STOCK EXCHANGE RELEASE HUHTAMÄKI OYJ 23.7.2009 AT 8:30
- Group net sales dampened by economic downturn and customer
cautiousness, some volume recovery experienced in the second quarter
- Earnings improved due to successful cost containment, better
operational control as well as price and mix management
- Free cash flow continued strong, debt reduced further
- Progress with strategic review of the rigid plastic consumer goods
business; action taken in South America and Australia
- Full year sales outlook remains uncertain and pressure on margins
is expected to increase during the course of the year
Key figures
EUR million H1 2009 H1 2008 Q2 2009 Q2 2008
Net sales 1,054.4 1,139.1 547.8 590.5
EBIT* 74.0 47.0 39.0 27.0
EBIT margin % 7.0 4.1 7.1 4.6
EPS 0.42 0.21 0.24 0.13
ROI % (12m roll.) -3.2 0.2 - -
* EBIT includes non-recurring charges of EUR 3.8 million in Q2 2009
and EUR 6.8 million in Q2 2008.
Overview
The demand for consumer packaging was characterized by uncertainty
and customer cautiousness in the first half of the year. 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. The net sales decline was
volume driven in the first quarter. While there was some improvement
in volumes in the second quarter this was more than offset by
negative price and mix development compared to the previous year.
Operating earnings for the reporting period continued well above the
corresponding period in 2008 in spite of lower sales. Earnings
improved due to successful cost containment, better operational
control as well as price and mix management. Profitability improved
markedly in North America and Rigid Consumer Goods Plastics segments.
At EUR 102 million, free cash flow improved by EUR 30 million
compared to the previous year. Cash flow generation was good
especially in North America and Flexibles Global segments. Strong
reduction of net debt was achieved.
The ongoing strategic review of the rigid plastic consumer goods
business progressed during the second quarter. The rigid plastic
consumer goods business in South America as well as the expanded
polystyrene (EPS) packaging business in Australia were divested.
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 23% (22% against same period in 2008),
Films Global 7% (9%), North America 27% (22%), Rough Molded Fiber
Global 9% (10%), Foodservice Europe-Asia-Oceania 20% (20%) 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 H1 2009 H1 2008 Q2 2009 Q2 2008
Net sales 239.3 255.2 119.0 126.4
EBIT 13.6 11.7 4.8 5.5
EBIT margin % 5.7 4.6 4.0 4.4
RONA % (12m roll.) 0.3 4.7 - -
In Europe sales recovered in the second quarter after a weak start to
the year. In Asia-Oceania sales development continued subdued due to
market softness in the region.
Improved profitability reflects cost containment. The second quarter
earnings were negatively impacted by an inventory revaluation in
Europe due to lower raw material costs.
The discontinuation of the loss-making flexible packaging operations
in Malvern, USA, was finalized in the second quarter 2009.
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 H1 2009 H1 2008 Q2 2009 Q2 2008
Net sales 80.3 106.5 39.1 53.4
EBIT* -2.9 4.1 -3.4 3.6
EBIT margin % -3.6 3.8 -8.7 6.7
RONA % (12m roll.) 0.7 6.6 - -
* Q2 2009 EBIT includes EUR 3.8 million non-recurring charges.
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.
Profitability reflects significant volume shortfall partially offset
by cost reduction efforts and better operational control. The
reported EBIT in the second quarter includes non-recurring charges
following the divestment of the release paper business and further
focus on release films in Forchheim, Germany. These resulted in the
termination of approximately 100 permanent positions 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 H1 2009 H1 2008 Q2 2009 Q2 2008
Net sales 282.2 252.7 153.1 138.6
EBIT 38.1 21.7 23.6 14.4
EBIT margin % 13.5 8.6 15.4 10.4
RONA % (12m roll.) 13.0 8.0 - -
Sales within the segment grew during the reporting period. However,
in constant currencies sales were slightly below the level of the
corresponding period in 2008. Retail and Frozen desserts showed
growth. Sales development in other market segments was weaker,
partially as a result of product portfolio optimization.
The clear improvement in profitability reflects strong market
positions and lower costs. Also, currency translation impact was
favorable.
The closure of the rigid plastics site in Phoenix, USA, will be
finalized 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 H1 2009 H1 2008 Q2 2009 Q2 2008
Net sales 99.6 108.9 51.3 54.2
EBIT 8.1 6.1 4.3 3.0
EBIT margin % 8.1 5.6 8.4 5.5
RONA % (12m roll.) 6.1 7.6 - -
Sales growth was achieved in constant currencies and excluding
ancillary operations, i.e. machine and waste paper trade businesses.
In the second quarter demand increased driven by South America,
Africa and Oceania.
The improvement in profitability reflects sales growth in certain
market segments and cost containment. The adverse currency impact in
the beginning of the year was less pronounced in the second quarter.
Foodservice Europe-Asia-Oceania
Foodservice paper and plastic disposable tableware is supplied to
foodservice operators and fast food restaurants.
EUR million H1 2009 H1 2008 Q2 2009 Q2 2008
Net sales 225.3 247.8 120.8 132.8
EBIT 8.8 7.7 6.4 5.3
EBIT margin % 3.9 3.1 5.3 4.0
RONA % (12m roll.) -0.2 0.3 - -
Sales recovered in Asia and remained on a good level in Oceania in
the second quarter. Meanwhile, sales growth in Europe slowed down.
Overall sales within the segment declined during the reporting
period.
Profitability reflects lower costs and better operational control in
Asia partially offset by adverse currency impact.
The closure of the site in Balakong, Malaysia, is expected by the end
of 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 H1 2009 H1 2008 Q2 2009 Q2 2008
Net sales 153.8 205.1 76.1 104.3
EBIT 11.7 -4.3 6.0 -4.8
EBIT margin % 7.6 -2.1 7.9 -4.6
RONA % (12m roll.) -67.9 -24.2 - -
* Q2 2008 EBIT includes EUR 6.8 million non-recurring charges.
Sales within the segment declined during the reporting period. The
discontinued operations in the UK and to a smaller extent the
recently divested units had a negative impact on sales.
The clear improvement in profitability reflects better operational
control and lower costs.
During the second quarter the rigid plastic consumer goods business
in South America was sold to subsidiaries of Bemis Company, Inc. With
three manufacturing units in Brazil and one in Argentina and some 640
employees the annual net sales of the divested businesses were
approximately EUR 60 million. The agreed value for the transaction
was EUR 30 million. Furthermore, the EPS packaging business in
Australia was sold to Pact Group Pty Ltd. The annual net sales of the
divested unit were approximately EUR 7 million and it employed some
40 people. The agreed value for the transaction was EUR 5 million.
The transaction impact on earnings was neutral.
A 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 74 million (EUR 47
million), corresponding to an EBIT margin of 7.0% (4.1%). In the
second quarter, the Group EBIT was EUR 39 million (EUR 27 million),
corresponding to an EBIT margin of 7.1% (4.6%). Excluding the
non-recurring charges of EUR 4 million (EUR 7 million), the Group
EBIT for the reporting period was EUR 78 million (EUR 54 million),
corresponding to an EBIT margin of 7.4% (4.7%), and for the second
quarter EUR 43 million (EUR 34 million), corresponding to an EBIT
margin of 7.8% (5.7%).
The net financial items for the reporting period were EUR -16 million
(EUR -20 million) and for the second quarter EUR -7 million (EUR -11
million). Tax expense for the period was EUR 12 million (EUR 5
million) and for the second quarter EUR 7 million (EUR 3 million).
The result for the period was EUR 47 million (EUR 23 million) and the
earnings per share (EPS) attributable to equity holders of the parent
company were EUR 0.42 (EUR 0.21). Correspondingly in the second
quarter these were EUR 26 million (EUR 13 million) and EUR 0.24 (EUR
0.13). 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 102 million (EUR 73
million), with the second quarter amounting to EUR 65 million (EUR 85
million). The improvement was due to higher earnings, lower capital
expenditure and prudent working capital management. North America and
Flexibles Global segments continued as most successful in generating
cash flow. Capital expenditure was EUR 18 million (EUR 31 million),
with the second quarter spending at EUR 10 million (EUR 18 million).
Net debt was EUR 487 million (EUR 710 million) at the end of June
2009. This corresponds to a gearing ratio of 0.68 (0.94). Total
assets on the balance sheet were EUR 1,889 million (EUR 2,207
million).
Personnel
The Group had 13,712 (15,373) employees at the end of June 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
Full year sales outlook remains uncertain and pressure on margins is
expected to increase during the course of the year.
In the short-term, 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 reporting in 2009
Huhtamaki will publish the interim report for January 1 - September
30, 2009 on October 22.
Espoo, July 22, 2009
Huhtamäki Oyj's 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: 17356248
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 - June 30, 2009
Group income statement
(IFRS)
Unaudited
H1 H1 Q2 Q2 Q1-Q4
EUR million 2009 2008 2009 2008 2008
Net sales 1,054.4 1,139.1 547.8 590.5 2,260.0
Cost of goods sold -873.8 -983.2 -453.6 -508.3 -2,043.2
Gross profit 180.6 155.9 94.2 82.2 216.8
Other operating income 10.5 7.3 6.9 3.6 21.6
Sales and marketing -39.3 -42.1 -21.5 -22.3 -84.8
Research and development -7.7 -8.5 -3.7 -4.2 -16.2
Administration costs -62.0 -58.8 -31.9 -29.6 -117.2
Other operating expenses -8.1 -6.8 -5.0 -2.7 -94.7
-106.6 -108.9 -55.2 -55.2 -291.3
Earnings before interest 74.0 47.0 39.0 27.0 -74.5
and taxes
Financial income 14.0 7.1 10.7 3.1 10.0
Financial expenses -29.5 -27.1 -17.2 -14.5 -55.7
Income of associated 0.3 0.3 0.1 0.2 0.5
companies
Result before taxes 58.8 27.3 32.6 15.8 -119.7
Income taxes -11.7 -4.8 -6.5 -2.7 9.5
Result for the period 47.1 22.5 26.1 13.1 -110.2
Attributable to:
Equity holders of the 45.7 21.4 25.3 12.7 -111.9
parent company
Minority interest 1.4 1.1 0.8 0.4 1.7
EPS (EUR) from result for 0.46 0.21 0.28 0.13 -1.11
the period
EPS (EUR) attributable to 0.04 - 0.04 - 0.01
hybrid bond investors
EPS (EUR) attributable to 0.42 0.21 0.24 0.13 -1.12
equity holders of the
parent company
Diluted:
EPS (EUR) from result for 0.46 0.21 0.28 0.13 -1.11
the period
EPS (EUR) attributable to 0.04 - 0.04 - 0.01
hybrid bond investors
EPS (EUR) attributable to 0.42 0.21 0.24 0.13 -1.12
equity holders of the
parent company
Group statement of comprehensive income
(IFRS)
H1 H1 Q2 Q2 Q1-Q4
EUR million 2009 2008 2009 2008 2008
Result for the period 47.1 22.5 26.1 13.1 -110.2
Other comprehensive income:
Translation differences 3.8 -17.8 -6.6 6.6 -9.5
Fair value and other reserves -1.3 -0.2 1.8 2.5 -9.0
Income tax related to components of other
comprehensive income 0.1 0.0 -0.6 -0.6 2.7
Other comprehensive income, net of tax 2.6 -18.0 -5.4 8.5 -15.8
Total comprehensive income 49.7 4.5 20.7 21.6 -126.0
Attributable to:
Equity holders of the parent company 48.2 3.6 19.9 21.5 -127.7
Minority interest 1.5 0.9 0.8 0.1 1.7
Group statement of financial position
(IFRS)
Unaudited
Jun 30 Dec 31 Jun 30
EUR million 2009 2008 2008
ASSETS
Non-current assets
Goodwill 396.1 402.4 466.7
Other intangible assets 32.5 34.5 40.2
Tangible assets 645.3 676.3 763.1
Investments in associated companies 2.2 1.9 1.6
Available for sale investments 2.0 1.9 1.9
Interest bearing receivables 0.4 0.1 1.9
Deferred tax assets 14.6 15.1 13.5
Employee benefit assets 60.6 62.5 55.0
Other non-current assets 4.1 3.7 3.8
1,157.8 1,198.4 1,347.7
Current assets
Inventory 263.8 296.7 354.8
Interest bearing receivables 12.5 2.1 25.4
Current tax assets 8.1 9.4 12.9
Trade and other current receivables 362.4 377.9 423.3
Cash and cash equivalents 84.8 67.8 42.8
731.6 753.9 859.2
Total assets 1,889.4 1,952.3 2,206.9
EQUITY AND LIABILITIES
Share capital 358.7 358.7 358.7
Premium fund 104.7 104.7 104.7
Treasury shares -46.5 -46.5 -46.5
Translation differencies -126.8 -130.5 -138.8
Fair value and other reserves -6.2 -5.0 1.3
Retained earnings 334.6 327.5 454.5
Total equity attributable to equity 618.5 608.9 733.9
holders of the parent company
Minority interest 19.0 18.4 17.8
Hybrid bond 75.0 75.0 -
Total equity 712.5 702.3 751.7
Non-current liabilities
Interest bearing liabilities 466.3 474.7 399.0
Deferred tax liabilities 37.9 29.8 41.8
Employee benefit liabilities 103.4 103.8 104.2
Provisions 56.1 58.4 57.9
Other non-current liabilities 6.5 6.5 2.3
670.2 673.2 605.2
Current liabilities
Interest bearing liabilities
- Current portion of long term loans 26.5 25.2 18.0
- Short term loans 91.9 157.3 362.8
Provisions 8.3 10.1 11.6
Current tax liabilities 5.2 9.8 13.8
Trade and other current liabilities 374.8 374.4 443.8
506.7 576.8 850.0
Total liabilities
1,176.9 1,250.0 1,455.2
Total equity and liabilities
1,889.4 1,952.3 2,206.9
Jun 30 Dec 31 Jun 30
2009 2008 2008
Net debt 487.0 587.2 709.6
Net debt to equity (gearing) 0.68 0.84 0.94
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 358.7 104.7 -46.5 -121.1 1.4 475.7 772.9 20.5 - 793.4
Dec 31, 2007
Dividend -42.2 -42.2 -42.2
Share-based 0.4 0.4 0.4
payments
Total -17.7 -0.1 21.4 3.6 0.9 4.5
comprehensive
income for
the year
Other changes -0.8 -0.8 -3.6 -4.4
Balance at 358.7 104.7 -46.5 -138.8 1.3 454.5 733.9 17.8 - 751.7
Jun 30, 2008
Balance at 358.7 104.7 -46.5 -130.5 -5.0 327.5 608.9 18.4 75.0 702.3
Dec 31, 2008
Dividend -34.1 -34.1 -34.1
Share-based 1.5 1.5 1.5
payments
Interest on -4.7 -4.7 -4.7
Hybrid Bond
Total 3.7 -1.2 45.7 48.2 1.5 49.7
comprehensive
income for
the year
Other changes -1.3 -1.3 -0.9 -2.2
Balance at 358.7 104.7 -46.5 -126.8 -6.2 334.6 618.5 19.0 75.0 712.5
Jun 30, 2009
Group cash flow statement
(IFRS)
Unaudited
H1 H1 Q2 Q2 Q1-Q4
EUR million 2009 2008 2009 2008 2008
Result for the period* 47.1 22.5 26.1 13.1 -110.2
Adjustments* 68.1 72.4 36.3 41.5 280.0
- Depreciation, amortization 48.9 46.2 27.2 23.1 245.9
and impairment*
- Gain on equity of -0.3 -0.3 -0.1 -0.3 -0.5
minorities*
- Gain/loss from disposal of 0.7 -0.5 1.2 -0.5 -4.3
assets*
- Financial expense/-income* 15.5 20.0 6.6 11.4 45.7
- Income tax expense* 11.8 4.8 6.6 2.8 -9.5
- Other adjustments, -8.5 2.2 -5.2 5.0 2.7
operational*
Change in inventory* 32.3 -14.7 29.7 7.3 38.2
Change in non-interest 3.1 -21.5 -16.1 -13.2 8.2
bearing receivables*
Change in non-interest -16.4 62.8 5.5 62.9 2.8
bearing payables*
Dividends received* 0.1 0.2 0.0 0.1 0.5
Interest received* 1.0 0.9 0.6 0.1 1.7
Interest paid* -10.0 -20.5 -1.2 -10.5 -43.2
Other financial expense and -2.6 2.7 -2.4 0.7 -2.1
income*
Taxes paid* -5.6 -3.0 -3.5 -1.5 -5.0
Net cash flows from 117.1 101.8 75.0 100.5 170.9
operating activities
Capital expenditure* -17.7 -31.3 -9.7 -17.8 -74.3
Proceeds from selling fixed 3.0 2.0 0.0 1.8 7.1
assets*
Divested subsidiaries 35.3 - 35.3 - -
Proceeds from long-term 0.4 1.2 0.0 0.2 3.3
deposits
Payment of long-term -0.7 -2.2 -0.3 -1.8 -2.5
deposits
Proceeds from short-term 2.4 5.0 0.0 0.3 33.4
deposits
Payment of short-term -12.0 -25.7 -11.3 -22.6 -31.4
deposits
Net cash flows from 10.7 -51.0 14.0 -39.9 -64.4
investing
Proceeds from long-term 353.5 156.0 173.7 27.3 489.3
borrowings
Repayment of long-term -365.4 -158.0 -181.0 -14.4 -415.9
borrowings
Proceeds from short-term 123.5 59.2 601.5
borrowings 1,450.6 2,446.3
Repayment of short-term -189.7 -1,443.8 -85.0 -630.0 -2,620.5
borrowings
Dividends paid -34.1 -42.2 -34.1 -42.2 -42.2
Hybrid bond - - - - 75.0
Net cash flows from -112.2 -37.4 -67.2 -57.8 -68.0
financing
Change in liquid assets 17.0 12.0 21.5 2.3 37.0
Cash flow based 15.6 13.4 21.8 2.8 38.5
Translation difference 1.4 -1.4 -0.3 -0.5 -1.5
Liquid assets period start 67.8 30.8 63.3 40.5 30.8
Liquid assets period end 84.8 42.8 84.8 42.8 67.8
Free cash flow (including 102.4 72.5 65.1 84.5 103.7
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
Q2 Q1 H1 Q4 Q3 Q2 Q1 Q1-Q4
EUR million 2009 2009 2009 2008 2008 2008 2008 2008
Flexibles Global 118.2 119.7 237.9 117.9 123.9 124.7 127.8 494.3
- Intersegment 0.8 0.6 1.4 -0.8 1.4 1.7 1.0 3.3
net sales
Films Global 38.3 40.0 78.3 40.9 50.8 51.6 50.5 193.8
- Intersegment 0.8 1.2 2.0 1.0 1.5 1.8 2.6 6.9
net sales
North America 152.1 128.1 280.2 148.5 132.4 137.6 113.3 531.8
- Intersegment 1.0 1.0 2.0 1.4 1.0 1.0 0.8 4.2
net sales
Rough Molded Fiber 51.0 48.3 99.3 51.5 53.1 54.1 54.7 213.4
Global
- Intersegment 0.3 0.0 0.3 0.2 0.3 0.1 0.0 0.6
net sales
Foodservice 117.8 97.1 214.9 107.0 118.7 124.6 106.4 456.7
Europe-Asia-Oceania
- Intersegment 3.0 7.4 10.4 7.9 8.1 8.2 8.6 32.8
net sales
Rigid Consumer 70.4 73.4 143.8 83.0 93.2 97.9 95.9 370.0
Goods Plastics
- Intersegment 5.7 4.3 10.0 3.8 4.7 6.4 4.9 19.8
net sales
Elimination of 11.6 14.5 26.1 13.5 17.0 19.2 17.9 67.6
intersegment net
sales
Total 547.8 506.6 548.8 572.1 590.5 548.6
1,054.4 2,260.0
EBIT
Q2 Q1 H1 Q4 Q3 Q2 Q1 Q1-Q4
EUR million 2009 2009 2009 2008 2008 2008 2008 2008
Flexibles Global (1 4.8 8.8 13.6 -16.6 3.9 5.5 6.2 -1.0
Films Global (2 -3.4 0.5 -2.9 0.1 3.7 3.6 0.5 7.9
North America (3 23.6 14.5 38.1 1.2 10.5 14.4 7.3 33.4
Rough Molded Fiber Global 4.3 3.8 8.1 -1.4 3.7 3.0 3.1 8.4
(4
Foodservice 6.4 2.4 8.8 -15.2 5.9 5.3 2.4 -1.6
Europe-Asia-Oceania (5
Rigid Consumer Goods 6.0 5.7 11.7 -117.7 -1.4 -4.8 0.5 -123.4
Plastics (6
Other activities -2.7 -0.7 -3.4 1.9 -0.1 0.0 0.0 1.8
Total (7 39.0 35.0 74.0 -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 H1 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 H1 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
2008includes restructuring charges MEUR 0.1, Q2 2008 includes
restructuring charges MEUR 6.8, total amount MEUR 165.5.
EBITDA
Q2 Q1 H1 Q4 Q3 Q2 Q1 Q1-Q4
EUR million 2009 2009 2009 2008 2008 2008 2008 2008
Flexibles Global 9.3 13.3 22.6 -11.4 9.0 10.0 10.7 18.3
Films Global -2.0 2.1 0.1 1.2 5.4 5.2 1.9 13.7
North America 29.4 19.8 49.2 6.4 14.8 18.7 11.6 51.5
Rough Molded Fiber 7.0 6.5 13.5 1.3 6.5 5.9 6.1 19.8
Global
Foodservice 11.0 7.2 18.2 -9.7 13.5 10.5 7.6 21.9
Europe-Asia-Oceania
Rigid Consumer Goods 8.5 8.1 16.6 -113.8 3.0 -0.4 5.0 -106.2
Plastics
Other activities -2.5 -0.5 -3.0 2.5 0.2 0.2 0.2 3.1
Total 60.7 56.5 117.2 -123.5 52.4 50.1 43.1 22.1
Depreciation and amortization
Q2 Q1 H1 Q4 Q3 Q2 Q1 Q1-Q4
EUR million 2009 2009 2009 2008 2008 2008 2008 2008
Flexibles Global 4.5 4.5 9.0 5.2 5.1 4.5 4.5 19.3
Films Global 1.4 1.6 3.0 1.1 1.7 1.6 1.4 5.8
North America 5.8 5.3 11.1 5.2 4.3 4.3 4.3 18.1
Rough Molded Fiber Global 2.7 2.7 5.4 2.7 2.8 2.9 3.0 11.4
Foodservice 4.6 4.8 9.4 5.5 7.6 5.2 5.2 23.5
Europe-Asia-Oceania
Rigid Consumer Goods 2.5 2.4 4.9 3.9 4.4 4.4 4.5 17.2
Plastics
Other activities 0.2 0.2 0.4 0.6 0.3 0.2 0.2 1.3
Total 21.7 21.5 43.2 24.2 26.2 23.1 23.1 96.6
Net assets allocated to the
segments (8
Q2 Q1 Q4 Q3 Q2 Q1
EUR million 2009 2009 2008 2008 2008 2008
Flexibles Global 325.8 342.2 359.7 389.2 373.1 381.4
Films Global 125.2 135.8 133.1 146.2 140.8 145.3
North America 370.8 393.9 379.2 390.2 358.9 370.0
Rough Molded Fiber Global 169.9 170.4 164.1 177.6 180.2 182.6
Foodservice Europe-Asia-Oceania 246.6 241.7 244.2 284.0 286.0 293.6
Rigid Consumer Goods Plastics 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
Q2 Q1 H1 Q4 Q3 Q2 Q1 Q1-Q4
EUR million 2009 2009 2009 2008 2008 2008 2008 2008
Flexibles Global 3.2 2.1 5.3 4.9 3.0 8.6 4.7 21.2
Films Global 0.3 0.2 0.5 0.5 0.8 1.0 2.1 4.4
North America 2.8 1.0 3.8 5.9 4.0 2.6 1.3 13.8
Rough Molded Fiber Global 0.8 1.6 2.4 4.8 3.1 1.0 0.8 9.7
Foodservice 1.4 2.3 3.7 6.3 4.2 3.2 3.2 16.9
Europe-Asia-Oceania
Rigid Consumer Goods 1.0 0.8 1.8 4.1 1.3 1.4 0.7 7.5
Plastics
Other activities 0.2 0.0 0.2 0.1 0.0 0.0 0.7 0.8
Total 9.7 8.0 17.7 26.6 16.4 17.8 13.5 74.3
RONA, % (12m roll.)
Q2 Q1 Q4 Q3 Q2 Q1
2009 2009 2008 2008 2008 2008
Flexibles Global 0.3% 0.4% -0.3% 3.7% 4.7% 5.5%
Films Global 0.7% 5.7% 5.6% 5.9% 6.6% 6.8%
North America 13.0% 10.7% 8.9% 7.8% 8.0% 8.7%
Rough Molded Fiber Global 6.1% 5.3% 4.8% 7.6% 7.6% 8.1%
Foodservice -0.2% -0.6% -0.6% 1.0% 0.3% 0.3%
Europe-Asia-Oceania
Rigid Consumer Goods -67.9% -59.3% -52.8% -27.2% -24.2% -21.1%
Plastics
Operating Cash Flow
Q2 Q1 H1 Q4 Q3 Q2 Q1 Q1-Q4
EUR million 2009 2009 2009 2008 2008 2008 2008 2008
Flexibles Global 23.4 20.0 43.4 12.7 -3.2 6.7 4.6 20.8
Films Global 8.2 1.9 10.1 13.9 0.5 7.7 2.5 24.6
North America 22.9 14.5 37.4 16.5 6.7 23.1 -3.9 42.4
Rough Molded Fiber Global 8.6 -0.6 8.0 3.6 3.9 8.7 1.2 17.4
Foodservice 7.1 -2.1 5.0 3.6 7.6 14.5 1.3 27.0
Europe-Asia-Oceania
Rigid Consumer Goods 11.1 0.7 11.8 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
H1 H1 Q1-Q4
EUR million 2009 2008 2008
Equity per share (EUR) 6.91 7.31 6.81
ROE, % (12m roll.) -11.7 -5.3 -14.8
ROI, % (12m roll.) -3.2 0.2 -4.8
Personnel
13,712 15,373 14,644
Result before taxes -88.2 -40.1 -119.7
(12m roll.)
Depreciation 40.3 42.5 89.2
Amortization of other 2.9 3.7 7.4
intangible assets
Share capital and shareholders
At the end of June 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 22,058 (22,120) registered shareholders at the end of the
reporting period. Foreign ownership including nominee registered
shares accounted for 26.4% (22.8%).
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 June 2009, the Company's market capitalization was EUR
775.3 million (EUR 573.9 million) and EUR 738.1 million (EUR 546.3
million) excluding Company's own shares. With a closing price of
EUR 7.35 (EUR 5.44) the share price increased by 67% (-33%) from the
beginning of the year, while the OMX Helsinki Cap PI Index increased
by 9% (-20%) and the OMX Helsinki Materials PI Index decreased
by 7% (-24%). During the reporting period the volume weighted average
price for the Company's share was EUR 6.12 (EUR 6.97). The highest
price paid was EUR 8.19 on May 7, 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 244.3 million (EUR 397.3 million). The trading
volume of 39.9 million (57.0 million) shares equaled an average daily
turnover of EUR 2.0 million (EUR 3.2 million) or, correspondingly
327,004 (455,689) shares.
In total, turnover of the Company's 2003 A, B and C as well as 2006 A
option rights was EUR 218,077 corresponding to a trading volume of
383,637.
Contingent liabilities
Jun 30 Dec 31 Jun 30
2009 2008 2008
EUR million
Mortgages 14.5 14.5 14.6
Guarantee obligations 3.2 2.9 1.9
Lease payments 49.1 49.8 59.7
Capital expenditure commitments 24.4 7.3 30.7
Nominal values of derivative instruments
Jun 30 Dec 31 Jun 30
2009 2008 2008
EUR million
Currency forwards, transaction risk hedges 33 49 51
Currency forwards, translation risk hedges 24 34 47
Currency swaps, financing hedges 104 105 137
Currency options 1 - -
Interest rate swaps 174 160 158
Interest rate options 8 7 10
Electricity forwards - 6 -
The following EUR rates have been applied to GBP, INR, AUD and USD
H1/09 H1/08
Income statement, average: GBP 1 = 1.118 1.290
INR 1 = 0.015 0.016
AUD 1 = 0.532 0.604
USD 1 = 0.751 0.653
Q2/09 Q2/08
Balance sheet, month end: GBP 1 = 1.174 1.262
INR 1 = 0.015 0.015
AUD 1 = 0.576 0.611
USD 1 = 0.708 0.634
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)
