Strong positions for profitable growth

Transcription

1 Investor Relations January 9, 2013 Strong positions for profitable growth SEB Enskilda Nordic Seminar Copenhagen 2013 CEO Jukka Moisio

2 Huhtamaki EUR ,000 billion in net people manufacturing operating sales in 2011 employed units countries Globally Organized Geographically Organized Flexibles Films Molded Fiber Disposables Reportin g segment ts s Businesses Flexible Packaging Films Molded Fiber North America Foodservice E-A-O Share of net sales 26% 8% 11% 30% 25% NB: Definition of emerging markets based on IMF's World Economic Outlook report 2012.

3 3 Global manufacturing footprint 64 manufacturing units on 6 continents Head office Sales office / Distribution center Manufacturing unit

4 Huhtamaki has strong positions in Asia 4 In total 14 manufacturing units and approx. 4,760 people employed in Asia In 2012 approx. 15% of the Group s net sales are expected to come from Asia Manufacturing unit Sales office / Distribution center

5 Financial targets 5 ROI 15% Net debt/ebitda target corridor at 2-3 Free cash flow around MEUR 100 annually Dividend policy: 40-50% of result

6 Engines for organic growth 6 Solid financial base Favorable market trends Away-from-home consumption Flexibles benefiting from modern retail and substitution of glass and metal Foam replacement Sustainable products and concepts Light-weighting Renewable raw materials Recyclability Emerging market footprint Leading market positions and long-standing customer base

7 Acquired growth 7 Six acquisitions completed to date: Prisma Pack, September 2011 (Films) Paris Packaging, Inc., September 2011 (North America) Ample Industries, Inc., November 2011 (North America) Josco (Holdings) Limited, April 2012 (Foodservice E-A-O) Winterfield, LLC, August 2012 (North America) Webtech Labels Private Limited, November 2012 (Flexible Packaging) In total MEUR 230 of annual net sales acquired with MEUR 152 As a result the Group s capabilities in foodservice disposables have been significantly strengthened in North America and Asia Strong contribution to a combined growth of MEUR 191 in net sales and MEUR 20 in EBIT in North America and Foodservice E-A-O segments in Q1-Q3 Q3 2012

8 Long-term customer relationships 8 Top 5 customers account for 19% of sales, top 10 for 27% Top 5 customers (in alphabetical order): Costco, Mars, McDonald s s, Nestlé, Unilever Our business with them consists of multiple trading relations worldwide Key customers aim to expand and target significant growth Emerging markets with double-digit growth Sustainable products (renewable raw materials, recyclable, light-weighted) g Huhtamaki has resources to meet the key customer expectations Financial and people resources Emerging market footprint Sustainable product concepts, material knowhow and technologies

9 Growth opportunities at our target markets 9 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 growth and higher disposable income Advances in modern retail and away-from-home consumption 4 billion people in fast-growing countries 2 billion people in other countries

10 Strong financial position and ,00 Net debt / EBITDA 3,50 Covenant level 3,00 2,50 Target corridor 2,00 1,50 1,3 1,5 1,7 1,9 1,9 21 2,1 1,9 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.

11 ... good debt maturity structure 11 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

12 Ownership 12 24,290 registered shareholders at the end of December 2012 Shareholder distribution by sector December 28, % of shares controlled by 24% non-profit organizations Finnish Cultural Foundation a major owner since 1943, current ownership 17.1% 66% of shares in domestic 18% ownership 34% 6% 9% 9% Non-profit organizations Households Financial and insurance companies Private companies Public-sector organizations Foreign ownership incl. nominee registered shares

13 Financial review Q

14 15% net sales growth in Q1-Q Organic growth in Molded Fiber, North America and emerging g markets in Q3 MEUR Q1-Q Net sales Organic growth Acquisitions FX impact Q1-Q Net sales

15 Group highlights Q Q3 Q3 Q1-Q3 Q1-Q3 FY EUR million Net sales , , ,043.6 EBIT* EBIT margin*, % EPS*, EUR ROI, % ROE, % Free cash flow Profitability improved in all segments excluding Films Strong performance in North America and Molded Fiber Continued improvement of EPS, ROI and ROE * Excluding NRI of MEUR -7.0 (net amount) in FY 2011 and MEUR -7.8 in Q1-Q and Q

16 Group statement of financial position Q EUR million Sep 2012 Dec 2011 Sep 2011 Total assets 2, , ,904.8 Operating working capital Net debt Equity & non-controlling interest Gearing ROI % ROE %

17 Cash flow Q1-Q vs. Q1-Q MEUR Q1-Q Q1-Q EBITDA -54 Change in working capital -88 Net financial items Taxes Capital expenditure Proceeds from selling assets Other Free cash flow

18 Trading conditions 18 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 eggs, specialty coffee and fast food Eastern European markets, especially Russia relatively unaffected Pace of underlying market growth slowing down in Asia Market uncertainty t reflected in increasing i customer cautiousness Avoidance of inventory build-up Order behavior leading to smaller lot sizes and last minute confirmations Focus on optimizing working capital Consumer spending more pragmatic; private label gains market share in many product categories

19 Outlook The Group s trading conditions are expected to remain relatively stable during the rest of 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 continue. Earnings per share (EPS) are expected to increase significantly compared to the EUR 0.87 (excluding NRI) achieved in Capital expenditure is expected to be below EUR 100 million. Short-term risks and uncertainties: Volatile raw material and energy prices as well as movements in currency rates are considered to be relevant short-term business risks and uncertainties in the Group's operations. General economic and financial market conditions can also have an adverse effect on the implementation of the Group's strategy and on its business performance and earnings.

20 Scheduled events in Results 2012 February 13, 2013 Interim Report Q April 25, 2013 Annual General Meeting April 25, 2013 Interim Report Q July 19, 2013 Interim Report Q October 25, 2013

21 For further information, please contact us: Investors Head of Investor Relations Kia Aejmelaeus Tel

22 Appendices 22 Q3 2012

23 Flexible Packaging: A leader in technology and innovation 23 Markets and products Food & Tube Petfood Beverages laminates Personal care & household Labels Sales by geography MEUR LTM 9/ Net sales EBIT* EBIT margin* % RONA % Major customers Strong market position in Biscuits and confectionary in India Coffee in Thailand and Vietnam Chocolate in Europe Tube laminates and pet food worldwide Major players Competitive advantages Excellent technical knowhow Leading in South and Southeast tasia Strong anchor in Europe High focus on innovation, NPD Growth potential 6-8% p.a. - mainly di driven by Asia and selected market segments in Europe * Excluding NRI of MEUR -7.8 in LTM and 2011.

24 North America: A leading position based on molded fiber and shaped paperboard 24 Markets and products Sales by market channel Consumer Goods Retail Foodservice MEUR LTM 9/ Net sales EBIT EBIT margin % RONA % Major customers Major players Strong market positions Leading position in shaped containers for frozen desserts Leading gposition in premium branded tableware market (Chinet products) Competitive advantage Chinet brand Consumer reputation Paper forming expertise and systems capability Operation and supply chain excellence Molded fiber technology and cost position Growth potential 3-4% pa p.a. - driven by Retail and Foodservice

25 Foodservice E-A-O: Global footprint brings competitive advantage 25 Markets and products QSR Catering Consumer Goods Vending Sales by geography MEUR LTM 9/ ** Net sales EBIT* EBIT margin* % RONA % Strong market positions Europe: #1 Asia-Oceania: #1 Customers Major players Competitive advantage Long term presence in emerging markets, global network and footprint Leading in sustainable solutions - BioWare Paper forming expertise High quality standards Growth potential ~5% p.a. driven by Eastern Europe and Asia *Excluding NRI of MEUR 0.8 (net amount) in LTM and ** Restated with positive net impact of MEUR 42 in 2011 net sales.

26 Molded Fiber: Global presence and strong technological knowhow 26 Markets and products Sales by geography Egg packaging Fruit trays MEUR LTM 9/ Net sales EBIT EBIT margin % RONA % Market position Global #1 Major customers Retailers Packers Major players Competitive advantage Local presence In-house proprietary technology Experienced team In-house recycled paper sourcing Growth potential 3-4% p.a. driven by emerging markets

27 Films: Leading competencies and technical knowhow 27 Markets and products Sales by geography Building and construction Pressure sensitive Hygiene and healthcare Technical markets and speciality packing MEUR LTM 9/ Net sales EBIT* EBIT margin* % RONA % Market position Global leader in release films Major customers Major players Competitive advantage Strong technical knowhow, especially in silicone coating Global manufacturing capability High focus on innovations Competence in release film applications and bio films Growth potential 5-10% p.a. * Excluding NRI of MEUR -3.8 in 2009.

28 Increasing the weight of sustainable and non-cyclical raw materials in the portfolio 28 Flexible Packaging Films Foodservice E-A-O Plastics Other Paper Recycled Fiber North thamerica Molded d Fiber * In purchased value at December 31, 2010, excluding energy cost.

29 Polymer based raw material prices 29