Billerud Ab · OMXSTO:BILL
Billerud Ab — BillerudKorsnäs — Q1 2024 Earnings Presentation
18 slides from Billerud Ab's earnings presentation, Apr 24, 2024
Slide 1: Improved sequential performance in the wake of positive market sentiment
Improved sequential performance in the wake of positive market sentiment Interim report January-March 2024 Ivar Vatne Andrei Krés CEO CFO 24th of April 2024
Slide 2: Performance and key highlights Q1 2024
INTERIM REPORT JANUARY-MARCH 2024 Performance and key highlights Q1 2024 Q1-24 Change vs Change vs Adjusted EBITDA sequentially up more than 50% SEKm Q4-23 Q1-23 Net sales 10,423 +9% -9% Strengthened order books in both regions and improved capacity utilization in North America Adjusted EBITDA 1,166
Slide 3: Market conditions improved for all categories during Q1
INTERIM REPORT JANUARY-MARCH 2024 Market conditions improved for all categories during Q1 Further improvement expected into Q2 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% Kraft
Slide 4: 9% sales decline on the back of price deterioration
INTERIM REPORT JANUARY-MARCH 2024 Q1’24: 9% sales decline on the back of price deterioration Net sales, SEKm -9% +2% 11 495 -2% -1% -8% 10 423
Slide 5: Solid delivery from efficiency program, input cost decline unable to offset sales price
INTERIM REPORT JANUARY-MARCH 2024 Q1’24: Solid delivery from efficiency enhancement program and input cost decline unable to off-set sales price deterioration Adj EBITDA, SEKm -21% Adj. EBITDA 13% 11%
Slide 6: Europe
INTERIM REPORT JANUARY-MARCH 2024 REGION Europe
Slide 7: Europe
INTERIM REPORT JANUARY-MARCH 2024 • Improved market sentiment from weak levels. Order books filling up. Region • +6% volume uplift vs previous quarter Europe • Sequential pricing help and volume growth fully off-set cost inflation and enabled an improved performance • Liquid packaging board with str
Slide 8: Broad-based input cost increase in Q1; further increase expected
INTERIM REPORT JANUARY-MARCH 2024 Broad-based input cost increase in Q1. Further cost increase expected in coming quarter. Lower cost Higher Higher cost Higher for logistics for fiber energy costs chemicals costs Fibre prices turned up Minor decline on Higher spot prices Logistical challenges during
Slide 9: Europe: Pulpwood prices to reach all-time-high level in Q2
INTERIM REPORT JANUARY-MARCH 2024 Europe: Pulpwood prices to reach all-time-high level in Q2 Billerud Pulpwood cost index, (Q1’20 = 100) 170 160 +60% 150 140 130 120 110 100 90 80 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2020 2021 2022 2023 2024
Slide 10: North America
INTERIM REPORT JANUARY-MARCH 2024 REGION North America
Slide 11: North America
INTERIM REPORT JANUARY-MARCH 2024 • De-stocking phase is completed, positive shift in market sentiment Region • +4% sequential volume growth driving solid profitability performance North • Lower input costs fully off-set negative sales prices – America both sequentially and vs year ago • Mills opera
Slide 12: Marginally lower input costs in North America
INTERIM REPORT JANUARY-MARCH 2024 Marginally lower input costs in North America Minor movements expected into Q2 Lower Lower cost Lower Lower cost for for energy logistics fiber chemicals costs costs
Slide 13: Improved cash flow delivery despite lower profitability
INTERIM REPORT JANUARY-MARCH 2024 Improved cash flow delivery despite lower profitability SEKm Q1-24 Q1-23 Cash flow conversion of 17% in the quarter, impacted by working capital build-up in the wake of higher sales Profit before tax 386 726 Adjustments for non-cash items 469 548 Net debt at 1.9x EB
Slide 14: Efficiency enhancement program: solid start to the year
INTERIM REPORT JANUARY-MARCH 2024 Efficiency enhancement program: Solid start to the year On track for 2024 ambition Continued engagement across full European organization • +200M SEK in Q1 incl. FTE reduction program vs last year • On track to meet expected 700M SEK EBITDA incremental impact in 202
Slide 15: Wisconsin Rapids sale
INTERIM REPORT JANUARY-MARCH 2024 Wisconsin Rapids sale Agreement reached to divest idled Wisconsin Rapids mill assets for a cash consideration of approx. SEK 60 million First quarter result negatively impacted with SEK 6 million, no additional impact expected Operations at Wisconsin Rapids converti
Slide 16: Company priorities for 2024 remain intact
INTERIM REPORT JANUARY-MARCH 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
Slide 17: Outlook for Q2 2024
INTERIM REPORT JANUARY-MARCH 2024 Outlook for Q2 2024 Improved market conditions for both regions Increased sales prices expected to offset higher input costs mainly driven by higher pulpwood prices Maintenance shutdowns estimated to have a cost impact of SEK 525 million
Slide 18: INTERIM REPORT JANUARY-MARCH 2024
INTERIM REPORT JANUARY-MARCH 2024