Investment case

BillerudKorsnäs.......

… is a pure play packaging material and solutions company with a mission to challenge conventional packaging for a sustainable future…

• Only primary fibre in portfolio targeting customers and applications requiring light, strong and pure materials
• Product portfolio consists of 95% packaging material with a growing share of services and solutions
• Nr 1 or  2 within niches where we operate, including kraft paper, sack paper, liquid packaging board and containerboard ¾ of sales towards consumer segment with stable long-term demand growth

…within growth segments backed up by global megatrends…

• Fibre packaging material market expected to grow by 2.2% per year, total packaging market by 3.4% per year
• Global megatrends including urbanisation and e-commerce are driving long-term demand for packaging material
• Sustainability awareness is increasing demand for renewable packaging material

… with a clear growth strategy to capture market potential…

BillerudKorsnäs will achieve profitable growth of  3-4% per year by:

• increasing sales of solutions to brand owners and expanding sales outside Europe
• increasing innovation efforts to develop new packaging solutions expanding potential market segments
• maximizing customer value by offering sustainable products challenging alternative materials
• continuously improving production efficiency

… with a clear innovation focus for a sustainable future…

• Long history of award winning packaging innovations
• Challenging boundaries of fibre based packaging in order to reduce usage of fossil materials

 …delivering stable shareholder returns…

• Average ROCE of 13% during the history of the company
• Average TSR of 23% per year for past 5 years
• Proven track record of accretive M&As and investments