HKScan Corporation Financial statements bulletin for CEO Matti Perkonoja Press conference, 19 February 2010

Transcription

1 HKScan Corporation Financial statements bulletin for 2009 CEO Matti Perkonoja Press conference, 19 February 2010

2 Group structure HKScan Corporation Net sales in 2009: EUR : m*, CEO Matti Perkonoja Finland Sweden Baltics Poland net sales in 2009: EUR 732.5m HKScan Finland Oy Managing director Jari Leija net sales in 2009: EUR m Scan AB Managing director Denis Mattsson net sales in 2009: EUR 156.9m net sales in 2009: EUR 251.7m** AS Rakvere Saturn Nordic Lihakombinaat Holding AB Managing director Sokolów S.A. Anne Mere Managing director AS Tallegg Boguslaw Miszczuk Managing director Teet Soorm Surrey Uppsala Örebro Skara Halmstad Strövelstorp Bjæverskov Ullånger Eura Säkylä Turku Linköping Visby Kristianstad Swinoujscie Poznan Luuleå Skellefteå Stockholm Warsaw Tarnow Kolo Forssa Mellilä Vantaa Czyzew Outokumpu Tallinn St Petersburg Rakvere Riga Sokolow Debica Jaroslaw Viiratsi Vilnius * Between segments EUR million ** Joint venture Saturn Nordic Holding owned 50/50 by HKScan and Danish Crown holds 100% of shares in Sokolów. In 2009, half of Sokolów s net sales i.e. EUR million were accounted for in HKScan Group figures. Production facility Sales office 03/2009 2

3 Group structure HKScan Corporation Support processes Support processes Örebro Skara Ullånger Uppsala Luuleå Skellefteå Eura Säkylä Turku Linköping Stockholm Forssa Mellilä Vantaa Outokumpu Tallinn St Petersburg Rakvere Viiratsi Finland Sweden Baltics Poland Business processes Surrey Halmstad Strövelstorp Bjæverskov Visby Kristianstad Swinoujscie Warsaw Poznan Kolo Riga Vilnius Czyzew Sokolow Debica Tarnow Jaroslaw Business processes Business processes Production facility Sales office 03/ M.Perkonoja

4 HKScan Corporation Q4/ 2009 Q4/ Net sales, EUR mill EBIT, EUR mill EBIT margin, % Profit before taxes EPS, EUR The Group s competitiveness grew stronger and supplier shares increased in all market areas. Reported EBIT increased by 45% and came to EUR 55.1 million (EUR 38.1m) EBIT exclusive of the EUR 12.7 million in non-recurring items was EUR 67.8 million (EUR 38.1m) Owing to improved profitability and reduced financing costs, pre-tax profit quadrupled to EUR 37.3 million (EUR 9.0m). Owing to exchange rate fluctuations, full-year net sales in euro declined by 7.4% but remained at the previous year s level when calculated at fixed rates. The share offering executed in December strengthened the Group s balance sheet structure. M.Perkonoja

5 Group EBIT Bridge Q4 /2008 vs. Q4 /2009 Net effect EUR 3.1 mill. M

6 Group EBIT Bridge (one-off items separately) Q4 /2008 vs. Q4 /2009 Net effect EUR 8.9 mill. Net effect EUR 3.1 mill. M

7 Group EBIT Bridge Q1-Q4 /2008 vs. Q1-Q4 /2009 Net effect EUR 17.0 mill. M

8 Group EBIT Bridge (one-off items separately) Q1-Q4 /2008 vs. Q1-Q4 /2009 Net effect EUR 29.7 mill. Net effect EUR 17.0 mill. M

9 Exchange rate trends Euro against the Swedish crown, SEK 5,0 Euro against the Polish zloty, PLN 4,5 4,0 3,5 3, Source: European Central Bank M.Perkonoja

10 Market area: Finland Q4/ 2009 Q4/ Net sales, EUR mill EBIT, EUR mill EBIT margin, % Profitability continued to rise in line with plans throughout the financial year and improved considerably from The fall of 1.1% in net sales came from a planned cutback in export sales. A cost provision of EUR 1.1 million was recognized in In 2009 HK Ruokatalo o grew domestic market sales by 10% and gained higher supplier shares o maintained excellent delivery reliability, thus enhancing customer satisfaction o enjoyed rising sales of processed meats throughout the year o delivered good holiday season sales o paid particular attention to responsibility in business M.Perkonoja

11 Market area: Sweden Q4/ 2009 Q4/ Net sales, EUR mill EBIT, EUR mill EBIT margin, % Scan AB s performance improved throughout the year. In terms of profitability of operations, the year 2009 was the best in company history. In Q4, EBIT exclusive of non-recurring items climbed to EUR 14.9 million (EUR 8.6m). Non-recurring charges of EUR 10.3 million were recognized in The decline of the crown against the euro reduced net sales and EBIT in euros. The year 2009 at Scan: Launch of 3-year streamlining programme Establishment of procurement company SLS Introduction of new organization and management model Introduction of higher value added products Streamlining of commercial operations M.Perkonoja

12 Market area: Baltics Q4/ 2009 Q4/ Net sales, EUR mill EBIT, EUR mill EBIT margin, % HKScan s Baltic Group posted an excellent financial result. Net sales fell by 6.7% on the year. Demand in all Baltic states reflected the deep economic recession and decline in consumer purchasing power. Rakvere Lihakombinaat and Tallegg in 2009: Highly demanding business environment EBIT increased and market standings grew stronger Successful cost control Operational flexibility Product launches in line with the spirit of the times M.Perkonoja

13 Market area: Poland *) Q4/ Q4/ Liikevaihto, Meur Liikevoitto, Meur Liikevoitto % *) Luvut tarkoittavat HKScanin osuutta (50%) Sokolów-konsernin luvuista. In Poland, Sokolów continued to grow its net sales and improve its profitability in Q4/2009. Sokolów delivered 4.4% EBIT margin in Q4. Measured in zloty, Sokolów's net sales grew by 14% on the year but in euro fell short of the year 2008 due to changes in exchange rates. The year 2009 at Sokolów: Sales grew by both volume and value, successful domestic market sales successful Exports increased Costs under control The economic recession had no significant impact on the food-buying decisions of Polish consumers M.Perkonoja

14 Breakdown of net sales and EBIT Q4/2009 Net sales EUR million EBIT ** EUR 18.4 million Baltics 6.7% Poland 11.5% Finland 32.7% Baltics 9.6% Poland 14.2% Finland 31.3% Sweden 49.1% Sweden 44.9% * shares calculated including internal sales * shares calculated exclusive of Group administration costs ** reported 14

15 Breakdown of net sales and EBIT Q4/2009 Net sales EUR million EBIT ** EUR 24.2 million Baltics 6.7% Poland 11.5% Finland 32.7% Baltics 7.6% Poland 11.1% Finland 24.4% Sweden 49.1% Sweden 56.9% * shares calculated including internal sales * shares calculated exclusive of Group administration costs ** exclusive of non-recurring items 15

16 Breakdown of net sales and EBIT Full-year 2009 Net sales EUR million EBIT** EUR 55.1 million Baltics 7.2% Poland 11.6% Finland 33.6% Baltics 15.6% Poland 14.8% Finland 43.0% Sweden 47.6% Sweden 26.6% * shares calculated including internal sales * shares calculated exclusive of Group administration costs ** reported M.Perkonoja

17 Breakdown of net sales and EBIT Full-year 2009 Net sales EUR million EBIT ** EUR 67.8 million Baltics 7.2% Poland 11.6% Finland 33.6% Baltics 13.2% Poland 12.5% Finland 37.9% Sweden 47.6% Sweden 36.4% * shares calculated including internal sales * shares calculated exclusive of Group administration costs ** exclusive of non-recurring items M.Perkonoja

18 Quarterly EBIT* development EUR million 60 55,3 55, ,4 38,1 Q1 Q ,8 6,3 9,6 2,4 24,1 6,6 7 13,1 13,7 19,2 15,1 11,5 9,2 6,1 15,3 12,3 4,4 18,4 14,3 14,1 8,2 Q3 Q4 Full year * reported M.Perkonoja

19 Future outlook Consumer demand for food is expected to remain steady in the Group s home markets and export markets are anticipated to pick up somewhat towards the end of the year. In addition, the ongoing streamlining programmes and the restructuring programme in Sweden in particular provide the foundation for solid business development. The Group's full-year EBIT exclusive of non-recurring items is estimated to surpass that in 2009 despite the considerable challenges posed by the markets in the early part of the year. 19 M.Perkonoja

20 HKScan income statement (EUR million) NET SALES Change in inventories of finished goods and works in progress Work performed for own use and 0.9 capitalized 1.3 Other operating income Share of associates results Materials and services Employee benefits expenses -306, Depreciation and impairment Other operating expenses EBIT as % of net sales Financial income Financial expenses Share of associates results PROFIT / LOSS BEFORE TAXES as % of net sales Income taxes PROFIT / LOSS FOR THE PERIOD Attributable to equity holders of the 29.9 parent 4.7 Attributable to minority intererests EPS, EUR, undiluted/diluted

21 HKScan statement of comprehensive income (Meur) Profit / loss for the period OTHER COMPREHENSIVE INCOME (after taxes) Exchange differences on translating foreign operations Available-for-sale investments Cash flow hedging TOTAL OTHER COMPREHENSIVE INCOME TOTAL COMPREHENSIVE INCOME FOR THE PERIOD TOTAL COMPREHENSIVE INCOME FOR THE PERIOD ATTRIBUTABLE TO: Equity holders of the parent Minority interests Total

22 Consolidated statement of financial position (EUR million ASSETS Non-current assets Intangible assets Goodwill Property, plant and equipment Shares in associates Trade and other receivables Other long-term investments Deferred tax asset Non-current assets Current assets Inventories Trade and other receivables Income tax receivables Other financial assets Cash and cash equivalents Current assets ASSETS

23 Consolidated statement of financial position (EUR million) EQUITY AND LIABILITIES Equity attributable to equity holders of the parent Minority interest Total shareholders equity Deferred tax liability Non-current interest-bearing liabilities Non-current non-interest bearing liabilities Pension obligations Non-current provisions Non-current liabilities Current interest-bearing liabilities Trade and other payables Income tax liability Current provisions Current liabilities EQUITY AND LIABILITIES M.Perkonoja

24 Cash flow statement (EUR million) Operating activities EBIT and depreciation (incl. adjustments) Change in net working capital Financial income and expenses Taxes Net cash flow from operating activities Investing activities Gross investments in fixed assets Disposals of fixed assets Investments in subsidiary Shares in associates purchased Loans granted and repaid Net cash flow from investing activities Cash flow before financing activities Financing activities Proceeds from share offering Payments received on hybrid bond Repayment of hybrid bond Loans raised and repaid Interest on hybrid bond Dividends paid Purchase of treasury shares Net cash flow from financing activities Change in cash and cash equivalents M.Perkonoja

25 Cash flows after investments EUR million

26 Investments EUR mill. * exclusive of enterprise value on Scan AB acquisition M.Perkonoja

27 Financial highlights EPS, diluted, EUR *) 0.64 *) 0.10 Equity per share, , EUR *) Dividend per share, EUR **) Equity ratio, % Adjusted number of shares in millions - average during the financial year at end of financial year fully diluted Production-related investments, EUR mill Employees, average *) The interest accrued on the hybrid bond has been deducted from earnings when calculating earnings per share. **) Based on the Board of Directors dividend recommendation Per-share data for the comparison year has been adjusted for the share offering in

28 Financial targets and target achievement Target Achievement EBIT over 5% of net sales Return on equity over 15% Equity ratio over 40% Dividend at least 30% of distribution net earnings 34.5 *) *) Based on Board of Directors dividend recommendation M.Perkonoja

29 HKScan s development 3. New profitable growth 2. Scan s consolidation and development programmes 1. Birth of HKScan Industrial restructuring in Finland Economic recession M.Perkonoja

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