Billerud Ab · OMXSTO:BILL
Billerud Ab — BillerudKorsnäs — Q4 2015 Earnings Presentation
14 slides from Billerud Ab's earnings presentation, Feb 10, 2016
Slide 1: Year-End Report January-December 2015
YEAR-END REPORT JANUARY-DECEMBER 2015 2016-02-10 Per Lindberg, CEO and President, and Susanne Lithander, CFO 1
Slide 2: What happened in Q4 2015?
WHAT HAPPENED IN Q4 2015? SEKm Planned maintenance costs in quarter -156 Rebuild related costs and start-up delays -154 Additional unexpected maintenance costs and production losses -95 Total impact on quarterly results -405 Approximate impact per business area SEKm Packaging Paper -142 Consumer Boa
Slide 3: Decided actions
DECIDED ACTIONS 2016 final rebuild stage of KM5 in Frövi postponed Investments for 2016 estimated to SEK 1 300 million, excluding future restructuring projects in Gruvön and Skärblacka. Focus on stability and cost efficiency in production 3
Slide 4: 2015 in summary
2015 IN SUMMARY SEKm 6 000 5 478 2015 a strong year in spite of weak Q4 5 362 5 284 5 213 5 000 All financial targets met 4 000 3 000 Growth on target but hampered by 2 000 production problems 1 000 650 507 683 321 Significant tailwind from currency 0 Q1 Q2 Q3 Q4 Several production units reached Net
Slide 5: Key markets stable in Q4
KEY MARKETS STABLE IN Q4 Operating profit reached SEK 320 million and operating margin 6% Underlying markets were in general stable Production input costs remained stable Packaging Paper Brown sack paper market weaker than normal, all other segments stable with normal seasonal variance Consumer Boar
Slide 6: Meeting our targets: net sales and adjusted operating profit
MEETING OUR TARGETS NET SALES GROWTH 5% YOY, ADJUSTED OPERATING PROFIT +12% YOY NET SALES ADJUSTED SEKm SEKm OP. PROFIT 24 000 +5% 3 000 21 000 21 814 18 000 20 853 2 500 +12% 2 244 2 000 15 000 2 000 12 000 1 500 9 000 1 000 6 000 +2% -30% 5 124 5 213 500 3 000 460 321 0 0 Q4 14 Q4 15 Jan-Dec Jan-D
Slide 7: Meeting our targets: strong cash flow, reduced working capital
MEETING OUR TARGETS STRONG CASH FLOW, REDUCED WORKING CAPITAL OPERATING CASH FLOW WORKING CAPITAL SEKm % of net sales 2 400 18 2 000 15 1 957 1 600 1 739 12 13 11 1 200 9 10 800 6 400 3 427 360 0 0 Q4 14 Q4 15 Jan-Dec Jan-Dec 2013 2014 2015 14 15 7
Slide 8: Meeting our targets: ROCE and net debt/equity
MEETING OUR TARGETS REACHING ROCE TARGET AND DECREASING ND/E % ROCE NET DEBT/EQUITY 15 0,90 15 12 11 0,67 0,60 9 0,46 6 0,40 0,30 3 0 0,00 Jan-Dec 14 Jan-Dec 15 2014 Q3 15 2015 8
Slide 9: Packaging Paper business area Q4 2015
PACKAGING PAPER BUSINESS AREA Q4 2015 Stable demand for white sack and kraft paper Net sales SEK 2 202 million, +3% Q4-14 Operating profit SEK 131 million, -28% Q4-14 Shutdown and rebuild costs SEK 118 million Additional costs SEK 24 million Operating margin 6% Markets Stable prices in local currenc
Slide 10: Consumer Board business area Q4 2015
CONSUMER BOARD BUSINESS AREA Q4 2015 Stable and satisfactory market situation with normal seasonal variances Net sales SEK 1 933 million, +9% Q4-14 Operating profit SEK 120 million, -35% Q4-14 Shutdown and rebuild costs SEK 177 million Additional costs SEK 61 million Operating margin 6% Markets Stab
Slide 11: Containerboard business area Q4 2015
CONTAINERBOARD BUSINESS AREA Q4 2015 Stable demand for fluting and liner Net sales SEK 880 million, +8% Q4-14 Operating profit SEK 160 million, +33% Q4-14 Maintenance shutdown costs SEK 15 million Additional costs SEK 10 million Operating margin 18% Markets Stable order situation for fluting and lin
Slide 12: Outlook
OUTLOOK Demand and orders situation for the first quarter is expected to be stable with normal seasonal variances for all business areas. Average prices in local currency in the first quarter are anticipated to be stable. No changes to wood prices are anticipated for the first quarter. Investment le
Slide 13: Q&A
BILLERUDKORSNAS Q&A WE CHALLENGE CONVENTIONAL PACKAGING FORA SUSTAINABLE FUTURE 13
Slide 14: thy
thy BILLERUDKORSNAS