A Word from the CEO
We aim to achieve quality growth. This means uncomplicated, profitable growth based on good competitive positions without sacrificing financial returns. Quality growth guarantees value to shareholders and is evidenced as a good return on equity, as well asa competitive and predictable dividend. Growth focus is inspiring for Huhtamaki team members and strongly endorsed by our customers who value a competent and resourceful partner that can help them sell more.
We want to improve the Group's financial performance which was fair but not good in 2011. We have taken specific announced actions to improve weak-performing units and to lower our financing costs. Through Lean Six Sigma continuous improvement program we will improve energy and material efficiency, increase net sales and optimize resource use, including better utilization of capital employed. This disciplined house-keeping is an important component of higher profitability.
However, the key improvement source for Huhtamaki is the implementation and achievement of quality growth. Our operations in several fast-growing countries have the appropriate infrastructure in place and therefore our 2012 growth actions will benefit from operating leverage by not needing to replicate full cost structure in order to serve customers successfully. We expand our capacity in several fast-growing countries and expect to enjoy organic growth comparable to 2011. We seek to complement organic growth with acquisitions that strengthen our positions and provide additional access to growth opportunities.
Our key financial target is to be back on track to higher profitability. We are confident that our growth actions will deliver well and despite modest global macroeconomic expectations we look optimistically to 2012. During uncertain times, an organization needs all the support of its key stakeholders and I would like to thank our customers, suppliers, investors, and other stakeholders for their support of the Huhtamaki team.
Jukka Moisio
CEO
February 2012