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Investment case

Five reasons to invest in BillerudKorsnäs

1. Focused and sustainable packaging company

• Around 90% of sales come from packaging materials made from natural cellulose fibre. In addition, we offer innovative packaging solutions and related services
• Production is efficient and located close to the raw material. Six of the seven production plants are fully integrated pulp and board or paper mills
• BillerudKorsnäs contributes to the transition to a climate-neutral society by replacing fossil-based products and stimulating responsible forestry

2. Strong positions in attractive segments

• BillerudKorsnäs is a leading supplier of high quality liquid packaging board, other board materials, kraft paper and sack paper
• Consumer packaging materials make up most of our production
• As a result of investments in recent years our capacity to produce premium materials has increased
• Europe is our main market, but our global presence is gradually strengthened

3. Operating in a growing market

•Packaging needs are increasing with a growing population, urbanisation and digitalisation
• The market for fibre-based packaging is expected to grow by around 3% per year
• Sustainability is a strong driving force that increases the demand for renewable packaging material

4. Strategy for profitable and sustainable growth

• Our strategy focuses on attractive markets and product segments. Whilst Europe will reimain the main market, new business opportunities will be explored
• To maximise the growth opportunity, operational excellence will be critical. Possibilities to increase production capacity at 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 avaliability 

5. Strong cash flow and stable dividends

There are good opportunities for a good shareholder return as the business generates strong cash flows. The dividend policy states that more than 50% of the net profit will be distributed to the shareholders. Share dividends have been stable even during periods of large investments. Since 2016, the annual dividend has amounted to SEK 4.30 per share.

 

BillerudKorsnäs merges with Verso to become a leading sustainable packaging materials and paper company.

As a key step in fulfilling the 2030 strategy BillerudKorsnäs has acquired Verso – a leading producer of coated paper in the USA. The merger with Verso will be the cornerstone of BillerudKorsnäs’ expansion in North America. Over time, BillerudKorsnäs will create one of the most cost-efficient and sustainable production platforms in the industry.