September 2016 - Sappicdn-s3.sappi.com/s3fs-public/certs-downloads/files/2016-09-Sappi-Group... ·...
Transcript of September 2016 - Sappicdn-s3.sappi.com/s3fs-public/certs-downloads/files/2016-09-Sappi-Group... ·...
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September 2016
Sappi Limited
Roadbook
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Forward-looking statements
Certain statements in this release that are neither reported financial results nor other historical information, are forward-looking statements, including but not limited to
statements that are predictions of or indicate future earnings, savings, synergies, events, trends, plans or objectives. The words “believe”, “anticipate”, “expect”,
“intend”, “estimate”, “plan”, “assume”, “positioned”, “will”, “may”, “should”, “risk” and other similar expressions, which are predictions of or indicate future events and
future trends and which do not relate to historical matters, identify forward-looking statements. In addition, this document includes forward-looking statements relating
to our potential exposure to various types of market risks, such as interest rate risk, foreign exchange rate risk and commodity price risk. You should not rely on
forward-looking statements because they involve known and unknown risks, uncertainties and other factors which are in some cases beyond our control and may
cause our actual results, performance or achievements to differ materially from anticipated future results, performance or achievements expressed or implied by such
forward-looking statements (and from past results, performance or achievements). Certain factors that may cause such differences include but are not limited to:
• the highly cyclical nature of the pulp and paper industry (and the factors that contribute to such cyclicality, such as levels of demand, production capacity,
production, input costs including raw material, energy and employee costs, and pricing);
• the impact on our business of adverse changes in global economic conditions;
• unanticipated production disruptions (including as a result of planned or unexpected power outages);
• changes in environmental, tax and other laws and regulations;
• adverse changes in the markets for our products;
• the emergence of new technologies and changes in consumer trends including increased preferences for digital media;
• consequences of our leverage, including as a result of adverse changes in credit markets that affect our ability to raise capital when needed;
• adverse changes in the political situation and economy in the countries in which we operate or the effect of governmental efforts to address present or future
economic or social problems;
• the impact of restructurings, investments, acquisitions, dispositions and other strategic initiatives (including related financing), any delays, unexpected costs or
other problems experienced in connection with dispositions or with integrating acquisitions or implementing restructurings or other strategic initiatives, and
achieving expected savings and synergies;
• currency fluctuations.
We undertake no obligation to publicly update or revise any of these forward-looking statements, whether to reflect new information or future events or circumstances
or otherwise.
Forward-looking statements and Regulation G
Regulation G disclosure Certain non-GAAP financial information is contained in this presentation that management believe may be useful in comparing the company’s operating results from
period to period. Reconciliation's of certain of the non-GAAP measures to the corresponding GAAP measures can be found in the quarterly results booklet for the
relevant period. These booklets are located in the ‘Investors | Financial information’ section of www.sappi.com.
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Agenda
Overview
Products
Strategy
Results
Divisions
Sappi Europe
Sappi North America
Sappi Southern Africa
Sustainability
Conclusions
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Sappi Limited
#2 Global producer of coated woodfree paper (48% of sales)
Forecast: Capacity and demand down 1% through 2020*
Overview
#1 Global producer of dissolving wood pulp (17% of sales)
Forecast: Demand up 5% and capacity up 6% through 2019**
* EMGE March 2016 ** Hawkins Wright September 2015
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Sappi at a glance
Sappi Limited
2015 Sales = US$5.39 billion with @13k employees
Sappi Europe
49% 2015 sales
Graphic paper
Speciality paper
Sappi North America
26% 2015 sales
Graphic paper
Specialised cellulose
Release paper
Sappi Southern Africa
25% 2015 sales
Paper and paper packaging
Specialised cellulose
Forests
Sappi Trading
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Geographic diversification Our global presence allows us take advantage of opportunities where markets are strong
Three paper mills and one
specialised cellulose mill
Four paper mills and two
specialised cellulose mills
567,000ha of forests
Seven paper mills
13 sales offices on six continents
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Sales Ltd. Sales Analysis
* Data reflects results from FYTD June 2016
51%
26%
23%
Sales by source* (US$)
EuropeNorth AmericaSouthern AfricaAsia and other
44%
24%
9%
23%
Sales by destination* (US$)
60% 17%
11%
5%
5%
1% 1%
Coated Paper
Dissolving Pulp
Speciality Paper
Commodity Paper
Uncoated Paper
Paper Pulp
Other
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Sappi Ltd. Sales Analysis
60% 17%
11%
5% 5%
1% 1%
Coated Paper Dissolving Pulp
Speciality Paper Commodity Paper
Uncoated Paper Paper Pulp
Other
FYTD 2016 Coated Paper
• #2 Global Producer of Coated Paper
• EBITDA Margins ~7%
• Forecast* demand down 1% to 2% pa
• Forecast* capacity down 1% to 2% pa
*Source: EMGE
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Sappi Ltd. Sales Analysis
60% 17%
11%
5% 5%
1% 1%
Coated Paper Dissolving Pulp
Speciality Paper Commodity Paper
Uncoated Paper Paper Pulp
Other
FYTD 2016
• #1 Global Producer
of Dissolving Pulp
• EBITDA Margins ~30%
• Demand forecast* up 5% pa.
• Capacity forecast* up 6%
• Speciality Paper
• EBITDA Margins ~12%
• Demand up 4%
• Commodity Paper
• EBITDA Margins ~17%
• Demand up 6%
*Source: Hawkins Wright
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Major Sensitivities
∆ EU NA SA Translation Group
€m US$m ZARm US$m US$m
Net Selling Price 1% 24 14 163 - 53
DWP Price 1% - 2 93 - 9
Sales Volumes 1% 8 6 69 - 19
Variable Cost 1% 15 7 83 - 29
Fixed Cost 1% 6 4 39 - 14
Wood Price 1% 2 2 34 - 8
Paper Pulp Price US$10 6 2 8 - 9
ZAR/US$ 10c - - 75 -2 4
EUR/US$ 10c - 3 - 21 24
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Agenda
Overview
Products
Strategy
Results
Divisions
Sappi Europe
Sappi North America
Sappi Southern Africa
Sustainability
Conclusions
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Printing and writing paper grade structure
Coated fine paper (CWF)
Uncoated woodfree (UWF)
Coated mechanical (CGW/LWC)
Supercalendered (SC-A)
Supercalendered (SC-B)
Machine finished specialities (MFS)
Improved newsprint
Newsprint
Fib
re q
ua
lity
100% Chemical pulp fiber furnish
Increasing mechanical/recovered
fiber content
Image quality
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0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
North America Europe Far East Latin America Africa/Middle East Oceania
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Coated Woodfree Demand
* Source: RISI World Graphic Paper Report Feb 2016
Forecast*
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Industry Consolidation Capacity share of top five coated woodfree paper producers
33%
83%
60%
100%
27%
51%
25%
43%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1990 2016 1990 2016 1990 2016 1990 2016
Europe North America Rest of world Global
Source: EMGE WGPR March 2016
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Dissolving Wood Pulp (DWP)
DWP is the most abundant natural organic polymer on earth and is
found in all plant materials
The plant material (wood from certified forests or plantations) is
processed and purified by applying specialised chemistry to extract the
cellulose polymers from the wood
The purified natural wood cellulose fibres are further dissolved by our
customers and re-generated or re-formed for a host of applications
Cellulose 45%
Hemi-cellulose
30%
Lignin 23%
Resins 1%
Inorganics 1%
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Dissolving Wood Pulp (DWP) End uses
VSF 60%
Lyocell 3%
Acetate 12%
MCC 2%
Ethers/CMC 9%
Cellophane 1%
Filament 5%
Nitrocellulose 3%
Others 4%
Tyre cord 1%
Sponges
Moulding powder
Paper, etc
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Sappi 16%
Cosmo 2%
PT Toba 2%
Bahia 6%
Neucell 3%
Buckeye 3%
Rayonier 6%
CLP China 11%
Borregaard 2%
Tembec incl Tartas 4%
Birla & Lenzing Integrated
14%
Others 15% Fortress
3% Bamboo China
3%
Hunan Juntai 3% Sun Paper
2%
Other China DWP 4%
Sodra 2%
Stora 1%
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Dissolving Wood Pulp (DWP) Competitors
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Why Dissolving Wood Pulp (DWP) Capitalising on MEGA-TRENDS
Global population growth from a
current 6.9bn to 8.3bn by 2030
Increasing need for food and
clothes
Increasing need for more
comfortable clothing
Rising urbanisation and standard
of living in the greater Asian region Asian middle class population is likely to
grow from current 1.9bn to 2.7bn people
by 2030
Asian consumers are likely to spend
US$32 trillion/year by 2030, accounting
for 43% of total global consumption
39%
70%
94%
112%
26%
49%
70%
85%
0% 11%
20% 27% 32%
-5% -10% -14% -18%
-40%
-20%
0%
20%
40%
60%
80%
100%
120%
2010 2020 2030 2040 2050
Textile fibres Food
65.8
72.5
86.8
100.7
113.3
123.5
0.0
20.0
40.0
60.0
80.0
100.0
120.0
140.0
2005 2010 2015 2020 2025 2030
Textile fibres consumption Million metric tons
Source: Lenzing
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Cellulose Gap Theory Dissolving wood pulp share of the textiles market is expected to grow further
Production of cotton is forecast to
remain stagnant or shrink
Growth in total fibre consumption
will be covered by man-made
fibres
However, certain moisture
management properties of
cellulose fibres cannot be
substituted by oil-based synthetic
fibres, enhancing opportunity for
cellulosics
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Textile Fibre Prices
800
1,200
1,600
2,000
2,400
2,800
Ju
l-1
5
Aug
-15
Sep
-15
Oct-
15
Nov-1
5
De
c-1
5
Ja
n-1
6
Feb-1
6
Ma
r-16
Apr-
16
Ma
y-1
6
Ju
n-1
6
Ju
l-1
6
VSF 1.2D VSF 1.5D PSF 1.4D3 Cotton 328 Cotton "A" IndexUS$/t
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Global Cost Curve C
om
p 1
Com
p 2
Com
p 3
SA
PP
I
SA
PP
I
Com
p 4
Com
p 5
Com
p 6
Com
p 7
Com
p 8
Com
p 9
Com
p 1
0
Com
p 1
1
Com
p 1
2
Com
p 1
3
Com
p 1
4
Com
p 1
5
SA
PP
I
Com
p 1
6
Com
p 1
7
Com
p 1
8
Com
p 1
9
Com
p 2
0
Com
p 2
1
Com
p 2
2
Com
p 2
3
Com
p 2
4
Com
p 2
5
Com
p 2
6
Com
p 2
7
Com
p 2
8
Com
p 2
9
Com
p 3
0
Com
p 3
1
Com
p 3
2
Com
p 3
3
Com
p 3
4
Com
p 3
5
Com
p 3
6
Com
p 3
7
Delivered Cash Cost USD/ADMT
Average
Cost
Source: RISI
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Agenda
Overview
Products
Strategy
Results
Divisions
Sappi Europe
Sappi North America
Sappi Southern Africa
Sustainability
Conclusions
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Strategic focus
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We work to lower fixed and variable
costs, increase cost efficiencies and
invest for cost advantages
Saiccor and Tugela turbines – FY2016/17
Ngodwana boiler upgrade for future
debottlecking – Q2 FY2016
Group procurement initiatives >$100m
annually by 2020
Ongoing continuous improvement across
all mills
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Focus areas Achieve cost advantages
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Recognising the decreasing demand for graphic paper, we manage our capacity to strengthen our leadership position in these markets, realising their strategic importance to the group and maximising their significant cash flow generation
Evaluate graphic paper conversion opportunities
Restructured South African paper business in 2015
Disposed of SA recycled paper in South Africa
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Focus areas Rationalise and optimise declining businesses
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We will make smaller investments in existing areas with strong potential growth, including pulp, speciality grades and packaging papers
Additional packaging at Ngodwana and Tugela
Electricity opportunities in South Africa
Debottlenecking of Saiccor and Ngodwana DWP
Explore opportunities in Specialty Packaging
Securing additional HW timber supply in SA
26
Focus areas Grow through moderate investments
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US$400m 2017 bonds callable in April
Sale of both Enstra and Cape Kraft Mills
completed
Refinancing and debt reduction leads to
lower finance cost
27
Focus areas Generate cash to strengthen the balance sheet
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We will continue our focus on having a
cleaner, stronger balance sheet so that
we can then accelerate our growth in
adjacent businesses
Speciality packaging paper
Biomaterials, biochemicals – lignins, sugars
Expanded DWP portfolio – nano-cellulose,
other speciality grades
28
Focus areas Accelerate growth in adjacent businesses from a strong base
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Agenda
Overview
Products
Strategy
Results
Divisions
Sappi Europe
Sappi North America
Sappi Southern Africa
Sustainability
Conclusions
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Highlights
EBITDA ex-special items US$160m (Q3 FY15 US$109m)
Profit for the period US$32m (Q3 FY15 US$4m)
EPS ex-special items 11 US cents (Q3 FY15 2 US cents)
Net debt US$1,583m, down US$334m year-on-year
Q3 FY16
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EBITDA and operating profit 140
109
160
67
43
97
0
20
40
60
80
100
120
140
160
180
Q3 FY14 Q3 FY15 Q3 FY16
US
$ m
illio
n
EBITDA Operating profit
* Refer to the supplementary information in this presentation for a reconciliation of EBITDA to reported operating profit and page 22 in our Q3 FY16
results booklet (available on www.sappi.com) for a definition of special items.
Excluding special items*
Q3
FY14
Q3
FY15
Q3
FY16
Net Debt/
LTM EBITDA 3.7 3.1 2.2
Interest Cover 3.4 3.9 7.0
EBITDA % 9.4 8.6 13.1
ROCE % 7.8 5.7 14.0
Key ratios
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32
Highlights
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33
Highlights
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34
Product contribution split - LTM
Specialised cellulose
46%
Paper 54%
EBITDA excluding special items*
Specialised cellulose
61% Paper 39%
Operating profit excluding special items
* Refer to the supplementary information in this presentation for a reconciliation of EBITDA to reported operating profit and page 22 in our Q3 FY16
results booklet (available on www.sappi.com) for a definition of special items. Data above excludes treasury operations and insurance captive.
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35
Net debt/EBITDA development 2
,380
2,2
48
2,2
86
1,9
46
2,0
40
1,9
16
1,9
17
1,7
71
1,7
34
1,6
52
1583
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
5.0
1,000
1,200
1,400
1,600
1,800
2,000
2,200
2,400
2,600
Q1 FY14 Q2 FY14 Q3 FY14 Q4 FY14 Q1 FY15 Q2 FY15 Q3 FY15 Q4 FY15 Q1 FY16 Q2 FY16 Q3 FY16
US
$ m
illio
n
Net Debt Net debt/LTM EBITDA**
* EBITDA is excluding special items
** The covenant Net debt/LTM EBITDA calculation has adjustments and therefore differs from that shown above
2.2
4.6
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36
Cumulative Cash Flow
(500)
(300)
(100)
100
300
500
700
Oct-
12
De
c-1
2
Feb
-13
Apr-
13
Jun-1
3
Aug-1
3
Oct-
13
De
c-1
3
Fe
b-1
4
Apr-
14
Jun-1
4
Aug-1
4
Oct-
14
De
c-1
4
Feb
-15
Apr-
15
Jun-1
5
Aug-1
5
Oct-
15
De
c-1
5
Feb
-16
Apr-
16
Jun-1
6
US$m
Ngodwana and
Cloquet
projects
completed
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542
65
512
500
389
221
33
33
76
309
0
100
200
300
400
500
600
2016 2017 2018 2019 2020 2021 2022 2023 2032
US
$ m
illio
n
Cash Short-term SPH term debt SSA Securitisation
37
Maturity profile Fiscal years
Includes
US$400m bond
EUR 350m bond
US$221m bond
EUR450m bond
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38
Capex development
0
100
200
300
400
500
600
2012 2013 2014 2015 2016 Estimate
US
$ m
illio
n
Maintenance Efficiency
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39
Agenda
Overview
Products
Strategy
Results
Divisions
Sappi Europe
Sappi North America
Sappi Southern Africa
Sustainability
Conclusions
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Leading European coated paper
producer FY15 Net sales: US$2.6b
FY15 EBITDA: US$209m
3.5m tons per annum of paper capacity
1.2m tons per annum of pulp capacity
(integrated)
Well-invested assets in the heart of the
European market
Divisional overview Sappi Europe
40
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41
Divisional overview Sappi Europe
Coated woodfree
paper 1,990
Uncoated woodfree
paper 245
Coated mechanical
paper 1,060
Speciality paper 245
Sappi Europe saleable capacity (‘000tpa)
* 18 Producers * 10 Producers
European CWF and CM capacity shares**
** Source: RISI
Sappi
UPM
Lecta
Stora Enso
Burgo
Others*
0%
20%
40%
60%
80%
100%
CWF
UPM
Sappi
Burgo
Stora Enso
Others*
0%
20%
40%
60%
80%
100%
CM
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42
Western Europe shipments including export.
Source: Cepifine, Cepiprint and RISI indexed to calendar 1Q 2008
Western Europe
Coated paper deliveries and prices
0.5
0.6
0.7
0.8
0.9
1.0
1.1
1.2
Q1
08
Q2
Q3
Q4
Q1
09
Q2
Q3
Q4
Q1
10
Q2
Q3
Q4
Q1
11
Q2
Q3
Q4
Q1
12
Q2
Q3
Q4
Q1
13
Q2
Q3
Q4
Q1
14
Q2
Q3
Q4
Q1
15
Q2
Q3
Q4
Q1
16
Q2
Q1
20
08
= 1
CWF MCR CWF 100gsm sheets prices LWC 60gsm offset reels prices
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43
Western Europe shipments including export.
Source: Cepifine, Cepiprint
Sappi fiscal quarters
W. Europe CWF Shipments
1,200
1,300
1,400
1,500
1,600
1,700
1,800
1,900
Q1 Q2 Q3 Q4
2013 2014 2015 2016
‘00
0 M
etr
ic t
on
s
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Sappi Somerset (USA)
Label Paper – LusterCote® and
Flex. Pack. Paper - LusterPrint®
Sappi Packaging and Speciality Papers
Global production sites
Sappi Westbrook (USA)
Release Paper – Ultracast®
and different classic brands
Sappi Alfeld (Germany)
Flexible Packaging, Label, SBB
Board, Topliner and Release Liner
Sappi Maastricht (Netherlands)
Folding Box Board - atelier™
Sappi Tugela (South Africa)
Liner – Ultratest and
Fluting – Ultraflute™
Sappi Ngodwana (South Africa)
Liner – Kraftpride™
Sappi Ehingen (Germany)
Topliner - Fusion®
Sappi Cloquet (USA)
Label Paper – LusterCote®
44
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Markets and Growth rates Global Market size – Speciality packaging
Source for growth rates: AWA, Pira and Risi
Flexible Packaging
and Label Papers
o C1S papers
o 1.2 mtons
o Growth: 2-3 % p.a.
Release Liner
o CCK graphic arts
o 300 ktons
o Growth: 6 % p.a.
Rigid Packaging
o SBS printing and
converting
o 4.7 mtons
o Growth: 2 % p.a.
Containerboard
o Coated White
Topliner
o 1 mtons
o Growth: 1-2 % p.a.
Functional Papers
o Barrier and grease
resistant papers
o Virtually unlimited
45
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46
Projects Sappi Europe
Alfeld Mill
Speciality conversion (December 2013)
Gratkorn Mill
Pulp mill and paper machine upgrades
Kirkniemi Mill
Power plant rebuild
Nanocellulose pilot plant (The Netherlands)
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Summary Sappi Europe
Highly competitive in service, quality and cost in Europe
Strong cash flows
Highly attractive and growing specialities business
Alfeld Mill conversion (December 2013)
Investment in Kirkniemi Mill power plant and Gratkorn Mill
paper machines and recovery boiler
Market is in decline, capacity needs to be right-sized;
Nijmegen Mill sold and repurposed (June 2014)
Intentionally transitioning CWF capacity to niche speciality
paper products
47
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48
Agenda
Overview
Products
Strategy
Results
Divisions
Sappi Europe
Sappi North America
Sappi Southern Africa
Sustainability
Conclusions
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Leading North American coated
freesheet paper producer
FY15 Net sales: US$1.4b
FY15 EBITDA: US$102m
1.1m tons per annum of coated paper
capacity
700,000 tons per annum of integrated
paper pulp capacity
Divisional overview Sappi North America
49
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Verso 51%
Sappi 32%
Catalyst 2%
Appleton 8%
WestLinn 7%
50
Divisional overview Sappi North America
Coated woodfree
paper 1,160
Dissolving wood pulp
330
Speciality paper
40
NBHK 30
Sappi North America saleable capacity (‘000tpa) US Coated freesheet capacity shares*
* Source: RISI
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51
* US industry shipments and total US consumption
Source: AF&PA and RISI indexed to calendar Q1 FY08
United States
Coated paper prices and shipments
0.5
0.6
0.7
0.8
0.9
1.0
1.1
1.2
Q1
08
Q2
Q3
Q4
Q1
09
Q2
Q3
Q4
Q1
10
Q2
Q3
Q4
Q1
11
Q2
Q3
Q4
Q1
12
Q2
Q3
Q4
Q1
13
Q2
Q3
Q4
Q1
14
Q2
Q3
Q4
Q1
15
Q2
Q3
Q4
Q1
16
Q2
Domestic CFS shipments Total US CFS consumption CFS #3 60lb Rolls prices
Q1 F
Y08 =
1
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52
*Source: AF&PA
Sappi fiscal quarters
NA CWF Apparent Consumption
700
800
900
1,000
1,100
Q1 Q2 Q3 Q4
2013 2014 2015 2016
‘00
0 s
ho
rt to
ns
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Projects Sappi North America
53
Cloquet Mill
Dissolving wood pulp conversion, Lime kiln rebuild
Westbrook Mill
Coater modernisation
Somerset Mill
Woodyard and chip processing investment
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54
Sappi’s release paper business By end-user segment
Sappi Other
Fashion
Automotive and
commercial
upholstery
Decorative
laminates
Engineering
films and other
Sappi Sappi Sappi
Sappi
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55
Summary Sappi North America
Well-invested, premier asset portfolio
Established brands with strong market position
Exposure to most attractive end-market segment
Unmatched reputation for product innovation and customer service
A low-cost producer with strong free cash flow profile
Defined and focused opportunities for driving further
profitable growth
Intentionally transitioning CWF capacity to niche speciality
paper products
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56
Agenda
Overview
Products
Strategy
Results
Divisions
Sappi Europe
Sappi North America
Sappi Southern Africa
Sustainability
Conclusions
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Leading South African graphic
and packaging paper producer
FY15 Net sales: US$1.3b
FY15 EBITDA: US$313m
1m tons per annum of dissolving
wood pulp (DWP) capacity
675,000 tons per annum of graphic
and packaging paper production
520,000 tons per annum of pulp
production (integrated)
57
Divisional overview Sappi Southern Africa
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0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
20
14
20
15
20
16
20
17
20
18
20
19
58
Divisional overview Sappi Southern Africa
Forestry 1,100
Dissolving wood pulp
1,010
Paper and paper
packaging 675
Sappi Southern Africa saleable capacity (‘000tpa) Global Dissolving Wood Pulp Demand
(‘000k M Tons)*
* Source: Hawkins Wright
Forecast
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59
Projects Sappi Southern Africa
Ngodwana Mill Dissolving wood pulp (DWP) conversion
Sale of Cape Kraft and Enstra Mills’ recycled packaging
business
Debottleneck Tugela, Saiccor & Ngodwana Pulp Mills ~ 10% increase in volumes in both packaging and Spec Cell.
Increase access to more HW timber supply
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Our DWP Competitive Advantage Sappi Southern Africa
Low-cost and fast-growing woodfibre from state-of-the-art
plantations
Large-scale, modern and well-invested assets
Favourable currency trend
Well-positioned in dynamic market
60
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61
Summary Sappi South Africa
Improving paper business
Better use of timber
Improving cost position
Product & Asset optimisation – Spec. Packaging
Investing in specialised cellulose
Low-cost producer
Fast-growing market
Excellent customer relationships
'Growing' our forestry assets
Profitable with growth opportunities
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62
Agenda
Overview
Products
Strategy
Results
Divisions
Sappi Europe
Sappi North America
Sappi Southern Africa
Sustainability
Conclusions
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63
Sustainability
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64
Sustainability
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65
Agenda
Overview
Products
Strategy
Results
Divisions
Sappi Europe
Sappi North America
Sappi Southern Africa
Sustainability
Conclusions
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66
Conclusions
Our strategy to reposition Sappi as a profitable and cash-
generative diversified woodfibre group remains well on
track.
Reduction in capital spending and refinanced debt
Costs remain a chief concern
Cash generative paper business will fund growth in:
Cellulose-based solutions
Speciality packaging papers
Complementary products
Committed to accelerating value for shareholders through:
Debt reduction
Improved profit
Strategic positioning
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Thank you