Huhtamäki (HUH1V) Investor presentation summary

Strategic direction and sustainability

• Aims to be the first choice in sustainable packaging, focusing on food, retail, and healthcare sectors.

• 2030 strategy centers on scaling core businesses, sustainable innovation, and operational excellence.

• Targets 100% recyclable, compostable, or reusable products and carbon-neutral production.

• Over 80% of materials to be renewable or recycled, with 100% renewable energy use.

• Recognized for sustainability by EcoVadis, CDP, MSCI, and Sustainalytics.

Financial performance and targets

• Net sales for 2023 at €4.2B, with an adjusted EBIT margin of 9.4%.

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

• Net debt/EBITDA stable at 2.0x, with €408M cash and €355M unused credit at Q3 2024.

• 15 years of continuous dividend growth, with a CAGR over 8% since 2008.

Segment and regional performance

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

• Flexible Packaging saw margin improvement despite a 3% sales decline; EBIT margin at 7.3%.

• Fiber Packaging net sales grew 8% in Q3 2024, but EBIT margin declined to 9.2% due to higher raw material costs.

• Foodservice EAO segment faced soft demand and a 5% sales drop, with EBIT margin at 8.5%.