Dr. Dr. UweUwe OverOverHenkelHenkel AG & Co. AG & Co. KGaAKGaAVice President / Associate General CounselVice President / Associate General Counsel

IP Portfolio Consolidationbeyond usual cost saving considerations

Dr. Dr. UweUwe OverOverHenkelHenkel AG & Co. AG & Co. KGaAKGaAVice President / Associate General CounselVice President / Associate General Counsel

IP Portfolio ConsolidationBusiness has two - and only two - basic functions:

Marketing and Innovation; all the rest are “Costs”(Peter Drucker)

a choice limit consolidation to cost chase

or focus on a broader perspective© Dr. Uwe Over, Henkel AG & Co. KGaA - 2010 2

Content

• Some facts about Henkel• IP Administration vs. IP Management• The Pillars of Efficiency Increase• Conclusion

© Dr. Uwe Over, Henkel AG & Co. KGaA – 2010 3

Some facts about Henkel

© Dr. Uwe Over, Henkel AG & Co. KGaA - 2010 4

Henkel 2010

9© Dr. Uwe Over, Henkel AG & Co. KGaA

• Some 50,000 employees • Brands and technologies worldwide

Laundry &Home Care

AdhesiveTechnologies

Cosmetics/ Toiletries

Three Areas of Competence

10© Dr. Uwe Over, Henkel AG & Co. KGaA

Quality with Brands & Technologies

Major Brands

Laundry &Home Care

Adhesive Technologies

Cosmetics/Toiletries

© Dr. Uwe Over, Henkel AG & Co. KGaA 11

12© Dr. Uwe Over, Henkel AG & Co. KGaA

Fiscal 2009

Sales: 13.6 bill. euros

Operating profit (EBIT)1): 1,364 mill. euros

1) Adjusted for one-time charges/gains and restructuring charges

Henkel worldwide 2009Sales1), EBIT1) and employees2)

Europe/Africa/Middle East Sales: 8,335 mill. eurosEBIT: 838 mill. eurosEmployees: 30,933

North AmericaSales: 2,546 mill. eurosEBIT: 127 mill. eurosEmployees: 5,714

Latin AmericaSales: 825 mill. eurosEBIT: 74 mill. eurosEmployees: 4,002

Asia/PacificSales: 1,657 mill. eurosEBIT: 139 mill. eurosEmployees: 8,613

13© Dr. Uwe Over, Henkel AG & Co. KGaA

1) Excluding Corporate2) as of December 31, 2009

14© Dr. Uwe Over, Henkel AG & Co. KGaA

Headquarters in Düsseldorf

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Brands & Trademarks from Henkelsince more than 134 years

© Dr. Uwe Over, Henkel AG & Co. KGaA

IP Consolidation

limit consolidation to cost chaseor focus on a broader perspective

Focuson cost chase

conservative IP Administration=

Focuson efficiency increase

dynamic IP Management=

choose the obviousalthough your controller might not want to let you

© Dr. Uwe Over, Henkel AG & Co. KGaA - 2010 13

The 3 Pillars of Efficiency Increase

IP-Portfolio

Structure

Resource Control

(cash + time)

Team

external teamIP Agent Networkinternal team

“less for more”© Dr. Uwe Over, Henkel AG & Co. KGaA - 2010 14

1st Pillar: Intelligent IP-Portfolio Structure

save = strategic TM’s for innovationsand business extensions

defend = strategic TM’s in use/for use

exploit = potential TM’s for outlicensing/ divestment

circle of paincircle of peace

exploit

defend save

– strict control in/out– resource drivers in life cycles– opportunities for exploitation

Strong Team to challenge business instead of taking next application order!

© Dr. Uwe Over, Henkel AG & Co. KGaA - 2010 15

2nd Pillar:Resource Control

speed control

- define quality level

- identify standard- processes

- measure KPI‘s

predictability+

accuracy

reduce complexity+

gain speed

cost control

- transparent budget

- cost blocks

- flat fees

Cash Time+

© Dr. Uwe Over, Henkel AG & Co. KGaA - 2010

remember: less for more

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3rd Pillar: TEAM requirements

Teams need guidance through alignment matrix

strategic alignment

= check vs. business priorities

professional alignment

= check vs. local legal requirements

Internal TEAM External TEAM(IP Agent Network)

Quality Contro

l

Shift in Paradigm?

© Dr. Uwe Over, Henkel AG & Co. KGaA - 2010 17

Shift in Paradigm ?

Is this all new?

Does it need a global crisis to think about it?

Are we already on the same page?NO

Do we need to be one TEAM? YES

© Dr. Uwe Over, Henkel AG & Co. KGaA - 2010 18

Conclusion

vision w/o execution is a daydreamexecution w/o vision is a nightmare

Visionto hear your top management saying:that’s IP-Asset-Management at it’s best

choose the obvious & generate IP Value© Dr. Uwe Over, Henkel AG & Co. KGaA - 2010 19

Thank You!Danke!Dziękuję!

Merci beaucoup! Bedankt!

Gracias!Merci vielmals!

Mille Gracie!Tusen takk!