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Letter to stakeholders from the Chairman and CEO
Sir Nigel Rudd
ChairmanSteve Binnie
Chief Executive Officer
Presenting a coherent and consistent culture of the highest integrity is a pillar of our strategy.
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Q & A with the CEO Steve Binnie
Steve Binnie
Chief Executive Officer
We believe that our leading position in the dissolving wood pulp (DWP) market offers us exciting growth prospects into the future.
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Chief Financial Officer's Report
GT Pearce
Chief Financial Officer
Our 2020Vision had identified fiscal 2018 as a transition year.
Our strategy and performance
Guided by our strategy, we measure our progress holistically against our mission, collaborating and partnering with stakeholders as we strive to be a trusted and sustainable organisation with an exciting future in woodfibre.
| 2016 | 2017 | 2018 | 2019 Objectives notes | ||||||||||
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Sales (US$ million) | 5,141 | 5,296 | 5,806 | Maximise sales on the back of acquisitions and expansion during 2018 | ||||||||
| ROCE2 (%) | 17.5 | 18.0 | 14.6 | Continuously improving with a minimum of 12% | |||||||||
| Net debt (US$ million) | 1,408 | 1,322 | 1,568 | Decrease year-on-year; manage with growth ambitions | |||||||||
| EBITDA1 (US$ million) | 739 | 785 | 762 | Grow on the back of higher sales volumes | |||||||||
| Net debt/EBITDA | 1.9 | 1.7 | 2.1 | Maintain ~2x | |||||||||
| EBITDA margin (%) | 14.4 | 14.8 | 13.1 | Improve to target of 15% | |||||||||
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| LTIFR1,2 | 0.46 | 0.44 | 0.43 | Target zero, with a minimum 10% improvement year-on-year | |||||||||
| Sustainable engagement (%)2 | 74 (2015)3 | 85 | Not measured3 | Maintain or improve | |||||||||
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| Energy intensity (GJ/adt)2 | 22.62 | 22.57 | 22.38 | 5% improvement over the period | |||||||||
| Certified fibre (%)2 | 73.0 | 73.5 | 75.2 | Maintain or improve percentage | |||||||||
| 1 | Linked to executive remuneration. | Self assessment of 2018 performance | ||
| 2 | Identified sustainability goal, with targets set for 2020 in line with our vision. See Our global 2020 sustainability goals for more information. | Legend: | ||
| 3 | Not measured; survey takes place every second year. |  Satisfactory performance |
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 Progress to be made/Ongoing |
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 Unsatisfactory performance |
Who we are
| Global leader in pulp and paper solutions |
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Founded in South Africa in 1936 JSE top 40 |
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| 5.7 million tons per annum of paper production capacity |
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2.3 million tons per annum of paper pulp production capacity |
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| Direct and indirect customer base in over 150 countries |
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1.4 million tons per annum of dissolving wood pulp production capacity |
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| Strong commitment to corporate citizenship and sustainability |
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12,645 employees | |||||||
| FTSE/JSE Responsible Investment Top 30 UNGC |
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OHSAS 18001, ISO 9001 and 14001 certification in all mills |
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| Product development for new woodfibre based biomaterials and biochemicals markets |
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379,000ha owned and leased sustainably managed forests in South Africa |
Sappi has 18 production facilities and 37 sales offices globally
More on Who we are