Billerud Ab · OMXSTO:BILL
Billerud Ab — BillerudKorsnäs — UBS Global Paper and Packaging Conference 2016
19 slides from Billerud Ab's conference presentation, Sep 8, 2016
Slide 1: Packaging for a better world - UBS Global Paper and Packaging Conference
WE PACKAGING FOR A UBS Global Paper and Packaging Conference | September 2016 Susanne Lithander, CFO
Slide 2: Pure play packaging materials company
PURE PLAY PACKAGING MATERIALS COMPANY High performance packaging Target customer segments requiring strong, light and/or pure packaging materials Stable product 74% of sales going to consumer sectors portfolio Sustainable alternatives through Innovation challenging other materials and solutions inno
Slide 3: BillerudKorsnäs in brief
BILLERUDKORSNÄS IN BRIEF NET SALES* Europe 73% Asia 17% PACKAGING PAPER OTHER 21.8 Africa 4% South America 3% 9% Kraft paper Sack paper Market pulp SEKbn Middle East 2% 39% SHARE Other 1% 37% OF SALES OPERATING PROFIT* CONSUMER BOARD 15% Liquid packaging board CORRUGATED SOLUTIONS 2.2 Cartonboard Fl
Slide 4: Financial targets and target fulfillment
FINANCIAL TARGETS AND TARGET FULFILLMENT AFTER SECOND QUARTER 2016 ORGANIC GROWTH 3-4 % EBITDA > 17% PER YEAR 17% ✔ ROCE > 13% Net Debt / EBITDA < 2.5 14% 1.32 DIVIDEND POLICY: 50% OF NET PROFIT 49% FOR 2015 4
Slide 5: Aiming to capture growth from global megatrends
AIMING TO CAPTURE GROWTH FROM GLOBAL MEGATRENDS DEMOGRAPHIC SHIFTS AND A CHANGING WORLD MAP SUSTAINABILITY CONNECTING SEVERAL SUBTRENDS CONSUMERS AND SUPPLY CHAINS ARE CHANGING 5
Slide 6: Packaging paper & board market is growing by 2.2%
PACKAGING PAPER & BOARD MARKET IS GROWING BY 2.2% Europe North-America 1.5% 0.3% Asia 3.3% 3.0% 2.8% Australasia 2.7% Middle East 0.4% Central & South America Africa Estimated demand CAGR 2013-2030, combined market for cartonboard, containerboard and sack paper. Source: Pöyry 2014 6
Slide 7: We target global packaging market growing by 3.4%
WE TARGET GLOBAL PACKAGING MARKET GROWING BY 3.4% Europe North-America 1.8% 2.0% Asia 4.7% 5.1% 4.4% Australasia 3.7% Middle East 2.2% Central & South America Africa Estimated CAGR 2014-2024, for all packaging materials. Source: Smithers Pira 2014 7
Slide 8: We have established a clear growth strategy
WE HAVE ESTABLISHED A CLEAR GROWTH STRATEGY 8
Slide 9: Investing to move further up the value chain towards brand owners
WE ARE INVESTING TO MOVE FURTHER UP THE VALUE CHAIN TOWARDS BRAND OWNERS Packaging Packaging material material 50-85 % of 2-5% of the cost the cost Price Brand image Payment terms Package solution Runability Sustainability Delivery terms Shelf appearance 9
Slide 10: We are expanding the reach of our offering
WE ARE EXPANDING THE REACH OF OUR OFFERING OUR PRESENCE 2013 AND NEW SALES HUBS 2015 Sweden Finland Germany UK France Spain Italy UAE China Singapore Thailand US India Turkey South Africa 10
Slide 11: Investments since 2012 to increase capacity and quality lead
WE HAVE INVESTED SEK 2 BILLION SINCE 2012 TO INCREASE CAPACITY AND QUALITY LEAD PACKAGING PAPER CONSUMER BOARD CORRUGATED SOLUTIONS 260 SEKm 1600 SEKm 180 SEKm Brown sack paper Liquid Packaging Board S/C fluting - Improved paper quality Cartonboard - Improved quality restoring leadership - Improved
Slide 12: Planning to invest more than SEK 5 billion
WE ARE PLANNING TO INVEST MORE THAN SEK 5 BILLION… Moving unintegrated MG paper machine from Tervasaari, Finland to Skärblacka, Sweden and making it integrated to the pulp production. Building new board machine at the production unit in Gruvön with capacity of approx. 500 000 t/a of liquid packaging
Slide 13: To improve underlying profitability and secure organic growth
…TO IMPROVE UNDERLYING PROFITABILITY AND SECURE ORGANIC GROWTH PACKAGING PAPER CONSUMER BOARD CORRUGATED SOLUTIONS Focusing on growth Increasing volumes on Expanding solution based segments growing by growing Liquid Packaging sales to brand owners 2-4% per year Board and Cartonboard markets Exiting
Slide 14: M&A may boost long-term growth
M&A MAY BOOST LONG-TERM GROWTH We have the financial capacity to add M&A growth to organic growth We have proven experience in merging businesses and quickly extracting synergies Bolt-on acquisitions with synergy potentials are currently the most interesting candidates 14
Slide 15: Innovation will further boost top line and margins
INNOVATION WILL FURTHER BOOST TOP LINE AND MARGINS 2014 2015 2020 Target Proportion of sales accounted 14% 17% 20% for by new products 15
Slide 16: Sustainability as a business opportunity
SUSTAINABILITY AS A BUSINESS OPPORTUNITY MAXIMIZING POSITIVE IMPACT SUSTAINABLE INCREASED AND BIO-BASED CUSTOMER VALUE SOCIETY RESPONSIBLE VALUE CHAIN MINIMIZING NEGATIVE IMPACT 16
Slide 17: We provide sustainable solutions
WE PROVIDE SUSTAINABLE SOLUTIONS Through our products… … and through our actions Environmental impact paper vs plastic1 50-70 % lower CO2 ADVANCED LEVEL 1 Life cycle assessment, Comparative study of virgin fibre based packaging products with competing plastic materials. IVL, 2015. 17
Slide 18: Summary
SUMMARY BillerudKorsnäs – pure play packaging materials company Global trends imply major growth opportunities Sustainability, demographic shifts, digitalization and changed consumer behavior We invest in all of our four strategic pillars: Position expansion, Innovation, Sustainability and Efficienc
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BillerudKorsnäs — UBS Global Paper and Packaging Conference 2016 on 6ix