BillerudKorsnäs — Investor Presentation 2021

Nov 16, 2021

Press release

20:00 CET, 16 November 2021, Solna

BillerudKorsnäs presents new strategy

Tomorrow, BillerudKorsnäs will arrange a Capital Markets Day in Stockholm, during which the company's new strategy will be presented.

"BillerudKorsnäs has an incredible opportunity at the sweet spot of trends supporting a growing demand for our renewable, high-quality products made of primary fibres. We have developed a strategic direction around how to reach a profitable and sustainable revenue growth to 2030," comments Christoph Michalski, President and CEO.

Sustainable growth in packaging materials

BillerudKorsnäs' new strategy focuses on attractive markets with good growth opportunities and product segments where the company has a strong ability to compete.

• Whilst Europe will remain the main market, new business opportunities will be explored, specifically for paperboard in the Americas.
• To maximise the organic growth opportunity operational efficiency will be critical. Therefore, the annual investments in mill maintenance and development are expected to reach SEK 1.5-1.7 billion until 2025.
• Possibilities to increase production capacity at the group's existing facilities or via acquisitions will be evaluated.
• Transformation towards a professional sourcing organisation for wood supply is an integral part of the strategy with the aim to build long term partnerships to secure a competitive fibre availability.
• Additional structural savings under the current cost and efficiency programme is estimated to amount to SEK 130 million during 2022.

The financial targets are largely unchanged:

• Net sales growth of 3-4% per year (unchanged)
• The EBITDA margin above 17% (unchanged)
• The ratio of interest-bearing net debt to EBITDA below 2.5 (unchanged)
• Dividends at least 50% of the net profit (previously 50%)
• A target for return on capital employed has been suspended given the heavy investment programme over the last years

Follow the Capital Markets Day

BillerudKorsnäs' Capital Markets Day 2021 will start at 13:00 CET on 17 November and can be followed here:https://billerudkorsnas.videosync.fi/2021-11-17-cmd2021/register

BillerudKorsnäs provides packaging materials and solutions that challenge conventional packaging for a sustainable future. We are a world leading provider of primary fibre based packaging materials and have customers in over 100 countries. The company has 7 production units in Sweden and Finland and about 4,400 employees in over 13 countries. BillerudKorsnäs has an annual turnover of approximately SEK 24 billion and is listed on Nasdaq Stockholm. www.billerudkorsnas.com

For further information, please contact:

Lena Schattauer, Head of Investor Relations, +46 8 553 335 10 Louise Wileen Bjarke, Head of Press, +46 72 214 35 10

This information constituted inside information prior to publication. This is information that BillerudKorsnäs AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 20.00 CET on 16 November, 2021.