Investment case

Five reasons to invest in BillerudKorsnäs

1. Focused and sustainable packaging company

• BillerudKorsnäs combines knowledge of fiber-based materials with efficient production close to the raw material
• Approximately 90% of sales are packaging materials made from natural cellulose fibre
• Six of the Group's eight production plants are fully integrated pulp and board or paper mills
• A growing part of the business consists of innovative packaging solutions
• BillerudKorsnäs has been named leader in our industry by 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
• The non-cyclical market segments Food & Beverage and Health & Hygiene account for over 60% 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

• The need for packaging is increasing with a growing population, urbanisation and digitalisation
• Fibre-based packaging accounts for about 40% of the total packaging market and is expected to grow by around 3% per year
• Sustainability is a strong driving force that increases the demand for renewable packaging material

4. Focus on executing a strategy for profitable growth

BillerudKorsnäs' overall target is a sustainable and profitable growth. By that, we mean among other things growth of 3-4% per year and an EBITDA margin of more than 17%.

Our strategy is based on four strategic priorities: Drive performance, Drive profitable growth by creating customer value, Accelerating the speed in innovation, and Expand in the value chain. Sustainability issues crucial to our competitiveness are integrated into the strategy.

In the near future, we will deliver on concrete strategic initiatives. We will benefit from the investments made in recent years and optimize the use of our resources. In 2020, the focus will be on upgrading our new cardboard machine (KM7), ensuring a safe and stable production and strengthening the cost efficiency throughout the business.

5. Strong cash flow and stable share dividends

Another target is to give BillerudKorsnäs shareholders a good return. There are good opportunities for this as the business generates a strong cash flow. The dividend policy states that 50% of the net profit for the year shall be distributed to the shareholders. Historically, share dividends have been stable even during periods of large investments. Since 2016, the annual dividend has amounted to SEK 4.30 per share.