Sappi Limited · JSE:SAP
Sappi — Investor Presentation (June 2013)
23 slides from Sappi's investor presentation, June 2013
Slide 1: Welcome To Cloquet
Welcome To Cloquet June 2013 1 Cloquet Mill Presentation | June 2013
Slide 2: Mill History
Mill History 1898 Built as Groundwood Mill 1964 Merged with Potlatch 1989 PM12 and New Coater 1993 PM4 Rebuild 1999 New Pulp Mill 2002 Purchased by Sappi 2004 PM12 Rebuild 2013 Begin Chemical Cellulose Production 2 Cloquet Mill Presentation | June 2013
Slide 3: Safety
Safety Cloquet Mill OIR/LTIFR 2003 - 2013 YTD 6 5 4 OIR 3 LTIFR Expon. (OIR) 2 Expon. (LTIFR) 1 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 YTD 3 Cloquet Mill Presentation | June 2013
Slide 4: Minimizing our Environmental Footprint
Minimizing our Environmental Footprint • Excellent compliance record • Lowest published GHG emissions among our competitors • Received the “Minnesota Governor’s Awards for Pollution Prevention” in 2006 and 2009 • >95% of steam is generated from renewable energy • Water supply available from both Lak
Slide 5: Reduction in Greenhouse Gas Emissions
Reduction in Greenhouse Gas Emissions 1.00 0.89 0.90 0.80 0.74 0.70 0.65 ton CO2e/adt 0.60 0.55 0.50 0.46 0.43 0.39 0.40 0.30 0.24 0.25 0.26 0.24 0.21 0.22 0.21 0.20 0.10 0.00 FY2000 FY2002 FY2004 FY2006 FY2008 FY2010 FY2012 Reference = Industry average data from the AF&PA study reflects data from c
Slide 6: Landfill Life Extension
Landfill Life Extension 6 Cloquet Mill Presentation | June 2013
Slide 7: Renewable Fuel for Steam/Power
The Cloquet mill’s on-site renewable energy position is world class 100 % Renewable Fuel for Steam/Power 95 90 Pinch 85 80 75 70 65 60 55 50 2001 2003 2005 2007 2009 2000 2002 2004 2006 2008 2010 2012 2011 Reference 7 Cloquet Mill Presentation | June 2013
Slide 8: Cloquet's Wood Source Species Mix
Cloquet’s Wood Source Species Mix KRAFT Species Annual Tons Aspen 1,100,000 Maple 770,000 Pine/Birch 90,000 Total 1,960,000 SPECIALIZED CELLULOSE Species Annual Tons Aspen 1,300,000 Maple 645,000 Total 1,945,000 8 Cloquet Mill Presentation | June 2013
Slide 9: Cloquet Wood Procurement Area
Cloquet Wood Procurement Area 9 Cloquet Mill Presentation | June 2013
Slide 10: Cloquet Mill Presentation | June 2013
10 Cloquet Mill Presentation | June 2013
Slide 11: Cloquet Paper Grades
Cloquet Paper Grades Machine McCoy Opus Opus PS Flo Somerset Galarie PM4 238# 220# 220# 220# 183# 183# 156# 183# 183# (9pt) 146# 146# 142# 146# 146# (8pt) 119# 128# 110# (7pt) PM12 146# 119# 119# 119# 100# 100# 100# 80# 80# 80# 70# 70# 70# 60# 60# 11 Cloquet Mill Presentation | June 2013
Slide 12: Markets
Markets • SFPNA enjoys a very strong position in high end direct mail, advertising and catalogs where the flight to quality is evident • And while many magazines are struggling, our titles are growing – in F12: – Industry ad pages were almost flat – Titles printed on Sappi were up 6%! The top four m
Slide 13: Cloquet Mill Presentation | June 2013
13 Cloquet Mill Presentation | June 2013
Slide 14: Cloquet Headcount
Cloquet Headcount 1,052 FY '02 to May 2012 850 800 750 752 753 748 748 740 735 735 728 728 711 707 700 650 FY '01 FY '02 FY '03 FY '04 FY '05 FY '06 FY '07 FY '08 FY '09 FY '10 FY '11 May-12 14 Cloquet Mill Presentation | June 2013
Slide 15: Project Athena
Project Athena • $170M strategic investment • New debarking unit • 2 additional digesters • Pulp Mill Modifications − Bleach plant − Evaporators − Market pulp machine • Modify paper machines to run dry fiber 15 Cloquet Mill Presentation | June 2013
Slide 16: Project Athena
Project Athena • Mill Pulp Integration – SFPNA will go from approximately 120% to 106% due to lower CC volumes versus kraft pulp • Cloquet pulp mill will retain kraft pulp production capability to provide maximum flexibility to market dynamics • We will still have low cost energy advantage 16 Cloque
Slide 17: Why Cloquet – low cost, renewable energy
Why Cloquet – low cost, renewable energy Steam and electricity Products: pulp paper Paper and Pulp Mill Paper Mill Market Kraft Pulp Kraft pulp Steam and electricity market pulp Products: paper More paper and Pulp Mill Paper Mill Dissolving Pulp = more profit Dissolving pulp
Slide 18: Why Cloquet – Assets
Why Cloquet – Assets • Newest pulp mill in NA – commissioned in 1999 • Relative ease to convert – Displacement batch cooking technology – Oxygen delignification followed by ECF bleaching – Well-matched capacities throughout pulp mill • Excess utilities capacity for steam, electricity, water and effl
Slide 19: Sappi Strength
Sappi Strength • Sappi is established in the Chemical Cellulose business –Global leader – 800K over 1.3M ADMT of capacity –Low quartile cost • Sappi experience –Decades of experience manufacturing CC and understanding its performance in downstream markets –Centre of Excellence • Sappi reputation w
Slide 20: Cloquet: An Award Winning Mill
Cloquet: An Award Winning Mill 2006 2006 & 2009 Lake Superior Minnesota Governor’s Award for Bi-National Pollution Prevention Program Environmental Stewardship Award For Outstanding Contribution to Protect and Restore 2007 National Pollution Prevention the Lake Superior Basin Roundtable Most Valuabl
Slide 21: Cloquet: Site Map
Cloquet: Site Map Recovery Paper Wood Yard Pulp Mill Boiler Machines Bleach Plant Pulp Dryer St. Louis River 21 Cloquet Mill Presentation | June 2013
Slide 22: In Summary
In Summary • Sappi is: The recognized market leader in chemical cellulose The research leader in chemical cellulose production The expert in chemical cellulose use • The Cloquet Mill is: A world class pulp and paper mill in an excellent location A mill with excellent flexibility in both pulp and pap
Slide 23: Thank You
Thank You 23 Cloquet Mill Presentation | June 2013