Our performance in 2009 - Sappi

4
Our performance in 2009
Financial
Sales down 8% to US$5.4 billion
All our operations have acted
to improve energy efficiency
and self-sufficiency.
Operating profit of US$33 million (2008: US$366 million) excluding special items;
special items amounted to a net pre-tax charge of US$106 million
Basic EPS loss of 37 US cents, unfavourably affected by special items of 13 US cents
(2008: EPS of 28 US cents; unfavourably affected by special items of 23 US cents)
Cash generated of US$289 million (2008: cash utilised of US$139 million)
Net debt of US$2.6 billion, up US$171 million
No dividend declared
Major strategic achievements
Acquisition of M-real’s coated graphic paper business completed
on 31 December 2008
Saiccor Mill expansion reached full production in September 2009
Debt refinanced; good liquidity and extended maturities secured
ZAR convenience translation
September September September September
2009 2008 2009 2008
US$ million US$ million ZAR million (3) ZAR million (3)
Sales 5,369 5,863 48,393 43,559
Operating (loss) profit (73) 314 (658) 2,333
Special items – losses 106 52 955 386
Operating profit excluding special items 33 366 297 2,719
EBITDA excluding special items (1) 431 740 3,885 5,498
(Loss) profit for the year (177) 102 (1,595) 758
US cents US cents SA cents (3) SA cents (3)
Basic (loss) earnings per share (37) 28 (333) 208
Dividend per share (2) – 16 – 156
Ordinary shareholders’ interest per share 348 700 2,578 5,655
Achieved Achieved
September 2009 September 2008
Operating (loss) profit to sales (%) (1.4) 5.4
Operating profit excluding special items to sales (%) 0.6 6.2
EBITDA excluding special items to sales
Operating profit excluding special items to
8.0 12.6
capital employed (ROCE) (%) 0.8 9.1
Return on equity (ROE) (%) (10.4) 6.0
Net debt to total capitalisation 58.9 60.0
Cash interest cover (times) 3.2 4.4
(1) Refer to the five-year review for a reconciliation
of (loss) profit for the year to operating profit
excluding special items, and EBITDA excluding
special items.
(2) The dividend for the prior financial year was
declared subsequent to year end.
(3) The translation to South African Rands from
United States Dollars has been calculated at an
average rate for the year of US$1 to ZAR9.0135
(September 2008: US$1 to ZAR7.4294), except
for dividends which have been translated at the
rate of exchange on the date of declaration.
Note:
Definitions for various terms and ratios used above
are included in the glossary on page 199.