Hkfoods Oyj Class A · OMXHEX:HKFOODS

Hkfoods Oyj Class A — HKScan — FY2011 Earnings Presentation

24 slides from Hkfoods Oyj Class A's earnings presentation, Feb 17, 2012

  1. Slide 1: HKScan Corporation Financial Statements 2011

    HKScan Corporation Financial Statements 2011 Matti Perkonoja, CEO Media and investor briefing, 17 February 2012

  2. Slide 2: HKScan – significant Northern European food company

    HKScan – significant Northern European food company • Net sales (2011) EUR 2 491.3 million • About 11 400 employees (average) • Finland 2 750 • Sweden 2 789 • Denmark 867 • the Baltics 1 881 • Poland 6 191 (50% = 3 096) • Locations in ten countries • HKScan’s core business principle is consumer and

  3. Slide 3: Group structure

    Group structure HKScan Corporation Net sales in 2011: EUR 2 491.3 million*, CEO Matti Perkonoja Luulaja (Hannu Kottonen as of 1.3.2012) Outokumpu Forssa Mikkeli Eura Mellilä Säkylä Director Director Vantaa Turku St Petersburg Anne Mere Denis Mattsson Örebro Stockholm Tallinn Rakvere Skara Linköping

  4. Slide 4: HKScan Corporation

    HKScan Corporation Q4/ Q4/ 2011 2010 2011 2010 Net sales, EUR million 649.8 595.7 2 491.3 2 113.9 EBIT, EUR million 17.6 15.7 39.6 48.0 - EBIT margin, % 2.7 2.6 1.6 2.3 Profit before tax, EUR 9.1 11.1 11.3 36.5 million Earnings per share, EUR 0.14 0.15 0.18 0.52 • EBIT strengthened during the last q

  5. Slide 5: Group EBIT Bridge Q4/2010 vs. Q4/2011

    Group EBIT Bridge Q4 /2010 vs. Q4 /2011 Net effect EUR +1,9 million 20 2,5 0,5 17,6 18 1,0 15,7 -0,6 -0,2 16 -1,3 14 12 10 M€ 8 6 4 2 0 Group Finland Sweden Denmark Baltics Poland Group Group Q4/2010 admin. Q4/2011 2 Positive effect M. Perkonoja 17.2.2012 5 MEAT INDUSTRY SHAPER

  6. Slide 6: Group EBIT Bridge 2010 vs. 2011

    Group EBIT Bridge 2010 vs. 2011 Net effect EUR -8,4 million 60 48,0 1,4 50 1,1 39,6 40 -3,2 -3,7 -1,2 -2,8 30 M€ 20 10 0 Group 2010 Finland Sweden Denmark Baltics Poland Group admin. Group 2011 Column1 Negative eff. M. Perkonoja 17.2.2012 6 MEAT INDUSTRY SHAPER

  7. Slide 7: Market area Finland

    Market area Finland Q4/ Q4/ 2011 2010 2011 2010 Net sales, EUR million 217.6 198.2 812.4 718.5 EBIT, EUR million 7.2 4.7 12.1 10.7 - EBIT margin, % 3.3 2.4 1.5 1.5 • In Finland net sales rose 13.1 percent. Approximately half of the growth came from Järvi-Suomen Portti Oy’s merger with the Group at t

  8. Slide 8: Meat Barometer January-December 2011

    MEAT BAROMETER _sJanuary-December 2011 As carcase 1,2.2012 1000 tn (in parenthesis I-XIl/2010) —_*) Exports and imports from December are estimated MEAT TOTAL PRODUCTION 387,0 CONSUMPTION 400,0 *)EXPORTS (54,5) 61,1 *)IMPORTS (64,6) 65,5 Share of domestic consumption: 83.6 % PIG PRODUCTION 201,6 CON

  9. Slide 9: Market area Sweden

    Market area Sweden Q4/ Q4/ 2011 2010 2011 2010 Net sales, EUR million 275.6 275.0 1 045.7 997.1 EBIT, EUR million 7.4 8.0 17.2 20.4 - EBIT margin, % 2.7 2.9 1.6 2.0 • In Sweden, net sales in krona remained on the same level as the previous year. Development in net sales was affected by the halt in t

  10. Slide 10: Market area Denmark

    Market area Denmark Q4/ Q4/ 2011 2010* 2011 2010* Net sales, EUR million 54.3 -21.8 228.1 21.8 EBIT, EUR million -1.3 -0.0 -3.7 -0.0 - EBIT margin, % -2.4 0.0 -1.6 0.0 * Rose Poultry was consolidated to HKScan Group as of 29 November 2010 • In Denmark, reasons for the weak business development: • lo

  11. Slide 11: Market area Baltics

    Market area Baltics Q4/ Q4/ 2011 2010 2011 2010 Net sales, EUR million 44.9 42.0 173.3 160.4 EBIT, EUR million 2.8 1.8 9.8 8.7 - EBIT margin, % 6.2 4.3 5.6 5.4 • Net sales in the entire Baltic region grew, the highest growth in Lithuania. • EBIT increased 13 percent • Baltic units well adapted to th

  12. Slide 12: Market area Poland

    Market area Poland Q4/ Q4/ *) 2011 2010 2011 2010 Net sales, EUR million 73.9 72.6 298.9 279.3 EBIT, EUR million 3.5 3.0 12.7 15.5 - EBIT margin, % 4.7 4.1 4.2 5.6 *) Figures refer to HKScan’s share (50%) of the Sokolów Group’s figures. • In Poland, Sokolów’s net sales were up 7% (in local currency

  13. Slide 13: EBIT development by quarter

    EBIT* development by quarter EUR million 60 55,3 55,1 50 48,0 38,1 39,6 40 Q1 Q2 30 Q3 Q4 19,2 18,4 18,8 20 15,7 17,6 Whole year 15,1 15,3 14,314,1 14 11,5 12,3 9,2 8,2 10 8,1 6,7 6,1 5,5 4,4 1,4 0 2007 2008 2009 2010 2011 * reported M. Perkonoja 17.2.2012 13 MEAT INDUSTRY SHAPER

  14. Slide 14: Future outlook

    Future outlook Consumer demand for meat is expected to remain steady in the Group’s domestic markets. Cost changes in production inputs can still be forecast only for the near future. HKScan’s different product groups and different geographical areas, and the ongoing efficiency and development progr

  15. Slide 15: Income statement

    Income statement (EUR million) 2011 2010 NET SALES 2 491.3 2 113.9 Change in inventories of finished goods and work in progress 16.1 3.5 Work performed for own use and capital. 1.3 1.3 Other operating income 9.2 13.6 Share of associates’ results 1.1 1.8 Materials and services -1 740.8 -1 445.9 Emplo

  16. Slide 16: Statement of comprehensive income

    Statement of comprehensive income (EUR million) 2011 2010 Profit/loss for the period 12.2 30.8 OTHER COMPREHENSIVE INCOME (after taxes): Exchange diff. on translating foreign operations -2.5 13.5 Available-for-sale investments 0.0 0.0 Cash flow hedging -7.4 1.8 Revaluation 0.0 0.0 TOTAL OTHER COMPRE

  17. Slide 17: Consolidated balance sheet

    Consolidated balance sheet (EUR million) 2011 2010 ASSETS NON-CURRENT ASSETS Intangible assets 76.6 77.1 Goodwill 101.0 100.4 Tangible assets 516.5 537.8 Shares in associates 29.9 27.0 Trade and other receivables 31.1 25.3 Available-for-sale investments 13.0 13.1 Deferred tax asset 21.1 14.4 NON-CUR

  18. Slide 18: Consolidated balance sheet

    Consolidated balance sheet (EUR million) 2011 2010 EQUITY AND LIABILITIES Equity attribut. to equity holders of parent 409.3 419,6 Non-controlling interests 12.2 11,1 EQUITY 421.5 430,6 Deferred tax liability 36.9 38,9 Non-current interest-bearing liabilities 333.5 361,2 Non-current non-interest-bea

  19. Slide 19: Cash flow statement

    Cash flow statement (EUR million) 2011 2010 Operating activities EBIT and depreciations (incl. adjustments) 108.2 97.0 Change in net working capital -28.3 -.7 Financial income and expenses -19.6 -13.8 Taxes -6.4 -5.7 Net cash flow from operating activities 53.9 73.8 Investing activities Gross invest

  20. Slide 20: Investments

    Investments Meur 140 129,3 120 100 84,0 80 70,7 61,0 60 41,3 40 20 0 2007* 2008 2009 2010** 2011 * Excluding acquistion price of Scan AB, approx. EUR 158 million ** Excluding acquisition price of Rose Poultry A/S, EUR 23.4 million M. Perkonoja 17.2.2012 20 MEAT INDUSTRY SHAPER

  21. Slide 21: Financial indicators

    Financial indicators 2011 2010 EPS, diluted, euro 0.18 0.5 2 Equity per share / euro 7.67 7.63 Dividend per share, euro *) 0.17 0.22 Equity ratio, % 33.6 34.0 Adjusted number of outstanding shares in millions - average during and at the end of 55.0 54.0 period Gross investments, EUR million 61.0 70.

  22. Slide 22: Financial targets and achievement

    Financial targets and achievement 2007 – 2011 Target Achievement 2011 2010 2009 2008 2007 EBIT margin,% over 5% 1.6 2.3 2.6 1.7 2.6 Return on equity over15% 2.9 7.4 9.0 2.3 9.2 Equity ratio, % over 40% 33.6 34.0 37.1 29.5 29.3 Dividend payout at least 30% of 92.1 42.6 34.5 199.3 37.7 ratio, % net ea

  23. Slide 23: Main brands

    Main brands Sweden Finland Denmark Estonia Poland Lithuania Latvia Muut 92 % 03/2009 23 MEAT INDUSTRY SHAPER

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HKScan — FY2011 Earnings Presentation on 6ix