Results 2009: Improved profitability and strong cash flow despite lower net sales
(Thomson Reuters ONE) - HUHTAM?I OYJ STOCK EXCHANGE RELEASE AT 12.2.2010 AT 8:30- Group net sales reduced due to lower demand, divestments, and discontinuedoperations- 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) pershare 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 13.9million in Q1-Q4 2009, EUR 158.6 million in Q4 2008 and EUR 165.5 million inQ1-Q4 2008.CEO Jukka Moisio: "Huhtamaki had a financially strong year even if sales volumesdeclined due to soft market sentiment and demand.Our performance inprofitability was good with a clear improvement in earnings from the previousyear. We reduced our net debt by a third and achieved a significant improvementin ROI (return on investment). Cost control and cash generation as well as priceand product mix management were key priorities throughout the year.The financial foundation for further developing our business strongholds hasbeen laid. Huhtamaki's stronghold business segments performed well in 2009 andthe strategic review of the Rigid Consumer Goods Plastics operations proceededaccording to our expectations.Industrial performance was improved, benefitingboth Huhtamaki and our customers. Huhtamaki is in a good position to start theyear 2010."OverviewThe year was characterized by customer cautiousness and uncertainty. Demandremained sluggish throughout the year. At EUR 2,038 million (EUR 2,260 millionin 2008), the Group net sales declined due to lower volumes, divestments anddiscontinued operations. In addition, currency translations had a minor adverseeffect on the euro-denominated value of net sales.Despite the decline in net sales, profitability improved markedly. The full yearGroup 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 yearend Flexibles Global ("Flexibles") and Rough Molded Fiber Global ("MoldedFiber") segments showed progress compared to the previous year. FoodserviceEurope-Asia-Oceania ("Foodservice") segment also improved earnings but FilmsGlobal ("Films") segment suffered from low demand and reported reduced earningscompared to the previous year. Most of the business segments were able tomaintain sound margins, and successful cost reductions added to earnings growth.These positive factors more than compensated for the decrease of volumes whichwas experienced in most business segments.Cash flow generation was strong throughout 2009, supported by improved workingcapital efficiency and low capital expenditure. All segments achieved goodresults in cash generation. This contributed to a considerable reduction of netdebt, which advanced the accomplishment of the Group's key financial targets.Business review by segmentThe sales distribution in 2009 was following: Flexibles Global 22% (21%), FilmsGlobal 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 GlobalFlexibles business is organized as a global segment. Flexibles are used forconsumer packaging of a wide range and variety of food, personal and health careand 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-Q42008.The segment's net sales declined during the year, remaining soft also in thefourth quarter. While sales volumes were stable in comparison to prior year,price reductions applied as a result of lower raw material costs had a negativeimpact on the net sales. The discontinued operations in Malvern, USA, also had adecreasing effect on net sales.Despite lower net sales, the segment's earnings growth accelerated towards yearend. EBIT reflects successful cost containment, better operational control andthe elimination of Malvern losses. The segment made a very good operating cashflow on the fourth quarter, which accumulated to a strong full year operatingcash flow.During the year, a production unit in Thane, India was reconstructed and a newenterprise resource planning (ERP) system was implemented at all four sites inIndia.Films GlobalFilms business is organized as a global segment. Films are mainly used fortechnical applications in the label, adhesive tape, hygiene and health careindustries, as well as building and construction, automotive, packaging andgraphic 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 industrialapplications. Volume shortfall was obvious throughout the year and also someprice reductions were made. There was, however, some recovery of orders towardsthe 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 ofthe release paper business and the resulting restructuring of operations inForchheim, Germany.All manufacturing of the divested release paper business in Forchheim isscheduled to be finalized and transferred to the buyer, B. Laufenberg GmbH, bythe end of the first quarter of 2010.North AmericaThe segment includes the Rigid and Molded Fiber business in North America andMexico. Rigid paper and plastic packaging, which serves ice-cream and otherconsumer goods as well as foodservice markets, is completed with Molded FiberChinet® 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-Q42008.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 insales was attributable to soft market conditions, as well as the refocus anddownscaling of the plastics operations with the closure of the site in Phoenix,USA. While the full year currency translation impact was positive, the impactturned unfavorable towards the year end. Retail sales grew due to new productsand strong marketing efforts while foodservice sales suffered from soft marketconditions and the restructuring of the plastics operations. In Frozen dessertsbusiness, market positions were strengthened and sales grew slightly.North America segment's EBIT was supported by the strong market positions inNorth America. The growth in EBIT was attained by careful cost containment,successful margin management and improved product mix. Unfavorable currencytranslation, volume softness and high marketing expenditure related to Chinet®brand re-launch slowed down earnings generation in the fourth quarter of theyear.Rough Molded Fiber GlobalThe segment includes the Rough Molded Fiber business in Europe, Oceania, Africaand 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-Q42008.The segment's net sales decreased from previous year due to low sales in themachine and waste paper trading operations as well as an adverse impact fromcurrency translations. Molded fiber packaging sales were up in all geographicregions and growth accelerated in the fourth quarter. In particular, eggpackaging demand was robust and the Group strengthened its market positions.Molded Fiber segment's earnings growth reflects good cost containment andefficient operations. Towards the year end, positive volumes contributed toimproved profitability.Foodservice Europe-Asia-OceaniaFoodservice paper and plastic disposable tableware is supplied to foodserviceoperators 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-Q42008.Foodservice segment's volumes decreased. The decline in net sales reflectsmarket softness and an adverse impact from currency translations. Most of theEuropean markets were soft. Sales in Oceania, instead, showed moderate butsteady growth. No clear change of these trends was seen in the fourth quarter.The segment's EBIT was supported by growth in Oceania, improved operationalcontrol in Asia as well as good overall cost containment.In Europe and in Australia legal and operational segregation of Consumer Goodsbusiness was completed successfully, with no impact on customer service levelthroughout the process.Rigid Consumer Goods PlasticsThe segment includes the Rigid Consumer Goods Plastics business in Europe andOceania. Rigid plastic packaging serves the consumer goods markets with freshfood, 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-Q42009, 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 currencytranslations and lower volumes. While sales increased in Eastern Europe and inAustralia, 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 strategicreview of the segment. In detail, the sale of the Consumer Goods units inAustralia and South America resulted to a book loss ofEUR 7 million. The segregation and ongoing strategic review of Consumer Goodsoperations in Europe resulted in a non-recurring charge of EUR 3 million. Theimprovement in earnings is due to significant cost reduction and efficientoperational control.The divestment of the remaining Consumer Goods business in Australia wasfinalized in the fourth quarter of the year. The business was sold to AltoManufacturing Pty Ltd, a subsidiary of Pact Group Pty Ltd.With threemanufacturing units in Bankstown, Mulgrave and Wacol and some 330 employees, theannual net sales of the divested business were approximately EUR 50 million. Theagreed value for the transaction was EUR 33 million. Following the divestmentsof the Consumer Goods business in South America and the EPS (ExpandedPolystyrene) packaging business in Australia on the second quarter of 2009, thesegment now has operations in Europe only. The strategic review of the Europeanoperations is ongoing.Financial reviewThe Group EBIT in 2009 was EUR 119 million (EUR -75 million), corresponding toan EBIT-margin of 5.8% (-3.3%). In the fourth quarter, the Group EBIT was EUR6.5 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 thedivestment of the Films segment's release paper business and relatedrestructuring of operations in Forchheim, Germany, as well as the strategicreview of the Consumer Goods operations. Altogether, non-recurring charges in2009 amounted to EUR 14 million (EUR 166 million). The Group EBIT in 2009excluding 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 GroupEBIT 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 fourthquarter amounting to EUR -5 million (EUR -12 million).Full year tax expenseamounts to EUR 20 million (income of EUR 10 million) with the fourth quarteraccounting 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 theresult 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 was100,539,283 (100,426,461) excluding 5,061,089 (unchanged) of the Company's ownshares.Balance sheet and cash flowFree cash flow in 2009 amounted to EUR 208 million (EUR 104 million), and in thefourth quarter to EUR 40 million (EUR 37 million). The strong improvement wasdue to efficient working capital management and a low level of capitalexpenditure. Capital expenditure in 2009 was EUR 53 million (EUR 74 million). Inthe 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. Thiscorresponds to a gearing ratio of 0.50 (0.84). Debt reduction was achievedthrough strong cash flow and proceeds from divestments.Total assets on the balance sheet were EUR 1,759 million (EUR 1,952 million).Strategic directionIn 2009, the Group continued to develop its strongholds and review the ConsumerGoods operations. The commitment to deliver a strong positive cash flowmaterialized and the Group's financial position was strengthened. Industrialperformance was upgraded through continuous improvement projects.The Group's focus remained on its five business segments with the most favorablepreconditions to further improve the results and market shares. North Americaand Molded Fiber business segments were supported by investments in growth andoperational excellence. Films business segment divested the release paperproduction and focused solely on release films. Flexibles and Foodservicebusiness segments continued to develop a solid base for growth. Consumer Goodsbusiness was segregated from Foodservice in order to facilitate the strategicreview.The review of different strategic alternatives for the Consumer Goods operationsproceeded. During 2009, units were divested in South America, Australia andSouth Africa. The review of the remaining operations in Europe continues.The Group's key financial targets, return on investment (ROI) at 15% anddividend payout ratio of 40%, remain unchanged. Maintaining a solid financialbase and further developing all five strongholds continue to be a priority.PersonnelThe Group had 12,900 (14,644) employees at the end of December 2009. The numberof 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), Foodservice2,849 (3,663), Consumer Goods 1,355 (2,051), and other 54 (57). The averagenumber of employees was 13,735 (15,044).Huhtam? 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 theFoodservice and Consumer Goods businesses from the parent company into itswholly owned subsidiaries in 2008.Resolutions of Huhtam? Oyj's Annual General MeetingHuhtam? Oyj's Annual General Meeting of Shareholders was held in Helsinki onApril 3, 2009. The meeting adopted the Company's Annual Accounts and theConsolidated Annual Accounts for 2008 and discharged the members of theCompany's Board of Directors and the CEO from liability. The dividend for 2008was 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 lastsuntil the end of the Annual General Meeting of Shareholders following theelection. Ms. Eija Ailasmaa, Mr. George V. Bayly, Mr. Rolf B?sson, Mr.Robertus van Gestel, Mr. Mikael Lilius, Mr. Anthony J.B. Simon and Mr. JukkaSuominen were re-elected to the Board of Directors. Ms. Siaou-Sze Lien waselected as a new member. The Board of Directors subsequently elected MikaelLilius as Chairman of the Board and Jukka Suominen as Vice-Chairman of theBoard.The meeting granted the Board of Directors an authorization to resolve uponconveyance of the Company's own shares. The authorization is valid until April30, 2012.Short-term risks and uncertaintiesVolatile raw material and energy prices as well as movements in currency ratesare considered to be relevant short-term business risks and uncertainties in theGroup's operations. General economic and financial market conditions can alsohave an adverse effect on the implementation of the Group's strategy and on itsbusiness performance and earnings.Outlook for 2010General economic and market conditions in 2010 remain uncertain. The Group is ina good financial position to address growth opportunities in stronghold segmentswhen they arise. Capital expenditure is expected to be higher than in 2009 butbelow EUR 100 million.Dividend proposalThe Board of Directors will propose to the Annual General Meeting that adividend of EUR 0.38(EUR 0.34) per share be paid.Annual General Meeting 2010The Annual General Meeting of Shareholders will be held on Wednesday, March24, 2010 at 2 pm (Finnish time), at Finlandia Hall, Mannerheimintie 13 e, inHelsinki, Finland.Financial Reporting in 2010Huhtamaki 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 FlexiblePackaging, the Films Global segment was renamed Films and the Rough Molded FiberGlobal segment was renamed Molded Fiber.Espoo, February 11, 2010Huhtam? OyjBoard of DirectorsFor further information, please contact:Mr. Jukka Moisio, CEO, tel. +358-10-686 7801Mr. Timo Salonen, CFO, tel. +358-10-686 7880Ms. Marika Lindell, Group Investor Relations Manager, tel. +358-10-686 7818 ormobile +358-50-577 4019Mrs. Minna Kyl?? Head of Group Communications, tel. +358-10-686 7863A news conference for analysts and media will be held at 11:00 Finnish time atthe head office, address Keilaranta 10, Espoo, Finland. CEO Jukka Moisio and CFOTimo Salonen will present the results, after which a buffet lunch is served. Aconference call for analysts and investors will start at 14:00 Finnish / 12:00UK / 07:00 New York time with a management presentation, followed by a questionand answer session. To participate, please dial one of the following numbers5-10 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:51423195All results materials will be available at www.huhtamaki.com. The resultspresentation slides will be online approximately at 11:00 Finnish time. A replayof the conference call in the form of an audio webcast will be available duringthe same evening.Huhtam? OyjJanuary 1 - December 31, 2009Group 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 -1.43Group 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 0.3Group 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 0.84Statement 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 75.0 736.6Group 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 36.8NOTES FOR THE RESULT REPORTExcept for accounting policy changes listed below, the same accounting policieshave been applied in the interim financial statements as in annual financialstatements for 2008.Changes in accounting principlesThe Group has adopted the following IFRS standards and interpretationsconsidered applicable to Huhtamaki, with effect from January 1, 2009:- IAS 23 Borrowing cost. The amendment requires capitalization of borrowingcosts directly attributable to the acquisition, construction or production of aqualifying asset as part of the cost of asset.- IAS 1 Presentation of Financial Statements -amendment. Amended standard haschanged the presentation of income statement and statement of changes inshareholders' equity.-IFRIC 13 Customer Loyalty Programmes. The interpretation addresses theaccounting by entities that operate customer loyalty programmes with theircustomers.These newly adopted standards have not had impact on the reported results.SegmentsSegment information is presented according to the IFRS standards. Items belowEBIT - 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 2,260.0EBIT 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 -74.51) 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 includesnon-recuring charges MEUR 117.3, Q3 2008 includes non-recuring charges MEUR0.1, Q2 2008 includes non-recuring charges MEUR 6.8, Q1-Q4 2008 includesnon-recuring charges MEUR 124.2.7) Q4 2009 includes non-recuring charges MEUR 10.1, Q2 2009 includesnon-recuring charges MEUR 3.8, Q1-Q4 2009 includes non-recuring charges MEUR13.9, Q4 2008 includes non-recuring charges MEUR 158.6, Q3 2008 includesnon-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 22.1Depreciation 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 96.6Net 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 72.6 103.3 103.8 137.3 129.7 262.0 267.7 276.38) Net assets include the following balance sheet items: intangible and tangibleassets, other non-current assets, inventories, trade and other currentreceivables (excluding accrued interest income), other non-current liabilitiesand 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 74.3RONA, % (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 35.8As net sales and EBIT of reportable segments form Groups' total net sales andEBIT, 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 7.4Share capital and shareholdersAt the end of the year the Company's registered share capital was EUR360,615,688.00 (358,657,670.00) corresponding to a total number of outstandingshares of 106,063,320 (105,487,550) including 5,061,089 (unchanged) Company'sown shares.The Company's own shares had the total accountable par value of EUR17,207,702.60, representing 4.8% of the total number of shares and votingrights.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 Huhtam? Oyj wereissued based on share subscriptions under Huhtam? Oyj's 2003 option rightsplan.489,830 new shares were issued based on the option rights 2003 A and71,640 based on the option rights 2003 B. The corresponding increase in thecompany's share capital, EUR 1,908,998.00, was entered in the Finnish TradeRegister on November 16, 2009. The new shares became publicly tradable as ofNovember 17, 2009. In terms of shareholder rights, the new shares are identicalto the shares of the company already traded on NASDAQ OMX Helsinki Ltd.The 2003 A, 2003 B and 2003 C option rights under the Huhtam? Oyj's 2003option rights plan entitled to the subscription of a total of 2,250,000 newshares. The annual subscription period was May 2 - October 31. The lastsubscription date for shares of all option rights under the 2003 option rightsplan was October 21, 2009.The Company's 2006 B option rights were listed on the NASDAQ OMX Helsinki Ltd onOctober 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 developmentsThe Company's share is quoted on the NASDAQ OMX Helsinki Ltd on the Nordic MidCap list under the Materials sector.At the end of December 2009, the Company's market capitalization was EUR1,028.8 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) theshare price increased by 121% (-46%) from the beginning of the year, while theOMX Helsinki Cap PI Index increased by 36% (-50%) and the OMX Helsinki MaterialsPI Index increased by 19% (-50%). In January-December 2009, the volume weightedaverage price for the Company's share was EUR 7.25 (EUR 6.29). The highest pricepaid was EUR 9.90 on December 30, 2009 and the lowest price paid was EUR 4.46on January 2, 2009.During the reporting period the cumulative value of the Company's share turnoverwas 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 optionrights 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 7.3Nominal 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 6The 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 0.719Definitions for key indicatorsEPS from the result for the period = Result for the period - minority interest /Average number of shares outstandingEPS from the result for the period (diluted) = Diluted result for the period -minority interest / Average fully diluted number of shares outstandingEPS attributable to hybrid bond investors = Hybrid bond interest / Averagenumber of shares outstandingEPS attributable to hybrid bond investors (diluted) = Hybrid bond interest /Average fully diluted number of shares outstandingEPS attributable to equity holders of the parent company = Result for the period- minority interest - hybrid bond interest / Average number of sharesoutstandingEPS attributable to equity holders of the parent company (diluted) = Dilutedresult for the period - minority interest - hybrid bond interest / Average fullydiluted number of shares outstandingNet debt to equity (gearing) = Interest bearing net debt / Equity + minorityinterest + hybrid bond (average)RONA, % = 100 x Earnings before interest and taxes (12 m roll.) / Net assets (12m roll.)Operating cash flow = Ebit + depreciation and amortization (includingimpairment) - capital expenditures + disposals +/- change in inventories, tradereceivables and trade payablesShareholders' equity per share = Equity / Issue-adjusted number of shares atperiod endReturn 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-freeliabilities (average)[HUG#1383685] Huhtam? Oyj Results 2009 PDF: http://hugin.info/3006/R/1383685/342522.pdf
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Datum: 12.02.2010 - 01:36 Uhr
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"Results 2009: Improved profitability and strong cash flow despite lower net sales
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