Billerud Ab · OMXSTO:BILL
Billerud Ab — BillerudKorsnäs — Q2 2017 Earnings Presentation
23 slides from Billerud Ab's earnings presentation, Jul 18, 2017
Slide 1: Q2 Interim Report January – June 2017
Q2 January – June 2017 INTERIM REPORT JANUARY – JUNE 2017 2017-07-18 Per Lindberg, CEO and President, and Susanne Lithander, CFO 1
Slide 2: Q2 2017 Results at a Glance
Q2 2017 RESULTS AT A GLANCE NET SALES 3% OTHER PACKAGING PAPER Kraft paper 5 600 GROWTH 9% Sack paper Market pulp SEK million 38% SHARE 37% OF SALES EBITDA CONSUMER BOARD 16% 15% Liquid packaging board CORRUGATED SOLUTIONS 863 MARGIN Cartonboard Fluting Liner SEK million Managed Packaging 2
Slide 3: Q2 2017 Key Highlights
Q2 2017 KEY HIGHLIGHTS Continued high demand across all business areas Stable production volumes EBITDA affected by one-off and extra costs of SEK 55 million and maintenance shutdown costs of SEK 230 million Strong operating cash flow Favourable outlook on both short and long term 3
Slide 4: Financial Development
BILLERUDKORSNAS FINANCIAL DEVELOPMENT
Slide 5: Net Sales
NET SALES SEK MILLION 6000 +3% 5800 5600 5636 5600 5489 5478 5468 5400 5439 5393 5357 5200 5213 5000 4800 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2015 2016 2017 5
Slide 6: EBITDA
EBITDA SEK MILLION 1600 0% 1400 1384 1200 1000 1037 1017 897 923 800 859 863 671 693 600 400 200 0 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2015 2016 2017 6
Slide 7: Operating Cash Flow
OPERATING CASH FLOW SEK MILLION 1000 696 631 619 500 541 360 323 314 155 0 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 -294 -500 2015 2016 2017 7
Slide 8: Return on Capital Employed
RETURN ON CAPITAL EMPLOYED ADJUSTED, ROLLING 12 MONTHS (%) 16 Target: >13% 14 14 13 13 13 13 13 13 12 12 8 4 0 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2015 2016 2017 8
Slide 9: Leverage
LEVERAGE NET DEBT/EBITDA (X) 3.00 2.50 Target: <2.5x 2.00 1.92 1.50 1.30 1.32 1.35 1.24 1.24 1.27 1.19 1.00 1.08 0.50 0.00 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2015 2016 2017 9
Slide 10: Business Areas
BILLERUDKORSNAS BUSINESS AREAS
Slide 11: Packaging Paper Business Area
PACKAGING PAPER BUSINESS AREA KRAFT AND SACK PAPER FOR CUSTOMERS WITH TOUGH DEMANDS Packaging for flour, sugar, carrier bags, medical KRAFT PAPER SACK PAPER packaging, building materials, chemicals and more #1 #2 Growth driven by population growth in emerging GLOBALLY GLOBALLY markets, ageing popula
Slide 12: Packaging Paper Business Area: Q2 Development
PACKAGING PAPER BUSINESS AREA Q2 DEVELOPMENT Continued strong performance Net sales +3% vs Q2-16 2 151 NET SALES SEK MILLION Improved FX and increased local prices EBITDA +17% vs Q2-16 Good sales mix, increased local prices and favourable FX 312 EBITDA SEK MILLION Improved market for all kraft and s
Slide 13: Consumer Board Business Area
CONSUMER BOARD BUSINESS AREA LIQUID PACKAGING BOARD AND CARTONBOARD WITH UNIQUE PROPERTIES LIQUID LIQUID Packaging for milk, juice, preserved foods, beauty PACKAGING BOARD – AMBIENT PACKAGES PACKAGING BOARD – ALL PACKAGE TYPES and healthcare products, confectionary and more #1 #2 Growth driven by hi
Slide 14: Consumer Board Business Area: Q2 Development
CONSUMER BOARD BUSINESS AREA Q2 DEVELOPMENT Continued volume growth Net sales +4% vs Q2-16 2 099 NET SALES SEK MILLION EBITDA +4% vs Q2-16 Increased sales volumes Continued growth in all parts 498 EBITDA SEK MILLION Expected continued firm order situation for liquid packaging board with normal seaso
Slide 15: Corrugated Solutions Business Area
CORRUGATED SOLUTIONS BUSINESS AREA FLUTING AND LINER ADD VALUE Packaging for fruit and vegetables, white goods and electronics, exclusive drinks and more COATED WHITE PURE WHITE NSSC FLUTING TOP LINER LINER Supply chain solutions and packaging #1 #2 #2 optimisations for brand owners EUROPE EUROPE EU
Slide 16: Corrugated Solutions Business Area: Q2 Development
CORRUGATED SOLUTIONS BUSINESS AREA Q2 DEVELOPMENT Net sales +8% vs Q2-16 Improved local prices and FX 902 NET SALES SEK MILLION EBITDA +25% vs Q2-16 Lower maintenance cost Negative impact from digester breakdown 163 Strong order books and increased prices in Europe EBITDA SEK MILLION Expected contin
Slide 17: Outlook
BILLERUDKORSNAS OUTLOOK 17
Slide 18: Outlook
OUTLOOK Demand and order situation are expected to be strong in the third quarter with normal seasonal variances for all business areas. The Packaging Paper and Corrugated Solutions business areas see opportunities for local price increases in the next quarter. Longer transportation of wood is expec
Slide 19: Skärblacka and Gruvön Well Under Way
SKÄRBLACKA AND GRUVÖN WELL UNDER WAY IMPROVING EFFICIENCY AND SECURING GROWTH A Yankee cylinder of 160 tons on the move from Tervasaari to Skärblacka Investing in MG integrated to New board machine in Gruvön, pulp production in Skärblacka, Sweden with capacity of Sweden; approx. 550 000 t/a; SEK 1,3
Slide 20: Understanding Solution Sales
UNDERSTANDING SOLUTION SALES CONCEPT DEFINITIONS Packaging Solutions Systems Solutions Ready-to-use packaging solutions Product solutions including both materials BillerudKorsnäs sells ready-made and machine (and machine service) packaging Products using BillerudKorsnäs material May use BillerudKors
Slide 21: Capital Markets Day on 15-16 November 2017
CAPITAL MARKETS DAY ON 15-16 NOVEMBER 2017 Capital Markets Day in Stockholm on 15 November 2017 and in London on 16 November 2017. More info will be published on www.billerudkorsnas.com 21
Slide 22: Q&A
Q&A WE CHALLENGE CONVENTIONAL PACKAGING FOR A SUSTAINABLE FUTURE
Slide 23: BillerudKorsnäs
BILLERUDKORSNAS