Sappi Limited · JSE:SAP
Sappi — Investor Presentation (June 2003)
30 slides from Sappi's investor presentation, June 2003
Slide 1: Welcome to Sappi Forests
welcome to sappi forests 1
Slide 2: Introduction
Introduction • Second largest commercial tree plantation owner in South Africa • Sappi investment in plantations R3,500 m • Sappi investment in projects R80 m • Harvest and replant/coppice +/-15,500ha p.a. 2
Slide 3: Introduction
Introduction • Supply approximately 3 million tons of timber per annum from own plantations • Average years for trees to reach maturity range from 8 years (hardwood) to 22 years (softwood), depending on site quality and species • Planted area in Sappi Forests: 249,000 ha • 61 plantations / 13,131 co
Slide 4: Plantation Holdings in South Africa
Plantation Holdings in South Africa State 7% Sappi 19% Black Economic Empowerment 19% Safcol 7% Needs updating figures unavailable Other private owners Mondi 19% 22% Other corporations 1,331 million hectares 7% 4
Slide 5: Direct Land Control by Sappi
Direct Land Control by Sappi Grower schemes/projects 20% Leased Land Own Land 2% 78% 475 000ha 5
Slide 6: Forestry
Forestry ‘wc *Vryheid ig . ‘is \ « Major Towns Roads GO oLowveld 6 GE Midlands =] Natal
Slide 7: Lowveld Region
Lowveld Region ( Pi Legend @ Towns Lowveld Districts [ Camelot North [ Camelot South Ge Graskop Ge Inkwazi i= Sudwala [) Ndubazi @ Twello , 4 f ay Pilgrims Rest = Tae Sabi AFR Ve :
Slide 8: Midlands Region
Midlands Region =e Legend Towns idlands Districts Central Hlelo Lothair Melmoth North Rooihoogte South fl
Slide 9: Natal Region
Natal Region vi oO Legend @ Towns Natal Districts G Bulwer @ Karkloof Ge Richmond G&_ Umkomaas B® Umvoti
Slide 10: Major Risks
Major Risks Fire Drought Theft Disease 10
Slide 11: Departments
Departments Sappi Forests Research and Nurseries Forestry Fibre Supply 586 Employees Environmental Finance and Information Technology Human Resources 771 Timber Products Employees 11
Slide 12: Forestry Process
Forestry Process Seedlings Planting R&D Maintenance Mill Transport Felling Depot Shorthaul 12
Slide 13: Research
Research • Internal – Shaw Research Centre at Tweedie – Emphasis on Tree Breeding (genetically improved material) • Improving pulp yield & quality • Propagation • Land Management 13
Slide 14: External research partners
• External – Institute for Commercial Forestry Research (ICFR) – Forestry and Agricultural Biotechnology Institute (FABI) – Council for Scientific and Industrial Research (CSIR) – Central America and Mexico Coniferous Resources Co-operative (Camcore) 14
Slide 15: Nurseries
Nurseries Nursery Plant type Capacity Ngodwana, Eucalypt & pine seedlings + 18 million Mpumalanga Richmond, Eucalypt & pine seedlings + 15 million KwaZulu-Natal KwaMbonambi, Clonal eucalypt cuttings + 6 million KwaZulu Escarpment, Family pine cuttings + 3 million Mpumalanga 15
Slide 16: Contractors / Outsourcing
Contractors / Outsourcing Value = 112 Contracting Companies R357 million per annum Silviculture Harvesting Shorthaul 9 500 Loading Employees Longhaul Infrastructural (security, fire protection) 16
Slide 17: Fibre Supply
Fibre Supply • Projects – Approximately 97,000 ha – 9,495 growers • Bought-out / Exchanges – 53% (3,230,000 ton) total • Logistics • Data and Planning 17
Slide 18: Projects
Projects MAP 42% Other 8% DWAF 5% PRP GROW 30% 15% 97 043ha 18
Slide 19: Environment
Environment • Comprehensive environmental management system • 18 natural heritage sites • 54 sites of conservation significance • Bio-control of alien invasive plants • Working for Water riverine clearing programme (11 000ha cleared to date) • Communication with stakeholders (FELF) 19
Slide 20: Risk Management System
Risk Management System • ISO 14001 (received in April 1999) • ISO 9001 (logistics received in October 1998) • FSC accreditation (two sawlog producing areas – December 1999) • Integrating ISO 9002, ISO 14001 and OHSAS 18001 (target November 2002) 20
Slide 21: Timber Products / Sawmills
Timber Products / Sawmills • Boskor – Plettenberg Bay • Lomati – Barberton • Clan – Pietermaritzburg 21
Slide 22: Eucalypts Hardwood
Eucalypts Hardwood • Eucalyptus grandis • Eucalyptus dunnii • Eucalyptus nitens • Eucalyptus smithii • Eucalyptus macarthrii • Various Grandis hybrids 22
Slide 23: Pine Softwood Hardwood
Pine Softwood • Pinus patula • Pinus greggi • Pinus elliottii • Pinus taeda • Various hybrids Hardwood • Acacia mearnsii 23
Slide 24: Land Use
Land Use Gum 29% Wattle 3% Pine 32% Permanently Unplanted 34% Temporary Unplanted 377 957ha 2% 24
Slide 25: Land Use per Region
Land Use per Region 160000 Unplanted 140000 Planted 120000 100000 Ha 80000 60000 40000 20000 0 Lowveld Midlands Natal 377 957ha 25
Slide 26: Trees Grown per Region
Trees Grown per Region 100000 90000 80000 70000 60000 Wattle Ha 50000 Gum 40000 Pine 30000 20000 10000 0 Lowveld Midlands Natal 248 903ha 26
Slide 27: Timber Supply per Region
Timber Supply per Region 1200000 Hardwood Softwood 1000000 800000 Tons 600000 400000 200000 0 Lowveld Midlands Natal 27
Slide 28: Markets Supplied
Markets Supplied Ngodwana 33% Saiccor 28% Sappi Sawmills 4% Enstra 4% Tugela Other 17% 14% 6.1 million tons per annum 28
Slide 29: Ngodwana Mill fibre intake by source
Ngodwana Mill fibre intake by source Private Midlands Midlands 10.3% 4.0% Lowveld 43.1% Private Lowveld 42.6% 2 187 096 ton 29
Slide 30: Ngodwana Mill fibre intake by type
Ngodwana Mill fibre intake by type Softwood Hardwood (chips) 11.1% 9.0% Softwood (news) 12.9% Softwood (chem) 67.0% 2 187 096 ton 30