Hkfoods Oyj Class A · OMXHEX:HKFOODS
Hkfoods Oyj Class A — HKScan — FY2012 Earnings Presentation
37 slides from Hkfoods Oyj Class A's earnings presentation, Feb 15, 2013
Slide 1: HKScan Group 2012 Results
HKScan Group 2012 Results Hannu Kottonen, CEO Investor and media briefing 15 February 2013 15.2.2013 1
Slide 2: HKScan Group
HKScan Group 15.2.2013 Hannu Kottonen, HKScan 2
Slide 3: HKScan Group
HKScan Group • Performance was below expectations, except in Poland. • EBIT still weak, but cash flow improved • The business was hit by higher feed prices after Q2; higher costs were gradually passed on to sales prices. • Revised strategy, new operating model and organisation were launched. – Away
Slide 4: Group EBIT Q1-Q4 2011 vs. Q1-Q4 2012
Group EBIT Q1-Q4 /2011 vs. Q1-Q4/2012 15.2.2013 Hannu Kottonen, HKScan 4
Slide 5: Group EBIT Q4 2011 vs. Q4 2012
Group EBIT Q4 /2011 vs. Q4 /2012 15.2.2013 Hannu Kottonen, HKScan 5
Slide 6: Group EBIT Q1-Q4 2008-2012
Group EBIT Q1-Q4/2008-2012 15.2.2013 Hannu Kottonen, HKScan 6
Slide 7: Group Cash Flow before Debt Service
Group Cash Flow before Debt Service Q1-Q4 /2011 vs. Q1-Q4/2012 15.2.2013 Hannu Kottonen, HKScan 7
Slide 8: Group Cash Flow before Debt Service
Group Cash Flow before Debt Service Q1-Q4/2011 vs. Q1-Q4/2012 15.2.2013 Hannu Kottonen, HKScan 8
Slide 9: HKScan Meat Value Chain
HKScan Meat Value Chain Value-added activities Supply Chain Management Technology, Research and Development Sales, Marketing and Customer service Human Resource Management Materials and Services Sourcing Meat supply chain (pork, poultry, beef, lamb) Breeding/ Animal Production Industrial Production
Slide 10: Hannu Kottonen, HKScan
15.2.2013 Hannu Kottonen, HKScan 10
Slide 11: Feed Basket – Pork
Feed Basket – Pork Source: HKScan 15.2.2013 Hannu Kottonen, HKScan 11
Slide 12: Feed Basket – Poultry
Feed Basket – Poultry Source: HKScan 15.2.2013 Hannu Kottonen, HKScan 12
Slide 13: Market Area Finland
Market Area Finland • Profitability at modest level, but slightly up • Rising raw material prices and other cost increases • Public Health Award 2012 • Rypsiporsas® (“Rapeseed Pork”) success • Legal structure streamlined, several changes in organisation • Plans to restructure functions and operation
Slide 14: Public Health Award 2012
National Institute for Health and Welfare (THL) Public Health Award 2012 to HK Ruokatalo for promotion of cardiac health 15.2.2013 Hannu Kottonen, HKScan 14
Slide 15: Market Area Baltics
Market Area Baltics • Stable sales development and strong local brand sales • Improved performance in Estonia and Latvia, declined profitability in Lithuania. Challenges in exports. • Several projects to improve efficiency; • Organisational streamlining towards “one company” • Reorganisation of sale
Slide 16: Market Area Sweden
Market Area Sweden • Initial stabilisation of business after a very bad H1 • Higher sales prices improved the profitability during H2 • High raw material prices and lower availability of domestic beef and pork • Rapsgris (“Rapeseed Pork”) launched to AfH and retail • Strong sales of Pärsons-branded
Slide 17: Market Area Denmark
Market Area Denmark • Good development of business in H1 hit by the fire in Vinderup in June • Recovery programme managed with success. Positive momentum in fresh poultry business to be gained back. • Launches of new poultry products • Non-recurring items related to the fire; – property insurance co
Slide 18: Market Area Poland
Market Area Poland *) • Good sales development throughout the year – Strong sales of processed products, successful new product launches and high brand recognition • Strong export sales, strengthened Polish currency reduced margins • Difficult year for meat industry. Primary production weakens and c
Slide 19: Key figures
Key figures 15.2.2013 Hannu Kottonen, HKScan 19
Slide 20: Group EBIT Development 2008-2012
Group EBIT Development 2008-2012 15.2.2013 Hannu Kottonen, HKScan 20
Slide 21: Group Cash Flow before Debt Service
Group Cash Flow before Debt Service 15.2.2013 Hannu Kottonen, HKScan 21
Slide 22: Cash Flow before Financing Activities
Cash Flow before Financing Activities 15.2.2013 Hannu Kottonen, HKScan 22
Slide 23: Investments
Investments 15.2.2013 Hannu Kottonen, HKScan 23
Slide 24: Profit before Taxes
Profit before Taxes 15.2.2013 Hannu Kottonen, HKScan 24
Slide 25: Profit for the Period
Profit for the Period 15.2.2013 Hannu Kottonen, HKScan 25
Slide 26: Earnings per Share (EPS)
Earnings per Share (EPS) 15.2.2013 Hannu Kottonen, HKScan 26
Slide 27: Return on Capital Employed (ROCE)
Return on Capital Employed (ROCE) 15.2.2013 Hannu Kottonen, HKScan 27
Slide 28: Net Gearing
Net Gearing 15.2.2013 Hannu Kottonen, HKScan 28
Slide 29: Equity Ratio
Equity Ratio 15.2.2013 Hannu Kottonen, HKScan 29
Slide 30: Key Figures
Key Figures 15.2.2013 Hannu Kottonen, HKScan 30
Slide 31: Outlook
Outlook
Slide 32: Outlook
Outlook • Business environment continues to remain tough as both animal supply and consumer purchasing power are estimated to tighten further. • Demand for meat in general is expected to develop steadily. • The Group focuses on managing future business dynamics by – tight control on costs and capita
Slide 33: Years of Finnish Favourites
YEARS OF FINNISH FAVOURITES
Slide 34: 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 35: Group structure
Group structure Luleå HKScan Group Net sales 2012: EUR 2 547 million Outokumpu Forssa Mikkeli Eura Mellilä Vantaa Turku Tallinna St Petersburg Örebro Stockholm Rakvere Skara Linköping Viiratsi Skovsgaard 50 % Vinderup Halmstad Riga Kristianstad Jelgava Finland Baltics Sweden Denmark Poland Padborg N
Slide 36: HKScan Operating Model
HKScan Operating Model Technology & Operations Development Aki Laiho* Consumer Consumer AfH Sokolów HR + Finland and Scandinavia other Sari Suono* (as of 2 April 2013) the Baltics joint ventures Legal and Administration Anne Mere* Göran Holm* Jukka Markku Suvanto* Nikkinen* Finance Tuomo Valkonen* T
Slide 37: HKScan 100 years
HKScan 100 years