Billerud Ab · OMXSTO:BILL
Billerud Ab — Q4 2020 Earnings Presentation
18 slides from Billerud Ab's earnings presentation, Jan 29, 2021
Slide 1: Return to underlying sales growth
Interim report Jan–Dec 2020 Return to underlying sales Q4 growth 2020 29 January 2021 Christoph Michalski, CEO and Ivar Vatne, CFO
Slide 2: Key highlights Q4
Key highlights Q4 Flat net sales, excluding currency effects growth was 2% Sales volumes increased by 5% Adjusted EBITDA 10% Continued positive operational efficiency across key sites Structural savings of SEK 100 million 2
Slide 3: Key highlights 2020
Key highlights 2020 Net sales declined by 2% and neutral FX impact Sales volume growth by 4%, supported by the ramp-up at Gruvön Adjusted EBITDA margin 11% Cost and efficiency programme delivered above target Strong cash flow delivery Leading position in Dow Jones Sustainability Index maintained Pro
Slide 4: Business status and market outlook
Business status and market outlook Sales split, % Food & Drink Medical & Hygiene Consumer & Luxury Industrial LPB (7.7bn*) 100% Cartonboard (1.7bn) 15% 85% Containerboard (3.9bn) 80% 10% 10% Kraft Paper (3.4bn) 35% 10% 15% 40% Sack Paper (2.4bn) 20% 15% 65% Managed Packaging (0.6bn) 100% Market tren
Slide 5: New recovery boiler at the Frövi Mill
New recovery boiler at the Frövi Mill Total investment estimate of SEK 2.6 billion Increased efficiency and integration of the mill Improved environmental performance Planned to be in operation by the end of 2023 The investment is planned to be financed by cash flow from operating activities Cash fl
Slide 6: KM7 Q4'20 and 2021
KM7 Q4’20 and 2021 Progress continued in Q4 – another step in the right direction Negative EBITDA effect reduced to SEK -50M million Accumulated 2020 EBITDA impact of SEK -450 million ~350k tons produced during 2020, mainly uncoated products Key focus for 2021 is to: Improve mix towards higher value
Slide 7: Net Sales: Strong volume/mix growth offset by lower market prices and currency
Net Sales: Strong volume/mix growth offset by lower market prices and currency Net sales, SEKm -0% -5% +3% -2,5% +4,5% -2%
Slide 8: EBITDA impacted by maintenance phasing
EBITDA impacted by maintenance phasing Several positive building blocks partly off-set by pricing and FX Adj EBITDA, SEKm -8% adj for MS Adj EBITDA 11% 8% 10% margin
Slide 9: Raw material costs in Q4
Raw material costs in Q4 Cost of Caustic Purchased Unchanged pulpwood soda cost pulp cost energy decreased decreased impact cost in Q4 decreased Expected to remain Expected to flat in Q1 decrease in Q1 yet risk for volatility remains 9
Slide 10: Cost and efficiency programme
Cost and efficiency programme Delivery of SEK 335 million in 2020 – significantly ahead of target by SEK 35 million SEK 100 million delivered in Q4’20 Program so far split between FTE related savings, operational efficiencies and purchasing activities Ambition to achieve run-rate savings of addition
Slide 11: Product area Board
Product area Board Share of net sales KEY FIGURES Q4 2020 58% Change vs SEKm Q4-20 Q4-19 Net sales 3 370 2% of which liquid packaging board 1 908 -3% of which cartonboard 436 24% of which containerboard 948 8% Net operating expenses, other -2 889 3% EBITDA 481 -2% EBITDA margin 14% +1%pt Strong topl
Slide 12: Product area Paper
Product area Paper Share of net sales KEY FIGURES Q4 2020 31% Change vs SEKm Q4-20 Q4-19 Net sales 1 777 -6% of which sack paper 575 7% of which kraft paper 814 -9% of which pulp 386 -14% Net operating expenses, other -1 612 -2% EBITDA 165 -32% EBITDA, % 9% -4%ppts Net sales decline driven by negati
Slide 13: Cash flow and financial position
Cash flow and financial position SEK m Q4-20 Q4-19 2020 2019 Strong cash flow from operating activites Operating surplus, etc. 646 669 2 406 2 674 due to normalized investment level and Change in working capital, etc. 517 237 -53 -463 strong working capital delivery in Q4 Net financial items, taxes,
Slide 14: Outlook
Outlook Stable and improved market conditions for our products However, demand in some segments continue to be affected by the coronavirus pandemic Positive price movements in selective segments Unchanged fibre costs Operational efficiencies and continued ramp-up at Gruvön 14
Slide 15: BILLERUDKORSNAS
BILLERUDKORSNAS
Slide 16: Appendix
Appendix
Slide 17: Q4 2020 key figures
Q4 2020 NET SALES ROCE* EBITDA* SEK 5 803 m (5 815) 3% SEK 568 m (618) NET SALES NET DEBT/ EBITDA MARGIN* GROWTH Y/Y EBITDA* 0% 10% 2.0 * Adjusted, rolling 12 months 17
Slide 18: CY 2020 key figures
CY 2020 NET SALES ROCE* EBITDA* SEK 5 803 m (5 815) 3% SEK 568 m (618) NET SALES NET DEBT/ EBITDA MARGIN* GROWTH Y/Y EBITDA* 0% 10% 2.0 * Adjusted, rolling 12 months 18