Huhtamaki Oyj · OMXHEX:HUH1V
Huhtamaki Oyj — Handelsbanken Nordic Mid/Small Cap Seminar 2018
26 slides from Huhtamaki Oyj's conference presentation, May 24, 2018
Slide 1: CFO Thomas Geust, Handelsbanken Nordic Mid/Small Cap Seminar
CFO Thomas Geust Handelsbanken Nordic Mid/Small Cap Seminar Stockholm, May 24, 2018
Slide 2: We're the global specialist in packaging for food and drink
We’re the global specialist in packaging for food and drink Net sales EBIT margin Our ambition €3.0bn 9.0% The preferred global Comparable growth ROI food packaging brand 3% 13.6% Employees Manufacturing sites Our purpose 17,600 76 Helping great products Operations in reach more people, 34 countries
Slide 3: We're well positioned to deliver on our ambitions
We’re well positioned to deliver on our ambitions Who we are: Who we serve: What we offer: Main materials we use: FOODSERVICE #1 packaging company Paperboard operating globally FIBER PACKAGING #1 company globally Recycled fibers FLEXIBLE PACKAGING Plastic & other #1 company in emerging markets mater
Slide 4: Our three business areas are organized into four reporting segments
Our three business areas are organized into four reporting segments Foodservice Flexible Fiber Share of net sales packaging packaging packaging per segment in 2017 9% 27% 31% 33% Foodservice Europe-Asia- Flexible Packaging Fiber Packagingj Oceania and North America kdfgjkl dhgdfhg – 40 plants on – 2
Slide 5: Megatrends support food packaging growth
Megatrends support food packaging growth… Food packaging offers stable Innovations create more growth opportunities Food contact sustainable and easy-to-use over the cycle requirements create packaging a higher entry barrier Megatrends create opportunities for us More people Growing middle class Mor
Slide 6: Our positions offer good opportunities
… and our positions offer good opportunities Focus on consumer Major brand food and drink owners with high growth packaging ambitions as customers Product portfolio Geographic and innovations expansion Our growth opportunities Mature markets Developing markets approx. GDP growth + 2% even GDP growth
Slide 7: World changes create opportunities
World changes create opportunities Global challenges: – Marine plastics – Waste handling and processing – Food safety Changing consumer habits: – Lifestyle & convenience – Home delivery
Slide 8: We target long-term growth organically and via acquisitions
We target long-term growth both organically and via acquisitions 3-5 year growth ambition 5+% + 5+% 10+% € 5+bn p.a. if major Comparable Acquisitive acquisition growth growth ambition ambition € 4+bn with capex and add-on acquisitions Net sales Comparable growth 2010 2011 2012 2013 2014 2015 2016* 2
Slide 9: Growth and operational efficiency drive profitability improvement
Growth and operational efficiency drive profitability improvement – Summary of our long-term ambitions Comparable growth 5+% 10+% 15+% 40-50% EBIT ROI DPS margin 5+% Balancing both EBIT margin and asset velocity → To deliver steadily improving returns Acquisitive growth → To ensure cash for growth i
Slide 10: We have made major investments in growth in 2010-2017
We have made major investments in growth in 2010-2017 Short-run flexible Paper and plastic packaging, disposable packaging, Eastern Europe 2013-2017 China & HK Capex M€ 809 Folding carton, M&A spend Pressed UAE, Bags & Malaysia Europe M€2) 473 plates, US wraps, USA, Egypt, Corrugated Russia US, UK,
Slide 11: Our main footprint actions in 2017
Our main footprint actions in 2017 Decided to invest in MEUR 100 investment new unit in Finland in Arizona, US Acquired two new units in China Greenfield flexible One new, modern packaging unit in Egypt plant in South China Opened two new 11 Handelsbanken Nordic Mid/Small Cap Seminar 2018 plants in
Slide 12: Acquisition of Tailored Packaging
Acquisition of Tailored Packaging – access to a national network of distribution centers in Australia – Foodservice packaging distribution and wholesale group based in Sydney – Ability to efficiently service main states across the country and strong sourcing capability – Debt free purchase price (fo
Slide 13: Ajanta Packaging strengthens our labeling business in India
Ajanta Packaging further strengthens our labeling business in India – Leader in Pressure Sensitive labels in India with two manufacturing units – Complementary to existing Huhtamaki business with similar customer base – Expansion of printing technologies to Dry-Offset and Flexo-Gravure Combination p
Slide 14: How we support our customers' growth
How we support our customers’ growth We invest to expand We’re a safe pair of We offer a wide We take innovation our network and to hands throughout product range to into next level improve our our network make our customers’ loremipsum capabilities loremipsum lives easier loremipsum - Follow global
Slide 15: Progress towards long-term ambitions
Progress towards long-term ambitions FY FY FY FY FY Long-term 2013 2014 2015 2016 2017 Q1 2018 ambition Organic growth 3% 6% 4% 4% 3% 5% 5+% EBITDA margin 11.2% 11.6% 12.5% 13.3% 13.0% 12.4% 14+% EBIT margin 7.4% 7.8% 8.7% 9.4% 9.0% 8.3% 10+% ROI 12.1% 12.6% 14.7% 14.7% 13.6% 13.3% 15+% ROE 15.8% 16
Slide 16: Helping great products reach more people, more easily
Helping great products reach more people, more easily
Slide 17: Q1 2018: Solid comparable growth, negative currency impact
Q1 2018: Solid comparable growth, negative currency impact
Slide 18: Good underlying organic growth in Q1
Good underlying organic growth in Q1 6 Net sales growth split in Q1 18 760 -59 39 – 5% comparable growth with all 739 business segments contributing 725 700 – 8% in emerging markets; Eastern Europe, India and MEA leading – 1% from acquisitions 640 – Negative currency translation impact of MEUR 59 (a
Slide 19: Solid comparable growth across business segments
Solid comparable growth across business segments Q1 18 Q4 17 Q3 17 Q2 17 Q1 17 2017 Long-term ambitions Foodservice E-A-O 5% 6% 4% 2% 3% 4% 5-7% North America 5% 2% 2% 1% 2% 2% 2-5% Flexible Packaging 6% 9% 7% -2% 3% 4% 6-8% Fiber Packaging 5% 4% 5% 8% 4% 5% 5-7% Group 5% 5% 4% 1% 3% 3% 5+% – Flexib
Slide 20: Currency headwind impacted earnings negatively
Currency headwind impacted earnings negatively MEUR Q1 18 Q1 17 Change FY 2017 Q1 18 Highlights Net sales 725.2 739.4 -2% 2,988.7 – Currency impact on EBITDA 90.1 94.0 -4% 389.71 earnings EUR -4 million; in Margin 12.4% 12.7% 13.0%1 comparable currencies EBIT 60.0 62.8 -4% 267.71 earnings improved s
Slide 21: Inflationary pressures on raw materials
Inflationary pressures on raw materials 140 – Prices for plastic resins 130 increased across markets 120 – Prices for paperboard were 110 higher than previous year 100 – Prices of recycled fiber varied; low in Europe, high 90 in North America 80 70 60 PS PP PE +0.8% -0.4% -2.3% (end of Q1 18 vs. end
Slide 22: Debt position remained stable
Debt position remained stable Covenant level 3.5 AMBITION – Net debt/EBITDA stable at 1.8 2-3 – At the end of Q1 18 – Cash and cash equivalents MEUR 111 1.7 1.9 1.9 1.8 1.8 – Unused committed credit facilities available MEUR 311 – Funds available for acquisitions approx. MEUR 400-500 0.56 0.66 0.64
Slide 23: Solid financial position
Solid financial position Mar Dec Mar MEUR 2018 2017 2017 Total assets 2,938 2,931 2,946 – Dividend of approx. MEUR 83 paid Operating working capital 562 512 533 early May Net debt 712 698 681 – Dividend of €0.80 per share Equity & non-controlling interest 1,220 1,208 1,222 → Payout ratio 42% Gearing
Slide 24: Outlook 2018
Outlook 2018 The Group’s trading conditions are expected to remain relatively stable during 2018. The good financial position and ability to generate a positive cash flow will enable the Group to address profitable growth opportunities. Capital expenditure is expected to be approximately at the same
Slide 25: Financial calendar 2018
Financial calendar 2018 July 20 Half-yearly Report 2018 October 25 Q3 18 Interim Report 25 Handelsbanken Nordic Mid/Small Cap Seminar 2018
Slide 26: Thank You!
Thank You! For further information, please contact us: www.huhtamaki.com » Investors [email protected]
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