Share performance

Overall, the price of Henkel shares decreased slightly in the course of 2011. In the wake of the growing severity of the debt crisis and the associated recession fears, the DAXAbbreviation for Deutscher Aktienindex, the German share index. The DAX lists the stocks and shares of Germany’s 30 largest listed corporations. Henkel’s preferred shares are quoted on the DAX. DAX is a registered trademark of Deutsche Börse AG, the German stock exchange company.
experienced a decline of 14.7 percent compared to the closing figure for the preceding year. The industry benchmark in the form of the Dow Jones Euro Stoxx Consumer Goods Index decreased 9.6 percent. Within this market environment, the price of Henkel preferred shares fell to 44.59 euros, closing the year 4.2 percent below the prior-year level. Our ordinary share prices likewise declined slightly, ending the year 3.1 percent down at 37.40 euros. This means our shares withstood the general decline better than both the DAXAbbreviation for Deutscher Aktienindex, the German share index. The DAX lists the stocks and shares of Germany’s 30 largest listed corporations. Henkel’s preferred shares are quoted on the DAX. DAX is a registered trademark of Deutsche Börse AG, the German stock exchange company.
and the shares representing the consumer goods sector.

In the course of the year, Henkel shares tended to track the overall market, although generally performing somewhat better. In the first quarter, a period characterized by worldwide political upheavals, natural disasters and a mixed set of share price developments on the stock exchanges, Henkel share prices declined. In the more positive market environment of the second quarter, Henkel’s shares increased significantly in value, reaching historic highs in May of 49.81 euros for the preferred share and 41.10 euros for the ordinary share. In the third quarter, rendered particularly difficult by the debt crises in Europe and the USA, Henkel’s shares suffered double-digit price declines, although still tracking somewhat better than the overall market. In the fourth quarter, Henkel’s shares once again rose appreciably in value, concluding fiscal 2011 slightly down but substantially outperforming comparative indices.

The preferred share premium versus the ordinary share in 2011 averaged 20.8 percent.

The trading volume of preferred shares was slightly below the prior-year level. Each trading day saw an average of 0.9 million preferred shares changing hands (previous year: 1.0 million). The average volume in the case of our ordinary shares decreased to 120,000 per trading day (previous year: 130,000). Due to price movements, the market capitalizationMarket value of a company calculated from the number of shares issued multiplied by their list price as quoted on the stock exchange.
of our ordinary and preferred stock combined decreased from 18.3 billion euros to 17.6 billion euros.

For long-term investors, Henkel’s shares remain an attractive investment. Shareholders who invested the equivalent of 1,000 euros when Henkel’s preferred shares were issued in 1985, and then re-invested the dividends received (before tax deduction) in the stock, would have had a portfolio value of about 13,974 euros by the end of 2011. This represents an investment growth of 1,297 percent or an average yield of 10.6 percent per year. Over the same period, DAXAbbreviation for Deutscher Aktienindex, the German share index. The DAX lists the stocks and shares of Germany’s 30 largest listed corporations. Henkel’s preferred shares are quoted on the DAX. DAX is a registered trademark of Deutsche Börse AG, the German stock exchange company.
tracking would have provided an annual yield of 6.4 percent. Over the last five and ten years, Henkel preferred shares have shown an average yield of 5.6 and 9.6 percent per year respectively, offering a significantly higher return than the DAXAbbreviation for Deutscher Aktienindex, the German share index. The DAX lists the stocks and shares of Germany’s 30 largest listed corporations. Henkel’s preferred shares are quoted on the DAX. DAX is a registered trademark of Deutsche Börse AG, the German stock exchange company.
’s 2.7 percent and 1.3 percent in the same respective periods.

17.6 bn eurosmarket capitalizationMarket value of a company calculated from the number of shares issued multiplied by their list price as quoted on the stock exchange.
.