Industry News

Huhtamäki Oyj's Results Jan. 1-Dec.31, 2011: Foundation for quality growth established

- Solid organic net sales growth throughout the year
- Three strategic, growth enhancing acquisitions completed
- Strong performance of the Flexible Packaging segment, both in Asia and in Europe
- In 2012 growth in net sales is expected to continue and earnings per share (EPS) are expected to increase compared to the EUR 0.87 (excluding non-recurring items) achieved in 2011

Key figures (continued operations)

* EUR -7.0 million (net amount) non-recurring items (NRI) in 2011 and EUR 0.8 million (net amount) in Q4 2011.

CEO Jukka Moisio:
"Huhtamaki has returned to a growth track. Last year we focused on our core businesses and sought to grow them. We succeeded and we are pleased to report growth in all segments. Organic growth was strongest in our Flexible Packaging segment whose sales advanced at double-digit rates not only in fast-growing Asian countries but also in Europe. Our re-entry into acquisitive growth took place through three transactions during the second half of 2011 and the full impact of these steps will be visible in 2012. Fast-growing emerging markets grew at 14% in 2011 and now account for 24% of net sales.

Although there were no major changes in our business environment in 2011, the increased general economic uncertainty was reflected in customer cautiousness especially during the second half of the year. In these conditions we can be satisfied with the sustained level of profitability. Our solid financial position and well-timed refinancing activities during 2011 will allow us to continue implementing our strategy of quality growth during 2012."

Overview
The Group's trading conditions in 2011 remained relatively stable despite increased general economic uncertainty during the second half of the year. Demand for consumer packaging remained robust within emerging markets throughout the year. Raw material price levels were high during the first half of the year but stabilized during the third quarter and declined during the fourth quarter. Currencies moved adversely in the second and third quarters.

The Group's net sales developed favorably in 2011 compared to the previous year, led by the continued strong organic growth in the Flexible Packaging segment. Full year net sales were EUR 2,044 million (EUR 1,952 million). Reported Group net sales growth for the year was EUR 92 million, of which the businesses acquired during the second half of the year accounted for EUR 29 million. Adverse currency translations, especially in North America, had a negative impact in reported net sales development. The full year impact of adverse currency translations was EUR -36 million.

Three strategic, growth enhancing acquisitions were completed during 2011. A hygienic films manufacturer was acquired in Brazil and two specialty folding carton packaging businesses were acquired in the United States. The strategic review of the rigid plastic consumer goods operations, commenced in 2008, was completed. The closure of a Flexible Packaging manufacturing unit in New Zealand and restructuring activities of a Foodservice unit in Germany were also announced during the year.

Outlook for 2012
The Group's trading conditions are expected to remain relatively stable during 2012. The good financial position and ability to generate a positive cash flow will enable the Group to further address profitable growth opportunities. Growth in net sales is expected to continue and earnings per share (EPS) are expected to increase compared to the EUR 0.87 (excluding non-recurring items) achieved in 2011. Capital expenditure is expected to be below EUR 100 million.