Billerud Ab · OMXSTO:BILL
Billerud Ab — BillerudKorsnäs — Q3 2016 Earnings Presentation
12 slides from Billerud Ab's earnings presentation, Oct 21, 2016
Slide 1: Interim Report January-September 2016
INTERIM REPORT JANUARY-SEPTEMBER 2016 2016-10-21 Per Lindberg, CEO and President, and Susanne Lithander, CFO 1
Slide 2: Firm performance in line with plans
FIRM PERFORMANCE IN LINE WITH PLANS EBITDA reached SEK 1 037 million and EBITDA margin 19% Stable markets in general Consumer Board’s market is firm Packaging Paper’s market is stable with improved sack market Corrugated Solutions’ market improved for fluting Production disturbances related to last
Slide 3: Volumes and sales below expectations
VOLUMES AND SALES BELOW EXPECTATIONS SALES NET SALES NET SALES* kton VOLUMES SEKm SEKm comparable units 2 100 18 000 2 064 2 083 16 000 16 601 16 189 16 000 1 800 16 125 16 018 14 000 14 000 1 500 12 000 12 000 1 200 10 000 10 000 8 000 900 8 000 6 000 6 000 600 695 693 5 478 5 393 5 478 5 285 4 000
Slide 4: Profitability improved according to expectation
PROFITABILITY IMPROVED ACCORDING TO EXPECTATION EBITDA Adjusted EBITDA* SEKm SEKm comparable units 3 600 3 200 +2%* 3 200 3 332 2 800 2 941 2 890 2 800 2 913 2 400 2 400 2 000 2 000 1 600 1 600 1 200 1 200 1 384 1 041 1 038 1 037 800 800 400 400 0 0 Q3 15 Q3 16 Jan-Sep Jan-Sep Q3 15 Q3 16 Jan-Sep Ja
Slide 5: Financial targets
FINANCIAL TARGETS OP. CASH FLOW ROCE NET DEBT/EBITDA SEKm % multiple 20 2,50 1 500 1 597 1 482 16 2,00 1 200 15 12 1,50 900 12 1,30 1,32 1,27 696 8 1,00 600 541 300 4 0,50 0 0 0,00 Q3 15 Q3 16 Jan-Sep Jan-Sep Jan-Sep Jan-Sep Q3 15 Q2 16 Q3 16 15 16 15 16 ROCE based on rolling 12 months 5
Slide 6: Packaging Paper business area Q3 2016
PACKAGING PAPER BUSINESS AREA Q3 2016 Strong performance due to high production Net sales SEK 2 100 million, -3% Q3-15 Unfavourable sales mix Lower pulp price EBITDA SEK 441 million, +9% Q3-15 EBITDA margin 21% Markets Unchanged paper prices in local currencies Improved order situation for brown sac
Slide 7: Consumer Board business area Q3 2016
CONSUMER BOARD BUSINESS AREA Q3 2016 Stable quarter, but lack of growth Net sales SEK 1 975 million, -2% Q3-15 Product mix Currency exchange rates EBITDA SEK 424 million, +3% Q3-15 EBITDA margin 21% Markets Stable order situation and pricing in local currencies Volume growth 7
Slide 8: Slower ramp up in Frövi than expected
SLOWER RAMP UP IN FRÖVI THAN EXPECTED 700 GÄVLE 680 670 655 660 670 650 670 Thousand tonnes 625 655 670 625 600 550 Previous estimates 550 FRÖVI 525 500 500 500 480 470 450 450* 450 430 410 400 395 350 2013 2015 2016 2017 2018 8 * exl. recovery boiler incident
Slide 9: Corrugated Solutions business area Q3 2016
CORRUGATED SOLUTIONS BUSINESS AREA Q3 2016 Continued strong performance Net sales SEK 913 million, -1% Q3-15 Lower prices Currency effect EBITDA SEK 241 million, -3% Q3-15 EBITDA margin 26% Markets Stable pricing and order books for liner Order book for fluting has become stronger with stable prices
Slide 10: Outlook
OUTLOOK Demand and order situation for the fourth quarter is expected to be stable with normal seasonal variances for all business areas. Average prices in local currency in the fourth quarter are anticipated to be unchanged in all segments except for brown sack where a slight increase is expected.
Slide 11: Q&A
Q&A We challenge conventional packaging for a sustainable future 11
Slide 12: BillerudKorsnäs
BILLERUDKORSNAS