Securing a solid base for growth

In 2009, Huhtamaki continued to solidify the Group’s financial position and develop its strategic strongholds. Cost control and cash generation as well as price and product mix management were key priorities.

Strategic investments were made in successful businesses with the most favorable preconditions to further improve the results and market share. Consequently, the North America and Molded Fiber business segments upgraded and expanded their capacity most during the course of the year. Films segment increased its focus on release films and the release paper business was divested. An upturn in the worldwide economy will bring opportunities to further strengthen market leadership in release films. The Foodservice Europe-Asia-Oceania and Flexible Packaging business segments improved their operational performance and continued to develop a solid base for growth. Emphasis on continuous improvement programs was again a proven way of enhancing industrial performance.

Going into 2010, Huhtamaki’s financial targets, return on investment (ROI) of 15% and dividend payout ratio of 40%, remain unchanged.

At the turn of the year, strategic review of the rigid plastic consumer goods operations was halfway through in terms of net assets. The review of the remaining operations in Europe continues.

Strategic direction

Solid base for growth
 - Seek growth opportunities
- Achieve strong cash flow
- ROI 15%

Strategy execution
- Develop strategic strongholds
- Finalize strategic review

Strategy update
- Agree on strongholds
- Improve financial position
- Review rigid plastic consumer goods
business