Slides
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2025-09-18 Ivar Vatne, President & CEO Carnegie Nordic Forest Seminar 2025
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Serving customers in 100+ countries and on six continents Industry know-how and production expertise to develop and produce outstanding material quality Leader in high performance paper and packaging materials Production unit Head office Served markets Regional head office Net sales 43.6 SEKbn Adj EBITDA 5.3 SEKbn 12% Rolling 12 months Q3'24-Q2'25
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We are a primary fiber producer and operate in ~20% of the global paper and board universe Source: AFRY, Numera Global paper and board Primary fiber Recycled fiber Primary fiber paper and board Tissue Newsprint Other Packaging Woodfree papers Mechanical papers Specialty labels 455 m tons 211 m tons Primary fiber paper and board – Eur & NA Europe North America Latin America China Other Asia Middle East & Africa ~90 m tons
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Strong positions in core markets due to our superior product performance and manufacturing expertise Source: AFRY - figures based on capacity Region Europe Region North America Specialty paper Sack paper Kraft paper FlutingLiner Cartonboard Graphic paper Liquid Packaging Board Working with customers and applications requiring lighter, stronger and more sustainable materials # 11 Europe # 5 Europe # 3 Europe # 2 Europe # 2 Europe # 3 Europe Region Europe Region North America Specialty paper Sack paperKraft paper Fluting CartonboardLiner Graphic paper Liquid packaging board (aseptic) # 1 Europe # 5 Europe # 3 Europe # 2 Europe # 2 Europe # 3 Europe # 1 North America # 2 North America
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Changing conditions
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The operating environment has changed – in Europe in particular Fiber situation in Nordics is under pressure Overcapacity concerns in some segments New EU legislations Muted consumer demand
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Our Way Forward
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Billerud’s strategy – Our Way Forward Safety first: We choose to be safe every day Our purpose guides us: We make high performance packaging materials for a low carbon society We lean on our values: “We care for each other” and “We do what we say” Region North America: Commitment to graphic / specialty papers – Evolve towards packaging materials Region Europe: Strengthen performance through existing asset base Stronger performance culture Embed sustainability in everything we do 8
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Financial goals with focus on profitability and asset efficiency FINANCIAL GOALS ROCE >11% EBITDA margin >15% Cash conversion >80% POLICY Net debt / EBITDA <2.5 Dividend ratio >50% of net profit SAFETY & CLIMATE IMPACT LTIFR <1.5 CO2e reduction by 2030 42% reduction* *2022 as base year, Scope 1 and 2
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Region North America: Cost and service leading domestic supplier of graphic and label paper Escanaba, MI 660 ktons Capacity per year Wisconsin Rapids, WI 320 ktons Sheeting capacity per year Quinnesec, MI 430 ktons Paper capacity per year 1) Rolling 12 months Q3’24-Q2'25 210 ktons Market pulp capacity per year 20% EBITDA margin1 Graphic paper, 68% Label paper, 19% Market pulp, 13% Split by product category1 SEK 12.4 bn Net sales1
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We are evolving towards packaging materials while remaining committed to paper 0 200 400 600 800 1,000 1,200 2025 2026 2027 2028 2029 2030 Graphic paper Market pulp Specialty label papers Paperboard ktons
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Evolution program is exceeding expectations 1,000 tons of bleached liner (Tribute®) and low-grammage cartonboard (Voyager®) sold to customers ~50 ongoing product trials with existing and new customers – bigger than expected commercial interest Evolution investment program progressing as per plan INTERIM REPORT JANUARY-JUNE 2025
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Region Europe: World leading producer of premium packaging material made of fresh fibers in six integrated mills Skärblacka, SE 460 ktons Capacity per year Frövi/Rockhammar, SE 500 ktons Capacity per year Gruvön, SE 870 ktons Capacity per year Karlsborg, SE 335 ktons Capacity per year Pietarsaari, FI 200 ktons Capacity per year Gävle, SE 755 ktons Capacity per year 1) Rolling 12 months Q3'24-Q2'25 Net sales by product category1 Liquid packaging board, 34% Containerboard, 20% Kraft & specialty paper, 14% Sack paper, 13% Cartonboard, 10% Market pulp, % SEK 28.0 bn Net sales1 12% EBITDA margin1
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Nordic pulp wood prices are starting to come down from all time high levels 80 90 100 110 120 130 140 150 160 170 180 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2020 2021 2022 2023 2024 2025 Billerud Pulpwood cost index (Q1’20 = 100)
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Cost saving program being introduced to improve profitability and competitiveness Annualized savings of SEK 800m with full effect at the end of 2026, with noticeable impact from Q1’26 Cost measures in Region Europe and Group functions. Involves the potential reduction of up to 650 positions Restructuring costs of SEK 350m in Q3 2025
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Innovation
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Billerud CrownBoard – a complete cartonboard portfolio, tailor-made for your needs
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CrownBoard Craft® – tailor-made for durable beauty CrownBoard Carry – tailor-made to carry the weight CrownBoard Light – tailor-made for the cold and wet CrownBoard Prestige® – tailor-made to attract attention We are adapting to demand with the launch of two new products in our cartonboard portfolio
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Q2 2025 Continued outstanding performance in the US while navigating weakening market in Europe Flat currency-neutral net sales development EBITDA margin of 22% in North America, highest since Q4’22 Challenging earnings in Europe due to weakening demand Excellent cash conversion Evolution program in North America exceeding expectations 0 4 8 12 16 20 2022 2023 2024 r12 Q2'25 EBITDA margin, % 13% Target >15%
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0 1 2 2022 2023 2024 Jun-25 Net debt / EBITDA, ratio Q2 2025 Excellent cash generation, strong financial position and moderate investment level 1.0 0 1 2 3 4 2022 2023 2024 Est 2025 CAPEX, SEK billion Cash flow from operating activities more than doubled vs year ago Capex guidance for 2025 reduced to SEK 3.1 bn Leverage maintained at low level 1.1x adj EBITDA after dividend payout Strategic capex: SEK 0.9 bn Base capex: SEK 2.2 bn CAPEX of SEK 3.1 bn in 2025
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Outlook for Q3 2025 Continued solid conditions in Region North America Stable input costs Weak conditions in Region Europe