Huhtamaki Oyj · OMXHEX:HUH1V
Huhtamaki Oyj — Corporate Update (September 2024)
26 slides from Huhtamaki Oyj's corporate update, Sep 4, 2024
Slide 1: Hammond site visit
Hammond site visit September 4, 2024
Slide 2: Huhtamaki strategy
01 Huhtamaki strategy Charles Héaulmé – President & CEO 2 Sep. 4, 2024 Hammond site visit
Slide 3: A strong local presence, delivering for our customers, globally
A strong local presence, delivering for NET SALES our customers, globally €4.2B ADJUSTED EBIT MARGIN North America net 9.4% sales EUR 1.5bn OPERATING LOCATIONS 103 OPERATING COUNTRIES 37 EMPLOYEES 17,910 Manufacturing unit Sales unit Distribution center Head office All figures as on Dec 31, 2023 3 S
Slide 4: Providing sustainable packaging for food and everyday necessities
Providing sustainable packaging for food and everyday necessities Foodservice FMCG Retail Healthcare Customers Food packaging Packaging for everyday necessities Products Paperboard Flexibles Fiber Packaging technology Non-integrated Global Leader Global Category Leader Global Leader 4 Sep. 4, 2024 H
Slide 5: We drive an ambitious transformation developing technology leadership
We drive an ambitious transformation developing technology leadership for sustainable packaging solutions Our 2030 vision On-going transformation • Game-changing technology & solution innovation • Innovation in sustainable portfolio Core capabilities • Sustainable packaging portfolio • Operational e
Slide 6: 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 7: Huhtamaki investment case
Huhtamaki investment case Huhtamaki is a market and technology innovation leader for food and everyday necessities packaging, creating value through: • Attractive portfolio of sustainable core technologies to capture underlying market growth • Innovation in sustainability to capture conversion oppor
Slide 8: North America is our strongest performing segment
North America is our Huhtamaki has developed a significant presence in North America through the last 25 years. strongest performing Growing through organic expansion and M&A. segment - Net sales in 2010 EUR 0.5bn - Net sales in 2023 EUR 1.5bn The role of the North America segment in the Group’s por
Slide 9: North America segment
02 North America segment Ann O’Hara – President, North America 9 Sep. 4, 2024 Hammond site visit
Slide 10: Strong market position in an attractive market
Strong market position in an attractive market 30-40 BEUR markets growing at 3-5% p.a. Key growth drivers: • Population growth • Increasing demand for convenience • Legislation-driven foam replacement trend Source: Technovia, Smithers, Mordor Intelligence, Grand View Research, Huhtamaki estimates Ma
Slide 11: In North America, we plan on continuing our successful profitable growth trajectory
In North America, we plan on continuing our successful profitable growth trajectory Huhtamaki North America Revenue (€bn) 12.9% EBIT margin 1.5 1.5 8.5% 1.2 1.1 1.2 0.9 1.0 1.0 1.0 0.7 0.7 0.8 0.5 0.5 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 BUILDING ON FROZEN EXPANDING
Slide 12: Strong and consistently improving financial performance
Strong and consistently improving financial performance Net sales (EURm) and comparable growth Adj. EBIT margin and adj. RONA 1,800 35% 22% 19.5% 1,600 1,468 1,458 30% 20% 18.4% 1,400 25% 17.5% 17.9% 17.6% 18% 16.8% 1,153 1,139 1,160 1,200 20% 1,003 14% 16% 1,000 15% 14.1% 9% 14% 13.0% 12.9% 800 731
Slide 13: Product portfolio and customers
Product portfolio and customers Retail Tableware Foodservice FMCG categories 48% of sales 34% of sales Product 18% of sales Example of customers competitors Key 13 Sep. 4, 2024 Hammond site visit
Slide 14: Three core technologies with multiple and complementary products
Three core technologies with multiple and complementary products MOLDED FIBER PAPERBOARD RIGID PLASTICS SMOOTH ROUGH FLAT PAPER SHAPED PAPER INJECTION MOLDED THERMOFORMED RETAIL PAPERBOARD (RETAIL) PLASTICS SMOOTH MOLDED RETAIL (48%) Retail SMF Pressboard Plate Cups & Lids Cut Crystal, Red Cup FOODS
Slide 15: Our main focus is on expanding the profitable core
Our main focus is on expanding the profitable core Retail Tableware Foodservice Consumer Goods • Further strengthen the Chinet brand • Reviewing expansion opportunities • Maintain strong position in frozen through portfolio and service desserts • Develop Private Label offering • Expanding capacity a
Slide 16: Regulatory landscape in North America is less stringent than in Europe
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 17: Significant expansion projects ongoing
Significant expansion projects ongoing Egg cartons / Hammond Foodservice / Paris, Texas Retail tableware • USD 100 million project announced in June • Approximately USD 30 million investment for • Increased Retail capacity with several projects 2022, ramp-up ongoing expansion of folding carton manuf
Slide 18: We have several possible avenues to continue driving long-term profitable growth
We have several possible avenues to Scaling our current core continue driving long- Market conversion term profitable growth • Foam-to-fiber -conversion • Potential other substrate substitution Leveraging our global technologies and network • RMF for multiple applications • High-precision SMF for ri
Slide 19: Driving profitable growth
Long-term ambition: 5-6% Driving profitable growth Comparable How we get there growth 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 to achieve World-Class oper
Slide 20: Hammond Facility
03 Hammond Facility 20 Sep. 4, 2024 Hammond site visit
Slide 21: Welcome to Huhtamaki Hammond
Welcome to Huhtamaki Hammond Plant / Operations Overview – 34 acres – Original construction in 1948; 200,000 sq. ft. • (4) B-molding machines – Expansion in 1956; 100,000 sq. ft • (3) B-molding machines – Egg Carton Expansion in 2022-2023; 250,000 sq. ft. • (5) LeoTech molding machines – 24 hour / 7
Slide 22: Hammond Products and Customers
Hammond Products and Customers Rough Finish Molded Fiber Products 4-Cup Carriers / 2-Cup Carriers Egg trays / filler flats Egg cartons (12 ct./18 ct.) 22 Sep. 4, 2024 Hammond site visit
Slide 23: Egg Carton Expansion Timeline
Egg Carton Expansion Timeline Groundbreaking Construction Commenced Construction Completed First Operational Lines June 2022 December 2022 October 2023 November 2023 The Huhtamaki-wide team … the reason for Additional machinery an efficient and successful project being installed through Q3 2024 23 S
Slide 24: Hammond Sustainability Results - H1 2024
Hammond Sustainability Results - H1 2024 Our 2030 ambition is to be the first choice in sustainable packaging solutions 24 Sep. 4, 2024 Hammond site visit
Slide 25: Community Service and Engagement
Community Service and Engagement • Hammond Boys and Girls Club Major Sponsor • American Cancer Society Relay for Life • School City of Hammond “Back to School” Supplies Giveaway • Hammond Civic Center Clothing and Food Drive • Hammond East Side Community Council Christmas Toy Giveaway • Hammond Educ
Slide 26: Thank you!
Thank you! For more details, please reach out to the IR team IR@huhtamaki.com