Slide 1: Interim Report January-March 2017
Q1 January – March 2017 INTERIM REPORT JANUARY-MARCH 2017 2017-04-20 Per Lindberg, CEO and President, and Susanne Lithander, CFO 1
Slide 2: Q1 2017 Results at a Glance
Q1 2017 RESULTS AT A GLANCE NET SALES 5% OTHER PACKAGING PAPER Kraft paper 5,636 GROWTH 7% Sack paper Market pulp SEK million 38% SHARE 38% OF SALES EBITDA CONSUMER BOARD 17% 16% Liquid packaging board CORRUGATED SOLUTIONS 923 MARGIN Cartonboard Fluting Liner SEK million Managed Packaging 2
Slide 3: Q1 2017 Key Highlights
Q1 2017 KEY HIGHLIGHTS GROWING AGAIN High demand across all business areas All-time high quarterly sales and production volumes EBITDA burdened by one-off costs of SEK 80 million and maintenance shutdown costs of SEK 75 million Skärblacka and Gruvön projects well under way 3
Slide 4: Production on All-Time High
PRODUCTION ON ALL-TIME HIGH EXCLUDING TERVASAARI, INCLUDING PULP TO PM2 kton/q kton/a 750 2900 Per Q 12m 4Q rolling roll CAGR 2014-16 725 3% 2850 700 2800 675 2750 650 2700 625 2650 600 2600 575 2550 550 2500 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2013 2014 2015 2016 2017 4
Slide 5: Financial Development
BILLERUDKORSNAS FINANCIAL DEVELOPMENT
Slide 6: Sales Volumes
SALES VOLUMES KTON 1000 +3% 800 722 701 695 698 692 693 689 668 670 600 400 200 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2015 2016 2017 6
Slide 7: Net Sales
NET SALES SEK MILLION 6000 +5% 5800 5600 5634 5636 5489 5478 5468 5400 5439 5393 5357 5200 5213 5000 4800 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2015 2016 2017 7
Slide 8: EBITDA
EBITDA SEK MILLION 1600 -9% 1400 1384 1200 1000 1051 1037 1017 897 923 800 859 671 693 600 400 200 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2015 2016 2017 8
Slide 9: Operating Cash Flow
OPERATING CASH FLOW SEK MILLION 1000 733 696 631 619 500 541 360 323 155 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 -294 -500 2015 2016 2017 9
Slide 10: Return on Capital Employed
RETURN ON CAPITAL EMPLOYED ADJUSTED, ROLLING 12 MONTHS (%) 16 Target: >13% 14 14 13 13 13 13 13 12 12 12 8 4 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2015 2016 2017 10
Slide 11: Leverage
LEVERAGE NET DEBT/EBITDA (X) 3,00 2,50 Target: <2.5x 2,00 1,92 1,85 1,50 1,30 1,32 1,27 1,24 1,24 1,19 1,00 1,08 0,50 0,00 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2015 2016 2017 11
Slide 12: Business Areas
BILLERUDKORSNAS BUSINESS AREAS
Slide 13: 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 14: Packaging Paper Business Area: Q1 Development
PACKAGING PAPER BUSINESS AREA Q1 DEVELOPMENT Strong performance despite Tervasaari closure Net sales +3% vs Q1-16 2,141 NET SALES SEK MILLION Good sales mix and slightly higher prices EBITDA +9% vs Q1-16 Improved market for all kraft and sack papers 392 EBITDA SEK MILLION Q2 sales expected to be on
Slide 15: 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 16: Consumer Board Business Area: Q1 Development
CONSUMER BOARD BUSINESS AREA Q1 DEVELOPMENT Seasonally strong quarter Net sales +5% vs Q1-16 2,128 NET SALES SEK MILLION Inreased sales across the line for liquid packaging board EBITDA -9% vs Q1-16 Spillover effects from 2016 440 EBITDA SEK MILLION Growth in all parts with particular strength in li
Slide 17: 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 18: Corrugated Solutions Business Area: Q1 Development
CORRUGATED SOLUTIONS BUSINESS AREA Q1 DEVELOPMENT Strong quarter Net sales +6% vs Q1-16 931 NET SALES SEK MILLION Managed Packaging +30% EBITDA -12% vs Q1-16 Harbour strike in Gothenburg 190 EBITDA SEK MILLION Strong order books and sales volumes with stable prices Expected continued strong demand f
Slide 19: Outlook
BILLERUDKORSNAS OUTLOOK 19
Slide 20: Outlook
OUTLOOK Demand and order situation for the second quarter is expected to be strong with normal seasonal variances for all business areas. For business areas Packaging Paper and Corrugated Solutions there are potential for local price increases in the coming quarter. No changes are anticipated for th
Slide 21: Skärblacka and Gruvön Well Under Way
SKÄRBLACKA AND GRUVÖN WELL UNDER WAY IMPROVING EFFICIENCY AND SECURING GROWTH 1 Investing in MG integrated to pulp Karlsborg production in Skärblacka, Sweden; Pietarsaari SEK 1,3 billion investment. 2 New board machine in Gruvön, Tervasaari Gävle Sweden with capacity of approx. 2 Frövi Rockhammar 55
Slide 22: Capital Markets Day on 15 November 2017
CAPITAL MARKETS DAY ON 15 NOVEMBER 2017 Capital Markets Day in Stockholm on 15 November 2017. More info will be published on www.billerudkorsnas.com 22
Slide 23: Q&A: For a Sustainable Future
Q&A WE CHALLENGE CONVENTIONAL PACKAGING FOR A SUSTAINABLE FUTURE
Slide 24: BillerudKorsnäs
BILLERUDKORSNAS