EANS-News: Henkel recovery continues through third quarter

Consumer businesses continue their successful course – Adhesives
business further improved versus previous quarters

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quarterly report/9-month report/Henkel

Subtitle: Consumer businesses continue their successful course –
Adhesives business further improved versus previous quarters

Düsseldorf (euro adhoc) - Düsseldorf, November 11, 2009 Consumer
businesses continue their successful course - Adhesives business
further improved versus previous quarters

Henkel recovery continues through third quarter

• Sales down 7.3 percent to 3,485 million euros
• Decline in organic sales reduced to 2.5 percent
• Operating profit up 191 million euros to 290 million euros
• Adjusted operating profit down 1.5 percent to 385 million euros

"In the third quarter, we were again able to continue our positive
performance of recent quarters", says Kasper Rorsted, Chairman of
the Henkel Management Board. "We achieved excellent results at
Laundry & Home Care, and our Cosmetics/Toiletries business
sector was also able to once again exceed the very good
performance of the previous quarters. There was also a
further improvement in the results of the Adhesive Technologies
business sector in the course of the year, albeit on a lower level
than in the previous year." Rorsted continued: "The encouraging
results registered in this last quarter reflect both the
stabilization in our markets and our programs on structural and
cost alignment."

In the third quarter of 2009, Henkel generated sales of 3,485 million
euros. In a still difficult market environment, this represents a
decrease of 7.3 percent compared to the figure for the prior-year
quarter. In organic terms, i.e. after adjusting for foreign
exchange and acquisitions/divestments, sales showed another
improvement compared to the first two quarters of this year, coming
in just 2.5 percent below the level of the third quarter of
2008. However, performance of the company´s three business sectors
continued to show a very mixed picture. Laundry & Home Care again
performed well, posting an increase in organic sales of 2.4 percent.
Cosmetics/Toiletries saw organic sales rise by 3.7 percent,
again outstripping the already very good figures of recent
quarters. Due to the volume decline encountered in major customer
industries, Adhesive Technologies registered a decrease in organic
sales of 7.6 percent. Compared to the second quarter, however, the
drop in organic sales has halved.

Due primarily to the burden of restructuring charges on the
results of the prior-year quarter, operating profit (EBIT)
increased by 51.8 percent, from 191 million euros to 290 million
euros. After adjusting for one-time gains and charges and
restructuring charges totaling 95 million euros, adjusted operating
profit ("adjusted EBIT") decreased slightly by 1.5 percent, from
391 million euros to 385 million euros.

Return on sales (EBIT margin) was 8.3 percent, while adjusted return
on sales ("adjusted EBIT margin") increased from 10.4 percent to
11.0 percent.

The investment result fell from 24 million euros to 0 million euros
due to the sale of the company´s stake in Ecolab in November 2008.
Net interest expense improved by 32 million euros, from -72
million euros to -40 million euros, largely attributable to
lower interest rates compared to the previous year.
Consequently, the financial result improved from -48 million
euros to -40 million euros. The tax rate amounted to 28.0 percent.

Due to the increased EBIT, net earnings for the quarter rose by
68.2 percent, from 107 million euros to 180 million euros. After
deducting minority interests of 8 million euros, quarterly net
earnings totaled 172 million euros compared to 101 million euros
in the third quarter of 2008. Adjusted quarterly net earnings
after minority interests amounted to 240 million euros versus
251 million euros in the prior-year quarter. Earnings per preferred
share increased from 0.23 euros to 0.39 euros. The adjusted figure
was 0.55 euros compared to 0.59 euros in the prior-year quarter.

Thanks to a strong cash flow performance, net debt was further
reduced compared to the end of the second quarter of 2009 by some
700 million euros to 3.2 billion euros. Good progress was also
made with regard to working capital management: compared to the
prior-year period, the ratio of net working capital to sales
improved from 12.8 percent to 10.3 percent.

Business Sector Performance

Laundry & Home Care increased sales in organic terms by 2.4
percent, with foreign exchange having a negative impact of 5.3
percent. In nominal terms, sales decreased by 2.9 percent to 1,035
million euros. The generally gratifying increase in organic sales
was attributable to the growth regions of Eastern Europe,
Africa/Middle East and Latin America which, in some cases,
posted double-digit percentage improvements. In Western Europe and
North America, on the other hand, the difficult market environment
impeded sales performance to the extent that neither region was
able to attain the sales level of the prior-

year quarter. Nevertheless, operating profit rose significantly, by 17.0
percent to 137 million euros. After adjusting for foreign exchange, the rise
was an even more encouraging 23.7 percent. Return on sales improved by 2.2
percentage points to 13.2 percent. The Laundry segment made a

disproportionately high contribution to the rise in sales, with
the biggest boost to growth again coming from Eastern Europe and
Africa/Middle East. The good sales performance posted was also
due to a number of successful innovations such as Persil
ActicPower, the most advanced laundry detergent available under
the premium Persil brand. Persil ActicPower requires just half the
previous quantity per wash and develops its laundry power at
just 15 degrees Celsius. In the USA, Henkel´s innovation Purex
3-in-1 also continued to perform very well. The Home Care segment
likewise turned in a positive sales performance, with the growth
regions of Eastern Europe and Africa/Middle East again leading
the way. Here, Henkel´s dishwashing products continued to
generate particular success.

With organic sales growth of 3.7 percent, Cosmetics/Toiletries
maintained its consistently strong development in the third
quarter. Once again it was successful in outpacing the growth of
its relevant markets as they continued to bear the impact of the
economic downturn. The contributions made by the growth regions of
Eastern Europe, Asia-Pacific and Latin America were particularly
noticeable, with Western Europe also posting an organic sales
increase. This encouraging sales performance was also reflected in
an increase in operating profit of 3.3 percent to 99 million
euros. After adjusting for foreign exchange, growth was even
6.8 percent, with marketing spend also having

increased. Return on sales rose by 0.5 percentage points to 13.0 percent. The
Hair Cosmetics segment produced another good set of results. The Hair Care
business developed very well as a result of the further roll-out of the new
Syoss brand and the introduction of the new variants Schwarzkopf Gliss Kur Hair
Active and Schauma Hair Activator. Product launches including those of
Essential Color and Poly Palette 10 Minutes Coloration greatly boosted the

results posted by the Colorants category. The Styling segment
continued to garner success, this time with innovations in the Got2b
series and the new Drei Wetter Taft line 10 Carat Gloss. In the
Body Care segment, the Dial brand consolidated its ongoing
success in the USA, with the body wash product Dial Anti-Oxidant
having developed into one of the most successful launches in this
market segment. In Europe too, the shower gels/body wash
products marketed under the Fa brand continued to perform very well,
achieving one of the fastest growth rates in this category. In the
Skin Care business, the focus was on the launch of new Diadermine
3D Wrinkle Expert, specially formulated for deep wrinkles. In
the Oral Care segment, the launch of the new Theramed variant
Arctic White created further positive momentum. Despite
increasingly adverse market conditions, Henkel´s Hair Salon
business was able to successfully consolidate its position and
win important new customers. The focus in this segment was on
the relaunch of Bonacure Time Restore and the introduction of new
products in the form of the sublines Igora Color 10 and Seah Cashmere
Cream Shampoo.

The third quarter saw the Adhesive Technologies business sector
make further progress along the road to recovery embarked upon in
the second quarter, with the quality of its earnings significantly
improving. Organic sales were 7.6 percent below the figure for
the prior-year quarter. After adjusting for foreign exchange,
the decrease was 9.9 percent. In nominal terms, sales
declined by 12.4 percent to 1,630 million euros. However, in all
regions the rates of decline have been reduced compared to those of
recent quarters. The regions of Latin America and Africa/Middle
East have again begun to show moderate growth in sales
adjusted for foreign exchange. Operating profit decreased by
47.0 percent. Included in this figure are one-time charges of 24
million euros of valuation losses on assets held for sale, and
restructuring charges amounting to 37 million euros. Consequently,
adjusted operating profit ("adjusted EBIT") only decreased by 20.6
percent to 150 million euros. Compared to the previous quarter it
actually increased by 32.0 percent. Reflected in this
improvement are the accelerated process of synergy realization
arising from the integration of the National Starch businesses,
and the benefits accruing from the "Global Excellence" program.
Return on sales decreased by 3.6 percentage points to 5.5 percent,
although adjusted it only declined by 1.0 percentage points to
9.2 percent. The performance of the Adhesives for Craftsmen
and Consumers and Building Adhesives segments improved compared
to the second quarter of 2009. In Asia-Pacific, Eastern Europe and
Africa/Middle East, certain significant increases were achieved in
the Building Adhesives segment compared to the prior-year quarter.
Sluggish consumer demand in the developed countries impacted on
business performance of the Packaging, Consumer Goods and
Construction Adhesives segment. Here, however, substantial
increases in sales compared to the prior-year quarter were
registered in the growth regions of Eastern Europe, Latin America
and Africa/Middle East. There was also a slight recovery in various
industries served by the Specialty Adhesives and Surface Treatment
segment, although sales remained significantly below prior- year
levels, particularly with respect to the automotive and metal
industries. The Electronics segment has experienced a revival due to
the recovery of the semiconductors industry. This business
therefore succeeded in significantly increasing sales versus the
second quarter, thus substantially reducing the rate of decline
compared to the prior-year quarter.

Regional Performance

In the Europe/Africa/Middle East region, sales further improved
compared to the second quarter of 2009, although in organic terms
they were slightly - 0.9 percent - below the level of the third
quarter of 2008. While Laundry & Home Care and
Cosmetics/Toiletries were able to achieve a gratifying increase
in their respective sales figures, Adhesive Technologies posted a
single-digit decrease. In Africa/Middle East, Henkel achieved organic
sales growth in the single-digit percentage range, while
performance in Western Europe including Germany declined. The
growth rates in Eastern Europe further recovered in comparison
to the first two quarters of this year. Overall, the
Europe/Africa/Middle East region´s sales decreased from 2,319 million
euros to 2,154 million euros, giving it a share of 62 percent of
total sales. Organic sales in the North America region declined by
7.8 percent. In a challenging market environment, sales of
Adhesive Technologies decreased considerably; performance of
the consumer businesses Laundry & Home Care and
Cosmetics/Toiletries was also slightly down. Overall, sales in this
region came in at 628 million euros, representing an 18 percent
share of total sales. The Latin America region saw organic sales
increase by 2.7 percent, driven by the consumer businesses and
particularly Cosmetics/Toiletries which posted a double- digit
percentage rate of growth. At 209 million euros, the share of total
sales accounted for by this region remained at 6 percent. In the
Asia-Pacific region, organic sales fell by 3.7 percent compared to
the third quarter of 2008. A gratifying increase in performance
at Cosmetics/Toiletries was offset by the decrease at Laundry &
Home Care arising from the closure of its business operation
in China at the end of 2008. The organic sales development of
the Adhesive Technologies business likewise showed a decline,
although there was an improvement compared to the second quarter of
2009. Overall, sales in this region came in at 438 million euros,
slightly above the level of the prior-year quarter. The share of
total sales accounted for by this region was 12 percent. In the
growth regions of Eastern Europe, Africa/Middle East, Latin America
and Asia (excluding Japan), organic sales increased by 4.1
percent, marking a further improvement compared to the second
quarter of 2009. In nominal terms, sales fell by 5.2 percent to
1,372 million euros, a figure that represents 39.4 percent of total
sales compared to 38.5 percent in the prior-year period.

Sales and Profits Forecast 2009

Despite the recently apparent stabilization of the markets at their
low level of activity, it remains difficult to assess the overall
economic situation and how it is likely to develop going forward.

Nevertheless, Henkel is confident of again outperforming its relevant
markets in terms of organic sales growth (i.e. after adjusting for
foreign exchange and acquisitions/divestments). A number of measures
have already been introduced on the operational side, from which
Henkel expects further positive momentum to develop. These activities
and also relief from easing raw material prices will support the
development of operating profit (EBIT) and earnings per preferred
share (EPS), adjusted in each case for one-time gains and charges and
restructuring charges.

Henkel expects its consumer businesses to continue to perform well in
the fourth quarter as they have in the first nine months of this
year, albeit with a degree of deceleration. Henkel anticipates that
the performance of its Adhesive Technologies business sector will be
an improvement on that of the first nine months.

This information contains forward-looking statements which are
based on the current estimates and assumptions made by the
corporate management of Henkel AG & Co. KGaA. Forward-looking
statements are characterized by the use of words such as expect,
intend, plan, predict, assume, believe, estimate, anticipate, etc.
Such 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 therefore 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 economic environment and the actions of
competitors and others involved in the marketplace. Henkel neither
plans nor undertakes to update any forward-looking statements.

Contact:
Lars Witteck Wulf Klüppelholz
Phone: +49-211-797-2606 Phone: +49-211-797-1875
Fax: +49-211-798-4040 Fax: +49-211-798-4040

You will find the full report for the third quarter of 2009 and also
photo material at http://www.henkel.com/press.

press.henkel.com

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ots Originaltext: Henkel AG & Co. KGaA
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:

Irene Honisch

Assistent Corporate Communications

Tel.: +49 (0)211 797-5668

E-Mail: irene.honisch@henkel.com

Branche: Consumer Goods
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