Slide 1: Site visit – Alf
Site visit – Alf September 28, 2023
Slide 2: Recap of strategy
Recap of strategy Charles Héaulmé President & CEO 2 September 28, 2023 Alf site visit
Slide 3: Our 2030 Profitable Growth Strategy
Our 2030 Profitable Growth Strategy Scale up profitable Develop blueloop™ Drive world-class core businesses sustainable innovation operational in partnership with our performance customers Smart, fit-for purpose sustainable packaging solutions Powered by strategic capabilities Safety Sustainability
Slide 4: We have a strong and complementary portfolio
We have a strong and complementary portfolio Healthcare FMCG Foodservice Retail • Serving customers with several technologies, Smooth molded fiber providing them with the Fiber best solution for each Rough molded fiber requirement Flexibles Flexible packaging • Growth through scaling operations and
Slide 5: Molded fiber is together with paperboard technology the strategic answer to rigid plastic substitution needs
Molded fiber is together with paperboard technology the strategic answer to rigid plastic substitution needs Key attributes that customers and Increasing market demands for packaging is an consumers require from packaging opportunity to create value Sustainable solutions - Renewable, Sustainable fib
Slide 6: Huhtamaki investment case – increasing our long-term growth and profitability ambition
Huhtamaki investment case – increasing our long-term growth and profitability ambition Huhtamaki is a market and technology innovation leader for essential packaging, creating value through: Absolute EPS growth • Attractive portfolio of sustainable core businesses to capture strong underlying market
Slide 7: Driving growth with fiber products
Driving growth with fiber products Fredrik Davidsson President, Fiber Foodservice Europe-Asia-Oceania 7 September 28, 2023 Alf site visit
Slide 8: Market leader with solid growth potential
Market leader with solid growth potential Foodservice EAO Fiber Packaging Foodservice FMCG Retail Net sales 363 MEUR 53% of sales 9% of sales 38% of sales Net sales 1,111 MEUR Adj. EBIT margin 9.5% Adj. EBIT margin 11.0% Employees 6,116 Manufacturing sites 32 100-110 BEUR markets growing at 3-5% p.a
Slide 9: Overview of products and customers
Overview of products and customers Paperboard Foodservice Molded fiber FMCG Official photo by Nespresso Distribution and retail Legacy plastics 9 September 28, 2023 Alf site visit
Slide 10: Strength of our complementary portfolio – case McDonald’s
Strength of our complementary portfolio – case McDonald’s • McDonald’s is one of our key customers, with a decades-long partnership • We currently serve McDonald’s in more than 50 markets globally • Product offering spanning several categories and technologies 10 September 28, 2023 Alf site visit
Slide 11: Move to fiber gaining global momentum, driven by sustainability
Move to fiber gaining global momentum, driven by sustainability • Molded fiber packaging is a rapidly growing segment • Sustainability requirement driving growth, as Foodservice and FMCG players are looking to replace rigid plastics • Transition also supported by regulation in several markets 11 Sep
Slide 12: Fiber at the core of our business – more opportunities emerging
Fiber at the core of our business – more opportunities emerging Rough-Molded Fiber Smooth-Molded Fiber Huhtamaki has a strong position in molded fiber • proprietary technologies • high-precision capabilities • Established technology suitable for • High-end proprietary technology for • unique capabil
Slide 13: FMCG & Foodservice offer attractive growth opportunities in rigid plastics substitution
FMCG & Foodservice offer attractive growth opportunities in rigid plastics substitution • Several expansion Our current offering Potential new applications opportunities beyond current products • Can be served with different molded fiber and paperboard solutions • Expansion can be done with own capa
Slide 14: Huhtamaki is the pioneer in fiber lids and is well positioned to grow profitably
Huhtamaki is the pioneer in fiber lids and is well positioned to grow profitably Market* Our position • The lid market is today still mainly in plastic – • Significant market share with ambition to estimated at around 30 bn pieces continue leading the transition to fiber • Fiber lids penetration is
Slide 15: Huhtamaki is a proven choice for SMF with a strong reputation among our global customers
Huhtamaki is a proven choice for SMF with a strong reputation among our global customers Manufacturing Expertise Cutting Edge Technologies Fiber Innovation Hub Products many years in market • Largest molded fiber • Early expansion into smooth • Global molded fiber • Supplying today Europe-Asia- manu
Slide 16: We address the plastic substitution opportunity through two complementary streams
We address the plastic substitution opportunity through two complementary streams Molded fiber Paperboard • We have invested in our Center of Excellence in • We have invested in our Center of Excellence in Leeuwarden, Netherlands and Alf, Germany Nules, Spain 16 September 28, 2023 Alf site visit
Slide 17: We will scale and optimize our core business, while investing in breakthrough innovation
We will scale and optimize our core business, while investing in breakthrough innovation Long-term ambition How we get there Fiber Packaging Foodservice EAO World-class operational performance in our core businesses 4-5% 10-12% 3-4% 11-12% Invest in capacity in RMF Comparable Adjusted Comparable Adj
Slide 18: Alf site
Alf site Markus Kühn Site manager 18 September 28, 2023 Alf site visit
Slide 19: Alf site
Alf site Current production • 7 fiber lines -> aiming to double • 8 plastics lines • 11,108 m² production spaces Highly automated production and logistics More than 270 employees 19 September 28, 2023 Alf site visit
Slide 20: The site has a long industrial history
The site has a long industrial history 1826 - 1885 Steel (Ferdinand Remy & Co) 1885 - 1957 Carpets, Ropes, Felt (Seilerwarenfabrik AG, Hanf Union AG, Viersener AG) 1957 - 1964 Tarred Board (Deutsche Pepeka AG) 1965 -> Plastic (Bellaplast, Polysar, Polarcup/Huhtamaki) 2020 -> Fiber (Huhtamaki) 20 Sep
Slide 21: The journey of a fiber lid
The journey of a fiber lid Raw materials Production Logistics Customer Forest Paper mill Pulping Forming Finishing Palletizing Shuttle Warehouse Customer 21 September 28, 2023 Alf site visit
Slide 22: Our production layout
Our production layout Once legacy plastics line are changed to fiber lines, Alf will have 14 lines CSS 2 Line10 Line10 Hall 2B Hall 2A Hall 1 (converted hall from plastic to fiber) Hall 3 (new building) • Currently plastics lines • Converted from plastics to fiber • 4 lid lines and 1 CSS in use • Ne
Slide 23: Thank you!
Thank you! September Alf 23 site visit 28, 2023