1

Per Lindberg, CEO and President, and Susanne Lithander, CFO

Carnegie Small & Mid Cap Seminar | September 2014

2

WE CHALLENGE CONVENTIONAL PACKAGING FOR A

SUSTAINABLE FUTURE

BILLERUDKORSNÄS IN FACTS & FIGURES

3

NET SALES (2013)

OPERATING PROFIT(2013)

BeethamFrövi/RockhammarGruvönGävleKarlsborgPietarsaariSkärblackaTervasaari

NUMBER OF EMPLOYEES CONTAINERBOARDShare of net sales

(2013)

CONSUMER BOARDShare of net sales

(2013)

PACKAGING PAPERShare of net sales

(2013)

BUSINESS AREAS

Billion SEK A STRONGER PLATFORMFOR GROWTH ANDPROFITABILITY

WITH A FOCUS ONCUSTOMER VALUE, INNOVATION ANDSUSTAINABILITY

CREATING NETWORKSWITH AN OPEN MIND

PRODUCTION UNITS(packaging paper, consumer board,

containerboard and pulp)

8

1.1

4 300 16%

36%

37%

Billion SEK

20

BILLERUDKORSNÄS IN FACTS & FIGURES

4* Of the Group’s net sales 2013

Europe

74%*

Asia

14%*

Middle East

3%*Africa

5%*

South America

2%*

Others

2%*

CREATING A PLATFORM FOR THE FUTURE

5

6

A STRONG PLATFORM WITH INCREASED STABILITYTHE TWO ACQUISITIONS IN 2012 RESULTED IN SIGNIFICANTLY REDUCED MARKET PULP EXPOSURE AND LOWER RELATIVE CURRENCY EXPOSURE

FormerBillerud

BillerudKorsnäs FormerBillerud

BillerudKorsnäs0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

EB

ITD

A m

arg

in

Currency exposure Currency & pulp exposure

7

FOCUSING ON PRIMARY FIBRE-BASED PACKAGING MATERIALS

High performance packaging materialsTarget customer segments requiring strong, light and/or pure packaging

Smarter solutionsFocus on value added to customers rather than price

75% of sales going to consumer sectorsFood & Beverages is largest market segment with ~60% of sales

Sustainable innovation is keyConsumers prefer paper over plastics*

*IPSOS, 2007.

OUR MARKETS ARE GROWING FASTER THAN THE AVERAGE PACKAGING MARKET

8Source: PIRA, The Future of Global Packaging - Market forecasts to 2016, Market value in USD, CAGR 2011-2016, LPB: Zetith & Warrick – Global aseptic packaging 2012CTB: Nomura, ICCA, Cartonboard: Pira – The future of Folding cartons 2011-2016, Brown sack paper: BillerudKorsnäs’ estimates.

GLOBAL MARKETBILLERUDKORSNÄS MARKETS

CAGR 3%

CAGR 3%

CAGR 5% CAGR 5%

Liquid packaging board

Cartonboard

Brown sack paper (premium grade)

Containerboard

Packaging

Paper and Board

CAGR 4%

CAGR 3%

OUR ROAD MAP TO SUSTAINABLE PROFITABLE GROWTHGROW IN LINE WITH THE MARKET

9

Building a strong platform for

growth

Using innovation to drive

competitiveness

Accelerating growth through

strategic investments

15-20% organic

growth by 2018

ACHIEVING 15-20% ORGANIC GROWTH BY 2018

CONTAINERBOARD

CONSUMER BOARD

10

Selective growthTarget growth in selected segments, balancing additional capacity

0-4% CAGR

PACKAGING PAPER

Volume growthIncrease volume in key markets

4-5% CAGR

Value growthIncrease margins on existing portfolio2-4% CAGR

BA market CAGR

BUSINESS MODEL

11

A HOLISTIC APPROACH TO CUSTOMER NEEDS

WORLD-CLASS PACKAGING MATERIALSLEADING POSITIONS

12

PACKAGING PAPER45*/55

CONSUMER BOARD100*

CONTAINERBOARD94*/6

Kraft paper Liquid Packaging Board Fluting

Sack paper Cartonboard Liner

* Share to Consumer segment** For High-Porosity Sack Paper

#1EUROPE

#2EUROPE and GLOBALLY**

LIQUID PACK. BOARD - ASEPTIC

#1EUROPE and GLOBALLY

LIQUID PACK. BOARD – ALL TYPES

#2EUROPE and GLOBALLY

NSSC FLUTING and PURE WHITE LINER

#1EUROPE

COATED WHITE TOP LINER

#2EUROPE

SOLUTION SERVICES

Comprehensive knowledge of the whole value chain

Strong technical knowledge of packaging designExpert assistance in the areas of packaging optimisation, print support and conversion support

13

GLOBAL NETWORK

Packaging manufacturers Machine manufacturers Research institutes

More than 2 000 customers and packaging partners in more than 100 countries

14

Packaging material

2–5% of the cost

Packaging material 50–85% of the cost

Packaging manufacturers

MOVING CLOSER TO THE END-CUSTOMER

Brand owners Consumers

15

16

KEY HIGHLIGHTS Q2 2014 INTERIM REPORT NET SALES SEK 5 128 MILLION. ADJUSTED OPERATING PROFIT SEK 467 MILLION

Q2

13

Q1

14

Q2

14

Jan-J

un 13

Jan-J

un 14

0

2,000

4,000

6,000

8,000

10,000

12,000

5,005 5,410 5,128

10,18610,538

Net sales, SEKm

2%- 5%

Q2

13

Q1

14

Q2

14

Jan-J

un 13

Jan-J

un 14

0

200

400

600

800

1,000

1,200

324

555

467

762

1,022

Adj. op. profit, SEKm

44%

- 16%

34%

All 2013 comparable numbers include Bomhus Energi AB.

3%

17

KEY HIGHLIGHTS Q2 2014 INTERIM REPORT CASH FLOW SEK 433 MILLION. ROCE 8%, NET DEBT/EQUITY 0.79

Q2

13

Q2

14

Jan-J

un 13

Jan-J

un 14

0

150

300

450

600

750

900

104

433381

818

Op. cash flow, SEKm

Jan-Jun 13 Jan-Jun 140

2

4

6

8

10

6

8

ROCE, %

Jan-J

un 13

Q1

14

Jan-J

un 14

0.00

0.30

0.60

0.900.91

0.78 0.79

Net debt/equity

All 2013 comparable numbers include Bomhus Energi AB.

ON TRACK TO REACH SYNERGY TARGETS AHEAD OF PLANANNUAL PACE OF MSEK ~490 AS PER END OF Q2 2014

18*Synergies and savings realised in the quarter, compared to if the synergy and savings programme had not been initiated.

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q42013 2014

0

100

200

300

400

500

600

Quarterly synergies* Annual pace

MS

EK

Target

FOUR FINANCIAL TARGETS

19

Operating margin > 10%*Return on Capital Employed > 13%*

Net debt/Equity ratio < 0.9

Dividend policy: 50% of net profit*

* Over a business cycle.

• Achieve ROCE >13%

• Restore margins• Pay down debt

OUR COMMITMENT TO LONG-TERM SHAREHOLDER VALUE

20

Sta

ted

div

iden

d p

oli

cy

Fulfilment Focus areas

Short-term

Long-term

• Achieve profitable growthMid-term

21

OUTLOOK

Demand and order situation is expected to remain stable during the third quarter 2014 for all business areas

Average prices in local currency are anticipated to stay on current level for the third quarter 2014 for Packaging Paper and Consumer Board. Pressure on primary fibre based prices within business area Containerboard

Wood prices are expected to stay on current level for the second half of 2014

The target of approximately SEK 530 million in annual synergies and savings is unchanged, and is expected to be reached during 2014. Estimated non-recurring costs for realising the synergies increased to approximately SEK 225 million

Q&A

22

23