AGM. April 24, CEO s review. Huhtamäki Oyj Annual General Meeting of Shareholders Helsinki, April 24, 2012 CEO Jukka Moisio

Transcription

1 AGM April 24, 2012 CEO s review Huhtamäki Oyj Annual General Meeting of Shareholders Helsinki, April 24, 2012 CEO Jukka Moisio

2 Group Executive Team 2 Jukka Moisio CEO Timo Salonen CFO Juha Salonen SVP, Administration and dlegal Clay Dunn EVP, North America Suresh Gupta EVP, Flexible Packaging Olli Koponen EVP, Molded Fiber Eric Le Lay EVP, Foodservice Europe-Asia-Oceania Sari Lindholm SVP, Human Resources Peter Wahsner EVP, Films

3 Huhtamaki in EUR ,000 billion in people manufacturing operating net sales* employed units countries Globally Organized Geographically Organized Flexibles Films Molded Fiber Disposables Businesse es Reportin g segment ts Flexible Packaging Films Molded Fiber North America Foodservice E-A-O Share of net sales* 28% 9% 12% 26% 23% * in 2011

4 4 Group highlights 2011 EUR million Net sales 2,044 1,952 EBIT* EBIT margin* % Earnings per share (EPS)*(EUR) ROI % ROE % Free cash flow Net sales growth due to organic growth and acquisitions Profitability and cash flow satisfactory *Excluding non-recurring items of EUR -7.0 million in 2011

5 Achievements Growth in all business segments 5% total growth vs Strong emerging market growth 14% vs Re-entry into acquisitive growth 3 transactions announced and closed in transaction announced and closed in 2012 Solid financial position Debt maturities extended during 2011

6 Three acquisitions completed in Ample Industries and Paris Packaging specialty folding carton converters in the U.S. Net sales in 2011 MEUR 90 Enterprise value MEUR 45 Prisma Pack a market leader in hygienic films in Brazil Net sales in 2011 MEUR 35 Enterprise value MEUR 17 MEUR 62 invested in acquisitions in 2011 MEUR 29 growth in Group net sales from acquisitions in 2011, additional MEUR 100 expected in 2012

7 7 Emerging markets are important for us 6% 13% 3% 2% 24% of net sales from emerging markets 5,900 out of 14,000 employees in emerging markets 26 out of 61 manufacturing units in emerging markets

8 Strong growth with key customers 8 Top five (5) customers account for 20% of Group sales, top 10 for 28% Top five (5) customers (in alphabetical order): Kraft, Mars, McDonald s, Nestlé, Unilever Growth with key customers stronger than Group average Key customers growth plans focused on emerging markets Footprint in emerging markets, especially in Asia and in Latin America, has been further strengthened Significant growth investments in existing units Acquired new units

9 Strategy: Quality Growth 9 Organic growth 5% in 2011, Flexible Packaging segment s growth rate stronger than Group average Three (3) acquisitions iti completed in 2011 One acquisition completed in 2012, screening continues Continue investing in organic growth To meet market and customer growth To grow with new products and innovations

10 Flexible Packaging: Strong positions in Europe and in emerging markets 10 % Net sales 2011 MEUR highlights Net sales grew 10% to MEUR 578 Healthy growth continued in Asia, (dampened by flooding in Thailand) Robust growth of 12% in Europe Decision to close a loss making unit in New Zealand * EBIT % RONA * Excluding non-recurring items of EUR -7.8 million in 2011

11 Films: Capability to serve global customers locally 11 % Net sales 2011 MEUR highlights Acquisition of Prisma Pack in Brazil New manufacturing unit in Thailand Significant strengthening of positions in the global market for hygienic films * EBIT % RONA * Excluding non-recurring items of EUR -3.8 million in 2009

12 North America: Growth oriented product portfolio 12 % Net sales 2011 MEUR highlights Entry into the folding carton packaging business through two (2) acquisitions iti Stronger capability to serve foodservice customers Good performance of Chinet product line extensions in the retail trade EBIT % RONA

13 Molded Fiber: Global know-how in recycled fiber 13 % Net sales 2011 MEUR highlights Stable sales development Share of high-end egg packaging increasing Rapid changes in raw material prices Organic growth continued in emerging markets EBIT % RONA 13

14 Foodservice Europe-Asia-Oceania: Leading position in Asia and in Europe 14 % Net sales 2011 MEUR highlights Continued growth in Eastern Europe and in Asia Growth in paper cups, especially high-end insulated cups Restructuring t activities iti in German plastics unit * EBIT % RONA * Excluding non-recurring items of EUR 0.8 million in 2011

15 Q Q Highlights

16 Key figures Q EUR million Q Q FY 2011 Net sales ,043.6 EBIT* EBIT margin*, % EPS*, EUR ROI %** ROE %** Free cash flow Positive earnings development supported by volume growth and favorable mix Improvement in ROI and ROE compared to end of 2011 *Excluding non-recurring items of EUR -7.0 million in full year 2011 ** 12 month rolling

17 Growth by business segment Q Comparable growth* Q FY 2011 Flexible Packaging 5% 12% Films 5% 6% North America 11% 1% Molded Fiber 11% 3% Foodservice EAO 5% 3% Group total 7% 5% * In constant currencies, excluding acquisitions

18 Group statement of financial position Q EUR million Mar 2012 Dec 2011 Mar 2011 Total assets 1, , ,790.7 Operating working capital Net debt Equity & non-controlling interest Gearing ROI %* ROE %* * 12 month rolling

19 Acquisition of Asian foodservice packaging supplier Josco in April Net sales of MEUR 70 in 2011 Market leader in China and in Hong Kong Two (2) manufacturing units and two (2) distribution centers in China Employs 1,350 people Strengthens further the Group s position as a leading foodservice packaging supplier in the fast growing Asian markets Debt free purchase price MEUR 67

20 Josco s product range is complementary 20 Core competence and capacity in hot paper cups Complete range of sustainable single use tableware based on bagasse and dpla Highly competitive integrated network of external suppliers in China

21 Huhtamaki has strong positions in Asia 21 In total 12 manufacturing units and 4,400 people employed in Asia In 2012 approximately 15% of the Group s net sales are expected to come from Asia Manufacturing unit Sales unit / distribution center

22 Outlook The Group s trading conditions are expected to remain relatively stable during 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 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 i market conditions can also have an adverse effect on the implementation of the Group's strategy and on its business performance and earnings.

23 Thank you!