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Q1 January March 2017 INTERIM REPORT JANUARY-MARCH 2017 2017-04-20 - PowerPoint PPT Presentation

May 21, 2023 •306 likes •549 views

Q1 January March 2017 INTERIM REPORT JANUARY-MARCH 2017 2017-04-20 Per Lindberg, CEO and President, and Susanne Lithander, CFO 1 Q1 2017 RESULTS AT A GLANCE NET SALES 5 % PACKAGING PAPER OTHER 5,636 Kraft paper Sack paper GROWTH 7%

  1. Q1 January – March 2017 INTERIM REPORT JANUARY-MARCH 2017 2017-04-20 Per Lindberg, CEO and President, and Susanne Lithander, CFO 1

  2. Q1 2017 RESULTS AT A GLANCE NET SALES 5 % PACKAGING PAPER OTHER 5,636 Kraft paper Sack paper GROWTH 7% Market pulp SEK million 38% SHARE 38% OF SALES EBITDA CONSUMER BOARD 17% 16 % Liquid packaging board CORRUGATED SOLUTIONS 923 Cartonboard Fluting MARGIN Liner SEK million Managed Packaging 2

  3. 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

  4. PRODUCTION ON ALL-TIME HIGH EXCLUDING TERVASAARI, INCLUDING PULP TO PM2 kton/q kton/a 750 2900 Per Q 4Q roll 12m rolling CAGR 2014-16 3% 725 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

  5. FINANCIAL DEVELOPMENT 5

  6. SALES VOLUMES KTON 1000 +3% 800 722 701 698 695 693 692 689 670 668 600 400 200 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2015 2016 2017 6

  7. NET SALES SEK MILLION 6000 +5% 5800 5600 5636 5634 5489 5478 5468 5400 5439 5393 5357 5200 5213 5000 4800 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2015 2016 2017 7

  8. EBITDA SEK MILLION 1600 -9% 1400 1384 1200 1000 1051 1037 1017 923 897 800 859 693 600 671 400 200 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2015 2016 2017 8

  9. 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

  10. 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

  11. LEVERAGE NET DEBT/EBITDA (X) 3,00 2,50 Target: <2.5x 2,00 1,92 1,85 1,50 1,32 1,30 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

  12. BUSINESS AREAS 12

  13. 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 population, increasing environmental awareness and more SELECTIVE GROWTH Asset transformation for increased profitability 2-4% Development of new business models CAGR Expansion to growing markets 13

  14. PACKAGING PAPER BUSINESS AREA Q1 DEVELOPMENT 2,141 Strong performance despite Tervasaari closure Net sales +3% vs Q1-16 NET SALES SEK MILLION Good sales mix and slightly higher prices 392 EBITDA +9% vs Q1-16 Improved market for all kraft and sack papers EBITDA SEK MILLION Q2 sales expected to be on par with Q1 18 % Kraft and sack paper markets expected to remain solid and seasonally strong with potential to increase prices EBITDA MARGIN in local currency 14

  15. CONSUMER BOARD BUSINESS AREA LIQUID PACKAGING BOARD AND CARTONBOARD WITH UNIQUE PROPERTIES Packaging for milk, juice, preserved foods, beauty LIQUID LIQUID PACKAGING BOARD PACKAGING BOARD and healthcare products, confectionary and more – AMBIENT PACKAGES – ALL PACKAGE TYPES #1 #2 Growth driven by high urbanization rate, change in consumer behavior and more GLOBALLY GLOBALLY VOLUME GROWTH Attractive market providing growth opportunities 4-5% Investments for volume growth CAGR Innovation with customers and brand owners 15

  16. CONSUMER BOARD BUSINESS AREA Q1 DEVELOPMENT 2,128 Seasonally strong quarter Net sales +5% vs Q1-16 NET SALES SEK MILLION Inreased sales across the line for liquid packaging board 440 EBITDA -9% vs Q1-16 Spillover effects from 2016 EBITDA SEK MILLION Growth in all parts with particular strength in liquid 21 % packaging board Expected continued firm order situation for liquid EBITDA MARGIN packaging board and further improved order situation for cartonboard 16

  17. 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 EUROPE Growth driven by increasing e-commerce and fresh food consumption, package differentiation and changing supply chains VALUE GROWTH Strong product portfolio setting market standard 2-4% Integrating new business model CAGR Increasing sales to brand owners 17

  18. CORRUGATED SOLUTIONS BUSINESS AREA Q1 DEVELOPMENT 931 Strong quarter Net sales +6% vs Q1-16 NET SALES SEK MILLION Managed Packaging +30% 190 EBITDA -12% vs Q1-16 Harbour strike in Gothenburg EBITDA SEK MILLION Strong order books and sales volumes with stable 20 % prices Expected continued strong demand for fluting and liner EBITDA MARGIN with potential for price increases Managed Packaging is forecasted to continue delivering consistently strong sales growth 18

  19. OUTLOOK 19

  20. 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 the wood costs or wood prices in the second quarter compared to the first quarter. The production unit in Rockhammar may incur additional costs in Q2, approximately SEK 5-10 million. Costs for planned maintenance shutdown in Q2 are estimated to SEK 205 million. 20

  21. SKÄRBLACKA AND GRUVÖN WELL UNDER WAY IMPROVING EFFICIENCY AND SECURING GROWTH Investing in MG integrated to pulp 1 Karlsborg production in Skärblacka, Sweden; SEK 1,3 billion investment . Pietarsaari New board machine in Gruvön, 2 Tervasaari Gävle Sweden with capacity of approx. 2 Frövi Rockhammar 550 000 t/a; Gruvön 1 SEK 5,7 billion investment. Skärblacka Beetham Production start on Production start on MG machine in board machine in Machine in Skärblacka Gruvön Gruvön fully 2 utilised 1 Q2 Q1 Q1 Q1 2016 2017 2018 2019 2023 21

  22. 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

  23. Q&A WE CHALLENGE CONVENTIONAL PACKAGING FOR A SUSTAINABLE FUTURE

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