According to our dividend policy, dividend payouts of Henkel AG & Co. KGaA shall, depending on the company’s asset and profit positions as well as its financial requirements, amount to 30 to 40 percent of net income after non-controlling interests and adjusted for exceptional items. We will propose to the Annual General Meeting a stable dividend relative to the previous year of 1.85 euros per preferred share and 1.83 euros per ordinary share for the fiscal year just ended. This equates to a payout ratio of 42.4 percent, which is slightly above the target bandwidth of 30 to 40 percent. Thus we are able to maintain dividend continuity for our shareholders. This payout is possible thanks to the strong financial base and the positive development of the net financial position of the Henkel Group.

Abbreviation for “Kommanditgesellschaft auf Aktien.” A KGaA is a company with a legal identity (legal entity) in which at least one partner has unlimited liability with respect to the company’s creditors (personally liable partner, aka general partner), while the liability for such debts of the other partners participating in the sharebased capital stock is limited to their share capital (limited shareholders).

Financial Glossary Schließen

Proportion of equity attributable to third parties (non-controlling shareholders, aka minority shareholders) in subsidiaries included within the scope of consolidation. Valued on a proportional net asset basis. A pro-rata portion of the net income of the Group is attributable to shareholders owning non-controlling interests.

Financial Glossary Schließen

Indicates what percentage of annual net income (adjusted for exceptional items) is paid out in dividends to shareholders, including non-controlling interests.

Financial Glossary Schließen

The net financial position is defined as cash and cash equivalents, including cash and cash equivalents held for sale, plus readily monetizable securities and time deposits and financial collateral provided, less borrowings, plus positive and minus negative fair values of derivative financial instruments.

Financial Glossary Schließen

Taxation of dividends

The dividends on both ordinary shares and preferred shares are principally paid net of taxes. Capital gains tax at 25 percent and the solidarity surcharge at 5.5 percent of the capital gains tax amount (total 26.375 percent), and church tax where applicable, have already been deducted (withheld). Dividends are taxed in the case of residents of Germany in accordance with the provisions of German income tax law and German corporation tax law.

The tax withheld covers in full the German income tax payable on relevant private capital gains (and is hence known in German as “Abgeltungssteuer” or flat-rate tax). Irrespective of this, shareholders can apply to have the dividends included with all other income made in the calendar year in their personal income tax return where this leads to a lower overall level of income tax payable (known in German as the “Günstigerprüfung” or more favorable tax treatment).

The circumstances of the individual shareholder (e.g. if in possession of a “Nicht-Veranlagungsbescheinigung” (non-assessment certificate) or "Freistellungsauftrag" (exemption order for capital gains)) may allow for a payment to be made without deduction. The circumstances could furthermore allow an application for repayment of the withheld capital gains tax, the solidarity surcharge and - if applicable - church tax.

In the case of a shareholder residing outside of Germany, the withheld capital gains tax and solidarity surcharge may be reduced, depending on the terms of any conventions for the avoidance of double taxation that exist between the Federal Republic of Germany and the country of residence concerned. Shareholders who are residents outside of Germany are recommended to seek professional advice on the tax treatment of dividends.

If more detailed advice is required regarding the tax treatment of dividends in Germany, shareholders should obtain this individually from their local tax office (“Finanzamt”) or seek professional advice from a certified German tax consultant (“Steuerberater”).

Paying agent

Paying agent within the meaning of sec. 48 (1) nr. 4 German Security Trading Act (WpHG) is the Commerzbank AG with its branches.