Huhtamaki Oyj · OMXHEX:HUH1V
Huhtamaki Oyj — SEB Enskilda Nordic Seminar – Copenhagen 2013
29 slides from Huhtamaki Oyj's conference presentation, Jan 9, 2013
Slide 1: Strong positions for profitable growth
Investor Relations January 9, 2013 Strong positions for profitable growth SEB Enskilda Nordic Seminar – Copenhagen 2013 CEO Jukka Moisio
Slide 2: Huhtamaki 2012: Businesses
2 Huhtamaki 2012 EUR 2.0 14,000 64 31 billion in net people manufacturing operating sales in 2011 employed units countries Globally Organized Geographically Organized Flexibles Films Molded Fiber Disposables Businesses s Reporting segmentts Flexible Molded North Foodservice Films Packaging Fiber Ame
Slide 3: Global manufacturing footprint
3 Global manufacturing footprint 64 manufacturing units on 6 continents Head office Sales office / Distribution center Manufacturing unit
Slide 4: Huhtamaki has strong positions in Asia
4 Huhtamaki has strong positions in Asia • In total 14 manufacturing units and approx. 4,760 peoplel employed l d iin Asia • In 2012 approx. approx 15% of the Group’s net sales are expected to come from Asia Manufacturing unit Sales office / Distribution center
Slide 5: Financial targets
5 Financial targets • ROI 15% • Net debt/EBITDA target corridor at 2-3 • Free F cash h flow fl around d MEUR 100 annually ll • Dividend policy: 40-50% of result
Slide 6: Engines for organic growth
6 Engines for organic growth • Solid financial base • Favorable market trends – Away from home consumption Away-from-home – Flexibles benefiting from modern retail and substitution of glass and metal – Foam replacement • Sustainable products and concepts – Light-weighting – Renewable raw materials –
Slide 7: Acquired growth
7 Acquired growth • Six acquisitions completed to date: – Prisma Pack, September 2011 (Films) – Paris Packaging Packaging, Inc Inc., September 2011 (North America) – Ample Industries, Inc., November 2011 (North America) – Josco (Holdings) Limited, April 2012 (Foodservice E-A-O) – Winterfield, LLC, A
Slide 8: Long-term customer relationships
8 Long-term customer relationships • Top 5 customers account for 19% of sales, top 10 for 27% • Top 5 customers (in alphabetical order): Costco, Mars, McDonald‘s McDonald s, Nestlé, Nestlé Unilever – Our business with them consists of multiple trading relations worldwide • Key customers aim to expan
Slide 9: Growth opportunities at our target markets
9 Growth opportunities at our target markets • Advanced economies (Europe, North America, Japan, Oceania etc.) grow at 1-2% – Additional growth from substitution and innovation – Market share gains offer further growth – 1 billion people • Developing and emerging economies grow at 7% – Basic GDP gro
Slide 10: Strong financial position and...
10 Strong financial position and... Net debt / EBITDA 4 00 4,00 3,50 Covenant level 3,00 2,50 Target corridor 21 2,1 1,9 1,9 1,9 2,00 1,7 1,5 1,50 1,3 1,00 0,50 0,00 Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 * Excluding non-recurring items reported in 2011.
Slide 11: ... good debt maturity structure
11 ... good debt maturity structure • Refinancing of MEUR 400 syndicated revolving credit facility agreement with 9 banks signed in March 2011 • MEUR 75 hybrid bond redeemed in November 2011 • A total of MEUR 101 Schuldscheins signed in 2011 and 2012 • MEUR 125 bond issued in May 2012
Slide 12: Ownership
12 Ownership • 24,290 registered shareholders Shareholder distribution by sector at the end of December 2012 December 28, 2012 • 24% of shares controlled byy 24% non-profit organizations 34% – Finnish Cultural Foundation a major owner since 1943, current ownership 17.1% • 66% of shares in domestic 1
Slide 13: Financial review Q3 2012
13 Financial review Q3 2012
Slide 14: 15% net sales growth in Q1-Q3 2012
14 15% net sales growth in Q1-Q3 2012 • Organic g g growth in Molded Fiber, North America and emerging g g markets in Q3 MEUR 1800 1 756 51 1700 128 1600 1 522 56 1500 1400 Q1-Q3 2011 Organic growth Acquisitions FX impact Q1-Q3 2012 Net sales Net sales
Slide 15: Group highlights
15 Group highlights Q3 2012 Q3 Q3 Q1-Q3 Q1-Q3 FY EUR million 2012 2011 2012 2011 2011 Net sales 588.1 515.8 1,756.3 1,521.8 2,043.6 EBIT* 43.2 32.6 126.4 100.0 127.6 EBIT margin*, % 7.3 6.3 7.2 6.6 6.2 EPS* EUR EPS*, 0 32 0.32 0 24 0.24 0 96 0.96 0 69 0.69 0 87 0.87 ROI, % 11.6 10.2 9.8 ROE, % 14.5
Slide 16: Group statement of financial position
16 Group statement of financial position Q3 2012 EUR million Sep 2012 Dec 2011 Sep 2011 Total assets 2,047.7 1,909.6 1,904.8 Operating working capital 429.6 337.2 385.1 Net debt 455.9 393.4 351.3 Equity & non-controlling interest 862.5 805.0 850.6 Gearing 0.53 0.49 0.41 ROI % 11.6 9.8 10.2 ROE % 14.
Slide 17: Cash flow
17 Cash flow Q1-Q3 2012 vs. Q1-Q3 2011 MEUR 194 190 154 150 110 70 57 Q1-Q3 2012 30 Q1-Q3 2011 6 1 5 1 -10 10 -12 -7 -6 -10 -17 -50 -54 -54 -53 -88 88 -90 EBITDA Change in Net financial Taxes Capital Proceeds Other Free cash working items expenditure from selling flow capital assets
Slide 18: Trading conditions
18 Trading conditions • Trading conditions relatively stable despite general economic uncertainty; market softness evident at the end of Q3 – Demand remains healthy in certain product areas such as packaging for gg , specialty eggs, p y coffee and fast food – Eastern European markets, especially Rus
Slide 19: Outlook 2012
19 Outlook 2012 • The Group’s trading conditions are expected to remain relatively stable during the rest of 2012. • Good financial position and ability to generate a positive cash flow will enable the Group to further address profitable growth opportunities. • Growth in net sales is expected to con
Slide 20: Scheduled events in 2013
20 Scheduled events in 2013 • Results 2012 February 13, 2013 • Interim Report Q1 2013 April 25, 2013 • Annual A lGGenerall M Meeting ti A il 25 April 25, 2013 • Interim Report Q2 2013 July 19, 2013 • Interim Report Q3 2013 October 25, 25 2013
Slide 21: For further information, please contact us
For further information information, please contact us: www.huhtamaki.com » Investors [email protected] Head of Investor Relations Kia Aejmelaeus Tel. +358 10 686 7819 [email protected]
Slide 22: Appendices
22 Appendices Q3 2012
Slide 23: Flexible Packaging
23 Flexible Packaging: A leader in technology and innovation Markets and products Sales by geography Personal Food F d& Tube T b Petfood care & Labels Beverages laminates household MEUR LTM 9/2012 2011 2010 2009 Net sales 592.1 578.3 524.6 464.3 EBIT* 44.1 38.3 34.3 28.4 EBIT margin* % 7.4 6.6 6.5 6
Slide 24: North America
24 North America: A leading position based on molded fiber and shaped paperboard Markets and products Sales by market channel Consumer Goods Retail Foodservice MEUR LTM 9/2012 2011 2010 2009 Net sales 673.0 532.3 535.6 528.7 EBIT 54.7 43.5 45.4 55.5 EBIT margin % 8.1 8.2 8.5 10.5 RONA % 12 3 12.3 11
Slide 25: Foodservice E-A-O
25 Foodservice E-A-O: Global footprint brings competitive advantage Markets and products Sales by geography Consumer QSR Catering Vending Goods MEUR LTM 9/2012 2011** 2010 2009 Net sales 574.3 524.1 467.6 449.6 EBIT* 28.9 20.8 24.5 16.3 EBIT margin* % 5.0 4.0 5.2 3.6 RONA % 9.8 7.8 10.6 0.2 Strong m
Slide 26: Molded Fiber
26 Molded Fiber: Global presence and strong technological knowhow Markets and products Sales by geography Egg packaging Fruit trays MEUR LTM 9/2012 2011 2010 2009 Net sales 259.3 244.0 232.9 207.6 EBIT 25.7 20.9 21.9 17.6 EBIT margin % 9.9 8.6 9.4 8.5 RONA % 14.8 12.0 12.7 10.5 Market position • Glo
Slide 27: Films
27 Films: Leading competencies and technical knowhow Markets and products Sales by geography Technical markets Building and Pressure Hygiene and and speciality construction sensitive healthcare packing MEUR LTM 9/2012 2011 2010 2009 Net sales 191.4 177.0 163.7 154.4 EBIT* 7.8 8.4 10.8 1.1 EBIT margi
Slide 28: Increasing the weight of sustainable and non-cyclical raw materials in the portfolio
28 Increasing the weight of sustainable and non-cyclical raw materials in the portfolio Fle ible Packaging Flexible Films Foodser ice E Foodservice E-A-O AO Plastics Other Paper Recycled Fiber N th A North America i M ld d Fib Molded Fiber * In purchased value at December 31, 2010, excluding energy
Slide 29: Polymer based raw material prices
29 Polymer based raw material prices
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