Hkfoods Oyj Class A · OMXHEX:HKFOODS
Hkfoods Oyj Class A — HKScan — FY2010 Earnings Presentation
28 slides from Hkfoods Oyj Class A's earnings presentation, Feb 18, 2011
Slide 1: HKScan Corporation Financial Statement 2010
HKScan Corporation Financial Statement 2010 CEO Matti Perkonoja Media and investor briefing 18 February 2011
Slide 2: HKScan's mission and vision
HKScan’s mission and vision Mission statement MEAT AND MORE HKScan is a responsible food company which creates economic value added for its stakeholders through its meat-based product portfolio, food concepts and tasty products that are designed to contribute to the lives of consumers by making cook
Slide 3: HKScan - Significant Northern European Food Company
HKScan - Significant Northern European Food Company • Net sales 2010 EUR 2 113.9 million • Employees, ca. 11 300: • Finland 2 464 • Sweden 3 143 • Denmark 913 (31.12.2010) • Baltics 1 884 • Poland 5 734 (50% 2 867) • Locations in nine countries • A core business principle of HKScan is consumer and c
Slide 4: Group structure
Group structure HKScan Corporation Net sales in 2010: EUR 2 113.9 million*, CEO Matti Perkonoja Luulaja Pro forma net sales 2010: EUR 2 325.5 million ** Outokumpu Forssa Mikkeli Eura Mellilä Säkylä Vantaa Turku Tallinn St Petersburg Finland Sweden Denmark Baltics Poland Örebro Stockholm Rakvere Net
Slide 5: Group structure
Group structure HKScan Corporation Luulaja Support process Outokumpu Support process Forssa Mikkeli Eura Mellilä Säkylä Vantaa Turku Tallinn St Petrsburg Centre of excellence Örebro Stockholm Rakvere Skara Linköping Viiratsi Red meat Poultry Processed Drivers of Skovgaard Halmstad Convenience Vinder
Slide 6: HKScan Corporation
HKScan Corporation Q4/ Q4/ 2010 2009 2010 2009 Net sales, EUR million 595.7 557.5 2 113.9 2 124.7 EBIT, EUR million 15.7 18.4 48.0 55.1 - EBIT margin % 2.6 3.3 2.3 2.6 Profit before taxes 11.1 15.4 36.5 37.3 Earnings per share. EUR 0.15 0.28 0.52 0.64 • The HKScan Group’s net sales, EUR 2 113.9 mill
Slide 7: Group EBIT Bridge
Group EBIT Bridge – Q4 /2009 vs. Q4 /2010 Net effect EUR -2.7 million M€ M. Perkonoja 18.2.2011 7 MEAT INDUSTRY SHAPER
Slide 8: Group EBIT Bridge
Group EBIT Bridge – Q1-Q4 /2009 vs. Q1-Q4 /2010 Net effect -7,1 milj.eur M€ M. Perkonoja 18.2.2011 8 MEAT INDUSTRY SHAPER
Slide 9: Market area: Finland
Market area: Finland Q4/ Q4/ 2010 2009 2010 2009 Net sales, EUR million 198.2 185.4 718.5 732.5 EBIT, EUR million 4.7 6.4 10.7 27.0 - EBIT margin % 2.4 3.5 1.5 3.7 • In Finland, net sales were EUR 718.5 million and EBIT EUR 10.7 million. • Earnings development in HK Ruokatalo (principal company in F
Slide 10: Market area: Sweden
Market area: Sweden Q4/ Q4/ 2010 2009 2010 2009 Net sales, EUR million 275.0 278.3 997.1 1 037.4 EBIT, EUR million 8.0 9.1 20.4 16.7 - EBIT margin % 2.9 3.3 2.0 1.6 • Scan AB’s net sales were EUR 997.1 million and EBIT EUR 20.4 million. • The Christmas season did not entirely meet set targets in Sca
Slide 11: Market area: Denmark
Market area: Denmark Q4/ Q4/ 2010 2009 2010 2009 Net sales, EUR million 21.8 - 21.8 - EBIT, EUR million -0.0 - -0.0 - - EBIT margin % 0.0 - 0.0 - • The Rose Poultry A/S transaction was completed at the end of November • The company has been consolidated into the HKScan Group since 29 November 2010 •
Slide 12: Market area: Baltics
Market area: Baltics Q4/ Q4/ 2010 2009 2010 2009 Net sales, EUR million 42.0 38.1 160.4 156.9 EBIT, EUR million 1.8 2.0 8.7 9.8 - EBIT margin % 4.3 5.1 5.4 6.3 • In the market area of the Baltics, net sales were EUR 160.4 million and EBIT EUR 8.7 million. • The business environment continues to pres
Slide 13: Market area: Poland
Market area: Poland *) Q4/ Q4/ 2010 2009 2010 2009 Net sales, EUR million 72.6 65.1 279.3 251.7 EBIT, EUR million 3.0 2.9 15.5 9.3 - EBIT margin % 4.1 4.4 5.6 3.7 *) The figures refer to HKScan’s share (50%) of the Sokolów Group’s figures. . • In Poland, Sokolów’s net sales growth and profitability
Slide 14: Breakdown of net sales and EBIT
Breakdown of net sales and EBIT Q4/2010 Net sales* EUR 595.7 million EBIT * EUR 15.7 million Poland Poland 11.9% 17.1% Finland Finland Baltics 26.9% 32.5% 6.9% Baltics 10.2% Denmark 3.6 % Denmark -0,1 % Sweden Sweden 45.1% 45.9% * shares calculated including internal sales * shares calculated exclus
Slide 15: Breakdown of net sales and EBIT
Breakdown of net sales and EBIT 2010 Net sales* EUR 2 113.9 million EBIT* EUR 48.0 million Poland 12.8% Finland Poland 19.4% Baltics Finland 28.1% 7.4% 33.0% Denmark 1,0 % Baltics 15.6% Sweden Sweden 36.9% 45,8 % Denmark 0,0 % * shares calculated including internal sales * shares calculated exclusiv
Slide 16: Quarterly EBIT development
Quarterly EBIT * development EUR million * raported M. Perkonoja 18.2.2011 16 MEAT INDUSTRY SHAPER
Slide 17: Exchange rate trends
8,00 8,50 9,00 9,50 10,00 10,50 11,00 11,50 12,00 2.1.2007 8.2.2007 19.3.2007 27.4.2007 6.6.2007 13.7.2007 21.8.2007 27.9.2007 5.11.2007 12.12.2007 23.1.2008 29.2.2008 10.4.2008 20.5.2008 26.6.2008 Source: European Central Bank 4.8.2008 10.9.2008 17.10.2008 25.11.2008 6.1.2009 12.2.2009 23.3.2009 4.
Slide 18: Future outlook
Future outlook Consumer demand for food is expected to remain steady in the Group’s domestic markets. The business’s decentralized structure consisting of different product groups and geographical areas, and the initiated and planned efficiency programmes provide the foundation for stronger developm
Slide 19: HKScan income statement
HKScan income statement (EUR million) 2010 2009 NET SALES 2 113.9 2 124.7 Change in inventories of finished goods and work in progress 3.5 5.1 Work performed for own use and capitalised 1.3 0.9 Other operating income 13.6 6.7 Share of associates' results 1.8 0.9 Materials and services -1 445.9 -1 47
Slide 20: HKScan statement of comprehensive income
HKScan statement of comprehensive income (EUR million) 2010 2009 PROFIT/LOSS FOR THE PERIOD 30.8 32.5 OTHER COMPREHENSIVE INCOME (after taxes): Exchange differences on translating foreign operations 13.5 1.8 Available-for-sale investments 0.0 0.4 Cash flow hedging 1.8 -7.1 TOTAL OTHER COMPREHENSIVE
Slide 21: Consolidated balance sheet
Consolidated balance sheet (EUR million) 31.12.2010 31.12.2009 ASSETS Non-current assets Intangible assets 77.1 65.7 Goodwill 100.4 88.2 Property, plant and equipment 537.8 469.1 Shares in associates 27.0 20.9 Trade and other receivables 25.3 18.2 Other long-term investments 13.1 10.5 Deferred tax a
Slide 22: Consolidated balance sheet
Consolidated balance sheet (EUR million) 31.12.2010 31.12.2009 EQUITY AND LIABILITIES Equity attributable to equity holders of the 419.6 389.3 parent Non-controlling interests 11.1 9.4 Total shareholders’ equity 430.6 398.7 Deferred tax liability 38.9 32.2 Non-current interest-bearing liabilities 36
Slide 23: Cash flow statement
Cash flow statement (EUR million) 2010 2009 Operating activities EBIT and depreciation (incl. adjustments) 97.0 119.5 Change in net working capital -3.7 2.5 Financial income and expenses t -13.8 -19.7 Taxes -5.7 -4.9 Net cash flow from operating activities 73.8 97.4 Investing activities Gross invest
Slide 24: Investments
Investments EUR million * exclusive of enterprise value of Scan AB acquisition, appr. EUR 158 million ** exclusive of enterprise value of Rose Poultry A/S EUR 23.4 million M. Perkonoja 18.2.2011 24 MEAT INDUSTRY SHAPER
Slide 25: Financial highlights
Financial highlights 2010 2009 EPS, diluted, EUR 0.52 0.64 Equity / share, 31.12., EUR *) 7.63 7.21 *) Dividend per share 0.22 0.22 Equity ratio, % 34.0 37.1 Adjusted number of shares, mill. - average during the financial year 54.0 44.9 - at end of financial year 55.0 54.0 - fully diluted 55.0 54.0
Slide 26: Financial targets and target achievement
Financial targets and target achievement 2006 – 2010 Target Achievement 2010 2009 2008 2007 2006 EBIT over 5% of net 2.3 2.6 1.7 2.6 4.3 sales Return on equity over 15% 7.4 9.0 2.3 9.2 11.9 Equity ratio over 40% 34.0 37.1 29.5 29.3 43.7 Dividend at least 30% of 42.6*) 34.5 199.3 37.7 34.2 distributi
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