Huhtamaki Oyj · OMXHEX:HUH1V
Huhtamaki Oyj — SEB Nordic Seminar 2017
25 slides from Huhtamaki Oyj's conference presentation, Jan 10, 2017
Slide 1: SEB Nordic Seminar 2017, Copenhagen
Jukka Moisio, CEO SEB Nordic Seminar 2017, Copenhagen January 10, 2017
Slide 2: We're the global specialist in packaging for food and drink
We’re the global specialist in packaging for food and drink Net sales EBIT margin Our ambition €2.8bn 9% The preferred global Comparable growth ROI food packaging brand 4% 15% Employees Manufacturing sites Our purpose 17,000 75 Helping great products Operations in reach more people, 34 countries mor
Slide 3: We're well positioned to deliver on our ambitions
We’re well positioned to deliver on our ambitions Who we are: Who we serve: What we offer: Main materials we use: FOODSERVICE #1 packaging company Paperboard operating globally MOLDED FIBER #1 company globally Recycled fibers FLEXIBLE PACKAGING Plastic & other #1 company in emerging materials market
Slide 4: Megatrends support food packaging growth
Megatrends support food packaging growth… Food packaging offers stable Innovations create more growth opportunities Food contact sustainable and easy-to-use over the cycle requirements create packaging a higher entry barrier Megatrends create opportunities for us More people Growing middle class Mor
Slide 5: Our positions offer good opportunities
… and our positions offer good opportunities Focus on consumer Major brand food and drink owners with high growth packaging ambitions as customers Product portfolio Geographic and innovations expansion Our growth opportunities Mature markets Developing markets approx. GDP growth + 2% even GDP growth
Slide 6: We target long-term growth both organically and via acquisitions
We target long-term growth both organically and via acquisitions 3-5 year growth ambition 5+% + 5+% 10+% € 5+bn p.a. if major Comparable Acquisitive acquisition growth growth ambition ambition € 4+bn with capex and add-on acquisitions Net sales Comparable growth 2010 2011 2012 2013 2014 2015 2016* 6
Slide 7: Growth and operational efficiency drive profitability improvement
Growth and operational efficiency drive profitability improvement – Summary of our new long-term ambitions Comparable growth 5+% 10+% 15+% 40-50% EBIT ROI DPS margin 5+% Balancing both EBIT margin and asset velocity → To deliver steadily improving returns Acquisitive growth → To ensure cash for grow
Slide 8: We're an industrial manufacturing company by nature
We’re an industrial manufacturing company by nature In 2012-2016, we have invested – M€ 635 in organic growth as capex – M€ 544 in acquisitions → Topline growth approx. M€ 950* with CAGR at 9.1% And we continue to address profitable growth opportunities – To expand our footprint – To widen our produ
Slide 9: We have built a unique global footprint
We have built a unique global footprint… Manufacturing units 2010 New manufacturing units 2011-2014 9 Investor Relations, January 2017 New manufacturing units 2015-2016 Sales only Head office
Slide 10: Major investments in growth in 2012-2016
… with major investments in growth in 2012-2016 Short-run flexible Paper and plastic packaging, Net sales in disposable packaging, Eastern Europe China & HK 2012-2016(2 Pressed Bags & UAE, Folding carton, Europe M€ +950 plates, US Malaysia from € 1.9 bn wraps, Corrugated Russia US, UK, to € 2.8 bn L
Slide 11: Growth case 1: Expansion to the US west coast
Our ongoing growth cases 1: Expansion to the US west coast – A world class manufacturing and distribution unit will be set up in Goodyear, Arizona, close to Phoenix – Serves southwest and west coast foodservice packaging and retail tableware markets with full range of foodservice packaging products
Slide 12: Growth case 2: Expansion and modernization in China
Our ongoing growth cases 2: Expansion and modernization in China – Huhtamaki will invest EUR 15 million in the expansion and modernization of its manufacturing operations in Guangzhou, South China – China is an important market for our quick service and specialty coffee customers – Growing populatio
Slide 13: Growth case 3: Flexible packaging greenfield in Egypt
Our ongoing growth cases 3: Flexible packaging greenfield in Egypt – Entry in manufacturing flexible packaging in Africa Egypt opens local access to North – The new state of the art manufacturing unit will be and East Africa trading blocks built in the greater Cairo area – Will be owned and operated
Slide 14: Growth case 4: Expanding flexible packaging footprint in India
Our ongoing growth cases 4: Expanding our flexible packaging footprint in India 2 new units in Northeast India Relocation of a unit in Mumbai – Flexible packaging manufacturing unit in Assam – A label manufacturing unit operating in the – Label manufacturing unit in Sikkim greater Mumbai area will b
Slide 15: How we support our customers' growth
How we support our customers’ growth We invest to expand We’re a safe pair of We offer a wide We take innovation our network and to hands throughout product range to into next level improve our our network make our customers’ loremipsum capabilities loremipsum lives easier loremipsum - Follow global
Slide 16: Recent new product development cases support customers' growth
Our recent new product development cases support our customers growth Molded fiber school lunch Launch of Impresso cup to trays in the US – investment McDonalds in Oceania in additional capacity Launch of Greenest and Touch Launch of new innovative egg cartons in Europe fruit and egg trays Innovatio
Slide 17: Our focus on food enables stronger collaboration between segments
Our focus on food enables stronger collaboration between segments Foodservice Molded E-A-O Fiber Our purpose: Stronger Our ambition: Helping great collaboration in The preferred products reach sourcing, operations, innovation, global food more people, commercial, people, and corporate responsibility
Slide 18: Profitable growth and improved EBIT margin
We aim to deliver profitable growth and improved EBIT margin… Ambition 10+% 9.1% 8.7% 7.8% 7.4% 6.9% 7.0% Focus on food enables stronger 6.2% collaboration between segments and drives profitability improvement – Raw material sourcing benefits – Continued cost containment – Improved operational effic
Slide 19: ... and strong returns
… and strong returns ROE ambition 18.1% 18.0% 18+% 16.1% 15.8% 15.8% 14.5% ROI ambition 15+% 11.0% 14.7% 14.7% 12.6% 12.6% 12.1% 12.0% 9.8% ROI ROE Net sales 2010 2011 2012 2013 2014 2015 2016* Packaging holding Full focus on food packaging Collaborative food packaging 19 Investor Relations, January
Slide 20: We have financial strength to continue investing
We have financial strength to continue investing Covenant level 3.5 Ambition 1.9 1.8 2-3 1.6 1.6 1.6 1.2 1.0 We’re self-funded for 0.50 0.50 0.53 0.61 growth and dividends 0.49 0.32 0.32 Net debt Net debt/EBITDA Gearing 270 393 406 405 288 551 681 Net sales 2010 2011 2012 2013 2014 2015 2016* Packag
Slide 21: We've introduced higher long-term ambitions for the Group
We’ve introduced higher long-term ambitions for the Group Mid-term Mid-term New LTM ambition since ambition since long-term FY 2012 FY 2013 FY 2014 FY 2015 Q3 16 CMD 2013 CMD 2015 ambition Organic growth 3% 3% 6% 4% 4% 5+% 5-7% 5+% EBITDA margin 10.9% 11.2% 11.6% 12.5% 13.1% 12+% 13+% 14+% EBIT marg
Slide 22: Growing into the preferred global food packaging brand – next steps
Growing into the preferred global food packaging brand – next steps Grow AMBITION Build more Achieve our ambition 10+% - Organic and - Continue organic investments The preferred global food innovative growth 5+% - Continue disciplined packaging brand - Acquisitive growth 5+% acquisitions Raise EBIT
Slide 23: Helping great products reach more people, more easily
Helping great products reach more people, more easily
Slide 24: 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 25: For further information, please contact us
For further information, please contact us: www.huhtamaki.com » Investors ir@huhtamaki.com Investor Relations Kaisa Uurasmaa Tel. +358 10 686 7815 kaisa.uurasmaa@huhtamaki.com