Billerud Ab · OMXSTO:BILL
Billerud Ab — BillerudKorsnäs — FY2016 Earnings Presentation
12 slides from Billerud Ab's earnings presentation, Feb 2, 2017
Slide 1: Year-End Report January-December 2016
YEAR-END REPORT JANUARY-DECEMBER 2016 2017-02-02 Per Lindberg, CEO and President, and Susanne Lithander, CFO 1
Slide 2: Preparing for the Future
PREPARING FOR THE FUTURE 2016 All-time high production Five production records All-time high sales volumes Growth under target All-time high cash-flow Debt level at 1.08 All-time low working capital End of 2016 Q4 Stable markets in general Adj EBITDA reached SEK 898 million and adj EBITDA margin 16%
Slide 3: Volumes and Sales
VOLUMES AND SALES SALES VOLUMES REACHED ALL-TIME HIGH. NET SALES ON THE SAME LEVEL SALES NET SALES NET SALES* kton VOLUMES SEKm SEKm comparable units +1.4% N/A +0.3% 2 700 2 772 21 000 21 814 21 657 21 000 2 734 21 338 21 393 2 400 18 000 18 000 2 100 15 000 15 000 1 800 1 500 12 000 12 000 1 200 9
Slide 4: Improved Profitability
IMPROVED PROFITABILITY ONE-OFF COSTS IN Q4 AND LATGRAN DIVESTITURE PREVIOUS YEAR EBITDA Adjusted EBITDA* SEKm SEKm 4 000 -10% 4 000 +5% 4 003 3 836 3 500 3 606 3 500 3 661 3 000 3 000 2 500 2 500 2 000 2 000 1 500 1 500 +34% 1 000 +3% 1 000 898 500 671 693 500 672 0 0 Q4 15 Q4 16 Jan-Dec Jan-Dec Q4
Slide 5: Financial Targets
FINANCIAL TARGETS OP. CASH FLOW Adjusted ROCE NET DEBT/EBITDA SEKm % multiple 2.50 2 100 15 2 101 1 800 1 957 14 2.00 13 1 500 10 1.50 1 200 1.24 1.27 900 1.00 1.08 5 600 619 0.50 300 360 0 0 0.00 Q4 15 Q4 16 Jan-Dec Jan-Dec Jan-Dec Jan-Dec Q4 15 Q3 16 Q4 16 15 16 15 16 ROCE based on rolling 12 mont
Slide 6: Packaging Paper Business Area Q4 2016
PACKAGING PAPER BUSINESS AREA Q4 2016 Strong performance Net sales SEK 2 067 million, +2% vs. Q4-15 Good sales mix and high production in integrated mills Favourable exchange rates EBITDA SEK 421 million, +67% vs. Q4-15 EBITDA margin 20% Markets Unchanged paper prices in local currencies, except for
Slide 7: Consumer Board Business Area Q4 2016
CONSUMER BOARD BUSINESS AREA Q4 2016 Stable quarter, but lack of growth Net sales SEK 1 988 million, +3% vs. Q4-15 Product mix Hampered by production disturbances EBITDA SEK 336 million, +14% vs. Q4-15 EBITDA margin 17% Markets Stable order situation and pricing in local currencies Volume growth 7
Slide 8: Corrugated Solutions Business Area Q4 2016
CORRUGATED SOLUTIONS BUSINESS AREA Q4 2016 Continued strong performance Net sales SEK 989 million, +12% vs. Q4-15 Strong demand for liner, fluting back on track Positive currency effect EBITDA SEK 241 million, +18% vs. Q4-15 EBITDA margin 24% Markets Stable pricing and order books for liner and flut
Slide 9: The Largest Investment in BillerudKorsnäs' History
THE LARGEST INVESTMENT IN BILLERUDKORSNÄS’ HISTORY One of the largest investments in Sweden in recent years The investment will streamline BillerudKorsnäs’ production structure New board machine, KM7 SEK 5,7 billion investment Production capacity ~550 000 t/a of liquid packaging board, cartonboard,
Slide 10: Outlook
OUTLOOK Demand and order 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 unchanged in all segments except for the impact of previously announced price increases
Slide 11: Q&A
Q&A We challenge conventional packaging for a sustainable future 11
Slide 12: BillerudKorsnäs
BILLERUDKORSNAS