Huhtamäki (HUH1V) Investor presentation summary

Strategic direction and innovation

• Aims to be the first choice in sustainable packaging by 2030, focusing on innovation and operational excellence.

• Core strategy includes scaling profitable businesses, developing blueloop™ sustainable innovations, and driving world-class competitiveness.

• Leadership in fiber, paperboard, and flexible packaging technologies enables material-positive, fit-for-purpose solutions.

• Investments target both core business expansion and transformative sustainable innovation, with balanced capex allocation.

• Efficiency program targets €100 million in savings by 2026 through footprint optimization, sourcing, and productivity improvements.

Financial performance and ambitions

• Net sales for 2023 were €4.2B, with an adjusted EBIT margin of 9.4% and net debt/EBITDA at 2.2x.

• Q3 2024 saw net sales decrease by 1% year-on-year, but adjusted EBIT grew by 2% and margin improved to 10.0%.

• Free cash flow improved, supported by higher EBITDA and lower capex; net debt and gearing decreased year-on-year.

• Long-term ambitions include 5-6% annual net sales growth, 10-12% adjusted EBIT margin, and 13-15% ROI.

• Dividend payout ratio maintained at 40-50%, with 15 years of continuous dividend growth.

Segment highlights

• North America delivered profitable growth, with Q3 2024 net sales up 3% and EBIT margin at 13.8%.

• Flexible Packaging segment improved margins to 7.3% in Q3 2024, despite a 3% drop in net sales.

• Fiber Packaging saw 8% net sales growth in Q3 2024, driven by volume, but EBIT margin declined due to higher raw material costs.

• Foodservice E-A-O segment faced soft demand and a 5% drop in Q3 2024 net sales, with EBIT margin at 8.5%.