AGM. April 24, CEO s review. Huhtamäki Oyj Annual General Meeting of Shareholders. CEO Jukka Moisio

Transcription

1 1 AGM April 24, 2014 CEO s review Huhtamäki Oyj Annual General Meeting of Shareholders Helsinki, April 24, 2014 CEO Jukka Moisio

2 Group Executive Team 2 Jukka Moisio CEO Clay Dunn EVP, North America Thomas Geust Director, Finance Olli Koponen EVP, Molded Fiber Eric Le Lay EVP, Foodservice Europe-Asia-Oceania Sari Lindholm SVP, Human Resources Shashank Sinha EVP, Flexible Packaging Peter Wahsner EVP, Films

3 Huhtamaki businesses in brief 3 Busines sses Foodservice disposables* Flexible packaging Molded fiber packaging Films Share of ne et sales** 57% 25% 10% 8% Operatio ons in North America Europe Asia Oceania Middle East Africa Europe Asia South America Europe Oceania South America Africa Europe North America South America Asia In total EUR 2.3 billion in net sales** 14,362 people employed** 30 operating countries 61 manufacturing units * Includes reporting segments North America and Foodservice E-A-O ** FY 2013 figures

4 4 Group highlights in 2013 EUR million % change Net sales 2, , % EBIT* % EBIT margin*, % EPS*, EUR % ROI*, % ROE*, % Free cash flow % 6% like-for-like sales growth Continued improvement in Molded Fiber and Foodservice E-A-O Growth in North America but earnings burdened by ongoing investments Board proposes a dividend of EUR 0.57 per share (+2%) * Excluding NRI of MEUR in FY 2013

5 2013 in brief 5 Implementation of quality growth strategy continued New unit and product portfolio extension in North America Foodservice product range expansion organically and with a targeted acquisition Growth in Russia supported by expansion of Molded Fiber production premises inaugurated as part of the 20th anniversary celebrations Efficiency improvement measures Review of loss-making foodservice business in Italy concluded with divestment Selected restructuring measures to improve competitiveness Small improvements across the board

6 Significant capability increase in North America 6 WATERVILLE FULTON COLEMAN In total EUR 215 million invested in growth in North America during SACRAMENTO LOS ANGELES DE SOTO/ KANSAS CITY PARIS 150 million people within a 500 mile radius from Batavia HAMMOND MARION HOPKINSVILLE FRANKLIN BATAVIA ALBERTVILLE ANDALUSIA NEW VIENNA TULTITLAN = Acquired units since 2011 = Expansion

7 Further initiatives to support growth 7 Group-wide communication of renewed Code of Conduct Same presentation with all 14,300 employees materials in 25 languages Introduction of Whistleblowing mechanism globally First global employee engagement g survey conducted Excellent response rate of 80% Improvement actions currently being implemented Renewal of the Huhtamaki brand Activities to enhance customer experience

8 Our competitive advantages Huhtamaki has resources and willingness to meet the key customer expectations 8 Excellent emerging market footprint International and multi-cultural operations and culture High standards d in all markets Recognized technological know-how Financial health supports growth momentum Sustainable products and concepts

9 9 Emerging markets play an important role in our portfolio 26% of net sales 46% of employees 44% of manufacturing g units Emerging markets as defined in IMF World Economic Outlook.

10 Our growth opportunities 10 Developed markets - Growth0-1% 0-1 billion people - Average purchase power USD 35,000 /capita Developing and emerging markets - Growth5-6% - 4 billion people - Average purchase power USD 8,000 /capita Other countries - Growth approx. 5% - 2 billion people - Average purchase power below USD 2,500 /capita

11 We have a two-fold growth strategy 11 Customer needs drive organic growth Acquisitions provide further boost Market growth, especially Look to acquire in emerging markets businesses that make us Geographical expansion stronger New product Consolidation, market position and growth at development developed markets Market share gains Growth at fast-growing emerging markets Our area of expertise is in food & drink consumer packaging

12 Our customer relationships are long-standing 12 Top 5 customers* Top 5 customers 20% of net sales Costco, Mars, McDonald s, Nestlé, Unilever Top 10 customers 26% Key customers aim to expand and target significant growth especially in emerging markets especially in emerging markets Our overall aim is to help our customers succeed and sell more Huhtamaki is a "safe pair of hands" We want to be well aligned with our customers, globally and locally * In alphabetical order in 2013.

13 Sustainability initiatives are increasingly important t to our customers in product development 13 Food contact approval and fit-for-purpose are always the starting gpoint in developing new packaging g Ways to improve the sustainability of packaging Choices of raw materials Material efficiency Lightweighting Recyclability Seemingly small improvements may have a major effect on the product s total environmental effect!

14 Case Costa Coffee: Product renewal 14 We innovated a new 2-layer paper cup for Costa Coffee to replace the 3- layer cup they were using before The new cup was developed and launched together with Costa Coffee brand renewal The new cup Looks better Has the same insulation properties Weighs 40% less per cup

15 Key aspects of our sustainability 15 Health and Energy safety efficiency Sourcing and material efficiency Financial strength Closing the material loop Emissions High standards for health, safety and hygiene Financial health and high social and ethical standards are a prerequisite Major brand owners have high requirements and audit our operations regularly

16 Significant investments are bringing shareholder returns CAPEX M 121 5% of net sales MEUR Dividend growth since 2009 Finland 40 1% of operations 30 65% of dividends * * The Board s proposal

17 2013 was a good year for Huhtamaki 17 Major steps taken to build future growth Building capability and capacity in North America Significant ifi actions to improve efficiency i of operations Initiatives to build employee engagement and the Huhtamaki brand Solid financial position Improvement opportunities for future years Optimistic view of the future and several exciting initiatives!

18 18 Q1 / 2014 Q Highlights

19 5% comparable net sales growth in Q MEUR Strong 13% comparable growth in emerging markets, especially Eastern Europe Q Organic growth Currency impact Acquisitions, divestments & other Q Negative currency translation impact of MEUR 30 on net sales

20 Group highlights Q EUR million Q Q Change FY 2013 Net sales % 2,342.2 EBITDA* % EBITDA margin* 11.3% 10.5% 10.9% EBIT* % EBIT margin* 7.3% 6.5% 7.1% EPS*, EUR % 1.21 ROI* 12.1% 12.9% 12.1% ROE* 16.1% 15.4% 15.8% Capital expenditure % Free cash flow % 56.0 Positive volume development biggest contributor to comparable net sales growth Volumes and good operational efficiency led to earnings improvement * Excluding NRI of MEUR in FY 2013

21 Comparable growth by business segment* 21 Q1 Q4 Q3 Q2 Q1 FY Foodservice E-A-O 3% 3% 3% 1% -1% 2% North America 3% 6% 7% 3% 3% 5% Flexible Packaging 7% 9% 6% 3% -1% 4% Molded Fiber 10% 10% 6% 5% 4% 6% Films 9% 2% 3% -7% -1% -1% Group total 5% 6% 5% 2% 1% 3% Good comparable growth across all business segments Strongest growth in Eastern Europe, South-East Asia and Brazil * In constant currencies, excluding acquisitions and divestments.

22 22 Group statement of financial position EUR million Mar 2014 Dec 2013 Mar 2013 Total assets 2, , ,086.0 Operating working capital Net debt Equity & non-controlling interest Gearing ROI* 12.1% 12.1% 12.9% ROE* 16.1% 1% 15.8% 15.4% Stable financial position Strong focus on effective working capital management; working capital days down * Excluding EUR million NRI in Dec 2013.

23 Outlook unchanged 23 The Group s trading conditions are expected to remain relatively stable during The good financial position and ability to generate a positive cash flow will enable the Group to continue to address profitable growth opportunities. Capital expenditure is expected to be at the same level as in A significant part of the investments are expected to be directed d to enhance growth in the emerging markets.

24 24 Thank You!