Transcription of Sappi Limited
1 | Sappi | Debt Update | March 2013 1 Sappi Limited Debt Update March 2013 | Sappi | Debt Update | March 2013 2 Forward looking statements Certain non-GAAP financial information is contained in this presentation that management believe may be useful in comparing the company s operating results from period to period. Reconciliation's of certain of the non-GAAP measures to the corresponding GAAP measures can be found in the quarterly results booklet for the relevant period. These booklets are located in the Investor Info section of Regulation G disclosure Certain statements in this release that are neither reported financial results nor other historical information, are forward-looking statements, including but not Limited to statements that are predictions of or indicate future earnings, savings, synergies, events, trends, plans or objectives.
2 The words believe , anticipate , expect , intend , estimate , plan , assume , positioned , will , may , should , risk and other similar expressions, which are predictions of or indicate future events and future trends, which do not relate to historical matters, identify forward-looking statements. You should not rely on forward-looking statements because they involve known and unknown risks, uncertainties and other factors which are in some cases beyond our control and may cause our actual results, performance or achievements to differ materially from anticipated future results, performance or achievements expressed or implied by such forward-looking statements (and from past results, performance or achievements).
3 Certain factors that may cause such differences include but are not Limited to: the highly cyclical nature of the pulp and paper industry (and the factors that contribute to such cyclicality, such as levels of demand, production capacity, production, input costs including raw material, energy and employee costs, and pricing); the impact on our business of the global economic downturn; unanticipated production disruptions (including as a result of planned or unexpected power outages); changes in environmental, tax and other laws and regulations; adverse changes in the markets for our products; the emergence of new technologies and changes in consumer trends including increased preferences for digital media; consequences of our leverage, including as a result of adverse changes in credit markets that affect our ability to raise capital when needed.
4 Adverse changes in the political situation and economy in the countries in which we operate or the effect of governmental efforts to address present or future economic or social problems; the impact of restructurings, investments, acquisitions, dispositions and other strategic initiatives (including related financing), any delays, unexpected costs or other problems experienced in connection with dispositions or with integrating acquisitions or implementing restructuring or strategic initiatives (including our announced dissolving wood pulp conversion projects), and achieving expected savings and synergies; and currency fluctuations.
5 We undertake no obligation to publicly update or revise any of these forward-looking statements, whether to reflect new information or future events or circumstances or otherwise. | Sappi | Debt Update | March 2013 3 Group Structure Sappi entities taking up debt Sappi Limited Sappi Southern Africa (SSA) Sappi Papier Holding (SPH) Sappi Trading Sappi North America Sappi Europe Sappi Limited Guarantee * South African Debt Non-South African Debt * Sappi Limited provides guarantees for long-term non-South African debt | Sappi | Debt Update | March 2013 4 Debt Overview Refer to note 20 in the 2012 Sappi Limited Annual Report on Form 20-F for a detailed debt description US$ millionsSeptember 2012 December 2012 March 2013 LONG TERM SECURED
6 SUBORDINATED DEBT741 716 673 SECURITISATION380 360 347 (LESS - SHORT-TERM PORTION)(187)(169)(133)NET SHORT TERM DEBT(379)(198)(90)OVERDRAFTS, CPs & RCF DRAWING79 137 174 SHORT TERM PORTION OF LONG TERM DEBT187 169 133 (LESS CASH)(645)(504)(398)NET | Sappi | Debt Update | March 2013 5 Detailed Debt Summary March 2013 US$ millionsNon USD DebtUSD AmountSappi Southern Africa Long Term DebtR2,565278 2017 Bond - US$ (swapped to )400 2018 Bond - Euro 250321 2019 Bond - US$ (swapped to )
7 300 2021 Bond - US$350 2032 Bond221 OeKB Term Loan 136174 Securitised Receivables EUR 176226 Securitised Receivables USD121 Sappi Europe Leases 34 IFRS Adjustments (upfront fees and discounts on Bonds)(18)Long Term less Short Term Portion of Long Term Debt(133)Total Long Term Short Term Loans & Overdrafts (excl. South Africa)75 Short Term Loans & Overdrafts South Africa99 Short Term Portion of Long Term Debt (All South Africa)133 LESS Cash - Sappi South Africa(92)LESS Cash - Sappi Group (excl.)
8 South Africa)(306)NET DEBT AT MARCH Consists of an OeKB Trade Finance facility in Austria, which is rolled quarterly Debt secured by security package, see slide 12 Consists mainly of a South African RCF drawing and commercial paper issued in South Africa. | Sappi | Debt Update | March 2013 6 Net Debt Movement US$ m illionQ2 Mar 2013 Net Debt - beginning of Net Cash utilised during the period99 Currency, fair value and other(42) Net Debt - March | Sappi | Debt Update | March 2013 7 Net Debt Development | Sappi | Debt Update | March 2013 8 Maturity Profile (Annual)
9 As at March 2013 2032 $221m Bond Includes 2018 250m Bond 2021 $350m Bond 2019 $300m Bond Includes 2017 $400m Bond * ZAR450 million ($49 million) drawing under the evergreen ZAR1 billion South African Revolving Credit Facility. In addition, the 350m International Revolving Credit Facility maturing in April 2016, is undrawn.. | Sappi | Debt Update | March 2013 9 Maturity Profile (Fiscal) as at March 2013 2032 $221m Bond Includes 2018 250m Bond 2021 $350m Bond 2019 $300m Bond Includes 2017 $400m Bond * ZAR450 million ($49 million) drawing under the evergreen ZAR1 billion South African Revolving Credit Facility.
10 In addition, the 350m International Revolving Credit Facility maturing in April 2016, is undrawn.. | Sappi | Debt Update | March 2013 10 Debt Split (gross debt) 11%75%14%SSASPHS ecuritisationSappi takes up debt mainly at SPH and SSA, refer to slide 3. Securitisation debt is taken up in a central special purpose vehicle which is consolidated in the group results. 67%18%15%SPH, SecuredSPH, UnsecuredSSA, Unsecured| Sappi | Debt Update | March 2013 11 Debt Ratios (gross debt unless otherwise stated) 59%41%Fixed Rate DebtVariable Rate Debt27%58%15%USD DebtEUR DebtZAR Debt87%13%Public DebtBank DebtDebt by currency, based on gross debt and includes effect of currency swaps and hedges.
