Huhtamaki India Limited · NSE:HUHTAMAKI
Huhtamaki India — Q4 2023 Earnings Presentation
23 slides from Huhtamaki India's earnings presentation, Feb 12, 2024
Slide 1: Investor Presentation cover letter to stock exchanges
12th February 2024 Department of Corporate Services The Listing Department BSE Limited National Stock Exchange of India Ltd Phiroze Jeejeebhoy Towers Exchange Plaza, Mumbai – 400 001 Bandra Kurla Security Code No – 509820 Complex Bandra (East), Mumbai 400 051 Security Code - HUHTAMAKI Sub: Investor
Slide 2: Earnings presentation – Q4 2023
Earnings presentation – Q4 2023 Huhtamaki India Limited Dhananjay Salunkhe Managing Director Jagdish Agarwal Executive Director & CFO 1 February 12, 2024 Earnings Presentation October-December 2023
Slide 3: Disclaimer
Disclaimer Information presented herein contains, or may be deemed to contain, forward-looking statements. These statements relate to future events or Huhtamaki India Limited's (the Company) future financial performance, including, but not limited to, strategic plans, potential growth, expected capi
Slide 4: Performance during Q4 2023
Performance during Q4 2023 • Market environment and impact – Improved profitability, however continued to be impacted by lower volume. Strategy in place to drive long term sustainable growth • Financial performance • Lower net sales QoQ and YoY • EBIT, PBT and EPS improved QoQ and YoY • Footprint op
Slide 5: Financial review
Financial review 4 February 12, 2024 Earnings Presentation October-December 2023
Slide 6: Operational efficiency and mix are driving improved earnings despite lower sales
Operational efficiency and mix are driving improved earnings despite lower sales • Q4 23 and 2023 Sales growth impacted by lower volumes Change Q4 Change MINR Q4 23 Q4 22 2023 2022 22 2022 • EBIT and PBT improved despite Sale of products and services 5,851.9 6,765.2 -13.5 % 24,813.2 29,165.0 -14.9 %
Slide 7: Improved margins, net sales continued to be impacted by lower volume
Improved margins, net sales continued to be impacted by lower volume Net Sales EBIT and EBIT margin *Excluding exceptional item JQ – June quarter, SQ – Sept Quarter, DQ – Dec Quarter and MQ – Mar Quarter 6 February 12, 2024 Earnings Presentation October-December 2023
Slide 8: Gross debt to EBITDA decreased
Gross debt to EBITDA decreased • At the end of Q4 23: • Net Debt – Nil • Cash and cash equivalents MINR 1,445 • Investment of MINR 2,473 made during the quarter in bank deposits and liquid mutual funds. • Unutilized fund-based limits with bank MINR 3,823 *Excluding exceptional item JQ – June quarter
Slide 9: Financial position improved
Financial position improved MINR Dec-23 Dec-22 • Operating working capital decreased mainly due to lower receivables Total assets 20,010 17,507 • Gross debt lower than December 2022. Net Operating working capital 3,534 4,787 Debt - Nil • Financial position improved, driven by strong Net debt - 3,230
Slide 10: Cash flow supported by working capital improvement and sale of fixed assets
Cash flow supported by working capital improvement and sale of fixed assets Cash flow bridge MINR Cash flow driven by: • Higher Profit before tax • Change in working capital mainly following decrease in receivables and inventories partially offset by a decrease in trade payables • Significant procee
Slide 11: In our commitment to sustainability, we are proud to present Huhtamaki blueloop
In our commitment to sustainability, we are proud to present Huhtamaki blueloop™ TM blueloop™ is our enterprise-wide sustainability brand aligned with our 2030 strategy to become the first choice in sustainable packaging solutions, driven by technology and operational excellence 10 10 February 12, 2
Slide 12: We are on a transformation journey to become the first choice in sustainable packaging solutions
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 13: The new investments enable us to develop a range of recyclable solutions under the blueloop umbrella
The new investments enable us to develop a range of recyclable solutions under the blueloop™ umbrella 2023 2024 REDUCE MIX MONO WEIGHT RECYCLE R ECYC LE REPLACE R E TO RT HEAVYWEIGHT Non-recyclable Mix-recyclable PAPER PE mono PE PP Retort mono PP blueLite™ PO Mix PP/PE Mix PET/PE 12 February 12, 20
Slide 14: blueloop solutions - The power of three
blueloop™ solution s - The p ower of three F uture ready solutions for custom ers M AT E R I A L R E C Y C L A B I L I T Y S O U R C E & TA X R E D U C T I O N Highest level of mono-material content Reduction of weight and layers, reduce impact of plastic tax and EPR fees CONTENT PROTECTION Barrier
Slide 15: We have successfully completed the installation of blueloop assets at Silvassa
We have successfully completed the installation of blueloop™ assets at Silvassa New building 5 Layer MDO Line 7 Layer Barrier Line 14 February 12, 2024 Earnings Presentation October-December 2023
Slide 16: Transformation
Transformation 15 February 12, 2024 Earnings Presentation October-December 2023
Slide 17: Footprint Optimization - Capacity consolidation
Footprint Optimization - Capacity consolidation • 5 manufacturing sites were consolidated during the year – footprint of 15 sites to 10 sites • Production shifted with no material impact to business • The capacity of the sites shifted to other operating sites to benefit from scale • Footprint optimi
Slide 18: Monetized the Company's land parcels, enhanced liquidity
Monetized the Company’s land parcels, enhanced liquidity Majiwada, Thane Ambernath, Thane • 11 acres land, sold for a consideration of MINR 4,290 • 7 acres land along with building , sold for a consideration of MINR 300 • Consideration received – MINR 4,069 and balance MINR 222 is receivable subject
Slide 19: Corporate office consolidation in line with one Huhtamaki vision
Corporate office consolidation in line with one Huhtamaki vision • Consolidated Airoli and Thane offices and moved to the new office in Hiranandani Estate – Thane • One office with all modern amenities and well equipped with all the safety feature • One Huhtamaki Vision, employees working from one p
Slide 20: Sustainability
Sustainability 19 February 12, 2024 Earnings Presentation October-December 2023
Slide 21: Continued progress towards our sustainability goals
Continued progress towards our sustainability goals Climate Action Social Initiatives Huhtamaki’s community involvement strategy reflects our commitment to Huhtamaki has committed to Carbon Neutral Production by year 2030. Multiple projects are undertaken to optimize and reduce scope 1 and scope 2 a
Slide 22: For further information, please contact us
For further information, please contact us: investor.communication@huhtamaki.com https://www.huhtamaki.com/en-in/flexible-packaging/investors 21 February 12, 2024 Earnings Presentation October-December 2023
Slide 23: Thank You
Thank You 22 February 12, 2024 Earnings Presentation October-December 2023