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NAMPAK SA’s Leading Packaging Company

NAMPAK SA’s Leading Packaging Company. Full Range of Packaging in Paper, Metal, Plastics & Glass. NAMPAK. Current Share Price: R23 PE: 15 Dividend Yield: 3.7% New Top Management Good Recovery- Sold off Dogs Potential enhanced profit from Angolan Bevcan & local Corrugated

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NAMPAK SA’s Leading Packaging Company

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  1. NAMPAKSA’s Leading Packaging Company Full Range of Packaging in Paper, Metal, Plastics & Glass

  2. NAMPAK • Current Share Price: R23 • PE: 15 • Dividend Yield: 3.7% • New Top Management • Good Recovery- Sold off Dogs • Potential enhanced profit from Angolan Bevcan & local Corrugated • Good Potential if Rand weakens • Strong Share Price & Volume Movement since results announcement • Worth considering over long run

  3. Leading World Producer of Coated Fine Paper • Other Paper Products: • Newsprint, • Uncoated, • Speciality , • Packaging • Wood Pulp • Chemical Cellulose SAPPI

  4. SAPPI Product Range Production: Mil Tonnes: Paper 6.8 Pulp 3.3 Chem Cellulose 0.8

  5. Geographic Spread • Sales 7.9 Mil Tonnes $6.6 Billion

  6. SAPPI DEBT PROBLEM • Millions • Nett Debt: $2221 • Finance Costs: $ 255 • Debt by Currency: % $ 48.4 Eur 34.1 ZAR 17.5 • Debt Covenants: • Nett Debt/EBITDA: < 6 • EBITDA/ Interest: > 2 • Dividend Restriction: • Debt/EBITDA: >4:1 • EBITDA/ Interest: <2:1 • Dividend > 50% of Nett Profit

  7. SAPPI SHARE INFO: No of Shares: 516 Million Market Cap: $2000 Million Shareholders: 12% N America 13% Europe & Rest of World 75% SA Major Shareholders: PIC: 8.4% OM 5.0% Fund Managers: Allan Gray: 30% OM: 13% RMB: 8% Share Price: 2/12/10: R35.20 P E: 47 YM: 6.0%

  8. Strengths: • Good Geographic Spread – Rand Hedge • Good Assets & Product • Technically Competent • SA Profitable • Saiccor Strength • Weaknesses: • Over Capacity in Paper Industry – Selling Prices constrained • Advertising spend sensitivity • IT Innovations threaten Paper usage • Debt Burden • Rising Input Costs: Energy • Currently: • Improved Pulp Prices • Paper Prices following • Strong demand • Mills full

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