Huhtamaki Oyj · OMXHEX:HUH1V
Huhtamaki Oyj — SEB Nordic Seminar 2025
32 slides from Huhtamaki Oyj's conference presentation, Jan 9, 2025
Slide 1: Becoming the first choice in sustainable packaging solutions
Becoming the first choice in sustainable packaging solutions SEB seminar January 9, 2025
Slide 2: This is Huhtamaki: net sales and adjusted EBIT
THIS IS NET SALES 4,800 3,600 Global market and innovation leader in sustainable 2,400 packaging for food-on-the-go, food-on-the shelf 1,200 and everyday necessities. 0 Driving profitable growth through scaling core 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 LTM
Slide 3: A strong local presence, delivering for our customers, globally
A strong local presence, delivering for NET SALES our customers, globally €4.2B ADJUSTED EBIT MARGIN 9.4% OPERATING LOCATIONS 103 OPERATING COUNTRIES 37 EMPLOYEES 17,910 Manufacturing unit Sales unit Distribution center Head office All figures as on Dec 31, 2023 3 9.1.2025
Slide 4: Providing packaging for food and everyday necessities
Providing packaging for food and everyday necessities Food service FMCG Retail Healthcare Customers Food packaging Packaging for everyday necessities Products Paperboard Fiber Flexibles Packaging technology Non-integrated Global Leader Global Leader Global Category Leader 4 9.1.2025
Slide 5: Our 2030 Profitable Growth Strategy
Our 2030 Profitable Growth Strategy Scale up profitable Develop blueloop Drive world-class core businesses sustainable innovation competitiveness in partnership with our customers Smart, fit-for purpose sustainable packaging solutions Powered by strategic capabilities Safety Sustainability Innovatio
Slide 6: Our 2030 sustainability ambition
Our 2030 100% 100% Carbon neutral sustainability of products designed of fiber from recycled production ambition to be recyclable, compostable or or certified sources and science-based emission target reusable First choice in sustainable packaging solutions >80% 100% >90% renewable or renewable ener
Slide 7: Huhtamaki as an investment
Huhtamaki as an investment Huhtamaki is a market and technology innovation leader for essential packaging, creating value through: • Attractive portfolio of sustainable core businesses to capture strong underlying market growth • Technology innovation to capture value- added sustainable innovation o
Slide 8: Ralf K. Wunderlich appointed CEO of Huhtamaki
Ralf K. Wunderlich appointed CEO of Huhtamaki as of Jan 15 • Born 1966, German citizen • Education: B.Sc. (Business Administration) • Main occupation: Senior Adviser, Independent Consultant and Operating Partner to private equity companies • Member of the Huhtamaki Board of Directors since 2018 • Pr
Slide 9: We have a significant business in North America
We have a significant business in North America Strong long-term performance in the North America segment Mainly local-for-local business, with some limited imports of raw materials and traded goods Net sales and adj. EBIT margin 1,800 12.9 % 14% 12.0 % 12.0 % 11.7 % 1,600 12% 1,400 9.7 % 10% 1,200
Slide 10: Financial performance has improved, capex levels moderated
Financial performance has improved, capex levels moderated Net sales trend improved, adj. EBIT driven by Capex is focused on scaling our core, while strong margin development investing in innovation (MEUR) 318 318 25% 11% 259 215 224 199 197 204 204 20% 10% 147 134 15% 9% 10% 8% 2015 2016 2017 2018
Slide 11: Net debt to adjusted EBITDA stable at 2.0x
Net debt to adjusted EBITDA stable at 2.0x Net debt, net debt/adj. EBITDA and gearing Covenant level 3.75 • Net debt/Adj. EBITDA at 2.0 2.4 2.5 Ambition • At the end of Q3 2024: 2.3 2.2 • Cash and cash equivalents 2.1 1,426 1,453 2.0 2.0 2–3 EUR 408 million 1,332 1,288 1,249 1,255 1,220 Net debt, M€
Slide 12: 15 years of continuous dividend growth
15 years of continuous dividend growth >1BEUR paid since 2008 Dividend growth CAGR >8% since 2008 EPS growth to allow for 1.05 continued predictable dividend 1.00 0.89 0.92 0.94 payout 0.80 0.84 0.66 0.73 Sales and margin improvement 0.56 0.57 0.60 0.44 0.46 in line with ambitions 0.34 0.38 Discipli
Slide 13: Solid profitability in a gradually improved market
Solid profitability in a gradually improved market Interim Report Q3 2024 13 9.1.2025 OVERVIEW | STRATEGY | SEGMENTS | FINANCIALS | SUSTAINABILITY | OTHER | Q3 REPORT
Slide 14: Q3 2024: Solid profitability in a gradually improved market
Q3 2024: Solid profitability in a gradually improved market Market trends − Market conditions improved, with differences between geographies and categories − Improvement in on-the-shelf categories (particularly egg packaging), while on-the-go categories remained subdued − Market environment still im
Slide 15: Efficiency program contributes to profitability improvement
Efficiency program contributes to profitability improvement Program targets MEUR 100 savings in 2024-26 Savings program delivers as expected Footprint optimization Efficiency program leading to savings of appr. By the end of Q3 2024, the program has generated savings Structural cost EUR 100 million
Slide 16: Q3 2024: Comparable net sales supported by volume growth
Q3 2024: Comparable net sales supported by volume growth Development of net sales in Q3 2024 (EUR million) Net sales decreased 1% in Q3 2024 • Flat comparable net sales growth 2 0 0 -13 (-4% in emerging markets). Slight growth in volumes, pricing down 1,037 1,026 • 0% from acquisitions and divestmen
Slide 17: Q1-Q3 2024: Pricing weighing on comparable net sales development
Q1-Q3 2024: Pricing weighing on comparable net sales development Development of net sales in Q1-Q3 2024 Net sales decreased 2% in Q1-Q3 2024 (EUR million) • Comparable net sales growth -1% (-3 % in emerging markets). Volumes -33 0 0 -35 close to the previous year’s level, pricing impact slightly neg
Slide 18: Comparable net sales trend improving
Comparable net sales trend improving Q1- Q1- Long-term Comparable net sales growth Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q3 23 Q3 24 ambitions Foodservice E-A-O -3% -5% -5% -6% -7% 4% -6% 4-5% North America 1% 4% -3% -2% 3% 1% -0% 5-6% Flexible Packaging -11% -9% -1% 2% -0% -9% 0% 6-7% Fiber Packaging 4% 2%
Slide 19: Adjusted EBIT growth continued
Adjusted EBIT growth continued MEUR Q3 24 Q3 23 Change Q1-Q3 24 Q1-Q3 23 Change Net sales 1,026.2 1,037.2 -1% 3,067.6 3,136.0 -2% Adjusted EBIT1 102.4 100.3 2% 306.7 285.1 8% Margin 10.0% 9.7% 10.0% 9.1% Adjusted EPS, EUR2 0.63 0.57 9% 1.80 1.64 10% Capital expenditure 49.4 69.7 -29% 134.1 203.9 -34
Slide 20: Foodservice E-A-O: Consumption remained soft, affected by high consumer prices
Foodservice E-A-O: Consumption remained soft, affected by high consumer prices Key figures, MEUR Q3 24 Q3 23 Change Net sales and comparable growth (EUR million & %) Net sales 246.9 259.9 -5% 256 271 260 Comparable growth -7% -3% 241 252 247 250 1% -6% -14% -6% -7% -5% -6% Adjusted EBIT1 21.1 26.7 -
Slide 21: North America: Profitable growth continued
North America: Profitable growth continued Key figures, MEUR Q3 24 Q3 23 Change Net sales and comparable growth (EUR million & %) Net sales 359.3 348.4 3% 358 373 370 359 378 Comparable growth 3% 1% 344 348 -0% -1% 3% -1% 6% -4% -6% Adjusted EBIT1 49.7 45.9 8% 2023 Margin 13.8% 13.2% 2024 2% -3% 1%
Slide 22: Flexible Packaging: Continued margin improvement
Flexible Packaging: Continued margin improvement Key figures, MEUR Q3 24 Q3 23 Change Net sales and comparable growth (EUR million & %) Net sales 333.9 344.2 -3% 349 335 344 334 Comparable growth -0% -11% 328 326 320 -8% -4% -16% -18% -3% -1% -13% 2023 Adjusted EBIT1 24.3 24.7 -2% Margin 7.3% 7.2% 2
Slide 23: Fiber Packaging: Sales supported by volumes growth
Fiber Packaging: Sales supported by volumes growth Key figures, MEUR Q3 24 Q3 23 Change Net sales and comparable growth (EUR million & %) Net sales 87.9 81.4 8% 87 92 88 89 Comparable growth 8% 4% 85 86 81 -10% 7% 8% 2% -4% -2% 1 -9% 2023 Adjusted EBIT 8.1 10.2 -20% Margin 9.2% 12.5% 2024 17% 1% 7%
Slide 24: Improved margins driving earnings
Improved margins driving earnings MEUR Q3 24 Q3 23 Change Q1-Q3 24 Q1-Q3 23 Change Q3 commentary: Net sales 1,026.2 1,037.2 -1% 3,067.6 3,136.0 -2% 1 • Reported sales decreased 1%, Adjusted EBITDA 153.1 149.0 3% 458.5 430.6 6% flat in comparable terms 1 Margin 14.9% 14.4% 14.9% 13.7% • Despite low g
Slide 25: Minor negative currency impact
Minor negative currency impact Average Average Change in Change in Closing rates rate rate average closing Q1-Q3 23 Q1-Q3 24 rate Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 rate (YoY) (YoY) USD 1.08 1.09 0% 1.05 1.11 1.08 1.07 1.12 -6% Foreign currency INR 89.24 90.66 -2 % 87.64 92.45 90.13 89.24 93.38 -7% trans
Slide 26: Net debt to adjusted EBITDA stable at 2.0
Net debt to adjusted EBITDA stable at 2.0 Net debt, net debt/adj. EBITDA and gearing Covenant level 3.75 • Net debt/Adj. EBITDA at 2.0 2.5 • At the end of Q3 2024: 2.4 Ambition 2.3 2.2 2.1 • Cash and cash equivalents 1,426 1,453 2.0 2.0 2–3 EUR 408 million 1,332 1,288 1,249 1,255 1,220 • Unused comm
Slide 27: Loan maturities
Loan maturities Debt maturity structure September 30, 2024 (EUR million) • Average maturity 2.3 years at the 800 end of Q3 2024 (2.4 at the end of 700 Q3 2023) 600 500 • EUR 125 million term loan was 400 extended in September 2024 with 300 a further year to May 2026 200 • EUR 100 million bond was re
Slide 28: EBITDA and capex development supporting cash flow
EBITDA and capex development supporting cash flow Free cash flow bridge (EUR million) Cash flow driven by: 444 416 • Higher reported EBITDA • Negative impact from change in 193 working capital 160 • Lower capex 75 29 7 0 Strong comparison period figures -15 in 2023 due to change in working -53 -42 -
Slide 29: Financial position improved
Financial position improved MEUR Sep 2024 Sep 2023 Total assets 4,824 4,829 • Working capital down yoy, but increased vs year-end Working capital 589 644 2023 due to higher Net debt 1,220 1,332 inventories Equity & non-controlling interest 1,952 1,945 • Net debt and gearing decreased Gearing 0.62 0.
Slide 30: Progress towards long-term financial ambitions
Progress towards long-term financial ambitions Long-term 2017 2018 2019 2020 2021 2022 2023 Q1-Q3 24 ambition Comparable net sales growth 3% 5% 6% -2% 7% 15% -2% -1% 5-6% Adjusted EBIT margin 9.0% 8.1% 8.6% 9.1% 8.8% 8.8% 9.4% 10.0% 10-12% Adj. ROI 13.6% 11.6% 12.3% 11.7% 11.3% 11.0% 11.2% 12.0% 13-
Slide 31: Disclaimer
Disclaimer Information presented herein contains, or may be deemed to contain, forward-looking statements. These statements relate to future events or Huhtamäki Oyj’s or its affiliates’ (“Huhtamaki”) future financial performance, including, but not limited to, strategic plans, potential growth, expe
Slide 32: Thank You
Thank You ir@huhtamaki.com OVERVIEW | STRATEGY | SEGMENTS | FINANCIALS | SUSTAINABILITY | OTHER | Q3 REPORT