Q2 2026 Henkel AG & Co KGaA Earnings Call

August 6, 2026

Speaker #1: Good morning, and welcome to the Henkel conference call. For the duration of the call, you will be in listen-only mode. If you would like to ask a question during the Q&A session, please press star and 1 on your telephone keypad.

Operator: Good morning, and welcome to Henkel Conference Call. For the duration of the call, you will be in listen-only. If you would like to ask a question during the Q&A session, please press star 1 on your telephone keypad. If at any time you need assistance, please press star 0, and you will be connected to an operator. I would now like to turn the conference over to Leslie Iltgen, Head of Investor Relations. Please go ahead, Madam.

Operator: Good morning, and welcome to Henkel Conference Call. For the duration of the call, you will be in listen-only. If you would like to ask a question during the Q&A session, please press star and one on your telephone keypad. If at any time you need assistance, please press star and zero, and you will be connected to an operator. I would now like to turn the conference over to Leslie Iltgen, Head of Investor Relations. Please go ahead, Madam.

Speaker #1: If at any time you need assistance, please press star and zero, and you will be connected to an operator. I would now like to turn the conference over to Leslie Iltgen, Head of Investor Relations.

Speaker #1: Please go ahead, madam.

Speaker #2: Thank you. Good morning, and a warm welcome to everyone joining Henkel's half-year 2026 results conference call today. I'm Leslie Iltgen, Head of Investor Relations at Henkel.

Leslie Iltgen: Thank you. Good morning, and a warm welcome to everyone joining Henkel's H1 2026 results conference call today. I am Leslie Iltgen, Head of Investor Relations at Henkel. Today I am joined by our CEO, Carsten Knobel, and our CFO, Marco Swoboda. Carsten will begin with an overview of the key developments in the H1. Marco will follow with a more detailed review of the company's financial performance. As always, following the presentation, we will open up the lines, and Carsten and Marco will be happy to take your questions. Before handing over to Carsten, please let me remind you that this call will be recorded, and a replay will be made available on our Investor Relations website shortly after this call.

Leslie Iltgen: Thank you. Good morning, and a warm welcome to everyone joining Henkel's H1 2026 Results Conference Call today. I am Leslie Iltgen, Head of Investor Relations at Henkel. Today I am joined by our CEO, Carsten Knobel, and our CFO, Marco Swoboda. Carsten will begin with an overview of the key developments in the H1. Marco will follow with a more detailed review of the company's financial performance. As always, following the presentation, we will open up the lines, and Carsten and Marco will be happy to take your questions.

Speaker #2: Today, I'm joined by our CEO, Carsten Knobel, and our CFO, Marco Swoboda. Carsten will begin with an overview of the key developments in the first half. Marco will then follow with a more detailed review of the company's financial performance.

Speaker #2: As always, following the presentation, we will open up the lines, and Carsten and Marco will be happy to take your questions. Before handing over to Carsten, please let me remind you that this call will be recorded, and a replay will be made available on our Investor Relations website shortly after this call.

Leslie Iltgen: Before handing over to Carsten, please let me remind you that this call will be recorded, and a replay will be made available on our Investor Relations website shortly after this call. By asking a question during the Q&A session, you agree to both the live broadcasting, as well as the recording of your question, including salutation, to be published on our website. Also, please be reminded that this presentation contains the usual formal disclaimer in regard to forward-looking statements within the meaning of relevant US legislation. It can also be accessed via our website at henkel.com.

Speaker #2: By asking a question during the Q&A session, you agree to both the live broadcasting and the recording of your question, including your salutation, to be published on our website.

Leslie Iltgen: By asking a question during the Q&A session, you agree to both the live broadcasting, as well as the recording of your question, including salutation, to be published on our website. Also, please be reminded that this presentation contains the usual formal disclaimer in regard to forward-looking statements within the meaning of relevant US legislation. It can also be accessed via our website at henkel.com. As always, the presentation and discussion are conducted subject to this disclaimer. With this, it is my pleasure to hand over to our CEO, Carsten Knobel. Carsten, please go ahead.

Speaker #2: Also, please be reminded that this presentation contains the usual formal disclaimer regarding forward-looking statements, within the meaning of relevant U.S. legislation. It can also be accessed via our website at henkel.com.

Speaker #2: As always, the presentation and discussion are conducted subject to this disclaimer. With this, it is my pleasure to hand over to our CEO, Carsten Knobel.

Leslie Iltgen: As always, the presentation and discussion are conducted subject to this disclaimer. With this, it is my pleasure to hand over to our CEO, Carsten Knobel. Carsten, please go ahead.

Speaker #2: Carsten, please go ahead.

Speaker #3: Thank you, Leslie, and a warm welcome also from my side to everyone joining our conference call today. As always, we do appreciate your interest in our company, and we look forward to answering your questions.

Carsten Knobel: Thank you, Leslie, and a warm welcome also from my side to everyone joining our conference call today. As always, we do appreciate your interest in our company, and we look forward to answering your questions. After walking you through the key developments of the first 6 months, we will elaborate on Henkel's business performance and the full-year outlook in more detail. So let me move now straight to the highlights of the H1 2026. In the H1, we delivered very strong performance on both the top and the bottom line. Organic sales growth showed a clear sequential acceleration in Q2 and came in at above 3% for the H1 on Group level, backed by both business units, with Adhesive Technologies clearly standing out. We saw both positive price and volume dynamics in our two business units.

Speaker #3: And after walking you through the key developments of the first six months, we will elaborate on Henkel's business performance and the full-year outlook in more detail.

Speaker #3: So let me move now straight to the highlights of the first half of 2026. In the first half, we delivered very strong performance on both the top and the bottom line.

Speaker #3: Organic sales growth showed a clear, sequential acceleration in Q2 and came in at above 3% for the first half at group level, backed by both business units.

Carsten Knobel: Organic sales growth showed a clear sequential acceleration in Q2 and came in at above 3% for the H1 on Group level, backed by both business units, with Adhesive Technologies clearly standing out. We saw both positive price and volume dynamics in our two business units. In Adhesive Technologies, the team was able to swiftly execute pricing initiatives to offset the significant raw material price increases. We also delivered a strong EBIT margin, both on group level and in the business units, despite an overall highly challenging macroeconomic and geopolitical environment in which we are currently operating.

Speaker #3: With Adhesive Technologies clearly standing out, we saw both positive price and volume dynamics in our two business units. In Adhesive Technologies, the team was able to swiftly execute pricing initiatives to offset the significant raw material price increases.

Carsten Knobel: In Adhesive Technologies, the team was able to swiftly execute pricing initiatives to offset the significant raw material price increases. We also delivered a strong EBIT margin, both on group level and in the business units, despite an overall highly challenging macroeconomic and geopolitical environment in which we are currently operating. This demonstrates the strength and the high quality of our businesses. In addition, EPS at constant currency grew strongly by 7% versus the prior year. Furthermore, we accelerated the execution of our M&A growth strategy in both business units. Most recently, we have closed the acquisition of Olaplex. Overall, we expect first positive contributions from the acquisitions on both top and bottom line in fiscal 2026. Finally, turning to our updated full year 2026 guidance.

Speaker #3: We also delivered a strong EBIT margin, both at the group level and in the business units, despite a highly challenging macroeconomic and geopolitical environment in which we are currently operating.

Speaker #3: This demonstrates the strength and high quality of our businesses. In addition, EPS at constant currency grew strongly by 7% versus the prior year.

Carsten Knobel: This demonstrates the strength and the high quality of our businesses. In addition, EPS at constant currency grew strongly by 7% versus the prior year. Furthermore, we accelerated the execution of our M&A growth strategy in both business units. Most recently, we have closed the acquisition of Olaplex. Overall, we expect first positive contributions from the acquisitions on both top and bottom line in fiscal 2026. Finally, turning to our updated full year 2026 guidance.

Speaker #3: Furthermore, we accelerated the execution of our M&A growth strategy in both business units. Most recently, we have closed the acquisition of Olaplex. Overall, we expect the first positive contributions from the acquisitions on both the top and bottom line in fiscal 2026.

Speaker #3: And finally, turning to our updated full-year 2026 guidance, we upgraded our top-line expectations for the Group and Adhesive Technologies on the back of the strong H1 performance, while our expectations for both the adjusted EBIT margin and the adjusted EPS growth at constant currencies remain unchanged.

Carsten Knobel: We upgraded our top-line expectations for the group and Adhesive Technologies on the back of the strong H1 performance, while our expectations for both the adjusted EBIT margin and the adjusted EPS growth at constant currencies remain unchanged. Overall, our strong business performance demonstrates that we have a clear strategy with our purposeful growth agenda, that we have the right priorities, and that we were able to accelerate the execution of our M&A growth strategy, thereby clearly strengthening our long-term competitiveness and position for future success. As you are all aware, we continue to successfully deliver on our M&A growth strategy, which is an integral part of our overall growth strategy in both business units. With the recently announced acquisitions, we are investing a total of roughly EUR 5 billion, supported by future mid-to-high single-digit organic sales growth, which is clearly above average.

Speaker #3: Overall, our strong business performance demonstrates that we have a clear strategy with our purposeful growth agenda, that we have the right priorities, and that we were able to accelerate the execution of our M&A growth strategy, thereby clearly strengthening our long-term competitiveness and position for future success.

Speaker #3: As you are all aware, we continue to successfully deliver on our M&A growth strategy, which is an integral part of our overall growth strategy in both business units.

Carsten Knobel: As you are all aware, we continue to successfully deliver on our M&A growth strategy, which is an integral part of our overall growth strategy in both business units. With the recently announced acquisitions, we are investing a total of roughly EUR 5 billion, supported by future mid-to-high single-digit organic sales growth, which is clearly above average.The combined sales of the 5 acquisitions are expected to increase to EUR 2 billion by 2030.

Speaker #3: With the recently announced acquisitions, we are investing a total of roughly €5 billion, supported by future mid- to high single-digit organic sales growth, which is clearly above average. The combined sales of the five acquisitions are expected to increase to €2 billion by 2030.

Carsten Knobel: The combined sales of the 5 acquisitions are expected to increase to EUR 2 billion by 2030. To date, we have already successfully closed 4 out of the 5 transactions, Weatherby, La Roque, and ATP Adhesive Systems in Adhesive Technologies, Not Your Mother's, and most recently, as mentioned before, Olaplex in Consumer Brands. We expect the Stahl acquisition to be closed in the course of the H2 of fiscal 2026. For sure, Marco will later provide you with more details on the expected M&A contribution for 2026 and beyond. Let me highlight our most recently closed acquisition in Consumer Brands and Adhesive Technologies. With the acquisition of the premium haircare brand, Olaplex, adding around EUR 370 million in sales, we expand our global presence in the premium hair segment and are now ranked the global number 2 in hair professionals.

Speaker #3: To date, we have already successfully closed four out of the five transactions, whether Bilarock and ATP Adhesive Systems in Adhesive Technologies, Not Your Mother's, and most recently, as mentioned before, Olaplex in Consumer Brands.

Carsten Knobel: To date, we have already successfully closed 4 out of the 5 transactions, Weatherby, La Roque, and ATP Adhesive Systems in Adhesive Technologies, Not Your Mo ther's, and most recently, as mentioned before, Olaplex in Consumer Brands. We expect the Stahl acquisition to be closed in the course of the H2 of fiscal 2026. For sure, Marco will later provide you with more details on the expected M&A contribution for 2026 and beyond. Let me highlight our most recently closed acquisition in Consumer Brands and Adhesive Technologies.

Speaker #3: We expect the STAR acquisition to be closed during the second half of fiscal 2026. And for sure, Marco will later provide you with more details on the expected M&A contributions for 2026.

Speaker #3: And beyond. Let me highlight our most recently closed acquisition in Consumer Brands and Adhesive Technologies. With the acquisition of the premium hair care brand Olaplex, adding around €370 million in sales, we expand our global presence in the premium hair segment and are now ranked the global number two in hair professional.

Carsten Knobel: With the acquisition of the premium haircare brand, Olaplex, adding around EUR 370 million in sales, we expand our global presence in the premium hair segment and are now ranked the global number 2 in hair professionals. The premium haircare market is a highly attractive market and is expected to continue its strong growth trajectory, reflected in a CAGR of around 5% for the coming years. Olaplex is a well-established, globally active premium channel haircare brand offering a portfolio of science-led, high-performance products.

Speaker #3: The premium hair care market is a highly attractive market and is expected to continue its strong growth trajectory, reflected in a CAGR of around 5% for the coming years.

Carsten Knobel: The premium haircare market is a highly attractive market and is expected to continue its strong growth trajectory, reflected in a CAGR of around 5% for the coming years. Olaplex is a well-established, globally active premium channel haircare brand offering a portfolio of science-led, high-performance products. We are highly confident that we can significantly grow this business by making use of cross-selling opportunities and leveraging on both specialty retail and salons at distribution channels. In addition, Olaplex proprietary technologies offer attractive innovation opportunities, unlocking new growth potential through enhanced capabilities and accelerating product development across the portfolio. Furthermore, Olaplex benefits from a global footprint anchored by broad distribution in North America and supported by meaningful international reach. Overall, a promising and highly attractive asset that is now part of Henkel's Consumer Brands portfolio. In Adhesive Technologies, we closed the acquisition of ATP Adhesive Systems effective 1 April.

Speaker #3: Olaplex is a well-established, globally active premium channel hair care brand, offering a portfolio of science-led, high-performance products. We are highly confident that we can significantly grow this business by making use of cross-selling opportunities and leveraging both specialty retail and salons as distribution channels.

Carsten Knobel: We are highly confident that we can significantly grow this business by making use of cross-selling opportunities and leveraging on both specialty retail and salons at distribution channels. In addition, Olaplex proprietary technologies offer attractive innovation opportunities, unlocking new growth potential through enhanced capabilities and accelerating product development across the portfolio. Furthermore, Olaplex benefits from a global footprint anchored by broad distribution in North America and supported by meaningful international reach.

Speaker #3: In addition, Olaplex's proprietary technologies offer attractive innovation opportunities, unlocking new growth potential through enhanced capabilities and accelerating product development across the portfolio. Furthermore, Olaplex benefits from a global footprint.

Speaker #3: Anchored by broad distribution in North America and supported by meaningful international reach, overall a promising and highly attractive asset that is now part of Henkel's Consumer Brands portfolio.

Carsten Knobel: Overall, a promising and highly attractive asset that is now part of Henkel's Consumer Brands portfolio. In Adhesive Technologies, we closed the acquisition of ATP Adhesive Systems effective 1 April. The acquisition expands our portfolio into high-performance water-based specialty tapes, a highly attractive market growing at around 7% annually. With this acquisition, we add tapes to our technology platforms, thus expanding beyond liquids.

Speaker #3: In Adhesive Technologies, we closed the acquisition of ATP Adhesive Systems, effective April 1st. The acquisition expands our portfolio into high-performance, water-based specialty tapes. Our highly attractive market is growing at around 7% annually. With this acquisition, we add tapes to our technology platforms, thus expanding beyond liquid.

Carsten Knobel: The acquisition expands our portfolio into high-performance water-based specialty tapes, a highly attractive market growing at around 7% annually. With this acquisition, we add tapes to our technology platforms, thus expanding beyond liquids. ATP strengthens our innovation capabilities, creates attractive cross-selling opportunities, and enhances our position as a new growth platform for sustainable bonding solutions. Water-based specialty tapes are gaining market share globally as a more sustainable alternative to solvent-based solutions. They deliver up to 90% lower volatile organic compound emissions and an up to 60% lower carbon footprint versus solvent-based solutions. A good example are zero-emission flooring tapes. They combine high performance with regulatory compliance and sustainability benefits. These solutions recorded an impressive growth of above 20% in the US in H1 2026. Another example from the automotive industry are customized tape solutions for advanced driver assistance systems, including steering wheels with hands-off detection capabilities.

Speaker #3: ATP strengthens our innovation capabilities, creates attractive cross-selling opportunities, and enhances our position as a new growth platform for sustainable bonding solutions. Water-based specialty tapes are gaining market share globally as a more sustainable alternative to solvent-based solutions.

Carsten Knobel: ATP strengthens our innovation capabilities, creates attractive cross-selling opportunities, and enhances our position as a new growth platform for sustainable bonding solutions. Water-based specialty tapes are gaining market share globally as a more sustainable alternative to solvent-based solutions. They deliver up to 90% lower volatile organic compound emissions and an up to 60% lower carbon footprint versus solvent-based solutions. A good example are zero-emission flooring tapes. They combine high performance with regulatory compliance and sustainability benefits.

Speaker #3: They deliver up to 90% lower volatile organic compound emissions and up to a 60% lower carbon footprint versus solvent-based solutions. A good example is zero-emission flooring tapes.

Speaker #3: They combine high performance with regulatory compliance and sustainability benefits. These solutions recorded impressive growth of above 20% in the US in the first half of 2026.

Carsten Knobel: These solutions recorded an impressive growth of above 20% in the US in H1 2026. Another example from the automotive industry are customized tape solutions for advanced driver assistance systems, including steering wheels with hands-off detection capabilities. This part of the business recorded growth of more than 10% globally. Here overall, with the acquisition of ATP, we not only drive further profitable growth, but also create additional value for our customers. Besides M&A, innovations and investments in high-growth markets serve as catalysts for organic growth.

Speaker #3: Another example from the automotive industry is customized tape solutions for advanced driver assistance systems, including steering wheels with hands-off detection capabilities. This part of the business recorded growth of more than 10% globally.

Carsten Knobel: This part of the business recorded growth of more than 10% globally. Here overall, with the acquisition of ATP, we not only drive further profitable growth, but also create additional value for our customers. Besides M&A, innovations and investments in high-growth markets serve as catalysts for organic growth. Innovations drive an increase in the number of Henkel solutions per application. For example, in consumer devices, as shown here on that slide. In consumer electronics, innovation trends such as miniaturization, water resistance, and thermal management are driving demand for adhesives. As a result, the average number of Henkel solutions in a smartphone is expected to increase by 50% to more than 80 per device within 10 years until 2030.

Speaker #3: Also here, overall, with the acquisition of ATP, we not only drive further profitable growth but also create additional value for our customers. Besides M&A, innovations and investments in high-growth markets serve as catalysts for organic growth.

Speaker #3: Innovations drive an increase in the number of Henkel solutions per application, for example in consumer devices as shown here on that slide. In consumer electronics, innovation trends such as miniaturization, water resistance, and thermal management are driving demand for adhesives.

Carsten Knobel: Innovations drive an increase in the number of Henkel solutions per application. For example, in consumer devices, as shown here on that slide. In consumer electronics, innovation trends such as miniaturization, water resistance, and thermal management are driving demand for adhesives. As a result, the average number of Henkel solutions in a smartphone is expected to increase by 50% to more than 80 per device within 10 years until 2030.

Speaker #3: As a result, the average number of Henkel solutions in a smartphone is expected to increase by 50% to more than 80 per device within 10 years, until 2030.

Speaker #3: At the same time, we continue to invest in attractive, high-growth markets, such as aerospace, data centers, and protection and repair in infrastructure, to further strengthen our platform for sustainable and profitable growth.

Carsten Knobel: At the same time, we continue to invest in attractive high-growth markets such as aerospace, data centers, and protection and repair in infrastructure to further strengthen our platform for sustainable and profitable growth. To support growth in these attractive end markets, we also continue to invest in our manufacturing work. Thus, further strengthening innovation capabilities and customer proximity in key growth regions. A good example is our new smart factory in Yantai, China. With an investment of around EUR 120 million, the site provides a strong backbone for future growth in the region and supports high growth industries such as electronics, automotive, medical, and aerospace. At the same time, the facility sets new benchmarks in sustainability, operating with net zero emissions from day one. The smart factory leverages state-of-the-art automation, digitized process control, and intelligent warehousing to enhance productivity, inventory management, and order fulfillment speed.

Speaker #3: To support growth in these attractive end markets, we also continue to invest in our manufacturing work, thus further strengthening innovation capabilities and customer proximity in key growth regions.

Speaker #3: A good example is our new smart factory in Yantai, China. With an investment of around €120 million, the site provides a strong backbone for future growth in the region and supports high-growth industries such as electronics, automotive, medical, and aerospace.

Carsten Knobel: A good example is our new smart factory in Yantai, China. With an investment of around EUR 120 million, the site provides a strong backbone for future growth in the region and supports high growth industries such as electronics, automotive, medical, and aerospace. At the same time, the facility sets new benchmarks in sustainability, operating with net zero emissions from day one. The smart factory leverages state-of-the-art automation, digitized process control, and intelligent warehousing to enhance productivity, inventory management, and order fulfillment speed.

Speaker #3: And at the same time, the facility sets new benchmarks in sustainability, operating with net zero emissions from day one. The smart factory leverages state-of-the-art automation, digitized process control, and intelligent warehousing to enhance productivity, inventory management, and order fulfillment speed.

Speaker #3: Complementing this investment, we have further expanded our customer and innovation capabilities with new application centers in Asia. Most recently, we opened our new electronics co-innovation and application center in India, further strengthening our ability to support customers in one of the world's fastest-growing electronics markets.

Carsten Knobel: Complementing this investment, we have further expanded our customer and innovation capabilities with new application centers in Asia. Most recently, we opened our new electronics co-innovation and application center in India, further strengthening our ability to support customers in one of the world's fast-growing electronics markets. Together, these investments enhance our innovation capabilities, shorten innovation cycles, and position us well to benefit from long-term growth trends in key end markets. Moving to specific innovation examples in construction, where our technologies help customers address highly demanding technical and sustainability requirements. For one of the world's most iconic and technically demanding construction projects, the Sagrada Familia in Barcelona, we customized Loctite bonding solutions for the installation of large stone panels on the basilica's central tower. Our solution enables the reliable bonding of stone and steel components under highly demanding conditions.

Speaker #3: Together, these investments enhance our innovation capabilities, shorten innovation cycles, and position us well to benefit from long-term growth trends in key end markets. Moving to specific innovation examples in construction, where our technologies help customers address highly demanding technical and sustainability requirements.

Carsten Knobel: Moving to specific innovation examples in construction, where our technologies help customers address highly demanding technical and sustainability requirements. For one of the world's most iconic and technically demanding construction projects, the Sagrada Familia in Barcelona, we customized Loctite bonding solutions for the installation of large stone panels on the basilica's central tower. Our solution enables the reliable bonding of stone and steel components under highly demanding conditions.

Speaker #3: For one of the world’s most iconic and technically demanding construction projects, the Sagrada Familia in Barcelona, we customized Loctite bonding solutions for the installation of large stone panels on the Basilica’s central tower.

Speaker #3: Our solution enables the reliable bonding of stone and steel components under highly demanding conditions. Compared with traditional methods, our solution enabled the accelerated installation by a factor of 10, while providing exceptional strengths.

Carsten Knobel: Compared with traditional methods, our solution enables the accelerated installation by a factor of 10 while providing exceptional strength. The project highlights our ability to combine deep engineering expertise with close customer collaboration to customize solutions for highly specialized applications. Another example is our cool roof technology. The waterproofing and coating solution help reduce rooftop temperatures, improving energy efficiency. By lowering cooling temp requirements and supporting lower carbon emissions, this solution contributes to more sustainable building. Turning now to Consumer Brands, where we see continued strong growth dynamics of our top 10 brands with above average growth of more than 4%, driven by a balanced contribution from both price and volume. They account for around 60% of the business unit sales and provide a good representation of our portfolio with leading positions in both laundry and home and hair.

Speaker #3: The project highlights our ability to combine deep engineering expertise with close customer collaboration to customize solutions for highly specialized applications. Another example is our cool roof technology.

Speaker #3: The waterproofing and coating solution helped reduce rooftop temperatures, improving energy efficiency. By lowering cooling temperature requirements and supporting lower carbon emissions, this solution contributes to more sustainable building.

Speaker #3: Turning now to Consumer Brands, we see continued strong growth dynamics in our top 10 brands, with above-average growth of more than 4%, driven by a balanced contribution from both price and volume.

Carsten Knobel: Turning now to Consumer Brands, where we see continued strong growth dynamics of our top 10 brands with above average growth of more than 4%, driven by a balanced contribution from both price and volume. They account for around 60% of the business unit sales and provide a good representation of our portfolio with leading positions in both laundry and home and hair.Hair overall continues to be a highly attractive category, driven by trends such as the skinification of hair protection, and hair repair.

Speaker #3: They account for around 60% of the business unit's sales and provide a good representation of our portfolio, with leading positions in both laundry and home care and hair.

Speaker #3: Hair overall continues to be a highly attractive category, driven by trends such as the skinnification of hair, hair protection, and hair repair. With the tech-driven innovations we develop at Henkel, we can successfully address and shape these trends.

Carsten Knobel: Hair overall continues to be a highly attractive category, driven by trends such as the skinification of hair protection, and hair repair. With tech-driven innovations we develop at Henkel, we can successfully address and shape these trends. A good example is the launch of our premium scalp care line under the Gliss brand. Addressing the growing skinification of hair trends, this trend applies skincare ingredients, routines, and principles to hair and scalp care, reflecting the belief that healthy hair starts with a healthy scalp. As a result, while the hair market has been growing at a fast pace of around 4.5% over the past years, we have even been able to outperform the market, delivering organic net sales growth of above 6%. Turning to laundry care, where we continue to actively shape our portfolio with an increased focus on the premium segment.

Carsten Knobel: With tech-driven innovations we develop at Henkel, we can successfully address and shape these trends. A good example is the launch of our premium scalp care line under the Gliss brand. Addressing the growing skinification of hair trends, this trend applies skincare ingredients, routines, and principles to hair and scalp care, reflecting the belief that healthy hair starts with a healthy scalp. As a result, while the hair market has been growing at a fast pace of around 4.5% over the past years, we have even been able to outperform the market, delivering organic net sales growth of above 6%.

Speaker #3: A good example is the launch of our premium scalp care line under the Gliss brand, addressing the growing skinnification of hair trends. This trend applies skincare ingredients, routines, and principles to hair and scalp care, reflecting the belief that healthy hair starts with a healthy scalp.

Speaker #3: And as a result, while the hair market has been growing at a fast pace of around 4.5% over the past years, we have even been able to outperform the market.

Speaker #3: Delivering organic net sales growth of above 6%. Turning to laundry care, where we continue to actively shape our portfolio with an increased focus on the premium segment.

Carsten Knobel: Turning to laundry care, where we continue to actively shape our portfolio with an increased focus on the premium segment. As highlighted during our Q1 call, we see attractive growth and value creation opportunities in the premium laundry care market. This strategic focus is also reflected in our portfolio mix. The share of premium product has increased from around 45% before the Consumer Brands merger to around 55% today. With that, bringing it well above the market average.

Speaker #3: As highlighted during our Q1 call, we see attractive growth and value creation opportunities in the premium laundry care market. This strategic focus is also reflected in our portfolio mix.

Carsten Knobel: As highlighted during our Q1 call, we see attractive growth and value creation opportunities in the premium laundry care market. This strategic focus is also reflected in our portfolio mix. The share of premium product has increased from around 45% before the Consumer Brands merger to around 55% today. With that, bringing it well above the market average. Looking ahead, we do also see further opportunities to expand our premium share in laundry care, supported by technology-driven innovations among our top brands, delivering with that superior consumer benefit. A good example here is Persil, our long-established premium brand. Here we continue to strengthen our offering through superior performance propositions and premium formats such as caps, addressing consumer increasing demand for superior cleaning results. Turning to Perwoll, where we are enhancing our premium positioning by focusing on specialized textiles and garment care solutions, fabric longevity, and care benefits.

Speaker #3: The share of premium products has increased from around 45% before the Consumer Brands merger to around 55% today. With that, it is now well above the market average. Looking ahead, we also see further opportunities to expand our premium share in Laundry & Home Care, supported by technology-driven innovations among our top brands.

Carsten Knobel: Looking ahead, we do also see further opportunities to expand our premium share in laundry care, supported by technology-driven innovations among our top brands, delivering with that superior consumer benefit. A good example here is Persil, our long-established premium brand. Here we continue to strengthen our offering through superior performance propositions and premium formats such as caps, addressing consumer increasing demand for superior cleaning results.

Speaker #3: Delivering consumer benefit. A good example here is Persil, our long-established premium brand. Here, we continue to strengthen our offering through superior performance propositions and premium formats such as caps, addressing consumers' increasing demand for superior cleaning results.

Speaker #3: And turning to Perwoll, where we are enhancing our premium positioning by focusing on specialized textiles and garment care solutions, fabric longevity, and care benefit.

Carsten Knobel: Turning to Perwoll, where we are enhancing our premium positioning by focusing on specialized textiles and garment care solutions, fabric longevity, and care benefits. Here, our product innovations support consumers' growing interest in preserving and extending the life of their clothes. Most recently, we launched a new Perwoll version specifically designed for light-colored garments, thereby further broadening the brand's formulation portfolio. The success of our strategy is also reflected in the numbers.

Speaker #3: Here, our product innovations support consumers’ growing interest in preserving and extending the life of their clothes. Most recently, we launched a new Perwoll version specifically designed for light-colored garments, thereby further broadening the brand’s formulation portfolio.

Carsten Knobel: Here, our product innovations support consumers' growing interest in preserving and extending the life of their clothes. Most recently, we launched a new Perwoll version specifically designed for light-colored garments, thereby further broadening the brand's formulation portfolio. The success of our strategy is also reflected in the numbers. Our top brands, Persil and Perwoll, recorded a strong performance and together delivered around 5% organic sales growth in the H1. Taking a closer look at the attractive fabric care category, which continues to stand out, here we gained another 50 basis points market share in the H1 of 2026, a very strong development. Overall, we are confident that our focus on premium laundry care is translating into strong brand performance, market share gains, and further profitable growth. Now turning to our full-year outlook.

Speaker #3: The success of our strategy is also reflected in the numbers. Our top brands, Persil and Perwoll, recorded a strong performance and together delivered around 5% organic sales growth in the first half.

Carsten Knobel: Our top brands, Persil and Perwoll, recorded a strong performance and together delivered around 5% organic sales growth in the H1. Taking a closer look at the attractive fabric care category, which continues to stand out, here we gained another 50 basis points market share in the H1 of 2026, a very strong development. Overall, we are confident that our focus on premium laundry care is translating into strong brand performance, market share gains, and further profitable growth. Now turning to our full-year outlook.

Speaker #3: Taking a closer look at the attractive Fabric Care category, which continues to stand out, here we gained another 50 basis points of market share in the first half of '26—a very strong development.

Speaker #3: Overall, we are confident that our focus on premium laundry care is translating into strong brand performance, market share gains, and further profitable growth.

Speaker #3: And now, turning to our full-year outlook. We upgraded our top-line expectations for the Group and Adhesive Technologies on the back of the strong H1 performance.

Carsten Knobel: We upgraded our top-line expectations for the group and Adhesive Technologies on the back of the strong H1 performance. For the group, we now expect organic net sales growth of 1.5% to 3.5%, and for Adhesive Technologies, we are now looking for 2% to 4%. The outlook for the adjusted EBIT margin remains unchanged and is expected to come in between 14.5% and 16%. The same holds true for the adjusted EPS growth at constant currencies, where we continue to expect an increase in the low to high single-digit percentage range. Marco will elaborate now in more detail on our updated outlook in his part of the presentation. With this, let me hand over to Marco, who will lead you now through the key financials of the H1. Marco, please.

Speaker #3: For the Group, we now expect organic net sales growth of 1.5% to 3.5%, and for Adhesive Technologies, we are now looking for 2% to 4%.

Speaker #3: The outlook for the adjusted EBIT margin remains unchanged and is expected to be between 14.5% and 16%. The same holds true for the adjusted EPS growth at constant currencies, where we continue to expect an increase in the low- to high-single-digit percentage range.

Speaker #3: And Marco will elaborate now in more detail on our updated outlook in his part of the presentation. And with this, let me hand over to Marco, who will lead you now through the key financials of half year one.

Carsten Knobel: Marco will elaborate now in more detail on our updated outlook in his part of the presentation. With this, let me hand over to Marco, who will lead you now through the key financials of the H1. Marco, please.

Speaker #3: Marco, please.

Speaker #1: Yeah, thanks, Carsten, and good morning to everybody on the call, also from my side. And building on what Carsten already shared, let me provide some more color on the Group sales performance in the first six months of 2026.

Marco Swoboda: Yeah. Thanks, Carsten. Good morning to everybody in the call also from my side. Building on what Carsten already shared, let me provide some more color on the group sales performance in the H1 2026. We delivered strong organic sales growth of 3.2%. Pricing contributed with 1.1%, while volume showed a positive development of 2.1%. Overall, acquisitions and investments had a slightly positive effect of 0.2%. While the divestment of our retailer brands business in North America in April last year had a negative impact, the acquisitions closed in the H1 2026 in both business units, most notably ATP Adhesive Systems and Not Your Mother's in our consumer business, had a positive impact on sales. The foreign exchange impact was almost -4%, but moderated sequentially in Q2 versus Q1. The development reflects in particular the weakened US dollar and related currencies.

Speaker #1: We delivered strong organic sales growth of 3.2%. Pricing contributed 1.1%, while volumes showed a positive development of 2.1%. Overall, acquisitions and investments had a slightly positive effect of 0.2%.

Speaker #1: While the divestment of our retailer brands business in North America in April last year had a negative impact, the acquisitions closed in the first half of 2026 in both business units—most notably ATP Adhesive Systems and Not Your Mother's in our Consumer business—had a positive impact on sales.

Marco Swoboda: While the divestment of our retailer brands business in North America in April last year had a negative impact, the acquisitions closed in the H1 2026 in both business units, most notably ATP Adhesive Systems and Not Your Mother's in our consumer business, had a positive impact on sales. The foreign exchange impact was almost -4%, but moderated sequentially in Q2 versus Q1. The development reflects in particular the weakened US dollar and related currencies. In nominal terms, sales amounted to EUR 10.3 billion, hence 0.5% below prior year.

Speaker #1: The foreign exchange impact was almost minus 4%, but moderated sequentially in Q2 versus Q1. The development reflects, in particular, the weakened US dollar and related currencies.

Speaker #1: In nominal terms, sales amounted to €10.3 billion, hence 0.5% below the prior year. Now, turning to the drivers in the respective regions in more detail.

Marco Swoboda: In nominal terms, sales amounted to EUR 10.3 billion, hence 0.5% below prior year. Now turning to the drivers in the respective regions in more detail. Starting with Europe, sales were below the prior year level, but showed a clear acceleration in the Q2, returning to positive growth. In Adhesive Technologies, the very strong growth in industrials was more than offset by adverse developments in automotive Packaging and Consumer Goods and Craftsmen, Construction and Professional. In Consumer Brands, particularly Laundry & Home Care continued to face a challenging environment, while Hair remained stable. North America recorded good organic sales growth of 2.4%. This was driven by strong organic sales growth in Adhesive Technologies, supported by all business areas, with growth in industrials standing out. Consumer Brands achieved positive organic sales growth driven by strong growth in Hair, while Laundry & Home Care was slightly negative.

Marco Swoboda: Now turning to the drivers in the respective regions in more detail. Starting with Europe, sales were below the prior year level, but showed a clear acceleration in the Q2, returning to positive growth. In Adhesive Technologies, the very strong growth in industrials was more than offset by adverse developments in automotive Packaging and Consumer Goods and Craftsmen, Construction and Professional.

Speaker #1: Starting with Europe, sales were below the prior year level but showed a clear acceleration in the second quarter, returning to positive growth. In Adhesive Technologies, very strong growth in Industrials was more than offset by adverse developments in Automotive, Packaging and Consumer Goods, and Craftsman, Construction and Professional.

Speaker #1: In Consumer Brands, particularly, Laundry and Home Care continued to face a challenging environment, while Hair remained stable. North America recorded good organic sales growth of 2.4%.

Marco Swoboda: In Consumer Brands, particularly Laundry & Home Care continued to face a challenging environment, while Hair remained stable. North America recorded good organic sales growth of 2.4%. This was driven by strong organic sales growth in Adhesive Technologies, supported by all business areas, with growth in industrials standing out. Consumer Brands achieved positive organic sales growth driven by strong growth in Hair, while Laundry & Home Care was slightly negative. Going forward, the recent acquisitions will further strengthen our footprint and enhance scale in this important market.

Speaker #1: This was driven by strong organic sales growth in Adhesive Technologies, supported by all business areas, with growth in Industrials standing out. Consumer Brands achieved positive organic sales growth, driven by strong growth in Hair, while Laundry & Home Care was slightly negative.

Speaker #1: Going forward, the recent acquisitions will further strengthen our footprint and enhance scale in this important market. Moving on to Asia-Pacific, organic sales growth came in at 10.3%, supported by both business units.

Marco Swoboda: Going forward, the recent acquisitions will further strengthen our footprint and enhance scale in this important market. Moving on to Asia Pacific. Organic sales growth came in at 10.3%, supported by both business units. Double-digit growth in Adhesive Technologies was again driven first and foremost by electronics and industrials. Packaging and Consumer Goods also contributed significantly. Consumer Brands achieved very strong growth led by significant growth in Hair, while Laundry & Home Care was slightly negative. EMEA also showed double-digit growth of 14.9%, which was supported by both business units despite continued geopolitical volatility. Finally, sales in Latin America were below the prior year level. Similar to Europe, growth accelerated in the Q2 and returned to positive territory in both business units.

Marco Swoboda: Moving on to Asia Pacific. Organic sales growth came in at 10.3%, supported by both business units. Double-digit growth in Adhesive Technologies was again driven first and foremost by electronics and industrials. Packaging and Consumer Goods also contributed significantly. Consumer Brands achieved very strong growth led by significant growth in Hair, while Laundry & Home Care was slightly negative. EMEA also showed double-digit growth of 14.9%, which was supported by both business units despite continued geopolitical volatility.

Speaker #1: Double-digit growth in Adhesive Technologies was again driven, first and foremost, by Electronics and Industrials. Packaging and Consumer Goods also contributed significantly. Consumer Brands achieved very strong growth, led by significant growth in Hair, while Laundry and Home Care was slightly negative.

Speaker #1: IMEA also showed double-digit growth of 14.9%, which was supported by both business units despite continued geopolitical volatility. Finally, sales in Latin America were below the prior-year level.

Marco Swoboda: Finally, sales in Latin America were below the prior year level. Similar to Europe, growth accelerated in the Q2 and returned to positive territory in both business units. While the development in Adhesive Technologies was impacted by negative effects from tariffs on value chains and demand, Consumer Brands showed positive growth in H1 of the year. Now back to the global level and turning to Adhesive Technologies. In H1, we achieved sales of EUR 5.5 billion with organic sales growth of 4.5%. The adjusted EBIT margin increased to a level of 17.7% in H1 of 2026.

Speaker #1: Similar to Europe, growth accelerated in the second quarter and returned to positive territory in both business units. While the development in Adhesive Technologies was impacted by negative effects from tariffs on value chains and demand, Consumer Brands showed positive growth in the first half of the year.

Marco Swoboda: While the development in Adhesive Technologies was impacted by negative effects from tariffs on value chains and demand, Consumer Brands showed positive growth in H1 of the year. Now back to the global level and turning to Adhesive Technologies. In H1, we achieved sales of EUR 5.5 billion with organic sales growth of 4.5%. The adjusted EBIT margin increased to a level of 17.7% in H1 of 2026. Overall, Adhesive Technologies delivered a very strong top-line development in H1, driven by sequential acceleration of both price and volume. Pricing was positive, with 1.8% also reflecting the swift execution of pricing initiatives as a reaction to the significant raw material price headwinds. This was possible due to the strength of our market position and portfolio.

Speaker #1: Now back to the global level and turning to Adhesive Technologies. In the first half, we achieved sales of €5.5 billion with organic sales growth of 4.5%.

Speaker #1: The adjusted EBIT margin increased to a level of 17.7% in the first half of 2026. Overall, Adhesive Technologies delivered a very strong top-line development in the first half, driven by sequential acceleration of both price and volume.

Marco Swoboda: Overall, Adhesive Technologies delivered a very strong top-line development in H1, driven by sequential acceleration of both price and volume. Pricing was positive, with 1.8% also reflecting the swift execution of pricing initiatives as a reaction to the significant raw material price headwinds. This was possible due to the strength of our market position and portfolio. The strong volume development of 2.8% in H1 was particularly driven by a clear volume expansion in our electronics and industrial businesses.

Speaker #1: Pricing was positive, with 1.8% also reflecting the swift execution of pricing initiatives as a reaction to the significant raw material price headwinds. This was possible due to the strength of our market position and portfolio.

Speaker #1: The strong volume development of 2.8% in H1 was particularly driven by a clear volume expansion in our Electronics and Industrial businesses. Furthermore, the development was also supported by positive working day impact, which accounted for around 150 basis points in Q2, and forward buying, mainly in Packaging and Consumer Goods.

Marco Swoboda: The strong volume development of 2.8% in H1 was particularly driven by a clear volume expansion in our electronics and industrial businesses. Furthermore, the development was also supported by a positive working day impact, which accounted for around 150 basis points in Q2 and forward buying mainly in Packaging and Consumer Goods. The adjusted EBIT margin continued to be strong year-over-year, driven by operating leverage and a positive mix. Mobility & Electronics achieved 7.8% organic sales growth in H1, despite already high comparables. The strong increase was driven by double-digit growth in electronics and significant growth in industrials. In H1, automotive came in below prior year but showed a clear sequential improvement and even returned to positive territory in Q2. This is also reflected in the most recent LVP development. Packaging and Consumer Goods recorded very strong growth of 4.7% in H1.

Marco Swoboda: Furthermore, the development was also supported by a positive working day impact, which accounted for around 150 basis points in Q2 and forward buying mainly in Packaging and Consumer Goods. The adjusted EBIT margin continued to be strong year-over-year, driven by operating leverage and a positive mix. Mobility & Electronics achieved 7.8% organic sales growth in H1, despite already high comparables.

Speaker #1: The adjusted EBIT margin continued to be strong year-over-year, driven by operating leverage and a positive mix. Mobility and Electronics achieved 7.8% organic sales growth in the first half, despite already high comparables.

Speaker #1: The strong increase was driven by double-digit growth in Electronics and significant growth in Industrials. In H1, Automotive came in below prior year but showed a clear sequential improvement and even returned to positive territory in Q2.

Marco Swoboda: The strong increase was driven by double-digit growth in electronics and significant growth in industrials. In H1, automotive came in below prior year but showed a clear sequential improvement and even returned to positive territory in Q2. This is also reflected in the most recent LVP development. Packaging and Consumer Goods recorded very strong growth of 4.7% in H1. Consumer Goods achieved very strong growth, and Packaging showed strong growth, particularly driven by sequential acceleration in Q2, also supported by resilient demand across key end markets and continued forward buying.

Speaker #1: This was also reflected in the most recent LVP development. Packaging and consumer goods recorded very strong growth of 4.7% in the first half. Consumer goods achieved very strong growth and packaging showed strong growth, particularly driven by sequential acceleration in the second quarter, also supported by resilient demand across key end markets and continued forward buying.

Marco Swoboda: Consumer Goods achieved very strong growth, and Packaging showed strong growth, particularly driven by sequential acceleration in Q2, also supported by resilient demand across key end markets and continued forward buying. Finally, Craftsmen, Construction and Professional delivered positive organic sales growth of 1%. While Manufacturing and Maintenance showed strong growth, Consumer and Construction was slightly below prior year, also impacted by seasonal weather effects, which weighed on construction activity in Eastern Europe in Q1. Turning to Consumer Brands, the business generated sales of EUR 4.7 billion in H1, with good organic sales growth of 1.7%. The adjusted EBIT margin came in at 15.3% and thus was on prior year level. In H1, Consumer Brands delivered good organic sales growth with both a positive price and volume development of 0.3% and 1.4% respectively. With this, we achieved positive volumes for four consecutive quarters.

Speaker #1: Finally, Craftsman Construction and Professional delivered positive, organic sales growth of 1%. While Manufacturing and Maintenance showed strong growth, Consumer and Construction was slightly below the prior year, also impacted by seasonal weather effects, which weighed on construction activity in Eastern Europe in the first quarter.

Marco Swoboda: Finally, Craftsmen, Construction and Professional delivered positive organic sales growth of 1%. While Manufacturing and Maintenance showed strong growth, Consumer and Construction was slightly below prior year, also impacted by seasonal weather effects, which weighed on construction activity in Eastern Europe in Q1. Turning to Consumer Brands, the business generated sales of EUR 4.7 billion in H1, with good organic sales growth of 1.7%. The adjusted EBIT margin came in at 15.3% and thus was on prior year level.

Speaker #1: Turning to Consumer Brands, the business generated sales of €4.7 billion in the first half, with good organic sales growth of 1.7%. The adjusted EBIT margin came in at 15.3% and thus was on prior-year level.

Speaker #1: In the first half, consumer brands delivered good organic sales growth, with both a positive price and volume development of 0.3% and 1.4%, respectively. With this, we achieved positive volumes for four consecutive quarters.

Marco Swoboda: In H1, Consumer Brands delivered good organic sales growth with both a positive price and volume development of 0.3% and 1.4% respectively. With this, we achieved positive volumes for four consecutive quarters. Hair continued a very strong growth trajectory, with organic sales growth of more than 4%. Laundry Care is back to positive growth with a clear acceleration in Q2. The adjusted EBIT margin sustained on strong previous year levels despite the overall competitive environment, and of course, while keeping up with our elevated investment levels in our brands.

Speaker #1: Hair continued a very strong growth trajectory, with organic sales growth of more than 4%. Laundry Care is back to positive growth, with a clear acceleration in the second quarter.

Marco Swoboda: Hair continued a very strong growth trajectory, with organic sales growth of more than 4%. Laundry Care is back to positive growth with a clear acceleration in Q2. The adjusted EBIT margin sustained on strong previous year levels despite the overall competitive environment, and of course, while keeping up with our elevated investment levels in our brands. Now turning to the performance by business area in Consumer Brands. Laundry & Home Care recorded positive organic sales growth of 0.7%. In Home Care, we saw good organic sales growth, which was primarily driven by double-digit growth in hand dishwasher. Encouraging to see that Laundry Care is back to positive growth with a clear acceleration in Q2, mainly driven by high single-digit growth in fabric care, supported by strong performance of our top brand, Perwoll.

Speaker #1: The adjusted EBIT margin was sustained at the strong previous-year level, despite the overall competitive environment and, of course, while keeping up with our elevated investment levels in our brands.

Speaker #1: Now turning to the performance by business area in Consumer Brands. Laundry and Home Care recorded positive organic sales growth of 0.7%. In Home Care, we saw good organic sales growth, which was primarily driven by double-digit growth in enhanced dishwasher.

Marco Swoboda: Now turning to the performance by business area in Consumer Brands. Laundry & Home Care recorded positive organic sales growth of 0.7%. In Home Care, we saw good organic sales growth, which was primarily driven by double-digit growth in hand dishwasher. Encouraging to see that Laundry Care is back to positive growth with a clear acceleration in Q2, mainly driven by high single-digit growth in fabric care, supported by strong performance of our top brand, Perwoll.

Speaker #1: It is encouraging to see that laundry care is back to positive growth, with a clear acceleration in Q2, mainly driven by high single-digit growth in fabric care, supported by strong performance of our top brand, Pavos.

Speaker #1: Hair achieved 4.2% organic sales growth, driven by an almost balanced contribution from both the consumer and the professional business, with styling being the strongest contributor.

Marco Swoboda: hair achieved 4.2% organic sales growth, driven by an almost balanced contribution from both the consumer and the professional business, with styling being the strongest contributor. Finally, organic sales growth in our other consumer businesses was below prior year, mainly due to body care in Europe, while North America reported good growth. Coming back to the group level again, I would like to share some details on the adjusted income statements. We increased our adjusted gross profit by 40 basis points, now reaching 51.7%, mainly driven by an increase in Adhesive Technologies. Marketing, selling, and distribution expenses, as well as R&D and admin expenses in relation to sales, remained more or less on prior year levels. Other operating income and expenses had a rather neutral impact as a percentage of sales. As a result, the adjusted EBIT margin slightly increased, reaching now 15.7%.

Marco Swoboda: Hair achieved 4.2% organic sales growth, driven by an almost balanced contribution from both the consumer and the professional business, with styling being the strongest contributor. Finally, organic sales growth in our other consumer businesses was below prior year, mainly due to body care in Europe, while North America reported good growth. Coming back to the group level again, I would like to share some details on the adjusted income statements. We increased our adjusted gross profit by 40 basis points, now reaching 51.7%, mainly driven by an increase in Adhesive Technologies.

Speaker #1: And finally, organic sales growth in our other consumer businesses was below the prior year, mainly due to body care in Europe, while North America reported good growth.

Speaker #1: Coming back to the group level again, I would like to share some details on the adjusted income statements. We increased our adjusted gross profit by 40 basis points, now reaching 51.7%, mainly driven by an increase in Adhesive Technologies.

Speaker #1: Marketing, selling, and distribution expenses as well as R&D and admin expenses in relation to sales remained more or less at prior-year levels. Other operating income and expenses had a rather neutral impact as a percentage of sales.

Marco Swoboda: Marketing, selling, and distribution expenses, as well as R&D and admin expenses in relation to sales, remained more or less on prior year levels. Other operating income and expenses had a rather neutral impact as a percentage of sales. As a result, the adjusted EBIT margin slightly increased, reaching now 15.7%. Moving on to the bridge from reported to adjusted EBIT. At EUR 1.4 billion, reported EBIT was below the previous year level. One-time expenses of EUR 68 million were mainly related to transaction costs associated with recent acquisitions.

Speaker #1: And as a result, the adjusted EBIT margin slightly increased, reaching now 15.7%. Moving on to the bridge from reported to adjusted EBIT—at €1.4 billion, reported EBIT was below the previous year level.

Marco Swoboda: Moving on to the bridge from reported to adjusted EBIT. At EUR 1.4 billion, reported EBIT was below the previous year level. One-time expenses of EUR 68 million were mainly related to transaction costs associated with recent acquisitions. Restructuring charges amounted to EUR 128 million, with the majority related to the continuous transformation of our production and logistics footprint, as well as the go-to-market models. As a result, adjusted EBIT came in at EUR 1.6 billion and was thus slightly above prior year level, despite negative FX effects. Now taking a closer look at the bridge leading to our adjusted EPS. The adjusted financial result amounted to EUR -54 million, reflecting a high leverage due to the recent acquisitions and the completion of our share buyback program. The adjusted tax rate stood at 25.5% and thus in line with the prior year. Finally, adjusted net income after minorities came in at EUR 1.2 billion.

Speaker #1: One-time expenses of €68 million were mainly related to transaction costs associated with recent acquisitions. Restructuring charges amounted to €128 million, with the majority related to the continuous transformation of our production and logistics footprint, as well as the go-to-market models.

Marco Swoboda: Restructuring charges amounted to EUR 128 million, with the majority related to the continuous transformation of our production and logistics footprint, as well as the go-to-market models. As a result, adjusted EBIT came in at EUR 1.6 billion and was thus slightly above prior year level, despite negative FX effects. Now taking a closer look at the bridge leading to our adjusted EPS. The adjusted financial result amounted to EUR -54 million, reflecting a high leverage due to the recent acquisitions and the completion of our share buyback program.

Speaker #1: As a result, adjusted EBIT came in at €1.6 billion and was thus slightly above the prior year level despite negative FX effects. And now, taking a closer look at the bridge leading to our adjusted EPS.

Speaker #1: The adjusted financial result amounted to minus €54 million, reflecting high leverage due to the recent acquisitions and the completion of our share buyback program.

Speaker #1: The adjusted tax rate was 25.5%, and thus in line with the prior year. Finally, adjusted net income after minorities came in at €1.2 billion.

Marco Swoboda: The adjusted tax rate stood at 25.5% and thus in line with the prior year. Finally, adjusted net income after minorities came in at EUR 1.2 billion. This translates into adjusted earnings per preferred share of EUR 2.86, representing an increase at constant currencies of 7%. On to our cash KPIs. Here, net working capital in percent of sales increased by 100 basis points to 7%, also due to the recent acquisitions across both business units. Free cash flow came in at around EUR 600 million, representing an increase of around EUR 130 million versus prior year, mainly driven by higher operating cash flow.

Speaker #1: And this translates into adjusted earnings per preferred share of €2.86, representing an increase at constant currencies of 7%. On to our cash KPIs.

Marco Swoboda: This translates into adjusted earnings per preferred share of EUR 2.86, representing an increase at constant currencies of 7%. On to our cash KPIs. Here, net working capital in percent of sales increased by 100 basis points to 7%, also due to the recent acquisitions across both business units. Free cash flow came in at around EUR 600 million, representing an increase of around EUR 130 million versus prior year, mainly driven by higher operating cash flow. Our net financial position came in at EUR -1.9 billion, again, mainly reflecting cash outflows for the recently closed acquisitions as well as for our share buyback program. As Carsten already mentioned earlier, we made significant progress in executing our M&A growth strategy during H1 2026, which is an integral pillar of our overall growth agenda.

Speaker #1: Year net working capital in percent of sales increased by 100 basis points to 7%, also due to the recent acquisitions across both business units.

Speaker #1: Free cash flow came in at around €600 million, representing an increase of around €130 million versus the prior year, mainly driven by higher operating cash flow.

Speaker #1: Our net financial position came in at minus €1.9 billion, again mainly reflecting cash outflows for the recently closed acquisitions as well as for our share buyback program.

Marco Swoboda: Our net financial position came in at EUR -1.9 billion, again, mainly reflecting cash outflows for the recently closed acquisitions as well as for our share buyback program. As Carsten already mentioned earlier, we made significant progress in executing our M&A growth strategy during H1 2026, which is an integral pillar of our overall growth agenda. We expect the recently acquired businesses to make an initial positive contribution to both sales and earnings already in the current fiscal year. In 2026, the acquired companies are expected to contribute EUR 700 million in sales.

Speaker #1: As Carsten already mentioned earlier, we made significant progress in executing our M&A growth strategy during the first half of 2026, which is an integral pillar of our overall growth agenda.

Speaker #1: We expect the recently acquired businesses to make an initial positive contribution to both sales and earnings already in the current fiscal year. In 2026, the acquired companies are expected to contribute €700 million in sales.

Marco Swoboda: We expect the recently acquired businesses to make an initial positive contribution to both sales and earnings already in the current fiscal year. In 2026, the acquired companies are expected to contribute EUR 700 million in sales. In total, we acquired sales of EUR 1.6 billion on a pro forma basis 2025, supported by future mid to high single organic sales growth, which is clearly above average. The combined sales of the five acquisitions are expected to increase to EUR 2 billion by 2030. From an earnings perspective, we expect the acquisitions to already contribute in 2026 by roughly 1%, already considering financing and integration costs as well as purchase price allocation effects. Going forward, we expect a further ramp up to at least 10% when it comes to adjusted earnings per preferred share by 2030. I would like to conclude this chapter with our updated outlook for fiscal 2026.

Speaker #1: In total, we acquired sales of €1.6 billion on a proforma basis for 2025. Supported by future mid- to high-single-digit organic sales growth, which is clearly above average, the combined sales of the five acquisitions are expected to increase to €2 billion by 2030.

Marco Swoboda: In total, we acquired sales of EUR 1.6 billion on a pro forma basis 2025, supported by future mid to high single organic sales growth, which is clearly above average. The combined sales of the five acquisitions are expected to increase to EUR 2 billion by 2030. From an earnings perspective, we expect the acquisitions to already contribute in 2026 by roughly 1%, already considering financing and integration costs as well as purchase price allocation effects. Going forward, we expect a further ramp up to at least 10% when it comes to adjusted earnings per preferred share by 2030.

Speaker #1: From an earnings perspective, we expect the acquisitions to already contribute in 2026 by roughly 1%, already considering financing and integration costs as well as purchase price allocation effects.

Speaker #1: Going forward, we expect a further ramp-up to at least 10% when it comes to adjusted earnings per preferred share by 2030. I would like to conclude this chapter with our updated outlook for fiscal 2026.

Marco Swoboda: I would like to conclude this chapter with our updated outlook for fiscal 2026. As Carsten already pointed out, we upgraded our top-line expectations for both the group and Adhesive Technologies on the back of a strong H1 performance. For the group, we now expect organic sales growth to come in between 1.5% and 3.5%. For Adhesive Technologies, we now expect a higher organic sales growth of 2% to 4%. This guidance range is also a reflection of a more normalized growth profile in the H2, as well as the absence of a working day benefit and no further significant forward buying.

Speaker #1: As Carsten already pointed out, we upgraded our top-line expectations for both the Group and Adhesive Technologies on the back of a strong H1 performance.

Marco Swoboda: As Carsten already pointed out, we upgraded our top-line expectations for both the group and Adhesive Technologies on the back of a strong H1 performance. For the group, we now expect organic sales growth to come in between 1.5% and 3.5%. For Adhesive Technologies, we now expect a higher organic sales growth of 2% to 4%. This guidance range is also a reflection of a more normalized growth profile in the H2, as well as the absence of a working day benefit and no further significant forward buying. Organic sales growth expectations for Consumer Brands remain unchanged, reflecting the continued market volatility and tougher prior year comparables. The full-year outlook for the adjusted EBIT margin and adjusted EPS growth at constant currencies remain unchanged.

Speaker #1: For the group, we now expect organic sales growth to come in between one and a half and three and a half percent. For adhesive technologies, we now expect a higher organic sales growth of 2 to 4%.

Speaker #1: This guidance range is also a reflection of a more normalized growth profile in the second half, as well as the absence of a working day benefit and no further significant forward buying.

Speaker #1: Our organic sales growth expectations for Consumer Brands remain unchanged, reflecting continued market volatility and tougher prior-year comparables. Also, the full-year outlook for the adjusted EBIT margin and adjusted EPS growth at constant currencies remains unchanged.

Marco Swoboda: Organic sales growth expectations for Consumer Brands remain unchanged, reflecting the continued market volatility and tougher prior year comparables. The full-year outlook for the adjusted EBIT margin and adjusted EPS growth at constant currencies remain unchanged. Turning to adjusted EBIT margins, in line with previous communication, we expect softer margins in the H2 versus H1 for the group and both business units, particularly due to more pronounced raw material price headwinds in the H2 of the year.

Speaker #1: And turning to adjusted EBIT margins, in line with previous communication, we expect softer margins in the second half versus the first half for the Group and both business units, particularly due to a more pronounced raw material price headwind in the second half of the year.

Marco Swoboda: Turning to adjusted EBIT margins, in line with previous communication, we expect softer margins in the H2 versus H1 for the group and both business units, particularly due to more pronounced raw material price headwinds in the H2 of the year. However, this shouldn't come as a surprise, and taking a look at current consensus levels, it seems analyst estimates are already reflecting this development. With that, back to you, Carsten.

Speaker #1: However, this shouldn't come as a surprise, and taking a look at current consensus levels, it seems analysts' estimates are already reflecting this development. And with that, back to you, Carsten.

Marco Swoboda: However, this shouldn't come as a surprise, and taking a look at current consensus levels, it seems analyst estimates are already reflecting this development. With that, back to you, Carsten.

Speaker #2: Thank you, Marco. So, let me wrap up today's presentation. First of all, we delivered strong organic net sales growth of more than 3% on group level, driven by both positive price and volume development—important in both business units—with a clear sequential acceleration in Q2 versus Q1.

Carsten Knobel: Thank you, Marco. Let me wrap up today's presentation. First of all, we delivered strong organic net sales growth of more than 3% on group level, driven by both positive price and volume development important in both business units, with a clear sequential acceleration in Q2 versus Q1. We also delivered a strong adjusted EBIT margin development also here supported by both business units. Second, we are successfully delivering on our M&A growth strategy in both business units by adding highly attractive assets. Overall, we expect first positive contributions from the acquisitions on both top and bottom line in fiscal 2026. Finally, turning to our updated full year guidance 2026, we upgraded our top-line expectations for the group and Adhesive Technologies on the back of the strong H1 performance.

Speaker #2: We also delivered a strong adjusted EBIT margin development, also here supported by both business units. Second, we are successfully delivering on our M&A growth strategy in both business units by adding highly attractive assets. Overall, we expect first positive contributions from the acquisitions on both top and bottom line in fiscal 2026.

Carsten Knobel: Overall, we expect first positive contributions from the acquisitions on both top and bottom line in fiscal 2026. Finally, turning to our updated full year guidance 2026, we upgraded our top-line expectations for the group and Adhesive Technologies on the back of the strong H1 performance. Overall, our strong business performance demonstrates that we have a clear strategy with our purposeful growth agenda, the right priorities, and that we are able to accelerate the execution of our M&A growth strategy, thereby clearly strengthening our long-term competitiveness and the position for future success.

Speaker #2: And finally, turning to our updated full-year guidance for 2026, we upgraded our top-line expectations for the Group and Adhesive Technologies on the back of the strong H1 performance.

Speaker #2: And overall, our strong business performance demonstrates that we have a clear strategy with our purposeful growth agenda the right priorities and that we are able to accelerate the execution of our M&A growth strategy thereby clearly strengthening our long-term competitiveness and the position for future success.

Carsten Knobel: Overall, our strong business performance demonstrates that we have a clear strategy with our purposeful growth agenda, the right priorities, and that we are able to accelerate the execution of our M&A growth strategy, thereby clearly strengthening our long-term competitiveness and the position for future success. With that, we would like to thank you for your attention, and we are now moving to take your questions.

Speaker #2: With that, we would like to thank you for your attention, and we will now move on to take your questions.

Carsten Knobel: With that, we would like to thank you for your attention, and we are now moving to take your questions.

Speaker #1: Thank you, Mr. Knobel. Ladies and gentlemen, the question-and-answer session will be conducted electronically. If you would like to ask a question, please press star and one on your telephone keypad.

Operator: Thank you, Mr. Knobel. Ladies and gentlemen, the question and answer session will be conducted electronically. If you would like to ask a question, please press star and one on your telephone keypad. If you change your mind about asking a question, please press star and two on your touchtone keypad. We will take questions in the order received, and we will take as many as time permits. Please limit your question to one question at a time to allow everyone to ask a question. The first question comes from Guillaume Delmas from UBS. Please go ahead.

Speaker #1: If you change your mind about asking a question, please press star and two on your touchtone keypad. We will take questions in the order received, and we will take as many as time permits.

Speaker #1: Please limit your questions to one at a time to allow everyone the opportunity to participate. The first question comes from Guillaume Delmas from UBS.

Speaker #1: Please go ahead.

Speaker #3: Thank you very much. Good morning, Carsten, Marco, and Leslie. So, my one question will then be on direct materials guidance, because you left it unchanged. You're still expecting a high single-digit percentage increase?

Guillaume Delmas: Thank you very much. Good morning, Carsten, Marco, and Leslie. My one question will be on the direct materials guidance. You left it unchanged, you are still expecting high single-digit % increase, despite the fact that oil price has come down quite significantly since you published your Q1 trending update in May. Question is, why no change to the guidance? Could lower oil prices prompt some downward price adjustments in adhesives? Maybe, you are rolling back some prices in the H2. If we were to assume that oil stays at current levels until the end of the year, would you be more likely to hit the top end of your margin guidance? Thank you very much.

Speaker #3: Despite the fact that the oil price has come down quite significantly since you published your Q1 trading update in May, my question is—why is there no change to the guidance?

Speaker #3: Could lower oil prices prompt some downward price adjustments in adhesives, so maybe you run back some prices in the back half? And if we were to assume that oil stays at current levels until the end of the year, would you be more likely to hit the top end of your margin guidance?

Guillaume Delmas: Maybe, you are rolling back some prices in the H2. If we were to assume that oil stays at current levels until the end of the year, would you be more likely to hit the top end of your margin guidance? Thank you very much.

Speaker #3: Thank you very much.

Carsten Knobel: Guillaume, I think that is a question Marco will take. Marco?

Speaker #2: Guillaume, I think that is a question Marco will take. Marco?

Speaker #4: Yeah, good morning, Guillaume, also from my side. I mean, yes, short-term oil price has come down, but before I go into further details, it’s very clear that it is highly volatile. When I remember, basically going mid-July into my vacation, oil price came down, and just a week later, the whole situation in the Middle East already escalated again.

Marco Swoboda: Good morning, Guillaume, also from my side. Short-term oil price has come down, but before I go into further details, very clear it's still highly volatile. When I remember when basically going middle of July into my vacation, oil price came down, and then just a week later, the whole situation in the Middle East already escalated again, oil going up significantly. Volatility is out, and that is what we have to be aware. Also what is important, we did already assume some sort of reduction of oil prices in the H2. We did not assume that level that we had when we had our Q1 call to sustain until end of the year. That was always baked into our guidance range. So far, we see that more confirmed, but we need to see what comes.

Speaker #4: Oil going up significantly. So volatility is out and that is what we have to be aware. And also what is important, we did already assume some sort of reduction of oil prices in the second half.

Speaker #4: So we did not assume that the level we had when we had our Q1 call would be sustained until the end of the year. So that was always baked into our guidance range.

Marco Swoboda: That was always baked into our guidance range. So far, we see that more confirmed, but we need to see what comes. Second also, we noted before there is a time lag between oil prices moving and our input material costs really moving. That has to eat through the value chain. That will take some time, even if that oil price remains on a lower level, that really arrives at our P&L side. That's what we all baked into the guidance. That's why we didn't see any reason why now to change it. At the moment, we see that still being valid.

Speaker #4: So far, we see that more is confirmed, but we need to see what comes. And then, second, as we noted before, there is a time lag between oil prices moving and our input material costs really moving.

Marco Swoboda: Second also, we noted before there is a time lag between oil prices moving and our input material costs really moving. That has to eat through the value chain. That will take some time, even if that oil price remains on a lower level, that really arrives at our P&L side. That's what we all baked into the guidance. That's why we didn't see any reason why now to change it. At the moment, we see that still being valid.

Speaker #4: So, that has to eat through the value chain. So that will take some time, even if that oil price remains at a lower level, for that to really arrive on our P&L side.

Speaker #4: And that's what we all baked into the guidance and that's why we didn't see any reason why now to change it at the moment we see that still being valid.

Carsten Knobel: Guillaume, I think not directly asked, but the end of your question was related to our margin guidance. I think we have set out at the beginning of the year with 14.5% to 16% quite, I would say, ambitious guidance in the context in which we are operating. On top of the consensus, which is out already, is reflecting also all of that. Therefore, I think at this point, no need to change the guidance. Hope that helped.

Speaker #2: And Guillaume, I think not directly asked, but the end of your question was related to our margin guidance. And I think we have set out at the beginning of the year with 14.5% to 16%, quite, yeah, I would say, ambitious guidance in the context in which we are operating.

Speaker #2: And on top of that, the consensus, which is out already, is also reflecting all of that. Therefore, I think at this point there is no need to change the guidance.

Speaker #2: Hope that helps.

Speaker #3: Very clear. Thank you.

Guillaume Delmas: Very clear. Thank you.

Speaker #2: You're welcome.

Carsten Knobel: You're welcome.

Speaker #1: The next question comes from Olivier Nicolai from Goldman Sachs. Please go ahead.

Operator: The next question comes from Olivier Nicolai from Goldman Sachs. Please go ahead.

Speaker #4: Hi, good morning, Carsten, Marco, and Leslie. First of all, you mentioned the pre-buying in H1 in the presentation. I was just wondering if you could quantify the impact seen in Q2 and which part of Adhesive benefited the most from it.

Olivier Nicolai: Hi. Good morning, Carsten, Marco, and Leslie. First of all, you mentioned the pre-buying in H1 in the presentation. I was just wondering if you could quantify the impact seen in Q2 and which part of Adhesive Technologies benefited the most from it. If I may, just on Laundry & Home Care, it has accelerated in Q2. The sellout data, however, is still pointing out to share losses in the US and Europe. What actions are you taking to improve the relative performance in these markets, and how do you see the current promotional environment? Thank you very much.

Olivier Nicolaï: Hi. Good morning, Carsten, Marco, and Leslie. First of all, you mentioned the pre-buying in H1 in the presentation. I was just wondering if you could quantify the impact seen in Q2 and which part of Adhesive Technologies benefited the most from it. If I may, just on Laundry & Home Care, it has accelerated in Q2. The sellout data, however, is still pointing out to share losses in the US and Europe. What actions are you taking to improve the relative performance in these markets, and how do you see the current promotional environment? Thank you very much.

Speaker #4: And then, if I may, just on Laundry—it has accelerated in Q2. The sell-out data, whether it's still pointing out to share losses in the US and Europe?

Speaker #4: So, what actions are you taking to improve the relative performance in these markets, and how do you see the current promotional environment? Thank you very much.

Speaker #2: Morning, Olivier. So to your first question, in terms of the effects, I think Marco was already pointing that out partly. We have two effects which we have been calling out.

Carsten Knobel: Good morning, Olivier. To your first question in terms of the effects, I think Marco was already pointing that out partly. We have two effects which we have been calling out. That is, one, the working day impact, and it is also a kind of forward buying based on the situation, which especially happens in Q1, and also the geopolitical topics. If you try to bring that in a quantification, it is that the working day impact on H1 is roughly 70, 75 basis points for Adhesive Technologies, and the forward buying effect is for the H1 around 100 basis points. That is how the things are impacting. If you would, because I think your point was on Q2, if you take that on Q2, you know that we had an organic net sales growth of 7.4%.

Speaker #2: That is one—the working day impact—and it is also a kind of forward buying, based on the situation which especially happened in Q1, and also the geopolitical topics.

Speaker #2: And if you try to bring that in a quantification, it is that the working day impact on half year one is roughly 70, 75 basis points for adhesive technologies and the forward buying effect is for the half year around 100 basis points.

Speaker #2: So that is how things are impacting. And if you would—because I think your point was on Q2—if you take that on Q2, you know that we had an organic net sales growth of 7.4%.

Carsten Knobel: That is how the things are impacting. If you would, because I think your point was on Q2, if you take that on Q2, you know that we had an organic net sales growth of 7.4%. That would be roughly 5% if you would take these effects out, means the working day impact is roughly 150 basis points for the Q2 and is around 120 basis points for Q2 when it comes to that part. Nevertheless, if you think about 5%, that is a very strong performance despite these effects, and I think that is an absolute fantastic result in Q2 despite these effects.

Speaker #2: That would be roughly 5% if you would take these effects out. It means the working day impact is roughly 150 basis points for Q2, and is around 120 basis points for Q2 when it comes to that part.

Carsten Knobel: That would be roughly 5% if you would take these effects out, means the working day impact is roughly 150 basis points for the Q2 and is around 120 basis points for Q2 when it comes to that part. Nevertheless, if you think about 5%, that is a very strong performance despite these effects, and I think that is an absolute fantastic result in Q2 despite these effects. That's maybe on the first part, and I hope that answers your question on that. The second question was on the Laundry & Home Care part. Absolutely right. The situation is that we are faced within the Laundry & Home Care segment over the last couple of quarters with a more intense competitive, but also pressure in terms of organic net sales growth.

Speaker #2: And nevertheless, if you think about 5%, that is a very strong performance despite these effects. And I think that is an absolutely fantastic result in Q2 despite these effects.

Speaker #2: That's maybe on the first part, and I hope that answers your question on that. The second question was on the laundry part. Absolutely right—the situation is that we are faced within the laundry segment, over the last couple of quarters, with more intense competition but also pressure in terms of organic net sales growth. While Q1 was still negative, we have seen Q2 with positive growth development in terms of the organic net sales growth in laundry.

Carsten Knobel: That's maybe on the first part, and I hope that answers your question on that. The second question was on the Laundry & Home Care part. Absolutely right. The situation is that we are faced within the Laundry & Home Care segment over the last couple of quarters with a more intense competitive, but also pressure in terms of organic net sales growth. While Q1 was still negative, we have seen a Q2 with positive growth development in terms of the organic net sales growth in Laundry. It is also reflected that we have consistent marketing investments behind our activities.

Carsten Knobel: While Q1 was still negative, we have seen a Q2 with positive growth development in terms of the organic net sales growth in Laundry. It is also reflected that we have consistent marketing investments behind our activities. You also have heard me talking about our strategy that we are focusing on premium or premiumization of our brands. That was for Persil always existing, but over the last couple of years, we have been talking about that since the merger. We have been putting also Perwoll more and more on that premiumization part with also backed technology and reworked formulation and recipes, and I think that is paying off. You also see if you look at our top 10 brands, for sure Persil and Perwoll are part of that.

Speaker #2: And it is also reflected that we have consistent marketing investments behind our activities. You have also heard me talking about our strategy, that we are focusing on premium, or premiumization, of our brands.

Carsten Knobel: You also have heard me talking about our strategy that we are focusing on premium or premiumization of our brands. That was for Persil always existing, but over the last couple of years, we have been talking about that since the merger. We have been putting also Perwoll more and more on that premiumization part with also backed technology and reworked formulation and recipes, and I think that is paying off. You also see if you look at our top 10 brands, for sure Persil and Perwoll are part of that.

Speaker #2: That was for Persil always existing, but over the last couple of years we have been talking about that since the merger we have been putting also per wall more and more on that premiumization part with also backed technology and reworked formulation and recipes.

Speaker #2: And I think that is paying off. And you also see if you look at our top 10 brands, for sure Persil and Perwoll are part of that.

Speaker #2: I've been mentioning before that the top 10 brands have been with 60% share, but also with growth between 4 and 5% over the last couple of years and also in the first half.

Carsten Knobel: I've been mentioning before that the top 10 brands have been with 60% share, but also with growth between 4% and 5% over the last couple of years and also in H1. I think that's clearly pointing out that we are doing quite well on that. You also see that our gross margins are still on a very high level, which brings me to your promotional question. The promotional environment is, I would say, not significantly changed. With more or less unchanged promotional activity has been high now for quite some time, and we stick to our strategy to be prudent when it comes to promotions and not overdo it.

Speaker #2: So I think that's clearly pointing out that we are doing quite well on that. You also see that our gross margins are still at a very high level, which brings me to your promotional question.

Speaker #2: So, the promotional environment is, I would say, not significantly changed. So, with more or less unchanged promotional activity, it has been high now for quite some time.

Speaker #2: And we stick to our strategy to be prudent when it comes to promotions and not overdo it. And I think that is something which is related. If you now see the longer term, we have been improving the gross margins of HDB by more than 1,200 basis points over the last three years.

Carsten Knobel: I think that is something which is related if you now see the longer term, we have been improving the gross margins of HDB by more than 1,200 basis points over the last three years. One part of that is also for sure related to the promotional topics, and we don't want a high share of ranked volumes on that. Again, for the whole year, maybe, and that's the last statement on that, we see a positive territory of pricing and volume for the full year, which you also see reflected in the H1 results for sure more prominent with the volumes, but I think that's exactly our strategy after we have finalized our portfolio work, that volume should come back. We always said that, and I think we promised on that in that context. Hope that helps, Olivier.

Speaker #2: And one part of that is also for sure related to the promotional topics. And we don't want a high share of ranked values volumes on that.

Speaker #2: And again, for the whole year—maybe that's the last statement on that—we see positive territory for pricing and volume for the full year, which you also see reflected in the half-year results. For sure, it's more prominent with the volumes.

Carsten Knobel: Again, for the whole year, maybe, and that's the last statement on that, we see a positive territory of pricing and volume for the full year, which you also see reflected in the H1 results for sure more prominent with the volumes, but I think that's exactly our strategy after we have finalized our portfolio work, that volume should come back. We always said that, and I think we promised on that in that context. Hope that helps, Olivier.

Speaker #2: But I think that's exactly our strategy. After we have finalized our portfolio work, that volume should come back. We always said that, and I think we promised on that in that context.

Speaker #2: Hope that helps, Olivier.

Speaker #4: Absolutely. Thank you very much for the answer.

Olivier Nicolai: Absolutely. Thank you very much for the answer.

Olivier Nicolaï: Absolutely. Thank you very much for the answer.

Speaker #2: You're welcome.

Carsten Knobel: You're welcome.

Speaker #1: The next question comes from Christian, Said from Kepler Chevreux. Please go ahead.

Operator: The next question comes from Christian Faitz from Kepler Cheuvreux. Please go ahead.

Speaker #3: Yes, thanks. Good morning, Carsten, Marco, and Leslie and team. Here's my one question. So I guess it's for Marco. You have quite a few acquisitions on the table this year.

Christian Faitz: Yes, thanks. Good morning, Carsten, Marco, and Leslie, and team. Here's my one question. I guess it's for Marco. You have quite a few acquisitions on the table this year. How smoothly would you believe they can be integrated from a systems perspective? Have all of them or most of them already, or are they running on SAP S/4HANA, for example? Thanks very much.

Speaker #3: How smoothly would you believe there can be integrated from a systems perspective? Have all of them or most of them already or are they running on SAP S4, Hannah, for example?

Speaker #3: Thanks very much.

Carsten Knobel: Despite the fact that you said that Marco should answer that question, and I let Marco answer this question. One thing is also important, Christian, and that is more now branding strategy and business strategy. Not with all the acquisitions, we immediately believe they should be completely integrated. As an example, Not Your Mother's is a brand, is a business which has been growing significantly in the last couple of years, and we also would like sometimes to learn from acquisitions. In that context, for example, we will let Not Your Mother's, at least at the beginning, run quite independently. Therefore, it is not always all acquisitions fit one day. Your question was more related to the system part, and therefore I hand over to Marco. Good.

Speaker #2: Despite the fact that you said that Marco should answer that question, and I let Marco answer this question, one thing is also important, Christian, and that is more now branding strategy and business strategy.

Speaker #2: Not with all the acquisitions, we immediately believe they should be completely integrated. As an example, not your mothers is a brand is a business which has been growing significantly in the last couple of years and we also would like sometimes to learn from acquisitions.

Speaker #2: And in that context, for example, we will let not your models, at least at the beginning, run quite independently. So therefore, it is not always one acquisition or all acquisitions fit one day, but your question was more related to the system part, and herefore I hand over to Marco.

Carsten Knobel: Therefore, it is not always all acquisitions fit one day. Your question was more related to the system part, and therefore I hand over to Marco. Good.

Speaker #3: Good. Yeah, good morning also, Christian, from my side. Yeah, it really depends by deal, and I think that Carsten introduced that already. We do expect, from a pure system integration, the consumer brands acquisitions—not Your Mother's, Ola, Olaplex—will be rather fast.

Marco Swoboda: Good morning also, Christian, from my side. It really depends by deal, and I think that Carsten introduced that already. We do expect from a pure system integration, the Consumer Brands acquisitions, Not Your Mother's, Olaplex will be rather fast. It's also less complex. While what Carsten said is that doesn't mean that we also fully integrate that into the business structure from day one. I think that is here where, what Carsten alluded to, we really design the integration according to the needs, and we are for sure considering that we need to maintain the dynamics also of the businesses that we bought. A very tailored integration approach. On Adhesive Technologies, both acquisitions run on SAP. But as you know, Stahl has not even been closed yet. We're going to look at that once also closed and define the detailed timing.

Speaker #3: It's also less complex. While what Carsten said is that doesn't mean that we also fully integrate that into the business structure from day one.

Speaker #3: I think that is here where what Carsten alluded to. We really design the integration according to the needs and we are for sure considering that we need a maintain the dynamics also of the businesses that we bought.

Speaker #3: So, a very tailored integration approach. And on adhesive technologies, both acquisitions run on SAP. But, as you know, Stahl has not even been closed yet.

Marco Swoboda: A very tailored integration approach. On Adhesive Technologies, both acquisitions run on SAP. But as you know, Stahl has not even been closed yet. We're going to look at that once also closed and define the detailed timing. Here, we will take probably our time, one, two years, to get that fully done because they operate on a quite consistent system already, and we will do that step by, as I said. Again, that will be determined once we also have full access to Stahl.

Speaker #3: So we're going to look at that once also closed, and then define the detailed timing. Here, we will probably take our time—one to two years—to get that fully done because the operator is on a quite consistent system already.

Marco Swoboda: Here, we will take probably our time, one, two years, to get that fully done because they operate on a quite consistent system already, and we will do that step by, as I said. Again, that will be determined once we also have full access to Stahl.

Speaker #3: And we will do that step by step, as I said. But again, that will be determined once we also have full access to Stahl.

Speaker #2: Okay, great. Thanks to both of you, and obviously, congratulations on the solid results. Thank you.

Christian Faitz: Okay, great. Thanks both, obviously congrats on the solid results.

Marco Swoboda: Thank you.

Speaker #1: The next question comes from Nicolas Seron from Bank of America. Please go ahead.

Operator: The next question comes from Nicolas Ceron from Bank of America. Please go ahead.

Speaker #4: Morgan, Carsten, Marco, and Leslie. Just a question on pricing in Adhesive. Could you tell us how much further pricing you think you need to take in H2 to cover the increased input cost?

Nicolas Ceron: Morning, Carsten, Marco, and Leslie. Just a question on pricing in adhesive. Could you tell us how much further pricing you think you need to take in H2 to cover the increased input costs? Given you've priced early in adhesive, why do you think the margin should be down in H2 in that business? I thought that the whole point of pricing early was to protect the margin in H2. Thank you.

Speaker #4: And given you’ve priced early in Adhesive, why do you think the margin should be down in H2 in that business? Because I thought the whole point of pricing early was to protect the margin in H2.

Speaker #4: Thank you.

Speaker #2: So Nicola, if you say good morning, then we say bonjour. Hope you're doing fine. So, regarding your pricing question in adhesives: first of all, yes, we have been taking—and I think that was one of the learnings out of the last, call it, environmental or geopolitical challenges—we took pricing quite early, which also was a little bit impacting the so-called forward buying impact in adhesives.

Carsten Knobel: Nicolas, if you say guten morgen, we say bonjour. Hope you're doing fine. Regarding your pricing question in adhesives. First of all, yes, we have been taken, and I think that was one of the learnings out of the last, call it environmental or geopolitical challenges. We took pricing quite early, which also was a little bit impacting the so-called forward buying impact in adhesives. I think we have shown in both in Q1 and Q2, quite good pricing components. It was in Q1 1,04, and it was more than 3% in the Q2, so brings the H1 of around 1.8. We expect also pricing to remain strong in H2, supported by the swift execution of the pricing initiatives in response to the raw material cost inflation.

Speaker #2: And I think we have shown in both, in quarter one, in quarter two, quite good pricing components. I think in quarter one, not I think.

Speaker #2: It was in Q1 '04, and it was more than 3% in Q2. So, this brings the half-year to around 1.8%. And we expect also pricing to remain strong in H2.

Carsten Knobel: We expect also pricing to remain strong in H2, supported by the swift execution of the pricing initiatives in response to the raw material cost inflation. On the other side, for sure the cost will come in, as Marco alluded that before, more in the H2 and the pricing will annualize in the remainder of the year and anyway remain strong as said before. I think that's how I would see that overall in terms of the pricing situation in adhesives and how we do that. Marco, anything to add?

Speaker #2: Supported by the swift execution of the pricing initiatives in response to the raw material cost inflation. On the other side, for sure, the cost will come in, as Marco alluded to before, more in the second half.

Carsten Knobel: On the other side, for sure the cost will come in, as Marco alluded that before, more in the H2 and the pricing will annualize in the remainder of the year and anyway remain strong as said before. I think that's how I would see that overall in terms of the pricing situation in adhesives and how we do that. Marco, anything to add?

Speaker #2: And the pricing will annualize in the remainder of the year and, anyway, remain strong as said before. I think that's how I would see that overall in terms of the pricing situation in Adhesives and how we do that.

Speaker #2: Marco, anything to add?

Speaker #3: Yeah, maybe on the material cost. I mean, we said there is a time lag, and that also results in H2 being much more exposed to the raw material cost headwind than the first half.

Marco Swoboda: Maybe on the material cost. We said there is a time lag, and that also results in H2 being much more exposed to the raw material cost tailwind than H1. I think that's what we also said before. H2, from a raw material cost perspective, will be hit much harder. Second, there's also a mathematical effect if you fully pass it on at the end, the increase in raw material costs in absolute terms, then percentage-wise, you also see that your margin will decrease slightly just as a result of mathematics, and that is all what we baked into the guidance for the year.

Speaker #3: I think that's what we also said before. So, H2, from a raw material cost perspective, will be hit much harder. And then second, there's also a mathematical effect if you fully pass it on at the end.

Speaker #3: The increase in raw material costs, and in absolute terms, then percentage-wise, you also see that your margin will decrease slightly just as a result of mathematics. That is all what we baked into the guidance for the year.

Speaker #4: Good.

Carsten Knobel: Good. Thank you, Marco. Hope that helps, Nicolas.

Speaker #2: Thank you, Marco. Hope that helps, Nicola.

Speaker #4: Vielen Dank. Very good. Thank you.

Nicolas Ceron: Vielen Dank. Very good. Thank you.

Speaker #2: Thank you.

Carsten Knobel: Thank you.

Speaker #1: The next question comes from Elliot Callum from Bernstein. Please go ahead.

Operator: The next question comes from Callum Elliott from Bernstein. Please go ahead.

Speaker #4: Hi, good morning. It's Callum Elliot, as you guys probably know. So my question is on Mobility and Electronics, please. Collectively, I think you guys said last year 36% of Adhesives revenues were from Mobility and Electronics, but I guess there are very, very different trends between the Mobility part and the Electronics part.

Callum Elliott: Hi, good morning. It's Callum Elliott, as you guys probably know. My question is on Mobility & Electronics, please. Collectively, I think you guys said last year, 36% of adhesives revenues from Mobility & Electronics, but I guess very different trends between the mobility part and the electronics part. Hoping to get a bit of an update on what that split looks like today. Then maybe just some more color on specifically the growth of the electronics part.

Speaker #4: So, I'm hoping that I can get you to speak a bit about the relative size of the two parts. I think a few years ago, the last time you quantified this, it was about one-third electronics and two-thirds mobility, but I imagine that's changed quite a bit over the past few years.

Speaker #4: And so hoping to get a bit of an update today, and then maybe just some more color on specifically the growth of the electronics part.

Callum Elliott: I think you said double digit, but maybe just some color on where in the range of 10 to 99 that sits, please. Thank you.

Speaker #4: I think you said double-digit, but maybe just some color on where in the range of 10 to 99 that sits, please. Thank you.

Speaker #2: Good morning, Callum. So, yeah, to give you a little bit on that—as we said—mobility and electronics has been the most, yeah, growing part within the three divisions of Adhesive Technologies.

Carsten Knobel: Good morning, Callum. Yeah, to give you a little bit on that. As we said, Mobility & Electronics has been the most growing part within the three divisions of Adhesive Technologies. If you go on the split, auto, in the meantime, is slightly less than 20% of the overall portfolio of Adhesive Technologies, while electronics and industrials each have a high single-digit percentage within our portfolio. Yes, for sure, electronics over the last couple of years has been based on the overall double-digit growth, which is a pattern which we have seen over a couple of years. In that context, also slightly increased their overall share, while automotive went a little bit down.

Speaker #2: If you look at the split, auto in the meantime is slightly less than 20% of the overall portfolio of Adhesive Technologies, while electronics and industrials each have a high single-digit percentage within our portfolio.

Speaker #2: And yes, for sure, electronics over the last couple of years has been based on the overall double-digit growth, which is a pattern we have seen over a couple of years. In that context, they have also slightly increased their overall share.

Carsten Knobel: In that context, also slightly increased their overall share, while automotive went a little bit down. The point is, I think that is important, already despite quite high comps, which are in the electronics, as I said before, the double-digit, even it's more than 10% in that context, it is something which has always been for sure increasing the comps year-by-year. If you look at electronics, again, in Q2, we have seen a clear double-digit growth rate despite the tough or the prior year comparables.

Speaker #2: While automotive went a little bit down, and the point is—and I think that is important—already, despite quite high comms, which are in the electronics, as I said before, the double digit and even it's more than 10%. In that context, it is something which has always been for sure increasing the comms year by year.

Carsten Knobel: The point is, I think that is important, already despite quite high comps, which are in the electronics, as I said before, the double-digit, even it's more than 10% in that context, it is something which has always been for sure increasing the comps year-by-year. If you look at electronics, again, in Q2, we have seen a clear double-digit growth rate despite the tough or the prior year comparables. Growth was driven by strong underlying demand across the core electronics application, supported by solid customer activities in the key end markets. We did not observe any relevant or broad-based pre-buying in electronics. I think that's also important to mention, that I think is the overall situation.

Speaker #2: And if you look at electronics again in Q2, we have seen a clear double digit growth rate. Despite the tough or the prior year comparables, growth was driven by strong underlying demand across the core electronic application, solid supported by solid customer activities in the key end markets.

Carsten Knobel: Growth was driven by strong underlying demand across the core electronics application, supported by solid customer activities in the key end markets. We did not observe any relevant or broad-based pre-buying in electronics. I think that's also important to mention, that I think is the overall situation. I referred during my presentation also about the content part in electronics, the number of solutions which we are in devices, mobile devices, tablets, is significantly increasing. It will go up to 80 components, that's doubling over a longer-term period.

Speaker #2: And we did not observe any relevant or broad-based pre-buying in electronics. I think that's also important to mention. And that, I think, is the overall situation.

Speaker #2: And I referred during my presentation also to the content part in electronics; the number of solutions which we are using in devices—mobile devices, tablets—is significantly increasing. It will go up to 80 components, and that's doubling over a longer term period.

Carsten Knobel: I referred during my presentation also about the content part in electronics, the number of solutions which we are in devices, mobile devices, tablets, is significantly increasing. It will go up to 80 components, that's doubling over a longer-term period. I think on that part, I think I mentioned it already, but I think in that part, I think it's also important to repeat it again. The automotive part stabilized in Q2, we see that stabilization part not only in Q2, we are also expecting that for H2 of the year, returning to positive territory. I also mentioned here the differentiation between combustion engines and the electronic-based vehicles where we have at least two times the higher potential than in the combustion engine with roughly EUR 250 of net sales per car in that context.

Speaker #2: And I think that's I think on that part, I think I mentioned it already, but I think in that part, I think it's also important to repeat it again.

Carsten Knobel: I think on that part, I think I mentioned it already, but I think in that part, I think it's also important to repeat it again. The automotive part stabilized in Q2, we see that stabilization part not only in Q2, we are also expecting that for H2 of the year, returning to positive territory. I also mentioned here the differentiation between combustion engines and the electronic-based vehicles where we have at least two times the higher potential than in the combustion engine with roughly EUR 250 of net sales per car in that context. I hope that gives you a little bit more insight in the topic of automotive electronics in that situation overall.

Speaker #2: The automotive part stabilized in Q2, and we see that stabilization not only in Q2—we are also expecting that for the second half of the year.

Speaker #2: Returning to positive territory and I also mentioned here the differentiation between combustion engines and the electronical-based vehicles where we have two times a higher potential, at least two times a higher potential than in the combustion engine with roughly 100 to 250 euro of net sales per car in that context.

Speaker #2: And I hope that gives you a little bit more insight into the topic of automotive electronics and into that situation overall.

Carsten Knobel: I hope that gives you a little bit more insight in the topic of automotive electronics in that situation overall.

Speaker #4: Thank you very much.

Callum Elliott: Thank you very much.

Speaker #2: You're welcome.

Carsten Knobel: You're welcome.

Speaker #1: The next question comes from David Hayes from Jefferies. Please go ahead.

Operator: The next question comes from David Hayes from Jefferies. Please go ahead.

Speaker #4: Thank you. Good morning, all. I'm going to do a cheeky follow-up and then the question, if I can. So the cheeky follow-up on Callum's question just now: one of your competitors in adhesives called out electronics seemingly slowing quite sharply in China, and they also called out second-half semiconductor shortage risks, which you don't seem to be alluding to at all.

David Hayes: Thank you. Good morning all. I'm going to do a cheeky follow-up and then the question if I can. The cheeky follow-up off Callum's question just now. One of your competitors in adhesives called out electronics seemingly slowing quite sharply in China, and they also called out H2 semiconductor shortage risks, which you don't seem to be alluding to at all. I just wonder whether you'd confirm that that's something that is unique to them rather than anything that you're anticipating or factoring. And then my question, still on adhesives, is on tapes. You called out again that tapes has got this better growth profile. The chatter in the adhesives world seems to be that the tapes is the future.

Speaker #4: So, I just wonder whether you'd confirm that that's something that is unique to them, rather than anything that you're anticipating or factoring in. And then my question, still on adhesives, is on tapes.

Speaker #4: You called out again that tapes have got this better growth profile. The chats in the adhesives world seem to be that tapes are the future.

David Hayes: You called out again that tapes has got this better growth profile. The chatter in the adhesives world seems to be that the tapes is the future. Obviously you're now in that area with ATP, but is this an area you need to acquire more deeply into or is this an area you can evolve into organically so that you're kind of keeping up with that trend as we move into the midterm? Thank you.

Speaker #4: So obviously you're now in that area with ATP, but is this an area you need to acquire more deeply into, or is this an area you can evolve into organically, so that you're kind of keeping up with that trend as we move into the midterm?

David Hayes: Obviously you're now in that area with ATP, but is this an area you need to acquire more deeply into or is this an area you can evolve into organically so that you're kind of keeping up with that trend as we move into the midterm? Thank you.

Speaker #4: Thank you.

Speaker #2: Good morning, David. For the first question, I can be very brief. We do not see what you have described in our business.

Carsten Knobel: Good morning, David. For the first question, I can be very short. We don't see that what you have described in our business. For sure I've also seen some cross reads, but I can't confirm that for Henkel or for Henkel Adhesive Technologies in that perspective. On your second part regarding to tapes, we see definitely that I'll start differently. We talked about that before, that we have seen specialty coatings and also tapes, as we pointed that out before, we internally see that as new strategic platforms for our portfolio to broaden our portfolio based on the attractiveness of these markets, also from a growth perspective. That was the reason why we went behind these two categories and with ATP already closed, and Marco talked about that Stahl should be closed within H2 of the year.

Speaker #2: For sure, I've also seen some cross-reads, but I can't confirm that for Henkel or for Henkel Adhesive Technologies in that perspective. On your second part regarding tapes, I think, first of all, we definitely see that—I’ll start differently.

Speaker #2: I think we talked about that before, that we have seen specialty coatings and also tapes as or we pointed that out before we internally see that as new strategic platforms for our portfolio to broaden our portfolio based on the attractivity of the market of these markets also from a growth perspective.

Carsten Knobel: We talked about that before, that we have seen specialty coatings and also tapes, as we pointed that out before, we internally see that as new strategic platforms for our portfolio to broaden our portfolio based on the attractiveness of these markets, also from a growth perspective. That was the reason why we went behind these two categories and with ATP already closed, and Marco talked about that Stahl should be closed within H2 of the year.

Speaker #2: That was the reason why we went behind these two categories, and with ATP already closed—and Marco talked about that—Stahl should be closed within the second half of the year.

Speaker #2: We will step into these new platforms, and therefore ATP really is a growth platform organically, but also potentially for further M&A going forward. It's a highly attractive and fast-growing part of the global tapes market, especially that which is beyond liquid systems.

Carsten Knobel: We will step into these new platforms. ATP really is a growth platform organically, but also potentially for further M&A going forward. It's a highly attractive and fast-growing part of the global tapes market, especially, which is beyond the liquid systems. Strategy-wise, absolutely the right thing, what we want to do. The market offers in that segment, highly single-digit growth rates in that part, which ATP is predominantly playing. In that context, ATP is a high-performance, water-based specialty tapes provider with a broad and wide variety of end markets, and that's absolutely in line with our strategy. For sure, we will continue clear strategic fit. We would like to take what we have bought as an organic basis to participate.

Speaker #2: I think that is, strategy-wise, absolutely the right thing that we want to do. The market offers in that segment high single-digit growth rates, in that part in which ATP is predominantly playing.

Speaker #2: So, in that context, ATP is a high-performance, water-based specialty tapes provider with a broad and wide variety of end markets. And that's, I think, absolutely in line with our strategy.

Speaker #2: And for sure, we will continue with a clear strategic fit. We would like to take what we have bought as an organic basis to participate. You have also heard me saying that in all the acquisitions which we have done—the five, or will do—we see high single-digit, mid- to high single-digit growth rates, which will contribute to the point that, in 2030, we see at least €2 billion of sales with these five acquisitions.

Carsten Knobel: For sure, we will continue clear strategic fit. We would like to take what we have bought as an organic basis to participate. You have also heard me saying that in all the acquisitions which we have done, the five, or will do, we see mid to high single-digit growth rates, which will contribute to the point that in 2030, we see at least EUR 2 billion of sales with these five acquisitions. David, I hope that helps.

Carsten Knobel: You have also heard me saying that in all the acquisitions which we have done, the five, or will do, we see mid to high single-digit growth rates, which will contribute to the point that in 2030, we see at least EUR 2 billion of sales with these five acquisitions. David, I hope that helps.

Speaker #2: David, I hope that helps.

Speaker #4: That's great. Thank you.

David Hayes: That's great. Thank you.

Speaker #1: The next question comes from Warren Ackerman from Barclays. Please go ahead.

Operator: The next question comes from Warren Ackerman from Barclays. Please go ahead.

Speaker #4: Yeah, good morning, Carsten, Marco, Leslie. It's Warren here at Barclays. I'm going to try and squeeze two in. The first one, just on hair care—still very good in the first half, but in Q2, I think it did slow versus Q1: 3.3%, I think, versus 5% in Q1.

Warren Ackerman: Yeah. Good morning, Carsten, Marco. This is Warren here at Barclays. I'm going to try and squeeze two in. The first one, just on hair care, still very good in H1, but in Q2, I think it did slow versus Q1, 3.3%, I think, versus 5% in Q1. Can you maybe just outline what's happening in the hair care market? It's obviously still very dynamic, but are you seeing any signs of your share gains slowing? Maybe you can outline how Schwarzkopf is doing versus the rest of hair, retail hair, and how you're thinking about hair in H2. Secondly, just back on M&A, I think you spent EUR 5 billion on M&A, but your balance sheet is still very strong. How much more firepower do you still have to do more deals?

Speaker #4: Can you maybe just outline what's happening in the hair care market? It's obviously still very dynamic, but are you seeing any signs of your share gains slowing?

Speaker #4: Maybe you can outline how Schwarzkopf is doing versus the rest of hair retail, and how you're thinking about hair in the back half.

Speaker #4: And then secondly, just back on M&A, I think you spent €5 billion on M&A, but your balance sheet is still very strong. How much more firepower do you still have to do more deals?

Warren Ackerman: Secondly, just back on M&A, I think you spent EUR 5 billion on M&A, but your balance sheet is still very strong. How much more firepower do you still have to do more deals? Marco, can you maybe say what the sales and EPS contribution you expect from the M&A for 2027? You kindly gave us the help for 2026, but for 2027. Thank you.

Speaker #4: And then, Marco, can you maybe say what the sales and EPS contribution you expect from the M&A for 2027? You kindly gave us the help for 2026, but for 2027?

Warren Ackerman: Marco, can you maybe say what the sales and EPS contribution you expect from the M&A for 2027? You kindly gave us the help for 2026, but for 2027. Thank you.

Speaker #4: Thank you.

Carsten Knobel: Warren, Marco will take the M&A question. I can tell you, Marco has always money. Marco will quantify that and allude on that. To your first question, or better my answer to your first question is quite short. It is really quarterly volatility. The hair is a growth engine. I could now allude to that we had a little bit tougher comps in that context, but the point is we are doing very well in professional and consumer. We are doing that now since a couple of years in a row, and there is nothing to read out of a little bit less organic growth in Q2 than in Q1. I think it's also backed by the point, the acquisitions which we are doing, Not Your Mother's and Olaplex, both in the field of hair, one in more retail, one more professional.

Speaker #2: So, Warren, Marco will take the M&A question, but I can tell you Marco always has money. But Marco will quantify that and elaborate on that.

Speaker #2: But to your first question, or better, my answer to your first question is quite short. It is really quarterly volatility. There, the Hair is a growth engine.

Speaker #2: And I could now allude to that we had a little bit tougher comms in that context, but the point is we're doing very well in Professional and Consumer. We're doing that now since a couple of years.

Speaker #2: In a row, and there is nothing to read out of—a little bit smaller, no, a little bit less organic growth in Q2 than in Q1.

Speaker #2: And I think it's also backed by the point—the acquisitions which we are doing, Not Your Mother's and Olaplex, both in the field of hair.

Carsten Knobel: I think it's also backed by the point, the acquisitions which we are doing, Not Your Mother's and Olaplex, both in the field of hair, one in more retail, one more professional. We see market share gains in hair throughout the whole year. We have strong innos behind that, and there's nothing to read out of. Even a three point something is a fantastic, a good result in that environment in which we're in. I said it during my part of the presentation. We are now the global number two in the professional area with the acquisition of Olaplex, and I think nothing more to say on that. Now it's time for Marco.

Speaker #2: One in more retail, one more professionals. We see market share gains in Hair throughout the whole year. We have strong innos behind that. And there’s nothing to read out of—even a three-point-something is a fantastic, is a good result in that environment in which we’re in.

Carsten Knobel: We see market share gains in hair throughout the whole year. We have strong innos behind that, and there's nothing to read out of. Even a three point something is a fantastic, a good result in that environment in which we're in. I said it during my part of the presentation. We are now the global number two in the professional area with the acquisition of Olaplex, and I think nothing more to say on that. Now it's time for Marco.

Speaker #2: And I also finally said no—I said it during Mike’s part of the presentation—we are now the global number two in the professional area with the acquisition of Olaplex.

Speaker #2: And I think there’s nothing more to say on that. And now, it’s time for Marco.

Speaker #4: Good, Warren. So on the firepower question, so what our landing is that after the conclusion also of the Stahl acquisition, i.e., end of the year, now we're going to see a leverage of one and a half times EBITDA roughly.

Marco Swoboda: Good, Warren. On the firepower question, what our planning is that, after the conclusion also of this Stahl acquisition, i.e., end of the year, we're going to see a leverage of 1.5x EBITDA, roughly. That stands well within the A category, for the rating. The A rating category is our policy as well. We want to be within that policy and that border for that policy is 2.5x EBITDA. You see that we still have firepower to even engage more into acquisitions. The leverage is not too high yet, but it has to be, of course, the right transaction before we would engage. On the benefit

Speaker #4: And that stands well within the A category for the rating. And the A rating categories are policy as well, so we want to be within that policy.

Speaker #4: And that border for that policy is two and a half times EBITDA. So you see that we still have firepower to even engage more into acquisitions.

Speaker #4: The leverage is not too high yet, but it has to be, of course, the right transaction before we would engage. So, on the balance sheet...

Warren Ackerman: Would that be another EUR 5 billion on my calculation? I mean, would it be EUR 10 billion? If it's 2.5, 1.5, I mean, it would seem like you got another EUR 5 at least.

Speaker #4: Would that be another $5 billion on my calculation? I mean, would it be like $10 billion if it's two and a half, one and a half?

Speaker #4: I mean, it would seem like you've got at least another five.

Speaker #2: Warren, we will be creative when it comes to that, and therefore, there is not a single number which we will give you. If there is a once-in-a-lifetime opportunity, we will make sure that we will get that lifetime opportunity.

Carsten Knobel: Warren, we will be creative when it comes to that, therefore, there is not a single number, which we will give you. If there is a once in a lifetime opportunity, we will make sure that we will get that lifetime opportunity. The rest Marco has said. For 2027?

Speaker #2: The rest, Marco has said.

Speaker #4: For 2027? The 2027 M&A benefits. So, what we can say is—and I think we said that in the call—when you look at the acquisitions, assuming all have closed, then we look at an annual sales contribution of €1.6 billion.

Warren Ackerman: For 2027?

Marco Swoboda: The 2027 M&A benefits. What we can say is, and I think we said that in the call, when you look at the acquisitions, assuming all have closed, we look at an annual sales contribution of EUR 1.6 billion. That is on a pro forma 2025. That, of course, you can assume that the businesses will grow, that will be also the top-line contribution in 2027 from a net sales perspective. On the bottom line, we will come back later in the future and give you more insight. What we said is that by 2030, we're going to see at least a 10% contribution to EPS with a gradual ramp-up over the years while we realize synergies and so on.

Speaker #4: That is on a pro forma 2025. So, of course, you can assume that the businesses will grow, and that will then also be the top-line contribution in 2027 from a net sales perspective.

Speaker #4: And on the bottom line, we will come back later in the future and give you more insight. But what we said is that by 2030, we're going to see at least a 10% contribution to EPS.

Speaker #4: With a gradual ramp-up over the years as we realize synergies and so on. But we will not be more specific today, because I first want to see the purchase price allocation effects, all that being now finalized.

Marco Swoboda: We will not be more outspoken today because I first want to see also the purchase price allocation effects, all that being now finalized before I comment on a single year, 2027.

Speaker #4: Before I comment on a single year—2027.

Speaker #2: And you heard me saying, based on Marco's number of the 1.6, we expect in 2030 that this number will be at least 2 billion.

Carsten Knobel: You heard me saying based on Marco's number of the 1.6, we expect in 2030 that this number will be at least EUR 2 billion.

Speaker #4: Got you. Thank you.

Warren Ackerman: Got you. Thank you.

Speaker #2: You're welcome.

Carsten Knobel: You're welcome.

Speaker #1: The next question comes from Juan Ríos from Santander. Please go ahead.

Operator: The next question comes from Juan Rios from Santander. Please go ahead.

Speaker #5: Good morning, team. Congrats on the strong results. One question from my side: Could you provide some more details on the weaker performance in other technologies in Latin America?

Juan Rios Peris: Buenos dias, team. Congrats on the strong results. One question from my side. Could you provide some more details on the weaker performance in Adhesive Technologies in Latin America? What were the main factors behind the decline, and how should we think about the outlook for the region going forward? Thank you very much.

Juan Rios: Buenos dias, team. Congrats on the strong results. One question from my side. Could you provide some more details on the weaker performance in Adhesive Technologies in Latin America? What were the main factors behind the decline, and how should we think about the outlook for the region going forward? Thank you very much.

Speaker #5: What were the main factors behind the decline, and how should we think about the outlook for the region going forward? Thank you very much.

Speaker #2: Good morning. And yes, we can give you a little bit of insight on that. The point is, we had a negative development in Q1, which was mainly due to negative effects from the US tariffs.

Carsten Knobel: Good morning. Yes, we can give you a little bit insights on that. The point is more, we had a negative development in Q1, which was mainly due to negative effects from the US tariffs on value chain and demand. LATAM returned to positive organic growth in Q2, supported by recovery of volumes and a favorable working day impact. The organic growth was broadly in line with the overall market environment, and I think that's the overall situation. In Q2 especially, Packaging and Consumer Goods was the strong driver of that performance in Q2. I hope that helps.

Speaker #2: On value chain and demand, the latter returned to positive organic growth in Q2, supported by a recovery of volumes and a favorable working day impact.

Speaker #2: But the organic growth was broadly in line with the overall market environment, and I think that's the overall situation. In Q2 especially, packaging and consumer goods were the strong drivers of that performance in Q2.

Speaker #2: I hope that helps.

Speaker #5: Thanks.

Juan Rios Peris: Thanks.

Juan Rios: Thanks.

Speaker #2: You're welcome, Juan.

Carsten Knobel: You're welcome, Juan.

Speaker #1: The last question for today comes from Michael Odemarze from BNP Paribas. Please go ahead.

Operator: The last question for today comes from Mikheil Omanadze from BNP Paribas. Please go ahead.

Speaker #4: Good morning, Carsten, Marco, and Leslie. One question from me, please. I know you cannot comment much on current trading, but I was wondering if you could give any high-level commentary on how both businesses performed in July.

Mikheil Omanadze: Morning, Carsten, Marco, and Leslie. One question from me, please. I know you cannot comment much on current trading, but I was wondering if you could give any high-level commentary on how both businesses performed in July. More specifically on adhesives, are you seeing any signs of reversal of pre-buying? If not, do you expect to see some degree of reversal in H2? Thank you.

Speaker #4: And more specifically on adhesives, are you seeing any signs of reversal of pre-buying? And if not, do you expect to see some degree of reversal in H2?

Speaker #4: Thank you.

Carsten Knobel: Mikheil, you're absolutely right that we don't comment on current trading, I have a smile in my face if I look at the performance in July. Hope that helps.

Speaker #2: So Michael, you're absolutely right that we don't comment on current trading. But I have a smile in my face if I look at the performance in July.

Speaker #2: Hope that helps.

Speaker #4: That's very clear. Thank you. And on the reversal of pre-buying?

Mikheil Omanadze: That's very clear. Thank you. On reversal of pre-buying?

Speaker #2: Nair, we said that there will be and I think Marco was also a little bit talking about that. The this part is related to adhesive technologies.

Carsten Knobel: We said that there will be, and I think Marco was also a little bit talking about that this part is related to Adhesive Technologies. Marco, you want to say something?

Speaker #2: Marco, would you like to say something?

Speaker #3: Yeah. I mean, so far we haven't seen that reversal happening. I think that's what we can say. But still, as we said before, timing when that will happen is unclear.

Marco Swoboda: Far, we haven't seen that reversal happening. I think that's what we can say. Still, as we said before, timing when that will happen is unclear, and we need to assume that that will happen once there's really the situation in the Middle East and the supply chains, once that is really resolved, and I don't think we can say that now.

Speaker #3: And we need to assume that that will happen once there’s really the situation in the Middle East, and the supply chains—once that is really resolved.

Speaker #3: And I don't think we can say that now.

Speaker #4: Very clear. Thank you.

Mikheil Omanadze: Very clear. Thank you.

Speaker #1: Thank you, ladies and gentlemen. I will now hand over to Mr. Knobel for his closing remarks.

Operator: Thank you, ladies and gentlemen. I will now hand over to Mr. Knobel for his closing remarks.

Speaker #4: Yeah. Thank you for your questions. And with that, let me close today's calls reminding you to the upcoming financial reporting dates. We are looking forward to connecting with you again in November when we all publish our Q3 results.

Carsten Knobel: Yeah. Thank you for your questions. With that, let me close today's call, reminding you to the upcoming financial reporting dates. We are looking forward to connecting with you again in November when we all publish our Q3 results. With this, I would like to thank you for joining our call today. Have a good day. Take care, and goodbye.

Speaker #4: And with this, I would like to thank you for joining our call today. Have a good day. Take care. And goodbye.

Marco Swoboda: Bye-bye.

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Q2 2026 Henkel AG & Co KGaA Earnings Call

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