Sappi Limited · JSE:SAP
Sappi — Corporate Update (February 2003)
12 slides from Sappi's corporate update, Feb 11, 2003
Slide 1: Investment Analysts Visit
Investment Analysts Visit 11 February 2003
Slide 2: Joint Venture
Joint Venture • LignoTech South Africa is a 50/50 Joint Venture between: – Sappi Saiccor of South Africa – Borregaard of Norway (an Orkla subsidiary) • Company formed in December 1997 • Asset Base R110 million - Shareholders’ Equity R32 million • Production commenced in December 1998 • Plant capacit
Slide 3: The Orkla Group
The Orkla Group Branded Consumer Goods Sales: NOK 38 billion (2001) Employees: 30 000 Chemicals Sales: NOK 6.6 billion Employees: 2400 Financial Investments Investment Analysts Visit 11 February 2003
Slide 4: Borregaard Business
Borregaard Business Business units units Borregaard Specialty Fine Other chemicals Ingredients chemicals Areas z Borregaard z Borregaard z Denofa z Borregaard LignoTech Synthesis NEA z Borregaard z Borregaard ChemCell Energy z Kemetyl z Orkla Exolon Investment Analysts Visit 11 February 2003
Slide 5: Borregaard: An international chemicals company
Borregaard An An international international chemicals chemicals company company Main office Production Sales-/ repr. office Investment Analysts Visit 11 February 2003
Slide 6: Global Lignosulphonate Market
Global Lignosulphonate Market Concrete Admixture Oil Well Additives Tiles & Bricks Dust Control Gysum / Board Animal Feed Binders Other Total Market 2001 = 1 million tons Investment Analysts Visit 11 February 2003
Slide 7: LTSA Expansion
LTSA Expansion Motivation • Georgia Pacific has closed 200 000 t of capacity • Saiccor Effluent Permit renewal December 2002 • Logical next phase of planned growth of LTSA Project • Capacity From 55 000 to 155 000 tpa with “Footprint” of 250 000 tpa (JV Maximum) • Capex R330m inclusive of R55m at Sa
Slide 8: LTSA Expansion
LTSA Expansion z FUNDING z Latest cost estimate R320 million (R10 million saving) z External bank funding R220 million z Cash from existing operations R80 million z Shareholders input R20 million z SIP Allowance z CONSOLIDATED LTSA z Gross Revenue R395 million z Operating Income R109 million Investm
Slide 9: LTSA Sales Mix by Region
LTSA Sales Mix by Region CURRENT SALES MIX FUTURE SALES MIX Asia Middle East Africa Asia Pacific Middle East Africa Americas Investment Analysts Visit 11 February 2003
Slide 10: Existing Plant
EXISTING PLANT Investment Analysts Visit 11 February 2003
Slide 11: Expansion Project
EXPANSION PROJECT Investment Analysts Visit 11 February 2003
Slide 12: Expansion Project
EXPANSION PROJECT Investment Analysts Visit 11 February 2003