Huhtamäki (HUH1V) Investor presentation summary

Strategic direction and growth

• Aims to be the first choice in sustainable packaging, focusing on food, FMCG, and daily necessities.

• 2030 strategy centers on scaling core businesses, sustainable innovation (blueloop™), and operational excellence.

• Growth levers include organic expansion, disciplined capital allocation, and bolt-on acquisitions.

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

• Empowerment of business segments and procurement reorganization to drive accountability and speed.

Financial performance and targets

• 2024 net sales €4.1B, adjusted EBIT €416.9M (10.1% margin), net debt €1,216M, and 17,794 employees across 36 countries.

• Q1 2025: Net sales €1,001.6M (flat YoY), adjusted EBIT €98.5M (9.8% margin), adjusted EPS up 7% to €0.59.

• Net debt/EBITDA stable at 2.0x; gearing decreased to 0.59.

• Free cash flow decreased due to higher working capital; capital expenditure reduced by 18% YoY.

• 16 consecutive years of dividend growth, with a payout ratio of 40-50%.

Segment highlights

• Foodservice Packaging: Net sales €990M, 9.2% EBIT margin; focus on recyclable solutions and productivity.

• North America: Net sales €1,460M, 13.9% EBIT margin; strong Chinet® brand, capacity expansion, and Zellwin Farms acquisition.

• Flexible Packaging: Net sales €1,323M, 7.1% EBIT margin; margin improvement via product mix and innovation (blueloop™).

• Fiber Packaging: Net sales €363M, 12.0% EBIT margin; robust growth in egg and fruit packaging, focus on innovation and global scaling.