Slide 1: Interim report January-March 2023
Interim report January-March 2023 Challenging quarter with soft demand and all-time-high input costs 26th of April 2023 Christoph Michalski, CEO & Ivar Vatne, CFO
Slide 2: Update on the blastomycosis outbreak at the Escanaba mill
Update on the blastomycosis outbreak at the Escanaba mill On April 14th, Billerud has announced the temporary idling of the Escanaba Mill as a precautionary measure to protect the health and safety of its employees and contractors due to a blastomycosis fungal infection outbreak We work closely
Slide 3: Performance and key highlights Q1 2023
Performance and key highlights Q1 2023 Continued strong net sales growth Change vs Q1 SEKm Q1-23 2022 ➢ +55% Reported Net sales 11,495 +55% ➢ +6% Organic/FX neutral Adjusted EBITDA 1,484 -11% Market-related production downtime in % of net sales 13% -9 pp several mills Operating profit – EBIT 806
Slide 4: Organic net sales growth helped by pricing carry over positions
Organic net sales growth helped by pricing carry over positions Net sales, SEKm +55% +44% 11 495 North America +45% +7% +4% 7 397 *Consolidation of Verso General
Slide 5: Cost inflation rallies past pricing/mix help in Europe
Cost inflation rallies past pricing/mix help in Europe US holding up well despite heavy production curtailment Adj EBITDA, SEKm -11% North America 628 Adj. EBITDA 22% 12% 13% *Consolidation of Verso General
Slide 6: Challenging market conditions during the quarter
Challenging market conditions during the quarter Outlook into Q2 likely more challenging with exception being LPB Food Printing & Consumer Industrial & Drink Publishing & Luxury Papers Sales split, %1 LPB (8.6bn) 100% Cartonboard (3.5bn) 25% 75% Containerboard (5.5bn) 80% 10% 10% Kraft & Speciality
Slide 7: All-time high input costs in Europe, US overall stable
All-time high input costs in Europe US overall stable Stable Slightly higher Lower Stable cost for cost for energy logistics fibre chemicals cost cost Higher Slightly higher Lower Stable cost for cost for energy logistics fibre chemicals cost cost European wood market Price decreases on 2/3 of elect
Slide 8: Paper
Product area Paper General
Slide 9: Paper
Product area Paper Share of net sales 52% Q1 2023 Net Sales almost tripled – mainly result of inclusion of our North American business Organic and FX neutral net sales growth +13% SEKm Q1-23 Q1-22 Change vs previous year Net sales 6,002 2,219 170% of which graphic paper 2,337 – – Volume soft d
Slide 10: Board
Product area Board General
Slide 11: Board
Product area Board Share of net sales 42% Q1 2023 Sales growth +9% vs previous year FX neutral sales growth +5% vs previous year, mainly due to pricing carry over positions SEKm Q1-23 Q1-22 Change Sales growth for all categories Net sales 4,775 4,375 9% of which liquid packaging board 2,479 2,
Slide 12: Weak cash flow quarter driven by working capital increase
Weak cash flow quarter driven by working capital increase Balance sheet remaining strong. SEK m Q1-23 Q1-22 Negative cash flow conversion due to lower operating Profit before tax 726 1,145 liabilities and one-off tax payment Adjustments for non-cash items 548 372 Inventory above target level – b
Slide 13: 3-years profit and efficiency enhancement program on track to meet 2023 target
3-years profit and efficiency enhancement program on track to meet 2023 target Program fully mobilized for 2023 Multiple initiative owners and engagement across full European org 95M SEK EBITDA impact delivered in Q1 On track to meet expected 400M SEK EBITDA impact in 2023 In parallel, also maturing
Slide 14: Priorities for the rest of 2023
Priorities for the rest of 2023 Relentless focus on items that we can control Deliver and accelerate our efficiency enhancement programme Selective curtailments in combination with a focus on price and mix management Cash flow conversion with tight control on working capital Tough choices on cost an
Slide 15: Outlook for Q2 2023
Outlook for Q2 2023 Continued weak market conditions due to customers’ destocking and softer demand Lower volumes on the back of production curtailments Cost inflation expected to ease Intensified price pressure for most categories