1
INTERIM REPORT JANUARY-JUNE 2016 2016-07-20 Per Lindberg, CEO and President, and Susanne Lithander, CFO
STABILITY AND PRODUCTION PLATFORM INVESTMENT
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Adjusted EBITDA reached SEK 884 million and EBITDA margin 16%
Sales volumes increased with 4% compared to Q2 last year
Production running according to plan towards the end of the quarter
Investment decisions during the quarter to strengthen position within MG kraft
paper
Stable markets in general, with exception for some segments
2% VOLUME GROWTH AND INCREASED SALES FOR COMPARABLE UNITS
5 489 5 439
11 123 10 796
0
2 000
4 000
6 000
8 000
10 000
12 000
Q2 15 Q2 16 Jan-Jun15
Jan-Jun16
3
kton SEKm
IMPROVING VOLUMES AND SALES
SALES
VOLUMES
* Excluding divested and acquired operations
5 284 5 389
10 647 10 746
0
2 000
4 000
6 000
8 000
10 000
12 000
Q2 15 Q2 16 Jan-Jun15
Jan-Jun16
NET SALES
+2%* vs. 2Q15
+1%* vs. 1H15
668 692
1 369 1 390
0
300
600
900
1 200
1 500
1 800
Q2 15 Q2 16 Jan-Jun15
Jan-Jun16
NET SALES*
SEKm
+4% vs. 2Q15
+2% vs. 1H15
YTD EBITDA MARGIN ON TARGET
4
897 884
1 948 1 901
0
400
800
1 200
1 600
2 000
2 400
Q2 15 Q2 16 Jan-Jun15
Jan-Jun16
SEKm
IMPROVING PROFITABILITY
Adjusted EBITDA
* Excluding divested and acquired operations
854 884
1 849 1 901
0
400
800
1 200
1 600
2 000
2 400
Q2 15 Q2 16 Jan-Jun15
Jan-Jun16
Adjusted EBITDA*
+4%* vs. 2Q15
+3%* vs. 1H15
SEKm
MEETING OUR FINANCIAL TARGETS STRONG OP. CASH FLOW, ROCE ABOVE TARGET, NET DEBT/EBITDA INCREASE DUE
TO DIVIDEND PAYOUT
323
631
1 056
786
0
300
600
900
1 200
1 500
Q2 15 Q2 16 Jan-Jun15
Jan-Jun16
5
SEKm
OP. CASH FLOW
12
14
0
4
8
12
16
20
Jan-Jun15
Jan-Jun16
1,92
1,24 1,32
0,00
0,50
1,00
1,50
2,00
2,50
Q2 15 Q1 16 Q2 16
%
ROCE NET DEBT/EBITDA
multiple
ROCE based on rolling 12 months
STRENGTHENING BILLERUDKORSNÄS POSITION IN MG KRAFT PAPER
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Production stop at
Tervasaari site
Q4
2016
Production start
Q3
2016
Q1
2017
Q2
2017 Q3
2017
Q4
2017
Q1
2018
Dismantling, transportation and setup of relocated machine
Installation of surface treatment capacity
Skärblacka production unit to become world leading center for MG kraft
paper production
Total CAPEX of SEK 1 280 million over three years CAPEX guidance for 2016: 1 300 + 120 SEKm
Considerable improvement of production efficiency and margins within
Packaging Paper business area
PACKAGING PAPER BUSINESS AREA Q2 2016
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Maintenance shutdowns and lower prices
impact profitability
Net sales SEK 2 085 million, -4% Q2-15
EBITDA SEK 266 million, -27% Q2-15
EBITDA margin 13%
Markets Stable prices in local currencies, except for weaker brown
sack paper market
Seasonally improved order situation for brown sack paper despite some current
market weakness
Stable order situation for white sack and kraft paper markets
Selective growth
CONSUMER BOARD BUSINESS AREA Q2 2016
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Improving production rates to provide volume
growth in H2
Net sales SEK 2 028 million, -1% Q2-15
EBITDA SEK 479 million, -1% Q2-15
EBITDA margin 24%
Markets Stable order situation and pricing in local currencies
Sales volumes lower than previous year du to production issues in Q4-15 and Q1-16
Volume growth
CORRUGATED SOLUTIONS BUSINESS AREA Q2 2016
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Continued strong performance despite temporarily lower
fluting demand
Net sales SEK 839 million, +16% Q2-15
EBITDA SEK 130 million, +38% Q2-15
EBITDA margin 15%
Markets Stable pricing and order books for liner
Temporarily lower seasonal demand and poor harvest season impact fluting prices
Value growth
OUTLOOK
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Demand and order situation for the third quarter is expected to be stable
with normal seasonal variances for all business areas.
Average prices in local currency in the third quarter are in general
anticipated to be stable with exceptions for some segments.
No changes to wood prices are anticipated for the third quarter.
Gävle and Karlsborg production units will have planned maintenance
shutdowns during the third quarter.
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WE
PACKAGING FOR A
Q&A
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