Risk management

Billerud recognizes that in all its operations and activities there are uncertainties that could have positive and/or negative efffects on the company's objectives, brand and performance. 

Through an efficient risk management process, Billerud strives to maximise the potential opportunities to achieve the company's strategy and objectives, and to minimize the associated risks.

On an overall level, risk management is governed by the Board of Directors. It then follows the normal delegation scheme, from the Board of Directors to the CEO and from the CEO to the organisation. In practise this means that most operational risk is managed by Wood Supply, Operations, Commercial and Group functions on a local level, but are coordinated when deemed beneficial to to do so.

Billerud seeks to minimize risk through preventive measures. Wherever this is not possible, risk is hedged or insured against.

Sensitivity analysis1

Impact on profit/loss before tax

Variable Change SEKm
Sales volume +/– 10% +/– 1,930
Exchange rates, SEK2 +/– 10% –/+ 950
– of which relates to EUR +/– 10% –/+ 360
– of which relates to USD +/– 10% –/+ 490
– of which relates to GBP +/– 10% –/+ 100
Fiber price +/– 10% –/+ 1,210
Electricity price3 +/– 10% –/+ 300
Natural gas4 +/– 10% –/+ 70
Loan interest rate5 +/– 1 percentage point –/+ 40
  1. Sensitivity analysis and breakdown of operating costs for the Billerud Group after the acquisition of Verso. The calculations are based on the company's operating costs for 2022 and include Verso's operating costs during January-March 2022.
  2. Excluding effects of currency hedging.
  3. Excluding effects of electricity price hedging.
  4. Consideration not taken of any future natural gas price hedging.
  5. Refers to the loan and interest conditions on 31 December 2022. Interest rate and loan
    amounts changes in 2023 are not considered.

Cost structure for Billerud
as of 31 December 2022

Breakdown of operating costs, % 
Fibre (wood and external pulp) 30
Chemicals 15
Delivery expenses 13
Energy 6
Other variable costs 2
Employee benefit costs 15
Depreciation/amortisation 7
Other fixed costs 12
Total 100