2010-02-12 07:30:00 CET
2010-02-12 07:34:29 CET
REGLERAD INFORMATION
Huhtamäki Oyj - Financial Statement Release
Results 2009: Improved profitability and strong cash flow despite lower net sales
HUHTAMÄKI OYJ STOCK EXCHANGE RELEASE AT 12.2.2010 AT 8:30
- Group net sales reduced due to lower demand, divestments, and discontinued
operations
- Profitability improved markedly
- Strong cash flow; net debt reduced considerably
- The Board of Directors proposes a dividend of EUR 0.38 (EUR 0.34 for 2008) per
share
Key figures
EUR million Q1-Q4 2009 Q1-Q4 2008 Q4 2009 Q4 2008
Net sales 2,037.7 2,260.0 476.2 548.8
EBIT* 119.1 -74.5 6.5 -147.7
EBIT margin % 5.8 -3.3 1.4 -26.9
EPS 0.63 -1.12 -0.02 -1.43
ROI % (12m roll.) 9.6 -4.8 - -
* EBIT includes non-recurring charges of EUR 10.1 million in Q4 2009, EUR 13.9
million in Q1-Q4 2009, EUR 158.6 million in Q4 2008 and EUR 165.5 million in
Q1-Q4 2008.
CEO Jukka Moisio: "Huhtamaki had a financially strong year even if sales volumes
declined due to soft market sentiment and demand.Our performance in
profitability was good with a clear improvement in earnings from the previous
year. We reduced our net debt by a third and achieved a significant improvement
in ROI (return on investment). Cost control and cash generation as well as price
and product mix management were key priorities throughout the year.
The financial foundation for further developing our business strongholds has
been laid. Huhtamaki's stronghold business segments performed well in 2009 and
the strategic review of the Rigid Consumer Goods Plastics operations proceeded
according to our expectations.Industrial performance was improved, benefiting
both Huhtamaki and our customers. Huhtamaki is in a good position to start the
year 2010."
Overview
The year was characterized by customer cautiousness and uncertainty. Demand
remained sluggish throughout the year. At EUR 2,038 million (EUR 2,260 million
in 2008), the Group net sales declined due to lower volumes, divestments and
discontinued operations. In addition, currency translations had a minor adverse
effect on the euro-denominated value of net sales.
Despite the decline in net sales, profitability improved markedly. The full year
Group EBIT, excluding non-recurring charges, was higher than the previous year.
In the first half of the year North America and Rigid Consumer Goods Plastics
("Consumer Goods") segments improved earnings strongly, while towards the year
end Flexibles Global ("Flexibles") and Rough Molded Fiber Global ("Molded
Fiber") segments showed progress compared to the previous year. Foodservice
Europe-Asia-Oceania ("Foodservice") segment also improved earnings but Films
Global ("Films") segment suffered from low demand and reported reduced earnings
compared to the previous year. Most of the business segments were able to
maintain sound margins, and successful cost reductions added to earnings growth.
These positive factors more than compensated for the decrease of volumes which
was experienced in most business segments.
Cash flow generation was strong throughout 2009, supported by improved working
capital efficiency and low capital expenditure. All segments achieved good
results in cash generation. This contributed to a considerable reduction of net
debt, which advanced the accomplishment of the Group's key financial targets.
Business review by segment
The sales distribution in 2009 was following: Flexibles Global 22% (21%), Films
Global 7% (9%), North America 25% (23%), Rough Molded Fiber Global 10% (9%),
Foodservice Europe-Asia-Oceania 22% (21%) and Rigid Consumer Goods Plastics 14%
(17%).
Flexibles Global
Flexibles business is organized as a global segment. Flexibles are used for
consumer packaging of a wide range and variety of food, personal and health care
and other products.
EUR million Q1-Q4 2009 Q1-Q4 2008 Q4 2009 Q4 2008
Net sales 464.3 497.6 110.2 117.1
EBIT* 28.4 -1.0 7.2 -16.6
EBIT margin % 6.1 -0.2 6.5 -14.2
RONA % (12m roll.) 8.8 -0.3 - -
* EBIT includes non-recurring charges of EUR 17.9 million in Q4 2008 and Q1-Q4
2008.
The segment's net sales declined during the year, remaining soft also in the
fourth quarter. While sales volumes were stable in comparison to prior year,
price reductions applied as a result of lower raw material costs had a negative
impact on the net sales. The discontinued operations in Malvern, USA, also had a
decreasing effect on net sales.
Despite lower net sales, the segment's earnings growth accelerated towards year
end. EBIT reflects successful cost containment, better operational control and
the elimination of Malvern losses. The segment made a very good operating cash
flow on the fourth quarter, which accumulated to a strong full year operating
cash flow.
During the year, a production unit in Thane, India was reconstructed and a new
enterprise resource planning (ERP) system was implemented at all four sites in
India.
Films Global
Films business is organized as a global segment. Films are mainly used for
technical applications in the label, adhesive tape, hygiene and health care
industries, as well as building and construction, automotive, packaging and
graphic arts industries.
EUR million Q1-Q4 2009 Q1-Q4 2008 Q4 2009 Q4 2008
Net sales 154.4 200.7 32.8 41.9
EBIT* -2.7 7.9 -1.3 0.1
EBIT margin % -1.7 3.9 -4.0 0.2
RONA % (12m roll.) -2.2 5.6 - -
* EBIT includes non-recurring charges of EUR 3.8 million Q1-Q4 2009.
Films segment suffered from low customer demand, particularly in industrial
applications. Volume shortfall was obvious throughout the year and also some
price reductions were made. There was, however, some recovery of orders towards
the end of the year.
The segment's negative volume development was reflected in its earnings decline.
EBIT includes a EUR 4 million non-recurring charge related to the divestment of
the release paper business and the resulting restructuring of operations in
Forchheim, Germany.
All manufacturing of the divested release paper business in Forchheim is
scheduled to be finalized and transferred to the buyer, B. Laufenberg GmbH, by
the end of the first quarter of 2010.
North America
The segment includes the Rigid and Molded Fiber business in North America and
Mexico. Rigid paper and plastic packaging, which serves ice-cream and other
consumer goods as well as foodservice markets, is completed with Molded Fiber
Chinet® disposable tableware products.
EUR million Q1-Q4 2009 Q1-Q4 2008 Q4 2009 Q4 2008
Net sales 528.7 536.0 117.2 149.9
EBIT* 55.5 33.4 2.9 1.2
EBIT margin % 10.5 6.2 2.5 0.8
RONA % (12m roll.) 14.8 8.9 - -
* EBIT includes non-recurring charges of EUR 5.2 million in Q4 2008 and Q1-Q4
2008.
The segment's sales growth was strong in the first half of the year but,
together with volumes, slowed down towards the end of the year. The slowdown in
sales was attributable to soft market conditions, as well as the refocus and
downscaling of the plastics operations with the closure of the site in Phoenix,
USA. While the full year currency translation impact was positive, the impact
turned unfavorable towards the year end. Retail sales grew due to new products
and strong marketing efforts while foodservice sales suffered from soft market
conditions and the restructuring of the plastics operations. In Frozen desserts
business, market positions were strengthened and sales grew slightly.
North America segment's EBIT was supported by the strong market positions in
North America. The growth in EBIT was attained by careful cost containment,
successful margin management and improved product mix. Unfavorable currency
translation, volume softness and high marketing expenditure related to Chinet®
brand re-launch slowed down earnings generation in the fourth quarter of the
year.
Rough Molded Fiber Global
The segment includes the Rough Molded Fiber business in Europe, Oceania, Africa
and South America. Rough molded fiber is used to make fresh product packaging,
such as egg and fruit packaging.
EUR million Q1-Q4 2009 Q1-Q4 2008 Q4 2009 Q4 2008
Net sales 207.6 214.0 56.0 51.7
EBIT* 17.6 8.4 4.8 -1.4
EBIT margin % 8.5 3.9 8.6 -2.7
RONA % (12m roll.) 10.5 4.8 - -
* EBIT includes non-recurring charges of EUR 3.7 million in Q4 2008 and Q1-Q4
2008.
The segment's net sales decreased from previous year due to low sales in the
machine and waste paper trading operations as well as an adverse impact from
currency translations. Molded fiber packaging sales were up in all geographic
regions and growth accelerated in the fourth quarter. In particular, egg
packaging demand was robust and the Group strengthened its market positions.
Molded Fiber segment's earnings growth reflects good cost containment and
efficient operations. Towards the year end, positive volumes contributed to
improved profitability.
Foodservice Europe-Asia-Oceania
Foodservice paper and plastic disposable tableware is supplied to foodservice
operators and fast food restaurants.
EUR million Q1-Q4 2009 Q1-Q4 2008 Q4 2009 Q4 2008
Net sales 449.6 489.5 108.1 114.9
EBIT* 16.3 -1.6 0.7 -15.2
EBIT margin % 3.6 -0.3 0.6 -13.2
RONA % (12m roll.) 6.9 -0.6 - -
* EBIT includes non-recurring charges of EUR 14.5 million in Q4 2008 and Q1-Q4
2008.
Foodservice segment's volumes decreased. The decline in net sales reflects
market softness and an adverse impact from currency translations. Most of the
European markets were soft. Sales in Oceania, instead, showed moderate but
steady growth. No clear change of these trends was seen in the fourth quarter.
The segment's EBIT was supported by growth in Oceania, improved operational
control in Asia as well as good overall cost containment.
In Europe and in Australia legal and operational segregation of Consumer Goods
business was completed successfully, with no impact on customer service level
throughout the process.
Rigid Consumer Goods Plastics
The segment includes the Rigid Consumer Goods Plastics business in Europe and
Oceania. Rigid plastic packaging serves the consumer goods markets with fresh
food, dairy, ice cream and edible fats packaging.
EUR million Q1-Q4 2009 Q1-Q4 2008 Q4 2009 Q4 2008
Net sales 282.2 389.8 61.9 86.8
EBIT* 9.6 -123.4 -6.6 -117.7
EBIT margin % 3.4 -31.7 -10.7 -135.6
RONA % (12m roll.) 9.2 -52.8 - -
* EBIT includes non-recurring charges of EUR 10.1 million in Q4 2009 and Q1-Q4
2009, EUR 117.3 million in Q4 2008 and EUR 124.2 million in Q1-Q4 2008.
The segment's net sales were reduced due to divestments, adverse currency
translations and lower volumes. While sales increased in Eastern Europe and in
Australia, sales in other markets declined.
Consumer Goods segment's EBIT includes EUR 10 million of non-recurring charges
(EUR 124 million of non-recurring charges) related to execution of the strategic
review of the segment. In detail, the sale of the Consumer Goods units in
Australia and South America resulted to a book loss of
EUR 7 million. The segregation and ongoing strategic review of Consumer Goods
operations in Europe resulted in a non-recurring charge of EUR 3 million. The
improvement in earnings is due to significant cost reduction and efficient
operational control.
The divestment of the remaining Consumer Goods business in Australia was
finalized in the fourth quarter of the year. The business was sold to Alto
Manufacturing Pty Ltd, a subsidiary of Pact Group Pty Ltd.With three
manufacturing units in Bankstown, Mulgrave and Wacol and some 330 employees, the
annual net sales of the divested business were approximately EUR 50 million. The
agreed value for the transaction was EUR 33 million. Following the divestments
of the Consumer Goods business in South America and the EPS (Expanded
Polystyrene) packaging business in Australia on the second quarter of 2009, the
segment now has operations in Europe only. The strategic review of the European
operations is ongoing.
Financial review
The Group EBIT in 2009 was EUR 119 million (EUR -75 million), corresponding to
an EBIT-margin of 5.8% (-3.3%). In the fourth quarter, the Group EBIT was EUR
6.5 million, (EUR -147.7 million), corresponding to an EBIT margin of 1.4%
(-14.1%).
The full year Group EBIT includes non-recurring charges related to the
divestment of the Films segment's release paper business and related
restructuring of operations in Forchheim, Germany, as well as the strategic
review of the Consumer Goods operations. Altogether, non-recurring charges in
2009 amounted to EUR 14 million (EUR 166 million). The Group EBIT in 2009
excluding non-recurring charges amounts to EUR 133 million (EUR 91 million),
corresponding to an EBIT-margin of 6.5% (4.0%). In the fourth quarter, the Group
EBIT excluding non-recurring items was EUR 17 million (EUR 11 million),
corresponding to an EBIT-margin of 3.5% (2.0%).
The net financial items were EUR -26 million (EUR -46 million), with the fourth
quarter amounting to EUR -5 million (EUR -12 million).Full year tax expense
amounts to EUR 20 million (income of EUR 10 million) with the fourth quarter
accounting for EUR -2 million (EUR 16 million).
The 2009 result was EUR 74 million (EUR -110 million) and the earnings per share
(EPS) were EUR 0.63 (EUR -1.12). Correspondingly, in the fourth quarter the
result was EUR 0 million (EUR -143 million) and the EPS were EUR -0.02 (EUR
-1.43).The average number of outstanding shares used in the EPS calculations was
100,539,283 (100,426,461) excluding 5,061,089 (unchanged) of the Company's own
shares.
Balance sheet and cash flow
Free cash flow in 2009 amounted to EUR 208 million (EUR 104 million), and in the
fourth quarter to EUR 40 million (EUR 37 million). The strong improvement was
due to efficient working capital management and a low level of capital
expenditure. Capital expenditure in 2009 was EUR 53 million (EUR 74 million). In
the fourth quarter, capital expenditure totaled EUR 21 million (EUR 27 million).
Net debt was EUR 368 million (EUR 587 million) at the end of December 2009. This
corresponds to a gearing ratio of 0.50 (0.84). Debt reduction was achieved
through strong cash flow and proceeds from divestments.
Total assets on the balance sheet were EUR 1,759 million (EUR 1,952 million).
Strategic direction
In 2009, the Group continued to develop its strongholds and review the Consumer
Goods operations. The commitment to deliver a strong positive cash flow
materialized and the Group's financial position was strengthened. Industrial
performance was upgraded through continuous improvement projects.
The Group's focus remained on its five business segments with the most favorable
preconditions to further improve the results and market shares. North America
and Molded Fiber business segments were supported by investments in growth and
operational excellence. Films business segment divested the release paper
production and focused solely on release films. Flexibles and Foodservice
business segments continued to develop a solid base for growth. Consumer Goods
business was segregated from Foodservice in order to facilitate the strategic
review.
The review of different strategic alternatives for the Consumer Goods operations
proceeded. During 2009, units were divested in South America, Australia and
South Africa. The review of the remaining operations in Europe continues.
The Group's key financial targets, return on investment (ROI) at 15% and
dividend payout ratio of 40%, remain unchanged. Maintaining a solid financial
base and further developing all five strongholds continue to be a priority.
Personnel
The Group had 12,900 (14,644) employees at the end of December 2009. The number
of employees by segment was the following: Flexibles 3,643 (3,603), Films 775
(926), North America 2,643 (2,731), Molded Fiber 1,581 (1,613), Foodservice
2,849 (3,663), Consumer Goods 1,355 (2,051), and other 54 (57). The average
number of employees was 13,735 (15,044).
Huhtamäki Oyj employed 48 (52) people at year-end. The annual average was 49
(723). The decrease in the annual average is due to the segregation of the
Foodservice and Consumer Goods businesses from the parent company into its
wholly owned subsidiaries in 2008.
Resolutions of Huhtamäki Oyj's Annual General Meeting
Huhtamäki Oyj's Annual General Meeting of Shareholders was held in Helsinki on
April 3, 2009. The meeting adopted the Company's Annual Accounts and the
Consolidated Annual Accounts for 2008 and discharged the members of the
Company's Board of Directors and the CEO from liability. The dividend for 2008
was set at EUR 0.34 (EUR 0.42) per share, as proposed by the Board of Directors.
Eight members of the Board of Directors were elected for a term which lasts
until the end of the Annual General Meeting of Shareholders following the
election. Ms. Eija Ailasmaa, Mr. George V. Bayly, Mr. Rolf Börjesson, Mr.
Robertus van Gestel, Mr. Mikael Lilius, Mr. Anthony J.B. Simon and Mr. Jukka
Suominen were re-elected to the Board of Directors. Ms. Siaou-Sze Lien was
elected as a new member. The Board of Directors subsequently elected Mikael
Lilius as Chairman of the Board and Jukka Suominen as Vice-Chairman of the
Board.
The meeting granted the Board of Directors an authorization to resolve upon
conveyance of the Company's own shares. The authorization is valid until April
30, 2012.
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 economic and financial market conditions can also
have an adverse effect on the implementation of the Group's strategy and on its
business performance and earnings.
Outlook for 2010
General economic and market conditions in 2010 remain uncertain. The Group is in
a good financial position to address growth opportunities in stronghold segments
when they arise. Capital expenditure is expected to be higher than in 2009 but
below EUR 100 million.
Dividend proposal
The Board of Directors will propose to the Annual General Meeting that a
dividend of EUR 0.38
(EUR 0.34) per share be paid.
Annual General Meeting 2010
The Annual General Meeting of Shareholders will be held on Wednesday, March
24, 2010 at 2 pm (Finnish time), at Finlandia Hall, Mannerheimintie 13 e, in
Helsinki, Finland.
Financial Reporting in 2010
Huhtamaki will publish the interim report for January-March on April 22,
January-June on July 22 and January-September on October 21.
As of January 1, 2010, the Flexibles Global segment was renamed Flexible
Packaging, the Films Global segment was renamed Films and the Rough Molded Fiber
Global segment was renamed Molded Fiber.
Espoo, February 11, 2010
Huhtamäki Oyj
Board of Directors
For further information, please contact:
Mr. Jukka Moisio, CEO, tel. +358-10-686 7801
Mr. Timo Salonen, CFO, tel. +358-10-686 7880
Ms. Marika Lindell, Group Investor Relations Manager, tel. +358-10-686 7818 or
mobile +358-50-577 4019
Mrs. Minna Kylänpää, Head of Group Communications, tel. +358-10-686 7863
A news conference for analysts and media will be held at 11:00 Finnish time at
the head office, address Keilaranta 10, Espoo, Finland. CEO Jukka Moisio and CFO
Timo Salonen will present the results, after which a buffet lunch is served. A
conference call for analysts and investors will start at 14:00 Finnish / 12:00
UK / 07:00 New York time with a management presentation, followed by a question
and answer session. To participate, please dial one of the following numbers
5-10 minutes prior to the call start:
- Number for participants from Finland: 0923 114 173
- Number for participants outside of Finland: +44 (0) 1452 555 566
- Conference ID:51423195
All results materials will be available at www.huhtamaki.com. The results
presentation slides will be online approximately at 11:00 Finnish time. A replay
of the conference call in the form of an audio webcast will be available during
the same evening.
Huhtamäki Oyj
January 1 - December 31, 2009
Group income statement (IFRS)
Q1-Q4 Q1-Q4 Q4 Q4
EUR million 2009 2008 2009 2008
Net sales 2,037.7 2,260.0 476.2 548.8
Cost of goods sold -1,699.1 -2,043.2 -406.4 -564.0
Gross profit 338.6 216.8 69.8 -15.2
Other operating income 19.0 21.6 4.2 7.4
Sales and marketing -75.7 -84.8 -18.0 -21.3
Research and development -16.5 -16.2 -4.4 -4.2
Administration costs -120.8 -117.2 -30.8 -30.1
Other operating expenses -25.5 -94.7 -14.3 -84.3
-219.5 -291.3 -63.3 -132.5
Earnings before interest and taxes 119.1 -74.5 6.5 -147.7
Financial income 24.1 10.0 3.8 2.5
Financial expenses -49.9 -55.7 -8.4 -14.1
Income of associated companies 0.6 0.5 0.1 0.1
Result before taxes 93.9 -119.7 2.0 -159.2
Income taxes -20.4 9.5 -2.1 16.4
Result for the period 73.5 -110.2 -0.1 -142.8
Attributable to:
Equity holders of the parent company 71.1 -111.9 -0.5 -142.9
Minority interest 2.4 1.7 0.4 0.1
EPS (EUR) from result for the period 0.71 -1.11 0.00 -1.42
EPS (EUR) attributable to hybrid bond
investors 0.08 0.01 0.02 0.01
EPS (EUR) attributable to equity holders of
the parent company 0.63 -1.12 -0.02 -1.43
Diluted:
EPS (EUR) from result for the period 0.71 -1.11 0.00 -1.42
EPS (EUR) attributable to hybrid bond
investors 0.08 0.01 0.02 0.01
EPS (EUR) attributable to equity holders of
the parent company 0.63 -1.12 -0.02 -1.43
Group statement of comprehensive income (IFRS)
Q1-Q4 Q1-Q4 Q4 Q4
EUR million 2009 2008 2009 2008
Result for the period 73.5 -110.2 -0.1 -142.8
Other comprehensive income:
Translation differences 0.7 -9.4 2.0 -8.6
Fair value and other reserves 1.2 -9.1 2.6 -6.5
Income tax related to components of
other comprehensive income -0.5 2.7 -0.8 2.2
Other comprehensive income, net of tax 1.4 -15.8 3.8 -12.9
Total comprehensive income 74.9 -126.0 3.7 -155.7
Attributable to:
Equity holders of the parent company 72.3 -127.7 3.2 -156.0
Minority interest 2.6 1.7 0.5 0.3
Group statement of financial position (IFRS)
Dec 31 Dec 31
EUR million 2009 2008
ASSETS
Non-current assets
Goodwill 394.8 402.4
Other intangible assets 32.7 34.5
Tangible assets 604.2 676.3
Investments in associated companies 2.5 1.9
Available for sale investments 1.9 1.9
Interest bearing receivables 11.0 0.1
Deferred tax assets 16.5 15.1
Employee benefit assets 57.9 62.5
Other non-current assets 3.0 3.7
1,124.5 1,198.4
Current assets
Inventory 236.1 296.7
Interest bearing receivables 19.4 2.1
Current tax assets 9.1 9.4
Trade and other current receivables 305.5 377.9
Cash and cash equivalents 64.0 67.8
634.1 753.9
Total assets 1,758.6 1,952.3
EQUITY AND LIABILITIES
Share capital 360.6 358.7
Premium fund 106.8 104.7
Treasury shares -46.5 -46.5
Translation differencies -130.0 -130.5
Fair value and other reserves -4.3 -5.0
Retained earnings 354.8 327.5
Total equity attributable to equity holders of the parent
company 641.4 608.9
Minority interest 20.2 18.4
Hybrid bond 75.0 75.0
Total equity 736.6 702.3
Non-current liabilities
Interest bearing liabilities 294.3 474.7
Deferred tax liabilities 42.5 29.8
Employee benefit liabilities 102.8 103.8
Provisions 55.9 58.4
Other non-current liabilities 5.4 6.5
500.9 673.2
Current liabilities
Interest bearing liabilities
- Current portion of long term loans 67.3 25.2
- Short term loans 101.1 157.3
Provisions 6.0 10.1
Current tax liabilities 10.9 9.8
Trade and other current liabilities 335.8 374.4
521.1 576.8
Total liabilities 1,022.0 1,250.0
Total equity and liabilities 1,758.6 1,952.3
Dec 31 Dec 31
2009 2008
Net debt 368.3 587.2
Net debt to equity (gearing) 0.50 0.84
Statement of changes in equity
Attributable to equity holders of Mino- Hybrid To-the parent company rity tal
EUR million Share Sha- Trea- Trans- Fair Retai- Total inte- bond equity
capi- re sury lation value ned rest
tal issue sha- diff. and earn-
pre- res other ings
mium reser-
ves
Balance at
Dec 31, 2007 358.7 104.7 -46.5 -121.1 1.4 475.7 772.9 20.5 - 793.4
Dividend -42.2 -42.2 -42.2
Share-based
payments 1.2 1.2 1.2
Hybrid bond 75.0 75.0
Total
comprehensive -9.4 -6.4 -111.9 -127.7 1.7 -126.0
income for
the year
Other changes 4.7 4.7 -3.8 0.9
Balance at
Dec 31, 2008 358.7 104.7 -46.5 -130.5 -5.0 327.5 608.9 18.4 75.0 702.3
Balance at
Dec 31, 2008 358.7 104.7 -46.5 -130.5 -5.0 327.5 608.9 18.4 75.0 702.3
Dividend -34.1 -34.1 -34.1
Share-based
payments 2.5 2.5 2.5
Stock options
excercised 1.9 2.1 4.0 4.0
Interest on
Hybrid Bond -7.9 -7.9 -7.9
Total
comprehensive 0.5 0.7 71.1 72.3 2.6 74.9
income for
the year
Other changes -4.3 -4.3 -0.8 -5.1
Balance at
Dec 31, 2009 360.6 106.8 -46.5 -130.0 -4.3 354.8 641.4 20.2 75.0 736.6
Group cash flow statement (IFRS)
Q1-Q4 Q1-Q4 Q4 Q4
EUR million 2009 2008 2009 2008
Result for the period* 73.5 -110.2 -0.1 -142.8
Adjustments* 134.2 280.0 30.6 170.2
- Depreciation, amortization and impairment*
88.6 245.9 23.7 173.4
- Gain on equity of minorities*
-0.6 -0.5 -0.1 -0.1
- Gain/loss from disposal of assets*
5.7 -4.3 5.3 -0.4
- Financial expense/-income* 25.8 45.7 4.7 11.6
- Income tax expense* 20.4 -9.5 2.0 -16.4
- Other adjustments, operational*
-5.7 2.7 -5.0 2.1
Change in inventory* 58.3 38.2 21.7 56.6
Change in non-interest bearing receivables*
50.4 8.2 35.2 17.4
Change in non-interest bearing payables*
-28.3 2.8 -22.3 -30.0
Dividends received* 0.5 0.5 0.2 0.3
Interest received* 2.2 1.7 0.7 0.3
Interest paid* -21.0 -43.2 -2.6 -9.5
Other financial expense and income*
-2.3 -2.1 1.3 -1.8
Taxes paid* -12.5 -5.0 -5.2 1.5
Net cash flows from operating activities
255.0 170.9 59.5 62.2
Capital expenditure* -52.9 -74.3 -21.2 -26.6
Proceeds from selling fixed assets*
5.9 7.1 1.8 1.2
Divested subsidiaries 69.0 - 33.0
Proceeds from long-term deposits 1.3 3.3 0.5 0.3
Payment of long-term deposits
-11.4 -2.5 -8.9 0.0
Proceeds from short-term deposits
13.7 33.4 10.9 3.8
Payment of short-term deposits
-29.2 -31.4 -11.6 -3.1
Net cash flows from investing -3.6 -64.4 4.5 -24.4
Proceeds from long-term borrowings
599.3 489.3 26.2 171.7
Repayment of long-term borrowings
-785.2 -415.9 -117.0 -131.9
Proceeds from short-term borrowings
333.8 2,446.3 109.7 328.6
Repayment of short-term borrowings
-363.3 -2,620.5 -88.1 -456.6
Dividends paid -34.1 -42.2 - -
Hybrid bond - 75.0 - 75.0
Hybrid bond interest -7.9 - -7.9 -
Proceeds from stock options exercised
4.1 - 4.0 -
Net cash flows from financing -253.3 -68.0 -73.1 -13.2
Change in liquid assets -3.8 37.0 -9.4 23.4
Cash flow based -1.9 38.5 -9.1 24.6
Translation difference -1.9 -1.5 -0.3 -1.2
Liquid assets period start 67.8 30.8 73.4 44.4
Liquid assets period end 64.0 67.8 64.0 67.8
Free cash flow (including figures marked with *)
208.0 103.7 40.1 36.8
NOTES FOR THE RESULT REPORT
Except for accounting policy changes listed below, the same accounting policies
have been applied in the interim financial statements as in annual financial
statements for 2008.
Changes in accounting principles
The Group has adopted the following IFRS standards and interpretations
considered applicable to Huhtamaki, with effect from January 1, 2009:
- IAS 23 Borrowing cost. The amendment requires capitalization of borrowing
costs directly attributable to the acquisition, construction or production of a
qualifying asset as part of the cost of asset.
- IAS 1 Presentation of Financial Statements -amendment. Amended standard has
changed the presentation of income statement and statement of changes in
shareholders' equity.
-IFRIC 13 Customer Loyalty Programmes. The interpretation addresses the
accounting by entities that operate customer loyalty programmes with their
customers.
These newly adopted standards have not had impact on the reported results.
Segments
Segment information is presented according to the IFRS standards. Items below
EBIT - financial items and taxes - are not allocated to the segments.
Net sales
Q4 Q3 Q2 Q1 Q1-Q4 Q4 Q3 Q2 Q1 Q1-Q4
EUR million 2009 2009 2009 2009 2009 2008 2008 2008 2008 2008
Flexibles 109.5 114.0 118.2 119.7 461.4 117.9 123.9 124.7 127.8 494.3
Global
- Intersegment
net
sales 0.7 0.8 0.8 0.6 2.9 -0.8 1.4 1.7 1.0 3.3
Films Global 32.1 40.4 38.3 40.0 150.8 40.9 50.8 51.6 50.5 193.8
- Intersegment
net
sales 0.7 0.9 0.8 1.2 3.6 1.0 1.5 1.8 2.6 6.9
North America 116.5 128.3 152.1 128.1 525.0 148.5 132.4 137.6 113.3 531.8
- Intersegment
net
sales 0.7 1.0 1.0 1.0 3.7 1.4 1.0 1.0 0.8 4.2
Rough Molded
Fiber
Global 56.6 51.6 51.0 48.3 207.5 51.5 53.1 54.1 54.7 213.4
- Intersegment
net
sales -0.6 0.4 0.3 0.0 0.1 0.2 0.3 0.1 0.0 0.6
Foodservice
Europe-Asia-
Oceania 103.8 111.2 117.8 97.1 429.9 107.0 118.7 124.6 106.4 456.7
- Intersegment
net
sales 4.3 5.0 3.0 7.4 19.7 7.9 8.1 8.2 8.6 32.8
Rigid Consumer
Goods
Plastics 57.7 61.6 70.4 73.4 263.1 83.0 93.2 97.9 95.9 370.0
- Intersegment
net
sales 4.2 4.9 5.7 4.3 19.1 3.8 4.7 6.4 4.9 19.8
Elimination of
intersegment
net
sales 10.0 13.0 11.6 14.5 49.1 13.5 17.0 19.2 17.9 67.6
Total 476.2 507.1 547.8 506.6 2,037.7 548.8 572.1 590.5 548.6 2,260.0
EBIT
Q4 Q3 Q2 Q1 Q1-Q4 Q4 Q3 Q2 Q1 Q1-Q4
EUR million 2009 2009 2009 2009 2009 2008 2008 2008 2008 2008
Flexibles Global (1 7.2 7.6 4.8 8.8 28.4 -16.6 3.9 5.5 6.2 -1.0
Films Global (2 -1.3 1.5 -3.4 0.5 -2.7 0.1 3.7 3.6 0.5 7.9
North America (3 2.9 14.5 23.6 14.5 55.5 1.2 10.5 14.4 7.3 33.4
Rough Molded Fiber
Global (4 4.8 4.7 4.3 3.8 17.6 -1.4 3.7 3.0 3.1 8.4
Foodservice
Europe-Asia-Oceania (5 0.7 6.8 6.4 2.4 16.3 -15.2 5.9 5.3 2.4 -1.6
Rigid Consumer Goods
Plastics (6 -6.6 4.5 6.0 5.7 9.6 -117.7 -1.4 -4.8 0.5 -123.4
Other activities -1.2 -1.0 -2.7 -0.7 -5.6 1.9 -0.1 0.0 0.0 1.8
Total (7 6.5 38.6 39.0 35.0 119.1 -147.7 26.2 27.0 20.0 -74.5
1) Q4 and Q1-Q4 2008 includes non-recuring charges MEUR 17.9.
2) Q2 and Q1-Q4 2009 includes non-recuring charges MEUR 3.8.
3) Q4 and Q1-Q4 2008 includes non-recuring charges MEUR 5.2.
4) Q4 and Q1-Q4 2008 includes non-recuring charges MEUR 3.7.
5) Q4 and Q1-Q4 2008 includes non-recuring charges MEUR 14.5.
6) Q4 and Q1-Q4 2009 includes non-recuring charges MEUR 10.1, Q4 2008 includes
non-recuring charges MEUR 117.3, Q3 2008 includes non-recuring charges MEUR
0.1, Q2 2008 includes non-recuring charges MEUR 6.8, Q1-Q4 2008 includes
non-recuring charges MEUR 124.2.
7) Q4 2009 includes non-recuring charges MEUR 10.1, Q2 2009 includes
non-recuring charges MEUR 3.8, Q1-Q4 2009 includes non-recuring charges MEUR
13.9, Q4 2008 includes non-recuring charges MEUR 158.6, Q3 2008 includes
non-recuring charges MEUR 0.1, Q2 2008 includes non-recuring charges MEUR 6.8,
Q1-Q4 2008 includes non-recuring charges MEUR 165.5.
EBITDA
Q4 Q3 Q2 Q1 Q1-Q4 Q4 Q3 Q2 Q1 Q1-Q4
EUR million 2009 2009 2009 2009 2009 2008 2008 2008 2008 2008
Flexibles Global 12.6 12.1 9.3 13.3 47.3 -11.4 9.0 10.0 10.7 18.3
Films Global 0.3 3.0 -2.0 2.1 3.4 1.2 5.4 5.2 1.9 13.7
North America 7.7 20.4 29.4 19.8 77.3 6.4 14.8 18.7 11.6 51.5
Rough Molded Fiber
Global 8.6 7.5 7.0 6.5 29.6 1.3 6.5 5.9 6.1 19.8
Foodservice
Europe-Asia-Oceania 6.7 11.9 11.0 7.2 36.8 -9.7 13.5 10.5 7.6 21.9
Rigid Consumer Goods
Plastics -4.8 6.3 8.5 8.1 18.1 -113.8 3.0 -0.4 5.0 -106.2
Other activities -0.9 -0.9 -2.5 -0.5 -4.8 2.5 0.2 0.2 0.2 3.1
Total 30.2 60.3 60.7 56.5 207.7 -123.5 52.4 50.1 43.1 22.1
Depreciation and amortization
Q4 Q3 Q2 Q1 Q1-Q4 Q4 Q3 Q2 Q1 Q1-Q4
EUR million 2009 2009 2009 2009 2009 2008 2008 2008 2008 2008
Flexibles Global 5.4 4.5 4.5 4.5 18.9 5.2 5.1 4.5 4.5 19.3
Films Global 1.6 1.5 1.4 1.6 6.1 1.1 1.7 1.6 1.4 5.8
North America 4.8 5.9 5.8 5.3 21.8 5.2 4.3 4.3 4.3 18.1
Rough Molded Fiber Global
3.8 2.8 2.7 2.7 12.0 2.7 2.8 2.9 3.0 11.4
Foodservice
Europe-Asia-Oceania 6.0 5.1 4.6 4.8 20.5 5.5 7.6 5.2 5.2 23.5
Rigid Consumer Goods
Plastics 1.8 1.8 2.5 2.4 8.5 3.9 4.4 4.4 4.5 17.2
Other activities 0.3 0.1 0.2 0.2 0.8 0.6 0.3 0.2 0.2 1.3
Total 23.7 21.7 21.7 21.5 88.6 24.2 26.2 23.1 23.1 96.6
Net assets allocated to the segments (8
Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1
EUR million 2009 2009 2009 2009 2008 2008 2008 2008
Flexibles Global 305.5 311.5 325.8 342.2 359.7 389.2 373.1 381.4
Films Global 111.0 117.5 125.2 135.8 133.1 146.2 140.8 145.3
North America 364.8 365.8 370.8 393.9 379.2 390.2 358.9 370.0
Rough Molded Fiber Global
166.0 167.1 169.9 170.4 164.1 177.6 180.2 182.6
Foodservice
Europe-Asia-Oceania
225.7 236.8 246.6 241.7 244.2 284.0 286.0 293.6
Rigid Consumer Goods Plastics
72.6 103.3 103.8 137.3 129.7 262.0 267.7 276.3
8) Net assets include the following balance sheet items: intangible and tangible
assets, other non-current assets, inventories, trade and other current
receivables (excluding accrued interest income), other non-current liabilities
and trade and other current liabilities (excluding accrued interest expense).
Capital expenditure
Q4 Q3 Q2 Q1 Q1-Q4 Q4 Q3 Q2 Q1 Q1-Q4
EUR million 2009 2009 2009 2009 2009 2008 2008 2008 2008 2008
Flexibles Global 3.3 2.3 3.2 2.1 10.9 4.9 3.0 8.6 4.7 21.2
Films Global 0.4 0.2 0.3 0.2 1.1 0.5 0.8 1.0 2.1 4.4
North America 6.5 6.5 2.8 1.0 16.8 5.9 4.0 2.6 1.3 13.8
Rough Molded Fiber Global
3.7 0.7 0.8 1.6 6.8 4.8 3.1 1.0 0.8 9.7
Foodservice
Europe-Asia-Oceania
5.1 2.7 1.4 2.3 11.5 6.3 4.2 3.2 3.2 16.9
Rigid Consumer Goods
Plastics 2.1 1.6 1.0 0.8 5.5 4.1 1.3 1.4 0.7 7.5
Other activities 0.1 0.0 0.2 0.0 0.3 0.1 0.0 0.0 0.7 0.8
Total 21.2 14.0 9.7 8.0 52.9 26.6 16.4 17.8 13.5 74.3
RONA, % (12m roll.)
Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1
2009 2009 2009 2009 2008 2008 2008 2008
Flexibles Global 8.8% 1.4% 0.3% 0.4% -0.3% 3.7% 4.7% 5.5%
Films Global -2.2% -1.0% 0.7% 5.7% 5.6% 5.9% 6.6% 6.8%
North America 14.8% 14.3% 13.0% 10.7% 8.9% 7.8% 8.0% 8.7%
Rough Molded Fiber
Global 10.5% 6.8% 6.1% 5.3% 4.8% 7.6% 7.6% 8.1%
Foodservice
Europe-Asia-Oceania
6.9% 0.2% -0.2% -0.6% -0.6% 1.0% 0.3% 0.3%
Rigid Consumer Goods
Plastics 9.2% -85.6% -67.9% -59.3% -52.8% -27.2% -24.2% -21.1%
Operating Cash Flow
Q4 Q3 Q2 Q1 Q1-Q4 Q4 Q3 Q2 Q1 Q1-Q4
EUR million 2009 2009 2009 2009 2009 2008 2008 2008 2008 2008
Flexibles Global 21.1 17.3 23.4 20.0 81.8 12.7 -3.2 6.7 4.6 20.8
Films Global 5.0 8.4 8.2 1.9 23.5 13.9 0.5 7.7 2.5 24.6
North America 8.9 9.6 22.9 14.5 55.9 16.5 6.7 23.1 -3.9 42.4
Rough Molded Fiber Global
6.1 4.3 8.6 -0.6 18.4 3.6 3.9 8.7 1.2 17.4
Foodservice
Europe-Asia-Oceania
9.6 18.3 7.1 -2.1 32.9 3.6 7.6 14.5 1.3 27.0
Rigid Consumer Goods
Plastics 4.7 7.9 11.1 0.7 24.4 11.6 -1.2 19.9 5.5 35.8
As net sales and EBIT of reportable segments form Groups' total net sales and
EBIT, reconciliations to corresponding amounts are not presented.
Other information Q1-Q4 Q1-Q4
2009 2008
EUR million
Equity per share (EUR)
7.09 6.81
ROE, % (12m roll.) 10.1 -14.8
ROI, % (12m roll.) 9.6 -4.8
Personnel 12,900 14,644
Result before taxes (12m roll.)
93.9 -119.7
Depreciation 82.6 89.2
Amortization of other intangible assets
5.9 7.4
Share capital and shareholders
At the end of the year the Company's registered share capital was EUR
360,615,688.00 (358,657,670.00) corresponding to a total number of outstanding
shares of 106,063,320 (105,487,550) including 5,061,089 (unchanged) Company's
own shares.The Company's own shares had the total accountable par value of EUR
17,207,702.60, representing 4.8% of the total number of shares and voting
rights.
The amount of outstanding shares net of Company's own shares was 101,002,231
(100,426,461).
In January-December 2009, a total of 561,470 new shares of Huhtamäki Oyj were
issued based on share subscriptions under Huhtamäki Oyj's 2003 option rights
plan.489,830 new shares were issued based on the option rights 2003 A and
71,640 based on the option rights 2003 B. The corresponding increase in the
company's share capital, EUR 1,908,998.00, was entered in the Finnish Trade
Register on November 16, 2009. The new shares became publicly tradable as of
November 17, 2009. In terms of shareholder rights, the new shares are identical
to the shares of the company already traded on NASDAQ OMX Helsinki Ltd.
The 2003 A, 2003 B and 2003 C option rights under the Huhtamäki Oyj's 2003
option rights plan entitled to the subscription of a total of 2,250,000 new
shares. The annual subscription period was May 2 - October 31. The last
subscription date for shares of all option rights under the 2003 option rights
plan was October 21, 2009.
The Company's 2006 B option rights were listed on the NASDAQ OMX Helsinki Ltd on
October 1, 2009.
There were 22,935 (22,089) registered shareholders at the end of December 2009.
Foreign ownership including nominee registered shares accounted for 29% (24%).
Share developments
The Company's share is quoted on the NASDAQ OMX Helsinki Ltd on the Nordic Mid
Cap list under the Materials sector.
At the end of December 2009, the Company's market capitalization was EUR
1,028.8 million (EUR 464.1 million) and EUR 979.7 million (EUR 441.9 million)
excluding Company's own shares. With a closing price of EUR 9.70 (EUR 4.40) the
share price increased by 121% (-46%) from the beginning of the year, while the
OMX Helsinki Cap PI Index increased by 36% (-50%) and the OMX Helsinki Materials
PI Index increased by 19% (-50%). In January-December 2009, the volume weighted
average price for the Company's share was EUR 7.25 (EUR 6.29). The highest price
paid was EUR 9.90 on December 30, 2009 and the lowest price paid was EUR 4.46
on January 2, 2009.
During the reporting period the cumulative value of the Company's share turnover
was EUR 522.6 million (EUR 707.3 million).The trading volume of 72.7 million
(111.6 million) shares equalled an average daily turnover of EUR 2.1 million
(EUR 2.8 million) or, correspondingly 289,818 (441,220) shares.
In total, turnover of the Company's 2003 A, B and C as well as 2006 A option
rights was EUR 1,351,735 corresponding to a trading volume of 1,810,814.
Contingent liabilities
Dec 31 Dec 31
2009 2008
EUR million
Mortgages 14.5 14.5
Guarantee obligations 2.5 2.9
Lease payments 54.0 49.8
Capital expenditure commitments 10.2 7.3
Nominal values of derivative instruments
Dec 31 Dec 31
2009 2008
EUR million
Currency forwards, transaction risk hedges
25 49
Currency forwards, translation risk hedges
29 34
Currency swaps, financing hedges 123 105
Currency options 3 -
Interest rate swaps 167 160
Interest rate options - 7
Electricity forwards 1 6
The following EUR rates have been applied to GBP, INR, AUD and USD
Q1-Q4/09 Q1-Q4/08
Income statement, average: GBP 1 = 1.122 1.258
INR 1 = 0.015 0.016
AUD 1 = 0.563 0.575
USD 1 = 0.718 0.679
Q4/09 Q4/08
Balance sheet, month end: GBP 1 = 1.126 1.050
INR 1 = 0.015 0.015
AUD 1 = 0.625 0.493
USD 1 = 0.694 0.719
Definitions for key indicators
EPS from the result for the period = Result for the period - minority interest /
Average number of shares outstanding
EPS from the result for the period (diluted) = Diluted result for the period -
minority interest / Average fully diluted number of shares outstanding
EPS attributable to hybrid bond investors = Hybrid bond interest / Average
number of shares outstanding
EPS attributable to hybrid bond investors (diluted) = Hybrid bond interest /
Average fully diluted number of shares outstanding
EPS attributable to equity holders of the parent company = Result for the period
- minority interest - hybrid bond interest / Average number of shares
outstanding
EPS attributable to equity holders of the parent company (diluted) = Diluted
result for the period - minority interest - hybrid bond interest / Average fully
diluted number of shares outstanding
Net debt to equity (gearing) = Interest bearing net debt / Equity + minority
interest + hybrid bond (average)
RONA, % = 100 x Earnings before interest and taxes (12 m roll.) / Net assets (12
m roll.)
Operating cash flow = Ebit + depreciation and amortization (including
impairment) - capital expenditures + disposals +/- change in inventories, trade
receivables and trade payables
Shareholders' equity per share = Equity / Issue-adjusted number of shares at
period end
Return on equity (ROE) = 100 x (Result for the period ) (12 m roll.) / Equity +
minority interest + hybrid bond (average)
Return on investment (ROI) = 100 x (Result before taxes + interest expenses +
net other financial expenses) (12 m roll.) / Balance sheet total - Interest-free
liabilities (average)
[HUG#1383685]
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