Investment case

Five reasons to invest in BillerudKorsnäs

1. Focused and sustainable packaging company

• BillerudKorsnäs contributes to the transition to a climate-neutral society by replacing fossil-based products and stimulating responsible forestry
• 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 eight production plants are fully integrated pulp and board or paper mills
• BillerudKorsnäs has a leading industry position in the Dow Jones Sustainability Index

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. Non-cyclical market segments Food & Beverage and Health & Hygiene account for around 70% of our sales
• As a result of investments in recent years our capacity to produce premium materials has increased
• Europe is our main market, but our presence in Asia and America 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. Executing a strategy for profitable growth

• Our strategy is based on four strategtic priorities: Drive performance, Profitable growth by creating customer value, Accelerate the speed in innovation, and Expand in the value chain
• Our focus is on ramping-up the new board machine at Gruvön, ensuring a safe and stable production, securing a competitive wood supply and strengthening the cost efficiency. 

5. Strong cash flow and stable dividends

An important target is to give BillerudKorsnäs' shareholders a good return. There are good opportunities for this as the business generates strong cash flows. The dividend policy states that 50% of the net profit for the year shall 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.