Huhtamaki Oyj · OMXHEX:HUH1V
Huhtamaki Oyj — Non-Deal Roadshow (March 2024)
101 slides from Huhtamaki Oyj's roadshow presentation, March 2024
Slide 1: Becoming the first choice in sustainable packaging solutions
Becoming the first choice in sustainable packaging solutions Roadshow presentation February-March 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 Feb-Mar 2024 Roadshow presentation
Slide 3: Overview
Overview 3 Feb-Mar 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 107 OPERATING COUNTRIES 37 EMPLOYEES 17,910 4 Feb-Mar 2024 Roadshow presentation Fiber Foodservice E-A-O North America Flexible Packaging Sales and other l
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 Feb-Mar 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: First choice in sustainable packaging solutions
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
Strategy 12 Feb-Mar 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
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 ~470 BEUR Flexibles Technologies for recyclable
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
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 blueloop innovation
We continue to invest in profitable sustainable core businesses and blueloop™ transformative innovation, across our business segments Profitable growth opportunities in our core businesses and in Balanced investments in core and transformative sustainable innovation innovation Healthcare FMCG Foodse
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: New sustainable blueloop solutions 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: 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 Feb-Mar 2024 Roadshow presentation
Slide 26: Segments
Segments 26 Feb-Mar 2024 Roadshow presentation
Slide 27: Fiber Foodservice - Overview
Fiber Foodservice - Overview Global Fiber leader Foodservice FMCG Retail Global paperboard conversion* leader 53% of sales 9% of sales 38% of sales Foodservice EAO Fiber Packaging Net sales 1,037 MEUR Net sales 343 MEUR Adj. EBIT margin 9.4% Adj. EBIT margin 11.6% Employees 5,951 100-110 BEUR market
Slide 28: Fiber Foodservice - Financial performance
Fiber Foodservice - Financial performance We have recovered growth and improved We have strengthened our innovation leadership, improved profitability cost position, while managing market disruptions Delivered strong growth and profitability, while managing Net sales and adj. EBIT margin consecutive
Slide 29: Investing in sustainable innovation across 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 Global Fiber leader Retail Tableware Foodservice FMCG Global Paperboard Conversion* leader 48% of sales 34% of sales 18% of sales Net sales Adjusted EBIT margin 1,458 MEUR 12.9% Employees Manufacturing units 4,040 19 30-40 BEUR markets growing at 3-5% p.a. Accelerating susta
Slide 32: North America - Financial performance
North America - Financial performance We are delivering strong financial performance We are investing into our core businesses, driving profitable growth Net sales and adj. EBIT margin Leveraging historic investments in profitable core Retail 1,800 12.9 % 14% Tableware and Foodservice growth markets
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 Huhtamaki is a global category leader Food & beverage Home & personal care Healthcare/Other 61% of sales 29% of sales 10% of sales Net sales Adjusted EBIT margin 1,341 MEUR 6.6% Employees Manufacturing units 7,681 22 100-120 BEUR market growing at 4-5% p.a. Opportunitie
Slide 37: Flexible Packaging - Financial performance
Flexible Packaging - Financial performance We have improved our market position, despite We are delivering growth, but need to address market headwinds profitability Improved position in flexo print and filmmaking Net sales and adj. EBIT margin technology, personal and homecare portfolio 1,800 8.1 %
Slide 38: Immediate actions to transform 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: 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- blueloop™ flexibles opens a market opportunity of material PP, PE, PET
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
Financials 41 Feb-Mar 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 Foodservice E-A-O -4% -28% -1% -7% -2% 40% 2% 12% 18% 18% 22% 15% 11% 5% -3% -5% North America 9% -5% 4% -2% -2% 9% 5% 11% 24% 14% 10% 10% 2% 1% 1
Slide 46: Our investments have enabled us to build capabilities and technologies
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 profitable growth
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: 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 profitable Long-term 10-12% 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 150 128 122 109 104 100 83 71 71 52 57 50 43 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 Free Cash Flow Change in Working Capital 50
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 2.2 Covenant level 3.75 • At the end of 2023: 3.0 3.0 • Cash and cash equivalents EUR 348 million (309) 2.5 2.5 2.5 Ambition 1,572 1,626 2.4 2.3 • Unused committed credit facilities 2.2 1,483 1
Slide 52: Loan maturities
Loan maturities Debt maturity structure December 31, 2023 • Average maturity 2.9 years at the (EUR million) end of 2023 (3.2 at the end of 700 2022) 600 • EUR 300 million bond issued in 500 November 400 300 200 100 0 2024 2025 2026 2027 2028 Later Lease liabilities Available unused committed facilit
Slide 53: EPS growth has secured continuous dividend growth
In addition to growing organically and inorganically, our EPS growth has secured 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.
Slide 54: Sustainability and role of packaging
Sustainability and role of packaging 54 Feb-Mar 2024 Roadshow presentation
Slide 55: Sustainability-driven legislation is impacting packaging development
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 Feb-Mar 2024 Roadshow presentation
Slide 58: 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 March 28, 2023 Capital Markets Day 2023
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: 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 food systems emissions
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 Feb-Mar 2024 Roadshow presentation
Slide 66: Small share of latte CO2 emissions 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: Collection, sorting and recycling infrastructure 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 Feb
Slide 68: Recycling rates vary
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 Feb-Mar 2024 Roadshow presentation
Slide 69: EU PPWR
EU PPWR Objective and content of PPWR proposal Regulation not a done deal • Mixed business implications • Legislative process lengthy and complex − Requirement for recyclability at-scale − Pushback from EU Parliament − Amount of recyclable content − Currently in Trilogue - Negotiations between EU −
Slide 70: Other
Other 70 Feb-Mar 2024 Roadshow presentation
Slide 71: 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 4,101,051 3.81 % 0 0.00 % 3. Ilmarinen Mutual Pension Insurance Com
Slide 72: Foreign shareholding and distribution by geography
Foreign shareholding and distribution by geography Approximate shareholder distribution by geography (Ownership as a percentage of identified shareholders in September 2022) 60,000 54% 4% 1% 5% 55,000 52% 5% 50,000 8% 50% 45,000 48% 52% 40,000 10% 46% 35,000 44% 15% 30,000 25,000 42% Finland France
Slide 73: 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 74: Board of Directors
Board of Directors Pekka Ala-Pietilä Kerttu Tuomas Mercedes Alonso Doug Baillie William R. Chairman of the Vice-Chairman Barker Board HR AC AC HR HR Born 1957, Finnish citizen Born 1957, Finnish citizen Born 1966, Spanish and Swiss citizen Born 1955, U.K. citizen Born 1949, U.S. citizen Starting dat
Slide 75: Strong cash flow and margin improvement - Results 2023
Strong cash flow and margin improvement Results 2023 Charles Héaulmé, President and CEO Thomas Geust, CFO
Slide 76: Strong cash flow and margin improvement
Strong cash flow and margin improvement • Market trends – After a challenging H1, impacted by inflation and destocking, demand continued to be affected during H2. Some improvements seen in North American towards the end of the year • Financial performance – Strong end to the year, supported by tempo
Slide 77: Business performance
Business performance 77 Feb-Mar 2024 Roadshow presentation
Slide 78: Q4 2023: Sales affected by currencies and volumes
Q4 2023: Sales affected by currencies and volumes, still supported by pricing Development of net sales in Q4 2023 Net sales decreased 6% in Q4 2023 (EUR million) • Comparable net sales decreased 3% (-5 % in emerging markets). Support -26 0 0 from pricing but softness in volumes -44 • -4% currency im
Slide 79: FY 2023: Divestment, currencies and volumes impacting net sales
FY 2023: Divestment, currencies and volumes impacting net sales Development of net sales in 2023 Net sales decreased 7% in 2023 (EUR million) • Comparable net sales decreased 2% -78 0 -79 (-4 % in emerging markets). Support -153 from pricing but softness in volumes • -2% from divestment 4,479 4,169
Slide 80: Higher pressure from softer demand on Flexible Packaging
Higher pressure from softer demand and pricing on Flexible Packaging Long-term Comparable net sales growth Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 2022 2023 ambitions Foodservice E-A-O 15% 11% 5% -3% -5% 18% 2% 4-5% North America 10% 2% 1% 1% 4% 14% 2% 5-6% Flexible Packaging 1% -5% -11% -11% -9% 14% -9% 6-7%
Slide 81: Strong adj. EBIT performance
Strong adj. EBIT performance MEUR Q4 23 Q4 22 Change 2023 2022 Change Net sales 1,032.9 1,103.6 -6% 4,168.9 4,479.0 -7% Adjusted EBIT1 107.5 93.3 15% 392.6 395.1 -1% Margin 10.4% 8.5% 9.4% 8.8% 2 Adjusted EPS, EUR 0.68 0.65 5% 2.32 2.49 -7% Capital expenditure 114.8 133.2 -14% 318.7 318.5 0% Signifi
Slide 82: Sustainability Dashboard – Good progress towards 2030 targets
Sustainability Dashboard – Good progress towards our 2030 targets Targets displayed in the graphs are Huhtamaki group’s 2030 ambitions; GHG = greenhouse gas 82 Feb-Mar 2024 Roadshow presentation
Slide 83: Business segment review
Business segment review 83 Feb-Mar 2024 Roadshow presentation
Slide 84: Foodservice EAO: Margin improved significantly in Q4
Foodservice EAO: Margin improved significantly in Q4 Key figures, MEUR Q4 23 Q4 22 Change Net sales and comparable growth (EUR million & %) Net sales 250.2 266.7 -6% Comparable growth -5% 15% 289 300 255 256 271 260 267 250 Adjusted EBIT 1 25.0 24.2 3% 2022 Margin 10.0% 9.1% 2023 18 % 11 % 18 % 5% 2
Slide 85: North America: Significant profitability improvement in Q4
North America: Significant profitability improvement in Q4, also supported by volume growth Key figures, MEUR Q4 23 Q4 22 Change Net sales and comparable growth (EUR million & %) Net sales 378.1 383.6 -1% Comparable growth 4% 10% 375 373 372 384 378 337 358 348 Adjusted EBIT 1 54.1 49.0 10% 2022 Mar
Slide 86: Flexible Packaging: Continued profitability recovery in Q4
Flexible Packaging: Continued profitability recovery trend in Q4 Key figures, MEUR Q4 23 Q4 22 Change Net sales and comparable growth (EUR million & %) Net sales 319.8 369.1 -13% 421 Comparable growth -9% 1% 378 391 369 349 328 344 320 Adjusted EBIT1 26.0 15.5 68% 2022 Margin 8.1% 4.2% 2023 18 % -5
Slide 87: Fiber Packaging: Flat volumes while avian flu impact continued
Fiber Packaging: Flat volumes while the avian flu impact continued Key figures, MEUR Q4 23 Q4 22 Change Net sales and comparable growth (EUR million & %) Net sales 88.8 87.4 2% Comparable growth 2% 17% 95 91 87 86 89 87 89 1 81 2022 Adjusted EBIT 9.7 11.1 -13% Margin 10.9% 12.7% 2023 8% 17 % 16 % 7%
Slide 88: Financial review
Financial review 88 Feb-Mar 2024 Roadshow presentation
Slide 89: Strong adjusted and reported EBIT growth
Strong adjusted and reported EBIT growth Q4 2023: MEUR Q4 23 Q4 22 Change 2023 2022 Change • Strong adj. EBIT growth Net sales 1,032.9 1,103.6 -6% 4,168.9 4,479.0 -7% Adjusted EBITDA 1 159.5 143.3 11% 590.1 596.9 -1% • Reported EBIT also supported by the 1 divestment of real estate in Thane, India M
Slide 90: Currency impact remained negative
Currency impact remained negative Average Average Change in Change in Closing rates rate rate average closing 2022 2023 rate Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 rate (YoY) USD 1.05 1.08 -3 % 1.06 1.09 1.09 1.05 1.11 -4% Foreign currency INR 82.70 89.31 -8 % 88.23 89.36 89.71 87.64 92.45 -5% translation im
Slide 91: Continued to deleverage balance sheet with strong cash flow
Continued to deleverage balance sheet with strong cash flow Net debt, net debt/adj. EBITDA and gearing • Net debt/Adj. EBITDA at 2.2 Covenant level 3.75 • At the end of 2023: 3.0 3.0 • Cash and cash equivalents EUR 348 million (309) 2.5 2.5 2.5 Ambition 1,572 1,626 2.4 2.3 • Unused committed credit
Slide 92: Loan maturities
Loan maturities Debt maturity structure December 31, 2023 • Average maturity 2.9 years at the (EUR million) end of 2023 (3.2 at the end of 700 2022) 600 • EUR 300 million bond issued in 500 November 400 300 200 100 0 2024 2025 2026 2027 2028 Later Lease liabilities Available unused committed facilit
Slide 93: Strong free cash flow generation in 2023
Strong free cash flow generation in 2023, despite continued growth investment Free cash flow bridge Cash flow driven by: (EUR million) • Significantly improved impact from 621 615 change in working capital • Higher net financial items and 321 cash taxes 144 62 • Proceeds from selling assets 8 11 inc
Slide 94: Improving financial position
Improving financial position MEUR Dec 2023 Dec 2022 • The financial position strengthened during the quarter Total assets 4,665 4,821 • Working capital decreased clearly Operating working capital 707 828 Net debt 1,288 1,471 Equity & non-controlling interest 1,925 1,922 Gearing 0.67 0.77 Adjusted RO
Slide 95: Dividend proposal: 15th consecutive year of dividend growth
The Board of Directors’ dividend proposal would mean the 15th consecutive year of dividend growth 2023* 2022 Change Adjusted EPS 2.32 2.49 -7% Dividend per 1.05 1.00 5% share 1.00 1.05 0.89 0.92 0.94 Payout ratio 45% 40% 0.80 0.84 0.73 0.60 0.66 0.56 0.57 0.44 0.46 0.34 0.38 Share price on 36.73 32.
Slide 96: Progress towards long-term financial ambitions
Progress towards long-term financial ambitions Long-term 2016 2017 2018 2019 2020 2021 2022 2023 ambition Comparable net sales growth 4% 3% 5% 6% -2% 7% 15% -2% 5-6% Adjusted EBIT margin 9.4% 9.0% 8.1% 8.6% 9.1% 8.8% 8.8% 9.4% 10-12% Adj. ROI 14.7% 13.6% 11.6% 12.3% 11.7% 11.3% 11.0% 11.2% 13-15% Ne
Slide 97: Looking forward
Looking forward 97 Feb-Mar 2024 Roadshow presentation
Slide 98: Outlook for 2024 and short-term risks and uncertainties
Outlook for 2024 and short-term risks and uncertainties Outlook for 2024 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, distribution
Slide 99: Reporting schedule in 2024
Reporting schedule in 2024 Week commencing April 25, 2024 July 25, 2024 October 24, 2024 February 26, 2024 Q1 2024 Interim Report, Half-yearly Report 2024 Q3 2024 Interim Report Annual Report 2023 Annual General Meeting 99 Feb-Mar 2024 Roadshow presentation
Slide 100: 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 101: Thank You
Thank You ir@huhtamaki.com www.huhtamaki.com/investors