| Net sales by region, % | Per cent |
|---|---|
| Europe | 48 |
| America | 34 |
| Asia | 14 |
| Others | 4 |
This is Billerud
Billerud provides paper and packaging materials that challenge conventional packaging for a sustainable future. We are a world-leading company in superior paper and packaging products made of virgin fibre. We are passionately committed to sustainability, quality and customer value.
Net sales 2022 by region
Net sales 2022 by product category
| Net sales by product category, % | Per cent |
|---|---|
| Graphic paper | 20 |
| Liquid packaging board | 20 |
| Kraft and speciality paper | 13 |
| Containerboard | 13 |
| Sack paper | 9 |
| Cartonboard | 8 |
| Market pulp | 8 |
| Others | 9 |
Key events
Big steps forward in line with our strategy
CEO's statement
Christoph Michalski, President and CEO
In 2022, we delivered a record financial performance and advanced our growth plans for cartonboard. Among the notable highlights for Billerud was our entry into North America.
42.6
Net Sales, SEK bn
8.2
EBITDA, SEK bn
6,100
Number of employees
Global Trends
The trends affecting our industry
Several global trends are having an impact on the paper and packaging industry, particularly demographics which are increasing the demand for packaging, and the sustainability focus that is generating a shift away from plastics to paper products. Billerud has identified five key trends affecting our industry and offering opportunities for growth.
Our targets
Billerud has financial targets for growth and profitability, coupled with principles governing the company’s indebtedness and dividends to shareholders. Three key targets, linked to the climate footprint, safety and customer experience, support our proactive sustainability work.
The target is for net sales to increase by 3–4% per year. This target was greatly exeeded in 2022 as net sales increased by 63%, mainly due to the acquisition of Verso. The organic and currency neutral net sales growth was 16% .
3
Target 3-4%
63
Outcome 63%
The target is an EBITDA margin above 17%. This was achieved in 2022 as the EBITDA margin for the year was 19%. The improved margin was mainly a result of higher sales prices and an improved product mix.
17
Target >17%
19
Outcome 19%
Net interest-bearing debt in relation to EBITDA should be less than 2.5. Proceeds from the rights issue in June 2022 were used to repay loans, and debts were further reduced later in the year. At the end of 2022, the ratio was 0.6, well below the target level.
2.5
Target < 2.5
0.6
Outcome 0.6
The policy is to issue a dividend to shareholders of more than 50% of the net profit. The proposed dividend for 2022 of SEK 7.50 per share, comprising of an ordinary dividend of SEK 5.50 and an extraordinary dividend of SEK 2.00, corresponds to 41% of the net profit for the year.
50
Target >50%
41
Outcome 41%
The 2022 target for emissions of fossil CO2 in the manufacturing process was less than 28 kg/ tonne product. The target was reached as the outcome was 27.7 kg/tonne product in Europe. Billerud’s total carbon footprint increased however by the acquisition of operations in North America.
27.7
Outcome: 27,7
28
Target: <28
The number of accidents per million work hours (LTIFR) for employees in the Group was 5.4 in 2022. The target for the year of less then 5 was not reached. Further efforts are needed to improve safety and our vision is zero injuries.
5.4
Outcome 5.4
5
Target <5
The target for 2022 was that over 78% of customers should consider that Billerud’s work on sustainability creates value. For 2022, we are well over target with 84%.
The customer survey is carried out bi-annually.
78
Target >78%
84
Outcome 84%
Strategy and business model
A strategy for growth in packaging
Our strategy provides a clear direction to profitable and sustainable revenue growth. Since the strategy was first presented in November 2021, major accomplishments have been made. In 2022, Billerud’s net sales grew substantially, both organic and through the acquisition of Verso. The expansion to North America and our strategic choices will enable further profitable growth to 2030 and beyond.
Our business model
Sustainability is at the core of our business. Our production is in ten locations on two continents where responsibly managed wood is close at hand. We make materials from renewable virgin fibres and our products are used for the packaging of food and consumer goods, industrial use and printed communication. People all over the world depend on our materials.
Product areas
Board
The Board product area includes liquid packaging board, containerboard and cartonboard, which are mainly used to produce packaging for food, beverage and consumer products. We are expanding our operations to meet the growth in demand for sustainable board products.
42%
Net sales, SEKm
3 262
EBITDA, SEKm
Paper
The Paper product area expanded in 2022 with the acquisition of Verso in North America. Today, in addition to sack and kraft papers, the product area comprises graphic and specialty papers and market pulp. We will continue to improve the mix and target high-margin applications.
51 %
Net sales, SEKm
5 325
EBITDA, SEKm
Sustainability
Billerud is turning into a company with a strong international presence and sustainability as a primary focus. We continue the transition to a climate-neutral and circular economy based on renewable and recyclable raw material.
Areas where we can make the biggest difference
Safety remains the number one priority for Billerud and constitutes, together with the climate impact and materials for the future, the three areas that are strategically vital for our future competitiveness.
Safety first
Climate impact
Materials of the future
Sustainability is at the core of everything we do
Billerud’s proactive sustainability work over many years has given us a leading position and sustainability is central for our long-term journey in North America. We are conducting a comprehensive analysis of the North American conditions from a sustainability perspective in order to set common baselines and goals for 2023. We are, for example, working on new science-based targets for the whole company.
Our sustainability foundation
With the support of a sustainability foundation, that incorporates those aspects that are fundamental to our sustainability work, our ambition is to continue a sustainable transition by maximising the positive and minimising negative impacts along our value chain.
Thank you for reading
Billerud’s Annual General Meeting will be held on May 24th 2023, 15:00 CET, at 7A Posthuset, Palmsalen, in Stockholm.