Hkfoods Oyj Class A · OMXHEX:HKFOODS
Hkfoods Oyj Class A — HKScan — FY2013 Earnings Presentation
46 slides from Hkfoods Oyj Class A's earnings presentation, Feb 12, 2014
Slide 1: Financial Statements 2013 Group Overview
Financial Statements 2013 Group Overview Hannu Kottonen, President and CEO 12 February 2014
Slide 2: HKScan Group
HKScan Group EUR million Q4/2013 Q4/2012 2013 2012 Net sales 640,6 662,4 2 478,6 2 503,1 EBIT 15,2 21,9 30,5 43,1 - EBIT % 2,4 3,3 1,2 1,7 Profit before taxes 8,7 15,5 9,7 14,3 Profit for the period 6,6 15,4 9,8 17,7 EPS, EUR 0,10 0,27 0,16 0,30 EBIT excl. non-recurring items 11,1 15,5 30,0 36,7 - E
Slide 3: HKScan Group 2013
HKScan Group 2013 • Mixed financial performance: cash flow strengthened significantly − Improved working capital (extraordinary sales of excess frozen stock) and capital expenditure management − Fire insurance case settled • Profitability below target − Poland and the Baltics at a good level − Swede
Slide 4: HKScan Group 2013
HKScan Group 2013 • Demand in both consumer and away-from-home businesses at a lower level compared to the previous year • Sales price competition tough in all markets as imports and private labels increased their market share • High animal purchasing prices and primary production costs at the begin
Slide 5: Feed Basket – Poultry
Feed Basket – Poultry FINANCIAL STATEMENTS 2013 5 12/02/2014
Slide 6: Feed Basket – Pork
Feed Basket – Pork FINANCIAL STATEMENTS 2013 6 12/02/2014
Slide 7: Market Area Finland
Market Area Finland EUR million Q4/2013 Q4/2012 2013 2012 Net sales 210,1 219,2 804,1 813,8 EBIT 1,6 7,4 2,8 18,4 - EBIT % 0,8 3,4 0,4 2,3 EBIT excl. non-recurr. items 1,6 7,4 6,4 18,4 - EBIT % 0,8 3,4 0,8 2,3 • Low demand and fierce competition decreased sales volumes and average sales prices • Sal
Slide 8: Market Area Baltics
Market Area Baltics EUR million Q4/2013 Q4/2012 2013 2012 Net sales 44,7 45,1 175,1 176,7 EBIT 2,1 1,5 8,4 8,9 - EBIT % 4,6 3,3 4,8 5,1 • Good performance continued, branded products selling well • Focus on cost management in primary production and other areas • Export market remained soft • Demand
Slide 9: Market Area Sweden
Market Area Sweden EUR million Q4/2013 Q4/2012 2013 2012 Net sales 255,8 274,5 965,3 1 025,7 EBIT 3,5 -0,8 8,1 -5,9 - EBIT % 1,4 -0,3 0,8 -0,6 EBIT excl. non-recurring items 5,8 6,6 10,4 1,5 - EBIT % 2,3 2,4 1,1 0,1 • Decrease in net sales due to discontinuing non-profitable sales and lower volumes
Slide 10: Market Area Denmark
Market Area Denmark EUR million Q4/2013 Q4/2012 2013 2012 Net sales 52,6 50,9 226,1 211,7 EBIT 6,4 12,7 4,9 15,4 - EBIT % 12,2 24,9 2,2 7,3 EBIT excl. non-recurring items 0,0 -1,1 -1,5 1,5 - EBIT % 0,1 -2,2 -0,7 0,7 • Tough price competition in both domestic and export markets continued • Sales marg
Slide 11: Market Area Poland
Market Area Poland EUR million*) Q4/2013 Q4/2012 2013 2012 Net sales 94,3 87,7 375,1 343,7 EBIT 4,3 4,3 18,8 15,8 - EBIT % 4,6 4,9 5,0 4,6 *) Represents HKScan’s 50% share of Sokolów • Sales growth strong throughout the year − Sales of branded, processed and barbecue products increased thanks to exp
Slide 12: HKScan Strategy 2012–2015
HKScan Strategy 2012–2015 Vision Meat Industry Shaper Strategy Delivering Profitable Performance We improve our performance by more efficient and transparent Group-wide business processes, competences, leadership and communication. We increase our profitability by developing brands, offerings and cu
Slide 13: HKScan Strategy 2012–2015 - Status Today
HKScan Strategy 2012–2015 - Status Today Vision Meat Industry Shaper Strategy Delivering Profitable Performance We improve our performance by more efficient and transparent Group-wide business processes, competences, leadership and communication. We increase our profitability by developing brands, o
Slide 14: Financial Statements 2013 Group Financials
Financial Statements 2013 Group Financials Tuomo Valkonen, CFO 12 February 2014
Slide 15: Group EBIT
Group EBIT*) Q4/2012 vs. Q4/2013 *) Excluding non-recurring items FINANCIAL STATEMENTS 2013 15 12/02/2014
Slide 16: Group EBIT
Group EBIT*) 2012 vs. 2013 *) Excluding non-recurring items FINANCIAL STATEMENTS 2013 16 12/02/2014
Slide 17: Group Cash Flow before Debt Service
Group Cash Flow before Debt Service 2012 vs. 2013 FINANCIAL STATEMENTS 2013 17 12/02/2014
Slide 18: Group Cash Flow before Debt Service
Group Cash Flow before Debt Service 2012 vs. 2013 FINANCIAL STATEMENTS 2013 18 12/02/2014
Slide 19: Group EBIT
Group EBIT*) *) Excluding non-recurring items FINANCIAL STATEMENTS 2013 19 12/02/2014
Slide 20: Finland EBIT
Finland EBIT*) *) Excluding non-recurring items FINANCIAL STATEMENTS 2013 20 12/02/2014
Slide 21: Baltics EBIT
Baltics EBIT FINANCIAL STATEMENTS 2013 21 12/02/2014
Slide 22: Sweden EBIT
Sweden EBIT*) *) Excluding non-recurring items FINANCIAL STATEMENTS 2013 22 12/02/2014
Slide 23: Denmark EBIT
Denmark EBIT*) *) Excluding non-recurring items FINANCIAL STATEMENTS 2013 23 12/02/2014
Slide 24: Poland EBIT
Poland EBIT*) FINANCIAL STATEMENTS 2013 24 12/02/2014
Slide 25: Group EBIT Development
Group EBIT Development FINANCIAL STATEMENTS 2013 25 12/02/2014
Slide 26: Group Net Financial Expenses
Group Net Financial Expenses FINANCIAL STATEMENTS 2013 26 12/02/2014
Slide 27: Group Income Tax
Group Income Tax FINANCIAL STATEMENTS 2013 27 12/02/2014
Slide 28: Group Cash Flow before Debt Service
Group Cash Flow before Debt Service FINANCIAL STATEMENTS 2013 28 12/02/2014
Slide 29: Group Cash Flow before Financing Activities
Group Cash Flow before Financing Activities FINANCIAL STATEMENTS 2013 29 12/02/2014
Slide 30: Group Investments
Group Investments FINANCIAL STATEMENTS 2013 30 12/02/2014
Slide 31: Profit before Taxes
Profit before Taxes FINANCIAL STATEMENTS 2013 31 12/02/2014
Slide 32: Profit for the Period
Profit for the Period FINANCIAL STATEMENTS 2013 32 12/02/2014
Slide 33: Earnings per Share (EPS)
Earnings per Share (EPS) FINANCIAL STATEMENTS 2013 33 12/02/2014
Slide 34: Return on Capital Employed (ROCE)
Return on Capital Employed (ROCE) FINANCIAL STATEMENTS 2013 34 12/02/2014
Slide 35: Net Gearing
Net Gearing FINANCIAL STATEMENTS 2013 35 12/02/2014
Slide 36: Net Debt
Net Debt FINANCIAL STATEMENTS 2013 36 12/02/2014
Slide 37: Maturity of the Group’s Interest-bearing Debts
Maturity of the Group’s Interest-bearing Debts FINANCIAL STATEMENTS 2013 37 12/02/2014
Slide 38: Equity Ratio
Equity Ratio FINANCIAL STATEMENTS 2013 38 12/02/2014
Slide 39: Group Personnel at the End of Period
Group Personnel at the End of Period *) *) Excluding Sokolów’s employees FINANCIAL STATEMENTS 2013 39 12/02/2014
Slide 40: Fire Insurance Compensation
Fire Insurance Compensation Business interruption coverage for 24 months 6/2012 12/2012 12/2013 5/2014 1) Comparable EBIT before non-recurring items • Insurance compensation of business interruption (BI) of lost margin and additional costs in income statement BI (2012) BI (2013) BI (2014) 2) Reporte
Slide 41: Development Programme 2012-2013
Development Programme 2012-2013 • Cost saving and cash release programme • Production efficiency improvement and organisation restructuring • Cash free up from trade payables • Divestment of idle assets • No investments required FINANCIAL STATEMENTS 2013 41 12/02/2014
Slide 42: Development Programme 2014
Development Programme 2014 2012-2013 2014 • Cost saving and cash • Cost saving and cash release programme release programme • Production efficiency • Production restructuring improvement • Organisation restructuring • Organisation restructuring • Consolidation of Group • Cash free up from trade sour
Slide 43: Change in IFRS Segment Reporting in 2014
Change in IFRS Segment Reporting in 2014 2013 2013 EUR million Reported Restated Net sales 2 478,6 2 113,3 IFRS 11 Joint Arrangements EBIT 30,5 11,7 • Applicable in the EU as of 1 - EBIT % 1,2 0,6 January 2014 or subsequent EBIT excl. non-recurring items 30,0 11,2 accounting periods. • The standard
Slide 44: Outlook 2014
Outlook 2014 • HKScan expects the comparable operating profit (EBIT) margin to be 1 – 2 per cent, and anticipates that the last quarter will be the strongest. In 2013, the comparable operating profit (EBIT) margin was 0.5 per cent. − The outlook takes into account that the market area Poland (HKScan
Slide 45: Key Figures
Key Figures EUR million Q4/2013 Q4/2012 2013 2012 Net sales 640,6 662,4 2 478,6 2 503,1 EBIT 15,2 21,9 30,5 43,1 - EBIT % 2,4 3,3 1,2 1,7 EBIT excl. non-recurring items 11,1 15,5 30,0 36,7 - EBIT % 1,7 2,3 1,2 1,5 Profit before taxes 8,7 15,5 9,7 14,3 Profit for the review period 6,6 15,4 9,8 17,7 E
Slide 46: Thank you!
HASCAN Thank you!