With a focus on Singapore and the APAC region, what are the main updates from Henkel in the past 12 months?

2022 and early 2023 have certainly presented challenges, primarily due to the macroeconomic environment and geopolitical issues. Despite these hurdles, Henkel has performed well, recording strong net sales development in 2022 and Q1 of 2023. Most of this growth was driven by pricing, although volumes have been soft in some industries due to economic conditions. We also made significant progress on our strategic framework, particularly by merging our consumer business divisions into a new business unit “Henkel Consumer Brands”. An essential part of this strategy was integrating our recent acquisition, Shiseido Professional, which is proving to be a game-changer for our hair professional business. In Singapore, we upgraded our adhesives application engineering laboratory to connect digitally with customers, enabling us to provide training here and throughout the region. We launched a new department focusing on the digitalization of operations and supply chains for our Adhesive Technologies business, thereby improving our manufacturing processes in line with Industry 4.0 principles. Could you expand on the strategy behind acquiring Shiseido Professional?

The acquisition of Shiseido Professional is part of our strategy to consolidate our consumer business under one roof. This move enhances our position in the hair professional business, especially in Asia-Pacific. Shiseido Professional, with its focus on the Asian hair business and coloration complements our existing brand, Schwarzkopf Professional. What digitalization efforts have you made recently?

We have established our second global supply chain hub in Singapore alongside our Amsterdam global hub. Our focus is on creating a strong backbone for our operations, powered by digitalization, which entails standardizing processes and driving Industry 4.0 practices into the plants. Our recent establishment of a digital team in Singapore has elevated this even further, working on cloud-based solutions and enhancing the interconnectivity of our plants. How does Henkel view and approach sustainability?

To promote employee engagement in sustainability, Henkel expanded its existing training offering to a holistic engagement program, which rolled out in March 2022. The aim of the global “Sustainability at Heart” program is to inform and train employees even more comprehensively on sustainability.

Sustainability efforts extend to our product development, with a focus on recyclability and reusability. For instance, in our hair professional business, our Igora Royal brand uses tubes made of 100% recycled aluminum and 100% recycled plastic for the caps. In our paper coating business, we are pushing for paper-based solutions instead of plastic. Can you comment on Henkel's participation in the “Together for Sustainability” initiative?

“Together for Sustainability” (TfS) is a significant initiative and Henkel is proud to be one of the founding members of the initiative in 2011. TfS aims to streamline and simplify sustainability practices across the industry rather than having each company develop its own audit standards. This approach has been well-received globally, with over 50 chemical companies now being a part of this association. The goal is to work with like-minded companies and establish common standards to promote sustainability. Without this kind of standardized approach, efforts could become chaotic. In 2021, Henkel joined hands with five other chemical companies to launch the TfS Singapore team to drive sustainable supply chains in the chemical industries in Singapore, Southeast Asia, and beyond. Do you have any goals or strategies for Henkel that you would like to share for the upcoming year?

Our main focus is on having a winning portfolio in the market, which we are enhancing by building strong brands and making strategic acquisitions. Additionally, we are building competitive edges in areas of digitalization, innovation, and sustainability.

The human factor is crucial in all these efforts. As an employer of choice, it is important for us to continue shaping a culture of Diversity, Equity, and Inclusion, where we are making good progress in gender representation with around 54% of female employees and a growing proportion of female leaders, as well as employees from 22 nationalities working collaboratively with a common purpose.

We will continue investing in our global supply chain and digitizing it. Despite the ever-evolving market challenges, we are confident in our ability to navigate them successfully.