Sappi Limited · JSE:SAP
Sappi — Merger or Acquisition (December 2017)
12 slides from Sappi's merger presentation, Dec 5, 2017
Slide 1: Cham Paper Acquisition delivering on strategy
Cham Paper Acquisition delivering on strategy 05 December 2017 2017 Vision 2020 next phase growth intentional evolution 1
Slide 2: Deal Rationale
Deal Rationale Supports strategy and 2020 vision to grow our speciality paper business Strategic opportunity to grow Sappi Europe’s Specialities and Packaging Paper business by acquiring Cham Paper Group Assets consist of a two Italian Speciality Paper Mills and a Digital Imaging Business in C
Slide 3: Deal Valuation
Deal Valuation Current business (LTM) has €183M of sales and €20M of estimated sustainable EBITDA Purchase price CHF146.5M – 5.9 x LTM EBITDA (4.2 x EBITDA with synergies) Funded from internal cash resources €10M synergies estimated within 2 years Deal closure likely to be in FY Q2 2018
Slide 4: Asset Overview
Asset Overview Mills located in the northern part of Italy 2 mills with 3 paper machines and inline coaters Combined capacity 160k t.p.a Opportunity for capacity growth of 10k t.p.a. Complementary products to the existing Sappi portfolio Well maintained assets Digital Imaging business
Slide 5: Asset Overview Italian mills
Asset Overview Italian mills Carmignano mill Production: 100 000 tons p.a. Head count: 210 Products: C1S flexpack, C1S label paper, base paper for digital imaging sublimation Condino mill Production: 60 000 tons p.a. Head count: 120 Products: Glassine and super calendared flexible packaging paper 5
Slide 6: Segment – Consumer goods
Segment – Consumer goods Trends: • Lightweight packaging • Sustainability • Recyclable and sustainable • Increase paper, reduce plastics • Innovative materials (Barrier) 6
Slide 7: Segment – Industrial release
Segment – Industrial release Trends: • Adhesive bond instead of screw fitting • Individualized products • Replacement of nails as suspension system 7
Slide 8: Segment – Digital imaging
Segment – Digital imaging Trends: • Fast production and production on demand • Small quantities and fast deliveries • Sustainability • Quality improvement 8
Slide 9: Market Share by Segment
Market Share by Segment Based on combined Sappi and Cham Paper 2016 Sales Combined Market European Global Market Segments European Growth Main Competitors market Market Cham Paper Sales by market share Rate/yr Consumer Goods Segment Ahlstrom-Munksjö, Burgo, UPM, Flexible packaging paper, food and no
Slide 10: The customer view
The customer view Sappi will become one of the leading speciality paper companies with a wide range of product offerings and global availability Sappi is known for high quality, service offering and dedication to innovation Of sufficient size to be considered by multi-national brand owners O
Slide 11: Sappi view - Multiple growth opportunities
Sappi view - Multiple growth opportunities Broadened customer base. Improved service and design capabilities. Opening up a large number of growth avenues. Leverage potential for innovation with new customer-focused solutions Build the foundation for future growth by transfer of existing and ne
Slide 12: Thank you
Thank you 12