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
      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%
      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
      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
         Progress to be made/Ongoing
         Unsatisfactory performance

Performance against our strategic focus areas

Strategic focus areas 2018 Performance 2019 Objectives
Achieve cost
advantages
  • Ongoing variable cost savings year-on-year
  • Investments in infrastructure and energy projects at core mills
  • Ongoing research to deliver cost improvements
  • Continuously improve cost position
  • Continue to maximise global benefits
  • Best-in-class production efficiencies
Rationalise declining businesses
  • Balanced printing and writing papers supply and demand by converting capacity to specialities and packaging papers
  • Maximise production at low-cost mills
  • Continuously balance paper supply and demand in all regions
  • Continue to transition printing and writing papers capacity to higher margin and growing specialities and packaging papers
Maintain a healthy balance sheet
  • Maintained target of net debt/EBITDA of ~2x
  • Strong cash generation
  • Continued to monitor bond markets for opportunities to refinance at lower cost
  • Renewal of revolving credit facility (RCF)
  • Achieved multiple price increases to offset rising costs
  • Maintain net debt/EBITDA ~2x
  • Continuously improve working capital
  • Continue to monitor bond market for opportunities
Accelerate growth in higher margin growth segments
  • Continue to make investments in existing and adjacent areas with strong potential growth
  • Advanced the expansion of higher margin and growing specialities and packaging papers in Europe and North America through conversions
  • Investments made in speciality packaging, including Rockwell Solutions and Cham Paper Group
  • Strong Mountained pipeline of biotech business opportunities
  • Maintained global leadership position in dissolving wood pulp
  • Identified various growth opportunities in dissolving wood pulp and specialities and packaging papers
  • Completed the construction of the nanocellulose pilot plant
  • Commissioned the construction of a sugars extraction plant
  • Grow dissolving wood pulp capacity matching market demand
  • Continue to expand and grow specialities and packaging papers in all regions targeting 25% of group EBITDA by 2020
  • Commence commercialisation of biotech opportunities