AR Packaging is one of Europe’s leading packaging companies and offers a wide range of solutions, including carton board packaging, flexibles and combinations of the two. The Group has extensive technical capabilities, from offset, rotogravure and advanced flexo printing to high-quality carton finishing and gluing as well as flexible converting. In addition, our strong innovative profile, with both central and local resources, combined with an extensive international network makes us a reliable partner to our customers. In this year’s Annual Report, we will continue to unfold the told and untold stories about the Group and our expertise. Read about BoardioTM and Sealio® – our gas-tight carton packaging systems – a result of three years of innovative development. Or about our new Flextrus material for medical applications providing 15 times improved barrier properties. Another exciting example is Futeco® Galaxy, a fully recyclable and eco-friendly solution with a metallic coating for high-end products in the confectionery and tobacco sectors. And of course, it is no coincidence that AR Packaging was the first company to win three prestigious Pro Carton ECMA awards in three different categories in 2015. Learn more about this and many other exciting stories in this year’s report – we hope you will find it an interesting and rewarding read. Comments by the ceo An extraordinary year with strong results Our operating profit developed extremely well, reaching an EBITDA margin of 12.2% (10.5%) before non-recurring items. The Group also delivered a strong cash flow following the healthy improvement in the operating profit. ”The strategic acquisition of the European operations of MWV has been very successful for our Group. It has established AR Packaging as one of the leaders in the tobacco segment while enhancing the strategic position of key accounts in the confectionery and consumer goods segments”. NET SALES AND EBITDA MARGIN Net sales |EBITDA margin (%) 2013 424.2 9.6 2014 404.3 10.5 2015 513.5 12.2 EBITDA AND EBITA EBITDA EBITA 2013 40.7 24.1 2014 42.5 27.4 2015 62.5 44.7 AR Packaging’s net sales in 2015 rose 27% to 514 MEUR (404), an increase mainly attributable to the acquired business of the European operations of MeadWestvaco Corporation, which has been included in the financial statements since 1 May. During the May-December period, the acquisition contributed sales of 106 MEUR. EBITDA amounted to 62,5 MEUR, up 47% compared with 2014. The EBITDA margin for 2015 rose to 12.2%, compared with 10.5% for 2014. This is the highest margin in the Group’s history.