Huhtamaki Oyj · OMXHEX:HUH1V
Huhtamaki Oyj — Q2 2006 Earnings Presentation
14 slides from Huhtamaki Oyj's earnings presentation, Jul 21, 2006
Slide 1: Huhtamaki Q2 2006 results
Huhtamaki Q2 2006 results July 21, 2006 CEO Heikki Takanen CFO Sakari Ahdekivi Continued improvement in the second quarter • Strong performance in Americas as well as in Films and Flexibles • Growth in emerging markets continued at double-digit rate • Weakness in certain traditional rigid packaging
Slide 2: Q2 2006 highlights
Q2 2006 highlights Q2 Q2 Change H1 H2 Change MEUR 2006 2005 % 2006 2005 % 2005 Net sales 601 594 +1 1.167 1.107 +5 2,244 EBIT underlying 53 49 +9 94 82 +15 160 EBIT margin % 8.9 8.2 8.1 7.4 7.1 EBIT reported 50 -34 +246 87 -0.7 58 EPS reported 0.33 -0.45 +173 0.57 -0.25 +328 0.07 • Sales growth slow
Slide 3: Change program: UK update
Change program UK update • Leeds and Skelmersdale site closures completed in 2005, Portadown downsizing in Q1 2006 • Result improvement not achieved Skelmersdale due to weak sales development (closed) and operational inefficiencies • Adjusting capability to match Leeds Portadown (closed) changing ma
Slide 4: Q2 2006 Europe
Q2 2006 Europe Regional highlights • Continued strong momentum in Films and Flexibles backed by new product introductions • Solid performance in Foodservice, double-digit growth in Eastern Europe Breakthrough for flow pack with Milka • Volume decline in Rigid Consumer Goods driven by UK • Operationa
Slide 5: Q2 2006 Americas
Q2 2006 Americas Regional highlights • Growth in the region returned to a more normalized level • Double-digit growth in Retail, good performance also in Frozen Desserts • Negative impact from volume decline in Foodservice and divestment of Mexican molded fiber unit • Result supported by improving e
Slide 6: Q2 2006 Asia-Oceania-Africa
Q2 2006 Asia-Oceania-Africa Regional highlights New generation ice cream packaging with tamper evident hinge lid • Continued strong momentum in Flexibles in India and Southeast Asia • Solid performance in South Africa • Margin pressure experienced in Oceania Rigid due to lower market demand and risi
Slide 7: Q2 2006 income statement
Q2 2006 financial review 13 Q2 2006 income statement Q2 2006 Q2 Change 2005 % MEUR Reported Restructuring Underlying Underlying & Impairment Net sales 600.9 600.9 593.7 +1.2% EBITDA 73.2 -3.4 76.6 73.3 % 12.2% 12.7% 12.3% Goodwill impairment EBIT 49.8 -3.4 53.2 48.6 +9.5% % 8.3% 8.9 % 8.2 % Net fina
Slide 8: H1 2006 income statement; Net sales development
H1 2006 income statement H1 2006 H1 Change 2005 % MEUR Reported Restructuring Underlying Underlying & Impairment Net sales 1,166.8 1,166.8 1,106.8 +5.4% EBITDA 134.5 -7.1 141.6 131.2 % 11.5% 12.1% 11.9% Goodwill impairment EBIT 87.0 -7.1 94.1 82.0 14.8% % 7.5% 8.1 % 7.4 % Net financial items -18.4 -
Slide 9: Underlying EBIT development; Net sales growth by region
Underlying EBIT development MEUR +22% +9% 60 53 49 50 46 43 41 37 38 40 33 35 2006 30 26 2005 2004 20 10 0 Q1 Q2 Q3 Q4 YTD +15% 17 Net sales growth by region Q2 Q2 H1 H1 2006 2005 2006 2005 2005 Europe -1.6% 2.7% 1.0% 1.4% 1.8% Americas 5.2% 13.8% 12.8% 12.1% 16.2% AOA 2.7% 8.8% 6.6% 6.3% 9.8% Group
Slide 10: Volume growth by region; Huhtamaki raw material index
Volume growth by region Q2 Q2 H1 H1 2006 2005 2006 2005 2005 Europe 1.6% -0.4% 2.8% -2.0% -1.7% Americas -2.5% 7.9% 0.8% 7.8% 5.9% AOA 3.6% 4.2% 6.7% 2.5% 5.8% Group total 0.7% 2.8% 3.4% 1.5% 1.8% 19 Huhtamaki raw material index 1/2003-6/2006 140 130 120 110 100 90 80 Jan- Feb- Mar- Apr- May- Jun- J
Slide 11: Balance sheet June 30, 2006; Q2 2006 cash flow
Balance sheet June 30, 2006 Q2 Q2 MEUR 2006 2005 Balance sheet total 2,252 2,279 Operating working capital 439 458 Net debt 692 748 Equity + minority 818 772 Gearing 0.85 0.97 ROI * 9.5 1.4 ROE * 11.2 -2.9 * Including restructuring All figures at actual forex rates 21 Q2 2006 cash flow Q2 Q2 MEUR 20
Slide 12: H1 2006 cash flow; Net debt development
H1 2006 cash flow H1 H1 MEUR 2006 2005 Profit for the period* 57.5 -23.2 Adjustments* 69.9 143.4 Change in working capital* -41.7 -36.3 Net financial items* -15.4 -17.7 Taxes* -9.2 -12.3 CASH FLOWS FROM OPERATING ACT. 61.1 53.9 Capital expenditure* -46.0 -30.5 Proceeds from selling fixed and other a
Slide 13: Outlook for 2006
Outlook 25 Outlook for 2006 • Emphasis on change program execution continues • Underlying EBIT expected to show moderate improvement over 2005, despite decreasing unallocated corporate income as well as impact from divested units • Volatility of polymer-based raw material prices may put pressure on
Slide 14: Next scheduled event in 2006
Next scheduled event in 2006 • October 24 Interim report Q3 2006 (Quiet period starts October 10) For updates on the schedule, see www.huhtamaki.com – Investors – Financial calendar 27 Thank you for your attention! www.huhtamaki.com 14