HKScan overview. Aki Laiho, Deputy CEO, COO AGM on 13 April 2016 in Helsinki

Transcription

1 HKScan overview Aki Laiho, Deputy CEO, COO AGM on 13 April 2016 in Helsinki

2 HKScan management team Aki Laiho Deputy CEO, COO Doctor of science (Techn.), CSCP Tuomo Valkonen CFO, M.Sc. (Econ.) Samuli Eskola EVP of Consumer Business in Finland and the Baltics, M.Sc. (Econ.) Göran Holm, EVP of Consumer Business in Scandinavia, DIHM Jukka Nikkinen EVP of Away from Home business, M.Sc. (Econ.) Sari Suono EVP HR, Master of Law, emba Anne Mere, CMO, MBA Markku Suvanto, EVP, Legal and Administration, LL.M. trained on the bench 2

3 Over 100 years of strategic steps Lounais-Suomen Osuusteurastamo (LSO) established Helsingin Kauppiaat established Beginning of HKScan 1988 Internationalisation begins, HK Ruokatalo s IPO LSO Foods renamed HK Ruokatalo Group renamed HKScan 2007 Focus on Nordic home markets 2012: New strategy and operating model : Restructuring Profitable growth 2014 strategy AS Rakvere Lihakombinaat, acquisition Sokołów S.A acquisition Rose Poultry A/S, acquisition Kariniemen, acquisition AS Tallegg, acquisition Scan AB, acquisition Sokołów S.A, divestment HKSCANIN YHTIÖKOKOUS 3

4 HKScan strategy implementation HARMONIZATION From a holding company to One HKScan TURNAROUND Recognition of Groupwide synergies PROFITABLE GROWTH Growth with strong brands and valueadded products 4

5 More unified Group via restructuring Harmonized production and company structure Unified ways of working Balance sheet one of the strongest in the industry in Europe Financial position gives a good basis for implementing the profitable growth strategy 5

6 : Focus on improving operational efficiency P E R F O R M A N C E 2 1 BUSINESS DEVELOPMENT OPERATIONS IMPROVEMENT TIME 6

7 Year 2015 in figures: Extracts from the financial statements

8 Whole year comparable EBIT improved, financial position stable 8

9 HKScan Group 2015 Implementation of profitable growth strategy continued Comparable operating profit increased Balance sheet remained strong and financial costs decreased Net sales decreased Business environment remained challenging 9

10 Group EBIT development *) *) Excluding non-recurring items 10

11 Profit for the period *) *) Attributable to shareholders of parent company and excluding non-recurring items 11

12 Earnings per share (EPS) *) *) Excluding non-recurring items 12

13 Group cash flow before debt service *) *) Excluding non-recurring items 13

14 Group investments 14

15 Net debt 15

16 Group personnel *) *) End of month average 16

17 Key figures 17

18 Outlook for 2016 HKScan expects operating profit (EBIT) to improve from 2015 and the economic and demand outlook to remain challenging. Therefore also sales price competition will remain tough in The Group s strategy implementation, continuous improvement projects and active sales margin management should contribute to better financial performance. 18

19 : Strategy implementation continues

20 : Renewed must-win battles ingredients for growth Renew customer, consumer and channel approach Develop brands and offerings Invest for growth Drive continuous improvement 20

21 : Focus on strengths! Home and close-by markets, optimized product portfolio N E W New markets and audience 3 M A R K E T S Enter close-by markets and audience Served markets and audiences 2 1 Optimize existing offerings and operations 2 Create extensions, enhancements, improvements 3 New concepts PRODUCT INNOVATIONS Source: Modified from Doblin, Ten Types of Innovation 21

22 HKScan strong house of brands Systematic development of brand offering for home and export markets Brand building through consumer insight and innovations HKScan s product brands as part of every meal Synergies of international offering utilized maximally 22

23 : New production plant in Rauma, Finland Focuses on the growing poultry segment Construction started, environmental permit gained, production start at the end of 2017 Investment more capacity shortens production throughput times, improves product quality enables development of innovative Kariniemen novelties for home and export markets Material, energy and environmental efficiency according to HKScan s CR programme taken into account in all procurement Finnish Institute of Occupational Health takes part in designing the facilities and operations, as well as developing occupational health and safety Investment s total value approx. EUR 80 million 23

24 TRUST. TEAM. IMPROVE. 24

25 Dividend proposal

26 Dividend proposal The parent company s distributable equity stands at EUR million including the reserve for invested unrestricted equity, which holds EUR million. The Board of Directors proposes that the company pays a dividend of EUR 0.14 per share. 26

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