Billerud Ab · OMXSTO:BILL
Billerud Ab — BillerudKorsnäs — ABG Sundal Collier Packaging Day Seminar 2015
22 slides from Billerud Ab's conference presentation, September 2015
Slide 1: We challenge conventional packaging for a sustainable future
WE PACKAGING FOR A BillerudKorsnäs| September 2015 Per Lindberg, President and CEO 1
Slide 2: Primary fibre-based packaging materials
PRIMARY FIBRE-BASED PACKAGING MATERIALS High performance packaging materials Target customer segments requiring strong, light and/or pure packaging Smarter solutions and sustainable innovation Focus on value added to customers rather than price 75% of sales going to consumer sectors Food & Beverages
Slide 3: BillerudKorsnäs in brief
BILLERUDKORSNÄS IN BRIEF NET SALES 2014 21 CONTAINER BOARD 15% PACKAGING 73% Billion SEK PAPER 16% 39% 3% OPERATING PROFIT CONSUMER BOARD 5% 2014 36% OTHER 2% 1.9 10% SHARE OF SALES SHARE OF SALES Billion SEK Beetham Frövi/Rockhammar 4 300 NUMBER OF EMPLOYEES 8 PRODUCTION UNITS Gruvön Gävle Karlsbor
Slide 4: Our business model
OUR BUSINESS MODEL Packaging and manufacturers World-class packaging materials Research institutes Kraft- and sack paper >2000 customers and Liquid packaging board and packaging partners cartonboard in more than Fluting and liner 100 countries Comprehensive knowledge of the whole value chain Strong
Slide 5: Our value chain
BILLERUDKORSNAS OUR VALUE CHAIN WA CONVERTERS DISTRIBUTION & RETAIL RECYCLING
Slide 6: Mega trends in our favor
MEGA TRENDS IN OUR FAVOR DEMOGRAPHIC SHIFTS AND A CHANGING WORLD MAP SUSTAINABILITY CONNECTING SEVERAL SUBTRENDS CONSUMER BEHAVIOUR IS CHANGING 6
Slide 7: The packaging market in our favor
THE PACKAGING MARKET IN OUR FAVOR Global packaging market USD bn* 1 400 1 200 1 000 800 600 400 200 0 2008 2009 2010 2011 2012 2013 2014 2024e 7 * Source: Smithers Pira 2014
Slide 8: Our strategic stepstones
BILLERUDKORSNAS OUR STRATEGIC STEPSTONES WE CHALLENGE CONVENTIONAL PACKAGING FOR A SUSTAINABLE FUTURE
Slide 9: We have an ambitious growth agenda
WE HAVE AN AMBITIOUS GROWTH AGENDA TARGET 2018 TURNOVER: ~24 BSEK ORGANIC PROFITABLE GROWTH: 15 – 20 %* 9 * Base year 2013
Slide 10: Our strategic stepstones
OUR STRATEGIC STEPSTONES POSITION INNOVATION SUSTAINABILITY EFFICIENCY Expand geographically Increase Drive throughout Improve and in value chain. industry lead. value chain. continuously. INNOVATION AGENDA INVESTMENTS GREENER MATERIAL TECHNOLOGY + OPERATIONAL BUSINESS MODEL INNOVATION EXCELLENCE SE
Slide 11: Our strategic stepstones
e atte wy - BILLERUDKORSNAS OUR STRATEGIC STEPSTONES WE CHALLENGE CONVENTIONAL PACKAGING FOR A SUSTAINABLE FUTURE POSITION INNOVATION SUSTAINABILITY EFFICIENCY Expand geographically Increase industry lead. Drive throughout Improve continuously. and in value chain. value chain. o @ © PEOPLE DRIVE CHA
Slide 12: We are investing
WE ARE INVESTING SUPPORTING OUR GROWTH AMBITIONS BOARD MACHINE (FRÖVI) to be largest of its kind in the world (+100 kton) 2014-2017 FLUTING MACHINE (GRUVÖN) to strengthen leading position (+40 kton) Q2 2015 ✔ SACK PAPER MACHINE (SKÄRBLACKA) to increase volume and improve quality (+20 kton) Q4 2015 E
Slide 13: Investigating further opportunities for growth
INVESTIGATING FURTHER OPPORTUNITIES FOR GROWTH We are launching two feasibility studies (independent of each other): 1. Possibility of installing a new board machine at the production 2015- unit in Gruvön. 2. Possibility of moving MG machine in Tervasaari to Skärblacka. Investigation also includes i
Slide 14: Three business areas
THREE BUSINESS AREAS PACKAGING PAPER CONSUMER BOARD CONTAINERBOARD Kraft paper Liquid packaging board Fluting Sack paper Carton board Liner Cup stock 14
Slide 15: Packaging Paper
PACKAGING PAPER PACKAGING PAPER CONSUMER BOARD CONTAINERBOARD Kraft paper Liquid packaging board Fluting Sack paper Carton board Liner Cup stock % of Group SALES PER SEGMENT 39% NET SALES SEKm 8 101 Industrial, 56% Food & beverages, 21% 37% EBIT Medical & Hygiene, 13% SEKm Consumer & Luxury goods, 1
Slide 16: Consumer Board
CONSUMER BOARD PACKAGING PAPER CONSUMER BOARD CONTAINERBOARD Kraft paper Liquid packaging board Fluting Sack paper Carton board Liner Cup stock % of Group SALES PER SEGMENT 36% NET SALES SEKm Food & beverages, 90% 7 436 Consumer & Luxury goods, 9% 48% EBIT Medical & Hygiene, 1% SEKm Industrial, 0% 9
Slide 17: Containerboard
CONTAINERBOARD PACKAGING PAPER CONSUMER BOARD CONTAINERBOARD Kraft paper Liquid packaging board Fluting Sack paper Carton board Liner Cup stock % of Group SALES PER SEGMENT 15% NET SALES SEKm Food & beverages, 83% 3 148 Consumer & Luxury goods, 10% 22% EBIT Industrial, 6% SEKm Medical & Hygiene, 1%
Slide 18: Strategies per business area to achieve 15-20% organic growth by 2018
STRATEGIES PER BUSINESS AREA TO ACHIEVE 15-20%* ORGANIC GROWTH BY 2018 BA market CAGR PACKAGING PAPER SELECTIVE GROWTH Target growth in selected 0 - 4% CAGR segments, balancing additional capacity CONSUMER BOARD VOLUME GROWTH 4 - 5% CAGR Increase volume in key markets CONTAINERBOARD VALUE GROWTH 2 -
Slide 19: Financial targets and target fulfillment
FINANCIAL TARGETS AND TARGET FULFILLMENT AFTER H1 2015 OPERATING RETURN ON CAPITAL MARGIN > 10%* EMPLOYED > 13%* 11% 12% NET DEBT/EQUITY RATIO < 0.9 DIVIDEND POLICY: ✔ 50% OF NET PROFIT* 0.62 51% FOR 2014 19 * Over a business cycle
Slide 20: Summary
SUMMARY Global trends imply major growth opportunities Sustainability, demographic shifts, digitalization and changed consumer behavior Our four pillar strategy includes: Position expansion, Innovation, Sustainability and Efficiency Major growth investments have been done and will continue We focus
Slide 21: Q&A
BILLERUDKORSNAS Q&A
Slide 22: thy
thy BILLERUDKORSNAS
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