Slides
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2025-11-12 Ivar Vatne, President & CEO DNB Carnegie Nordic Forest Conference
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We make high performance packaging materials for a low carbon society Our purpose
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Serving 100+ markets from operations in two regions with strong positions in attractive categories Source: AFRY - figures based on capacity Graphic paper Label paper Graphic paper # 1 North America Liquid Packaging Board Sack paperKraft paper Fluting CartonboardLinerLiquid packaging board (aseptic) # 1 Europe # 5 Europe # 3 Europe # 2 Europe # 2 Europe # 3 Europe Liner & Cartonboard # 2 North America Region North America Region Europe New Net sales, SEKbn* 42.7 EBITDA margin* 11% *Rolling 12 months Q4'24-Q3'25
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4 We are facing different market realities in our two regions • Muted consumption • Overcapacity in board (new capacity and reversal of trade flows) • Inability to fully pass on Nordic pulpwood price inflation • Currency headwind EuropeNorth America • Solid market conditions • Favorable market dynamics for US based production - Reliability and predictability - Improved competitiveness vs imports • Stable input costs
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Billerud’s 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 / label papers – Evolve towards packaging materials Region Europe: Strengthen performance through existing asset base Stronger performance culture Embed sustainability in everything we do
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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 Q4’24-Q3'25 210 ktons Market pulp capacity per year 19% EBITDA margin1 Graphic paper, 69% Label paper, 19% Market pulp, 12% Split by product category1 SEK 12.2 bn Net sales1
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Our Evolution journey towards packaging material in North America is progressing High commercial interest for our new Tribute® white kraftliners and Voyager solid bleached board Evolution investment program progressing as per plan Order intake and number of deliveries are increasing 0 2,000 4,000 6,000 8,000 10,000 12,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Packaging Grades Tons (cumulative)
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Region Europe: Leader in virgin fiber packaging material, produced in six pulp-integrated, efficient and versatile 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 Q4'24-Q3'25 Net sales by product category1 Liquid packaging board, 34% Containerboard, 20% Kraft & specialty paper, 14% Sack paper, 13% Cartonboard, 10% Market pulp, % SEK 27.3 bn Net sales1 11% EBITDA margin1
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9 Cost efficiency Mill cost efficiency vs competition (cost curve) Products & customers Product offering to what customer base. Barriers to entry indicate pricing power Value proposition Service, quality, reliability, speed to market, sustainability footprint, etc Competitiveness is depending on several factors
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To strengthen performance in Europe we maintain relentless focus on what is in our control Innovate and sharpen our product offering and value proposition Secure cost competitive wood and increase fiber utilization through recipe optimization Improve mill efficiency and swiftly adjust and optimize production across our mill network Reduce costs through new ways of working, simplification and automation
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Launched cost saving program to improve profitability and competitiveness Expected savings of SEK 500m during 2026, with sequential impact from Q1 onwards Annualized savings of SEK 800m with full effect at the end of 2026 Restructuring costs of SEK 350m in Q3 2025 Cost measures in Region Europe and Group functions Reduction of up to 650 positions
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-10-12% -6-15% -9-12% -5-20% Significant declines in pulpwood prices from Q2’25 peak levels Road-side prices, % decline from peak levels recorded during Q2, 2025 Assortment of softwood and hardwood Source: public pricelists, Landbruksdirektoratet, LUKE Broad-based declines across Nordics and Baltics Downward momentum likely to continue due to good availability and supply/demand balance
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Outlook for Q4 2025 Continued strong performance in North America Lower pulpwood costs in Europe Weak market conditions in Europe
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Billerud is well positioned to weather the industry storm and emerge as a more competitive and stronger company • Well balanced portfolio - Regional - Category - Channel • Focused and niched player in the high-performance packaging material universe • Low debt leverage • Clear regional priorities at low risk profile - US: Committed to graphic / label paper and evolve towards packaging materials - Europe: Strengthen performance through existing asset base