Hartmann Corporate presentation 1 Hartmann at a glance Global - - PowerPoint PPT Presentation

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Hartmann Corporate presentation 1 Hartmann at a glance Global - - PowerPoint PPT Presentation

Sep 23, 2022 203 likes •365 views

Hartmann Corporate presentation 1 Hartmann at a glance Global leader in moulded-fibre egg packaging 10 factories and 2,000 employees South American leader in fruit packaging Expected revenue of DKK 2.1-2.2 billion in 2016 Among largest

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Hartmann

Corporate presentation

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Production Production and sales Global leader in moulded-fibre egg packaging South American leader in fruit packaging Among largest machinery manufacturers 10 factories and 2,000 employees Expected revenue of DKK 2.1-2.2 billion in 2016 Expected profit margin of 11-12.5% in 2016 Sales

Hartmann at a glance

12 x 4 x 4 x 1 x 5 x 5 x

Revenue 2015 (DKKm) 1248 886 Europe (58%) Americas (42%)

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Attractive market drivers

  • More people
  • Growing middle class
  • Eating more eggs and fruit
  • More people in urban areas
  • Increasing egg and fruit sales at

(structured) retail outlets – in packaging

  • More people concerned with sustainability
  • With the means to choose moulded-fibre
  • ver plastic packaging

Sustainability Urbanisation Population growth

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Well-diversified customer base

Europe North America South America Global Retail, eggs X X X Transport, eggs X X Transport, fruit X Technology X Producer Packer Retail chain Moulded-fibre producer Retail, eggs X X X Transport, eggs X X Transport, fruit X X Technology X

Well-diversified customer base

Several large customers Many small customers Geographically diverse Trending towards fewer and larger customers

Across customer segments Across geographic markets

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Hartmann = shareholder value

Shareholder value

Outperforming peer share indexes over longer term Attractive dividend policy and payout ratio

Strong market positions

Global leader leveraging strong strategic assets Favourable macro trends supporting positive development

Classic industrial approach

Efficiency enhancements Optimising utilisation

Growing profitably

Proven track-record of increasing revenue and profitability Disciplined expansion – organic and potentially acquisitive

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Creating shareholder value

69% 30% 1%

Thornico Holding Other Own shares

  • Outperforming peer indexes on Nasdaq Copenhagen over

longer term

  • Total share return (incl. dividends) since 2011: 373%
  • Hartmann moved to the Mid Cap index in early 2016

Share, Q3 2016

Change (LTM) +29% Market cap DKK 2.2bn Shares 7,015,090 Shareholders ~2,100 Index Mid Cap

50 100 150 200 250 300 350 January 2011 January 2012 January 2013 January 2014 January 2015 January 2016 Hartmann Small Cap (indexed) Mid Cap (indexed) DKK

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Our potential

Use and develop our proven technological competencies Tailor our versatile product portfolio across markets Optimise and expand our well-established production platform Exploit and expand our strong market positions and assess growth opportunities

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Our initiatives

Potential Initiative Timing

Addition of South American activities

  • Strengthened global position via presence

in attractive South American markets Expansion of production network

  • 2 additional factories in South America and

1 factory in the U.S. to meet demand Expansion of capacity in Europe

  • Increased production capacity and

utilisation of existing infrastructure Efficiency measures in Europe

  • Closure of German factory and overall

streamlining of sales and production platforms Intensified marketing of premium products

  • Driving the move from standard to premium

products to the benefit of customers and Hartmann Sales of technology and assessment of opportunities

  • Assignments on Hartmann projects and with customers

as well as ongoing assessment of new markets 2015 2015-2017 2015-2017 2015-2016

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Q3 2016 highlights

Decline in volumes partly offset by efficiency gains

  • Lower revenue and projects impacted profitability
  • Ongoing expansion in all markets

Improved efficiency on unchanged volumes in Europe

  • Strong profitability from efficiency and lower costs
  • Full utilisation and acceleration of capacity expansion

External effects impacted volumes in Americas

  • Volatility in North America following 2015 bird flu
  • Macroeconomic developments in South America

affected fruit exports and packaging volumes Outlook for 2016 maintained

  • CAPEX expected at DKK 300-325 million against

former expectation of DKK 350 million

Group revenue and profit margin DKKm % 3 6 9 12 15 18 100 200 300 400 500 600

Q3-14 Q1-15 Q3-15 Q1-16 Q3-16

Revenue Profit margin (12 month rolling)

Revenue Q3 2016 (DKKm) 282 200 Europe (58%) Americas (42%)

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Outlook and financial targets

Guidance 2016 Targets 2017 Revenue DKK 2.1-2.2bn DKK 2.2-2.4bn Profit margin before special items 11.0-12.5% 12-14%

  • 2016 guidance based on:

– Increased efficiency in Europe – Expansion of production network – Operating costs for new test center in Europe

  • Expected CAPEX of DKK 300-325 million against former expectation of DKK 350 million:

– Efficiency measures in Europe – Expansion of production network

  • 2017 targets based on:

– Efficiency improvements – Organic growth through improved utilisation of expanded capacity

  • ROIC at a level of at least 22% in 2017
  • Impact of potential acquisitions is not included in Hartmann’s targets

Guidance for 2016 and long-term targets

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Contact information

Brødrene Hartmann A/S Ørnegårdsvej 18 DK-2820 Gentofte

  • Tel. (+45) 45 97 00 00

investor@hartmann-packaging.com

Ulrik Kolding Hartvig, CEO Marianne Rørslev Bock, CFO

Upcoming events

Økonomisk Ugebrev Small and Mid Cap seminar 23 November 2016 Annual report 2016 8 March 2017 Annual general meeting 4 April 2017 Q1 interim report 23 May 2017

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Appendix: Key figures and financial ratios

DKKm Q3 2016 Q3 2015 Change (%) Revenue 482 508 (5)

  • Europe

282 292 (4)

  • Americas

200 216 (8) Operating profit 47 52 (10)

  • Europe

30 25 20

  • Americas

29 33 (12) Net financials (1) (13) (95) Profit 35 (35) 198 Free cash flows (53) (1)

  • Profit margin, %

9.7 10.2

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Appendix: Balance sheet

DKKm 30.09.16 30.09.15 31.12.15 Assets 1,842 1,683 1,720 Net working capital (NWC) 259 279 257 Invested capital (IC) 1,252 1,020 1,055 Net interest-bearing debt 612 497 495 Equity 707 548 598 ROIC, % 23.7 23.2 21.7 Equity ratio, % 38.4 32.6 34.7 Gearing, % 86.6 90.7 82.8

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Forward-looking statements

Disclaimer This presentation contains forward-looking statements reflecting management’s expectations of future events and must be viewed in the context of among other things the business environments and currency markets, which may cause actual results to deviate materially from those projected by Hartmann.