1. Carnegie Small & Mid Cap Seminar | September 2014
Per Lindberg, CEO and President, and Susanne Lithander, CFO

2. We challenge conventional packaging for a
Sustainable future

3. BILLERUDKORSNÄS in FACTS & FIGURES
NET SALES (2013)
BUSINESS AREAS 8
PRODUCTION UNITS
(packaging paper, consumer board, containerboard and pulp) 20
37%
Billion SEK
PACKAGING PAPER
Share of net sales (2013)
A STRONGER PLATFORM
FOR GROWTH AND
PROFITABILITY
WITH A FOCUS ON
CUSTOMER VALUE,
INNOVATION AND
SUSTAINABILITY
CREATING NETWORKS
WITH AN OPEN MIND
Beetham
Frövi/Rockhammar
Gruvön
Gävle
Karlsborg
Pietarsaari
Skärblacka
Tervasaari
OPERATING PROFIT
(2013)
36%
1.1
CONSUMER BOARD
Share of net sales (2013)
Billion SEK
The right packaging is key in an expanding global market expected to grow by over 3% per year. Prosperity is increasing around the world and our ambition is to grow along with it, meeting demand in our existing markets and the growth markets of the Asia Pacific and South American regions.
4 300
16%
NUMBER OF EMPLOYEES
CONTAINERBOARD
Share of net sales (2013)

4. BILLERUDKORSNÄS IN FACTS & FIGURES
Europe
74%*
Asia
14%*
Middle East
3%*
Africa
5%*
BillerudKorsnäs operates in the global packaging market providing 1500 customers globally with products and services. The company has customer service centres worldwide.
Others 2%*
South America
2%*
* Of the Group’s net sales 2013

5. CREATING A PLATFORM FOR THE FUTURE

6. A strong platform with increased stability
The two Acquisitions in 2012 resulted in significantly reduced market pulp exposure and lower relative currency exposure
EBITDA margin
Show the 2 acquisitions impact on more narrow EBITDA % range and higher EBTDA margin
Pulp
Currency exposure
Currency exposure
Currency & pulp exposure

7. FOCUSING ON PRIMARY FIBRE-BASED PACKAGING MATERIALS
High performance packaging materials
Target customer segments requiring strong, light and/or pure packaging
Smarter solutions
Focus on value added to customers rather than price
75% of sales going to consumer sectors
Food & Beverages is largest market segment with ~60% of sales
Sustainable innovation is key
Consumers prefer paper over plastics*
*IPSOS, 2007.

8. Our markets are growing faster than the average packaging market
BILLERUDKORSNÄS MARKETS
GLOBAL MARKET
CAGR 5%
Liquid packaging board
CAGR 5%
Cartonboard
CAGR 4%
Brown sack paper (premium grade)
Containerboard
CAGR 3%
Packaging
CAGR 3%
Paper and Board
CAGR 3%
Source: PIRA, The Future of Global Packaging - Market forecasts to 2016, Market value in USD, CAGR , LPB: Zetith & Warrick – Global aseptic packaging 2012
CTB: Nomura, ICCA, Cartonboard: Pira – The future of Folding cartons , Brown sack paper: BillerudKorsnäs’ estimates.

9. OUR ROAD MAP TO SUSTAINABLE PROFITABLE GROWTH
grow in line with the market
Building a strong platform for growth
Using innovation to drive competitiveness
15-20% organic growth by 2018
3 core messages OUR ROAD MAP TO SUSTAINABLE PROFITABLE GROWTH
But before I go into details let me put BillerudKorsnäs in a context, what we do, and why we are successful
Accelerating growth through strategic investments

10. ACHIEVING 15-20% ORGANIC GROWTH BY 2018
BA market CAGR
CONTAINERBOARD
Value growth
Increase margins on existing portfolio
2-4% CAGR
PACKAGING PAPER
Selective growth
Target growth in selected segments, balancing additional capacity
0-4% CAGR
CONSUMER BOARD
Volume growth
Increase volume in key markets
4-5% CAGR 10

11. BUSINESS MODEL
A HOLISTIC APPROACH TO CUSTOMER NEEDS 11

12. WORLD-CLASS PACKAGING MATERIALS LEADING POSITIONS
PACKAGING PAPER
45*/55
CONSUMER BOARD
100*
CONTAINERBOARD
94*/6
Kraft paper
Liquid Packaging Board
Fluting #1
EUROPE
LIQUID PACK. BOARD - ASEPTIC #1
EUROPE and GLOBALLY
LIQUID PACK. BOARD – ALL TYPES #2
EUROPE and GLOBALLY
NSSC FLUTING and PURE WHITE LINER #1
EUROPE
Sack paper
Cartonboard
Liner #2
EUROPE and GLOBALLY**
COATED WHITE TOP LINER #2
EUROPE 12
* Share to Consumer segment
** For High-Porosity Sack Paper

13. SOLUTION SERVICES Comprehensive knowledge of the whole value chain
Strong technical knowledge of packaging design
Expert assistance in the areas of packaging optimisation, print support and conversion support 13

14. GLOBAL NETWORK Packaging manufacturers Machine manufacturers
Research institutes
More than customers and packaging partners in more than 100 countries 14

15. Moving closer to the end-customer
Brand owners
Consumers
Packaging material
2–5% of the cost
Changing sales channels and sales pitch (value addes – smarter packaging), understand brand owners’ business model
Need to understand end-buyer i.e. consumers
Packaging manufacturers
Packaging material 50–85% of the cost

16. Key Highlights Q2 2014 INTERIM REPORT
Net sales SEK million. Adjusted operating profit sek 467 million 3%
- 5% 2%
Net Sales
Compared to Q net sales has increased 2%. Improvements were due to
- improved product mix (more paper than pulp)
- 2% volume increase (PP+20 kton of which Gävle is 15kton, CSB +7kton pulp, CTB -14kton)
- more favourable exchange rates (+MSEK 134)
Compared to previous quarter net sales decreased 5% due to periodic maintenance shutdowns.
Compared to Jan-Jun 2013 net sales +3% due to
- mix (more paper than pulp)
- volume (+4% = 56kton of which Gävle pulp is ~27kton)
- currency exchange rate (+225 msek)
Adj op profit
Compared to Q profit level has increased by 44% mainly due to
- realised synergies primarily within purchasing and logistics (76 msek)
- higher volumes (2% (PP+20 kton of which Gävle is 15kton, CSB +7kton pulp, CTB -14kton)
- exchange rate (134msek)
- prices -39 msek
Compared to previous quarter profit level has decreased 16% due to
- periodic maintenance shutdowns (143msek)
- additional extra production cost 25msek (offset by synergies and result decent in spite of problems)
- (positive SEK effect +55msek).
Compared to Jan-Jun MSEK 260 (34%)due to
- Mix & volume = +110msek
- synergies (+154 msek)
- pris (-85 msek)
All 2013 comparable numbers include Bomhus Energi AB.

17. Key Highlights Q2 2014 INTERIM REPORT
Cash flow SEK 433 million. ROCE 8%, Net debt/equity 0.79
Operating cash flow
A strong operating cash flow for the first half of the year thanks to improved operating profit and reduced working capital. Also the level of investment are lower than previous year
ROCE
Q2 acc ( )*2-480 = / = ~8,4%
Q2 iso 470*4-480= /18000 = ~7,8%
Q1 iso 550*4-480= /18000 = ~10% (9,6%)
Current level is 8% and indicates an improvement over the year thanks to improved margins.
Net debt/equity
Increase on the ratio from Q due to dividend pay-out of 465 MSEK
Net debt = MSEK 8 022, increase with 13 msek (due to lower cash +90msek & have lowered loans with -75 msek) from Q1 due to lower cash.
Equity MSEK 193 lower compared to previous quarter, from MSEK to MSEK due to dividend.
(Bomhus is included in 2013 comparisons)
Restructuring of the debt portfolio
1. renegotiated RCF of 5500 msek to better terms and 5 yr duration
2. Cancelled RCF of 800 msek and replaced with 400 msek term loans maturing 2019 & 2020 plus 400 msek shortterm SEK termloan
3. Transferred 2 termloans 1200 msek to parent company from Korsnäs
All 2013 comparable numbers include Bomhus Energi AB.

18. On track to reach synergy targets ahead of plan
Annual pace of MSEK ~490 AS PER END OF Q2 2014
Target
*Synergies and savings realised in the quarter, compared to if the synergy and savings programme had not been initiated.

19. FOUR FINANCIAL TARGETS
Operating margin > 10%*
Return on Capital Employed > 13%*
Net debt/Equity ratio
< 0.9
Dividend policy:
50% of net profit*
Konstatera vilka våra finansiella mål är… 19
* Over a business cycle.

20. Our commitment to long-term shareholder value
Fulfilment
Focus areas
Short-term
Restore margins
Pay down debt
Mid-term
Achieve profitable growth
Stated dividend policy
…för att sedan berätta hur vi ser på när de ska uppnås
Long-term
Achieve ROCE >13%

21. outlook
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 Estimated non-recurring costs for realising the synergies increased to approximately SEK 225 million

22. Q&A