Huhtamäki Oyj's Interim Report January 1 - June 3

HUHTAMÄKI OYJ STOCK EXCHANGE RELEASE 19.7.2013 AT 08:30 - Earnings improvement maintained in the Foodservice Europe-Asia-Oceania segment - Continued solid performance in the Molded Fiber segment - Despite net sales growth earnings declined in the North America segment due to inventory reductions and higher investment costs - Declining net sales and earnings in the Films segment due to weak demand of industrial films - EPS declined as a result of higher financial and tax expenses Key figures - excluding non-recurring items EUR million H1 2013 H1 2012 Q2 2013 Q2 2012 FY 2012 ------------------------------------------------------------------------------- Net sales 1,187.3 1,161.3 618.9 614.5 2,321.2 EBIT* 86.4 83.9 49.2 49.6 163.5 EBIT margin*, % 7.3 7.2 7.9 8.1 7.0 EPS*, EUR 0.58 0.62 0.34 0.38 1.19 ROI*, % 12.3 11.0     12.6 ROE*, % 15.0 12.9     15.8 Free cash flow 5.8 23.8 27.2 34.7 102.6 Net debt 460.2 480.0     405.9 Gearing 0.58 0.61     0.50 * Excluding EUR -7.3 million non-recurring items (NRI) in Q2 2013 and H1 2013.  Key figures - reported EUR million H1 2013 H1 2012 Q2 2013 Q2 2012 FY 2012 ------------------------------------------------------- Net sales 1,187.3 1,161.3 618.9 614.5 2,321.2 EBIT 79.1 83.9 41.9 49.6 163.5 EBIT margin, % 6.7 7.2 6.8 8.1 7.0 EPS, EUR 0.51 0.62 0.27 0.38 1.19 ROI, % 11.7 11.0     12.6 ROE, % 14.1 12.9     15.8 Free cash flow 5.8 23.8 27.2 34.7 102.6 Net debt 460.2 480.0     405.9 Gearing 0.58 0.61     0.50 Overview The Group's trading conditions remained relatively stable despite continued general economic uncertainty and customer cautiousness. The Group's net sales grew by EUR 26 million (equaling 2%) and were EUR 1,187 million (EUR 1,161 million). Excluding the adverse currency translation impact, net sales growth was EUR 41 million (equaling 3%). During the second quarter all business segments except Films reported positive organic growth. Comparable organic growth was strongest in the Molded Fiber business segment. The Group's earnings before interest and taxes (EBIT), excluding non-recurring items (NRI) of EUR 7 million, were EUR 86 million (EUR 84 million) and in the second quarter EUR 49 million (EUR 50 million). The reported EBIT was EUR 79 million (EUR 84 million) and in the second quarter EUR 42 million (EUR 50 million). Earnings development continued strong in the Foodservice Europe-Asia- Oceania business segment. In the North America business segment earnings declined despite net sales growth. The Group's free cash flow was EUR 6 million (EUR 24 million) and for the second quarter EUR 27 million (EUR 35 million). Return on investment (ROI), excluding non-recurring items, was 12.3% (11.0%) and return on equity (ROE), excluding non-recurring items, was 15.0% (12.9%). Further efficiency improving measures to improve the competitiveness of the Foodservice Europe-Asia-Oceania business segment were announced on June 13, 2013, in addition to measures initiated in the segment during the first quarter. The North American investments in foodservice disposables capabilities, announced during the first quarter, progressed according to plan. Outlook for 2013 The Group's trading conditions are expected to remain relatively stable during 2013. The good financial position and ability to generate a positive cash flow will enable the Group to further address profitable growth opportunities. Capital expenditure is expected to be above EUR 100 million. A significant part of the investments is due to the increases in foodservice disposables capabilities within the North America segment. Financial Reporting Schedule in 2013 Huhtamaki will publish the interim report for January 1 - September 30, 2013 on October 25. This is a summary of Huhtamaki's Interim Report January 1 - June 30, 2013. The complete report is attached to this release and is also available at the company website at www.huhtamaki.com. For further information, please contact: Jukka Moisio, CEO, tel. +358 10 686 7801 HUHTAMÄKI OYJ Group Communications Huhtamaki Group is a leading manufacturer of consumer and specialty packaging with 2012 net sales totaling EUR 2.3 billion. Foodservice and consumer goods markets are served by approximately 14,400 people in 64 manufacturing units and several sales offices in 31 countries. The parent company, Huhtamäki Oyj, has its head office in Espoo, Finland and its share is quoted on NASDAQ OMX Helsinki Ltd. Additional information is available at www.huhtamaki.com. [HUG#1717470]