HUHTAMÄKI OYJ STOCK EXCHANGE RELEASE JULY 19, 2007 AT 8:00
Continued solid performance in Americas and Global Flexibles - as
anticipated Group earnings down due to significantly lower royalty
income in corporate net
* In Europe robust sales growth in Flexibles, Molded Fiber and
Foodservice; decline in profitability
* In Americas strong result despite adverse currency translations
impact supported by diligent price management and operational
efficiency
* In Oceania improved performance and in Asia favorable volume
development
* Group EBIT reflects reduction of corporate net due to lower royalty
income particularly in the second quarter
Key figures
Q2 Q2 H1 H1
EUR million 2007 2006 2007 2006 2006
Net sales 606.1 594.1 1,170.8 1,156.2 2,275.6
EBIT before corporate items, 40.2 43.6 78.0 77.5 138.1
underlying
Corporate net -4.5 9.6 -4.6 16.6 19.5
EBIT, underlying* 35.7 53.2 73.4 94.1 157.6
EBIT margin %, underlying 5.9 9.0 6.3 8.1 6.9
EBIT, reported 35.7 49.8 73.4 87.0 145.5
EPS, reported 0.19 0.33 0.43 0.57 0.94
* The underlying EBIT excludes restructuring charges
Business review
In the second quarter, market demand for consumer packaging continued
stable in the mature markets and healthy in the emerging markets.
While overall demand was on a similar level to last year, the
increasing raw material prices require continuous efforts to pass the
cost pressure upstream as well as improve productivity. The prices
for the main raw materials remained on a high level during the
quarter, showing a clear increase compared to the average level of
the previous year.
Price/mix changes had a positive impact (+3%), while volume
development was moderate. These are not fully reflected in reported
net sales of EUR 606.1 million (+2%) due to unfavorable movement in
currency translations (-2%).
For the first half of the year, net sales was EUR 1,170.8 million
(+1%). The geographical distribution of sales was the following:
Europe 53% (52%), Americas 30% (32%) and Asia-Oceania-Africa 17%
(16%).
Europe
Q2 Q2 H1 H1
EUR million 2007 2006 2007 2006 2006
Net sales 320.3 311.2 625.2 603.8 1,188.7
EBIT, underlying* 14.7 19.8 28.3 33.8 52.1
EBIT margin %, underlying 4.6 6.4 4.5 5.6 4.4
EBIT, reported 14.7 16.4 28.3 26.7 40.3
RONA % underlying (12m roll.) - - 5.8 8.2 6.7
In Europe, sales growth within Consumer Goods segment was robust in
the Flexibles and Molded Fiber businesses in the second quarter,
while the Films business was impacted by the implementation of the
new enterprise resource planning (ERP) platform. The sales
performance in the Rigid business was varied with Germany and Eastern
Europe at the top end, while the UK was at the low end. Within
Foodservice segment, healthy sales growth was driven by success in
Eastern Europe. For the quarter, the reported net sales was EUR 320.3
million (+3%) with a positive impact from price/mix changes (+3%) and
a slight decline in volume (-1%).
The region's underlying EBIT was EUR 14.7 million (-26%),
corresponding to an EBIT margin of 4.6% (6.4%). This reflects margin
pressure experienced by continued increase in raw material costs as
well as temporarily weaker profitability of the Films business. The
reported EBIT was EUR 14.7 million. In the previous year the reported
EBIT of EUR 16.4 million included restructuring charges of EUR 3.5
million.
For the first half of the year, net sales was EUR 625.2 million
(+4%). The underlying EBIT of EUR 28.3 million (-16%) corresponded to
an EBIT margin of 4.5% (5.6%). The reported EBIT was 28.3 million
(EUR 26.7 million).
Americas
Q2 Q2 H1 H1
EUR million 2007 2006 2007 2006 2006
Net sales 185.2 191.1 348.9 367.4 711.5
EBIT, underlying* 20.2 19.7 38.7 33.4 61.3
EBIT margin %, underlying 10.9 10.3 11.1 9.1 8.6
EBIT, reported 20.2 19.7 38.7 33.4 61.3
RONA % underlying (12m roll.) - - 11.8 10.9 11.0
In the Americas, within Foodservice segment sales in Retail
stabilized at a good level in the second quarter. The new product
launches received a positive market reaction. Within Consumer Goods
segment, sales in the Frozen desserts category accelerated during the
quarter after a slower start to the year, while the reverse took
place in the Flexibles business. In South America, sales growth
picked up after a stable beginning of the year. For the quarter, the
positive impact from price/mix changes (+4%) more than compensated
for the slight decline in volume (-1%). The reported net sales of EUR
185.2 million (-3%) was depressed by currency translations (-6%).
The region's underlying EBIT was EUR 20.2 million (+3%),
corresponding to an EBIT margin of 10.9% (10.3%). This reflects
diligent price management and continued improvement in operational
efficiency.
For the first half of the year, net sales was EUR 348.9 million
(-5%). The underlying EBIT of EUR 38.7 million (+16%) corresponded to
an EBIT margin of 11.1% (9.1%).
Asia-Oceania-Africa
Q2 Q2 H1 H1
EUR million 2007 2006 2007 2006 2006
Net sales 100.6 91.8 196.7 185.0 375.4
EBIT, underlying* 5.3 4.1 11.0 10.3 24.7
EBIT margin %, underlying 5.3 4.5 5.6 5.6 6.6
EBIT, reported 5.3 4.1 11.0 10.3 24.4
RONA % underlying (12m roll.) - - 7.9 7.7 8.1
In Asia-Oceania-Africa, sales performance within Consumer Goods and
Foodservice segments was robust during the second quarter. In
Oceania, sales growth was driven by the Rigid business where the
improvement seen already in the beginning of the year accelerated
during the second quarter. In Asia, volume growth remained favorable
driven by the Flexibles businesses in India and Thailand. For the
quarter, volume growth continued strong (+7%) and there was a
positive impact from price/mix changes (+2%). The reported net sales
of EUR 100.6 million (+10%) was boosted further by currency
translations (+1%).
The region's underlying EBIT was EUR 5.3 million (+29%),
corresponding to an EBIT margin of 5.3% (4.5%). This reflects margin
improvement in Oceania mitigated by start-up costs associated with
investments in new capacity.
For the first half of the year, net sales was EUR 196.7 million
(+6%). The underlying EBIT of EUR 11.0 million (+7%) corresponded to
an EBIT margin of 5.6% (unchanged).
Financial review
In the second quarter, the underlying EBIT before corporate items was
EUR 40.2 million (-8%), corresponding to an EBIT margin of 6.6%
(7.3%). Corporate net was EUR -4.5 million (EUR 9.6 million)
reflecting the significant reduction in royalty income as well as
higher corporate expenses.
The underlying Group EBIT was EUR 35.7 million (EUR 53.2 million),
corresponding to an EBIT margin of 5.9% (9.0%). The reported EBIT was
EUR 35.7 million. In the previous year the reported EBIT of EUR 49.8
million included restructuring charges of EUR 3.4 million.
At EUR -11.0 million (EUR -10.3 million), the increase in net
financial items was mainly due to higher interest rates and debt
level. The reported profit for the period was EUR 19.4 million (EUR
33.3 million), and EPS was EUR 0.19 (EUR 0.33).
For the first half of the year, the Group's underlying EBIT was EUR
73.4 million (-22%), corresponding to an EBIT margin of 6.3% (8.1%).
This reflects mainly a EUR 21.2 million reduction in corporate net.
The reported EBIT was 73.4 million. In the previous year the reported
EBIT of EUR 87.0 million included restructuring charges of EUR 7.1
million. Net financial items were EUR 20.2 million (EUR 18.4
million). The income tax expense was EUR 9.6 million (EUR 11.3
million), corresponding to a tax rate of 18.0% (16.4%). The reported
profit for the period was EUR 43.8 million (EUR 57.5 million), and
EPS was EUR 0.43 (EUR 0.57).
The average number of outstanding shares used in the EPS calculation
was 100,426,461 (98,810,850) excluding 5,061,089 (unchanged)
company's own shares.
On a rolling 12-month basis, the return on investment (ROI) was 9.1%
(9.5%) and return on equity (ROE) was 9.6% (11.2%).
Balance sheet and cash flow
In the end of the second quarter, free cash flow of EUR -6.3 million
(EUR 18.8 million) was impacted by an elevated level of working
capital. In addition, capital expenditure increased to EUR 31.5
million (EUR 27.3 million). For the first half of the year, free cash
flow was EUR -42.7 million (17.7 million) with capital expenditure of
EUR 57.1 million (EUR 46.0 million).
Net debt at the end of the second quarter was EUR 796.7 million (EUR
692.4 million), corresponding to a gearing ratio of 0.92 (0.85).
Major change programs and investments
Key priorities for this year include progress on earlier announced
change programs and development of growth platforms. During the
second quarter, it was decided that a new flexibles packaging
facility will be built close to the existing facility in Bangkok,
Thailand. The aim is to capture growth opportunities by supplying the
local and multinational food and consumer goods industry with
advanced flexibles packaging. According to the preliminary schedule
production at the new site will commence around mid 2008. The value
of the investment is approximately EUR 17 million.
With reference to the earlier announced programs, the exit from the
rigid packaging site in Göttingen, Germany, took place during the
quarter. The capacity expansion in Foodservice hot beverage cups in
several European units progressed and will be completed by year-end
2007. The new capacity added to the existing flexibles packaging
facility in Malvern, USA, is scheduled to be operational during the
second half of 2007. The relocation from Hong Kong, China, to the new
rigid packaging facility in Guangzhou, China, is expected to be
completed during the first quarter of 2008.
Additionally, reduction of working capital and targeted allocation of
capital expenditure will have a high priority during the second half
of the year.
Personnel
The Group had 15,129 (15,004) employees on June 30, 2007.
Changes in management
Timo Salonen was appointed as Chief Financial Officer with effect
from July 1, 2007. He succeeded Sakari Ahdekivi, who joins another
company.
Short-term risks and uncertainties
Volatile raw material and energy prices as well as movements in
currency translations are considered to be significant short-term
business risks and uncertainties in the Group's operations.
Outlook for 2007
A clear improvement is expected in the operational result, which
should largely balance out the significant reduction in corporate net
due to lower royalty income. The underlying EBIT for the full-year is
estimated to be close to the level of 2006. Increase in net financial
items and higher tax rate will have an impact on earnings.
Capital expenditure is expected to be somewhat lower than in 2006
with emphasis on organic growth investments.
This interim report is unaudited.
Espoo, July 18, 2007
Huhtamäki Oyj
Board of Directors
The Q3 2007 interim report will be published on October 25, 2007.
For further information, please contact:
Mr. Heikki Takanen, 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
Ms. Taina Erkkilä, Group Vice President Communications, tel.
+358-10-686 7876 or mobile +358-50-577 4059
At 11:00 Finnish time a conference for investors, analysts and media
will be held in the head office, address Länsituulentie 7, Espoo. CEO
Heikki Takanen and CFO Timo Salonen will present the results.
At 15:00 Finnish / 13:00 London / 08:00 New York time a conference
call for investors and analysts will start with a management
presentation, followed by a question and answer session. Should you
wish to participate, please dial one of the following numbers:
* Number for participants from Finland: 0923 193 019
* Number for participants outside of Finland: +44 (0) 1452 542 300
* Conference ID: 6206111
All materials will be available on our website 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.
***************************
Group Income statement
(IFRS)
Unaudited
H1 H1 Q2 Q2 Q1-Q4
EUR million 2007 2006 2007 2006 2006
Net sales 1,170.8 1,156.2 606.1 594.1 2,275.6
Cost of goods sold -989.8 -981.1 -510.7 -499.2 -1,946.4
Gross profit 181.0 175.1 95.4 94.9 329.2
Other operating income 13.4 29.6 3.4 13.5 56.2
Sales and marketing -41.4 -41.0 -21.4 -21.0 -82.8
Research and development -9.6 -10.3 -4.8 -4.9 -19.3
Administration costs -61.6 -63.1 -31.5 -31.6 -126.5
Other operating expenses -8.4 -3.3 -5.4 -1.1 -11.3
-107.6 -88.1 -59.7 -45.1 -183.7
Earnings before interest 73.4 87.0 35.7 49.8 145.5
and taxes
Financial income 4.9 6.6 3.2 2.8 11.0
Financial expenses -25.1 -25.0 -14.3 -13.3 -47.8
Income of associated 0.2 0.2 0.1 0.2 0.5
companies
Profit before taxes 53.4 68.8 24.7 39.5 109.2
Income tax expense -9.6 -11.3 -5.3 -6.2 -12.6
Profit for the period 43.8 57.5 19.4 33.3 96.6
Attributable to:
Equity holders of the 42.8 56.2 19.0 32.9 93.3
parent company
Minority interest 1.0 1.3 0.4 0.4 3.3
Basic earnings per share 0.43 0.57 0.19 0.33 0.94
(EUR)
for the shareholders of
parent company
Diluted earnings per share 0.42 0.56 0.18 0.33 0.93
(EUR)
for the shareholders of
parent company
Group balance sheet (IFRS)
Unaudited
Jun 30 Dec 31 Jun 30
EUR million 2007 2006 2006
ASSETS
Non-current assets
Goodwill 523.4 525.2 528.8
Other intangible assets 35.6 35.1 7.7
Tangible assets 853.1 840.1 808.5
Investments in associated companies 1.7 1.5 1.7
Available for sale investments 1.7 1.8 1.9
Interest bearing receivables 3.0 6.6 7.7
Deferred tax assets 17.5 14.1 14.2
Employee benefit assets 63.4 64.0 64.7
Other non-current assets 5.1 5.0 5.1
1,504.5 1,493.4 1,440.3
Current assets
Inventory 374.9 341.8 327.2
Interest bearing receivables 8.4 0.5 14.6
Current tax assets 11.3 9.9 6.7
Trade and other current receivables 443.3 400.7 428.4
Cash and cash equivalents 25.9 22.3 34.7
863.8 775.2 811.6
Total assets 2,368.3 2,268.6 2,251.9
EQUITY AND LIABILITIES
Share capital 358.7 358.7 354.3
Premium fund 104.7 104.7 98.4
Treasury shares -46.5 -46.5 -46.5
Translation differencies -106.7 -106.7 -102.4
Fair value and other reserves 2.0 2.1 4.3
Retained earnings 533.5 528.8 492.5
Total equity attributable to equity 845.6 841.1 800.5
holders of the parent company
Minority interest 20.4 19.3 17.3
Total equity 866.0 860.4 817.8
Non-current liabilities
Interest bearing liabilities 370.0 314.7 369.6
Deferred tax liabilities 63.6 62.9 78.7
Employee benefit liabilities 111.7 111.4 113.1
Provisions 50.9 46.8 52.0
Other non-current liabilities 3.9 3.9 4.2
600.1 539.7 617.6
Current liabilities
Interest bearing liabilities
- Current portion of long term loans 42.7 41.7 16.5
- Short term loans 421.3 383.7 363.2
Provisions 7.4 11.9 15.9
Current tax liabilities 19.4 19.7 9.5
Trade and other current liabilities 411.4 411.5 411.4
902.2 868.5 816.5
Total liabilities 1,502.3 1,408.2 1,434.1
Total equity and liabilities 2,368.3 2,268.6 2,251.9
Jun 30 Dec 31 Jun 30
2007 2006 2006
Net debt 796.7 710.7 692.4
Net debt to equity (gearing) 0.92 0.83 0.85
Changes in
shareholders'
equity
Unaudited
Attributable to equity holders of
the parent company
EUR Sha- Sha- Trea- Tran-slat- Fair Ret- Total Minority Total
milllion re re sury ion value Ain- Equi- inte-
capi- issue sha- diff. and ed ty rest
tal premium res oth- earn-
er ings
res-
erv-
es
Balance at 353.0 96.8 -46.5 -76.3 -0.2 475.2 802.0 18.4 820.4
Dec 31,
2005
Cash flow
hedges
Hedge result 4.2 4.2 4.2
deferred to
equity
Hedge
result
recognized
in 2.0 2.0 2.0
income
statement
Translation -26.1 -26.1 -2.4 -28.5
differences
Deferred -1.9 -1.9 -1.9
tax in
equity
Other -2.2 -2.2 -2.2
changes
Net income
recognized
directly in -26.1 4.3 -2.2 -24.0 -2.4 -26.4
equity
Net income 56.2 56.2 1.3 57.5
for the
period
Total
recognized
income and
expense for -26.1 4.3 54.0 32.2 -1.1 31.1
the period
Dividend -37.5 -37.5 -37.5
Share-based 0.8 0.8 0.8
payments
Stock 1.3 1.6 0.2 3.1 3.1
options
exercised
Balance at 354.3 98.4 -46.5 -102.4 4.3 492.5 800.5 17.3 817.8
Jun 30,
2006
Balance at 358.7 104.7 -46.5 -106.7 2.1 528.8 841.1 19.3 860.4
Dec 31,
2006
Cash flow
hedges
Hedge result 1.4 1.4 1.4
deferred to
equity
Hedge
result
recognized
in income -1.4 -1.4 -1.4
statement
Translation 0.0 0.0 0.1 0.1
differences
Deferred -0.1 -0.1 -0.1
tax in
equity
Other 3.3 3.3 3.3
changes
Net income
recognized
directly in 0.0 -0.1 3.3 3.2 0.1 3.3
equity
Net income 42.8 42.8 1.0 43.8
for the
period
Total
recognized
income and
expense for 0.0 -0.1 46.2 46.1 1.1 47.1
the period
Dividend -42.2 -42.2 -42.2
Share-based 0.7 0.7 0.7
payments
Stock 0.0 0.0 0.0 0.0 0.0
options
exercised
Balance at 358.7 104.7 -46.5 -106.7 2.0 533.5 845.6 20.4 866.0
Jun 30,
2007
Group cash flow
statement (IFRS)
Unaudited
H1 H1 Q2 Q2 Q1-Q4
EUR million 2007 2006 2007 2006 2006
Profit for the period* 43.8 57.5 19.4 33.3 96.6
Adjustments* 74.2 69.9 40.6 33.5 126.9
- Depreciation and 49.1 53.9 24.6 23.4 101.5
amortization*
- Gain on equity of -0.2 -0.2 -0.1 -0.2 -0.5
minorities*
- Gain/loss from 0.3 -0.5 0.1 -0.2 0.1
disposal of assets*
- Financial 20.3 18.4 11.2 10.5 36.8
expense/-income*
- Income tax expense* 9.6 11.3 5.2 6.1 12.6
- Other adjustments, -4.9 -13.0 -0.4 -6.1 -23.6
operational*
Change in inventory* -31.0 -27.6 3.7 -4.9 -44.1
Change in non-interest -48.5 -58.5 -28.9 -57.2 -9.7
bearing
receivables*
Change in non-interest 1.1 44.4 3.0 53.0 19.3
bearing payables*
Dividends received* 0.3 0.3 0.2 0.0 1.0
Interest received* 0.7 2.0 0.1 0.9 2.7
Interest paid* -20.6 -17.2 -8.4 -6.9 -38.0
Other financial expense 0.4 -0.5 0.6 -2.0 0.7
and
income*
Taxes paid* -7.6 -9.2 -5.6 -3.7 -16.3
Net cash flows from 12.8 61.1 24.7 46.0 139.1
operating activities
Capital expenditure* -57,1 -46.0 -31.5 -27.3 -154.0
Proceeds from selling 1,6 2.6 0.5 0.1 6.5
fixed
assets*
Divested subsidiaries - 23.3 - 10.5 22.9
Proceeds from long-term 0,5 0.0 0.0 0.0 1.6
deposits
Payment of long-term -1,5 -3.3 -1.5 -0.6 -3.9
deposits
Proceeds from short-term 0,5 8.1 0.0 2.7 24.8
deposits
Payment of short-term -3,9 -5.5 -3.8 0.0 -8.1
deposits
Net cash flows from -59,9 -20.8 -36.3 -14.6 -110.2
investing
Proceeds from long-term 240.2 230.1 75.4 23.1 409.0
borrowings
Repayment of long-term -187.3 -262.6 -18.3 -41.5 -495.5
borrowings
Proceeds from short-term 1,568.6 1,301.3 876.8 530.9 2,612.7
borrowings
Repayment of short-term -1,528.7 -1,274.1 -879.3 -518.5 -2,543.6
borrowings
Dividends paid -42.2 -37.5 -42.2 -37.5 -37.5
Proceeds from stock - 3.1 - 3.1 13.5
option exercises
Net cash flows from 50.6 -39.7 12.4 -40.4 -41.4
financing
Change in liquid assets 3.6 -2.9 0.7 -11.5 -15.3
Cash flow based 3.5 0.6 0.8 -9.0 -12.5
Translation difference 0.1 -3.5 -0.1 -2.5 -2.8
Liquid assets period 22.3 37.6 25.2 46.2 37.6
start
Liquid assets period end 25.9 34.7 25.9 34.7 22.3
Free cash flow (including -42.7 17.7 -6.3 18.8 -8.4
figures marked with *)
NOTES FOR THE INTERIM REPORT
This interim report has been prepared in accordance with IAS 34
Interim Financial Reporting. 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
2006.
Interim report is unaudited.
Changes in accounting principles
The Group has adopted the following IFRS standards and
interpretations considered applicable to Huhtamaki, with effect from
January 1, 2007:
IAS 1 Presentation of Financial statements: Capital disclosures: The
Amendment to IAS 1 requires information about capital and capital
management during the accounting period.
IFRIC 8 Scope of IFRS 2 Share-Based Payments: The interpretation
applies to share-based payments, where the received compensation is
below the fair value of granted equity instrument.
IFRIC 9 Reassessment of Embedded Derivatives: The interpretation
requires the determination of whether the arrangement contains
embedded derivatives, which have to be reported separately as
derivative instruments.
IFRIC 10 Interim Financial reporting and Impairment: IFRIC 10 denies
to reverse the impairment charge reported in interim report at later
closing dates.
The effect of these newly adopted standards has not had a material
impact on the reported results or disclosures.
In 2006 in the Americas segment the price reduction type item has
been transferred from sales and marketing costs to amend net sales.
In the business segment the whole item fell on the Foodservice
segment. The effect of this restatement on net sales was EUR -3.9
million in Q1, EUR -6.7 million in Q2 and EUR -3.2 million in Q3 of
2006. The restatement did not have material impact on net sales based
key ratios.
Regions
Net sales
Q2 Q1 H1 Q4 Q3 Q2 Q1 Q1-Q4
EUR million 2007 2007 2007 2006 2006 2006 2006 2006
Europe 320.3 304.9 625.2 288.4 296.5 311.2 292.6 1,188.7
Americas 185.2 163.7 348.9 170.3 173.8 191.1 176.3 711.5
Asia-Oceania-Africa 100.6 96.1 196.7 98.5 91.9 91.8 93.2 375.4
Total 606.1 564.7 1,170.8 557.2 562.2 594.1 562.1 2,275.6
Interregional sales are not significant.
EBIT
Q2 Q1 H1 Q4 Q3 Q2 Q1 Q1-Q4
EUR million 2007 2007 2007 2006 2006 2006 2006 2006
Europe 14.7 13.6 28.3 0.4 13.2 16.4 10.2 40.3
Americas 20.2 18.5 38.7 13.9 14.0 19.7 13.7 61.3
Asia-Oceania-Africa 5.3 5.7 11.0 6.6 7.5 4.1 6.3 24.4
EBIT before 40.2 37.8 78.0 20.9 34.7 40.2 30.2 126.0
corporate items
Corporate net -4.5 -0.1 -4.6 -0.5 3.4 9.6 7.0 19.5
Total 35.7 37.7 73.4 20.4 38.1 49.8 37.2 145.5
Underlying EBIT
Q2 Q1 H1 Q4 Q3 Q2 Q1 Q1-Q4
EUR million 2007 2007 2007 2006 2006 2006 2006 2006
Europe 14.7 13.6 28.3 3.4 14.9 19.8 13.9 52.1
Americas 20.2 18.5 38.7 13.9 14.0 19.7 13.7 61.3
Asia-Oceania-Africa 5.3 5.7 11.0 6.9 7.5 4.1 6.3 24.7
EBIT before 40.2 37.8 78.0 24.2 36.4 43.6 33.9 138.1
corporate items
Corporate net -4.5 -0.1 -4.6 -0.5 3.4 9.6 7.0 19.5
Total 35.7 37.7 73.4 23.7 39.8 53.2 40.9 157.6
Net assets and RONA % (12m
roll.)
Q2 Q1 Q4 Q3 Q2 Q1
EUR million 2007 2007 2006 2006 2006 2006
Europe 803.8 789.7 782.7 779.4 778.6 784.8
RONA-% underlying 5.8 % 6.6% 6.7% 7.8% 8.2% 8.7%
RONA-% reported 5.2 % 5.5% 5.1% 6.1% 5.5% 0.1%
Americas 565.0 566.2 558.1 564.5 565.9 573.4
RONA-% underlying 11.8 % 11.7% 11.0% 11.0% 10.9% 9.7%
RONA-% reported 11.8 % 11.7% 11.0% 11.0% 10.9% 4.3%
Asia-Oceania-Africa 319.0 303.4 301.0 295.8 292.2 293.9
RONA-% underlying 7.9 % 7.9% 8.1% 8.1% 7.7% 8.4%
RONA-% reported 7.9 % 7.9% 8.1% 6.1% 5.6% 5.8%
Business
segments
Net sales
Q2 Q1 H1 Q4 Q3 Q2 Q1 Q1-Q4
EUR million 2007 2007 2007 2006 2006 2006 2006 2006
Consumer 390.2 389.2 779.4 359.0 368.2 379.6 388.5 1,495.3
Goods
Foodservice 215.9 175.5 391.4 198.2 194.0 214.5 173.6 780.3
Total 606.1 564.7 1,170.8 557.2 562.2 594.1 562.1 2,275.6
Intersegment sales are not significant.
EBIT
Q2 Q1 H1 Q4 Q3 Q2 Q1 Q1-Q4
EUR million 2007 2007 2007 2006 2006 2006 2006 2006
Consumer 26.8 26.5 53.3 11.6 23.7 21.1 18.1 74.7
Goods
Foodservice 13.4 11.3 24.7 9.3 11.0 19.1 12.1 51.3
EBIT before 40.2 37.8 78.0 20.9 34.7 40.2 30.2 126.0
corporate
items
Corporate -4.5 -0.1 -4.6 -0.5 3.4 9.6 7.0 19.5
net
Total 35.7 37.7 73.4 20.4 38.1 49.8 37.2 145.5
Underlying
EBIT
Q2 Q1 H1 Q4 Q3 Q2 Q1 Q1-Q4
EUR million 2007 2007 2007 2006 2006 2006 2006 2006
Consumer 26.8 26.5 53.3 14.5 25.2 23.5 20.9 84.1
Goods
Foodservice 13.4 11.3 24.7 9.7 11.2 20.1 13.0 54.0
EBIT before 40.2 37.8 78.0 24.2 36.4 43.6 33.9 138.1
corporate
items
Corporate -4.5 -0.1 -4.6 -0.5 3.4 9.6 7.0 19.5
net
Total 35.7 37.7 73.4 23.7 39.8 53.2 40.9 157.6
Other information
H1 H1 Q1-Q4
EUR million 2007 2006 2006
Equity per share (EUR) 8.42 8.07 8.37
ROE, % 9.6 11.2 11.7
ROI, % 9.1 9.5 9.4
Capital expenditure 57.1 46.0 154.0
Personnel 15,129 15,004 14,792
Profit before taxes 94.0 107.9 109.2
(12m roll.)
Depreciation 46.2 46.1 92.6
Amortization of other intangible assets 2.8 1.4 2.7
Share capital and shareholders
At the end of the review period, the company's registered share
capital was EUR 358,657,670.00 (354,306,472.40) corresponding to a
total number of outstanding shares of 105,487,550 (104,207,786). This
includes 5,061,089 (unchanged) company's own shares, which represent
4.8% of the total number of shares. The net figure of outstanding
shares was 100,426,461 (99,146,697).
At the end of June there were 21,025 (20,795) registered
shareholders. Nominee registered shares including foreign ownership
accounted for 27.3% (23.0%).
Share developments
Huhtamaki's share is quoted on the Helsinki Stock Exchange on the
Nordic Large Cap list under the Materials sector. At the end of June,
the company's market capitalization was EUR 1,310.2 million (EUR
1,447.4 million) and EUR 1,247.3 million (EUR 1,377.1 million)
excluding company's own shares. With a closing price of EUR 12.42
(EUR 13.89) the share price decreased by 17% (0%) from the beginning
of the year, while the OMX Helsinki CAP PI Index increased by 13%
(+6%). In January-June, the volume weighted average price for the
Huhtamaki share was EUR 13.14 (EUR 14.79). The highest price paid was
EUR 15.89 on January 15, 2007 and the lowest price paid was EUR 12.01
on March 14, 2007.
During the first six months, the cumulative value of the Huhtamaki
share turnover was EUR 703.8 million (EUR 587.2 million). The trading
volume of 53.6 million (39.7 million) shares equalled an average
daily turnover of EUR 5.7 million (EUR 4.7 million) or,
correspondingly 432,116 (320,005) shares.
In total, turnover of the company's 2003 A, B and C option rights was
EUR 2.7 million, corresponding to a trading volume of 586,355.
Contingent liabilities
Jun 30 Dec 31 Jun 30
2007 2006 2006
EUR million
Mortgages 14.5 14.7 14.8
Guarantee obligations 4.8 3.8 3.8
Lease payments 57.3 59.3 63.1
Capital expenditure commitments 45.0 27.4 34.6
Nominal values of derivative instruments
Jun 30 Dec 31 Jun 30
2007 2006 2006
EUR million
Currency forwards, 58 54 79
transaction risk hedges
Currency forwards, 110 112 63
translation risk hedges
Currency swaps, 138 107 188
financing hedges
Currency options 2 1 0
Interest rate swaps 131 139 224
Electricity forwards - 2 -
The following EUR rates have been applied to GBP, INR,
AUD and USD
Q2/07 Q2/06
Income statement, average: GBP 1 = 1.482 1.455
INR 1 = 0.018 0.018
AUD 1 = 0.608 0.604
USD 1 = 0.752 0.813
Q2/07 Q2/06
Balance sheet, month end: GBP 1 = 1.484 1.445
INR 1 = 0.018 0.017
AUD 1 = 0.630 0.584
USD 1 = 0.740 0.787
Definitions for key indicators
Earnings per share = Profit before taxes - minority interest - taxes
/ Average number of shares outstanding
Earnings per share (diluted) = Diluted profit before taxes -
minority interest - taxes / Average fully diluted number of shares
outstanding
Net debt to equity (gearing) = Interest bearing net debt / Equity +
minority interest (average)
RONA-% = 100 x Earnings before interest and taxes (12 m roll.) / Net
assets (12 m roll.)
Shareholders' equity per share = Equity / Issue-adjusted number of
shares at period end
Return on equity (ROE) = 100 x (Profit for the period) / Equity +
minority interest (average)
Return on investment (ROI) = 100 x (Profit before taxes + interest
expenses + net other financial expenses) / Balance sheet total -
Interest-free liabilities (average)
