Huhtamäki (HUH1V) Investor presentation summary

Strategic direction and business model

• Focus on becoming the first choice in sustainable packaging, leveraging leadership in foodservice, retail, and everyday necessities packaging across fiber, paperboard, and flexibles technologies.

• 2030 strategy centers on scaling profitable core businesses, sustainable innovation with customers, and operational excellence, supported by disciplined capital allocation and empowered business segments.

• Operating in 36 countries with 102 locations and nearly 18,000 employees, maintaining a strong local presence and global reach.

• Evolved operating model increases agility, accountability, and speed of execution, with decision-making closer to customers and empowered segments.

• Acquisition of Zellwin Farms in the US supports growth in molded fiber packaging and is value and margin accretive from year one.

Financial performance and ambitions

• 2024 net sales reached €4.1B, with adjusted EBIT of €416.9M and a margin of 10.1%.

• Q3 2025 saw net sales of €970.6M (down 5% YoY), with adjusted EBIT margin improving to 10.3% despite adverse currency impacts, especially from a weaker USD.

• Free cash flow decreased YTD due to higher working capital, but capex was reduced in line with disciplined capital allocation.

• Net debt/adjusted EBITDA at 2.0, with €328M in cash and €450M in unused credit facilities at Q3 2025 end.

• Long-term ambitions include 5-6% annual net sales growth, 10-12% adjusted EBIT margin, 13-15% ROI, and a 40-50% dividend payout ratio.

Segment highlights

• Foodservice Packaging: Stable margins (Q3 EBIT margin 9.2%), strong cash flow, but net sales declined due to currency and volume.

• North America: Volume growth offset by weaker dollar and lower sales prices; EBIT margin dropped to 10.3%.

• Flexible Packaging: EBIT margin improved to 10% in Q3, driven by mix improvement and operational turnarounds, despite soft demand.

• Fiber Packaging: Net sales and EBIT grew, with margin up to 12.6% in Q3, supported by higher volumes and prices.