1

Per Lindberg, CEO and President, and Susanne Lithander, CFO

Carnegie Small & Mid Cap Seminar | September 2014

2

WE

PACKAGING FOR A

BILLERUDKORSNÄS IN FACTS & FIGURES

3

NET SALES (2013)

OPERATING PROFIT(2013)

Beetham

Frövi/Rockhammar

Gruvön

Gävle

Karlsborg

Pietarsaari

Skärblacka

Tervasaari

NUMBER OF EMPLOYEES CONTAINERBOARDShare of net sales

(2013)

CONSUMER BOARDShare of net sales

(2013)

PACKAGING PAPERShare of net sales

(2013)

BUSINESS AREAS

Billion SEK A STRONGER PLATFORM

FOR GROWTH AND

PROFITABILITY

WITH A FOCUS ON

CUSTOMER VALUE,

INNOVATION AND

SUSTAINABILITY

CREATING NETWORKS

WITH AN OPEN MIND

PRODUCTION UNITS(packaging paper, consumer board,

containerboard and pulp)

8

1.1

4 300 16%

36%

37%

Billion SEK

20

BILLERUDKORSNÄS IN FACTS & FIGURES

4* Of the Group’s net sales 2013

Europe

74%*

Asia

14%*

Middle East

3%*

Africa

5%*

South America

2%*

Others

2%*

CREATING A PLATFORM FOR THE FUTURE

5

A STRONG PLATFORM WITH INCREASED STABILITYTHE TWO ACQUISITIONS IN 2012 RESULTED IN SIGNIFICANTLY REDUCED MARKET

PULP EXPOSURE AND LOWER RELATIVE CURRENCY EXPOSURE

6

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

FormerBillerud

BillerudKorsnäs FormerBillerud

BillerudKorsnäs

EB

ITD

A m

arg

in

Currency exposure Currency & pulp exposure

7

FOCUSING ON PRIMARY FIBRE-BASED PACKAGING MATERIALS

High performance packaging materialsTarget customer segments requiring strong, light and/or

pure packaging

Smarter solutionsFocus on value added to customers rather than price

75% of sales going to consumer sectorsFood & Beverages is largest market segment with ~60% of sales

Sustainable innovation is keyConsumers prefer paper over plastics*

*IPSOS, 2007.

OUR MARKETS ARE GROWING FASTER THAN THE AVERAGE PACKAGING MARKET

8Source: PIRA, The Future of Global Packaging - Market forecasts to 2016, Market value in USD, CAGR 2011-2016, LPB: Zetith & Warrick – Global aseptic packaging 2012

CTB: Nomura, ICCA, Cartonboard: Pira – The future of Folding cartons 2011-2016, Brown sack paper: BillerudKorsnäs’ estimates.

GLOBAL MARKETBILLERUDKORSNÄS MARKETS

CAGR 3%

CAGR 3%

CAGR 5%CAGR 5%

CAGR 4%

CAGR 3%

OUR ROAD MAP TO SUSTAINABLE PROFITABLE GROWTHGROW IN LINE WITH THE MARKET

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Building a strong

platform for

growth

Using innovation

to drive

competitiveness

Accelerating

growth through

strategic

investments

15-20%

organic

growth by

2018

ACHIEVING 15-20% ORGANIC GROWTH BY 2018

CONTAINERBOARD

CONSUMER BOARD

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Selective growthTarget growth in

selected segments,

balancing additional

capacity

0-4% CAGR

PACKAGING PAPER

Volume growthIncrease volume in

key markets4-5% CAGR

Value growthIncrease margins on

existing portfolio2-4% CAGR

BA market CAGR

BUSINESS MODEL

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A HOLISTIC APPROACH TO CUSTOMER NEEDS

WORLD-CLASS PACKAGING MATERIALSLEADING POSITIONS

12

45*/55 100* 94*/6

Kraft paper Liquid Packaging Board Fluting

Sack paper Cartonboard Liner

* Share to Consumer segment

** For High-Porosity Sack Paper

#1EUROPE

#2EUROPE and GLOBALLY**

LIQUID PACK. BOARD -ASEPTIC

#1EUROPE and GLOBALLY

LIQUID PACK. BOARD –ALL TYPES

#2EUROPE and GLOBALLY

NSSC FLUTING and PURE WHITE LINER

#1EUROPE

COATED WHITE TOP LINER

#2EUROPE

SOLUTION SERVICES

Comprehensive knowledge of the whole value chain

Strong technical knowledge of packaging designExpert assistance in the areas of packaging optimisation, print support and

conversion support

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GLOBAL NETWORK

Packaging manufacturers Machine manufacturers Research institutes

More than 2 000 customers and packaging partners in more than 100 countries

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Packaging material

2–5% of the cost

Packaging material

50–85% of the cost

Packaging manufacturers

MOVING CLOSER TO THE END-CUSTOMER

Brand owners Consumers

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KEY HIGHLIGHTS Q2 2014 INTERIM REPORT NET SALES SEK 5 128 MILLION. ADJUSTED OPERATING PROFIT SEK 467 MILLION

5 005 5 410 5 128

10 18610 538

0

2 000

4 000

6 000

8 000

10 000

12 000

Net sales, SEKm

16

2%- 5%

324

555

467

762

1 022

0

200

400

600

800

1 000

1 200

Adj. op. profit, SEKm

44%

- 16%

34%

All 2013 comparable numbers include Bomhus Energi AB.

3%

KEY HIGHLIGHTS Q2 2014 INTERIM REPORT CASH FLOW SEK 433 MILLION. ROCE 8%, NET DEBT/EQUITY 0.79

104

433381

818

0

150

300

450

600

750

900

Op. cash flow, SEKm

17

6

8

0

2

4

6

8

10

Jan-Jun 13 Jan-Jun 14

ROCE, %

0,91

0,78 0,79

0,00

0,30

0,60

0,90

Net debt/equity

All 2013 comparable numbers include Bomhus Energi AB.

ON TRACK TO REACH SYNERGY TARGETS AHEAD OF PLANANNUAL PACE OF MSEK ~490 AS PER END OF Q2 2014

18*Synergies and savings realised in the quarter, compared to if the synergy and savings programme had not been initiated.

0

100

200

300

400

500

600

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2013 2014

MS

EK

Quarterly synergies* Annual pace

Target

FOUR FINANCIAL TARGETS

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Operating margin > 10%*Return on Capital

Employed > 13%*

Net debt/Equity ratio

< 0.9

Dividend policy:

50% of net profit*

* Over a business cycle.

• Achieve ROCE >13%

• Restore margins

• Pay down debt

OUR COMMITMENT TO LONG-TERM SHAREHOLDER VALUE

20

Sta

ted

div

ide

nd

po

lic

y

Fulfilment Focus areas

Short-term

Long-term

• Achieve profitable growthMid-term

OUTLOOK

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Demand and order situation is expected to remain stable during the third

quarter 2014 for all business areas

Average prices in local currency are anticipated to stay on current level for

the third quarter 2014 for Packaging Paper and Consumer Board. Pressure

on primary fibre based prices within business area Containerboard

Wood prices are expected to stay on current level for the second half of

2014

The target of approximately SEK 530 million in annual synergies and

savings is unchanged, and is expected to be reached during 2014.

Estimated non-recurring costs for realising the synergies increased to

approximately SEK 225 million

Q&A

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