Sappi is a Global Leader

Transcription

1 Sappi North America

2 Sappi is a Global Leader +Sappi is one of the world s leading producers of coated fine papers used in premium magazines, catalogs and high-end advertising. +We also produce release papers for the automotive, fashion and engineered films industries and are the world s largest producer of Specialized Cellulose used in textiles. +Our parent company, Sappi Limited, is listed on the Johannesburg stock exchange. +We have manufacturing operations on three continents in seven countries, supplying customers in over 100 countries. +Today, our brands are among the most specified by marketing and design professionals.

3 Sappi s International Footprint GLOBAL REACH PAPER CAPACITY: approx. 5.9 million metric tons PAPER PULP CAPACITY: 2.4 million metric tons SPECIALISED CELLULOSE CAPACITY: 1.3 million metric tons We employ over 13,700 people in 20 countries worldwide

4 Sappi North America s Premier Assets Cloquet Mill Minnesota 360K short tons coated fine paper 360K short tons Specialised Cellulose Allentown Sheeting Facility Pennsylvania 100K tons sheeting capacity Somerset Mill Maine 870K tons coated fine paper 580K tons pulp Westbrook Mill Maine 30K tons coated specialty paper Our North American roots date back to 1854 and in 1879 we developed the 1 st coated paper Sappi North America currently employs over 2200 people in the region Total fine paper capacity in NA: 1.2M short tons/year 4

5 Sappi is Well-Positioned for the Future Strategic Focus: +Maintaining and growing our world leadership position as a low cost dissolving wood pulp producer +Growing high margin specialty paper business in all regions +Low cost graphic paper business with reasonable margins and strong cash flows 5

6 Capital Investments Upgrading capabilities in coated paper is a top priority while optimizing assets across all three business units Coated paper investments: + $19M investment at Cloquet in dry fiber handling system, new refiners, and former upgrades on PM4 and PM12 enabling us to expand cover capacity and flexibility + $13M capital investment in PM3 at Somerset that upgraded coated paper quality and lowered input costs, as well as expanded our commercial web capacity and flexibility Specialised Cellulose and Release investments: + $170M capital project to convert Cloquet kraft pulp mill to produce 330K metric tons per year of Specialized Cellulose + $2.5M on a coater re-build to optimize Release production at Westbrook 6

7 Global Innovation & Market-Focused R&D What we deliver + Global leader in R&D investment + Focused on innovations to solve problems + Technology centers on 3 continents What that means for you + Access to new products and improvements + Puts you on the forefront of market trends and new technologies + Leverage global innovation trends and ideas 7

8 12-Month Rolling Average LTIFR Strong Safety Performance Critical to Success % year/year safety improvement in 2013 Top 10 performance in NA pulp and paper industry SFPNA Top Quartile 8

9 Sappi s Sustainability Platform Three pillars of sustainability People Planet Prosperity Three key environmental issues Responsible Forestry Energy and Emissions Recycling and Recycled Fiber Three key stakeholder groups Customers Employees Communities

10 sappi warren release papers Welcome to the Release Business Management Meeting November 17, 2010

11 What is Release Paper?

12 Casting

13 Sappi/Warren Release Papers will be known around the world as the leading source for functional textures.

14 Strategic Pathway Sappi/Warren Release Papers will be recognized as the global leader in new texture development and replication based on our ability to: Create unique textures that support the functional and aesthetic needs of our customers spanning the automotive, fashion and engineered film industries, and more! Develop and launch new textures in a timeframe that captures the business cycles of our customers markets Provide surface chemistries that are tailored to support a wide variety of applications and markets We will continue to partner with our customers to deliver added value to the markets they serve. sappi warren release papers

15 Westbrook Today The Westbrook Mill operates two businesses: Sappi Warren Release Papers Dominant manufacturer world wide of release papers for the automotive, fashion and engineered films industries. Power Sales Annual sales of approximately 335,000 MWhrs of electrical energyenough to power 30,000 homes!

16 Release Business/Westbrook Site Paper Mill PM9, coating and dry fiber delivery systems Classic Release 2 off-machine coaters 6 embossers 2 calender stacks Ultracast Release 4 e-beam coaters Utilities Complex Biomass boiler 2 back up boilers 6 turbine generators 6 hydroelectric dams Finish Winding and Shipping 6 rewinders 330 Employees

17 17

18 Global Sales Laminates Engineered Surfaces Upholstery Garments Commercial Upholstery Sport Shoes Brown Shoes Handbags

19 Product Promotion

20 Global Sales Team

21 Interesting Facts We sell in 57 countries. Sometime our product goes by commercial airlines! A reduction in beef consumption translates to less leather hides and more demand for synthetic leather. Transacting in Euros, a shift in $0.01 in exchange rate translates to $300,000 annually! sappi warren release papers

22 SFPNA Release Business End Use Applications Release 100% Non Release 0% Casting 87% Laminating13% Coated Fabrics 65% Transport 15% Engineering Film 7% Decorative Laminate 13% Brown Shoes Bags & Luggage Garments Upholstery Leather Goods Sports Shoes Automotive Marine Motorcycle Snowmobiles ATV s Insulation Vibration Foams Medical Films Decal Sound Foams Aircraft Decor Camouflage Laminate floors Furniture Wall panels Vinyl flooring Cabinets Doors Biomimicry PrintedElectronics RFID

23 New Domestic Business Vinyl Car Wrap

24 The Mission Possible Teen Center has received many contributions from the Westbrook Mill over the years. Mission Possible is a drop-in after school program that is open to all Westbrook teens. All of their services and activities are free for youth. The mill has supported the teen center both financially and with in-kind services since it was first founded in Sappi Westbrook has shown strong support for the United Way, having raised over $216,000 dollars since Additionally, Sappi participates jointly with the United Way on food drives and are annual participants at the United Way Day of Caring. sappi

25 Environmental Initiatives in Westbrook Public Access to Outdoor Recreation Boat Launches Portage Routes Public Access As part of operating six renewable energy hydropower projects, Sappi has built public access recreation areas along the Presumpscot River, including $100,000 worth of pedestrian bridges for access to prime fishing holes. River activity updates are published on our tumbler blog.

26 Environmental Initiatives in Westbrook More Initiatives Cumberland Mills Fishway Sappi Westbrook runs on 84.2% renewable energy, adjusted to 73.3% after accounting for sales of RECs (renewable energy credits) well above the national and industry averages. (2012 numbers) In 2013, Sappi completed a $4.5 million Denil fish ladder to pass anadromous fish above Cumberland Mills for the first time since the mid-19 th century. Sappi has a high-energy Sustainability Team that engages employees and the community in promoting environmental awareness. Sappi manages for the future based on the three P s of Sustainability ~ people social Labor practices, Community impacts, Human rights, Product responsibility planet environmental Air quality, Water quality, Energy usage, Waste produced prosperity economic Sales, profits, ROI, Taxes paid, Monetary flows, Jobs created

27 Westbrook Future The Constant is Change Global Markets Move Markets Mature Markets Emerge Innovate Be Nimble Understand the Customer Teamwork

28 Thank you.