Billerud Ab · OMXSTO:BILL
Billerud Ab — BillerudKorsnäs — Carnegie Small & Mid Cap Seminar 2015
20 slides from Billerud Ab's conference presentation, September 2015
Slide 1: We Packaging for a Sustainable Future
WE PACKAGING FOR A BillerudKorsnäs| September 2015 Susanne Lithander, CFO 1
Slide 2: Primary Fibre-Based Packaging Materials
PRIMARY FIBRE-BASED PACKAGING MATERIALS High performance packaging materials Target customer segments requiring strong, light and/or pure packaging Smarter solutions and sustainable innovation Focus on value added to customers rather than price 75% of sales going to consumer sectors Food & Beverages
Slide 3: BillerudKorsnäs in Brief
BILLERUDKORSNÄS IN BRIEF NET SALES 2014 21 CONTAINER BOARD 15% PACKAGING 73% Billion SEK PAPER 16% 39% 3% OPERATING PROFIT CONSUMER BOARD 5% 2014 36% OTHER 2% 1.9 10% SHARE OF SALES SHARE OF SALES Billion SEK Beetham Frövi/Rockhammar 4 300 NUMBER OF EMPLOYEES 8 PRODUCTION UNITS Gruvön Gävle Karlsbor
Slide 4: Mega Trends in Our Favor
MEGA TRENDS IN OUR FAVOR DEMOGRAPHIC SHIFTS AND A CHANGING WORLD MAP SUSTAINABILITY CONNECTING SEVERAL SUBTRENDS CONSUMER BEHAVIOUR IS CHANGING 4
Slide 5: The Packaging Market in Our Favor
THE PACKAGING MARKET IN OUR FAVOR Global packaging market USD bn 1 200 CAGR (13-18e: 4,1 %) 1 000 800 600 400 200 0 2008 2009 2010 2011 2012 2013 2018e 5 Source: Smithers Pira 2013
Slide 6: We Look Beyond Traditional Markets
WE LOOK BEYOND TRADITIONAL MARKETS SMARTER PACKAGING SOLUTIONS 6
Slide 7: Successful Integration Has Enabled a Strong Platform for Growth
SUCCESSFUL INTEGRATION HAS ENABLED A STRONG PLATFORM FOR GROWTH 2006 2009 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 BUSINESS CONSUMER SALES STRONG AREAS 3 SHARE 75% AND STABLE PLATFORM 2 60% FOR = GROWTH PULP 530 MSEK RELATIVE MARKET 300 65% in yearly EXPOSURE 150 CURRENCY 30% synergy s
Slide 8: Our Business Model
OUR BUSINESS MODEL NETWORK Packaging and manufacturers Research institutes >2000 customers and packaging partners in more than 100 countries MATERIALS World-class packaging materials Kraft- and sack paper Liquid packaging board and cartonboard Fluting and liner SOLUTION SERVICES Comprehensive knowle
Slide 9: Our Business Model in the Value Chain
OUR BUSINESS MODEL IN THE VALUE CHAIN GLOBAL NETWORK SOLUTION SERVICES MATERIALS OUR PRODUCTION OUR CUSTOMERS UNITS 9
Slide 10: Our Strategic Stepstones
e atte wy - BILLERUDKORSNAS OUR STRATEGIC STEPSTONES WE CHALLENGE CONVENTIONAL PACKAGING FOR A SUSTAINABLE FUTURE POSITION INNOVATION SUSTAINABILITY EFFICIENCY Expand geographically Increase industry lead. Drive throughout Improve continuously. and in value chain. value chain. 8 333) ©) eC) PEOPLE D
Slide 11: We Have an Ambitious Growth Agenda
WE HAVE AN AMBITIOUS GROWTH AGENDA TARGET 2018 TURNOVER: ~24 BSEK ORGANIC PROFITABLE GROWTH: 15 – 20 %* 11 * Base year 2013
Slide 12: Our Four Strategic Pillars
OUR FOUR STRATEGIC PILLARS HOW TO ACHIEVE OUR GROWTH AMBITIONS POSITION INNOVATION SUSTAINABILITY EFFICIENCY Expand geographically Increase Drive throughout Improve and in value chain. industry lead. value chain. continuously. INNOVATION AGENDA INVESTMENTS GREENER MATERIAL TECHNOLOGY + OPERATIONAL B
Slide 13: We Are Investing
WE ARE INVESTING SUPPORTING OUR GROWTH AMBITIONS INVESTMENT DECISIONS 2014 BOARD MACHINE (FRÖVI) To be largest of its kind in the world 450 kton 550 kton 2017 FLUTING MACHINE (GRUVÖN) To strengthen leading position + 40 kton 2016 SACK PAPER MACHINE (SKÄRBLACKA) To increase volume and improve quali
Slide 14: Three Business Areas
THREE BUSINESS AREAS PACKAGING PAPER CONSUMER BOARD CONTAINERBOARD Kraft paper Liquid packaging board Fluting Sack paper Carton board Liner Cup stock NET SALES MSEK 8 101 7 436 3 148 EBIT MSEK 701 915 416 SALES VOLUME KTON 1 167 1 004 528 14 Numbers for 2014
Slide 15: Strategies per Business Area to Achieve 15-20% Organic Growth by 2018
STRATEGIES PER BUSINESS AREA TO ACHIEVE 15-20%* ORGANIC GROWTH BY 2018 BA market CAGR PACKAGING PAPER SELECTIVE GROWTH Target growth in selected 0 - 4% CAGR segments, balancing additional capacity CONSUMER BOARD VOLUME GROWTH 4 - 5% CAGR Increase volume in key markets CONTAINERBOARD VALUE GROWTH 2 -
Slide 16: Financial Targets and Target Fulfillment
FINANCIAL TARGETS AND TARGET FULFILLMENT AFTER H1 2015 OPERATING RETURN ON CAPITAL MARGIN > 10%* EMPLOYED > 13%* 11% 12% NET DEBT/EQUITY RATIO < 0.9 DIVIDEND POLICY: ✔ 50% OF NET PROFIT* 0.62 51% FOR 2014 16 * Over a business cycle
Slide 17: Key Highlights Q2 2015
KEY HIGHLIGHTS Q2 2015 NET SALES GROWTH 6% YOY, OPERATING PROFIT +25% YOY SEKm NET SALES SEKm OP. PROFIT 12 000 1 400 6% 11 123 1 200 25% 10 000 10 538 1 240 1 000 8 000 991 800 7% 6 000 20% 600 5 128 5 489 4 000 542 400 450 2 000 200 0 0 Q2 14 Q2 15 Jan-Jun Jan-Jun Q2 14 Q2 15 Jan-Jun Jan-Jun 14 15
Slide 18: Key Highlights Q2 2015
KEY HIGHLIGHTS Q2 2015 STRONG CASH FLOW, IMPROVED ROCE AND ND/E IMPACTED BY DIVIDEND NET ROCE DEBT/EQUITY SEKm OP. CASH FLOW % 0,90 1 200 12 12 0.79 1 056 900 9 0,60 0.67 0.62 818 8 600 6 0,30 433 300 3 323 0 0 0,00 Jan-Jun Jan-Jun Q2 14 2014 Q2 15 14 15 18
Slide 19: Summary
SUMMARY Global trends imply major growth opportunities Sustainability, demographic shifts, digitalization and changed consumer behavior We have a strong and stable platform on a growing market Major investments have been done and will continue Our four pillar strategy includes: Position expansion, I
Slide 20: thy
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