Investment case

1. Focused and sustainable packaging company

• More than 90% of sales come from packaging materials made from fresh fibre, that is natural cellulose pulp wood 
• Production is efficient and located close to the raw material. Seven of the nine production plants are fully integrated pulp and board or paper mills
• Billerud contributes to the climate transition by replacing fossil-based products with fibre-based, and stimulates responsible forestry

2. Strong positions in attractive segments

• Billerud is a leading supplier of high quality liquid packaging board, containerboard, cartonboard, graphic paper, kraft and speciality paper, and sack paper 
• The materials we provide are mainly used for the packaging of food and consumer products 
• Europe is our main market, but we have global presence. In North America we have three production plants and around 1 700 employees 

3. Operating in a growing market

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

4. Strategy for profitable and sustainable growth

• Our strategy focuses on attractive markets and segments. We prioritise growth in paperboard products. North America is an attractive market and our largest growth opportunity. 
• To maximise the growth opportunity, operational excellence will be critical
• Professional sourcing is an integrated part of the strategy. We secure competitive fibre supply by among other things long-term partnerships.  

5. Strong cash flow and stable dividends

There are good opportunities for a good 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.