Huhtamäki (HUH1V) Investor presentation summary

Strategic direction and growth ambitions

• Aims to be the first choice in sustainable packaging, targeting 100% recyclable, compostable, or reusable products by 2030.

• Focuses on scaling profitable core businesses and developing proprietary blueloop™ sustainable innovations.

• Pursues world-class competitiveness through operational excellence, digitalization, and customer partnerships.

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

• Investments are balanced between core business expansion and transformative innovation, with a strong emphasis on sustainability.

Financial performance and outlook

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

• Q2 2024 saw a 1% decrease in net sales but a 14% increase in adjusted EBIT, with a margin of 10.2% due to cost-saving actions.

• Efficiency program underway, targeting €100M in savings over 2024–26, including workforce reduction and site consolidations.

• Free cash flow increased, supported by higher EBITDA and lower capex, while net debt and gearing continued to decrease.

• Outlook for 2024 remains positive, with trading conditions expected to improve and ongoing volatility in the operating environment.

Segment highlights and innovation

• Global leader in fiber, paperboard, and flexible packaging, serving foodservice, retail, FMCG, and healthcare sectors.

• North America segment delivered strong performance with 12.9% EBIT margin; flexible packaging segment focused on profitability improvement.

• blueloop™ platform drives sustainable innovation, including recyclable mono-material flexibles and compostable solutions.

• Circularity initiatives include large-scale recycling pilots for fiber and flexible packaging, supporting brand sustainability pledges.

• Investments in new technologies and operational improvements underpin growth and margin expansion across all segments.