Billerud Ab · OMXSTO:BILL
Billerud Ab — BillerudKorsnäs — Q4 2023 Earnings Presentation
17 slides from Billerud Ab's earnings presentation, Jan 25, 2024
Slide 1: Strong cash flow and efficiency gains ends a 2023 heavily impacted by market headwind
Strong cash flow and efficiency gains ends a 2023 heavily impacted by market headwind Interim report January-December 2023 Ivar Vatne Andrei Krés CEO CFO 25th of January 2024
Slide 2: Performance and key highlights Full Year 2023
INTERIM REPORT JANUARY-DECEMBER 2023 Performance and key highlights Full Year 2023 Difficult year. Heavily influenced by customer de-stocking. Change vs All-time-low sales volume SEKm 2023 2022 Net sales 41,224 -3% Price pressure across most categories and higher input cost Adjusted EBITDA 3,613 -56
Slide 3: Performance and key highlights Q4 2023
INTERIM REPORT JANUARY-DECEMBER 2023 Performance and key highlights Q4 2023 Weak volumes in North America and negative price and mix Change vs impact in both regions SEKm Q4-23 Q4-22 Net sales 9,566 -20% Sequentially lower input costs, mainly related to pulpwood in Europe Adjusted EBITDA 774 -63% %
Slide 4: Market conditions remained weak in Q4 as expected
INTERIM REPORT JANUARY-DECEMBER 2023 Market conditions remained weak in Q4 as expected Slight improvement in selective areas into Q1 Sales split, %1 Food & Drink Printing & Publishing Papers Consumer & Luxury Industrial LPB (9.4bn) 100% Cartonboard (2.8bn) 25% 75% Containerboard (5.4bn) 80% 10% 10%
Slide 5: Sales decline driven by weak demand and continued price erosion
INTERIM REPORT JANUARY-DECEMBER 2023 Q4’23: Sales decline driven by weak demand and continued price erosion Net sales, SEKm -20% 11 971 +2% -8% -13% -1% 9 566
Slide 6: Efficiency enhancement program and input cost decline unable to offset weak market demand
INTERIM REPORT JANUARY-DECEMBER 2023 Q4’23: Efficiency enhancement program and input cost decline unable to offset weak market demand Adj EBITDA, SEKm -63% Adj. EBITDA 17% 9% 8%
Slide 7: Europe
INTERIM REPORT JANUARY-DECEMBER 2023 REGION Europe
Slide 8: Region Europe
INTERIM REPORT JANUARY-DECEMBER 2023 • Continued weak conditions for all categories except LPB, which is more normalized Region • Negative net sales due to pricing pressure and unfavorable mix. Europe • Sales volume flat Reduced profitability first and foremost from lower sales prices and unfavorabl
Slide 9: Further cost declines in the quarter with fibre price as main driver
INTERIM REPORT JANUARY-DECEMBER 2023 Further cost declines in the quarter with fibre price as main driver. Expecting higher cost base into Q1 Lower cost Lower Lower cost Higher for logistics for fiber energy costs chemicals costs Fibre prices stabilized on Minor decline on Higher spot prices Limited
Slide 10: North America
INTERIM REPORT JANUARY-DECEMBER 2023 REGION North America
Slide 11: Region North America
INTERIM REPORT JANUARY-DECEMBER 2023 • Continued weak conditions, but de-stocking phase is coming to an end Region • Negative net sales due to significantly lower sales volume and North • unfavorable mix Stable pricing for graphic paper, price pressure for specialty and pulp America • Mills still op
Slide 12: Minor movements in North American cost base
INTERIM REPORT JANUARY-DECEMBER 2023 Minor movements in in North American cost base Expected to continue into Q1 Higher Lower cost Lower Higher cost for for energy logistics fiber chemicals costs costs
Slide 13: Continued working capital focus delivering strong cash flow in the quarter
INTERIM REPORT JANUARY-DECEMBER 2023 Continued working capital focus delivering strong cash flow in the quarter SEKm Q4-23 Q4-22 2023 2022 Excellent cash flow conversion of 99% for the year Profit before tax -355 1,181 185 5,873 Adjustments for non-cash items 1,473 1,498 2,963 2,488 Leverage remaini
Slide 14: Efficiency enhancement program: year-end result exceeding accelerated target
INTERIM REPORT JANUARY-DECEMBER 2023 Efficiency enhancement program: Year-end result exceeding accelerated target Now fully mobilized for 2024 2023 over-delivering vs accelerated target • Impact of 215M SEK in Q4 • 615M SEK impact first year of program • Reaching accelerated financial target of 600M
Slide 15: Clear and few company priorities for 2024
INTERIM REPORT JANUARY-DECEMBER 2023 Clear and few company priorities for 2024: Drive profitability improvement and secure long-term attractive positions Proceed with the preparations for our strategic investment projects Implement a selective strategy upgrade for Region Europe Continue to deliver E
Slide 16: Outlook for Q1 2024
INTERIM REPORT JANUARY-DECEMBER 2023 Outlook for Q1 2024 Market conditions expected to slightly improve from weak levels Improved price position in liquid packaging board more than offset price pressure in other categories Increased total input costs Positive impact from efficiency enhancement progr
Slide 17: Interim report January-September 2023
17 INTERIM REPORT JANUARY-SEPTEMBER 2023