Huhtamaki Oyj · OMXHEX:HUH1V
Huhtamaki Oyj — Non-Deal Roadshow (October 2024)
94 slides from Huhtamaki Oyj's roadshow presentation, October 2024
Slide 1: Becoming the first choice in sustainable packaging solutions
Becoming the first choice in sustainable packaging solutions Roadshow presentation September – October 2024
Slide 2: Contents
Contents 1. Overview 2. Strategy 3. Segments 4. Financials 5. Sustainability and role of packaging 6. Other 7. Latest quarterly report 2 Sep-Oct 2024
Slide 3: Overview
1 Overview 3 Sep-Oct 2024 OVERVIEW | STRATEGY | SEGMENTS | FINANCIALS | SUSTAINABILITY | OTHER | Q2 REPORT
Slide 4: 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 4 Sep-Oct 2024 OVERVIEW | STRATEGY |
Slide 5: Huhtamaki in figures
Adjusted return on Huhtamäki Net debt and Net debt/ Adjusted EBITDA EUR million investment and equity in figures % Circularity Operations 66.1% 79.4% Share of all Share of non- materials used hazardous that are renewable waste recycled or Adjusted earnings and dividend per share or recycled composte
Slide 6: 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 6 Sep-Oct 2024 OVERVIEW | S
Slide 7: Segment overview: products, customers and competitors
Fiber Packaging Foodservice E-A-O North America Flexible Packaging Net sales EUR 343 million EUR 1,037 million EUR 1,458 million EUR 1,458 million and split Europe Western Europe & UK Retail Europe Rest of world Central & Eastern Europe Foodservice Asia Rest of world Consumer goods Middle East and A
Slide 8: 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 9: Our long-term financial ambitions
Our long-term financial ambitions Group Segments Comparable Adj. EBIT Absolute EPS growth growth margin Adj. RONA Foodservice E-A-O 4-5% 10-12% 13-15% 5-6% 10-12% 13-15% 2-3x North America 5-6% 11-12% 15-17% Net debt / Comparable Adjusted EBIT Adjusted Adjusted growth margin ROI EBITDA Flexible Pack
Slide 10: 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 11: 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 12: Strategy
2 Strategy 13 Sep-Oct 2024 OVERVIEW | STRATEGY | SEGMENTS | FINANCIALS | SUSTAINABILITY | OTHER | Q2 REPORT
Slide 13: Packaging is essential for food and everyday necessities
Packaging is essential for food and everyday necessities Packaging supports food Packaging helps secure Packaging helps prevent Packaging has driven from farm to fork, making it hygiene and food safety food loss and waste, in social and economic more accessible and for consumers around food systems
Slide 14: Packaging paradigm shift creates profitable growth opportunities
Packaging paradigm shift creates profitable growth opportunities for Huhtamaki Consumers Sustainability Customers Packaging value chain everywhere, are driving industry demanding partnership cross-fertilizing across accelerating agenda for transformation, for innovation of added- material, technolog
Slide 15: Consumer demand for packaging is expected to grow
Consumer demand for packaging is expected to grow, with further opportunities in sustainable innovation Food & everyday necessities packaging market Need for sustainable solutions represents innovation is projected to grow ~30% opportunities ~620 BEUR €0,6T ~470 BEUR €0,5T Flexibles -material struct
Slide 16: Our leadership in three key packaging technologies
Our leadership in three key packaging technologies uniquely positions us to capture innovation opportunities Fiber Paperboard Flexibles Global Leader Non-integrated Leader Global Category Leader Fiber Proprietary high- Application and barrier Recyclable mono- Flexibles Huhtamaki precision fiber inno
Slide 17: Our 2030 North Star
Our 2030 North Star Be the first choice in sustainable packaging solutions, driven by innovation and operational performance 18 Sep-Oct 2024
Slide 18: We are on a transformation journey
We are on a transformation journey to become the first choice in sustainable packaging solutions Our 2030 vision Game-changing technology & Our value proposition, today solution innovation Sustainable innovation in Our core business Solution innovation in partnership partnership with customers with
Slide 19: 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 20: We continue to invest in profitable core businesses and transformative innovation
We continue to invest in profitable core businesses and transformative innovation Profitable growth opportunities in our core businesses and in Balanced investments in core and transformative sustainable innovation innovation Healthcare FMCG Foodservice Retail Investing in scaling up profitable core
Slide 21: blueloop focuses on scaling sustainable innovation
blueloop focuses on scaling sustainable innovation in proprietary technologies, driving value creation Recyclable, blueloop Fiber blueloop Flexibles compostable or reusable High precision fiber forming Technologies for recyclable mono-material Lower carbon technologies and barriers for complex struc
Slide 22: Our focus is on development and scaling of blueloop innovation
Our focus is on development and scaling of blueloop innovation Leveraging sustainable technology to drive core business and innovation development Retail Foodservice FMCG Smooth Molded Fiber Proprietary forming New Newgrowth growth New Newgrowth growth technologies and barrier Core Corebusiness busi
Slide 23: New sustainable blueloop solutions with customers
We are introducing new sustainable blueloop solutions, many in partnership with our customers Recyclable solutions ICON ice-cream packaging Mono-PET PushTab blister lids technology with repulpable that run on existing lines coating without speed loss Lowers carbon footprint Provides recyclable and e
Slide 24: Stepping up structural and operational efficiencies
We are also stepping up structural and operational efficiencies Structural performance Operational performance improvement improvement World class operational Productivity measures Manufacturing excellence: continuous performance program operational improvement and Process automation digitalization
Slide 25: Operating model
Operating model 26 Sep-Oct 2024 OVERVIEW | STRATEGY | SEGMENTS | FINANCIALS | SUSTAINABILITY | OTHER | Q2 REPORT
Slide 26: Segments
3 Segments 27 Sep-Oct 2024 OVERVIEW | STRATEGY | SEGMENTS | FINANCIALS | SUSTAINABILITY | OTHER | Q2 REPORT
Slide 27: Fiber Foodservice - Overview
Fiber Foodservice - Overview Global Fiber leader Global paperboard conversion* leader Foodservice E-A-O Fiber Packaging Net sales 1,037 MEUR Net sales 343 MEUR Adj. EBIT margin 9.4% Adj. EBIT margin 11.6% Recovered growth and improved profitability Net sales and adj. EBIT margin 1 200 14% 12,2 % 11,
Slide 28: Investing in sustainable innovation across technology platforms
We are investing in sustainable innovation across our technology platforms, and driving operational improvement Paperboard conversion Rough Molded Fiber Smooth Molded Fiber Invest in new sustainable Unlock capacity and increase Invest in scaling up current solutions for FMCG sector operational perfo
Slide 29: Fiber Foodservice - Long-term ambitions
Fiber Packaging Foodservice E-A-O Fiber Foodservice - Long-term 3-4% 4-5% ambitions Comparable Comparable growth growth How we get there Core businesses Further improve productivity and operational performance in legacy Paperboard operations 11-12% 10-12% Expand in RMF through incremental innovation
Slide 30: North America - Overview
North America - Overview Global Fiber leader Global paperboard conversion* leader Net sales 1,458 MEUR Adj. EBIT margin 12.9% We are delivering strong financial performance 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 7,3 % 8% Retail Tableware
Slide 31: Continue to develop core businesses with circular solutions
We will continue to develop our core businesses, with circular solutions and further operational improvements Driving growth through sustainable solutions Building on historic strengths and enhancing across all our businesses strategic capabilities Retail – Partnering with retailers to create the fu
Slide 32: Regulation and consumer preferences create growth opportunities
Regulation and consumer preferences create additional growth opportunities for us Retail Tableware Foodservice FMCG 17 states in the US Significant investments Continuing to expand Investing in Rough have introduced varying in Smooth Molded the molded Molded Fiber levels of foam packaging Fiber capa
Slide 33: North America - Long-term ambitions
North America - Long-term 5-6% ambitions Comparable growth How we get there Partner with strategic customers to continue to introduce new products and systems and help them achieve sustainable solutions 11-12% Build on our continuous improvement culture Adjusted EBIT margin to achieve World-Class op
Slide 34: Flexible Packaging - Overview
Flexible Packaging - Overview Global category leader Net sales 1,341 MEUR Adj. EBIT margin 6.6% We are delivering growth, but need to address profitability Net sales and adj. EBIT margin 1 800 8,1 % 9% 7,7 % 1 600 7,1 % 8% 6,8 % 6,6 % 1 400 6,3 % 7% 1 200 6% 1 000 5% Food & beverage Home & personal
Slide 35: Rolling out blueloop flexibles mono-material solutions
We are rolling out our blueloop flexibles proprietary mono-material solutions to support brands in achieving their 2025 pledges blueloop flexibles value proposition blueloop market opportunity Cost-effective solutions in mono-material blueloop flexibles opens a market PP, PE, PET and Paper structure
Slide 36: Flexible Packaging - Long-term ambitions
Flexible Packaging - Long-term 6-7% ambitions Comparable growth How we get there Operations Improve productivity, reduce waste, optimize network 9-11% Complete Elif integration Adjusted EBIT margin Capabilities Improve commercial and operational capabilities blueloopTM Bringing transformative, recyc
Slide 37: Financials
4 Financials 38 Sep-Oct 2024 OVERVIEW | STRATEGY | SEGMENTS | FINANCIALS | SUSTAINABILITY | OTHER | Q2 REPORT
Slide 38: Group financials 2013-2023
Group financials 2013-2023 20131 20141 2015 2016 2017 20182 2019 2020 2021 2022 2023 Net sales MEUR 2,161 2,236 2,726 2,865 2,989 3,104 3,399 3,302 3,575 4,479 4,169 Comparable growth3 3% 6% 4% 4% 3% 5% 6% -2% 7% 15% -2% Adjusted EBITDA4 MEUR 242 259 342 382 390 399 456 473 488 597 590 Margin4 11.2%
Slide 39: Segment key figures (1/2)
Segment key figures (1/2) Fiber Packaging and Foodservice E-A-O have been integrated as on June 1, 2020 Foodservice Europe-Asia-Oceania Key figures (MEUR) 2016 2017 20181 2019 2020 2021 2022 2023 Long-term ambition Net sales 741.0 807.5 881.7 956.7 829.1 941.8 1,110.7 1,037.2 Comparable growth 5% 4%
Slide 40: Segment key figures (2/2)
Segment key figures (2/2) North America Key figures (MEUR) 2016 2017 20181 2019 2020 2021 2022 2023 Long-term ambition Net sales 1,005.1 1,000.4 1,002.7 1,152.7 1,138.9 1,160.3 1,468.3 1,457.9 Comparable growth 6% 2% 5% 9% 1% 6% 14% 2% 5-6% Adjusted EBIT 107.6 104.1 73.0 111.4 136.6 139.1 171.6 187.
Slide 41: Comparable net sales growth by business segment
Comparable net sales growth by business segment Quarterly Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Foodservice E-A- -2% 40% 2% 12% 18% 18% 22% 15% 11% 5% -3% -5% -5% -6% O North America -2% 9% 5% 11% 24% 14% 10% 10% 2% 1% 1% 4% -3% -2% Flexible Packaging 0%
Slide 42: Investments have enabled capabilities and technologies for the future
Our investments have enabled us to build capabilities and technologies for the future Key expansions UAE, Malaysia Ireland CAPEX Net M&A Fiber 2,208 770 Short-run Huhtamaki SMF Lids Phase II 2023 flexible blueloop 2014–2023 packaging, (MEUR) Capsules Started 2023 Eastern Europe Paper straws, Technol
Slide 43: Organic investments will drive profitable growth
Our organic investments will drive our profitable growth and portfolio differentiation Investment profile changing (illustrative) Capex is focused on scaling our core, while investing in innovation (MEUR) Paperboard conversion Fiber 318 318 259 <2.0x >10% 199 215 197 204 224 X = 13-15% 147 <10% 2015
Slide 44: Efficient use of capital to create shareholder value
We will continue our efficient use of capital to create shareholder value Sources Uses Profit improvement Capex for organic growth Cash flow Working capital Investments Acquisitions to gain scale and efficiency capabilities Predictable and growing Leverage Net debt / adj. EBITDA Payout dividends - a
Slide 45: Continue to drive long-term profitable growth
We will continue to drive long-term Long-term 10-12% profitable growth ambition Adj. EBIT margin Key drivers for profitability improvement Adj. EBIT margin 11% Commercial excellence Value add of innovative Upgrading commercial technologies 10% 9,4 % 9,4 % practices and digitalization Margin accretio
Slide 46: Free cash flow and change in working capital
Free cash flow and change in working capital MEUR 2019 2020 2021 2022 2023 2024 150 128 122 109 104 100 83 71 71 52 57 54 50 43 38 29 28 7 6 0 -7 -18 -20 -25 -50 -46 -54 -100 -150 Q1 2019 Q3 2019 Q1 2020 Q3 2020 Q1 2021 Q3 2021 Q1 2022 Q3 2022 Q1 2023 Q3 2023 Q1 2024 Free Cash Flow Change in Working
Slide 47: Net debt to adjusted EBITDA continued to decrease
Net debt to adjusted EBITDA continued to decrease Net debt, net debt/adj. EBITDA and gearing • Net debt/Adj. EBITDA at 2.0 Covenant level 3.75 • At the end of Q2 2024: • Cash and cash equivalents EUR 300 million 2.5 Ambition 2.4 2.3 • Unused committed credit facilities 1,426 1,453 2.2 2.1 2.0 2–3 av
Slide 48: Loan maturities
Loan maturities Debt maturity structure June 30, 2024 (EUR million) 700 600 • Average maturity 2.4 years at the 500 end of Q2 2024 (2.5 at the end of 400 Q2 2023) 300 200 100 0 2024 2025 2026 2027 2028 Later Lease liabilities Available unused committed facilities Drawn committed credit facilities Co
Slide 49: 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 continued predictable 1,05 0,89 0,92 0,94 1,00 dividend payout 0,80 0,84 0,66 0,73 Sales and margin 0,56 0,57 0,60 improvement in line with 0,44 0,46 0,34 0,38 ambitions Discipli
Slide 50: Sustainability and role of packaging
Sustainability and role of 5 packaging 52 Sep-Oct 2024 OVERVIEW | STRATEGY | SEGMENTS | FINANCIALS | SUSTAINABILITY | OTHER | Q2 REPORT
Slide 51: Changing consumer expectations
Changing consumer expectations – increased focus on making packaging sustainable, affordable and adaptable Sustainable Affordable Adaptable Consumers expect businesses to Consumers around the world are Consumers have adopted a more play bigger role protecting climate adjusting purchasing patterns to
Slide 52: Food is a major contributor to climate change
Food is a major contributor to climate change 80% Food production approx. 25% Global GHG emissions of global GHG emissions come from food systems 15% Transport and distribution 1/3 of the 10% food produced is lost or of global GHG emissions wasted come from wasted or 5% Packaging lost food 54 Sep-Oc
Slide 53: Small share of latte CO2 emissions come from the cup
Only a small share of CO2 emissions of a latte on-the-go come from the cup, and these can be halved by increasing recycling Energy to make the latte 4% Cup & lid 9% Coffee production 14% Milk production 73% CO2 of a latte on The CO2 emissions of the go paper cups can be halved by recycling all cups
Slide 54: The value of packaging is bigger than its environmental impact
The value of packaging is bigger than its impact on environment Packaging supports food Packaging helps secure Packaging helps prevent Packaging has driven from farm to fork, making it hygiene and food safety food loss and waste, in social and economic more accessible and for consumers around food s
Slide 55: Recyclable packaging and efficient collection infrastructure
In addition to recyclable packaging, Recyclable Collection, sorting Consumer Less waste in the consumer awareness packaging and recycling behaviour environment and an efficient infrastructure collection, sorting and recycling Recycling rates vary – significant potential to utilize valuable materials
Slide 56: Sustainability performance progressing in line with targets
Our sustainability performance continues to progress in line with our targets Targets displayed in the graphs are Huhtamaki group’s 2030 ambitions; GHG = greenhouse gas OVERVIEW | STRATEGY | SEGMENTS | FINANCIALS | SUSTAINABILITY | OTHER | Q2 REPORT 58 Sep-Oct 2024
Slide 57: We play to win by making packaging that is fit-for-purpose
We play to win by making packaging that is: Fit-for-purpose A sustainable solution Our packaging is engineered to provide the We offer the most sustainable available right functionality to protect each product alternative We choose the right material for each We want to be the partner of choice to o
Slide 58: Game-changing alternative sustainable packaging solutions
In practice this means we develop game-changing alternative sustainable packaging solutions Material positive Material / resource efficient Fully fiber-based cup and lid, Paper-based pushtab blister, Paper-based yogurt cup, replacing coated replacing aluminium replacing plastic-based paperboard and
Slide 59: blueloop focuses on scaling sustainable innovation
blueloop focuses on scaling sustainable innovation in proprietary technologies, driving value creation Recyclable, blueloop Fiber blueloop Flexibles compostable or reusable High precision fiber forming Technologies for recyclable mono-material Lower carbon technologies and barriers for complex struc
Slide 60: Scalable recycling pilots, closing the loop
Scalable recycling pilots, closing the loop The Cup Collective - An at-scale solution Accelerating plastic circularity in for paper cup recycling in Europe India Launched in Belgium with Stora Enso, Processing post-consumer multi-layered partnering with McDonalds, SNCB etc. plastics (MLP) to recycle
Slide 61: Comparing carbon footprints of single-use and multi-use systems
Comparing carbon footprints of single-use and multi-use systems END-OF-LIFE MANUFACTURING END-OF-LIFE MANUFACTURING -4,491 kg CO2 eq. 13,403 kg CO2 eq. 634 kg CO2 eq. 3,453 kg CO2 eq. Multi-use tableware systems generate over PLASTIC MULTI-USE PAPER-BASED TABLEWARE* 2.8 times higher CO2-e SINGLE-USE
Slide 62: Other
6 Other 64 Sep-Oct 2024 OVERVIEW | STRATEGY | SEGMENTS | FINANCIALS | SUSTAINABILITY | OTHER | Q2 REPORT
Slide 63: Largest shareholders and split of shareholding
Largest shareholders and split of shareholding Top 10 shareholders – Finnish only Split of shareholding 40,9% 43,8% 15,3% Finnish institutions, companies and organizations Households Foreign and nominee-registered shareholders 65 Sep-Oct 2024 OVERVIEW | STRATEGY | SEGMENTS | FINANCIALS | SUSTAINABIL
Slide 64: Foreign shareholding and distribution by geography
Foreign shareholding and distribution by geography 60,000 52% 55,000 50% 50,000 48% 45,000 40,000 46% 35,000 44% 30,000 42% 25,000 20,000 40% 01/2017 04/2017 07/2017 10/2017 01/2018 04/2018 07/2018 10/2018 01/2019 04/2019 07/2019 10/2019 01/2020 04/2020 07/2020 10/2020 01/2021 04/2021 07/2021 10/202
Slide 65: Global Executive Team
Global Executive Team Charles Héaulmé Thomas Geust Fredrik Davidsson Marco Hilty Ann O’Hara President and CEO CFO President, Fiber Foodservice President, Flexible Packaging President, North America EAO Salla Ahonen Marina Madanat Sami Pauni Johan Rabe Ingolf Thom EVP, Sustainability & EVP, Strategy
Slide 66: Board of Directors
Board of Directors Pekka Vauramo Kerttu Tuomas Mercedes Alonso Doug Baillie Robert K. Chairman of the Vice-Chairman Beckler Board HR AC AC HR AC Born 1957, Finnish citizen Born 1957, Finnish citizen Born 1966, Spanish and Swiss citizen Born 1955, U.K. citizen Born 1961, U.S. citizen Starting date: A
Slide 67: Variable remuneration earning opportunity and performance measures
Variable remuneration earning opportunity and performance measures Short-term incentive plan 2023 Criteria weighting Adjusted EBIT 50% Criteria Free Cash Flow 30% Global Sustainability and Safety Index 20% Long-term incentive plan Maximum earning Performance Pay-out year Achievement (% of Share pric
Slide 68: Last quarterly report
7 Last quarterly report 70 Sep-Oct 2024 OVERVIEW | STRATEGY | SEGMENTS | FINANCIALS | SUSTAINABILITY | OTHER | Q2 REPORT
Slide 69: Continued improvement in operational profitability
Continued improvement in operational profitability Half-yearly report 2024 Charles Héaulmé President and CEO Thomas Geust CFO OVERVIEW | STRATEGY | SEGMENTS | FINANCIALS | SUSTAINABILITY | OTHER | Q2 REPORT
Slide 70: Q2 2024: Continued improvement in operational profitability
Q2 2024: Continued improvement in operational profitability Market trends − Some signs of increasing demand, with differences between geographies and categories. Improvement in on-the-shelf categories (food and everyday necessities), while on-the-go categories (hospitality and restaurants) softer −
Slide 71: Efficiency program well underway
Efficiency program well underway and contributing to Q2 2024 profitability improvement Program targets MEUR 100 savings in 2024-26 Execution progressed as expected in Q2 2024 Sourcing • Efficiency program leading to savings of appr. EUR 100 • Initiatives in execution in all four areas, achieving in
Slide 72: Business performance
Business performance 74 Sep-Oct 2024 OVERVIEW | STRATEGY | SEGMENTS | FINANCIALS | SUSTAINABILITY | OTHER | Q2 REPORT
Slide 73: Comparable net sales slightly impacted by soft volumes
Q2 2024: Comparable net sales slightly impacted by soft volumes Development of net sales in Q2 2024 Net sales decreased 1% in Q2 2024 (EUR million) • Comparable net sales growth -1% 0 0 0 0 (-2 % in emerging markets). Volumes and pricing close to the previous year’s level 1 037 • 0% from acquisition
Slide 74: H1 2024: Pricing weighing on comparable net sales development
H1 2024: Pricing weighing on comparable net sales development Development of net sales in H1 2024 Net sales decreased 3% in H1 2024 (EUR million) • Comparable net sales growth -2% (-3 % in emerging markets). Volumes 0 0 0 0 close to the previous year’s level, pricing impact slightly negative 3 136 •
Slide 75: 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% — 4% — 4-5% North America 1% 4% -3% -2% — 1% — 5-6% Flexible Packaging -11% -9% -1% 2% — -9% — 6-7% Fiber Packaging 4% 2% 1% 3% — 9
Slide 76: Adjusted EBIT increased
Adjusted EBIT increased MEUR Q3 24 Q3 23 Change Q1-Q3 24 Q1-Q3 23 Change Net sales -2 041,4 1 037,2 <-100% 0,0 3 136,0 -100% Adjusted EBIT1 -204,3 100,3 <-100% 0,0 285,1 -100% Margin 10,0% 9,7% 0,0% 9,1% 2 Adjusted EPS, EUR ######## 0,57 <-100% 0,00 1,64 -100% Capital expenditure -76,7 69,7 <-100% 8
Slide 77: Business segment review
Business segment review 79 Sep-Oct 2024 OVERVIEW | STRATEGY | SEGMENTS | FINANCIALS | SUSTAINABILITY | OTHER | Q2 REPORT
Slide 78: Foodservice EAO: Market softness weighing on performance
Foodservice EAO: Market softness weighing on performance Key figures, MEUR Q3 24 Q3 23 Change Net sales and comparable growth (EUR million & %) Net sales -493,4 259,9 <-100% 256 271 260 Comparable growth — -3% 241 252 250 Adjusted EBIT1 -45,3 26,7 <-100% 2023 Margin 9,2% 10,3% 2024 11 % -6 % -3 % -5
Slide 79: North America: Continued solid performance in a flat market
North America: Continued solid performance in a flat market Key figures, MEUR Q3 24 Q3 23 Change Net sales and comparable growth (EUR million & %) Net sales -714,3 348,4 <-100% 358 373 370 378 Comparable growth — 1% 344 348 Adjusted EBIT1 -100,9 45,9 <-100% 2023 Margin 14,1% 13,2% 2024 2% -2 % 1% 4%
Slide 80: Flexible Packaging: Volume growth supporting profitability improvement
Flexible Packaging: Volume growth supporting profitability improvement Key figures, MEUR Q3 24 Q3 23 Change Net sales and comparable growth (EUR million & %) Net sales -661,1 344,2 <-100% Comparable growth — -11% 349 335 328 344 326 320 Adjusted EBIT 1 -42,5 24,7 <-100% 2023 Margin 6,4% 7,2% 2024 -5
Slide 81: Fiber Packaging: Solid net sales growth and profitability
Fiber Packaging: Solid net sales growth and profitability Key figures, MEUR Q3 24 Q3 23 Change Net sales and comparable growth (EUR million & %) Net sales -138,8 81,4 <-100% 87 92 89 Comparable growth — 4% 85 86 81 Adjusted EBIT1 -21,0 10,2 <-100% 2023 Margin 15,1% 12,5% 2024 17 % 3% 4% 2% 1% Comp.
Slide 82: Financial review
Financial review 84 Sep-Oct 2024 OVERVIEW | STRATEGY | SEGMENTS | FINANCIALS | SUSTAINABILITY | OTHER | Q2 REPORT
Slide 83: Improved margins driving earnings
Improved margins driving earnings MEUR Q3 24 Q3 23 Change Q1-Q3 24 Q1-Q3 23 Change Net sales -2 041,4 1 037,2 <-100% 0,0 3 136,0 -100% Q2 commentary: 1 Adjusted EBITDA -305,4 149,0 <-100% 0,0 430,6 -100% • Higher EBIT driven by actions Margin 1 15,0% 14,4% 0,0% 13,7% 2 to improve cost efficiency Adj
Slide 84: Currency impact remained negative but moderating
Currency impact remained negative but moderating 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) USD 1,08 0,00 100 % 1,09 1,05 1,11 1,08 0,00 100% Foreign currency INR 89,24 0,00 100 % 89,71 87,64 92,45 90,13
Slide 85: Net debt to adjusted EBITDA continued to decrease
Net debt to adjusted EBITDA continued to decrease Net debt, net debt/adj. EBITDA and gearing • Net debt/Adj. EBITDA at 2.0 Covenant level 3.75 • At the end of Q2 2024: • Cash and cash equivalents EUR 300 million 2,5 Ambition 2,4 2,3 • Unused committed credit facilities 1 426 1 453 2,2 2,1 2.0 2–3 av
Slide 86: Loan maturities
Loan maturities Debt maturity structure June 30, 2024 (EUR million) 700 600 • Average maturity 2.4 years at the 500 end of Q2 2024 (2.5 at the end of 400 Q2 2023) 300 200 100 0 2024 2025 2026 2027 2028 Later Lease liabilities Available unused committed facilities Drawn committed credit facilities Co
Slide 87: Free cash flow increased
Free cash flow increased Free cash flow bridge (EUR million) 416 Cash flow driven by: 193 • Higher reported EBITDA 175 108 • Negative impact from change in 75 0 6 0 0 7 working capital -8 • Lower capex -16 -45 -49 -55 -204 Reported Change in Net financial Taxes Capital Proceeds Other cash Free cash
Slide 88: Financial position improving
Financial position improving MEUR Sep 2024 Sep 2023 • Working capital down yoy, Total assets -7 907 4 829 but increased vs year-end 2023 due to higher inventories Working capital 0 644 • Net debt and gearing Net debt 0 1 332 decreased Equity & non-controlling interest -7 907 1 945 • Adjusted ROI imp
Slide 89: 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% — 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% 11,9% 13-15
Slide 90: Looking forward
Looking forward 92 Sep-Oct 2024 OVERVIEW | STRATEGY | SEGMENTS | FINANCIALS | SUSTAINABILITY | OTHER | Q2 REPORT
Slide 91: Outlook for 2024 and short-term risks and uncertainties
Outlook for 2024 and short-term risks and uncertainties Outlook for 2024 (unchanged) Short-term risks and uncertainties The Group’s trading conditions are expected to Decline in consumer demand, inflation in key cost improve compared to 2023. Volatility in the items (including raw materials, labor,
Slide 92: Upcoming events in 2024
Upcoming events in 2024 September 4, October 24, 2024 2024 Site visit to Q3 2024 Hammond Interim Report (near Chicago) 94 Sep-Oct 2024 OVERVIEW | STRATEGY | SEGMENTS | FINANCIALS | SUSTAINABILITY | OTHER | Q2 REPORT
Slide 93: 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 94: Thank You
Thank You ir@huhtamaki.com OVERVIEW | STRATEGY | SEGMENTS | FINANCIALS | SUSTAINABILITY | OTHER | Q2 REPORT