Huhtamaki Oyj · OMXHEX:HUH1V
Huhtamaki Oyj — FY2021 Earnings Presentation
30 slides from Huhtamaki Oyj's earnings presentation, Feb 10, 2022
Slide 1: Strong net sales growth and solid profitability in a challenging market
Strong net sales growth and solid profitability in a challenging market Results 2021 Thomas Geust Deputy CEO
Slide 2: Our operating environment
Our operating environment Huhtamaki
Slide 3: Delivering on our transformation, in 2021's challenging environment
Delivering on our transformation, in 2021’s challenging environment • Strong growth – driven by positive impact of acquisitions, pricing actions and recovery of food service • Challenging environment - caused by supply chain disruption leading to extraordinary inflation • Innovation pipeline- launch
Slide 4: In 2021, our strong innovation pipeline delivered sustainable packaging solutions for our customers
In 2021, our strong innovation pipeline delivered sustainable packaging solutions for our customers McDonald's Sundae cup and cold cup lid Paperboard yogurt cup Push Tab® paper Fiber Foodservice EAO North America Flexible Packaging Next Generation ElifNatty & ElifProLite Home Delivery Range Smilepac
Slide 5: Business performance
Business performance Huhtamaki
Slide 6: Q4 2021: Strong comparable net sales growth
Q4 2021: Strong comparable net sales growth Development of net sales in Q4 2021 Net sales increased 23% in Q4 2021 (EUR million) • Comparable net sales growth 12% 24 (19% in emerging markets) 65 • 8% from acquisitions – including Elif 98 and Hihio-Art acquisitions 999 • 3% positive currency impact 8
Slide 7: FY 2021: Strong comparable net sales growth
FY 2021: Strong comparable net sales growth Development of net sales in 2021 Net sales increased 8% in 2021 (EUR million) • Comparable net sales growth 7% (13% in emerging markets) 77 -54 250 • 2% from acquisitions – including Elif and Hihio-Art acquisitions 3,575 3,302 • -2% negative currency impac
Slide 8: Growth driven by continued in-home consumption supported by recovery in foodservice categories
Growth driven by continued in-home consumption supported by recovery in foodservice categories Long-term Comparable growth Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 2020 2021 ambitions Foodservice E-A-O -7% -2% 40% 2% 12% -10% 11% 5-7% North America -2% -2% 9% 5% 11% 1% 6% 3-5% Flexible Packaging -0% 0% 6% 7% 1
Slide 9: Growth in Q4 accelerated - boosted by acquisitions and pricing to offset cost inflation
Growth in Q4 accelerated - boosted by acquisitions and pricing to offset cost inflation MEUR Q4 21 Q4 20 Change 2021 2020 Change Net sales 999.5 812.8 23% 3,574.9 3,301.8 8% Adjusted EBIT1 82.2 72.8 13% 315.3 302.1 4% Margin 8.2% 9.0% 8.8% 9.1% Adjusted EPS, EUR2 0.54 0.48 13% 2.07 1.95 6% Capital e
Slide 10: Embedding sustainability in everything we do – 2021 Highlights
Embedding sustainability in everything we do – 2021 Highlights 2021 Full Year performance Other highlights • Good performance on ESG ratings; improvement on S&P Global CSA, Ecovadis, CDP’s water, climate and forest assessments • First European VPPA signed with 200GWh of new renewable electricity ann
Slide 11: Business segment review
Business segment review Huhtamaki
Slide 12: Foodservice EAO: Continued recovery throughout the year
Foodservice EAO: Continued recovery throughout the year Key figures, MEUR Q4 21 Q4 20 Change Net sales and comparable growth (EUR million & %) Net sales 254.0 213.5 19% Comparable growth 12% -7% Adjusted EBIT1 19.5 15.5 25% Margin 7.7% 7.3% Comp. Capital expenditure 40.5 31.6 28% growth Operating ca
Slide 13: North America: Strong performance despite increasingly inflationary environment
North America: Strong performance despite increasingly inflationary environment Key figures, MEUR Q4 21 Q4 20 Change Net sales and comparable growth (EUR million & %) Net sales 314.7 274.0 15% Comparable growth 11% -2% Adjusted EBIT1 33.9 32.2 5% Margin 10.8% 11.8% Comp. Capital expenditure 36.2 35.
Slide 14: Flexible Packaging: Strong growth, supported by Elif acquisition – slight improvement in cost mitigation
Flexible Packaging: Strong growth, supported by Elif acquisition – slight improvement in cost mitigation in Q4 Key figures, MEUR Q4 21 Q4 20 Change Net sales and comparable growth (EUR million & %) Net sales 344.8 250.8 38% Comparable growth 12% -0% Adjusted EBIT1 24.5 17.9 36% Margin 7.1% 7.2% Comp
Slide 15: Fiber Packaging: Growth impacted by softened demand in egg packaging
Fiber Packaging: Growth impacted by softened demand in egg packaging Key figures, MEUR Q4 21 Q4 20 Change Net sales and comparable growth (EUR million & %) Net sales 91.5 85.4 7% Comparable growth 2% 8% Adjusted EBIT1 10.7 12.7 -15% Margin 11.7% 14.8% Comp. Capital expenditure 22.2 22.5 -1% growth O
Slide 16: Financial review
Financial review Huhtamaki
Slide 17: Solid adjusted EBIT margin
Solid adjusted EBIT margin MEUR Q4 21 Q4 20 Change 2021 2020 Change Net sales 999.5 812.8 23% 3,574.9 3,301.8 8% • Sales growth supported by all Adjusted EBITDA1 130.3 116.8 12% 488.4 473.1 3% segments in Q4, Elif acquisition contributed positively Margin 1 13.0% 14.4% 13.7% 14.3% Adjusted EBIT2 82.
Slide 18: Currency impact remained positive in Q4 2021
Currency impact remained positive in Q4 2021 Average Average Change in Change in Closing rates rate rate average closing 2020 2021 rate Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 rate (YoY) USD 1.14 1.18 -4% 1.23 1.17 1.19 1.17 1.13 8% Foreign currency INR 84.54 87.50 -4% 89.88 86.25 88.31 86.47 84.26 6% transla
Slide 19: Net debt to adjusted EBITDA increased following acquisition
Net debt to adjusted EBITDA increased following acquisition Net debt, net debt/adj. EBITDA and gearing • Acquisition of Elif impacting Covenant level 3.75 balance sheet: 3.0 3.1 • Net debt/Adj. EBITDA increased 1,520 to 3.1 at year-end 1,404 Ambition • Gearing 0.95 2.1 2.0 1.9 1.9 1.9 2–3 • Ratios p
Slide 20: Loan maturities
Loan maturities Debt maturity structure December 31, 2021 (EUR million) • MEUR 400 syndicated revolving 700 credit facility extended in Dec. 600 2021 for an additional year 500 • To support the financing of Elif 400 Huhtamaki signed, in August 300 2021, a bridge financing facility of MUSD 500 200 •
Slide 21: Free cash flow impacted by working capital and higher cash taxes
Free cash flow impacted by working capital and higher cash taxes Free cash flow bridge Cash flow impacted by: (EUR million) • Adjusted EBITDA at previous year’s level 470 465 • In comparison period, Laminor gain of ~20 MEUR is recognized as non- cash in ‘Other’ 207 • Large change in working capital
Slide 22: Stable financial position, also post Elif acquistion
Stable financial position, also post Elif acquistion MEUR Dec 2021 Dec 2020 • Acquisition of Elif mainly impacting balance sheet at Dec 31, 2021 Total assets 4,542 3,596 Operating working capital 684 514 • Assets increased Net debt 1,520 867 • Net debt and gearing increased Equity & non-controlling
Slide 23: The Board of Directors aims for predictable and growing dividends
The Board of Directors aims for predictable and growing dividends Dividend per share (EUR) and payout ratio (% of adjusted EPS) 2021* 2020 Change 65% Adjusted EPS 2.07 1.95 6% Dividend per share 0.94 0.92 2% 53% 50% 50% 47% 47% 47% 47% 47% Long-term ambition: Payout ratio 45% 47% 45% Payout ratio 42
Slide 24: Progress towards long-term financial ambitions
Progress towards long-term financial ambitions Long-term 2014 2015 2016 2017 2018 2019 2020 2021 ambition Organic growth 6% 4% 4% 3% 5% 6% -2% 7% 5+% Adjusted EBIT margin 7.8% 8.7% 9.4% 9.0% 8.1% 8.6% 9.1% 8.8% 10+% Net debt/Adj. EBITDA 1.0 1.6 1.8 1.8 2.3 2.0 1.8 3.1 2-3 Dividend payout ratio 47% 4
Slide 25: Looking forward
Looking forward Huhtamaki
Slide 26: Outlook 2022
Outlook 2022 The Group’s trading conditions are expected to improve compared to 2021, however with continued volatility in the operating environment. Huhtamaki's diversified product portfolio provides resilience and the Group’s good financial position enables addressing profitable growth opportuniti
Slide 27: Short-term risks and uncertainties
Short-term risks and uncertainties The COVID-19 pandemic may create further disturbances in the Group’s trading conditions and its operating environment, as well as in demand for the Group’s products. Availability and cost of raw material, distribution and energy as well as movements in currency rat
Slide 28: Financial calendar 2022
Financial calendar 2022 Week commencing April 27, 2022 February 28, 2022 Q1 2022 Interim Report, Annual Report 2021 Annual General Meeting July 21, 2022 October 21, 2022 Half-yearly Report 2022 Q3 2022 Interim Report 28 February 10, 2022 Results 2021
Slide 29: 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 30: For further information, please contact us:
For further information, please contact us: ir@huhtamaki.com www.huhtamaki.com/investors February Results 30 2021 10, 2022