STOCK EXCHANGE RELEASE HUHTAMÄKI OYJ 22.10.2009 AT 8:30 - Group net sales dampened by economic downturn and customer cautiousness, divested units and discontinued operations had a further negative impact on sales - Earnings improved due to price and mix management and successful cost containment - Cash flow continued strong, debt reduced further - Sales outlook for the remainder of 2009 remains uncertain, underlying earnings improvement is expected to continue Key figures EUR million Q1-Q3 2009 Q1-Q3 2008 Q3 2009 Q3 2008 Net sales 1,561.5 1,711.2 507.1 572.1 EBIT* 112.6 73.2 38.6 26.2 EBIT margin % 7.2 4.3 7.6 4.6 EPS 0.65 0.31 0.23 0.10 ROI % (12m roll.) -2.5 -0.2 - - * EBIT includes non-recurring charges of EUR 3.8 million in Q1-Q3 2009 and EUR 6.8 million in Q1-Q3 2008 and EUR 0.1 million in Q3 2008. Overview In the first nine months of the year uncertainty and customer cautiousness characterized the demand for consumer packaging. Although majority of the Group's segments are considered to be of a defensive nature with mainly food and personal care related packaging products, the Group net sales were not immune to the economic downturn and declined during the reporting period. Additionally, the divested units and discontinued operations had a negative impact on sales. Operating earnings for the reporting period continued well above the corresponding period in 2008. In spite of lower sales, earnings improved due to price and mix management as well as successful cost containment. Profitability improved markedly in Rigid Consumer Goods Plastics and North America segments. The earnings improvement together with lower net financial items resulted in earnings per share (EPS) more than doubling during the reporting period. At EUR 167 million, free cash flow improved by EUR 100 million compared to the previous year. Cash flow generation was good in all segments, especially in Flexibles Global. Net debt reduced strongly. During the reporting period the rigid plastic consumer goods businesses in South America and in South Africa as well as the expanded polystyrene packaging business in Australia were divested. The strategic review of the remaining rigid plastic consumer goods operations in Europe and Australia is ongoing. Business review by segment The current segment structure for financial reporting was adopted as of January 1, 2009. The sales distribution by segment is the following: Flexibles Global 22% (unchanged against same period in 2008), Films Global 8% (9%), North America 26% (22%), Rough Molded Fiber Global 10% (9%), Foodservice Europe-Asia-Oceania 21% (unchanged) and Rigid Consumer Goods Plastics 13% (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-Q3 2009 Q1-Q3 2008 Q3 2009 Q3 2008 Net sales 354.1 380.5 114.8 125.3 EBIT 21.2 15.6 7.6 3.9 EBIT margin % 6.0 4.1 6.6 3.1 RONA % (12m roll.) 1.4 3.7 - - In Europe sales recovery visible in the second quarter did not carry on to the third quarter. In Asia-Oceania sales development continued subdued due to soft and competitive market conditions. The discontinued operations in North America had a negative impact on sales. Improved profitability reflects cost containment as well as elimination of loss-making operations. 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-Q3 2009 Q1-Q3 2008 Q3 2009 Q3 2008 Net sales 121.6 158.8 41.3 52.3 EBIT* -1.4 7.8 1.5 3.7 EBIT margin % -1.2 4.9 3.6 7.1 RONA % (12m roll.) -1.0 5.9 - - * EBIT includes non-recurring charges of EUR 3.8 million in Q2 2009. Sales within the segment suffered from weak demand of industrial applications during the reporting period. The consumer related products were more resilient to the economic downturn. In the third quarter some recovery of orders was experienced. Profitability reflects significant volume shortfall partially offset by cost reduction efforts and better operational control. The divestment of the release paper business and further focus on release films in Forchheim, Germany, is expected to be completed by the end of the first quarter 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-Q3 2009 Q1-Q3 2008 Q3 2009 Q3 2008 Net sales 411.5 386.1 129.3 133.4 EBIT 52.6 32.2 14.5 10.5 EBIT margin % 12.8 8.3 11.2 7.9 RONA % (12m roll.) 14.3 7.9 - - Sales within the segment grew during the reporting period. However, in constant currencies sales were below the level of the corresponding period in 2008. In the third quarter sales were at previous year's level in Frozen desserts and Retail, while declining in Foodservice due to soft market conditions and product portfolio optimization. The improvement in profitability reflects strong market positions, successful mix management and cost containment. In the third quarter favorable currency translation impact diminished and raw material costs increased. The closure of the rigid plastics site in Phoenix, USA, was completed in the third quarter 2009. 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-Q3 2009 Q1-Q3 2008 Q3 2009 Q3 2008 Net sales 151.6 162.3 52.0 53.4 EBIT 12.8 9.8 4.7 3.7 EBIT margin % 8.4 6.0 9.0 6.9 RONA % (12m roll.) 6.8 7.6 - - In constant currencies sales growth was achieved in packaging operations, i.e. excluding machine and waste paper trade businesses. In the third quarter sales for egg packaging accelerated especially in Europe and Africa. The improvement in profitability reflects favorable sales development and cost containment. During the third quarter the production unit in Roodekoop, South Africa, was sold to Polyoak Packaging (Pty) Ltd. The divested unit made injection molded plastic packaging, had annual net sales of approximately EUR 5 million and employed some 55 people. All South African units are reported under Rough Molded Fiber Global segment. Foodservice Europe-Asia-Oceania Foodservice paper and plastic disposable tableware is supplied to foodservice operators and fast food restaurants. EUR million Q1-Q3 2009 Q1-Q3 2008 Q3 2009 Q3 2008 Net sales 341.5 374.6 116.2 126.8 EBIT 15.6 13.6 6.8 5.9 EBIT margin % 4.6 3.6 5.9 4.7 RONA % (12m roll.) 0.2 1.0 - - Overall sales within the segment declined during the reporting period. In Oceania sales continued on a good level with robust growth recorded in the third quarter. Profitability reflects cost containment, successful price and mix management as well as improved performance in Asia-Oceania. The closure of the site in Balakong, Malaysia, was completed in the third quarter 2009. 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-Q3 2009 Q1-Q3 2008 Q3 2009 Q3 2008 Net sales 220.3 303.0 66.5 97.9 EBIT 16.2 -5.7 4.5 -1.4 EBIT margin % 7.4 -1.9 6.8 -1.4 RONA % (12m roll.) -85.6 -27.2 - - * EBIT includes non-recurring charges of EUR 6.8 million in Q2 2008 and EUR 0.1 million in Q3 2008. Sales within the segment declined during the reporting period. The divested units and discontinued operations had a negative impact on sales. Clear improvement in profitability reflects better operational control and cost containment partially offset by increased pressure on margins. The strategic review of the remaining rigid plastic consumer goods operations in Europe and Australia is ongoing. Financial review The Group EBIT for the reporting period was EUR 113 million (EUR 73 million), corresponding to an EBIT margin of 7.2% (4.3%). Excluding non-recurring charges of EUR 4 million (EUR 7 million), the Group EBIT for the reporting period was EUR 117 million (EUR 80 million), corresponding to an EBIT margin of 7.4% (4.6%). In the third quarter, the Group EBIT was EUR 39 million (EUR 26 million), corresponding to an EBIT margin of 7.6% (4.5%). The net financial items for the reporting period were EUR -21 million (EUR -34 million) and for the third quarter EUR -6 million (EUR -14 million). Tax expense for the period was EUR 18 million (EUR 7 million) and for the third quarter EUR 7 million (EUR 2 million). The result for the period was EUR 74 million (EUR 33 million) and EPS attributable to equity holders of the parent company were EUR 0.65 (EUR 0.31). Correspondingly in the third quarter these were EUR 27 million (EUR 10 million) and EUR 0.23 (EUR 0.10). The average number of outstanding shares used in the EPS calculations was 100,426,461 (unchanged) excluding 5,061,089 (unchanged) of the Company's own shares. Balance sheet and cash flow Free cash flow for the reporting period was EUR 167 million (EUR 67 million), with the third quarter amounting to EUR 65 million (EUR -6 million). The improvement was due to prudent working capital management, higher earnings and lower capital expenditure. While all segments contributed with good cash flow generation, Flexibles Global continued as most successful. Capital expenditure was EUR 32 million (EUR 48 million), with the third quarter spending at EUR 14 million (EUR 16 million). Net debt was EUR 424 million (EUR 723 million) at the end of September 2009. This corresponds to a gearing ratio of 0.58 (0.93). Total assets on the balance sheet were EUR 1,837 million (EUR 2,197 million). Personnel The Group had 13,346 (14,794) employees at the end of September 2009. Short-term risks and uncertainties Volatile raw material and energy prices as well as movements in currency translations are considered to be relevant short-term business risks and uncertainties in the Group's operations. Material changes in general economic conditions or in the financial markets could have an adverse effect on the implementation of the Group's strategy and on its business performance and earnings. Outlook for 2009 Sales outlook for the remainder of 2009 remains uncertain, the underlying earnings improvement is expected to continue. Price and mix management, supply chain initiatives, control over costs and capital spending, positive cash flow generation and net debt reduction continue as key focus areas within the Group. Capital expenditure in 2009 is expected to be clearly below EUR 100 million. Financial calendar in 2010 The Results 2009 will be published on February 12, 2010. Additionally, the following interim reports will be published during the course of the year: January 1 - March 31, 2010 on April 22, January 1 - June 30, 2010 on July 22 and January 1 - September 30, 2010 on October 21. Huhtamäki Oyj's Annual General Meeting is planned to be held on March 24, 2010. Espoo, October 21, 2009 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. Kia Aejmelaeus, Head of Investor Relations, tel. +358-10-686 7819 or mobile +358-40-765 4616 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: 29752470 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 - September 30, 2009 Group income statement (IFRS) Unaudited Q1-Q3 Q1-Q3 Q3 Q3 Q1-Q4 EUR million 2009 2008 2009 2008 2008 Net sales 1,561.5 1,711.2 507.1 572.1 2,260.0 Cost of goods sold -1,292.7 -1,479.2 -418.9 -496.0 -2,043.2 Gross profit 268.8 232.0 88.2 76.1 216.8 Other operating income 14.8 14.2 4.3 6.9 21.6 Sales and marketing -57.7 -63.5 -18.4 -21.4 -84.8 Research and development -12.1 -12.0 -4.4 -3.5 -16.2 Administration costs -90.0 -87.1 -28.0 -28.3 -117.2 Other operating expenses -11.2 -10.4 -3.1 -3.6 -94.7 -156.2 -158.8 -49.6 -49.9 -291.3 Earnings before interest and 112.6 73.2 38.6 26.2 -74.5 taxes Financial income 20.3 7.5 6.3 0.4 10.0 Financial expenses -41.5 -41.6 -12.0 -14.5 -55.7 Income of associated 0.5 0.4 0.2 0.1 0.5 companies Result before taxes 91.9 39.5 33.1 12.2 -119.7 Income taxes -18.3 -6.9 -6.6 -2.1 9.5 Result for the period 73.6 32.6 26.5 10.1 -110.2 Attributable to: Equity holders of the parent 71.6 31.0 25.9 9.6 -111.9 company Minority interest 2.0 1.6 0.6 0.5 1.7 EPS (EUR) from result for 0.71 0.31 0.25 0.10 -1.11 the period EPS (EUR) attributable to 0.06 - 0.02 - 0.01 hybrid bond investors EPS (EUR) attributable to 0.65 0.31 0.23 0.10 -1.12 equity holders of the parent company Diluted: EPS (EUR) from result for 0.71 0.31 0.25 0.10 -1.11 the period EPS (EUR) attributable to 0.06 - 0.02 - 0.01 hybrid bond investors EPS (EUR) attributable to 0.65 0.31 0.23 0.10 -1.12 equity holders of the parent company Group statement of comprehensive income (IFRS) Q1-Q3 Q1-Q3 Q3 Q3 Q1-Q4 EUR million 2009 2008 2009 2008 2008 Result for the period 73.6 32.6 26.5 10.1 -110.2 Other comprehensive income: Translation differences -1.3 -0.8 -5.1 17.0 -9.5 Fair value and other reserves -1.4 -2.6 -0.1 -2.4 -9.0 Income tax related to components of 0.3 0.5 0.2 0.5 2.7 other comprehensive income Other comprehensive income, net of tax -2.4 -2.9 -5.0 15.1 -15.8 Total comprehensive income 71.2 29.7 21.5 25.2 -126.0 Attributable to: Equity holders of the parent company 69.1 28.3 20.9 24.7 -127.7 Minority interest 2.1 1.4 0.6 0.5 1.7 Group statement of financial position (IFRS) Unaudited Sep 30 Dec 31 Sep 30 EUR million 2009 2008 2008 ASSETS Non-current assets Good- will 393.6 402.4 473.2 Other intangible as- sets 31.4 34.5 39.2 Tangible as- sets 634.0 676.3 768.6 Investments in asso- ciated compa- nies 2.3 1.9 1.7 Available for sale invest- ments 1.9 1.9 1.9 Interest bea- ring recei- vab- les 1.7 0.1 0.4 Deferred tax as- sets 15.2 15.1 13.6 Employee benefit as- sets 58.2 62.5 60.7 Other non- current assets 3.1 3.7 3.7 1,141.4 1,198.4 1,363.0 Current assets Inven- tory 257.9 296.7 363.8 Interest bearing recei- vab- les 18.2 2.1 3.1 Current tax as- sets 8.7 9.4 12.7 Trade and other current recei- vab- les 337.5 377.9 409.9 Cash and cash equi- valents 73.4 67.8 44.4 695.7 753.9 833.9 Total assets 1,837.1 1,952.3 2,196.9 EQUITY AND LIABILITIES Sha- re capi- tal 358.7 358.7 358.7 Pre- mium fund 104.7 104.7 104.7 Trea- sury sha- res -46.5 -46.5 -46.5 Translation diffe- ren- cies -131.9 -130.5 -121.8 Fair value and other reser- ves -6.0 -5.0 -0.6 Retained earnings 359.8 327.5 467.5 Total equity attributable to equity holders of the parent com- pa- ny 638.8 608.9 762,0 Minority inte- rest 19.0 18.4 18.6 Hyb- rid bond 75.0 75.0 - Total equi- ty 732.8 702.3 780.6 Non-current liabilities Interest bearing liabilities 384.0 474.7 432.8 Deferred tax liabilities 41.2 29.8 45.3 Employee benefit liabilities 100.8 103.8 106.4 Provi- sions 57.5 58.4 60.8 Other non- current liabilities 4.9 6.5 3.7 588.4 673.2 649.0 Current liabilities Interest bearing liabilities - Current portion of long term loans 26.3 25.2 17.6 - Short term loans 107.0 157.3 320.0 Provi- sions 8.6 10.1 9.0 Current tax liabilities 6.8 9.8 9.9 Trade and other current liabilities 367.2 374.4 410.8 515.9 576.8 767.3 Total liabilities 1,104.3 1,250.0 1,416.3 Total equity and liabilities 1,837.1 1,952.3 2,196.9 Sep 30 Dec 31 Sep 30 2009 2008 2008 Net debt 424.0 587.2 722.5 Net debt to equity (gearing) 0.58 0.84 0.93 Statement of changes in equity Unaudited Attributable to equity holders Mino- Hybrid To- of 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 1.0 1.0 1.0 payments Total comprehensive -0.7 -2.0 31.0 28.3 1.4 29.7 income for the year Other changes 2.0 2.0 -3.3 -1.3 Balance at Sep 30, 2008 358.7 104.7 -46.5 -121.8 -0.6 467.5 762.0 18.6 - 780.6 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 2.2 2.2 2.2 payments Stock options 0.1 0.1 0.1 excercised Interest on -6.7 -6.7 -6.7 Hybrid Bond Total -1.4 -1.1 71.6 69.1 2.1 71.2 comprehensive income for the year Other changes -0.7 -0.7 -1.5 -2.2 Balance at Sep 30, 2009 358.7 104.7 -46.5 -131.9 -6.0 359.8 638.8 19.0 75.0 732.8 Group cash flow statement (IFRS) Unaudited Q1-Q3 Q1-Q3 Q3 Q3 Q1-Q4 EUR million 2009 2008 2009 2008 2008 Result for the period* 73.6 32.6 26.5 10.1 -110.2 Adjustments* 103.6 109.8 35.5 37.4 280.0 - Depreciation, amortization 65.7 72.5 16.8 26.3 245.9 and impairment* - Gain on equity of -0.5 -0.4 -0.2 -0.1 -0.5 minorities* - Gain/loss from disposal of 0.4 -3.9 -0.3 -3.4 -4.3 assets* - Financial expense/-income* 21.1 34.1 5.6 14.1 45.7 - Income tax expense* 18.4 6.9 6.6 2.1 -9.5 - Other adjustments, -1.5 0.6 7.0 -1.6 2.7 operational* Change in inventory* 36.6 -18.4 4.2 -3.7 38.2 Change in non-interest bearing 15.2 -9.2 12.1 12.3 8.2 receivables* Change in non-interest bearing -6.0 32.8 10.5 -30.0 2.8 payables* Dividends received* 0.3 0.2 0.2 0.0 0.5 Interest received* 1.5 1.4 0.5 0.5 1.7 Interest paid* -18.4 -33.7 -8.4 -13.2 -43.2 Other financial expense and -3.6 -0.3 -1.0 -3.0 -2.1 income* Taxes paid* -7.3 -6.5 -1.7 -3.5 -5.0 Net cash flows from operating 195.5 108.7 78.4 6.9 170.9 activities Capital expenditure* -31.7 -47.7 -14.0 -16.4 -74.3 Proceeds from selling fixed assets* 3.5 5.9 0.5 3.9 7.1 Divested subsidiaries 36.6 - 1.3 - - Proceeds from long-term 0.8 3.0 0.4 1.8 3.3 deposits Payment of long-term deposits -2.5 -2.5 -1.8 -0.3 -2.5 Proceeds from short-term 2.8 29.6 0.4 24.6 33.4 deposits Payment of short-term deposits -17.6 -28.3 -5.6 -2.6 -31.4 Net cash flows from investing -8.1 -40.0 -18.8 11.0 -64.4 Proceeds from long-term 573.1 317.6 219.6 161.6 489.3 borrowings Repayment of long-term -668.2 -284.0 -302.8 -126.0 -415.9 borrowings Proceeds from short-term 224.1 2,117.7 100.6 667.1 2,446.3 borrowings Repayment of short-term -275.2 -2,163.9 -85.5 -720.1 -2,620.5 borrowings Dividends paid -34.1 -42.2 - 0.0 -42.2 Hybrid bond - - - - 75.0 Proceeds from stock options 0.1 - 0.1 - - exercised Net cash flows from financing -180.2 -54.8 -68.0 -17.4 -68.0 Change in liquid assets 5.6 13.6 -11.4 1.6 37.0 Cash flow based 7.2 13.9 -8.4 0.5 38.5 Translation difference -1.6 -0.3 -3.0 1.1 -1.5 Liquid assets period start 67.8 30.8 84.8 42.8 30.8 Liquid assets period end 73.4 44.4 73.4 44.4 67.8 Free cash flow (including 167.3 66.9 64.9 -5.6 103.7 figures marked with *) NOTES FOR THE INTERIM 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 Q3 Q2 Q1 Q1-Q3 Q4 Q3 Q2 Q1 Q1-Q4 EUR million 2009 2009 2009 2009 2008 2008 2008 2008 2008 Flexibles Global 114.0 118.2 119.7 351.9 117.9 123.9 124.7 127.8 494.3 - Intersegment net sales 0.8 0.8 0.6 2.2 -0.8 1.4 1.7 1.0 3.3 Films Global 40.4 38.3 40.0 118.7 40.9 50.8 51.6 50.5 193.8 - Intersegment net sales 0.9 0.8 1.2 2.9 1.0 1.5 1.8 2.6 6.9 North America 128.3 152.1 128.1 408.5 148.5 132.4 137.6 113.3 531.8 - Intersegment net sales 1.0 1.0 1.0 3.0 1.4 1.0 1.0 0.8 4.2 Rough Molded Fiber Global 51.6 51.0 48.3 150.9 51.5 53.1 54.1 54.7 213.4 - Intersegment net sales 0.4 0.3 0.0 0.7 0.2 0.3 0.1 0.0 0.6 Foodservice Europe- Asia- Oceania 111.2 117.8 97.1 326.1 107.0 118.7 124.6 106.4 456.7 - Intersegment net sales 5.0 3.0 7.4 15.4 7.9 8.1 8.2 8.6 32.8 Rigid Consumer Goods Plastics 61.6 70.4 73.4 205.4 83.0 93.2 97.9 95.9 370.0 - Intersegment net sales 4.9 5.7 4.3 14.9 3.8 4.7 6.4 4.9 19.8 Elimination of intersegment net sales 13.0 11.6 14.5 39.1 13.5 17.0 19.2 17.9 67.6 Total 507.1 547.8 506.6 1,561.5 548.8 572.1 590.5 548.6 2,260.0 EBIT Q3 Q2 Q1 Q1-Q3 Q4 Q3 Q2 Q1 Q1-Q4 EUR million 2009 2009 2009 2009 2008 2008 2008 2008 2008 Flexibles Global (1 7.6 4.8 8.8 21.2 -16.6 3.9 5.5 6.2 -1.0 Films Global (2 1.5 -3.4 0.5 -1.4 0.1 3.7 3.6 0.5 7.9 North America (3 14.5 23.6 14.5 52.6 1.2 10.5 14.4 7.3 33.4 Rough Molded Fiber 4.7 4.3 3.8 12.8 -1.4 3.7 3.0 3.1 8.4 Global (4 Foodservice 6.8 6.4 2.4 15.6 -15.2 5.9 5.3 2.4 -1.6 Europe-Asia-Oceania (5 Rigid Consumer 4.5 6.0 5.7 16.2 -117.7 -1.4 -4.8 0.5 -123.4 Goods Plastics (6 Other activities -1.0 -2.7 -0.7 -4.4 1.9 -0.1 0.0 0.0 1.8 Total (7 38.6 39.0 35.0 112.6 -147.7 26.2 27.0 20.0 -74.5 1) Q4 2008 includes restructuring charges MEUR 1.7, goodwill impairment charges MEUR 7.4 and tangible asset impairment charges MEUR 8.8. 2) Q2 and Q1-Q3 2009 includes restructuring charges MEUR 3.8. 3) Q4 2008 includes restructuring charges MEUR 2.0 and tangible asset impairment charges MEUR 3.2. 4) Q4 2008 includes goodwill impairment charges MEUR 3.7. 5) Q4 2008 includes restructuring charges MEUR 3.3, goodwill impairment charges MEUR 7.1 and tangible asset impairment charges MEUR 4.1. 6) Q4 2008 includes restructuring charges MEUR 2.3, goodwill impairment charges MEUR 54.1 and tangible asset impairment charges MEUR 60.9, Q3 2008 includes restructuring charges MEUR 0.1, Q2 2008 includes restructuring charges MEUR 6.8. 7) Q2 and Q1-Q3 2009 includes restructuring charges MEUR 3.8. Q4 2008 includes restructuring charges MEUR 9.3, goodwill impairment charges MEUR 72.3 and tangible asset impairment charges MEUR 77.0, Q3 2008 includes restructuring charges MEUR 0.1, Q2 2008 includes restructuring charges MEUR 6.8, total amount MEUR 165.5. EBITDA Q3 Q2 Q1 Q1-Q3 Q4 Q3 Q2 Q1 Q1-Q4 EUR million 2009 2009 2009 2009 2008 2008 2008 2008 2008 Flexibles Global 12.1 9.3 13.3 34.7 -11.4 9.0 10.0 10.7 18.3 Films Global 3.0 -2.0 2.1 3.1 1.2 5.4 5.2 1.9 13.7 North America 20.4 29.4 19.8 69.6 6.4 14.8 18.7 11.6 51.5 Rough Molded Fiber 7.5 7.0 6.5 21.0 1.3 6.5 5.9 6.1 19.8 Global Foodservice 11.9 11.0 7.2 30.1 -9.7 13.5 10.5 7.6 21.9 Europe-Asia-Oceania Rigid Consumer 6.3 8.5 8.1 22.9 -113.8 3.0 -0.4 5.0 -106.2 Goods Plastics Other activities -0.9 -2.5 -0.5 -3.9 2.5 0.2 0.2 0.2 3.1 Total 60.3 60.7 56.5 177.5 -123.5 52.4 50.1 43.1 22.1 Depreciation and amortization Q3 Q2 Q1 Q1-Q3 Q4 Q3 Q2 Q1 Q1-Q4 EUR million 2009 2009 2009 2009 2008 2008 2008 2008 2008 Flexibles Global 4.5 4.5 4.5 13.5 5.2 5.1 4.5 4.5 19.3 Films Global 1.5 1.4 1.6 4.5 1.1 1.7 1.6 1.4 5.8 North America 5.9 5.8 5.3 17.0 5.2 4.3 4.3 4.3 18.1 Rough Molded Fiber 2.8 2.7 2.7 8.2 2.7 2.8 2.9 3.0 11.4 Global Foodservice 5.1 4.6 4.8 14.5 5.5 7.6 5.2 5.2 23.5 Europe-Asia-Oceania Rigid Consumer Goods 1.8 2.5 2.4 6.7 3.9 4.4 4.4 4.5 17.2 Plastics Other activities 0.1 0.2 0.2 0.5 0.6 0.3 0.2 0.2 1.3 Total 21.7 21.7 21.5 64.9 24.2 26.2 23.1 23.1 96.6 Net assets allocated to the segments (8 Q3 Q2 Q1 Q4 Q3 Q2 Q1 EUR million 2009 2009 2009 2008 2008 2008 2008 Flexibles Global 311.5 325.8 342.2 359.7 389.2 373.1 381.4 Films Global 117.5 125.2 135.8 133.1 146.2 140.8 145.3 North America 365.8 370.8 393.9 379.2 390.2 358.9 370.0 Rough Molded Fiber Global 167.1 169.9 170.4 164.1 177.6 180.2 182.6 Foodservice 236.8 246.6 241.7 244.2 284.0 286.0 293.6 Europe-Asia-Oceania Rigid Consumer Goods 103.3 103.8 137.3 129.7 262.0 267.7 276.3 Plastics 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 Q3 Q2 Q1 Q1-Q3 Q4 Q3 Q2 Q1 Q1-Q4 EUR million 2009 2009 2009 2009 2008 2008 2008 2008 2008 Flexibles Global 2.3 3.2 2.1 7.6 4.9 3.0 8.6 4.7 21.2 Films Global 0.2 0.3 0.2 0.7 0.5 0.8 1.0 2.1 4.4 North America 6.5 2.8 1.0 10.3 5.9 4.0 2.6 1.3 13.8 Rough Molded Fiber 0.7 0.8 1.6 3.1 4.8 3.1 1.0 0.8 9.7 Global Foodservice 2.7 1.4 2.3 6.4 6.3 4.2 3.2 3.2 16.9 Europe-Asia-Oceania Rigid Consumer Goods 1.6 1.0 0.8 3.4 4.1 1.3 1.4 0.7 7.5 Plastics Other activities 0.0 0.2 0.0 0.2 0.1 0.0 0.0 0.7 0.8 Total 14.0 9.7 8.0 31.7 26.6 16.4 17.8 13.5 74.3 RONA, % (12m roll.) Q3 Q2 Q1 Q4 Q3 Q2 Q1 2009 2009 2009 2008 2008 2008 2008 Flexibles Global 1.4% 0.3% 0.4% -0.3% 3.7% 4.7% 5.5% Films Global -1.0% 0.7% 5.7% 5.6% 5.9% 6.6% 6.8% North America 14.3% 13.0% 10.7% 8.9% 7.8% 8.0% 8.7% Rough Molded Fiber 6.8% 6.1% 5.3% 4.8% 7.6% 7.6% 8.1% Global Foodservice 0.2% -0.2% -0.6% -0.6% 1.0% 0.3% 0.3% Europe-Asia-Oceania Rigid Consumer Goods -85.6% -67.9% -59.3% -52.8% -27.2% -24.2% -21.1% Plastics Operating Cash Flow Q3 Q2 Q1 Q1-Q3 Q4 Q3 Q2 Q1 Q1-Q4 EUR million 2009 2009 2009 2009 2008 2008 2008 2008 2008 Flexibles Global 17.3 23.4 20.0 60.7 12.7 -3.2 6.7 4.6 20.8 Films Global 8.4 8.2 1.9 18.5 13.9 0.5 7.7 2.5 24.6 North America 9.6 22.9 14.5 47.0 16.5 6.7 23.1 -3.9 42.4 Rough Molded Fiber 4.3 8.6 -0.6 12.3 3.6 3.9 8.7 1.2 17.4 Global Foodservice 18.3 7.1 -2.1 23.3 3.6 7.6 14.5 1.3 27.0 Europe-Asia-Oceania Rigid Consumer Goods 7.9 11.1 0.7 19.7 11.6 -1.2 19.9 5.5 35.8 Plastics 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-Q3 Q1-Q3 Q1-Q4 EUR million 2009 2008 2008 Equity per share 7.11 7.59 6.81 (EUR) ROE, % (12m -9.6 -6.5 -14.8 roll.) ROI, % (12m -2.5 -0.2 -4.8 roll.) Personnel 13,346 14,794 14,644 Result before -67.3 -50.5 -119.7 taxes (12m roll.) Depreciation 60.5 66.9 89.2 Amortization of 4.4 5.6 7.4 other intangible assets Share capital and shareholders At the end of September 2009, the Company's registered share capital was EUR 358,657,670.00 (unchanged) corresponding to a total number of outstanding shares of 105,487,550 (unchanged) 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 100,426,461 (unchanged). There were 22,444 (21,819) registered shareholders at the end of the reporting period. Foreign ownership including nominee registered shares accounted for 27.4% (27.1%). 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 September 2009, the Company's market capitalization was EUR 917.7 million (EUR 589.7 million) and EUR 873.7 million (EUR 561.4 million) excluding Company's own shares. With a closing price of EUR 8.70 (EUR 5.59) the share price increased by 98% (-31%) from the beginning of the year, while the OMX Helsinki Cap PI Index increased by 31% (-35%) and the OMX Helsinki Materials PI Index increased by 15% (-36%). During the reporting period the volume weighted average price for the Company's share was EUR 6.75 (unchanged). The highest price paid was EUR 9.05 on September 22, 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 389.9 million (EUR 574.2 million). The trading volume of 58.2 million (84.8 million) shares equaled an average daily turnover of EUR 2.1 million (EUR 3.0 million) or, correspondingly 309,502 (444,106) shares. In total, turnover of the Company's 2003 A, B and C as well as 2006 A option rights was EUR 864,131 corresponding to a trading volume of 1,185,832. Contingent liabilities Sep 30 Dec 31 Sep 30 2009 2008 2008 EUR million Mortgages 14.5 14.5 14.5 Guarantee obligations 2.4 2.9 1.8 Lease payments 51.5 49.8 56.3 Capital expenditure commitments 22.3 7.3 24.2 Nominal values of derivative instruments Sep 30 Dec 31 Sep 30 2009 2008 2008 EUR million Currency forwards, transaction risk hedges 26 49 78 Currency forwards, translation risk hedges 28 34 36 Currency swaps, financing hedges 142 105 112 Currency options 2 - 1 Interest rate swaps 158 160 176 Interest rate options - 7 - Electricity forwards 4 6 - The following EUR rates have been applied to GBP, INR, AUD and USD Q1-Q3/09 Q1-Q3/08 Income statement, average: GBP 1 = 1.128 1.282 INR 1 = 0.015 0.016 AUD 1 = 0.548 0.601 USD 1 = 0.733 0.655 Q3/09 Q3/08 Balance sheet, month end: GBP 1 = 1.100 1.265 INR 1 = 0.014 0.015 AUD 1 = 0.603 0.564 USD 1 = 0.683 0.699 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)
Interim Report January 1 - September 30, 2009: Earnings improvement continued
| Source: Huhtamäki Oyj