and my own children, provided a great motivation for me to participate in this worthwhile project by sharing my knowledge with, and learning from, the students in my youngest son’s class. During the session at his school, I felt a strong interest and a solid commitment from all the pupils to help improve their habits and pro- mote sustainable behavior in their homes and their com- munities. Together with the children I held a brainstorm- ing session focusing on what we can do in daily life, the outcome of which were a lot of valid and realistic meas- ures to guide our behavior in a more sustainable direc- tion. The children were very interactive and full of energy and enthusiastically sought to find solutions to how they could act more sustainably. It is this kind of energy and positive mindset which will help contribute to a world in 2050 where everybody can live well.”Let’s not forget that Sustainability Ambas- Cindy Lenaerts, Supply Chain Manager Benelux, also committed herselfsador is not just a catchword, it is a status to the “School project”. Read her school story and let it inspire youwithin the company. It is a powerful net- to follow the example set by her and thousands of other colleagueswork of individuals with the same inspi- worldwide.ration and motivation to drive sustain-ability on every level. “As the mother of a nine-year-old boy, I was motivated to become a Sustainability Ambassador so I could join the ‘School Project’ and Henkel will continue rolling out the speak to his class. At first his school was a little reluctant andAmbassador Program globally through afraid that I would use the project as a means to promote2014. “As trained ambassadors we can Henkel products, however once I’d presented the programexplain to students at elementary schools and content with all the class materials at our disposalthe importance of sustainability and how to make it an interactive and animated lesson, theythey can achieve more with less,\" said Paul determined it was a perfect fit with their overallVetter, General Manager Laundry & Home approach to sustainability.Care and Chairman of the Henkel BeneluxSustainability Council. The “School Pro- What initially was planned to be a one classject” is for qualified Sustainability Ambas- session with 20 children became a two class ses-sadors and you can still become one by sion with 40 children. I used the slide ‘Leading afollowing the eLearning course available classroom in 8 steps’ to prepare the lesson with theon the eCademy. teachers. First we had a short brainstorming session about the 3 R’s (reduce, recycle, reuse), then we divided Let’s make this initiative a great success the children into smaller groups and invited them to discusstogether! and suggest actions that could be taken in the home to help improve the environment. For more information contact Jannick Clinkemalie and Each child was invited to the board to sign the official Class Anita Vanden Bossche. Sustainability Charter whereby they committed themselves to implementing the proposed actions in their daily lives and stimu- lating their parents and siblings to adopt the same behavior.” Henkel Life  13

Summer 2014 ORGANIZATIONAL UNITSWorld Cup do’s and don’tsBig events such as the upcoming football World Cup but also the Olympic Games, Eurovision SongContest or any other event that receives extensive media attention, provide the ideal opportunity forHenkel to promote our products. We must however take into consideration that behind all of theseevents there are organizations that closely monitor their intellectual property rights to ensure that theyhave not been infringed by third parties.Take as an example FIFA (Fédération Internationale de Football form and do not use FIFA words and terms such as FIFA (Foot-Association), organizer of the 2014 World Cup in Brazil. The ball) World Cup, World Cup 2014, Brazil 2014, or any combina-FIFA logo, the emblems and mascots of FIFA events, including tion of these. You may also not combine the terms with yourthe emblem and mascot of the World Cup in Brazil, are trade- own brand name or logo, e.g. ”Loctite World Cup” - this increasesmarks and copyright material of FIFA. If we want to display or the risk of Loctite appearing as a sponsor. The same applies touse the FIFA marks in any manner, we must obtain FIFA's prior domain names: do not use FIFA marks in the domain name, e.g.written permission. If not, FIFA can sue Henkel for infringing www.worldcuplaundry.com. However, the use of terms such asits rights and therefore demand the withdrawal of promotional “World Football”, “Brazil”, “Football Championship” is allowed,materials (artworks, packaging, TVC, …) and/or ask for financial but you must avoid combinations with words or graphics thatcompensation. associate with the 2014 FIFA World Cup. When organizing a promotional campaign related to these This is a delicate and difficult legal issue that needs to be takentypes of events, you should contact your key account legal coun- into account. The legal department is there to help you organizesel. Together you can go through the “Do’s and Don’ts” regarding a successful and legally safe promotional campaign!marketing actions in relation to large events, such as describedhere above. For instance, do not use any official FIFA logo in any Guillaume De Wilde/Karolien Pieters/Jan SturtewagenImportance of cyber securityto protect our businessWe live in a fast-paced, global economy that relies more and more on data and information carriedthrough cyberspace. For a multinational company like Henkel it is of utmost importance that wemaintain the physical property of our confidential data as well as our computer equipment (laptop,blackberry, …), and protect against intruders, hackers, potential theft and other acts that could causemajor issues within our company. Consequently, cyber security is as important a need, if not greater,than traditional security precautions.As cyber crime offenses are constantly popping up in our daily sufficiently. By doing that, we also ensure we comply with ourlives, it is necessary to sharpen our awareness of these dangers. In Code of Conduct.order to help build up a natural security reflex for your everydaysecurity needs, IT and Compliance took the initiative to organize To strengthen this message, Henkel invited two expert guestan Expert Talk focused on the topic ‘Cyber Security Awareness’ on speakers: Luc Beirens, at the time Head of the Belgian Fed-Friday, May 9. In fact, IT and Compliance go hand-in-hand when eral Computer Crime Unit, and Vincent Defrenne, from the ITit comes to cyber security. All of us must use the Henkel infor- security company NVISO. With very concrete examples themation systems in a compliant manner and use the provided motivated speakers convinced the audience that we are undersecurity tools, e.g. password handling, to protect the Henkel data a constant threat from cyber criminals in both the professional and private environment. Fortunately, there are tips and tricks that explain what we can do to help pre- vent cyber crime; we, as employees, have a responsibility to that regard. You can find more information under ‘IT Security & Compliance team’ (enter ‘it-security’ in your browser). If you have any questions, please don’t hesitate to contact your IT department. Jan Sturtewagen/Magda Sempels14  Henkel Life

PERSONNEL LIFE Summer 2014 @ Henkel In the spotlightSeptember 15 Brussels August 26 Financial Results Q2September 30 Nieuwegein November 25 Financial Results Q3October 9 BrusselsOctober 9 NieuwegeinSeptember 26 Henkel Day September 2 Nieuwegein Abdullah Yildiz Brussels (BE) Nieuwegein (NL) Abdullah joined Henkel in March 2008 in Sales. He was a Key Account Manager in the LaundryJoined the company Joined the company & Home Care business and responsible for customers such as Jumbo and A.S. Watson.07-04-2014 Bjorn van Cauwenbergh 01-04-2014 Susanne Faasen Recently, he joined the Marketing team and he01-05-2014 Bert Clymans is now responsible for the brand Witte Reus. He Left the company is committed to realizing our financial targetsLeft the company by inspiring his sales colleagues and outper- 30-04-2014 Marcel Swier forming the competition.30-04-2014 Els De Smet 31-05-2014 Anna Postma08-05-2014 Caroline Houben 31-05-2014 Marleen v/d/ Maarel-Timmermans ❚❚I was born on: July 18, 1983 in Kampen (not to be confused with Compton).Transfer Transfer ❚❚I live together with: my wife31-12-2013 Sophie Bertran 31-03-2014 Ronald Elemans ❚❚The last book that I read was: (Purchasing → Henkel USA) (Henkel Nieuwegein → Belgium) ‘The Essential Rumi’ by Coleman Barks and31-03-2014 Joris Verheijen 01-05-2014 Ines Hambsch (Henkel Dusseldorf) John Moyne (Fin. → Henkel France) ❚❚My favorite music: I like many kinds of Scheemda (NL) music01-04-2014 Ronald Elemans ❚❚My favourite food: Turkish cuisine (of (Henkel NL → Brussels) Retired course) ❚❚My main hobbies are: travelling, food,01-04-2014 Sébastien Chauve 13-05-2014 Simon Wiegman history, art, spending time with family and (Henkel France → Henkel Benelux) friends Zutphen (NL) ❚❚I like to go on holiday to: everywhere Drogenbos (BE) around the globe where I can discover No changes different culturesJoined the company ❚❚If I couldn’t afford to go on a trip, For internal job openings, then I would: stay in Amsterdam to explore15-04-2014 Ringo Viane please check our website regularly: the many beautiful things this diverse city01-05-2014 Jonathan Algoet www.henkel.com/career has to offer05-05-2014 Pascaline Lionnet ❚❚If I had to choose a different job, it would be: Chef de Cuisine or Professor of History Westerlo (BE) ❚❚I like people who: are what they are and don’t pretend/try to be anything elseNo changes ❚❚My motto: ‘keep smiling’ ❚❚I will never understand: many things ❚❚I never spend money on: I never say never, I’m always in for good deals ❚❚I’d like to have a cup of coffee with: Hamdi Ulukaya (Founder of Chobani) ❚❚If I were a woman, I would: be very sexy! ❚❚I’m proud of: who I am ❚❚My wildest dream: to visit all the countries in the world Henkel Life  15

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