Huhtamäki (HUH1V) Investor presentation summary

Strategic direction and growth

• Focus on scaling core businesses, sustainable innovation, and operational excellence to drive profitable growth by 2030.

• Disciplined capital allocation with reduced capex, prioritizing high-yield projects and empowering business segments.

• Acquisition of Zellwin Farms in the US increases North American capacity and supports growth ambitions.

• Ambition for 5-6% annual growth and 10-12% adjusted EBIT margin, with a 40-50% dividend payout ratio.

• Long-term financial targets include net debt/EBITDA of 2-3x and continued shareholder returns.

Financial performance and segment highlights

• Q1 2025 net sales stable at €1,001.6M, adjusted EBIT at €98.5M (9.8% margin), and adjusted EPS up 7% to €0.59, driven by lower financing costs.

• Foodservice Packaging saw a 3% net sales decline and 10% EBIT drop due to soft demand and lower volumes.

• North America segment flat in net sales, but EBIT fell 15% due to timing, lower volumes, and higher costs.

• Flexible Packaging net sales down 2%, but EBIT up 23% from margin improvement and product mix.

• Fiber Packaging net sales up 13% and EBIT up 43%, driven by strong demand for egg and fruit packaging.

Cash flow, debt, and capital structure

• Free cash flow decreased mainly due to higher working capital from increased inventory and lower payables.

• Net debt at €1,252M, net debt/EBITDA stable at 2.0, with €277M in cash and €404M in unused credit facilities.

• Average loan maturity at 2.9 years, with a diversified debt maturity profile.