Billerud Ab · OMXSTO:BILL
Billerud Ab — Jefferies 2025 Paper & Packaging Summit
16 slides from Billerud Ab's conference presentation, Mar 3, 2025
Slide 1: Jefferies 2025 Paper & Packaging Summit
Jefferies 2025 Paper & Packaging Summit 3rd March 2025 Ivar Vatne, CEO & Andrei Krés, CFO
Slide 2: Leader in high performance paper and packaging materials
Leader in high performance paper and packaging materials Serving customers in 100+ countries on six continents Industry know-how and production expertise to develop and produce outstanding material quality Net sales EBITDA 12% 43.5 5.4 SEKbn SEKbn Served markets Head office Production unit Regional
Slide 3: Strong positions in core markets due to our superior product performance and manufacturing expertise
Strong positions in core markets due to our superior product performance and manufacturing expertise Liquid Packaging packaging Fluting Liner Kraft Fluting paper Cartonboard Liner Sack paper Kraft paper Cartonboard boardBoard (aseptic) Region Europe ## 111 #3 2 #2 #5 3 #3 5 #2 Europe Europe Europe E
Slide 4: Financial goals with focus on profitability and asset efficiency
Financial goals with focus on profitability and asset efficiency FINANCIAL GOALS POLICY SAFETY & CLIMATE IMPACT EBITDA Cash Net debt / CO2e reduction ROCE Dividend ratio LTIFR margin conversion EBITDA by 2030 >50% of net >11% >15% >80% <2.5 <1.5 42% reduction* profit *2022 as base year, Scope 1 and
Slide 5: Billerud's strategy – Our Way Forward
Billerud’s strategy – Our Way Forward Safety first: We choose to be safe every day Our purpose guides us: We make high performance packaging materials for a low carbon society We lean on our values: “We care for each other” and “We do what we say” Region North Region Europe: America: Commitment to S
Slide 6: A leading domestic supplier with attractive location and cost position
Region North America: A leading domestic supplier with attractive location and cost position Split by product category1 SEK 12.1 bn Graphic paper, 69% Specialty paper, 18% 18% Net sales1 EBITDA margin1 Market pulp, 13% Escanaba, MI 660 ktons Capacity per year Wisconsin Rapids, WI Quinnesec, MI 320 k
Slide 7: Increasing capacity utilization by expanding into paperboard
Increasing capacity utilization by expanding into paperboard ktons 1,200 1,000 Paperboard 800 Specialty label papers 600 Graphic paper 400 200 Market pulp 0 2025 2026 2027 2028 2029 2030 7
Slide 8: Our capability, unique geography and industry structure give us the right to win in North America
Our capability, unique geography and industry structure give us the right to win in North America Optimize capacity utilization and strengthen profitability Evolve towards Commitment to packaging Region North America graphic and materials with specialty papers modest capex EBITDA >18% over a busines
Slide 9: World leading producer of premium board and paper made of fresh fibers in six integrated mills
Region Europe: World leading producer of premium board and paper made of fresh fibers in six integrated mills Net sales by product category1 SEK 28.3 bn Liquid packaging board, 36% Containerboard, 19% Sack paper, 12% Cartonboard, 10% 12% Net sales1 EBITDA margin1 Kraft & specialty paper, 14% Market
Slide 10: We have clarified roles for each product category
We have clarified roles for each product category Liquid packaging board Maintain strong position Focused Cartonboard and coated liner Accelerate growth category positions SC fluting Drive value in selected applications MG paper Drive value with focus on medical/hygiene Sack paper Optimize target ap
Slide 11: To strengthen our performance we will focus on four selective levers
To strengthen our performance we will focus on four selective levers 01 02 03 04 Secure cost Step change in Fuel momentum Be the preferred competitive mill operating from efficiency choice for our access to fiber in efficiency enhancement customers the Nordics program Region Europe EBITDA >15% over
Slide 12: Robust fourth quarter concluded a year of improved results and launch of new strategy
INTERIM REPORT JANUARY-DECEMBER 2024 Robust fourth quarter concluded a year of improved results and launch of new strategy Q4-24 Change Change Net sales growth of 20%, supported by both regions SEKm vs Q3-24 vs Q4-23 Net sales 11,468 +6% +20% Continued excellent profit delivery in North America Adju
Slide 13: Strong cash conversion in the quarter, further reduced leverage
INTERIM REPORT JANUARY-DECEMBER 2024 Strong cash conversion in the quarter Further reduced leverage SEKm Q4-24 Q4-23 2024 2023 Profit before tax 1,030 -355 2,248 185 Working capital increase due to sales growth Adjustments for non-cash items 582 1,473 2,343 2,963 Leverage reduced further to 1.0x EBI
Slide 14: Better-than-expected market conditions during Q4, somewhat improved market sentiment in Q1'25
Better-than-expected market conditions during Q4 Somewhat improved market sentiment in Q1’25 Sales split, %1 Food & Drink Printing & Publishing Papers Consumer & Luxury Industrial LPB (10.1bn) 100% Cartonboard (2.7bn) 25% 75% Containerboard (5.5bn) 80% 10% 10% Kraft & Specialty Paper (5.1bn)2 50% 30
Slide 15: Outlook for Q1 2025
Outlook for Q1 2025 Solid market conditions for Region North America Normal conditions for Region Europe except for cartonboard and coated liner that will remain weak Pricing continues to offset input cost increase Temporarily lower sales volumes in Region Europe
Slide 16: BILLERUD
BILLERUD