Huhtamaki Oyj · OMXHEX:HUH1V
Huhtamaki Oyj — FY2019 Earnings Presentation
27 slides from Huhtamaki Oyj's earnings presentation, February 2020
Slide 1: Results 2019
Results 2019 President and CEO Charles Héaulmé CFO Thomas Geust
Slide 2: Solid comparable growth in Q4 19
Solid comparable growth in Q4 19 8% net sales growth in Q4 19 5 23 – 5% comparable net sales growth (6% in emerging markets) 34 – 1% from acquisitions – 3% positive currency impact 875 +8% 813 M€ Q4 2018 Organic Acquisitions Translation impact Q4 2019 2 Results 2019 Comparable net sales growth is gr
Slide 3: Comparable growth in line with our long-term ambition in FY 2019
Comparable growth in line with our long-term ambition in FY 2019 10% net sales growth in 2019 90 – 6% comparable net sales growth 47 (7% in emerging markets) 158 – 2% from acquisitions – 3% positive currency impact 3,399 +10% 3,104 M€ 2018 Organic Acquisitions Translation impact 2019 3 Results 2019
Slide 4: All segments contributing to comparable net sales growth
All segments contributing to comparable net sales growth Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 2018 2019 Long-term ambitions Foodservice E-A-O 3% 4% 3% 4% 4% 4% 4% 5-7% North America 11% 5% 13% 14% 6% 5% 9% 2-5% Flexible Packaging 4% 5% 1% 4% 3% 7% 3% 6-8% Fiber Packaging 5% 4% 7% 7% 8% 4% 6% 5-7% Group 6%
Slide 5: Earnings increase outperforming sales growth
Earnings increase outperforming sales growth MEUR Q4 19 Q4 18 Change 2019 2018 Change Net sales 874.6 812.8 8% 3,399.0 3,103.6 10% Adjusted EBIT1 74.7 62.4 20% 293.1 251.0 17% Margin 8.5% 7.7% 8.6% 8.1% Adjusted EPS, EUR2 0.48 0.45 8% 1.88 1.69 11% Capital expenditure 71.0 70.4 1% 203.9 196.9 4% Q4
Slide 6: Business segment review
siness segment review Huhtamaki
Slide 7: Foodservice Europe-Asia-Oceania: Solid net sales growth and improved profitability
Foodservice Europe-Asia-Oceania: Solid net sales growth and improved profitability Key figures, MEUR Q4 19 Q4 18 Change Net sales (MEUR) and comparable growth (%) Net sales 245.3 231.6 6% Adjusted EBIT1 20.9 18.0 16% 245 228 241 230 242 232 Margin1 8.5% 7.8% 221 199 2018 Capital expenditure 26.1 19.
Slide 8: North America: Continued strong growth and earnings improvement
North America: Continued strong growth and earnings improvement Key figures, MEUR Q4 19 Q4 18 Change Net sales (MEUR) and comparable growth (%) Net sales 303.6 276.6 10% Adjusted EBIT1 33.1 19.4 71% 306 287 304 Margin1 10.9% 7.0% 257 277 2018 256 242 Capital expenditure 15.9 20.3 -22% 227 2019 Opera
Slide 9: Flexible Packaging: Moderate net sales growth and improvement in earnings
Flexible Packaging: Moderate net sales growth and improvement in earnings Key figures, MEUR Q4 19 Q4 18 Change Net sales (MEUR) and comparable growth (%) Net sales 255.1 235.5 8% Adjusted EBIT1 18.8 16.9 11% 252 249 261 255 234 240 242 236 Margin1 7.4% 7.2% 2018 Capital expenditure 15.2 16.0 -5% 201
Slide 10: Acquisition for full ownership in joint venture company in Brazil
Acquisition for full ownership in joint venture company in Brazil Announced on December 23, 2019 Recent completed acquisitions Laminor S.A. Announced on September 27, 2019 Joint venture Brazil 70% Everest Flexibles South Africa – Huhtamaki acquires full ownership of joint venture company Net sales L
Slide 11: Fiber Packaging: Strong net sales growth
Fiber Packaging: Strong net sales growth Key figures, MEUR Q4 19 Q4 18 Change Net sales (MEUR) and comparable growth (%) Net sales 76.1 72.9 4% Adjusted EBIT1 7.5 8.7 -14% 78 73 76 Margin1 9.8% 12.0% 70 72 71 69 68 2018 Capital expenditure 13.7 13.6 1% 2019 Operating cash flow1 7.8 4.2 86% 5% 4% 3%
Slide 12: Financial review
Financial review Huhtamaki
Slide 13: Increased net sales feeding through to EPS
Increased net sales feeding through to EPS MEUR Q4 19 Q4 18 Change 2019 2018 Change Highlights Net sales 874.6 812.8 8% 3,399.0 3,103.6 10% – Solid growth and positive currency Adjusted EBITDA1 117.3 101.9 15% 456.3 398.7 14% translation Margin1 13.4% 12.5% 13.4% 12.8% – Net sales growth, operationa
Slide 14: Continuing positive currency impact, mostly from USD
Continuing positive currency impact, mostly from USD Closing rates Change in Average rate Average rate average rate 2018 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 2019 (%) USD 1.18 1.15 1.12 1.14 1.09 1.12 1.12 5% INR 80.72 80.23 77.78 78.57 77.07 79.81 78.85 2% Foreign currency translation GBP 0.88 0.90 0.86 0
Slide 15: Net debt decreased mainly due to improved working capital
Net debt decreased mainly due to improved working capital Covenant level 3.5 2.4 AMBITION – Net debt/Adj. EBITDA at 2.0 2.4 2.3 2.1 2-3 – At the end of Q4 19 2.0 – Cash and cash equivalents 2.2 2.2 2.2 EUR 199 million – Unused committed credit 1.8 Net debt, M€ facilities available EUR 302 million Ne
Slide 16: Loan maturities
Loan maturities Debt maturity structure December 31, 2019 (EUR million) 600 – In 2019, Huhtamaki issued a 500 seven-year senior unsecured bond of EUR 175 million 400 – Average maturity 3.4 years at 300 the end of Q4 2019 (3.7 at the end of Q4 2018) 200 – Unused committed credit 100 facilities of EUR
Slide 17: Strong free cash flow improvement
Strong free cash flow improvement 449 Cash flow driven by: 390 – Higher EBITDA following net sales growth, pricing actions 226 and efficiency improvement measures 80 45 – Partly offset by one-time gain in 3 3 8 MEUR 2018 -10 -69 -18 -17 -39 -38 – Improvement in net working capital in Q4 19 -204 -197
Slide 18: Stable financial position
Stable financial position MEUR Dec 2018 Dec 2019 Total assets 3,240 3,611 – Higher assets and net debt decrease Operating working capital 598 585 following growth Net debt 928 904 Equity & non-controlling interest 1,267 1,437 – Gearing improved Gearing 0.73 0.63 Adjusted ROI1 11.6% 12.3% Adjusted RO
Slide 19: The Board of Directors aims at predictable and growing dividends
The Board of Directors aims at predictable and growing dividends Dividend per share (EUR) and payout ratio (% of adjusted EPS) 2019* 2018 Change 65% Adjusted EPS 1.88 1.69 11% Dividend 0.89 0.84 6% Payout ratio 47% 50% 53% 50% 50% 47% 47% 47% 47% Long-term ambition: Share price on Dec 31 41.38 27.07
Slide 20: Progress towards long-term ambitions
Progress towards long-term ambitions Long-term FY 2014 FY 2015 FY 2016 FY 2017 FY 20181 FY 2019 ambition Organic growth 6% 4% 4% 3% 5+% 6% 5+% Adjusted EBITDA margin 11.6% 12.5% 13.3% 13.0% 12.8% 13.4% 14+% Adjusted EBIT margin 7.8% 8.7% 9.4% 9.0% 8.1% 8.6% 10+% Adjusted ROI 12.6% 14.7% 14.7% 13.6%
Slide 21: Looking forward
Looking forward Huhtamaki
Slide 22: Outlook 2020
Outlook 2020 The Group’s trading conditions are expected to remain relatively stable during 2020. The good financial position and ability to generate a positive cash flow will enable the Group to address profitable growth opportunities. Capital expenditure is expected to be approximately at the same
Slide 23: Short-term risks and uncertainties
Short-term risks and uncertainties Volatile raw material and energy prices as well as movements in currency rates are considered to be relevant short-term business risks and uncertainties in the Group's operations. General political, economic and financial market conditions, and serious virus outbre
Slide 24: Financial calendar 2020
Financial calendar 2020 March 24, 2020 Week 10 April 29 Capital Markets Day Annual Accounts 2019 Q1 2019 Interim Report Helsinki, Finland Annual General Meeting More information to follow. July 23 October 22 Half-yearly Report 2020 Q3 2020 Interim Report 24 Results 2019
Slide 25: Helping great products reach more people, more easily
Helping great products reach more people, more easily
Slide 26: Disclaimer
Disclaimer Information presented herein contains, or may be deemed to contain, forward-looking statements. These statements relate to future events or Huhtamäki Oyj’s or its affiliates’ (“Huhtamaki”) future financial performance, including, but not limited to, strategic plans, potential growth, expe
Slide 27: For further information, please contact us
For further information, please contact us: www.huhtamaki.com » Investors ir@huhtamaki.com