Once again, Henkel’s family-aware personnel policy has been validated with the award of a “Career and Family Audit” certificate issued by the German charitable foundation Hertie-Stiftung. The review, conducted under the auspices of Federal Minister for Family Affairs Dr. Ursula von der Leyen, is a management instrument introduced to encourage the continuous improvement and promotion of a family-aligned corporate policy. Since its inception, it has developed into a “seal of quality” for an empathetic HR management approach. For many years now, Henkel has been offering its employees various ways and means for reconciling their work, career and family obligations, and the company has already received a number of additional awards for its commitment in this regard.

The Women’s Handball World Championship 2007, which began on December 2nd in France, represents yet another major sporting event featuring the participation of Henkel. Henkel is supporting the Handball World Championship as a premium sponsor. Accordingly, the producer of brand-name consumer goods is expanding its involvement in international handball, focusing on supporting women in professional sports. For the last three years, Henkel has been sponsoring international handball competition, including the highly successful Men’s Handball World Championship in Germany at the beginning of 2007. Henkel will also serve as a sponsor to the upcoming European Handball Championship in Norway in 2008.

With 53,000 employees from 110 nations spread over all the world’s continents, Henkel is one of the most internationally aligned German companies. Given this background, diversity management is an important issue at Henkel. Henkel has now appointed its first global Diversity Manager, reporting directly to Kasper Rorsted, Vice Chairman of the Henkel Management Board and Executive Vice President Human Resources. With this newly created position, Henkel intends to strengthen diversity as a strategic factor for success within today’s internationally competitive environment. “Only through the diversity of our employees can we understand the markets of the more than 125 countries in which we are represented by our products. The better we are able to harness diversity, the more successful we will be as a global player,” commented Kasper Rorsted, underlining the importance of this decision.

FMCG global giants survey

For the first time, the Econ Verlag publishing house and the Handelsblatt business newspaper have presented awards for the best corporate communications work. In the category Sustainability/CSR Report, the Bronze award went to the Henkel Sustainability Report 2006 and the associated website. Henkel was also among the finalists in the categories Strategic Corporate Communications, Annual Report and Image Film.

For more than 15 years now, Henkel has been putting adhesive bonds to the test at the Global Engineering Center in Garching near Munich. Customers from all branches of industry benefit enormously from the know-how of the adhesive experts there.

Sales increase of 3.0 percent to 3,358 million euros / Strong organic sales growth of 6.0 percent / Operating profit (EBIT): +12.0 percent to 359 million euros / Net earnings for the quarter: +12.9 percent to 245 million euros

Phenion, the Henkel bio-research company in Düsseldorf, Germany and the Centre for Dermatology and Venerology at Johann Wolfgang Goethe University in Frankfurt am Main, Germany have been awarded a grant worth some 520,000 euros by the German Federal Ministry of Education and Research (BMBF). The goal of the research project is to seek an alternative to animal experiments with which potentially allergenic substances can be assessed.

Henkel’s industrial division is a major supplier to the international air-conditioning industry. Up to now the main focus of the product portfolio has been on pre-treatment products and cleaners as well as adhesives and sealants for the manufacture of the casings. Now the product range has been extended to include a range of the special lubricants required in large quantities in the manufacture of heat exchangers. Users benefit not only from enhanced performance and lower consumption, but also from improved health and safety aspects.

Ernst Primosch, Corporate Vice President and Head of Corporate Communications at Henkel KGaA, is the new chairman of the Communication Committee of the VCI (the German chemical industry association).

Coinciding with the start of the academic year, a new international student competition is being launched in six European countries: the ‘Henkel Innovation Challenge’. The search is on for innovative ideas relating to products and business concepts for the future in the field of laundry and home care. The competition is directed at students of all disciplines. Self-organized in teams of three, their remit is to get their creative ideas down on paper and submit them to Henkel. The company will then invite the teams with the most convincing concepts to the national finals to be held at the Henkel headquarters in Düsseldorf, Germany and the respective subsidiaries. Those adjudged to be the best will then go on to the international finals in Barcelona next April. In addition to an award ceremony, the winning team can also look forward to an exciting and stimulating trip to Istanbul. Every participant can expect to gain from the experience and particularly from the opportunity to forge invaluable contacts with a major and highly international company. “We regard the ‘Henkel Innovation Challenge’ as a unique chance for us and the participating students to get acquainted and enjoy the rewards of an intensive exchange of views,” explains jury member Fridtjof Helemann, Vice President Corporate Policies at Henkel.

Numerous breweries and mineral water bottlers are indirectly affected by higher world market prices for dairy products. Traditionally used labeling adhesives contain casein obtained from cow’s milk. The price of casein has recently risen dramatically and, in the opinion of raw materials experts, is unlikely to decrease shortly. As an alternative, Henkel supplies innovative casein-free adhesives that perform equally well.

Competition in the consumer goods industry is tough. To stay competitive the use of cost saving and innovative production processes is mandatory. Henkel offers a dedicated value package consisting of product, process and service, contributing to a higher quality, productivity and profitability for its packaging adhesive customers.

From September 26 to 29, Henkel is presenting the latest developments in pressure-sensitive adhesives and UV coatings for hotmelt coaters and label printers at the LabelExpo 2007 in Brussels. The focus is on single-source, mutually adapted systems solutions and premium products for label converting. Henkel's appearance at the LabelExpo will provide greater insights into points raised at Henkel’s 2^nd Open House for label printing and converting, held in Düsseldorf in May 2007, which drew over 150 customers and technology partners from all over Europe.

With their passion for new ideas and their expertise, scientists and engineers help to create the basis for future business success. In the new 2007 issue of its research magazine ‘in view of tomorrow,’ Henkel presents innovative ideas and interdisciplinary research and development projects. The magazine is available in German and English.

In a science press conference held at its Fritz Henkel House in Düsseldorf, Henkel offered insights into the excellent research results and attractive products that can grow out of a lively innovation culture. The examples presented were new research approaches in hair biology, functional genome research for laundry detergent enzymes using white biotechnology, computer-aided methods for product development, and crash-resistant adhesives and composite materials.

In this, Persil’s centennial, there is yet another reason for celebration: last Friday in Munich (Germany), Persil received the iF Gold Award for 2007 in the category “Print Media” for its new brand and packaging design.

The World Artistic Gymnastics Championships were a major success for the German team. On Thursday, the gymnasts led by head coach Andreas Hirsch already surprisingly won the bronze medal, and thus qualified to compete in the 2008 Olympics in Beijing. Fabian Hambüchen, the star athlete of the German team, took second place in the All-Around Final, and won the gold medal in the singles event for the high bar, his most favored gymnastic apparatus. Since 2004, Henkel has served as the main sponsor of Fabian Hambüchen, and is proud to be able to support this successful young athlete on his way to the 2008 Olympic Games.

Henkel has been listed as a sustainability leader for the first time in the Personal & Household Goods market sector of the Dow Jones Sustainability World Index (DJSI World) and the Dow Jones STOXX Sustainability Index (DJSI STOXX). In the consumer goods category, Henkel now leads on a global scale as well as in Europe. The indexes list companies that operate according to the principles of sustainable development. Henkel has also been included in the newly created Global Challenges Index as one of 50 exceptional corporate sustainability performers.

Fabian Hambüchen, the athlete sponsored by Henkel, is in the starting lineup for the World Artistic Gymnastics Championships, which begin on Saturday, September 1 in Stuttgart, Germany. For top athletes, the World Artistic Gymnastics Championships serve as a dress rehearsal for the 2008 Olympics. The competition in Stuttgart will determine which athletes will represent their countries in Beijing next year. Close to 500 athletes from more than 84 nations will test their skills against each other in both individual and team competitions. Fabian Hambüchen is considered to be one of the top favorites in the German team. Since 2004, Henkel has been the main sponsor of this young shooting star.

Following approval of the Shareholders’ Committee of Henkel KGaA, Henkel and Akzo Nobel N.V., Arnhem, The Netherlands, have signed an agreement on a back-to-back transaction on August 13, 2007.

On Sunday in Klagenfurt (Austria), one of the leading tournaments of the beach volleyball Grand Slam Tour came to an end. The organizers were highly satisfied. Some 100,000 visitors enjoyed top sport in bright sunshine. Henkel was present as a sponsor. While the international beach volleyball elite competed for victory, Henkel also attracted a good deal of interest. For each of the 368 match balls, the Company donated 10 euros to “Henkel Smile.” The money will be used to support blind and visually impaired children in Austria.

Henkel has reached an agreement with Akzo Nobel on the value of a back-to-back transaction. The transaction envisages that Henkel will acquire the adhesives and electronic materials businesses of National Starch, a subsidiary company of ICI. The agreed transaction value is 2.7 billion GBP (close to 4 billion euros). The signing of the back-to-back agreement is still subject to the approval of the Henkel Shareholders’ Committee. The transaction is conditional on the successful completion of the takeover of ICI by Akzo Nobel.

“With this agreement, we have taken a major step towards the successful conclusion of the planned acquisition. We consider the agreed transaction value to be a fair price, since the new businesses offer exceptional complementarity with our portfolio,” says Ulrich Lehner, Chairman of the Management Board of Henkel. “Moreover, we expect significant synergies and a substantial improvement of our growth and profit prospects to arise from the planned combination.”

Sales increased by 1.9 percent to 3,293 million euros / Organic sales grew 4.3 percent / Adjusted operating profit (EBIT) up 6.4 percent to 345 million euros / Continued dynamic expansion in the growth regions         

Henkel has signed an exclusivity agreement with Akzo Nobel. At the same time Henkel and Akzo Nobel have negotiated an agreement about a back-to-back transaction, the signing of which is still pending. Under the terms of such agreement Henkel would buy the adhesives and electronic materials businesses of National Starch, a subsidiary company of ICI, in the case of a take-over of ICI by Akzo Nobel. If however a formal offer will be made by Akzo Nobel or a successful takeover of ICI by Akzo Nobel will be realized respectively, is presently still open.

Ulrich Lehner, Chairman of the Management Board of Henkel, comments on the planned acquisition: "The acquisition would be a very good opportunity for us to further strengthen our Adhesives Technologies business sector. The businesses we want to acquire are high-growth operations and would enjoy exceptional geographical and technological complementarity with Henkel’s existing portfolio. I am confident that, with this acquisition, we would be able to realize significant synergies and create substantial value for our shareholders. If how-ever such an acquisition, which is subject to the takeover of ICI by Akzo Nobel, will be realized, cannot be forecast at this moment.”

The Industrial division of Henkel has reported dynamic business developments with respect to its lubricoolants. The special machining fluids distributed under the brand name Multan have undergone significant growth, bucking the generally recessive trend in lubricoolant demand. In 2006 alone, its pan-European sales leapt by over 20 percent.

The 2007 FIA Formula One World Championship season is shaping up strongly for Vodafone McLaren Mercedes: Three one-two finishes, four wins and 15 out of 18 possible podium finishes in the first nine of the 17 Grand Prix Races this year for Fernando Alonso and Lewis Hamilton. Vodafone McLaren Mercedes is the only team to score points in every race with both drivers. With strong leads in both the Drivers’ and Constructors’ Championships the team is making its mark this season. Invisible but present in more than 300 different applications throughout the Vodafone McLaren Mercedes MP4-22 are the products and technologies of a long-standing partner: Henkel.

The 2006 Henkel Annual Report was actually the recipient of two accolades in the LACP Vision Awards Annual Report Competition. With platinum, the League of American Communication Professionals put the report in first place in the “Household & Personal” category, and in the special “Best Report Cover” rankings, it won silver.

In keeping with its promise to provide customers with next generation materials development and compatibility testing, the electronics group of Henkel has completed the expansion of its state-of-the-art R&D and Applications laboratory in the company’s Hemel Hempstead facility in the United Kingdom.

“Allez, allez!”, “Push it!”, “Vamos a ganar!” – for six days, title sponsor Henkel presented the “2007 Henkel Beach Volleyball Grand Slam” at the foot of the Eiffel Tower in Paris, France. Once again this year, the atmosphere was exceptional – in both the sporting and musical sense. A total of 170,000 spectators cheered on the professional teams from 40 countries, following every point with fevered animation. Ultimately, the women’s tournament was won by Olympic title-holders and world champions Misty May-Treanor and Kerri Walsh (USA), while the men’s winners were the Brazilian duo Ricardo Santos and Emanuel Rego.

Henkel family increases share of common stock in Henkel KGaA

A celebration gala was held in honor of Jochen Krautter, member of the Henkel Management Board of many years, who will be leaving the company after more than three decades of dedicated service. Around 200 guests had gathered at the “Kunstsammlung NRW” venue in honor of the departing Executive Vice President Adhesives Technologies and Personally Liable Partner, keen to pay tribute to his achievements for and on behalf of the company. Jochen Krautter will officially leave the Management Board of Henkel as of July 1, 2007.

After the serves, returns and volleys of the French Open tennis tournament at Roland Garros, Paris is playing host to another major sporting event from June 18, 2007 – with Henkel appearing as title sponsor for the second year running. At the foot of the Eiffel Tower, the best beach volleyball players in the world will be digging, setting, spiking and blocking as they compete not just for positions, prize money and medals but also important ranking points for the 2008 Olympic Games in Beijing. Hence this year’s tournament has attracted more than 60 teams from 40 countries.

Henkel share newly added to international index

For the second year, Henkel is to appear as the headline sponsor of the Beach Volleyball Grand Slam in Paris. From June 18 to 24, 2007, the French capital will be playing host to the best beach volleyballers in the world. As participants in the 2007 Henkel Beach Volleyball Grand Slam, these will be competing for medals and ranking places literally in the shadows of the Eiffel Tower. This year’s tournament has attracted over 60 teams from 40 different countries.

Addressing the needs of global manufacturing, Henkel has introduced an advanced lead-free solder paste material designed for manufacturing flexibility and superior performance regardless of regional climatic conditions.

Interest in developments relating to globalization, assured presence in front of huge crowds, extensive travel experience and a robust constitution – not, as you might imagine, a description for development workers but rather a profile that is readily attributable to the much-fêted “Trash People”. At the beginning of June 2007 (from the 4th to 9th to be precise) these approximately 1,000 life-size sculptures of people made from garbage by world-famous action artist HA Schult – all held together by brand adhesives from Henkel – will be making a stop at the Plaça Reial in Barcelona as the next stage of their world tour.

Henkel share split to be executed on June 18, 2007

Henkel has added further value to this, the second annual Henkel Race Day featuring the “Preis der Diana”. With prize money totaling 560,000 euros, June 3, 2007, will see the most valuable German Oaks of all time. Hardly surprising then that the crème de la crème have been keen to register for this top race, bringing more than a hint of international flair to the Düsseldorf-Grafenberg track. The celebrity guests gracing the occasion are also of the highest caliber, with German actress Veronica Ferres, world-class gymnast Fabian Hambüchen and many other personalities providing added glamour. The Henkel Race Day featuring the “Preis der Diana” is not just a day at the races but also a family Sunday out, with a free shuttle service to and from the course and many free attractions.

The second Henkel Innovation Letter informs concisely about the different innovations made in the business sectors Laundry & Home Care, Cosmetics/ Toiletries, Consumer and Craftsmen Adhesives and Henkel Technologies.

For the last 50 years plus, Drei Wetter Taft has been synonymous with perfect styling chic, offering hold and protection come wind, rain or sunshine. Now, as of Monday, May 21, Europe’s most successful styling brand is launching a new campaign – with German supermodel Heidi Klum providing the new face of Drei Wetter Taft.

Vodafone McLaren Mercedes storms ahead in the 2007 FIA Formula One World Championship season with a new line-up of drivers and a new car – constructed with the help of a long-standing partner: Henkel. Now in more than 300 different applications covering diverse and time-critical engineering constraints, Henkel products and technologies help drive the continuing evolution and innovation of the Vodafone McLaren Mercedes MP4-22.

Sales increased by 6.2 percent to 3,237 million euros / Strong organic sales growth of 9.1 percent / Operating profit (EBIT) up 9.2 percent to 323 million euros / Earnings for the quarter improved 13.5 percent to 210 million euros

Pressure-sensitive labels have to meet high standards of quality, their machinability and dispensing behavior being just as important as the visual impact. For premium consumer goods in the personal and home care sector in particular, the label has to sit tight to the very last drop – even when exposed to high mechanical stressing. Innovative adhesives systems from Henkel may be the solution.

When a goal is scored in ice hockey, the Russian shout is “Schaibu, Schaibu!”. And as from tomorrow, Russian fans will be getting plenty of opportunity to exercise their lungs as the 2007 Ice Hockey World Cup gets underway in Moscow. Taking part for the first time is Henkel – as an official sponsor of the “IIHF World Championship”. In Henkel’s sponsoring activities, the focus is very much on global interest. The World Ice Hockey Championship in Russia is a perfect example of such internationality with 16 national teams meeting head-on in Russia’s capital, keenly watched by around 700 million viewers throughout the world.

The first round of the “Henkel Innovation Trophy” competition has proven to be a resounding success. The response from inventors around the world to this first global ideas competition from Henkel has been exceptional. Consequently, Henkel is now moving the initiative further forward under the new heading “Henkel Innovation Trophy – Partners in Innovation”. Once again, the company is calling upon all independent inventors to submit their creative ideas for appraisal. There is an attractive cash prize awaiting the winner, as well as the opportunity of signing an agreement with Henkel covering utilization of the proprietary rights assigned to the innovation.

As a result of Henkel’s improved financial profile and a more conservative financial policy, the rating agency Standard and Poor’s upgraded Henkel’s credit ratings to “A” long-term and “A-1” short-term (from “A-“ long-term and “A-2” short-term). The outlook is stable.

Henkel’s initiative entitled “Year of Innovation 2006“ was granted the PR Report Award in the “Internal Communications and Change Management“ category. Henkel also took second place in the category “Long-term PR Strategy“ for its corporate brand campaign “A Brand like a Friend“. For the fifth time, the German specialized trade magazine PR Report bestowed awards on experts and campaigns for outstanding achievements in the German-speaking PR industry.

Today’s Annual General Meeting of Henkel KGaA in Düsseldorf provided around 2000 shareholders with an overview of the development and performance of Henkel in fiscal 2006.

This year marks the 100th anniversary of the day when Persil as the first self-acting detergent entered the market to revolutionize the world of laundry care. Today, Persil from Henkel is available in around 60 countries. Moreover, the premium quality for which Persil is known is also available under local brand names such as Le Chat marketed in France, Wipp in Spain or Dixan in Italy, Greece and Cyprus. Now, this centennial year is to see the largest relaunch in Persil’s illustrious history. The premium detergent brands of Henkel are to be given a new, significantly more modern and dynamic design.

Henkel was successful at the International Mercury Excellence Awards, the American design and communications award competition, by winning in four categories. The jury honored the manufacturer of branded consumer products with two silvers and one bronze award, as well as a special “Honors” prize. The award ceremony now took place in New York.

72 percent less occupational accidents, 27 percent lower energy consumption, and 21 percent lower carbon dioxide emissions – with a concurrent increase of 66 percent in production volume: These are just three of the good results in Henkel’s sustainability performance in the 2002 to 2006 period. The Sustainability Report 2006 presented today additionally documents how Henkel helps to conserve resources with its brands and technologies – from production through use to disposal. And Henkel employees and pensioners attending the Round Table of the Make an Impact on Tomorrow (MIT) Initiative reported on their volunteer work in social projects.

Flying could be so simple – if it weren’t for the new EU regulations for carry-on bags. Since November 2006, only liquid products with a maximum volume of 100 ml are allowed to be carried aboard flights in the EU. Private travelers, but also those on business trips, often become aware of this information too late, and expensive cosmetics have to be dumped in the trash at check-in. But this need not be a worry anymore. Schwarzkopf & Henkel now offer practical Compact Travel Sets for women and men that contain of all the important care and styling products in mini sizes – the take-care-of-everything travel pack.

For more than 50 years, Taft has stood for perfect styling plus hold and protection in any weather. For decades, the brand has played a definitive role in modernizing the image of women in German society. From the teased, wild hairdos of the emancipated women of the 1960s and 1970s to the businesslike look of today’s women, Taft is the styling brand that has always been in line with the times. In 2007, the styling market leader has decided to join forces with the style icon who has influenced the image of women in Germany more than almost anyone else: Heidi Klum.

In 1907, manufacturer and branding pioneer Fritz Henkel launched Persil onto the market as one of the very first ever branded consumer products. And he backed up his quality creation with some pretty heavy advertising in an attempt to win that all-important consumer trust. Right from the start, Henkel used not only billboards but also a range of creative ideas in what experts today term “promotions”. As a result, the Persil brand wrote a piece of advertising history.

Sales increased by 6.4 percent to 12.74 billion euros / Outstanding organic sales growth of 6.0 percent / Operating profit (EBIT) increased by 11.7 percent to 1,298 million euros / Higher dividends proposed

Effective April 1, 2007, the Consumer and Craftsmen Adhesives and Henkel Technologies business sectors will be merged to form the new Adhesives Technologies business sector, with total sales of 5.5 billion euros realized in fiscal 2006. 

Henkel presents Research/Technology Invention Award for the third time:
Henkel today honored three of its own research teams and their university and industrial cooperation partners for their outstanding results. The work carried out by these teams establishes the basis for innovative products and opens up new technologies for Henkel.

Innovativeness has a long tradition at Henkel. The relentless striving of Company founder Fritz Henkel to devise new products is still a shining example today for the Company’s employees. Every year, for the past 25 years, teams composed of researchers, product developers, engineers, and marketing and sales experts have been rewarded with the Fritz Henkel Award for Innovation for product innovations that have proved especially successful on the market. Today, Henkel honored four teams as the winners for the year 2006.

488 award-winners, 108 projects honored – the proud total of 25 years of the Fritz Henkel Award for Innovation. Every year since 1982, outstanding products and processes designed by Henkel employees have won this coveted award in recognition of their verifiable market success and convincingly innovative character.

Sales: plus 6.4 percent to 12.74 billion euros / Strong organic sales growth: plus 6.0 percent / Operating profit (EBIT): plus 11.7 percent to 1,298 million euros / Net earnings: plus 13.1 percent to 871 million euros

The prices of Henkel’s industrial adhesives, sealants and surface treatment products in Europe are set to rise. These adjustments are due to substantial and ongoing cost increases for raw materials, packaging, transportation and energy.

In the “Good Company Ranking 2007,” Henkel has been honored as a sustainably operating and socially responsible company: In the European Corporate Social Responsibility rating of the 120 biggest companies, Henkel took a very good second place. And once again Henkel is one of the “Global 100: Most Sustainable Corporations in the World,” presented by the Canadian financial consultants Innovest Strategic Value Advisors.

Henkel will release its key financial figures for 2006 on February 1, 2007, 7:30 a.m CET.

As part of the internationalization process of the renowned US Institute for Public Relations (IPR), Ernst Primosch, Corporate Vice President and Head of Corporate Communications at Henkel, has been appointed to the IPR's Board of Trustees. In expressing his delight, Ernst Primosch went on to say: "Since the United States still play a leading role in communications worldwide, I consider this an excellent opportunity for both knowledge exchange and know how transfer to Europe."

December 15 marks the launch of the ‘Henkel Innovation Trophy' competition. In instituting this new, global innovation initiative, Henkel invites all independent inventors to submit their creative ideas. The objective is to add further impetus to Henkel's own innovation efforts. The awards for the winners include attractive cash prizes plus the chance to join Henkel in the commercialization of the associated proprietary rights. In the course of the ‘Henkel Innovation Trophy' campaign, Henkel also intends to cooperate closely with national and international inventor associations.

On January 6 the starting signal will be given for the 29th edition of the 16-day race across the desert and Henkel will be in. As Official Supplier to the 2007 Euromilhões Dakar Rally, the company will support all competitors during the race by providing them with Loctite® and Teroson branded products.