Slide 1: Year-end Report January-December 2022
Year-end Report January-December 2022 Solid result with sizable contribution from North America ends an outstanding 2022 27th of Jan 2023 Christoph Michalski, CEO & Ivar Vatne, CFO
Slide 2: Performance and key highlights 2022
Performance and key highlights 2022 Outstanding topline growth SEKm 2022 Change vs 2021 +63% Reported Net sales 42,590 +63% +16% Organic/FX neutral Adjusted EBITDA 8,219 +102% All-time-high profitability performance % of net sales 19% +3 pp Operating profit – EBIT 5,687 +186% Price and mix
Slide 3: 2022 was an outstanding year for Billerud - progress made on several fronts
2022 was an outstanding year for Billerud - progress made on several fronts Delivering well on strategic initiatives presented in CMD Nov’21 Record net sales growth and level of profitability. All-time-high ROCE Strong balance sheet – 0.6x net debt / adj EBITDA Successfully completed acquisition of
Slide 4: Performance and key highlights Q4 2022
Performance and key highlights Q4 2022 Continued strong net sales growth SEKm Q4-22 Change vs Q4-21 +79% Reported Net sales 11,971 +79% +14% Organic/FX neutral Adjusted EBITDA 2,092 +95% Strong profitability helped by sizable % of net sales 17% +1 pp contribution from North America Operating
Slide 5: Net Sales almost doubled through inclusion of our North American business
Net Sales almost doubled through inclusion of our North American business and carry-over pricing positions Net sales, SEKm +79% +59% -1% 11 971 North America +60% +15% +6% 6 688 *Consolidation of Verso General
Slide 6: Outstanding profitability contribution from North America
Outstanding profitability contribution from North America Cost inflation exceeds pricing/mix for region Europe Adj EBITDA, SEKm +95% North America 1 123 Adj. EBITDA 16% 17% 17% *Consolidation of Verso General
Slide 7: Market conditions turning less favorable during the quarter
Market conditions turning less favorable during the quarter Outlook into Q1 is more challenging with exception being LPB Food Printing & Consumer Industrial & Drink Publishing & Luxury Papers Sales split, %1 LPB (8.6bn) 100% Cartonboard (3.5bn) 25% 75% Containerboard (5.5bn) 80% 10% 10% Kraft & Spec
Slide 8: Stable cost inflation in North America; pulpwood and chemicals rally cost inflation in Europe
Stable cost inflation in North America Pulpwood and chemicals rally cost inflation further in region Europe Stable Stable Lower Stable cost for cost for energy logistics fibre chemicals cost cost Higher Slightly higher Higher Stable cost for cost for energy logistics fibre chemicals cost cost Europe
Slide 9: Paper
Product area Paper General
Slide 10: Paper
Product area Paper Share of net sales Q4 2022 Net Sales more than tripled – mainly result of inclusion of our North American business Organic and FX neutral net sales growth +16% vs previous year SEKm Q4-22 Q4-21 Change High double-digit sales growth across all Net sales 6,710 2,138 214% categ
Slide 11: Board
Product area Board General
Slide 12: Board
Product area Board Share of net sales Q4 2022 Strong sales growth +21% vs previous year. FX neutral sales growth +13% vs previous year SEKm Q4-22 Q4-21 Change Double digit net sales growth across all categories Net sales 4,564 3,762 21% Volume disappointment due to softer demand and of which
Slide 13: Product Area Board hit by accelerated cost inflation
Q4’22 vs Q3’22: Product Area Board hit by accelerated cost inflation Production disturbances impact result by 3 ppt EBITDA, SEKm EBITDA, % 20% 10% 6% General
Slide 14: Another quarter with strong cash conversion enables all-time-low net debt leverage
Another quarter with strong cash conversion enables all-time-low net debt leverage. ROCE races to 18% Cash flow delivery has been outstanding 2022. SEK m Q4-22 Q4-21 2022 2021 Successfully converted most of EBITDA to OCF (83%) Operating surplus 2,262 1,185 8,054 3,932 Change in working capital -64
Slide 15: Billerud launches a new 3-years profit & efficiency enhancement program
1.5 Bn Billerud launches SEK run rate end 2025 a new 3-years profit & efficiency enhancement program … out of which 0.4 Bn SEK delivered in 2023 General
Slide 16: Billerud launches a new 3-years profit- and efficiency enhancement program
Billerud launches a new 3-years profit- and efficiency enhancement program The cost- and efficiency program we closed in Q4’22 has given us confidence there is much more upside to fulfill company’s potential 3 years journey with initiatives that are delivered within and across functions – starting u
Slide 17: Priorities 2023
Priorities 2023 No change to our strategic direction Deliver on Health and Safety targets Deliver on strategic objectives of sales growth through continuous focus on sustainable packaging opportunities and innovation Deliver on our strategic profitability goals through focus on mix, price management
Slide 18: Outlook for Q1 2023
Outlook for Q1 2023 More challenging market conditions for most product categories, with slower demand for most categories Raw material costs expected to be stable in North America and to increase in Europe Kick-off a 3-years efficiency enhancement programme in region Europe