Group overview

Adapt. Advance. Amplify.

Delivering sustained value

growexplore our theme

As a company based on the power of renewable resources, we are well placed to take lessons from nature: When plants grow too quickly and are not properly rooted, they become top heavy and prone to toppling over. Similarly, if there is not enough light, even though tall, they can become spindly and not fit for purpose.

So, while growth is one of our strategic fundamentals, our approach to it is purposeful and phased. This means being responsive to our environment and the impacts of constant change on our stakeholders. It also means being rooted in our legacy of innovation and excellence and grounded by our Thrive25 strategy. Accordingly, we leverage our existing strengths and grow our people to progress in high-impact, high-value areas. We also partner to shape new marketing opportunities and industry standards that will stimulate growth.

Above all, we recognise that growth can only be sustainable insofar as it supports the health and repair of the natural environment on which we depend. And it is only inclusive when value is shared and society is positively impacted.

This is our focus as we work to build a thriving world.

Responding to our context

illumeexplore our theme

Sky lanterns – traditionally called Khoom Fay in China – can be traced back thousands of years to one of the early Chinese dynasties. They were used not only as decorative light sources but also as military signals that could communicate messages across long distances. Today, it is said they are released at traditional festivals to emphasise the unity of family coming together to celebrate the lunar new year. This is represented by the lanterns collecting in the sky and expressing the wholeness of family.

Sappi is situated in many different regions across many different cultures and countries. But we come together as one whole, OneSappi, united by our purpose which is our guiding light: Sappi exists to build a thriving world by unlocking the power of renewable resources to benefit people, communities and the planet.

Passion and excellence are the sparks that ignite thriving. And they're what keep our commitment to create a thriving future for the world and our business burning so brightly. They're also what will continue to illuminate our way forward – today and tomorrow.

Diving deeper into our,
performance and prospects

createexplore our theme

We are creators, relentless in our drive to make everyday solutions more sustainable. We understand that the power of the imagination is one of our biggest strengths and that opportunities don't just happen. Which is why we apply our creative energy to seeking them out and leveraging our partnerships to realise them.

In doing so, we harness the intellectual curiosity and critical thinking of our people to let go of certainties and develop breakthroughs that delight our customers, enable lasting outcomes for our stakeholders and a more positive impact on the planet. This aligns with our values of "making smart decisions which we execute with speed". So that when we fail, we fail fast and move on.

While innovation is key to delivering profit and margin improvement, we do not create merely because we have the available manufacturing assets, skills, technology and IP.

We do so to lead by example, inspire others and create the thriving tomorrow to which we are committed.

Governance and compensation

reflectexplore our theme

Only in still waters do things reflect undistorted. As a business, we take the time to reflect on our past actions – including assessing our relationship with our stakeholders, particularly our people – to understand more clearly where we have succeeded, where we could have done better and how we can continue to build sustainable competitive advantage. This investment in reflection enables us to calibrate the solutions we provide and our response to the world around us.

As OneSappi, we understand that like dropping a stone into a pond creates outward ripples, in today's interconnected world, our actions and decisions can have a significant impact. For example, our decarbonisation actions alone cannot bring the world to net zero, but they can have a ripple effect that influences and encourages others.

Many people think of excellence as an upward journey, but at Sappi we view it as going round and round in ever-expanding, infinite waves. This view is reflected in the use of irregular waves which symbolise energy and unity used as a design element throughout this report and in the above image.

Going forward, we will continue to focus on excellence with energy and clarity and unity of purpose.

Appendices

celebrateexplore our theme

Any sporting great will tell you that, even if they are an individual performer, their wins are due not just to their own prowess, but also to the work taking place behind the scenes. Most specifically, their win also belongs to the team backing them up – from the coaches who are with them every step of the way; to those who believe in them, even when obstacles seem insurmountable.

As we celebrate an outstanding year, we readily acknowledge that it is the outstanding perseverance, collaboration and commitment of our extraordinary people that delivered the results. We do not forget that it took tremendous courage from our people to implement the decisions that ultimately delivered so handsomely.

Together, over the last few years, we have been through some challenging times. We have taken some tough decisions and have had to make difficult calls.

Our people have countered volatility with agility, setbacks with courage and problems with perseverance and ingenuity. Through it all, they have held the flag of OneSappi and our purpose of building a thriving world high.

Together, even as we celebrate what we have accomplished, we are committed to maintaining our momentum.

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Share statistics

AS AT SEPTEMBER 2022

Shareholding

Ordinary shares in issue Number of
shareholders
% Number  
of shares1
% of shares
in issue
1 – 5,000 8,730 86.5 3,538,635 0.6
5,001 – 10,000 251 2.5 1,843,770 0.3
10,001 – 50,000 491 4.9 12,393,793 2.2
50,001 – 100,000 179 1.8 12,969,862 2.3
100,001 – 1,000,000 352 3.5 112,622,652 19.9
Over 1,000,000 77 0.8 421,856,820 74.7
  10,080 100.0 565,225,532 100.0
1 The number of shares excludes 5,163,562 treasury shares held by the group.

Shareholder spread

Type of shareholder % of shares
in issue
Non-public 0.5
   Sappi Limited directors and prescribed officers 0.5
   Associates of group directors
   Trustees of the company’s share and retirement funding schemes
   Shareowners who, by virtue of any agreement, have the right to nominate board members
   Share owners interested in 10% or more of the issued shares
Public (the number of public shareholders as at September 2022 was 10,068) 99.5
  100.0

Sappi has a primary listing on the JSE Limited and a Level 1 ADR programme that trades in the over-the-counter market in the United States.

A large number of shares are held by nominee companies for beneficial shareholders. Pursuant to section 56(7) of the Companies Act 71 of 2008 of South Africa, the directors have investigated the beneficial ownership of shares in Sappi Limited, including those which are registered in the nominee holdings. These investigations revealed as of September 2022 the following are beneficial holders of more than 5% of the issued share capital of Sappi Limited:

Beneficial holder Shares %
Public Investment Corporation 107,256,752 19,0
Allan Gray Balanced Fund 37,805,103 6,7
Alexander Forbes Investments 31,179,908 5,5

Further, as a result of these investigations, the directors have ascertained that some of the shares registered in the names of the nominee holders are managed by various fund managers and that, as of September 2022, the following fund managers were responsible for managing 5% or more of the share capital of Sappi Limited:

Fund manager Shares %
Public Investment Corporation 95,814,302 17.0
Allan Gray Pty Limited 95,612,336 16.9
M&G plc 71,525,705 12.7
Ninety One Plc 53,456,551 9.5

 

Share statistics   2022 2021 2020 2019 2018
Ordinary shares in issue (millions)1   565.2 561.5 546.1 542.8 539.3
Net asset value per share (US cents)   417 351 299 359 361
Number of shares traded (millions)            
   JSE   590.9 444.5 736.3 537.1 557.4
   New York   0.5 0.7 2.0 0.3 0.4
Value of shares traded            
   JSE (ZAR million)   29,491.0 17,073.0 24,509.3 33,141.3 49,837.1
   New York (US$ million)   1.6 1.6 4.0 1.5 2.9
Percentage of issued shares traded   104.6 79.3 135.2 99.0 103.4
Market price per share            
– year end  JSE (South African cents)   4,402 3,861 2,377 3,629 8,875
                  New York (US cents)   268 260 151 251 639
– highest    JSE (South African cents)   6,348 5,269 4,799 9,059 10,579
                  New York (US cents)   420 359 345 640 749
– lowest     JSE (South African cents)   3,785 2,265 1,720 3,542 7,180
                  New York (US cents)   235 135 107 241 613
Earnings yield (%)2   39.18 0.78 negative 16.29 9.56
Price/earnings ratio (times)2   2.55 128.99 negative 6.14 10.46
Total market capitalisation (US$ million)2   1,371 1,449 758 1,300 3,383
1 The number of shares excludes 5,163,562 treasury shares held by the group.
2 Based on financial year-end closing prices on the JSE Limited. Income statement amounts have been converted at average year-to-date exchange rates.

Note: Definitions for various terms and ratios used above are included in the glossary section.