Huhtamaki Oyj · OMXHEX:HUH1V
Huhtamaki Oyj — Non-Deal Roadshow (December 2024)
93 slides from Huhtamaki Oyj's roadshow presentation, December 2024
Slide 1: Becoming the first choice in sustainable packaging solutions
Becoming the first choice in sustainable packaging solutions Roadshow presentation November-December 2024
Slide 2: Contents
Contents I. Overview II. Strategy III. Segments IV. Financials V. Sustainability and role of packaging VI. Other VII. Latest quarterly report 2 Nov-Dec, 2024
Slide 3: Overview
1 Overview 3 Nov-Dec, 2024 OVERVIEW | STRATEGY | SEGMENTS | FINANCIALS | SUSTAINABILITY | OTHER | Q3 REPORT
Slide 4: This is Huhtamaki
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 busi
Slide 5: 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 5 Nov-Dec, 2024 OVERVIEW | STRATEGY |
Slide 6: Huhtamaki in figures
Net debt and Net debt/ Adjusted EBITDA Adjusted return on Huhtamäki 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 7: 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 7 Nov-Dec, 2024 OVERVIEW |
Slide 8: Segments 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 9: 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 10: 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 11: 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 12: 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 13: Strategy
2 Strategy 14 Nov-Dec, 2024 OVERVIEW | STRATEGY | SEGMENTS | FINANCIALS | SUSTAINABILITY | OTHER | Q3 REPORT
Slide 14: Protecting what matters: Packaging is essential for food and daily necessities
Protecting what matters: A shift in consumers’ packaging needs and Packaging is essential for demands creates profitable growth opportunities for Huhtamaki food and daily necessities Sustainability is driving industry • Packaging supports food from farm to fork, transformation, creating opportunitie
Slide 15: 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 Flexibles Huhtamaki Proprietary high- Application and barrier Recyclable mono- net sales by precisi
Slide 16: Our 2030 North Star
Our 2030 North Star Be the first choice in sustainable packaging solutions, driven by innovation and operational performance 17 Nov-Dec, 2024
Slide 17: We are on a transformation journey to become the first choice
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 18: 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 19: 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 20: 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 21: New sustainable blueloop solutions in partnership 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 22: 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 23: Operating model
Operating model 24 Nov-Dec, 2024 OVERVIEW | STRATEGY | SEGMENTS | FINANCIALS | SUSTAINABILITY | OTHER | Q3 REPORT
Slide 24: Segments
3 Segments 25 Nov-Dec, 2024 OVERVIEW | STRATEGY | SEGMENTS | FINANCIALS | SUSTAINABILITY | OTHER | Q3 REPORT
Slide 25: 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 26: We are investing in sustainable innovation across our technology platforms
We are investing in Paperboard conversion Invest in new sustainable solutions for FMCG sector sustainable Optimize core Foodservice network, address innovation across operational performance where necessary Scale circular system initiatives our technology platforms, and Unlock capacity and increase
Slide 27: 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 28: 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 29: We will continue to develop our core businesses
We will continue to Building on historic strengths and Driving growth through sustainable enhancing strategic capabilities solutions across all our businesses develop our core Building on our continuous Retail – Partnering with retailers to businesses, improvement methodology and create the future o
Slide 30: Regulatory landscape in North America
Regulatory landscape in North America is less stringent than in Europe, but regulation is increasing and is scattered State of US State Policy Areas (2024) Extended Producer Responsibility (EPR) Other* 17% 24% Labeling 9% Recovery 5% 9% 9% Municipal Foam / PS Bans 27% Chemicals / Toxic In absence of
Slide 31: Regulation and consumer preferences create additional growth opportunities
Regulation and Retail Tableware consumer preferences 17 states in the US have Significant investments in Smooth introduced varying levels Molded Fiber capacities for create additional growth of foam packaging bans Chinet® plate opportunities for us 2x higher preference for Investment in pressed pape
Slide 32: Significant expansion projects ongoing
Significant expansion projects ongoing Egg cartons / Hammond Foodservice / Paris, Texas • USD 100 million project announced in • Approximately USD 30 million investment June 2022, ramp-up ongoing for expansion of folding carton manufacturing capacity and • New capability – previously only consolidat
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: Flexibles blueloop: protection, recyclability, affordability
Our Flexibles blueloop innovation uniquely combines the power of three: protection, recyclability, and affordability. RECYCLA B I LI T Y • Recycling of flexible packaging PROTECTION made possible, complex structures made simple – • Protection and shelf life – highest level of mono-material no compro
Slide 37: 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 38: Financials
4 Financials 39 Nov-Dec, 2024 OVERVIEW | STRATEGY | SEGMENTS | FINANCIALS | SUSTAINABILITY | OTHER | Q3 REPORT
Slide 39: 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 40: 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 41: 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 42: 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 Q3 24 Foodservice E-A-O -2% 40% 2% 12% 18% 18% 22% 15% 11% 5% -3% -5% -5% -6% -7% North America -2% 9% 5% 11% 24% 14% 10% 10% 2% 1% 1% 4% -3% -2% 3% Flexible
Slide 43: 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 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 44: Our organic investments will drive 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 <2.0x >10% 224 259 199 215 197 204 X = 13-15% 147 <10% >0.5
Slide 45: 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 46: We will continue to drive long-term profitable growth
We will continue to drive Long-term long-term profitable growth ambition 10-12% Adj. EBIT margin Key drivers for profitability improvement Adj. EBIT margin 11% Commercial excellence Value add of innovative 10% Upgrading commercial technologies 9.4 % 9.4 % practices and digitalization Margin accretio
Slide 47: 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 68 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 Q3 2024 Free Cash Flow Change
Slide 48: 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 49: Loan maturities
Loan maturities Debt maturity structure September 30, 2024 (EUR million) 800 700 600 • Average maturity 2.3 years 500 at the end of Q3 2024 400 (2.4 at the end of Q3 300 2023) 200 100 0 2024 2025 2026 2027 2028 Later Lease liabilities Available unused committed facilities Drawn committed credit faci
Slide 50: 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 51: Sustainability and role of packaging
Sustainability 5 and role of packaging 52 Nov-Dec, 2024 OVERVIEW | STRATEGY | SEGMENTS | FINANCIALS | SUSTAINABILITY | OTHER | Q3 REPORT
Slide 52: Only a small share of CO2 emissions of a latte on-the-go
Only a small share of CO2 emissions of a latte on-the-go Energy to make the latte 4% come from the cup, Cup & lid 9% and these can be Coffee production 14% halved by increasing Milk production 73% recycling CO2 of a latte on The CO2 emissions of the go paper cups can be halved by recycling all cups
Slide 53: 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 54: Recyclable packaging, consumer awareness and infrastructure
In addition to recyclable packaging, Recyclable Collection, sorting Consumer Less waste in the consumer awareness packaging and recycling behaviour environment infrastructure and an efficient collection, sorting and recycling Recycling rates vary – significant potential to utilize valuable materials
Slide 55: Our approach to sustainability
Our approach to sustainability Environment Social Governance Approach • Design for circularity • Ensuring good working conditions for our • Ethics and compliance • Climate action employees and workers in the value chain • Global Code of Conduct • Biodiversity • Safe, engaging and inclusive work envi
Slide 56: Our journey is recognized by the ESG ratings agencies
Our journey is recognized by the ESG ratings agencies CDP Ecovadis MSCI Sustainalytics Score 2024 Management (B) (2023) 75 / 100 A (2023) Low risk (2023) Score 2023 Management (B) (2022) 71 / 100 A (2022) Low risk (2022) Performance N/A 97th percentile # 7-9 / 14 #19 / 38 vs. industry Our strengths
Slide 57: Our sustainability performance continues to progress in line with our 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 Nov-Dec, 2024 OVERVIEW | STRATEGY | SEGMENTS | FINANCIALS | SUSTAINABILITY | OTHER | Q3 REPORT 58
Slide 58: Food is a major contributor to climate change
Food is a major contributor to Food production climate change 80% 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 59 Nov-De
Slide 59: 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 60: 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 61: Other
6 Other 62 Nov-Dec, 2024 OVERVIEW | STRATEGY | SEGMENTS | FINANCIALS | SUSTAINABILITY | OTHER | Q3 REPORT
Slide 62: Largest shareholders and split of shareholding
Largest shareholders and split of shareholding Top 10 shareholders – Finnish only Split of shareholding Shareholder Number of shares % of total shares Change Change % 1. Finnish Cultural Foundation 11,319,080 10.50 % 0 0.00 % 2. Varma Mutual Pension Insurance Company 4,975,720 4.62 % 0 0.00 % 3. Ilm
Slide 63: 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 64: 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 until 31.1.2025 Salla Ahonen Sami Pauni Johan Rabe Ingolf Thom EVP, Sustainability & EVP, Corporat
Slide 65: 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 66: 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 Share price at A
Slide 67: Q3/2024 results presentation
Q3/2024 results 7 presentation 68 Nov-Dec, 2024 OVERVIEW | STRATEGY | SEGMENTS | FINANCIALS | SUSTAINABILITY | OTHER | Q3 REPORT
Slide 68: Solid profitability in a gradually improved market
Solid profitability in a gradually improved market Interim Report Q3 2024 69 Nov-Dec, 2024 OVERVIEW | STRATEGY | SEGMENTS | FINANCIALS | SUSTAINABILITY | OTHER | Q3 REPORT
Slide 69: 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 70: 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 71: Business performance
01 Business performance 72 Nov-Dec, 2024
Slide 72: 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 73: 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 74: 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 75: 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 76: Business segment review
02 Business segment review 77 Nov-Dec, 2024
Slide 77: Foodservice E-A-O: Consumption remained soft
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 78: 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 79: 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 80: 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 81: Financial review
03 Financial review 82 Nov-Dec, 2024
Slide 82: 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 83: 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 84: 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 85: 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 86: 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 87: 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 88: 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 89: Looking forward
04 Looking forward 90 Nov-Dec, 2024
Slide 90: 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 improve Decline in consumer demand, inflation in key cost items compared to 2023. Volatility in the operating (including raw material
Slide 91: Financial reporting in 2025
February 14, 2025 Results 2024 Financial Week commencing reporting March 10, 2025 in 2025 Annual Report 2024 April 24, 2025 Q1 Interim Report 92 Nov-Dec, 2024
Slide 92: 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 93: Thank You
Thank You ir@huhtamaki.com OVERVIEW | STRATEGY | SEGMENTS | FINANCIALS | SUSTAINABILITY | OTHER | Q3 REPORT