Our performance in 2009 - Sappi

More documents

Recommendations

Info

Our income statement Our group financial results can be summarised as follows: 2009 annual report 49 2009 % Change 2008 Sales volume (metric tons ’000) 6,707 (2) 6,851 US$ million US$ million Sales revenue 5,369 (8) 5,863 Variable manufacturing and delivery costs (3,322) (7) (3,582) Contribution 2,047 2,281 Fixed costs (1,970) 5 (1,919) Sundry (loss) income* (44) 4 Operating profit excluding special items 33 (91) 366 Special items (106) (52) Operating (loss) profit (73) 314 Finance costs (145) 15 (126) (Loss) profit before tax (218) 188 Taxation 41 (86) Net (loss) profit Basic (loss) earnings per share (177) 102 (US cents) (37) 28 * Sundry (loss) income consists mainly of inventory revaluation, plantation fair value volume adjustments and external debtors securitisation costs. Operating profit, excluding special items compared to 2008 For the group, the decline in operating profit excluding special items is depicted in terms of sales, variable costs and fixed costs in the chart below: our performance
50 Chief financial officer’s report continued Sales Compared to fiscal 2008, group sales declined by US$494 million (8%) from US$5,863 million in 2008 to US$5,369 million in 2009. This decline was due to lower volumes (US$123 million in monetary terms) and the negative impact of translating the sales of the European and South African divisions into US Dollars (US$547 million) partly offset by better price and product mix (US$176 million). In terms of metric tons, sales volumes declined by 144,000 tons from 6,851 million tons in 2008 to 6,707 million tons in 2009 as shown in the table below: Sales volumes – tons ’000 2009 % Change 2008 Europe 2,956 16 2,546 Europe, excluding acquired mills 2,030 (20) 2,546 Acquired mills 926 n/a – North America 1,274 (18) 1,553 Fine Paper South Africa 305 (10) 339 Forest Products 2,172 (10) 2,413 Forest Products – pulp and paper 1,355 (5) 1,419 Forest Products – forestry 817 (18) 994 Sappi group 6,707 (2) 6,851 At constant exchange rates, price per ton realised on sales was US$26 per ton higher than in fiscal 2008 (US$882 per ton in 2009 compared to US$856 per ton in 2008). This increase was mainly due to the fact that we added 926,000 tons of business at a higher average price of approximately US$960 per ton as a result of the acquisition in December 2008. Thus, more higher value tons of coated paper were sold in 2009 relative to 2008. The average exchange rate of the US Dollar was stronger versus the Euro in 2009 than in 2008 (Euro/US$1.3657 compared to Euro/US$1.5064 in 2008). This difference in translating the sales of our European business had a US$298 million negative impact on the group’s sales in US Dollars. The stronger US Dollar versus the South African Rand (US$/ZAR9.0135 in 2009 compared to US$/ZAR7.4294 in 2008) also had the effect of reducing the sales of the South African divisions in US Dollars compared to fiscal 2008 by US$249 million. Variable and delivery costs Variable manufacturing costs relate to costs of inputs which vary directly with output. The ‘Other’ costs component included under variable manufacturing costs in the table below, relates to inputs such as water, filler materials and consumables. Delivery costs relate closely to sales volumes. An analysis of variable costs by major category is as follows: US$ million 2009 2008 Wood 663 722 Energy 584 558 Pulp 543 702 Chemicals 868 935 Other 210 156 Variable manufacturing costs 2,868 3,073 Delivery costs 454 509 Total 3,322 3,582
Page 1 and 2:
SAPPI GROUP (Sappi Limited) ANNUAL
Page 3 and 4: • the impact of future investment
Page 5 and 6: Our reporting strategy As a leading
Page 7 and 8: 1 2 North America 2 4 1 San Francis
Page 9 and 10: 4 Our performance in 2009 Financial
Page 11 and 12: 6 Our performance against financial
Page 13 and 14: 8 Our performance against sustainab
Page 15 and 16: 10 Our performance against sustaina
Page 17 and 18: 12 Our performance against sustaina
Page 19 and 20: 14 Our sustainable business cycle T
Page 21 and 22: 16 Our products 1 2 3 Coated paper
Page 23 and 24: Our objectives for 2010 Improve pro
Page 25 and 26: 20 Letter to shareholders continued
Page 27 and 28: 22 Letter to shareholders continued
Page 29 and 30: 24 Interview with Ralph Boëttger,
Page 31 and 32: 26 Our leadership Independent non-e
Page 33 and 34: 28 Our leadership continued Indepen
Page 35 and 36: 30 Review of operations Sappi Fine
Page 37 and 38: 32 Review of operations | Sappi Fin
Page 39 and 40: 34 Review of operations | Sappi Fin
Page 41 and 42: 36 Review of operations Sappi Fores
Page 43 and 44: 38 Review of operations | Sappi For
Page 45 and 46: 40 Value added statement for the ye
Page 47 and 48: 42 Chief financial officer’s repo
Page 53: 48 Chief financial officer’s repo
Page 67 and 68: 62 Five-year review for the year en
Page 69 and 70: 64 Share statistics at September 20
Page 72 and 73: Risk management Global economic con
Page 74 and 75: Risk philosophy The Sappi Limited b
Page 76 and 77: Independence Accountability Given t
Page 78 and 79: Fairness Social responsibility Lege
Page 80 and 81: 2009 annual report 75 Induction and
Page 82 and 83: 2009 annual report 77 employment of
Page 84 and 85: 2009 annual report 79 board to esta
Page 86 and 87: As part of continuous improvement t
Page 88 and 89: Compensation report In 2009, the co
Page 90 and 91: Balance between fixed and variable
Page 92 and 93: Executive directors (1) Details of
Page 94 and 95: 2009 annual report 89 R J Boëttger
Page 96 and 97: 2009 annual report 91 Board Committ
Page 98 and 99: Auditor’s report Independent audi
Page 100 and 101: Audit committee report The legal re
Page 102 and 103: Directors’ report for the year en
Page 104 and 105:
Litigation We become involved from
Page 106 and 107:
Group balance sheet at September 20
Page 108 and 109:
Group statement of changes in equit
Page 110 and 111:
Group balance sheet in Rands conven
Page 112 and 113:
Notes to the group annual financial
Page 114 and 115:
• Financial assets and financial
Page 116 and 117:
2.2.10 Non-current assets held for
Page 118 and 119:
(iii) Dividends Dividends are recog
Page 120 and 121:
uyer and seller) multiple used in o
Page 122 and 123:
2.4 Adoption of accounting standard
Page 124 and 125:
Corporate and eliminations Group 20
Page 126 and 127:
2009 annual report US$ million 2009
Page 128 and 129:
6. Taxation (benefit) charge contin
Page 130 and 131:
7. Earnings per share and headline
Page 132 and 133:
2009 annual report 9. Property, pla
Page 134 and 135:
US$ million 2009 annual report 2009
Page 136 and 137:
Page 138 and 139:
13. Joint ventures and associates*
Page 140 and 141:
Page 142 and 143:
16. Trade and other receivables con
Page 144 and 145:
2009 annual report 17. Ordinary sha
Page 146 and 147:
Page 148 and 149:
20. Interest-bearing borrowings con
Page 150 and 151:
2009 annual report 20. Interest-bea
Page 152 and 153:
22. Provisions continued September
Page 154 and 155:
Page 156 and 157:
27. Post-employment benefits - pens
Page 158 and 159:
27. Post-employment benefits - pens
Page 160 and 161:
2009 annual report 2009 2008 27. Po
Page 162 and 163:
2009 annual report 28. Post-employm
Page 164 and 165:
28. Post-employment benefits - othe
Page 166 and 167:
29. Share-based payments continued
Page 168 and 169:
2009 annual report 29. Share-based
Page 170 and 171:
2009 annual report 29. Share-based
Page 172 and 173:
30. Financial instruments continued
Page 174 and 175:
Page 176 and 177:
Page 178 and 179:
2009 annual report 30. Financial in
Page 180 and 181:
Page 182 and 183:
Page 184 and 185:
Page 186 and 187:
Page 188 and 189:
Page 190 and 191:
Page 192 and 193:
Page 194 and 195:
2009 annual report 31. Related-part
Page 196 and 197:
2009 annual report 33. Environmenta
Page 198 and 199:
Company auditor’s report for the
Page 200 and 201:
Condensed Sappi Limited company bal
Page 202 and 203:
2009 annual report Notes to the con
Page 204 and 205:
Glossary General definitions bleach
Page 206 and 207:
not be comparable with similarly ti
Page 208 and 209:
No issue and/or sale of these share
Page 210 and 211:
Notes Confirmation of appointment o
Page 212 and 213:
Proxy form for annual general meeti
Page 214 and 215:
forward-looking statements Certain
show all

Our performance in 2009 - Sappi

Create successful ePaper yourself

Delete template?

Save as template?