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 analysis for Billerud
as of 31 December 2021
| Approximate effects on earnings before tax |
||
| Variable | Change | SEKm |
| Sales volume | +/–10% | +/–1020 |
| Exchange rates, SEK1 | +/–10% | –/+590 |
| - of which related to EUR | +/–10% | –/+300 |
| - of which related to USD | +/–10% | –/+210 |
| - of which related to GBP | +/–10% | –/+80 |
| Fibre price | +/–10% | –/+890 |
| Electricity price2 | +/–10% | –/+100 |
| Loan interest rate3 | +/–1 percentage point | –/+54 |
1 Excluding effects of currency hedging.
2 Excluding effects of electricity price hedging.
3 Excluding effects of interest hedging.
Cost structure for Billerud
as of 31 December 2021
| Breakdown of operating costs, % | |
| Fibre (wood and external pulp) | 36 |
| Chemicals | 10 |
| Delivery expenses | 12 |
| Energy | 4 |
| Other variable costs | 3 |
| Employee benefit costs | 16 |
| Depreciation/amortisation | 8 |
| Other fixed costs | 11 |
| Total | 100 |