Techxfer program presentation at Verhaert innovation day 2015

1. 1
TRENDS CHALLENGES TACKLED KEY EXPERTISES
High amount of under
used technology available
Pressure for additional
revenues from existing
knowhow
Techxfer programs
WHAT WE DO
Benchmarking
Positioning
Ideation
Connect technologies & needs
Application development
Technology assessment
Intellectual property
Technology marketing
Open Innovation
Demonstration / Feasibility
SOLVING THE INNOVATION PARADOX

2. 2
Solving the innovation paradox
NEW APPLICATION STUDIES
WHAT WE DO
1 2 3
IDEAS
HighPotentials
Opportunity
Sheets
Doc.Cases
Newapplication
ofBusiness
Concept
Business
OpportunityPlans
BusinessPlans
FIND
Un-certainty
Workload
SELECT NABC PROJECT
PROPOSALS

3. 3
Solving the innovation paradox
GENERATE VALUE BEHIND THE €/TON
WHAT WE DO

4. 4
Solving the innovation paradox
TURNING PUSH INTO PULL
WHAT WE DO
Feed
supplier
Livestock
Farmer
Processor Retailer Consumer
Raw
Materials
Product Innovation
Market Innovation
Technology Innovation
Business model Innovation
Process Innovation
Service Innovation
Delivery Innovation
Innovation Push Innovation Pull
Procurement Innovation
performance time

5. Henkel - Verhaert
Diversification study,
a way to find new
directions for existing
technology

6. Agenda
• Henkel and Henkel Innovation Strategy
• Technology platform for diversification study
• Why to do a diversification study
• Diversification study example
October 13, 2015 Title and author of presentation6

7. Henkel : Headquarters in Düsseldorf
October 13, 2015 Adhesive Electronics Overview
• Some 47,000 employees
• Brands and technologies worldwide

8. Who we are
Global leading positions in consumer and industrial
businesses
October 13, 2015
Industrial BusinessConsumer Businesses
Adhesive TechnologiesLaundry & Home Care Beauty Care

9. Adhesive Technologies
Total Henkel sales 2014: 16,428 million Euros / Five Business Segments
October 13, 2015
Corporate = sales and services not assignable to the individual business sectors.
2014 Sales by Business sector
Beauty
Care
22%
Laundry and
Home Care
28%
Corporate
1%
49% of
Henkel Sales
Adhesive
Techno-
logies
Packaging and
Consumer Goods
Transport and Metal General Industry
Electronics
Consumer, Craftsmen
and Building We leverage
our
engineering
expertise
across our
business
units

10. 10
Henkel has
17
major R&D sites
worldwide
248 Mio Euro
spend on innovation
projects per year
130,000
customers served
worldwide 6,500
dedicated customer-
facing technical
specialists worldwide
> 30
customer awards won in
the last year
> 30 % of sales
with products launched
in the last five years
Innovation Key Facts and Figures

11. October 13, 2015
Our Innovation Strategy
Focus on developing technologies that solve
customers’ key challenges
• Identify and develop new
technologies to excite our
customers and drive business
growth
• Customer and market needs will
drive our innovation portfolio
• Leverage technologies across
markets to drive scale, and take
advantage of internal and external
expertise

12. Agenda
• Henkel and Henkel Innovation Strategy
• Technology platform for diversification study
• Why run a diversification study
• Diversification study example
October 13, 2015 Title and author of presentation12

13. Printed Heaters – Technology Platform
• Key benefits of PTC technology
1. Overheat prevention (safety)
2. Rapid heating
3. Thin & flexible
4. Additive process
5. Sustainable
0
20
40
60
80
0 2 4 6 8 10
Max Temperature
Applied voltage
Additive Manufacturing
Henkel offers complete material set:
• PTC inks
• Ag busbar inks
• Dielectric overcoat
• Laminating film adhesive
PTC
heater
Non-PTC
heater
Slide 13
ON

14. Initial Henkel business for PTC heaters
• 2014 Henkel business for automotive seat heaters
• Proven technology in automotive market
• Many different applications possible for printed PTC heaters
Animal/PET heating IV/blood bag heating Pool heating
Slide 14
Windmill Deicing Freezer defrosting

15. Agenda
• Henkel and Henkel Innovation Strategy
• Technology platform for diversification study
• Why run a diversification study
• Diversification study example
October 13, 2015 Title and author of presentation15

16. Henkel project management by stage gate
September 201416
Selecting the right projects early in the development process is
extremely valuable
0%
20%
40%
60%
80%
100%
Request Decision
Gate
Kick-Off
Gate
Money Gate Testing
Gate
Launch
Gate
Extra resources
spent with no return
Best
practice
attrition
profile is
steeper
(PDMA*)
Attrition profile is not steep
enough – we are not selecting
the right projects early
2. Recaptured lost
opportunity:
This improvement
in project
selection will drive
a 2% increase in
successful
launches, yielding
xx M €
NES annually
1. Better use of
resources:
A 2%
improvement
in project
selection
frees up
x M €
of resources
for better
projects
* Product Development & Management Association

17. To be succesfull ….
For internal use only
We need to do innovation projects right
• Customer focused value proposition
• Clear business case and timeline
• Professional project management
We need to do the right innovation projects
• Select the best opportunities aligned with our
growth strategy
• Prioritize projects and resource them for speed
to market
201417

18. User driven
Technology enabled
Business focused
We tune you into the sweet spot of
innovation
for
PRINTED HEATERS

19. Agenda
• Henkel and Henkel Innovation Strategy
• Technology platform for diversification study
• Why run a diversification study
• Diversification study example
October 13, 2015 Title and author of presentation19

20. New Opportunity Search Process for Printed Heaters
Internet search
Applications and
Competition
Patent
search
Brainstorms
sessions
212 patents
150 ideas
8 markets
HENKEL
input
INPUT
OUTPUT
2 NABC
Selecting the
high potentials
Fine-tuning the ideas
Mapping
the ideas
July 1
2014
Oct 1
2014

21. Henkel input in deep dive session
HENKEL INPUT

22. feature
Perceivedvalue
high
low
Longlife
Temperaturerange
Safety/Selfregulating
Electricity
ControllerforvariousT°
Successbylegislation
Flexible/pliable
Ultrathin
Rapidheating
Recyclable
Price
Notproven
Complexdesign
Must haves Rivals Out preformers
Addingtootherfeatures
Lightweight
Surfaceheating
Nocoolingfeature
Flexiblefortextile
Designcommunity
Additivetechnology
Integratingafterdesign
Flatsurfaceneeded
Maxtemp150°
Processcomplexity
Designflexibility
PTC
Copperwire
Competitor
Differentiating Features
• Self-regulating
• Ultra-Thin
• Rapid Heating
• Light Weight
• Printing with other features
• Equal Surface heating
• Design Flexibility
Features for improvement
• Price
• Recyclable
• Not Proven
Technology differentiation

23. INTERNET RESEARCH

24. 212 Patents of Inspiration

25. about
150 ideas
in
8 markets

26. INPUT
2 NABC
Selecting the
high potentials
Fine-tuning the ideas
Mapping
the ideas
July 1
2014
Oct 1
2014
Selecting ideas: from 150 to 12 in selecting high potentials

27. Concept selection workshop : from 12 potentials to 2 NABC topics

28. CONFIDENTIAL
12 opportunity Sheets
Solution description
Value proposition
Challenges
Market
Reasons to Believe
Complexity
Innovation Level
Technology Fit PTC
Market Size
Market NeedPlatform for Growth:
Competitive Intensity
Time to market
Henkel Synergy:

30. New Opportunity Search Process
Internet search
Applications and
Competition
Patent
search
Brainstorms
sessions
212 patents
150 ideas
8 markets
HENKEL
input
INPUT
12 potentials for idea sheets
OUTPUT
2 NABC
Selecting the
high potentials
Fine-tuning the ideas
Mapping
the ideas
July 1
2014
Oct 1
2014

32. CONCLUSIONS - Floor & Wall PTC heating
1. Business strategy to be defined
2. Develop detailed product concepts and validate with the market and potential
partners
3. Validate the Business Case with DEMO project
4. Partner Program to be established
+ x M€ opportunity in wall & floor
heating in USA only
Clear customer benefit
resulting in a competitive
advantage

33. PTC ink – Value Creation Strategy MAP
Corporate
Objective
Market
Drivers
Value / Product
Customer Offering
Platforms Key Projects /
Processes
Critical
Competences
Solutions /
Actions
HOUSE/OFFICE HEATING
PTC - GENERAL
Define KEY growth
platforms
TARGET:
>x M€ / x% profitability / x% MS
•Lower Installation cost
•Growth in Electrical Heating
•Increased Comfort
•Heavy price competition in
building materials
•System Integrations
Zero energy buildings
Sustainability
Smart Heating Concepts
DIY versus Installers
GROWTH in PTC ink revenue
x% MS in selected segment
3Y -> Min xM€ business
~x m² PTC Heater
Average Profit Target – x%
•Lightweight
•Printed Electronics
•Safety
•Efficiency
•Productivity
•Integration
Intelligent Integrated
heating
Installation cost
reduction
For material producer
•Diversification
•Added functionality
Ag INK
PTC INK
PRINTED HEATER ?
Include other division ?
PTC HEATING SYSTEM
PARTNERSHIP
PLATFORM
NEW BUSINESS
CONCEPT
Business revenue concept
IP ownership
Investments structure
ELECTRICAL
HOUSE/OFFICE
HEATING PORTFOLIO
•INTEGRATED HEATING in
•Floors
•Walls
•Ceilings
Partnership model
(IP, development, …)
Strategy
Technical DEMO
project
KEY APPLICATION
PROJECTS
PTC APPLICATION
CALCULATION TOOL
PTC APPLICATION
TRAINING
SALES TRAINING
STRATEGIC
PARTNERSHIP
DEVELOPMENT
MARKET & APPLICATION
KNOW-HOW
•Floor
•Wall
•Ceiling
System capability
•DEVELOP PARTNERSHIPS
---
Workshop > innovation opportunities
•Research SOLUTIONS FOR
Vinyl, Laminate, Tiles, Gypsum
board, ...
•DEMO PROJECT X to validate
business case
•Develop Business/Project case
PTC APPLICATION KNOW-
HOW
on key applications – cfr printed
heating ideas / patents
DEVELOP SALES TRAINING
Identify Target Applications for sales
based on the printed heater
IDEAS & OPPORTUNITIES
R&D
Business POTENTIAL: x€
Estimated Share:
USA + xM€
Globally + xM€
NEWBUSINESS
Develop New meaning

34. •PTC building heating industry player workshop

35. New Opportunity Search Process
Internet search
Applications and
Competition
Patent
search
Brainstorms
sessions
212 patents
150 ideas
8 markets
HENKEL
input
INPUT
12 potentials for idea sheets
OUTPUT
2 NABC
Selecting the
high potentials
Fine-tuning the ideas
Mapping
the ideas
July 1
2014
Oct 1
2014

36. From Oct 204 to now ……
October 13, 2015Slide 36
• Key value proposition of PTC heaters are in:
1. Simplicity of installation – can be installed everywhere
2. Freedom after installation – instal everywhere & move furniture
3. Safety when (accidently) isolated => wider adoptation
And other key benifits of thin film heaters:
4. Thin technology => ideal for renovation market
1. Business strategy defined
2. Detailed product concepts validates with the market and potential partners
3. Business Case completed with DEMO project
4. Partner Programs establshed

37. Printed Heater Business Strategy
October 13, 2015Slide 37
Inks Heater Heater kit
DIY (warehouse &
internet)
Professional installer
(Floor) heating
company
Building material
companies
Professional building
warehouse
Horizon 0 / 1
partner
R2R
S2S
Horizon 1 / 2

38. Thank you!