Hkfoods Oyj Class A · OMXHEX:HKFOODS
Hkfoods Oyj Class A — HKScan — Shareholder Meeting (April 2019)
28 slides from Hkfoods Oyj Class A's shareholder meeting presentation, Apr 11, 2019
Slide 1: A review of HKScan's year 2018 and balancing of financial situation
A review of HKScan's year 2018 and balancing of financial situation Tero Hemmilä, CEO HKScan Annual General Meeting, Turku
Slide 2: Year 2018 Financials
Year 2018 Financials HKSCAN AGM 11.4.2019
Slide 3: HKScan's year 2018
HKScan’s year 2018 Highlights Lowlights • EBIT improved in Sweden despite of • Challenges related to the Rauma unit had weaker Swedish Krona a negative impact on result • Negative impact related to the Rauma • Sales of red meat decreased in Sweden poultry unit challenges decreased and in Finland. In
Slide 4: HKScan Group 2018
HKScan Group 2018 EUR million 2018 2017 Net Sales 1 715,4 1 808,1 EBIT -49,5 -40,3 - % of net sales -2,9 % -2,2 % Profit/loss for the period -51,2 -39,5 Comparable EBIT -47,5 -17,6 - % of net sales -2,8 % -1,0 % EPS,EUR -1,00 -0,79 Return on capital employed (ROCE) before taxes, % -7,4 % -6,3 % Comp
Slide 5: Financial summary
Financial summary HKSCAN AGM 11.4.2019
Slide 6: Funding base and maturity structure
Funding base and maturity structure Interest-bearing debt Maturity of Group’s interest-bearing debt (EUR million)* by credit type *EUR 40 million hybrid bond is treated as equity (early redemption option in Sept. 2023) HKSCAN AGM 11.4.2019
Slide 7: From balancing finances towards profitable growth
From balancing finances towards profitable growth HKSCAN AGM 11.4.2019
Slide 8: HKScan is a significant Nordic food company
HKScan is a significant Nordic food company Over one hundred years of experience in responsible meat production and consumer behaviour • A team of more than 7000 professionals serving the world's most demanding consumers • The company markets and sells high-quality, responsibly produced poultry, por
Slide 9: HKScan market areas
HKScan market areas Market area Net sales 2018 (MEUR) Meat Main brands Market position 1) Finland 1 722 # 1–2 0 400 800 Sweden 1 682 # 1–2 0 400 800 Baltics 1 162 #1 0 400 800 Denmark 1 149 #2 0 400 800 HKScan exports products to close to 50 countries around the world and is Exports e.g. constantly
Slide 10: Operating profit development in the sector
Operating profit development in the sector Operating profit, MEUR 60 50 40 30 Company X 20 HKScan has lost its market leader position, 10 Company Y which has led to weak 0 financial development 2018 Average – the root causes are -102010 2011 2012 2013 2014 2015 2016 2017 mainly internal -20 HKScan's
Slide 11: Root causes of negative result
Root causes of negative result • The company's ”From Farm to Fork” strategy continues to provide a relevant framework for operating in an environment where the significance of responsible operations and transparency is emphasised • The focuses in implementing the company's strategy haven't been accu
Slide 12: Profitable growth through balancing finances
Profitable growth through balancing finances TOWARDS PROFITABLE GROWTH STABILISING 2021 BUSINESS 2020 BALANCING COMPANY FINANCES 2019 Cash flow, Profitability, Balance sheet HKSCAN AGM 11.4.2019
Slide 13: HKScan's new Management Team
HKScan’s new Management Team Tero Hemmilä Sofia Hyléen Jari Leija Toresson CEO EVP Market Area (as of 4 February 2019) EVP Market Area Finland M.Sc. (Agr. & Econ.), born 1967 Sweden Key employment history: Anne Mere Jukka Nikkinen • Yara International, Commercial Director of the Nordic area 2015–201
Slide 14: Turning loss into profit (1/2)
Turning loss into profit (1/2) Changes related to management and ways of working • Changes in the Board of Directors and in company management • Towards new ways of working in 2019: - From a matrix organisation towards clear roles emphasising country-level profit responsibilities, efficient leveragi
Slide 15: Turning loss into profit (2/2)
Turning loss into profit (2/2) Changes related to business operations • Controlled price increases • Efficient local management of the meat value chain, meat balance, and yields • Balanced management of product portfolio and product development, while taking into consideration the entire meat balanc
Slide 16: Redefining HKScan's strategy and strategic focus areas
Redefining HKScan's strategy and strategic focus areas Business focus • Special focus on poultry as a growth driver • Strengthening sustainability aspects in red meat • Growth targets in meals • Export opportunities for sustainably produced and pure meat • HKScan's position as part of the consumer's
Slide 17: Product categories
Product categories HKSCAN AGM 11.4.2019
Slide 18: Meat consumption by meat type in EU countries
Meat consumption by meat type in EU countries (kg/person/year) 80 Global meat consumption is 70 1,7 1,9 estimated to grow by about 1.3% 2,5 2,8 annually for the next decade 2) 60 19,7 24,1 24,8 15,6 50 Poultry and pork are estimated to 40 make up about 70% of the meat consumption growth in the near
Slide 19: Poultry as a driver for growth
Poultry as a driver for growth Poultry is a significantly growing category • Poultry consumption in Finland increased by more than 36% in 2010-20171) • Healthiness, ease-of-use, sustainability and export opportunities are driving growth • The position and appreciation of HKScan's strong brands among
Slide 20: Strengthening the sustainability aspects in red meat
Strengthening the sustainability aspects in red meat Pressures are targeting the consumption of red meat and meat products. HKScan is proactively responding to them. Sustainability, quality, and a transparent way of operating form the foundation for the competitiveness of our products • Proactively
Slide 21: Meal market growth in Finland and Sweden
Meal market growth in Finland and Sweden 850 800 MEUR 800 750 700 650 Sweden 600 MEUR 600 Finland 550 500 450 2016 2017 2018 Examples of growth of subcategories, Finland Examples of growth of subcategories, Sweden • Convenience meals (fresh): growth 42 MEUR, +31% • Convenience meals (fresh): growth
Slide 22: HKScan strengthening its position in the growing meal category
HKScan strengthening its position in the growing meal category • We are continuing to expand our meal selection in all our markets, and we are currently investing in expanding the meal production capacity in our Rakvere unit in Estonia • The investment will improve the Rakvere unit's productivity an
Slide 23: HKScan's exports to China advancing
HKScan's exports to China advancing: Rypsiporsas® (Omega-3 pork) products to Alibaba's esteemed Hema chain • Exports to China of pork raised on Finnish family farms started from our Forssa unit in April • The target for the first year is to sell about three million kilos and to triple the volume by
Slide 24: Demand for responsibly produced products is growing globally
Demand for responsibly produced products is growing globally HKSCAN AGM 11.4.2019
Slide 25: Responsibility is built-in in everything we do
Responsibility is built-in in everything we do HKSCAN AGM 11.4.2019
Slide 26: Advantages of domestic food production
Advantages of domestic food production Antibiotics are used only when needed, not to Clean nature Less environmental promote growth. Healthy animals - air, water and soil impacts No hormones. Job creation Verified and transparent Safe products Security of supply production chain HKSCAN AGM 11.4.2019
Slide 27: From a meat company towards a strong food company
From a meat company towards a strong food company HKSCAN AGM 11.4.2019
Slide 28: Thank you
Thank you HKSCAN AGM 11.4.2019