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

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 machinery manufacturers Expected profit margin of 11-12.5% in 2016 Revenue 2015 (DKKm) 886 4 x 12 x 1 x 4 x 1248 Production Production and sales Europe (58%) Americas (42%) Sales 5 x 5 x 2

Attractive market drivers Population growth • More people • Growing middle class • Eating more eggs and fruit Urbanisation • More people in urban areas • Increasing egg and fruit sales at (structured) retail outlets – in packaging Sustainability • More people concerned with sustainability • With the means to choose moulded-fibre over plastic packaging 3

Well-diversified customer base Across geographic markets North South Europe Global America America Retail, eggs X X X Transport, eggs X X Well-diversified Transport, fruit X customer base Technology X Several large customers Many small customers Across customer segments Geographically diverse Retail Moulded-fibre Producer Packer Trending towards fewer chain producer and larger customers Retail, eggs X X X Transport, eggs X X Transport, fruit X X Technology X 4

Hartmann = shareholder value 1 Strong market positions Global leader leveraging strong strategic assets Favourable macro trends supporting positive development Shareholder value Outperforming peer share 2 indexes over longer term Classic industrial approach Efficiency enhancements Optimising utilisation Attractive dividend policy and payout ratio 3 Growing profitably Proven track-record of increasing revenue and profitability Disciplined expansion – organic and potentially acquisitive 5

Creating shareholder value DKK 350 Share, Q3 2016 300 Change (LTM) +29% 250 Market cap DKK 2.2bn 200 Shares 7,015,090 150 Shareholders ~2,100 100 Index Mid Cap 50 0 January January January January January January 1% 2011 2012 2013 2014 2015 2016 Hartmann Small Cap (indexed) Mid Cap (indexed) 30% Outperforming peer indexes on Nasdaq Copenhagen over • longer term 69% Total share return (incl. dividends) since 2011: 373% • Thornico Holding Other Hartmann moved to the Mid Cap index in early 2016 • Own shares 6

Our potential Exploit and expand our strong market positions and assess growth opportunities Use and develop our Tailor our versatile proven technological product portfolio competencies across markets Optimise and expand our well-established production platform 7

Our initiatives Potential Timing Initiative Addition of South American activities • Strengthened global position via presence 2015 in attractive South American markets Expansion of production network • 2 additional factories in South America and 2015-2017 1 factory in the U.S. to meet demand Expansion of capacity in Europe 2015-2017 • Increased production capacity and utilisation of existing infrastructure Efficiency measures in Europe • Closure of German factory and overall 2015-2016 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 8

Q3 2016 highlights Revenue Q3 2016 (DKKm) Decline in volumes partly offset by efficiency gains • Lower revenue and projects impacted profitability • Ongoing expansion in all markets 200 Improved efficiency on unchanged volumes in Europe 282 • Strong profitability from efficiency and lower costs • Full utilisation and acceleration of capacity expansion Europe (58%) Americas (42%) External effects impacted volumes in Americas • Volatility in North America following 2015 bird flu Group revenue and profit margin • Macroeconomic developments in South America DKKm % 600 18 affected fruit exports and packaging volumes 500 15 400 12 Outlook for 2016 maintained 300 9 CAPEX expected at DKK 300-325 million against • 200 6 former expectation of DKK 350 million 100 3 0 0 Q3-14 Q1-15 Q3-15 Q1-16 Q3-16 Revenue Profit margin (12 month rolling) 9

Outlook and financial targets Guidance for 2016 and long-term 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 • 10

Contact information Brødrene Hartmann A/S Ørnegårdsvej 18 DK-2820 Gentofte Tel. (+45) 45 97 00 00 investor@hartmann-packaging.com Marianne Rørslev Ulrik Kolding Hartvig, CEO 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 11

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 - 12

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 13

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. 14