Investor Presentation March 2012.pdf - Sappi

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, which do not relate to historical matters, 

identify forward-looking statements. 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 forwardlooking 

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 the global economic downturn; 

• 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; 

• 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 restructuring, investments, acquisitions and dispositions (including related financing), any delays, unexpected costs 

or other problems experienced in connection with dispositions or with integrating acquisitions and achieving expected savings and 

synergies; and 

• 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. 

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 ‘Investor Info’ 

section of www.sappi.com. 

| Roadbook | March 2012

• Group Overview 

| Roadbook | March 2012 

• Products 

• Strategy 

• Results 

• Divisional Overviews 

• North America 

• Europe 

• South Africa 

• Conclusions

Sappi at a glance 

Sappi Fine Paper 

(75% ’11 sales) 


Europe 


North America 


2011 sales - $7.2bn 

@ 15,600 Employees 

Sappi Southern Africa 

(25% ’11 sales) 

Paper & Paper 

Packaging 

Saiccor 

(Chemical Cellulose) 

Forests 

Coated fine paper 

62% 

Sappi Trading 

Jiangxi Chenming 

(China JV) 

8% 

7% 

15% 

Uncoated fine paper 

Coated specialties 

Pulp 

7% 

Commodity paper 

1% 

Other

Geographic diversification 

Global presence enables Sappi to take advantage of opportunities where markets are strong 

¹ For the FY2011 

� 13 Sales offices on 6 

continents 

54% 


21% 

� 3 Paper Mills 

25% 

Sales By Source 1 (US$) 

� 8 Paper Mills 

� 6 Pulp and Paper Mills 

� 1 Chemical Cellulose Mill 

� 555,000ha Forests 

46% 

22% 

13% 

19% 

Sales By Destination 1 (US$) 

� 1 Fine Paper Mill (JV) 

Europe 

North America 

Southern Africa 

Asia & other

Pulp Integration 

Sappi sells slightly more pulp than it buys. 

Sappi Group Pulp Balance (‘000 tons) 

1200 

900 

600 

300 

0 

-300 

-600 

-900 

-1200 


Net sales Net Purchases 

-881 

152 

Fine Paper Europe Fine Paper N. 

America 

* Includes 800kt Saiccor chemical cellulose 

910 

181 

Sappi Southern Africa Sappi Group 

104% Integrated

Currency sensitivity 

10c change in ZAR/USD rate: 

• Annual impact ‐ US$8 million on operating income 

Change in USD/EURO rate: 

• Small direct impact on operating income – 

� In Europe, we export paper in USD and buy USD denominated pulp 

• Macro‐economic impact on European export economies 

� impact on advertising demand 

� a strengthening USD against the Euro is a positive for Sappi, but 

currently being offset by poor economic conditions 


Other sensitivities 

Some of the more important factors which impact the group’s operating profit excluding special 

items, based on anticipated revenue and cost levels, are summarized in the table below. 


*Excludes Depreciation 

Sensitivities Change SFPE SFPNA SA Group 

Euro'm US$'m ZAR'm US$'m 

Net Selling Prices 1% 27 13 127 68 

Variable Costs 1% 16 8 66 39 

Sales Volume 1% 9 5 50 25 

Fixed Costs 1% 6 5 44 19 

Brent Crude Oil Price US$ 1 3 2 4 6 

Pulp Prices US$ 10 (6) 2 35 (1) 

Wood Prices 1% 2 2 3 6 

ZAR/US$ 10c - - 63 9 

Euro/US$ 10c - 3 - 3



• Products 

• Strategy 

• Results 



• Europe 


• Conclusions

Printing & Writing Paper Grade Structure 

FIBER QUALITY 

100% chemical pulp fiber furnish 


Increasing mechanical/recovered fiber content 

Newsprint 

Coated Fine Paper (CWF) 

Uncoated Woodfree (UWF) 

Coated Mechanical (CGW/LWC) 

Supercalendered (SC‐A) 

Supercalendered (SC‐B) 

Machine Finished Specialities (MFS) 

Improved Newsprint 

PAPER QUALITY

Industry Consolidation 

Capacity share of top 5 Coated Woodfree Paper producers 

100% 

80% 

60% 

40% 

20% 

0% 


Source: EMGE March 2011 

33% 

Europe North America Global 

Rest of World 

81% 

60% 

93% 

27% 

46% 

25% 

38% 

1990 2011 1990 2011 1990 2011 1990 2011

Global Coated Woodfree Paper Balance 

million metric tons 

35 

30 

25 

20 

15 

10 

5 

0 

1999 2001 2003 2005 2007 2009 2011 2013 2015 


Source: EMGE, Sappi 

97% 

Demand Capacity 

84% 

79%

Global Coated Mechanical Paper Balance 

million metric tons 

25 

20 

15 

10 

5 


Source: EMGE, Sappi 

87% 

Demand Capacity 

80% 87% 

0 

1999 2001 2003 2005 2007 2009 2011 2013 2015

Energy costs 


Natural Gas 

Sappi FY2011 Energy Usage 

(% split based on US$ consumption) 

Coal 

33% 

8% 

18% 

29% 

15% 

Oil 

Purchased Electricity 

Biomass & Other 

• Sensitivity: 1% energy input cost change = US$6 million impact on operating 

income

Chemical cellulose 

• Uses wood as its raw material, but not a paper pulp 

• Diverse range of end use products 

• Fibres (woven and non-woven textiles) and films 

• Chemicals and pharmaceuticals 

• Acetates and plastics 

• Largest single facility and biggest market share 

• Well placed for exports to Asia 

• Good growth rates for most products – textiles “cellulose gap” 


Industry overview – Chemical Cellulose 

Major Global Market Segments 

(Total 2011 demand = 5m tons) 

Ethers 

Acetate 

* Viscose Staple Fiber 


Source: Sappi 

Others 

VSF* 

Sappi 

Birla 

RGE 

Rayonier 

Tembec 

Others 

Global Top 5 Chemical 

Cellulose Producers 

0 

2011 % Capacity 

53% of Global Capacity 

5 

10 

15 

Global capacity 5.8m tons 

20

Key Demand Drivers for Textiles 

Key Demand Drivers for Textiles 

� Population growth 

� Increasing requirement for more comfortable clothing 

� Rising urbanization and standard of living in the Greater Asian Region 

� Middle class in Asia is rapidly increasing in size and purchasing power 

� Asian middle class to grow to 2.7 billion by 2030 from the current 1.9 billion people 


Source : Lenzing/Asian Development Bank 

Million 

Metric 

Tons 

65.8 

Textile Fibres Consumption 

123.5 

Forecast 

113.3 

100.7 

86.8 

72.5 

2005 2010 2015 2020 2025 2030

What is driving textile prices? 

• Increasing demand for textiles 

• Food security becoming an issue 

• Arable land increasingly scarce 

• Land degradation 

• Urbanisation 

• Growth in demand for biofuels 

• All non-food crops under pressure due to need for food 

• Genetically modified crops can only help so much 


Source : National Cotton Council of America 

US cents/pound 

180 

160 

140 

120 

100 

80 

60 

40 

20 

World Cotton Price - "A" Index

Share of Historical & Future Fibre Production 

• Production of cotton is forecast 

to remain stagnant or shrink 

• Growth in total fibre 

consumption will be covered by 

man-made fibres 


Million Metric 

Tons 

140 

Wool 

120 

Cotton 

100 

Man‐made Cellulosic Fibres 

80 

Synthetic Fibres 

Fibre Production 

Forecast 

• However certain moisture 

management properties of 

cellulose fibres cannot be 

60 

40 

substituted by oil based 

20 

synthetic fibres, enhancing 

0 

opportunity for cellulosics Source : Lenzing 

“Cellulose Gap” 

1900 1920 1940 1960 1980 2000 2005 2010 2015 2020 2025 2030

Capacity additions 

+‐ 3 Million tons of Capacity Announcements for 2012/4 


Toba 

Stora Enocell 

Sun Paper 

Chenming 

Jilin 

Chenming 

Hubei 

Capacity Directed at China 2013 

Sodra Morrum 

Hunan 

Cosmo 

Fujian 

Qingshan 

China Bamboo, 

Fujian 

Nanping 

Cloquet 

Jilin 

Bahia 

less Ow n 

Thurso 

Paper 

Excellence 

Lee and Man

Competitor cash costs 

+ 25% 

Average 

Cash Cost 

‐ 30% 


Below Average Cost 

Sappi = 27% 

Others = 28% 

Source: RISI/sappi 

World Competitor CC Cash Costs into VSF 

includes 80% of supply volumes 

Above Average Cost 

45%



• Products 

• Strategy 

• Results 



• Europe 


• Conclusions

The Past Year 

• Good start to 2011 – weaker in the 2 nd half 

• European uncertainty and CWF export declines 

• Excellent SA Chemical Cellulose performance 

• Continued underperformance of SA paper operations incl. 

strikes 

• North America performed well 

• Successful refinance 

• A year of major intervention in tough markets 

• Closures of Biberist and Adamas 

• Restructure of Southern African operations 

• Restructuring and impairment charges affect profit and EPS 

• Reasonable Q1 2012 

• traction with implementation of strategy 


Strategic Overview 

• Refined strategy with emphasis on value creation 

• Focus 

• Increasing importance of growth - Not at the expense of 

the balance sheet 

• Internal actions to improve EU and SA 

• Benefits in Europe have started 

• Benefits in South Africa to start in 2H 2012 


Strategy 

Four key elements 

• Improving Europe and South Africa, starting to see results 

• Maintain performance in NA and Chemical Cellulose, focus on 

volumes 

• Invest in high growth & margin businesses with leading 

positions 

• Chemical cellulose – focus on contracting volumes 

• Release – pattern development 

• Forests – self sufficiency and cost 

• Reduce Debt 

Day-to-day focus on maximisation of profitability and cash 


generation



• Products 

• Strategy 

• Results 



• Europe 


• Conclusions


Q1 2012 Summary 

• European business performance benefits from 

restructuring and cost reduction actions – US$100m per 

annum cost reductions on track 

• South African chemical cellulose business performed 

strongly – achieved highest quarterly profit margin in 3 

years 

• North America negatively affected by pulp prices and 

technical issues at Somerset 

27

Operating Profit excluding special items* 

150 

125 

100 

75 

50 

25 

0 

-25 


25 

2009: $33m 2010: $339m 2011: $404m 

-17 -13 

38 

81 

54 

75 

129 137 127 

60 

80 

100 

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q** 2Q 3Q 4Q 1Q 

*Refer to the supplementary information in this presentation for a reconciliation to reported operating profit and page 16 in our Q1 2012 results booklet for a 

definition of special items. 

**Q1 2011 included an extra week

EBITDA* Trend 

250 

200 

150 

100 

50 

0 


106 82 93 

Q1 

Q2 

Q3 

150 193 156 176 

Q4 

Q1 

Q2 

Q3 

227 246 228 

Q4 

Q1** 

Q2 

164 

Q3 

*EBITDA as shown above excludes special items. Refer to page 16 in our Q1 2012 results announcement booklet for a definition of special items. 

**Q1 2011 included extra week 

2009: $431m 2010: $752m 

2011: $821m 

183 194 

Q4 

Q1

Divisional Operating Margins* 

25% 

20% 

15% 

10% 

5% 

0% 

-5% 

-10% 


European actions driving recovery 

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 

2009 2010 2011 

*The divisional operating margins exclude special items. Refer to page 15 in our Q1 2012 results announcement booklet for a definition of special items. 

Q1 2012 

Margins: 

Southern 

Africa 15.8% 

Europe 3.5% 

North America 

2.8%

Net Debt Development 

Debt reduction remains a focus 

US$ m 

3,000 

2,500 

2,000 

1,500 

1,000 


Q109* 

Rights Offer to finance 

European Acquisition 

Q209 

Q309 

Q409 

Q110 

Q210 

Q310 

* Cash proceeds of US$536m for European Acquisition from rights offer not offset against debt 

European Acquisition 

completed 

Major Refinancing 

completed 

Q410 

Q111 

Q211 

Repaid $140m 

South African debt 

Q311 

Q411 

Q112

Debt maturity profile 

Strong liquidity and maturity profile 

Cash on hand: US$401 million 

RCF US$324 million – undrawn 

As at December 2012 

1 000 

900 

800 

700 

600 

500 

400 

300 

200 

100 

0 

USD million 

401 

129 

70 

Note: Based on Sappi quarter end reported exchange rates of US$/€ $1:€1.2948 and US$/ZAR 

$1:ZAR 8.0862 


21 

183 

376 

703* 

26 

Includes 2014 

$300m and 

€350m Bonds 

RCF Headroom; 

Unutilised 

324 

Includes 2018 

€250m Bond 

62 

326 

(September fiscal year end) 

2021 $350m Bond 

2012 2013 2014 2015 2016 2018 2021 2032 

Cash Securitisation Overdraft SPH Term Debt RCF SSA 

350 

221 

* Net of $50m unamortised IFRS adjustments relating 

mainly to upfront costs and discounts on the 2014 bonds



• Products 

• Strategy 

• Results 



• Europe 


• Conclusions

Who We Are 

� Leading North American coated paper producer 

� 2011 Net Sales: $1.52B 

� 2011 EBITDA: $203M (EBITDA margin of 13.4%) 

� Two integrated coated freesheet mills and dedicated sheeting center and one specialties 

mill 

� 1.2M short tons of paper production capacity 

� 1.1M short tons of pulp production capacity 

� Three businesses: Coated Paper, Pulp and Specialties 

SFPNA Net Sales by Product (2011) US Coated Freesheet Capacity Shares 

Specialties 

12% 


Pulp 

13% 

Coated 

75% 

Verso, 12% 

Other, 16% 

NewPage, 

42% 

SFPNA, 29%

SFPNA has driven improvements through selected 

investment and strategic actions 

Grade change 

optimization 

2006 

Product and 

brand alignment 

with customer 

segments 

$(30)M 


Rebuild SPM1 

2007 2008 2009 2010 2011 

Significant 

product redesign, 

performance pay 

tied to key 

financial metrics 

Implemented 

Lean Six Sigma 

Shut Muskegon 

Right sized fixed 

costs 

Operating Income 

Somerset Pulp 

Mill Upgrade 

Emerged from 

recession 4 quarters 

ahead of 

competitors 

Approved 

Chemical Cellulose 

and Somerset PM3 

rebuild 

Achieved 14% 

RONOA 

$129M

Q1 2007= 1 


US Coated Paper Prices and Shipments 

1.3 

1.2 

1.1 

1.0 

0.9 

0.8 

0.7 

0.6 

0.5 

0.4 

Domestic CFS shipments Total US CFS consumption CFS #3 60lb Rolls prices 

US Industry Shipments and total US consumption – Source AF&PA and RISI indexed to Q1 2007 

36

SFPNA Release Papers - What is Release Paper? 


SFPNA key advantages 

• Well invested, premier asset portfolio with fully integrated facilities 

• Established brands with strong market position 


• Exposure to most attractive end‐market segments 

• Unmatched reputation for product innovation and customer service 

• A low cost producer with strong free cash flow profile 

• Results driven management team with proven track record of 

execution 

• Defined and focused opportunities for driving further profitable growth



• Products 

• Strategy 

• Results 



• Europe 


• Conclusions

Sappi Fine Paper Europe 

• # 1 in Coated Woodfree paper with 25.8% capacity 

share 

• # 2 in Mechanical Coated Paper with 13.5% capacity 

share 

• # 1 in high quality Flexpack 

• Total paper capacity of 3.7m Tons 

• 2011 Sales: $3,965m 

• 2011 EBITDA: $300m 


Strategy for healthy profit and cash generation 

Rightsizing capacity 

• ‐> Closure of Kangas 2010 (200KT MCR) 

• ‐> Closure of Biberist 2011 (435KT WFC) 

• ‐> M‐real closure of Äänekoski 2012 (180kt WFC, sold by Sappi) 

• ‐> We are full! 

Substantial cost reduction 

• ‐> Runrate for €100m cost reduction achieved in Q1 

• ‐> FTE reduction of 12%, no strikes, no disturbance to service 

• ‐> More to come … 

• ‐> Biberist products carouselled with no loss of market share 

Grow Specialities 

• ‐> Successful launch of Fusion White Top Liner 

• ‐> Digital inkjet product Jaz.in eclusive arrangement with HP 

• ‐> Specialities grew by 4.5% in 2011 


Key strengths 

• Well invested assets at the heart of the 

European market 

• Best service provider 

• Consistent strong cash generation 

• Decisive Management team with strong 

execution track record. 

• Becoming a low cost producer 

• Opportunities in highly profitable 

specialities market 

• Ability to cope with further market 

shrinkage 


SFPE cost/ton 

• Index Variable Cost / ton: October 2010 = 100% 

• Index Quarterly Cash Fixed Cost: Q1‐2011 = 100% 


• Sustainable improvement of $100million 

• Manpower reduction of 764 FTEs 

• Capacity reduction (Biberist +Äänekoski): 700Ktons

Q1 2007 = 100 


W. Europe Coated Paper Deliveries & Prices 

1.20 

1.10 

1.00 

0.90 

0.80 

0.70 

0.60 

Q1 

2007 

Q2 Q3 Q4 Q1 

2008 

Q2 Q3 Q4 Q1 

2009 

Q2 Q3 Q4 Q1 

2010 

Western Europe Shipments Incl. Export – Source Cepifine, Cepiprint and RISI indexed to Calendar Q1 2007 

Q2 Q3 Q4 Q1 

2011 

Q2 Q3 Q4 

CWF MCR CWF 100gsm sheets prices LWC 60gsm offset reels prices 

44

Market development 

• Differing ViewS –CWF Western Europe 

15.0% 

10.0% 

5.0% 

0.0% 

-5.0% 

-10.0% 

-15.0% 

-20.0% 


10.7% 

7.9% 

10.4% 

Growth Rates Western Europe CWF 

1.0%1.1% 

2.8% 

-6.7% 

8.1% 

2.0% 

1.1% 0.8% 

-2.4% 

-17.1% 

EMGE RISI SAPPI PPPC 

1.3% 

-4.5% 

-0.8% -1.0% 

-2.7%

Market development 


• Differing Views –MC Western Europe

Summary 

� Cost reduction leads to 

sustainable improvement 

� Sappi is competitive in 

service, quality and cost in 

Europe 

� Capacity is right sized 

� Cash generative and 

profitable 

� Management with strong 

executive track record 

� Highly attractive and growing 

specialities business 




• Products 

• Strategy 

• Results 



• Europe 


• Conclusions

Sappi Southern Africa 

• # 1 in Chemical Cellulose with 14% capacity share 

• Wide range of paper, tissue & packaging; 

• 567,000ha of forests in Southern Africa 

• Total paper capacity of 1.08m tons 

• Total pulp capacity of 2.02m tons 

• 2011 Sales: $1,801m 

• 2011 Op. Income: $199m 


Strategy for Southern Africa 

Grow Chemical Cellulose 

• Saiccor expansion by 215k ton (Sep 2008) 

• Ngodwana expansion by 210k ton (Apr 2013) 

• Lowest quartile cost base 

• Market growth of >6% per annum 

Forestry resources / renewable energy 

• Low cost wood resources in SA and elsewhere 

• Renewable energy projects at our operations 

Match our assets to our resources and the market 

• Closure of Adamas Jul 2011 (40k ton) 

• Planned closure of fibre lines Mar 2012 (300k ton) 

• Planned reduction of paper capacity Mar 2012 (100k ton) 

• Address future environmental issues 

• Substantial cost reduction 


Ngodwana Chemical Cellulose Project 

• Only 2 known lower cost producers 

• Timber 

• Logistics 

• Why are our costs so low 


• Cost of growing fibre 

• Proximity of forests to Ngodwana 

• Good logistics to main markets 

• Project time line 

• All major contracts concluded 

• Equipment delivery completed: Nov‐2012 

• Tie into existing plant: Mar‐2013 

• Chemical cellulose production: Apr‐2013

Strategy – Southern Africa 

• Increase access to and beneficiation of low cost plantation 

fiber 

• Expand access to plantation land in Southern Africa 

• R&D focus on new commercial uses for fiber 

• Grow our pulp and chemical cellulose businesses 

• BEE – sustainable and continuous improvement in our 

audited BEE score 


Wood Resources 

• Sappi owns and manages 555,000ha’s of timber plantations 

– Supplies 70% of wood requirements 

– all own plantations are FSC certified and 82% of fibre used is certified 

• Global wood prices being driven by increasing demand 

– Paper and paper products 

– Bio energy/fuel 

• Seeking to expand resource 

– South Africa 

– Southern Africa 


$/ODMT 

120 

100 

80 

60 

40 

20 

Source – Wood Resource Quarterly 

South Africa US South Brazil Int Avg


NBSK Pulp Price* 

1,100 

1,000 

900 

800 

700 

600 

500 

400 

300 

Jan-03 

Jan-04 

Jan-05 

• Pulp prices stabilizing 

Jan-06 

* Source: Average monthly FOEX delivered European prices 

NBSK (US$/ton) NBSK (EUR/ton) 

Jan-07 

Jan-08 

Jan-09 

Jan-10 

Jan-11 

Jan-12 

54 

$831/ton 

€644/ton

Low cost wood resources – Eastern Cape project 

• 30 000 ha of tree plantations by 2020; 

• Supply ± 450k ton/annum; 

• Ownership with communities; 

• Sappi as Implementation Partner; 

• 12 600 ha in Project Pipeline; 

• 690 ha planted to date; 


55 

• 500 direct and 1500 indirect jobs /10 000 ha; 

• Grant funding. Supplemented by Sappi and IDC;

Renewable energy and energy levy 

• Selling electricity to Eskom from: 


• Ngodwana 

• Saiccor 

• Access to biomass resources to 

improve energy self sufficiency 

• Energy levy of 2.5c/kW on generated electricity; 

• Exeption for co‐generation & renewable energy 

• Gazetted 15 Dec 2011 

56

Restructuring update 

• Adamas 

• Fixed cost reduction of R77m 

• Profitable products carouselled 

• Site cleaned and being offered for sale 

• SG&A functions 

• Marketing, Sales & Supply Chain 

completed 

• Procurement, HR, Communications, 

Finance � shared services 

• Other opportunities being 

investigated 

• Cost savings of R39m 


Improving our operations and products 

• Aligning capacity with demand 

• Closing highest cost lines 

• Address future environmental costs 

• Reduces cost by R250 million p.a. 

• Lowest cost producer 


• Simplified product range 

• Value for money products 

• Excellent, efficient service 

• Niche market opportunities

Summary 

• Investing in Chemical Cellulose 

• Low cost producer 

• Fast growing market 

• Excellent customer relationships 

• Growing forestry assets 

• Improving paper business 

• Better use of timber 

• Improving cost position 

• Profitable with growth 

opportunities 




• Products 

• Strategy 

• Results 



• Europe 


• Conclusions

Strategic Overview 

• Growth plans progressing well – realistic expectations and confidence in 

our track record. No other major projects in the next few years 

• Fixing our EU and SA businesses an on-going process, minimise cash 

expenditure and take out costs 

• Optimisation of NA and Chemical Cellulose businesses on-going – signs 

of pulp price turning 

• Debt remains important focus – refinancing has lowered cost, maturities 

still good but intend to bring levels down to below $2bn post CC projects 

and reduce gearing (e.g. Net debt:EBITDA) to a different order of 

magnitude 



Conclusion 

• We have a sound strategy 

• We believe in what we are doing 

• Traction on actions to date 

• World is uncertain 

• Totally committed to achieving more 

wins and accelerating value creation for 

shareholders through improved profit, 

strategic positioning and debt reduction


Inspired by life

Investor Presentation March 2012.pdf - Sappi

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