Annual and
Sustainability Report

Summarised online version

For 2016, financial and non-financial information is presented in a joint annual and sustainability report, reflecting Billerudkorsnäs’ mission – to challenge conventional packaging for a sustainable future. The online version is a summary version of the annual report.

– We challenge conventional packaging
for a sustainable future

BillerudKorsnäs offers the global packaging market world-leading paper and board material and smart solutions for optimal and sustainable packaging.

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Chapter 1

2016 in brief

2016 saw BillerudKorsnäs deliver strong results and good margins, in a year that was also marked by a historic decision to invest in a new board machine in Gruvön. This multi-billion investment is proof of our conviction that we need to be challenging and go on the offensive in order to deliver the change that the future demands.

Per Lindberg, President and CEO

Read full CEO statement

Targets and target fulfilment

Management by objectives for long-term value creation

To support BillerudKorsnäs’ target for profitable growth and a good return for shareholders, the company has established five financial targets, as well as a number of non- financial targets relating to sustainable development in particular focus areas.

Financial targets


Growth target
Long-term target for growth of 3–4% per year.

Target 3-4% Result 0,3%

The target was not reached despite record production and sales volumes, primarily due to disruptions to production and supply.

1 For comparable units

EBITDA margin
The EBITDA margin should exceed 17%.

Target >17% Result 17%

Excluding restructuring costs related to the investment in Gruvön, the target was achieved. The results for 2015 were affected by the capital gain from the disposal of Latgran.


Return on capital employed
Return on capital employed (ROCE) should exceed 13%.

Target >13% Result 12%

Excluding restructuring costs related to the investment in Gruvön, the target was achieved. The results for 2015 were affected by the capital gain from the disposal of Latgran.


Interest-bearing net debt/EBITDA
Interest-bearing net debt in relation to EBITDA should be less than a multiple of 2.5.

Target <2,5 1,1

The target was reached, in part due to lower interest-bearing net debt.


Dividend policy
The dividend should amount to 50% of net profit.

Target 50% Result 59%

The Board’s proposed dividend of SEK 4.30 per share for 2016 entails fulfilment of the dividend target.

2 Board’s proposal

Non-financial targets

122 no.

Certified wood raw materials
No. of group-certified forest owners in BillerudKorsnäs’ group certificates for FSC® and PEFC™. (No.)

Target >120 no. Result 122 no.

The target was reached. Internal development of working methods for timber purchasers contributed towards the result.


Workplace safety
Work-related accidents with sick leave.
(No./100 employees)

Target <1,0 Result 1,5

The target was not met, but the number of work-related accidents fell compared with 2015 thanks to internal cooperation, management and prioritisation.


Gender equality
Female employees. (%)

Target >20,5% Result 21%

The targets were partly reached. The proportion of female employees increased but the proportion of female managers fell somewhat.


High level of innovation for products
Proportion of sales accounted for by new products. (%)

Target >15% Result 13%

The target was not reached, due in part to postponed product launches.


Energy efficiency
Energy consumption. (MWh/tonne product, net)

Target <5,31 Result 5,35

The target was not reached, due in part to postponed product launches.


Fossil free production
Emissions of fossil CO2 in the manufacturing process. (Kg/tonne product)

Target <27 Result 29,2

The target was not fully reached due to certain production disruptions at the end of the year.

Chapter 2

Our business

Examples of how Billerudkorsnäs puts its strategy into effect

Azello Zap
Case Azello Zap
Renewable packaging solutions
Case Renewable packaging solutions
From PET to corrugated board
Case From PET to corrugated board
Cartonboard in the USA
Case Cartonboard in the USA
Case Beetham
Paper bags are the low-carbon choice
Case Paper bags are the low-carbon choice

World overview

Global trends are increasing the need
for sustainable solutions

Business has a key role to play in nding solutions to the major challenges that developments in the modern-day world are presenting us with. The opportunities lie in taking responsibility along the value chain, as well as focusing on innovation and strategic collaborations.

Mobility revolution
Mobility revolution
Transformation of traditional value chains
Transformation of traditional value chains
Sustainability – in action everywhere
Sustainability – in action everywhere
Digitalisation & connectivity
Digitalisation & connectivity
Beyond demographics
Beyond demographics
Future business perspectives and packaging opportunities

Future business perspectives and packaging opportunities

Integrating the needs and wishes of customers and customers’ customers into ongoing innovation and development work will be crucial for the packaging industry’s ability to exploit the potential opened up by a changing world.

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Position with potential

BillerudKorsnäs’ production, based on primary fibre from responsible forestry, provides a sound basis for meeting global challenges and challenging conventional packaging for a sustainable future. With sustainability at the heart of our business, we can meet the high expectations of customers and the wider world.

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Strategic platform

Strategy for a sustainable future

BillerudKorsnäs’ mission – to challenge conventional packaging for a sustainable future – describes the purpose of our business. Profitable growth is a crucial factor in challenging less sustainable packaging solutions over time. To achieve profitable growth, we are intensifying our work within four strategic areas. BillerudKorsnäs’ 4 300 employees are the people driving the change that is needed to realise the strategy and achieve our ultimate purpose – a sustainable future.

Why is BillerudKorsnäs here?

Our mission – to challenge conventional packaging for a sustainable future – describes the purpose of our business. It guides the way we think, what we do and how we communicate. For us, sustainability is the business opportunity of the future.

What drives profitable growth?

Our strategy, split into four categories, is a driver of profitability and growth.

  • Position – Expand geographically and in the value chain
  • Innovation – Improve the company’s leading position
  • Sustainability – Drive sustainability throughout the value chain
  • Efficiency – Continuously improve
How will the mission be achieved?

Long-term, profitable growth in materials and solutions is crucial for the Group’s ability to continue investing in the future – investments that challenge and enable growth in our primary fibre-based materials and packaging solutions.

Who will drive change?

The employees will drive the work on managing change. Engaging the workforce and getting everyone on board requires a clear set of values, communicative leadership and an attractive and safe workplace with good diversity. Innovation and openness to other people’s ideas are crucial for the success of the development and change management work.

Read more about BillerudKorsnäs strategies

Chapter 3


BillerudKorsnäs’ view of sustainability

BillerudKorsnäs uses two questions to define sustainability: how can the negative impact of operations be minimised and how can the positive contribution towards a sustainable future be maximised? The answers are summed up in three focus areas with six concrete commitments for active work on sustainability supported by a transparent approach and a clear management structure.

Three focus areas – six commitments

BillerudKorsnäs’ Value Chain

Drive sustainability throughout the value chain


The value chain of which BillerudKorsnäs is part starts with extraction of natural resources, primarily wood raw material. Via transport and our own production of packaging material, the material is passed on to customers to produce packaging. After final use and recycling, the material is returned to the value chain as recovered fibre. The company works with many actors in this chain to create added value. The impact covers the entire field of sustainability and takes place in many locations across the globe. The actors in the value chain are taking clear steps towards a circular economy.

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Chapter 4

Facts & figures

Corporate overview

BillerudKorsnäs – a leading player in primary fibre-based packaging materials and packaging solutions

Net sales, SEK bn 21,7
EBITDA, SEK bn 3,6
Number of employees, approx. 4 300

Net sales by business area, %

EBITDA1 split by business area, %

1 EBITDA split for Other units was -12.

A leading player with a sustainability focus

BillerudKorsnäs was formed on 29 November 2012 with the merger of Billerud AB and Korsnäs AB. The company is listed and traded on the Large Cap list of Nasdaq Stockholm.

The already successful businesses of Billerud and Korsnäs have been further strengthened by the merger in packaging materials and packaging solutions, creating a strong international player in the packaging industry. There are three cornerstones to the Group’s offering – packaging materials made from primary bre, innovative packaging solutions and a global network of partners, who are driven by a passion to develop smarter packaging solutions based on renewable materials.

BillerudKorsnäs in the world

BillerudKorsnäs in the world

BillerudKorsnäs’ sales organisation is committed to efficiently serving all of its customers around the world. The company’s headquarters are situated in Stockholm and our eight production facilities are located in Sweden, Finland and the UK. Our 2 000 customers are packaging manufacturers, brand owners and large retail and supermarket chains in over 100 countries.

Customer Service Centers

China, France, Germany, India, Indonesia, Italy, Malaysia, Singapore, South Africa, Spain, Sweden, Thailand, Turkey, United Arab Emirates, United Kingdom and the USA.

Net sales by region, %

Net sales by market segment, %


Since 2012 BillerudKorsnäs has, over and above ongoing investments, invested SEK 2.9 billion in its production structure to improve efficiency, quality and sustainability performance. The pace of investment is set to increase over the coming years, with the implementation of two major projects that were decided in 2016: the investment in a new board machine in Gruvön and the further development of MG paper production in Skärblacka.

Production units


Quarterly data and five-year summary

The share

The BillerudKorsnäs share has been publicly listed since 20 November 2001 and is traded on the Large Cap list of Nasdaq Stockholm. The share ticker symbol is BILL. At 30 December 2016, the share capital totalled SEK 1 537 642 793, represented by 208 219 834 shares. The number of shares on the market totalled 207 089 336. Each share on the market entitles its holder to an equal right in the Company’s earnings and capital.

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Business areas

BA overview

Packaging Paper

Kraft and sack paper for customers with tough demands

Packaging Paper offers kraft and sack paper of premium quality plus smart solutions for customers in the industrial, medical equipment and consumer segments. The business area also sells any surplus of pulp that BillerudKorsnäs does not use in its own production.

Growth strategy – Selective growth

Sustainable and profitable growth in chosen segments, primarily dry foods and medical applications, plus the construction industry in growth markets. Growth target: 2–4% per year

Focus on:

  • Developing production assets to improve profitability
  • Creating new opportunities through business development
  • Increasing presence in growth markets
Selective growth 2-4% (Growth target, yearly)
Net sales, SEKm 8 339
EBITDA, SEKm 1 486
EBITDA margin 18%

Net sales bymarket segment, %

Net sales by region, %

Kraft paper Sack paper
Billerud­Korsnäs position Leading producer of strong, high-quality kraft paper from primary fibre in Europe.3 Global leader in high-porosity sack paper from primary fibre.5
Competition The primary competition comes from plastic packaging solutions. Mainly sack solutions in plastic and from bulk distribution.
Other major manufacturers Mondi and many of Europe’s speciality paper manufacturers. Mondi, Canfor, Segezha, KapStone and Smurfit Kappa.

3 Based on statistics from Pöyry Management Consulting and Eurokraft

5 BillerudKorsnäs’ assessment.

Consumer Board

Liquid packaging board and cartonboard with unique properties

Consumer Board delivers packaging materials in high-quality board made from primary fibre for beverages, food products and various other consumer goods. Smart solutions in terms of function, design and material selection create added value for customers.

Growth stratey – Volume growth

Sustainable and profitable volume growth in the key markets.

Focus on:

  • Attractive marketing opportunities
  • Investments for growth
  • Innovations in partnership with customers and brand owners
Growth target: 4-5% per year
Net sales, SEKm 8 015
EBITDA, SEKm 1 723
EBITDA margin 21%

Net sales by market segment, %

Net sales by region, %

Liquid packaging board Cartonboard
BillerudKorsnäs’ position One of the world’s leading manufacturers of liquid packaging board.7 One of the leading manufacturers of primary fibre-based cartonboard for the premium segment in Europe.7
Competition Other packaging materials, mainly plastic. Other packaging materials, mainly plastic.
Other major manufacturers Stora Enso, Klabin, Evergreen Packaging, WestRock and International Paper. In the premium segment: Iggesund, Metsä Board, Stora Enso, WestRock and International Paper.

7 Statistics from Pöyry Management Consulting

Corrugated Solutions

Fluting and liner add value

Corrugated Solutions supplies materials to corrugated board manufacturers and packaging solutions to brand owners. Strong and light materials, fluting and liner, are used in corrugated boxes for fragile goods and demanding distribution systems. Smart packaging is delivered via the Managed Packaging concept, which delivers supply chain solutions and packaging optimisations for brand owners, with a view to challenging conventional solutions.

Growth stratey – Value growth

Sustainable and profitable growth is to be achieved through value growth, without necessarily investing in the existing production capacity for paper.

Focus on:

  • Strong product portfolio
  • Integrating new business mode
  • Expanded collaboration with brand owners in attractive markets
Growth target 2-4% per year
Net sales, SEKm 3 620
EBITDA margin 23%

Net sales by market segment, %

Net sales by region, %

Fluting Liner Managed Packaging
BillerudKorsnäs’ position Quality5 and market-leading producer10 in Europe in the top segment with a strong position in fruit and vegetables. One of the market leaders in Europe for pure white primary fibre-based liner5 and one of the leaders in coated primary fibre-based liner globally. Unique packaging concept based on a network of production partners for flexibility and market coverage, combined with in-depth material know-how for maximum packaging optimisation and efficiencies.
Competition Recycled fibre-based fluting and other materials in plastic and wood. Coated and uncoated white top testliner (based on recycled fibre). Independent wholesalers of packaging and major packaging manufacturers with converting in Asia.
Other major manufacturers In primary fibre-based fluting: Stora Enso, Mondi and Powerflute. Metsä Board, Mondi and Smurfit Kappa.

5 BillerudKorsnäs’ assessment.

10 Pöyry, 2017