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Risk management

BillerudKorsnäs recognize that in all its operations and activities there are uncertainties that could have positive and/or negative efffects on the company's objectives, brand and performance. 

Through an efficient risk management process, BillerudKorsnäs strives to maximise the potential opportunities to achieve the company's strategy and objectives, and to minimize the associated risks. 

On an overall level, risk management is governed by the Board of Directors. It then follows the normal delegation scheme, from the Board of Directors to the CEO and from the CEO to the organisation. In practise this means that most operational risk is managed by Wood Supply, Operations, Commercial and Group functions on a local level, but are coordinated when deemed beneficial to to do so. 

BillerudKorsnäs seeks to minimize risk through preventive measures. Wherever this is not possible, risk is hedged or insured against. 

Sensitivity analysis

    Approximate effects
on earnings before tax 
Variable Change SEKm
Sales volume +/–10% +/–910
Exchange rates, SEK1 +/–10% –/+660
- of which related to EUR +/–10% –/+330
- of which related to USD +/–10% –/+250
- of which related to GBP +/–10% –/+80
Fibre price2 +/–10% –/+840
Electricity price3 +/–10% –/+85
Loan interest rate4 +/–1 percentage point –/+60

1 Excluding effects of currency hedging.
2 Pertains to wood and pulp.
3 Excluding effects of electricity price hedging.
4 Excluding effects of interest hedging.

Cost structure

Breakdown of operating costs, % 
Fibre (wood and external pulp) 36
Chemicals 10
Delivery expenses 10
Energy 4
Other variable costs 6
Employee benefit costs 16
Depreciation/amortisation 7
Other fixed costs 11
Total 100