Billerud Ab · OMXSTO:BILL
Billerud Ab — BillerudKorsnäs — Q2 2024 Earnings Presentation
17 slides from Billerud Ab's earnings presentation, Jul 19, 2024
Slide 1: Back to growth, improved profitability and solid cash generation
Back to growth, improved profitability and solid cash generation Interim report January-June 2024 Ivar Vatne Andrei Krés CEO CFO 19th of July 2024
Slide 2: Performance and key highlights Q2 2024
INTERIM REPORT JANUARY-JUNE 2024 Performance and key highlights Q2 2024 Underlying EBITDA improvement both sequentially and Q2-24 Change vs Change vs versus a year ago SEKm Q1-24 Q2-23 Net sales 10,764 +3% +8% Positive pricing and mix effects more than offset sequentially higher input costs Adjusted
Slide 3: Market conditions improved for most categories during Q2
INTERIM REPORT JANUARY-JUNE 2024 Market conditions improved for most categories during Q2 Slight improvement expected going into Q3 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% K
Slide 4: 8% sales increase with higher volumes and improved mix
INTERIM REPORT JANUARY-JUNE 2024 Q2’24: 8% sales increase with higher volumes and improved mix Net sales, SEKm +8% +12% -2% 10 764 9 953 +1% -3%
Slide 5: Profitability recovery through volume/mix and efficiency enhancement program
INTERIM REPORT JANUARY-JUNE 2024 Q2’24: Profitability recovery through volume/mix and help from our efficiency enhancement program Adj EBITDA, SEKm +434% Adj. EBITDA 2% 10% 9%
Slide 6: Region Europe
INTERIM REPORT JANUARY-JUNE 2024 REGION Europe
Slide 7: Region Europe
INTERIM REPORT JANUARY-JUNE 2024 • Improved market sentiment, strong order books Region • Solid net sales performance (+8% vs year ago) – growth across most categories Europe • Sequential pricing and mix help fully offset cost inflation • Heavy maintenance quarter (SEK 400m) – all executed according
Slide 8: Higher input costs mainly from pulpwood
INTERIM REPORT JANUARY-JUNE 2024 Higher input costs mainly from pulpwood Pulpwood costs to increase further into Q3, other items stable Higher cost Higher Higher cost Lower for logistics for fiber energy costs chemicals costs Pulpwood prices reached Minor increase on Seasonally lower Mix driven cost
Slide 9: Region North America
INTERIM REPORT JANUARY-JUNE 2024 REGION North America
Slide 10: Region North America
INTERIM REPORT JANUARY-JUNE 2024 • Market sentiment improved, in particular for specialty paper Region • Very strong net sales growth fueled by volume North • Sequential pricing help from pulp with input costs flat America • • Excellent profitability despite operating rates <70% Maintenance stop in
Slide 11: Total input costs remained stable
INTERIM REPORT JANUARY-JUNE 2024 Total input costs remained stable Minor decline expected into Q3 Higher Lower cost Lower Stable cost for for energy logistics fiber chemicals costs costs Marginally higher pulpwood costs driven by seasonality
Slide 12: Improved cash flow delivery and decreasing net debt leverage
INTERIM REPORT JANUARY-JUNE 2024 Improved cash flow delivery and decreasing net debt leverage SEKm Q2-24 Q2-23 Working capital stable vs Q1 despite higher sales Profit before tax 87 -558 Adjustments for non-cash items 717 595 Leverage remain well below target at 1.6x EBITDA Tax paid -194 -169 Cash f
Slide 13: Efficiency enhancement program: continued strong momentum
INTERIM REPORT JANUARY- JUNE 2024 Efficiency enhancement program: Continued strong momentum On track towards 2024 target Successful first half of the program • Incremental impact of SEK 190m in Q2 incl. FTE reduction program (SEK 390m in H1) • On track to meet expected SEK 700m EBITDA incremental im
Slide 14: New direction to transform production in the US towards packaging materials
INTERIM REPORT JANUARY-JUNE 2024 New direction to transform production in the US towards packaging materials • Not proceed with plans to convert its Escanaba mill to cartonboard production • Better than expected flexibility on existing asset base in North America • Target instead to shift the produc
Slide 15: Company priorities for 2024 remain intact
INTERIM REPORT JANUARY-JUNE 2024 Company priorities for 2024 remain intact: Drive profitability improvement and secure long-term attractive positions Proceed with the preparations for strategic investment projects Execute on updated strategy for Region Europe Deliver EBITDA uplifts from efficiency e
Slide 16: Outlook for Q3 2024
INTERIM REPORT JANUARY-JUNE 2024 Outlook for Q3 2024 Market conditions to improve slightly Positive price and mix impact to offset higher input costs
Slide 17: Interim report January-June 2024
INTERIM REPORT JANUARY-JUNE 2024