Huhtamäki (HUH1V) Investor presentation summary

Strategic direction and innovation

• Aims to be the first choice in sustainable packaging, focusing on recyclable, compostable, or reusable products by 2030.

• Profitable growth strategy centers on scaling core businesses, developing blueloop™ sustainable innovations, and driving operational excellence.

• Investments target both core business expansion and transformative innovation, especially in fiber, paperboard, and flexible packaging technologies.

• Leadership in three key packaging technologies enables material-positive, fit-for-purpose solutions for food and daily necessities.

• Efficiency program launched in 2023 aims for €100 million in cost savings, with €76 million achieved by end of 2024.

Financial performance and outlook

• 2024 net sales reached €4.13 billion, with adjusted EBIT margin at 10.1% and adjusted EPS at €2.48.

• Free cash flow for 2024 was €216 million, supported by lower capex and improved working capital.

• Net debt/adjusted EBITDA stable at 2.0x, with gearing reduced to 0.57 and strong liquidity position.

• Dividend per share proposed at €1.10, marking the 16th consecutive year of growth and a 44% payout ratio.

• 2025 outlook expects stable trading conditions, with risks from consumer demand, inflation, raw material availability, and geopolitical factors.

Segment highlights

• North America delivered strong performance: net sales €1.46 billion, adjusted EBIT margin 13.9%, driven by volume growth and operational improvements.

• Flexible Packaging segment improved profitability with 7.1% adjusted EBIT margin, supported by higher sales volumes and cost actions.

• Fiber Packaging rebounded with 12% adjusted EBIT margin and 6% net sales growth, led by demand for egg packaging.

• Foodservice E-A-O segment saw cautious improvement, with net sales of €990 million and 9.2% adjusted EBIT margin.