Huhtamaki Oyj · OMXHEX:HUH1V
Huhtamaki Oyj — Non-Deal Roadshow (June 2024)
99 slides from Huhtamaki Oyj's roadshow presentation, June 2024
Slide 1: Becoming the first choice in sustainable packaging solutions
Becoming the first choice in sustainable packaging solutions Roadshow presentation May-June 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 May-Jun 2024 Roadshow presentation
Slide 3: Overview
1 Overview 3 May-Jun 2024 Roadshow presentation
Slide 4: A strong local presence, delivering for our customers, globally
A strong local presence, delivering for our customers, globally (figures for 2023) NET SALES €4.2B ADJUSTED EBIT MARGIN 9.4% OPERATING LOCATIONS 103 OPERATING COUNTRIES 37 EMPLOYEES 17,910 Manufacturing unit Sales unit Distribution center Head office 4 May-Jun 2024 Roadshow presentation
Slide 5: 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 Flexibles Fiber Packaging technology Non-integrated Global Category Global Leader Global Leader Leader 5 May-Jun 2024 Roadshow pre
Slide 6: Products, customers and competitors per segment
Products, customers and competitors per segment Fiber Packaging and Foodservice E-A-O have been integrated as of June 1, 2020 Fiber Packaging Foodservice E-A-O North America Flexible Packaging Our products Our customers • Graphic Packaging • Westrock • Amcor • Dai Nippon Key • Hartmann • Local playe
Slide 7: We operate through three business areas and four reporting segments
We operate through three business areas and four reporting segments Fiber Packaging and Foodservice E-A-O have been integrated as of June 1, 2020 Foodservice Fiber Packaging North America Flexible Packaging Europe-Asia-Oceania 11 manufacturing units 20 manufacturing units 19 manufacturing units 22 m
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 Innovati
Slide 9: Our long-term financial ambitions
Our long-term financial ambitions Group Segments Comparable Adj. EBIT Adj. RONA Absolute EPS growth growth margin Foodservice EAO 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 Packag
Slide 10: Our 2030 sustainability ambitions
Our 2030 sustainability ambitions Our ambition First choice in sustainable packaging solutions 100% >80% 100% >90% 100% Carbon neutral production of products designed renewable or recycled of fiber from recycled of non-hazardous renewable and science-based to be recyclable, materials or certified so
Slide 11: Huhtamaki investment case
Huhtamaki investment case 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 opp
Slide 12: Strategy
2 Strategy 12 May-Jun 2024 Roadshow presentation
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 for Huhtamaki
Packaging paradigm shift creates profitable growth opportunities for Huhtamaki Consumers Sustainability everywhere, are accelerating agenda driving industry transformation, for sustainable, affordable, adaptable creating opportunities in sustainable and functional packaging solutions Customers Packa
Slide 15: Consumer demand for packaging is expected to grow, with further opportunities in sustainable innovation
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 Technologies for
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
Slide 18: We are on a transformation journey to become the first choice in sustainable packaging
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 Innovati
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 in proprietary technologies
blueloop™ focuses on scaling sustainable innovation in proprietary technologies, driving value creation blueloop™ Fiber blueloop™ Flexibles High precision fiber forming Technologies for recyclable mono-material technologies and barriers for complex structures in Polyethylene, Paper, compostable appl
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 Focusing on technology and development barrier development Retail Foodservice FMCG SMF portfolio includes established high-volume and developing high- Smooth Molded
Slide 23: We are introducing new sustainable blueloop solutions, many in partnership with customers
We are introducing new sustainable blueloop™ solutions, many in partnership with our customers Recyclable solutions Home compostable solutions ICON™ ice-cream packaging Mono-PET PushTab™ blister lids Paper based cup lids for Partnership with Nespresso technology with repulpable that run on existing
Slide 24: We are also 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 25 May-Jun 2024 Roadshow presentation
Slide 26: Segments
3 Segments 26 May-Jun 2024 Roadshow presentation
Slide 27: Fiber Foodservice - Overview
Fiber Foodservice - Overview Foodservice - 53% of sales FMCG - 9% of sales Retail - 38% of sales Manufacturing unit Sales unit Distribution center 27 May-Jun 2024 Roadshow presentation
Slide 28: Fiber Foodservice - Financial performance
Fiber Foodservice - Financial performance Global Fiber leader We have recovered growth and improved Global paperboard conversion* leader profitability Foodservice EAO Fiber Packaging Net sales and adj. EBIT margin Net sales 1,037 MEUR Net sales 343 MEUR 1,200 14% 12.2 % 11.6 % 11.0 % 10.9 % 11.0 % 1
Slide 29: We are investing in sustainable innovation across our 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 30: Fiber Foodservice - Long-term ambitions
Fiber Foodservice - Long-term ambitions Fiber Packaging long-term ambition How we get there Core businesses 3-4% 11-12% 14-16% Further improve productivity and operational Comparable Adjusted growth RONA performance in legacy Paperboard operations EBIT margin Expand in RMF through incremental innova
Slide 31: North America - Overview
North America - Overview Retail Tableware - 48% of sales Foodservice - 34% of sales FMCG - 18% of sales Manufacturing unit 31 May-Jun 2024 Roadshow presentation
Slide 32: North America - Financial performance
North America - Financial performance Global Fiber leader We are delivering strong financial performance Global Paperboard Conversion* leader Net sales Adjusted EBIT margin Net sales and adj. EBIT margin 1,800 12.9 % 14% 1,458 MEUR 12.9% 1,600 12.0 % 12.0 % 11.7 % 12% Employees Manufacturing units 1
Slide 33: We will continue to develop our core businesses
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 34: Regulation and consumer preferences create additional 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 the molded Investing in Rough Molded Fiber in Smooth Molded have introduced varying capacities for egg Fiber capacities
Slide 35: North America - Long-term ambitions
North America - Long-term ambitions North America long-term ambition How we get there Partner with strategic customers to continue to 5-6% 11-12% introduce new products and systems and help them Comparable Adjusted achieve sustainable solutions growth EBIT margin Build on our continuous improvement
Slide 36: Flexible Packaging - Overview
Flexible Packaging - Overview Food & beverage - 61% of sales Home & personal care - 29% of sales Healthcare/Other - 10% of sales Manufacturing unit Sales unit 36 May-Jun 2024 Roadshow presentation
Slide 37: Flexible Packaging - Financial performance
Flexible Packaging - Financial performance Global category leader We are delivering growth, but need to address profitability Net sales Adjusted EBIT margin Net sales and adj. EBIT margin 1,800 9% 1,341 MEUR 6.6% 1,600 8.1 % 7.7 % 8% 7.1 % 6.8 % 6.6 % Employees Manufacturing units 1,400 6.3 % 7% 7,6
Slide 38: We are taking immediate actions to transform our operational performance
We are taking immediate actions to transform our operational performance Take structural measures to improve Strengthen best practices and our cost position capabilities Operational performance program Implement productivity actions Health and Fire Safety Long-term ambition to Optimize manufacturing
Slide 39: We are rolling out our 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 blueloop™ market opportunity proposition blueloop™ flexibles opens a market opportunity of Cost-effective solutions in mono- 30-70 BEUR in sustai
Slide 40: Flexible Packaging - Long-term ambitions
Flexible Packaging - Long-term ambitions Huhtamaki Flexible Packaging long-term How we get there ambition Operations Improve productivity, reduce waste, optimize network 6-7% 9-11% Complete Elif integration Comparable Adjusted growth EBIT margin Capabilities Improve commercial and operational capabi
Slide 41: Financials
4 Financials 41 May-Jun 2024 Roadshow presentation
Slide 42: 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 43: 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 44: 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 45: Comparable net sales growth by business segment
Comparable net sales growth by business segment Quarterly Q1 20 Q2 20 Q3 20 Q4 20 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 Foodservice E-A-O -4% -28% -1% -7% -2% 40% 2% 12% 18% 18% 22% 15% 11% 5% -3% -5% -5% North America 9% -5% 4% -2% -2% 9% 5% 11% 24% 14% 10% 1
Slide 46: Our investments have enabled us to build 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 2,208 770 Fiber Short-run Huhtamaki flexible blueloop 2014–2023 packaging, (MEUR) SMF Lids Phase II 2023 Eastern Europe Paper straws, Technology Europe expansion C
Slide 47: Our organic investments will drive our profitable growth and portfolio differentiation
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 48: We will continue our efficient use of capital to create shareholder value
We will continue our efficient use of capital to create shareholder value Sources Uses Capex for organic growth Profit improvement Cash flow Investments Acquisitions to gain scale and Working capital efficiency capabilities Predictable and growing Leverage Net debt / adj. EBITDA ambition Payout divi
Slide 49: We will 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 technologies 10% Upgrading commercial Margin accretion through 9.4 % 9.4 % practices and digit
Slide 50: 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 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 Ca
Slide 51: Net debt to adjusted EBITDA decreased
Net debt to adjusted EBITDA decreased Net debt, net debt/adj. EBITDA and gearing • Net debt/Adj. EBITDA at 2.1 Covenant level 3.75 • At the end of Q1 2024: • Cash and cash equivalents EUR 354 million (264) 2.4 2.5 Ambition 2.3 2.2 • Unused committed credit 1,426 1,453 2.1 2–3 facilities available EU
Slide 52: Loan maturities
Loan maturities Debt maturity structure March 31, 2024 (EUR million) 700 • Average maturity 2.6 years at the 600 end of Q1 2024 (2.8 at the end of 500 Q1 2023) 400 300 200 100 0 2024 2025 2026 2027 2028 Later Lease liabilities Available unused committed facilities Drawn committed credit facilities C
Slide 53: 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 dividend 1.05 payout 0.94 1.00 0.92 0.80 0.84 0.89 Sales and margin improvement 0.73 0.60 0.66 in line with ambitions 0.56 0.57 0.38 0.44 0.46 Disciplined c
Slide 54: Sustainability and role of packaging
Sustainability and role of 5 packaging 54 May-Jun 2024 Roadshow presentation
Slide 55: Sustainability-driven legislation is impacting packaging development, globally
Sustainability-driven legislation is impacting packaging development, globally Drive in Climate & environment reduction of Focus on waste resulting reduction of in push for CO2 emissions Energy crisis re-usables Materials & waste Reduction in Focus on use of management of plastics/plastic Food suppl
Slide 56: Changing consumer expectations
Changing consumer expectations – increased focus on making packaging sustainable, affordable and adaptable Sustainable Affordable Adaptable Consumers expect business Consumers around the Consumers have adopted to play bigger world are adjusting a more integrated mix of role protecting climate & purc
Slide 57: The value of packaging is bigger than its impact on environment
The value of packaging is bigger than its impact on environment Packaging makes food more accessible and affordable Packaging Packaging helps enables social and secure hygiene economic progress and food safety Packaging helps prevent food loss and waste 57 May-Jun 2024 Roadshow presentation
Slide 58: We have made good progress on our sustainability journey
We have made good progress on our sustainability journey; we still have work to do Targets displayed in the graphs are Huhtamaki group’s 2030 ambitions; GHG = greenhouse gas 58 May-Jun 2024 Roadshow presentation
Slide 59: We play to win by making packaging that is:
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 60: We develop game-changing alternative sustainable packaging solutions
In practice this means we develop game-changing alternative sustainable packaging solutions 1 Material positive Fully fiber-based cup and lid, Paper-based pushtab blister, Paper-based yogurt cup, replacing coated 2 Material / resource efficient paperboard and plastic replacing aluminium replacing pl
Slide 61: Packaging accounts for only 5% of greenhouse-gas emissions in food systems
Packaging accounts for only 5% of green-house-gas emissions in food systems, low recycling rates remain a challenge Global greenhouse gas emissions from food systems. Food systems account for 26% of GHG emissions. Wasted food for 10%. Packaging accounts for 5% of green-house-gas emissions in Packagi
Slide 62: 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 63: 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 64: Food is a major contributor to climate change
Food is a major contributor to climate change Global 1/3 of the food GHG emissions produced is lost or wasted approx. 25% 10% of global GHG emissions come from of global GHG emissions come from wasted food systems or lost food Source: CGIAR Research Program on Climate Change, Agriculture and Food Se
Slide 65: Packaging accounts for approx. 5% of food's CO2 footprint
Packaging accounts for approx. 5% of food’s CO2 footprint 80% 15% 5% Food production Transport and distribution Packaging 65 May-Jun 2024 Roadshow presentation
Slide 66: Only a small share of CO2 emissions of a latte on-the-go 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% CO2 of a latte Milk production 73% on the go The CO2 emissions of paper cups can be halved The fiber in our paper
Slide 67: Consumer awareness and efficient collection, sorting and recycling infrastructure are required
In addition to recyclable packaging, consumer awareness and an efficient collection, sorting and recycling infrastructure are required to solve littering and waste challenges Recyclable Collection, sorting Consumer Less waste in the packaging and recycling behaviour environment infrastructure 67 May
Slide 68: Recycling rates vary – significant potential to utilize valuable materials
Recycling rates vary – significant potential to utilize valuable materials Plastic packaging Paper Glass Metal ~14% ~70% ~50-80% ~30-90% Recycled Recycled Recycled Recycled Source: Smithers Pira: Future Lifecycles of Packaging Recycling to 2023 68 May-Jun 2024 Roadshow presentation
Slide 69: Other
6 Other 69 May-Jun 2024 Roadshow presentation
Slide 70: Largest shareholders and split of shareholding
Largest shareholders and split of shareholding Shareholder Number of shares % of total shares Change Change % Split of shareholding 1. Finnish Cultural Foundation 11,319,080 10.50 % 0 0.00 % 2. Varma Mutual Pension Insurance Company 4,788,051 4.44 % 230,000 5.05 % 3. Ilmarinen Mutual Pension Insuran
Slide 71: Foreign shareholding and distribution by geography
Foreign shareholding and distribution by geography 60,000 54% 55,000 52% 50,000 50% 45,000 48% 40,000 46% 35,000 44% 30,000 25,000 42% 20,000 40% 01/2016 07/2016 01/2017 07/2017 01/2018 07/2018 01/2019 07/2019 01/2020 07/2020 01/2021 07/2021 01/2022 07/2022 01/2023 07/2023 01/2024 Total number of sh
Slide 72: 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 73: 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 74: Last quarterly report
7 Last quarterly report 74 May-Jun 2024 Roadshow presentation
Slide 75: Improved operational profitability
Improved operational profitability Interim Report Q1 2024 Charles Héaulmé, President and CEO Thomas Geust, CFO 75 May-Jun 2024 Roadshow presentation
Slide 76: Improved operational profitability
Improved operational profitability • Market trends – Demand trend improving from H2 2023 with variations by product category and geography – The Israel-Hamas war and Red Sea crisis impacted both the Foodservice E-A-O and Flexible Packaging segments • Financial performance – Comparable net sales -2%;
Slide 77: Efficiency program well underway and contributing to Q1 2024 profitability improvement
Efficiency program well underway and contributing to Q1 2024 profitability improvement Program targets MEUR 100 savings in 2024-26 Execution progressed as expected in Q1 2024 Sourcing • Efficiency program leading to savings of appr. EUR 100 • Initiatives in execution in all four areas, achieving in
Slide 78: Business performance
Business performance 78 May-Jun 2024 Roadshow presentation
Slide 79: Q1 2024: Sales volumes stabilized, net sales weighed on by currencies and pricing
Q1 2024: Sales volumes stabilized, net sales weighed on by currencies and pricing Development of net sales in Q1 2024 Net sales decreased 4% in Q1 2024 (EUR million) • Comparable net sales decreased 2% -26 (-3 % in emerging markets). Flat 0 0 -17 volumes but decrease in sales prices • -2% currency i
Slide 80: Signs of demand improvement but with variations between segments
Signs of demand improvement but with variations between segments Long-term Comparable net sales growth Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 ambitions Foodservice E-A-O 11% 5% -3% -5% -5% 4-5% North America 2% 1% 1% 4% -3% 5-6% Flexible Packaging -5% -11% -11% -9% -1% 6-7% Fiber Packaging 17% 7% 4% 2% 1% 3-
Slide 81: Adjusted EBIT supported by actions to improve profitability
Adjusted EBIT supported by actions to improve profitability MEUR Q1 24 Q1 23 Change Net sales 1,003.9 1,047.1 -4% Adjusted EBIT1 98.8 92.1 7% Margin 9.8% 8.8% Adjusted EPS, EUR2 0.55 0.51 7% Capital expenditure 36.6 65.2 -44% Significant growth in adj. EBIT: • Adj. EBIT increased and margin improved
Slide 82: Business segment review
Business segment review 82 May-Jun 2024 Roadshow presentation
Slide 83: Foodservice EAO: Increased margin despite geopolitical headwinds
Foodservice EAO: Increased margin despite geopolitical headwinds Key figures, MEUR Q1 24 Q1 23 Change Net sales and comparable growth (EUR million & %) Net sales 241.1 256.2 -6% 256 271 260 Comparable growth -5% 11% 241 250 Adjusted EBIT1 22.0 21.2 4% 2023 Margin 9.1% 8.3% 2024 11% -5% 5% -3% -5% Co
Slide 84: North America: Significant profitability improvement in Q1 with flat volumes
North America: Significant profitability improvement in Q1 with flat volumes Key figures, MEUR Q1 24 Q1 23 Change Net sales and comparable growth (EUR million & %) Net sales 344.1 358.1 -4% 358 373 378 Comparable growth -3% 2% 344 348 Adjusted EBIT 1 47.9 42.5 13% 2023 Margin 13.9% 11.9% 2024 2% -3%
Slide 85: Flexible Packaging: Continued profitability recovery with flat volumes
Flexible Packaging: Continued profitability recovery with flat volumes Key figures, MEUR Q1 24 Q1 23 Change Net sales and comparable growth (EUR million & %) Net sales 335.2 349.1 -4% Comparable growth -1% -5% 349 335 328 344 320 Adjusted EBIT 1 21.6 21.4 1% 2023 Margin 6.4% 6.1% 2024 -5% -1% -11% -
Slide 86: Fiber Packaging: Sales volumes turned positive
Fiber Packaging: Sales volumes turned positive Key figures, MEUR Q1 24 Q1 23 Change Net sales and comparable growth (EUR million & %) Net sales 85.0 86.9 -2% Comparable growth 1% 17% 87 85 86 89 81 Adjusted EBIT1 8.6 10.5 -18% 2023 Margin 10.1% 12.1% 2024 17% 1% 7% 4% 2% Comp. Capital expenditure 3.
Slide 87: Financial review
Financial review 87 May-Jun 2024 Roadshow presentation
Slide 88: Adjusted EBIT growth continued with improved margins
Adjusted EBIT growth continued with improved margins Q1 2024: MEUR Q1 24 Q1 23 Change • Continued adj. EBIT growth and margin improvement Net sales 1,003.9 1,047.1 -4% Adjusted EBITDA 1 149.0 140.5 6% • Reported EBIT weighed on by IAC’s, particularly the China restructuring 1 and Malaysia site closu
Slide 89: Currency impact remained negative
Currency impact remained negative Average Average Change in Change in Closing rates rate rate average closing Q1 23 Q1 24 rate Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 rate (YoY) USD 1.07 1.09 -1 % 1.09 1.09 1.05 1.11 1.08 1% Foreign currency INR 88.25 90.18 -2 % 89.36 89.71 87.64 92.45 90.13 -1% translation i
Slide 90: Continued to deleverage balance sheet
Continued to deleverage balance sheet Net debt, net debt/adj. EBITDA and gearing • Net debt/Adj. EBITDA at 2.1 Covenant level 3.75 • At the end of Q1 2024: • Cash and cash equivalents EUR 354 million (264) 2.4 2.5 Ambition • Unused committed credit facilities 2.3 2.2 1,426 1,453 2.1 2–3 available EU
Slide 91: Loan maturities
Loan maturities Debt maturity structure March 31, 2024 • Average maturity 2.6 years at the (EUR million) end of Q1 2024 (2.8 at the end of 700 Q1 2023) 600 500 400 300 200 100 0 2024 2025 2026 2027 2028 Later Lease liabilities Available unused committed facilities Drawn committed credit facilities C
Slide 92: Free cash flow decreased due to change in working capital
Free cash flow decreased due to change in working capital Free cash flow bridge Cash flow impacted by: (EUR million) 138 138 • Lower capex due to timing • Negative impact from other receivables and liabilities 38 43 10 5 2 0 -8 -9 -11 -12 -17 -37 -55 -65 Reported Change in Net financial Taxes Capita
Slide 93: Financial position continued to improve
Financial position continued to improve MEUR Mar 2024 Mar 2023 • The financial position strengthened during the quarter Total assets 4,768 4,787 • Most figures improving yoy Working capital 608 758 Net debt 1,249 1,426 Equity & non-controlling interest 2,000 1,927 Gearing 0.62 0.74 Adjusted ROI1 11.
Slide 94: Progress towards long-term financial ambitions
Progress towards long-term financial ambitions Long-term 2017 2018 2019 2020 2021 2022 2023 Q1 24 ambition Comparable net sales growth 3% 5% 6% -2% 7% 15% -2% -2% 5-6% Adjusted EBIT margin 9.0% 8.1% 8.6% 9.1% 8.8% 8.8% 9.4% 9.8% 10-12% Adj. ROI 13.6% 11.6% 12.3% 11.7% 11.3% 11.0% 11.2% 11.5% 13-15%
Slide 95: Looking forward
Looking forward 95 May-Jun 2024 Roadshow presentation
Slide 96: 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 97: Reporting schedule in 2024
Reporting schedule in 2024 July 25, 2024 October 24, 2024 Half-yearly Report 2024 Q3 2024 Interim Report September 4, 2024 Site visit to Hammond (near Chicago) 97 May-Jun 2024 Roadshow presentation
Slide 98: 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 99: Thank You
Thank You ir@huhtamaki.com in X @ Huhtamaki