| Thu 30 Jul 2009, 8:55 | | SAP - Sappi Limited - 3rd quarter results for the period ended June 2009 |
|
SAP
SAVVI
SAP - Sappi Limited - 3rd quarter results for the period ended June 2009
Sappi limited
(Registration number 1936/008963/06)
Issuer Code: SAVVI
JSE Code: SAP
3rd quarter results for the period ended June 2009
Financial summary
- Net cash generated US$106 million
- Good progress on debt refinancing
- Global economy remains weak
- Production curtailed in all regions to match supply to
demand
- Stronger Rand impacts SA margins unfavourably
- Basic loss per share 12 US cents
- Acquisition synergies on track
Quarter ended
June 2009 Mar 2009 June 2008
Key figures: (US$ million)
Sales 1,316 1,313 1,494
Operating (loss) profit (7) 6 (23)
Special items - (gains) losses * (6) (23) 111
Operating (loss) profit excluding
special items (13) (17) 88
EBITDA excluding special items ** 93 82 182
Basic (loss) earnings per share
(US cents) *** (12) (7) (17)
Net debt **** 2,770 2,735 2,667
Key ratios: (%)
Operating (loss) profit to sales (0.5) 0.5 (1.5)
Operating (loss) profit excluding
special items to sales (1.0) (1.3) 5.9
Operating (loss) profit excluding
special items to Capital Employed
(ROCE) ** (1.1) (1.6) 8.1
EBITDA excluding special items to sales 7.1 6.2 12.2
Return on average equity (ROE) **** (12.7) (7.5) (15.1)
Net debt to total capitalisation **** 57.5 59.4 61.5
Nine months ended
June 2009 June 2008
Key figures: (US$ million)
Sales 3,816 4,344
Operating (loss) profit 56 289
Special items - (gains) losses * (61) (12)
Operating (loss) profit excluding
special items (5) 277
EBITDA excluding special items ** 281 560
Basic (loss) earnings per share
(US cents) *** (16) 37
Net debt **** 2,770 2,667
Key ratios: (%)
Operating (loss) profit to sales 1.5 6.7
Operating (loss) profit excluding
special items to sales (0.1) 6.4
Operating (loss) profit excluding
special items to Capital Employed
(ROCE) ** (0.2) 8.8
EBITDA excluding special items to sales 7.4 12.9
Return on average equity (ROE) **** (5.4) 10.3
Net debt to total capitalisation **** 57.5 61.5
* Refer to details on special items.
** Refer to Supplemental Information for the reconciliation of
EBITDA excluding special items to (loss) profit for the period.
*** Comparative figures have been revised in accordance with IAS 33 to reflect
the impact of the rights offer.
**** Refer to Supplemental Information for the definition of the
term.
The table above has not been audited or reviewed.
Commentary
Strong cash generation was a feature of our results for the quarter and
benefited from management`s actions to reduce working capital and limit capital
expenditure to essential items. Net cash generated of US$106 million for the
quarter included cash of US$55 million from unwinding fixed-to-floating
interest rate swaps.
Global economic conditions remained depressed in the quarter resulting in
continued weak conditions in most of our coated paper markets. There are
indications that the reduction of inventories in the customer supply chain has
run its course, resulting in improved order inflows in many markets towards the
end of the quarter.
Conditions in pulp markets, including the chemical cellulose markets, improved
significantly in terms of both demand and US Dollar prices, late in the
quarter.
Sales volumes for the quarter were slightly up on the prior quarter but 3% down
on the equivalent quarter last year despite the additional capacity from our
European acquisition earlier in the year.
Average prices realised by the group for the quarter were approximately 9%
lower than average prices realised a year ago.
We continued to match our supply to demand and manage our inventory levels by
curtailing production during the quarter. Our finished goods inventories
declined a further 5% in volume terms compared to March 2009.
Prices of our inputs continued to reduce and had a favourable effect on
variable costs during the quarter, in most regions. Our actions to manage raw
material usage had a further favourable effect.
Management of fixed costs remains a focus area in all our businesses. During
the quarter we announced that we were entering discussions with labour
representatives on the permanent reduction of 90 positions at Kirkniemi Mill
and 49 positions at Biberist Mill.
The integration of the coated graphics paper business from M-real continued to
progress well. During the quarter M-real ceased production of coated graphic
paper at Hallein and Gohrsmuhle mills, reducing industry capacity by 640,000
tons or approximately 7%. We have proceeded to transfer the order books from
these mills to our own mills which we expect to improve our volumes and margins
going forward. Achievement of the synergies from the acquisition are on track
and we expect to achieve approximately EUR60 million of synergies in the nine
months to September 2009 and to achieve the previously announced level of
synergies of EUR120 million per annum within three years.
During the quarter we initiated alternative fuel tax credit claims in North
America and reported a benefit of US$37 million for the period, which is
treated as a special item and included in operating profit. We expect to
receive the cash proceeds during the fourth financial quarter. Under current US
legislation these credits expire on 31 December 2009. There can be no assurance
that they will not expire sooner. In connection with the refinancings currently
in progress, it has been agreed that the alternative fuel tax credit will be
added to EBITDA excluding special items for covenant purposes.
Operating loss excluding special items was US$13 million for the quarter, an
improvement on the loss of US$17 million in the prior quarter and compares with
a profit of US$88 million a year ago. Our European business returned to
profitability, excluding special items, as a result of the ramp up of synergy
achievement and cost reduction, despite poor operating levels. The North
American business improved its performance and its run rate by the end of the
quarter had returned to operating profitability excluding special items. The
Southern African business was impacted by the strengthening of the Rand
relative to the US Dollar, weak domestic demand and low pulp prices in the
quarter, resulting in an operating loss excluding special items.
Special items for the quarter largely comprise an unfavourable fair value
adjustment on plantations of US$25 million and the favourable alternative fuel
tax credit of US$37 million. The operating loss of US$7 million for the quarter
compares with a profit of US$6 million in the prior quarter and a loss of US$23
million a year ago.
Net finance costs for the quarter were US$70 million, up from US$40 million in
the prior quarter, largely as a result of an unfavourable non-cash change in
the value of financial instruments of US$27 million. This includes an upfront
unfavourable non-cash change in the fair value of the previously mentioned
interest rate swaps which were unwound in the quarter of US$20 million. This
will be more than offset by the positive amortisation of the underlying
borrowings over the next three years in the amount of US$46 million.
The effective tax rate for the quarter was 19%. The group did not benefit from
the tax relief on reported losses as a result of the losses in certain regions
where a deferred tax asset has not been raised.
The basic loss per share for the quarter was 12 US cents compared to a loss of
17 US cents in the equivalent quarter a year ago.
Cash flow and debt
Net cash generated of US$106 million for the quarter largely comprised cash
generated by operations of US$77 million and cash released from working capital
reduction of US$93 million less capital expenditure of US$54 million. Net
finance costs in terms of cash flow were negligible in the quarter as a result
of the US$55 million benefit of unwinding fixed-to-floating interest rate swaps
which offset the cash finance costs.
Net debt was unfavourably impacted by currency movements of US$142 million as a
result of the strengthening of the Euro and Rand relative to the US Dollar, our
reporting currency, and therefore increased by US$35 million to US$2.8 billion
during the quarter, although in local currency debt reduced by the equivalent
of US$106 million.
For the nine months to June, net cash generated (excluding cash invested in the
acquisition from M-real) was US$62 million.
Refinancing update
Sappi has made good progress with its refinancing, which is aimed to extend the
maturity of its debt. We have raised approximately US$800 million of senior
secured notes due in 2014 in two tranches: EUR350 million (US$497 million) and
US$300 million, with coupons of 11.75% and 12% and yields of 13.125% and
13.375% respectively. The proceeds have been paid into escrow pending the
finalisation of the replacement revolving credit facility (RCF) of
approximately EUR200 million and OeKB term loan of EUR400 million as well as
documentation of security for the respective lenders, all of which we expect to
have completed by the end of the September quarter.
We intend to use the net proceeds from this offering to repay debt. We expect
to repay a portion of our short term debt and may elect to repay other debt. We
also intend to repay all or part of the EUR220 million vendor loan notes issued
to
M-real at a discount.
US$60 million was also raised in the South African bond market and will be used
to repay short term debt.
The successful completion of our refinancing will take care of our liquidity
and significant debt maturities for at least the next three years; however as a
result of interest rates available in current financial market conditions, our
refinancings will lead to a substantial increase in finance costs.
Operating Review for the Quarter
Sappi Fine Paper
Quarter Quarter Quarter
ended ended ended
June 2009 June 2008 % March 2009
US$ million US$ million change US$ million
Sales 1,098 1,224 (10.3) 1,112
Operating profit (loss) 19 36 (47.2) (43)
Operating profit (loss) to
sales (%) 1.7 2.9 - (3.9)
Special items -
(gains) losses (32) - - 8
Operating (loss)
profit excluding
special items (13) 36 - (35)
Operating (loss)
profit excluding
special
items to sales (%) (1.2) 2.9 - (3.1)
EBITDA excluding
special items 74 113 (34.5) 48
EBITDA excluding
special items
to sales (%) 6.7 9.2 - 4.3
RONOA pa (%) (1.4) 4.4 - (4.3)
There was a US$22 million improvement in the operating result excluding special
items of the fine paper business compared to the prior quarter as a result of
the favourable turnaround in the European business and improvement in the result
of the North American business. However, the much lower operating rates in
Europe and North America resulting from weak global market conditions resulted
in a substantial decline in operating profit excluding special items, compared
to a year earlier.
Europe
Quarter Quarter
ended ended %
June 2009 June 2008 change
US$ million US$ million (US$)
Sales 729 705 3.4
Operating profit (loss) 0 10 -
Operating profit (loss) to sales (%) 0 1.4 -
Special items - losses 4 0 -
Operating profit (loss) excluding
special items 4 10 (60.0)
Operating profit (loss) excluding
special items to sales (%) 0.5 1.4 -
EBITDA excluding special items 62 55 12.7
EBITDA excluding special items
to sales (%) 8.5 7.8 -
RONOA pa (%) 0.7 1.9 -
Quarter
% ended
change March 2009
(Euro) US$ million
Sales 19.3 737
Operating profit (loss) - (21)
Operating profit (loss) to sales (%) - (2.8)
Special items - losses - 0
Operating profit (loss) excluding
special items (52.8) (21)
Operating profit (loss) excluding
special items to sales (%) - (2.8)
EBITDA excluding special items 28.8 34
EBITDA excluding special items
to sales (%) - 4.6
RONOA pa (%) - (4.2)
The European business returned to operating profit excluding special items in
the quarter as a result of synergy achievement, lower input prices and fixed
cost reductions. Operating rates were approximately 75% as we continued to
curtail production to match demand.
Sales volumes were similar to the prior quarter.
Average prices achieved within Europe were stable in the quarter. There were
some improvements in export prices. The average prices achieved for the
business in Euro terms were slightly lower compared to the prior quarter as a
result of an increased proportion of exports and reels in the overall sales mix
for the period.
The achievement of synergies progressed well and in the 6 months we have owned
the business we have achieved approximately EUR38 million of synergies. We
expect to achieve approximately EUR60 million in the nine months to September
2009 and the previously announced level of EUR120 million per annum within 3
years. The rate of synergy realisation will accelerate following the cessation
of coated graphic paper production at M-real`s Hallein and Gohrsmuhle mills and
the transfer of their order books to our mills.
North America
Quarter Quarter Quarter
ended ended ended
June 2009 June 2008 % March 2009
US$ million US$ million change US$ million
Sales 291 424 (31.4) 301
Operating profit
(loss) 24 25 (4.0) (24)
Operating profit
(loss) to sales (%) 8.2 5.9 - (8.0)
Special items
(gains) losses (37) - - 8
Operating (loss)
profit excluding
special items (13) 25 - (16)
Operating (loss)
profit excluding
special items to
sales (%) (4.5) 5.9 - (5.3)
EBITDA excluding
special items 13 53 (75.5) 8
EBITDA excluding
special
items to sales (%) 4.5 12.5 - 2.7
RONOA pa (%) (4.9) 9.2 - (5.9)
Sales volumes improved slightly in the quarter compared to the prior quarter
but were 23% lower than a year ago. Average prices realised declined in the
quarter compared to the prior quarter and were 11% down compared to a year ago.
Prices achieved for pulp started improving during the quarter after sharp
declines in the previous two quarters.
Action taken by management to reduce costs including suspending operations at
Muskegon Mill, reducing the sales and administrative overheads and reducing
unit consumption of raw materials, has helped offset poor market conditions and
improve the result of the business to an operating profit excluding special
items in the month of June.
The alternative fuel tax credit of US$37 million for the quarter is included in
operating profit and treated as a special item.
Fine Paper South Africa
Quarter Quarter
ended ended %
June 2009 June 2008 change
US$ million US$ million (US$)
Sales 78 95 (17.9)
Operating (loss) profit (5) 1 -
Operating (loss) profit to sales (%) (6.4) 1.1 -
Special items - losses 1 - -
Operating (loss) profit excluding
special items (4) 1 -
Operating (loss) profit excluding
special items to sales (%) (5.1) 1.1 -
EBITDA excluding special items (1) 5 -
EBITDA excluding special
items to sales (%) (1.3) 5.3 -
RONOA pa (%) (8.3) 3.2 -
Quarter
% ended
change March 2009
(Rand) US$ million
Sales (9.8) 74
Operating (loss) profit - 2
Operating (loss) profit to sales (%) - 2.7
Special items - losses - -
Operating (loss) profit excluding
special items - 2
Operating (loss) profit excluding
special items to sales (%) - 2.7
EBITDA excluding special items - 6
EBITDA excluding special
items to sales (%) - 8.1
RONOA pa (%) - 4.6
Demand levels were weak in the quarter and prices were under downward pressure
as a result of the strength of the Rand compared to the US Dollar.
The business recorded an operating loss for the quarter despite reducing
operating costs.
Forest Products
Quarter Quarter
ended ended %
June 2009 June 2008 change
US$ million US$ million (US$)
Sales 218 270 (19.3)
Operating (loss) profit (26) (60) -
Operating (loss) profit to sales (%) (11.9) (22.2) -
Special items - losses (gains) 19 111 -
Operating (loss) profit excluding
special items (7) 51 -
Operating (loss) profit excluding
special items to sales (%) (3.2) 18.9 -
EBITDA excluding special items 12 68 (84.4)
EBITDA excluding special
items to sales (%) 5.5 25.2 -
RONOA pa (%) (1.7) 12.0 -
Quarter
% ended
change March 2009
(Rand) US$ million
Sales (11.2) 201
Operating (loss) profit - 48
Operating (loss) profit to sales (%) - 23.9
Special items - losses (gains) - (31)
Operating (loss) profit excluding
special items - 17
Operating (loss) profit excluding
special items to sales (%) - 8.5
EBITDA excluding special items (80.7) 32
EBITDA excluding special
items to sales (%) - 15.9
RONOA pa (%) - 4.6
The Forest Products business was impacted by weak domestic volumes and downward
pressure on local prices in the quarter, which was partly offset by lower
costs. Demand for chemical cellulose strengthened in the quarter, allowing us
to recommence the ramp up of the Saiccor expanded capacity. Utilisation of the
additional capacity remained low in the quarter resulting in unabsorbed fixed
costs and depreciation related to the expansion, which will be eliminated as
the mill approaches full capacity by the end of September 2009. Prices for
chemical cellulose started to recover during the quarter, in line with NBSK
pulp which increased from a low of US$577 per ton in March 2009 to US$644 per
ton in July, still US$260 per ton below the peak in 2008.
The sharp strengthening of the Rand relative to the US Dollar had a severe
direct impact on export revenue received in Rands and on domestic prices as a
result of import competition.
The unfavourable special items of US$19 million for the region in the quarter
relate to an unfavourable plantation fair value adjustment partly offset by an
insurance payout from our captive insurance company to Forest Products.
The insurance payment has no net effect on group special items.
Outlook
Although global economic conditions remain weak we have seen improvement in
pulp markets and some of our coated graphic paper export markets. In addition,
inventory reduction in the coated graphic paper supply chain has largely run
its course and we have started seeing order levels closer to end use demand
levels. We also expect demand, particularly for reels, to strengthen during the
next quarter which is historically the seasonally strongest quarter, and for
our operating rates to improve in Europe and North America.
The chemical cellulose market improved markedly during our third financial
quarter in terms of both demand and pricing. Sappi Saiccor Mill is responding
by ramping up its production following the 30% capacity expansion commissioned
last September, and expects to achieve close to full capacity by our financial
year end and improve sales volumes during the next quarter as production
increases.
Other factors which are expected to improve results are the achievement of
further alternative fuel tax credits in North America of approximately US$40
million which will be reported as a special item, subject to continued
availability under US law, accelerated synergy achievement in respect of the
European acquisition integration, the benefits of fixed and variable cost
reduction action and potential for some further input price reduction
realisation.
Against this background, we expect to return to operating profitability
excluding special items during the next quarter. Cash generation is expected to
be positive for the quarter.
We will continue to focus on cash generation and debt reduction. We expect
capital expenditure for the full year to be less than US$200 million and to
continue to carefully manage capex at that level in order to prioritise debt
reduction.
The successful completion of our refinancing will take care of our liquidity
and significant debt maturities for at least the next three years. With our
well structured business and decisive management action, we are strongly placed
to ride out the current economic downturn and take full advantage of our
leading market positions and efficient asset base when conditions improve.
On behalf of the board
R J Boettger M R Thompson
Director Director 30 July 2009
sappi limited
(Registration number 1936/008963/06)
Issuer Code: SAVVI
JSE Code: SAP
ISIN: ZAE000006284
Other information (this information has not been reviewed)
special items
Special items cover those items which management believe are material by nature
or amount to the operating results and require separate disclosure. Such items
would generally include profit or loss on disposal of property, investments and
businesses, asset impairments, restructuring charges, non-recurring integration
costs related to acquisitions, financial impacts of natural disasters, non-cash
gains or losses on the price fair value adjustment of plantations and
alternative fuel tax credits receivable in cash.
Special items, excluding interest and tax effects, for the relevant periods
are:
Quarter Quarter Nine months Nine months
ended ended ended ended
June 2009 June 2008 June 2009 June 2008
US$ million US$ million US$ million US$ million
Plantation
price fair value
adjustment 25 105 (44) (12)
Restructuring
provisions raised
(released) 2 - 10 (3)
Profit on disposal of
property, plant and
equipment - (1) (1) (5)
Asset impairments 1 1 6 3
Fuel tax credit (37) - (37) -
Integration costs 3 - 3 -
Fire, flood, storm and
related events - 6 2 5
(6) 111 (61) (12)
key regional figures
Quarter Quarter Nine months Nine months
ended ended ended ended
June 2009 June 2008 June 2009 June 2008
Metric tons Metric tons Metric tons Metric tons
(000`s) (000`s) (000`s) (000`s)
Sales volume
Fine Paper -
North America 300 389 919 1,164
Europe 746 637 2,061 1,918
Southern Africa 70 87 222 246
Total 1,116 1,113 3,202 3,328
Forest Products -
Pulp and
paper
operations 355 347 968 1,039
Forestry operations 218 279 649 726
Total 1,689 1,739 4,819 5,093
US$ million US$ million US$ million US$ million
Sales
Fine Paper -
North
America 291 424 955 1,231
Europe 729 705 2,027 2,040
Southern Africa 78 95 226 271
Total 1,098 1,224 3,208 3,542
Forest Products -
Pulp and paper
operations 204 249 567 747
Forestry operations 14 21 41 55
Total 1,316 1,494 3,816 4,344
Operating (loss) profit
Fine Paper -
North America 24 25 (7) 62
Europe - 10 (8) 47
Southern Africa (5) 1 (1) 5
Total 19 36 (16) 114
Forest Products (26) (60) 71 167
Corporate and other - 1 1 8
Total (7) (23) 56 289
Special items - (gains) losses
Fine Paper -
North America (37) - (29) 2
Europe 4 - 4 (4)
Southern Africa 1 - 1 -
Total (32) - (24) (2)
Forest Products 19 111 (44) (10)
Corporate and other 7 - 7 -
Total (6) 111 (61) (12)
Operating
(loss) profit excluding
special items
Fine Paper -
North America (13) 25 (36) 64
Europe 4 10 (4) 43
Southern Africa (4) 1 - 5
Total (13) 36 (40) 112
Forest Products (7) 51 27 157
Corporate and other 7 1 8 8
Total (13) 88 (5) 277
EBITDA
excluding special items
Fine Paper -
North America 13 53 40 144
Europe 62 55 146 178
Southern Africa (1) 5 10 17
Total 74 113 196 339
Forest Products 12 68 76 212
Corporate and other 7 1 9 9
Total 93 182 281 560
forward-looking statements
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. Undue reliance should
not be placed on such statements because, by their nature, they are subject to
known and unknown risks and uncertainties and can be affected by other factors,
that could cause actual results and company plans and objectives to differ
materially from those expressed or implied in the forward-looking statements
(or from past results). Such risks, uncertainties and factors include, but are
not limited to, the impact of the global economic downturn, the risk that the
European Acquisition will not be integrated successfully or such integration
may be more difficult, time-consuming or costly than expected, expected revenue
synergies and cost savings from the acquisition may not be fully realized or
realized within the expected time frame, revenues following the acquisition may
be lower than expected, any anticipated benefits from the consolidation of the
European paper business may not be achieved, 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), adverse
changes in the markets for the group`s products, consequences of substantial
leverage, including as a result of adverse changes in credit markets that
affect our ability to raise capital when needed, changing regulatory
requirements, possible early termination of alternative fuel tax credits,
unanticipated production disruptions (including as a result of planned or
unexpected power outages), economic and political conditions in international
markets, the impact of investments, acquisitions and dispositions (including
related financing), any delays, unexpected costs or other problems experienced
with integrating acquisitions and achieving expected savings and synergies and
currency fluctuations. The company undertakes 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.
We have included in this announcement an estimate of total synergies from the
acquisition of M-real`s coated graphic paper business and the integration of
the acquired business into our existing business. The estimate of synergies
that we expect to achieve following the completion of the acquisition is based
on assumptions which in the view of our management were prepared on a
reasonable basis, reflect the best currently available estimates and judgments,
and present, to the best of our management`s knowledge and belief, the expected
course of action and the expected future financial impact on our performance
due to the acquisition. However, the assumptions about these expected synergies
are inherently uncertain and, though considered reasonable by management as of
the date of preparation, are subject to a wide variety of significant business,
economic and competitive risks and uncertainties that could cause actual
results to differ materially from those contained in this estimate of
synergies. There can be no assurance that we will be able to successfully
implement the strategic or operational initiatives that are intended, or
realise the estimated synergies. This synergy estimate is not a profit forecast
or a profit estimate and should not be treated as such or relied on by
shareholders or prospective investors to calculate the likely level of profits
or losses for Sappi for fiscal 2009 or beyond.
Group income statement
Reviewed Reviewed
Quarter Quarter
ended ended
June 2009 June 2008 %
Notes US$ million US$ million change
Sales 1,316 1,494 (12)
Cost of sales 1,272 1,428
Gross profit 44 66 (33)
Selling, general and
administrative expenses 90 95
Other operating income (31) -
Share of profit from
associates and joint ventures (8) (6)
Operating (loss) profit 3 (7) (23) -
Net finance costs 70 45
Net interest 44 43
Finance cost capitalised - (1)
Net foreign exchange (gains) losses (1) 2
Net fair value loss on
financial instruments 27 1
(Loss) profit before taxation (77) (68) -
Taxation (15) (5)
Current 3 7
Deferred (18) (12)
(Loss) profit for the period (62) (63) -
Basic (loss) earnings per
share (US cents) 1 (12) (17)
Weighted average number of
shares in issue (millions) 1 515.8 362.2
Diluted basic (loss) earnings
per share (US cents) 1 (12) (17)
Weighted average number
of shares on fully diluted
basis (millions) 1 517.9 366.0
Reviewed Reviewed
Nine months Nine months
ended ended
June 2009 June 2008 %
US$ million US$ million change
Sales 3,816 4,344 (12)
Cost of sales 3,510 3,782
Gross profit 306 562 (46)
Selling, general and
administrative expenses 273 294
Other operating income (17) (6)
Share of profit from
associates and joint ventures (6) (15)
Operating (loss) profit 56 289 (81)
Net finance costs 131 100
Net interest 116 106
Finance cost capitalised - (16)
Net foreign exchange
(gains) losses (12) (3)
Net fair value loss on
financial instruments 27 13
(Loss) profit before taxation (75) 189 -
Taxation (1) 55
Current 7 11
Deferred (8) 44
(Loss) profit for the period (74) 134 -
Basic (loss) earnings per
share (US cents) (16) 37
Weighted average number of
shares in issue (millions) 471.5 362.0
Diluted basic (loss) earnings
per share (US cents) (16) 37
Weighted average number
of shares on fully diluted
basis (millions) 473.7 365.5
Group balance sheet
Reviewed Reviewed
June 2009 Sept 2008
US$ million US$ million
ASSETS
Non-current assets 5,004 4,408
Property, plant and equipment 3,927 3,361
Plantations 702 631
Deferred taxation 38 41
Other non-current assets 337 375
Current assets 2,482 1,701
Inventories 831 725
Trade and other receivables 855 702
Cash and cash equivalents 796 274
Total assets 7,486 6,109
EQUITY AND LIABILITIES
Shareholders` equity
Ordinary shareholders` interest 2,049 1,605
Non-current liabilities 3,050 2,578
Interest-bearing borrowings 2,254 1,832
Deferred taxation 392 399
Other non-current liabilities 404 347
Current liabilities 2,387 1,926
Interest-bearing borrowings 1,293 821
Bank overdraft 19 26
Other current liabilities 1,017 1,025
Taxation payable 58 54
Total equity and liabilities 7,486 6,109
Number of shares in issue at balance sheet date
(millions) 515.8 229.2
Group cash flow statement
Reviewed Reviewed
Quarter Quarter
ended ended
June 2009 June 2008
US$ million US$ million
(Loss) profit for the period (62) (63)
Adjustment for:
Depreciation, fellings and amortisation 125 115
Taxation (15) (5)
Net finance costs 70 45
Post employment benefits (13) (12)
Other non-cash items (28) 76
Cash generated from operations 77 156
Movement in working capital 93 29
Net finance costs - (83)
Taxation paid (3) (40)
Dividends paid * - -
Cash retained from operating activities 167 62
Cash utilised in investing activities (61) (98)
Capital expenditure and other
non-current assets (59) (98)
Acquisition of M-real (2) -
106 (36)
Cash effects of financing activities (57) 56
Net movement in cash and
cash equivalents 49 20
Reviewed Reviewed
Nine months Nine months
ended ended
June 2009 June 2008
US$ million US$ million
(Loss) profit for the period (74) 134
Adjustment for:
Depreciation, fellings and amortisation 336 344
Taxation (1) 55
Net finance costs 131 100
Post employment benefits (32) (65)
Other non-cash items (89) (81)
Cash generated from operations 271 487
Movement in working capital 25 (134)
Net finance costs (54) (150)
Taxation paid (5) (56)
Dividends paid * (37) (73)
Cash retained from operating activities 200 74
Cash utilised in investing activities (726) (351)
Capital expenditure and other
non-current assets (138) (351)
Acquisition of M-real (588) -
(526) (277)
Cash effects of financing activities 979 161
Net movement in cash and
cash equivalents 453 (116)
* Dividend no 85: 16 US cents per share paid on 28 November 2008
Group statement of recognised income and expense
Reviewed Reviewed
Quarter Quarter
ended ended
June 2009 June 2008
US$ million US$ million
Exchange differences on translation of
foreign operations 243 50
Sundry other movements in equity 1 (1)
Net income (expense) recorded directly
in equity 244 49
(Loss) profit for the period (62) (63)
Total recognised profit (expense) for
the period 182 (14)
Reviewed Reviewed
Nine months Nine months
ended ended
June 2009 June 2008
US$ million US$ million
Exchange differences on translation of
foreign operations (44) (222)
Sundry other movements in equity 1 1
Net income (expense) recorded directly
in equity (43) (221)
(Loss) profit for the period (74) 134
Total recognised profit (expense) for
the period (117) (87)
Notes to the group results
1. Basis of preparation
The condensed financial statements have been prepared in accordance with
International Accounting Standard 34, Interim Financial Reporting. The
accounting policies and methods of computation used in the preparation of the
results are consistent, in all material respects, with those used in the annual
financial statements for September 2008 which are compliant with International
Financial Reporting Standards (IFRS) as issued by the International Accounting
Standards Board.
The preliminary results for the nine month period and quarter ended June 2009
have been reviewed in terms of the International Standard on Review Engagements
2410 by the group`s auditors, Deloitte & Touche. Their unmodified review report
is available for inspection at the company`s registered offices.
In November and December 2008, Sappi conducted a renounceable rights offer of
286,886,270 new ordinary shares of ZAR1.00 each to qualifying Sappi
shareholders recorded in the shareholders register at the close of business on
Friday 21 November 2008, at a subscription price of ZAR20.27 per rights offer
share in the ratio of 6 rights offer shares for every 5 Sappi shares held. The
rights offer was fully subscribed and the shareholders received their shares on
15 December 2008. The rights offer raised ZAR5,8 billion which was used to
partly finance the acquisition of the coated graphic paper business of M-real
and the related costs. In accordance with IAS 33, prior period basic, headline
and diluted earnings per share have been restated to take into account the
bonus element of the rights offer. The prior period weighted average number of
shares has been adjusted by a factor of 1.58 (the adjustment factor). Please
refer to Supplemental Information for a summary of this calculation.
2. Reconciliation of movement in shareholders` equity
Reviewed Reviewed
Nine months Nine months
ended ended
June 2009 June 2008
US$ million US$ million
Balance - beginning of period 1,605 1,816
Total recognised expense for the period (117) (87)
Dividends paid (37) (73)
Rights offer 575 -
Costs directly attributable to the rights offer (31) -
Issue of new shares to M-real 45 -
Transfers to participants of the share purchase
trust 2 6
Share based payment reserve 7 7
Balance - end of period 2,049 1,669
3. Operating (loss) profit
Reviewed Reviewed
Quarter Quarter
ended ended
June 2009 June 2008
US$ million US$ million
Included in operating (loss) profit are the
following non-cash items:
Depreciation and amortisation 106 94
Fair value adjustment on plantations
(included in cost of sales)
Changes in volume
Fellings 19 21
Growth (20) (20)
(1) 1
Plantation price fair value
adjustment 25 105
24 106
Included in other operating income
are the following:
Asset impairments 1 1
Profit on disposal of property,
plant and equipment - (1)
Restructuring provisions
raised (released) 2 -
Integration costs 3 -
Fuel tax credit (37) -
3. Operating (loss) profit
Reviewed Reviewed
Nine months Nine months
ended ended
June 2009 June 2008
US$ million US$ million
Included in operating (loss) profit are the
following non-cash items:
Depreciation and amortisation 286 283
Fair value adjustment on plantations
(included in cost of sales)
Changes in volume
Fellings 50 61
Growth (52) (55)
(2) 6
Plantation price fair value
adjustment (44) (12)
(46) (6)
Included in other operating income
are the following:
Asset impairments 6 3
Profit on disposal of property,
plant and equipment (1) (5)
Restructuring provisions
raised (released) 10 (3)
Integration costs 3 -
Fuel tax credit (37) -
Reviewed Reviewed
Quarter Quarter
ended ended
June 2009 June 2008
US$ million US$ million
4. Headline earnings per share *
Headline earnings per share (US cents) ** (12) (17)
Weighted average number of shares in
issue (millions) ** 515.8 362.2
Diluted headline earnings per
share (US cents) ** (12) (17)
Weighted average number of shares on
fully diluted basis (millions) ** 517.9 366.0
Calculation of Headline earnings *
(Loss) profit for the period (62) (63)
Asset impairments 1 1
Profit on disposal of property,
plant and equipment - (1)
Tax effect of above items - 1
Headline (loss) earnings (61) (62)
Reviewed Reviewed
Nine months Nine months
ended ended
June 2009 June 2008
US$ million US$ million
4. Headline earnings per share *
Headline earnings per share (US cents) ** (15) 37
Weighted average number of shares in
issue (millions) ** 471.5 362.0
Diluted headline earnings per
share (US cents) ** (15) 36
Weighted average number of shares on
fully diluted basis (millions) ** 473.7 365.5
Calculation of Headline earnings *
(Loss) profit for the period (74) 134
Asset impairments 6 3
Profit on disposal of property,
plant and equipment (1) (5)
Tax effect of above items - 1
Headline (loss) earnings (69) 133
* Headline earnings disclosure is required by the JSE Limited.
** Prior period headline earnings per share has been restated for the bonus
element of the rights offer in accordance with IAS 33.
Please refer to Supplemental Information for a summary of this
calculation.
Reviewed Reviewed
Quarter Quarter
ended ended
June 2009 June 2008
US$ million US$ million
5. Capital expenditure
Property, plant and equipment 54 103
Reviewed Reviewed
Nine months Nine months
ended ended
June 2009 June 2008
US$ million US$ million
5. Capital expenditure
Property, plant and equipment 147 377
June 2009 Sept 2008
US$ million US$ million
6. Capital commitments
Contracted 71 76
Approved but not contracted 157 130
228 206
June 2009 Sept 2008
US$ million US$ million
7. Contingent liabilities
Guarantees and suretyships 45 38
Other contingent liabilities 7 7
52 45
8. Material balance sheet movements
Acquisition of M-real`s coated graphic paper business
See note 9 for details of how the acquisition is recorded in the balance sheet.
Interest-bearing borrowings and cash and cash equivalents
Included in long term borrowings is the EUR220 million (US$309 million) vendor
loan note and the assumed interest-bearing debt both used to partly finance the
acquisition of M-real`s coated graphic paper business.
During the nine months ended June 2009, the group also drew down EUR200 million
(US$281 million) of its committed facilities and raised a further US$63 million
in long-term bank loans. All of this is currently held in cash.
9. Acquisition
On 31 December 2008, Sappi acquired M-real`s coated graphic paper business for
EUR750 million (US$1.1 billion). The transaction includes M-real`s coated
graphic paper business (excluding M-real`s South African business), including
brands and company knowledge, as well as four coated graphic mills.
The acquisition was financed through a combination of equity, assumed debt, the
cash proceeds from a rights offering and a vendor loan note.
The acquired business contributed revenues of US$522 million, a net operating
profit of US$8 million and a net loss of US$4 million to the group for the
period from acquisition to 28 June 2009.
Details of net assets acquired and goodwill are as follows:
EURO US$
Purchase consideration:
Cash consideration 400 563
Shares issued * 32 45
Vendor loan note 220 308
Adjustments to working capital (4) (6)
Gain on forward exchange contract covering purchase
consideration (24) (32)
Direct costs relating to the acquisition 23 32
Total purchase consideration 647 910
Provisional fair value of net identifiable assets acquired
(see below) 647 910
Provisional goodwill ** - -
The assets and liabilities arising from the acquisition are as follows:
EURO EURO US$ US$
Acquiree`s Provisional Acquiree`s Provisional
carrying fair carrying fair
amount value amount value
Property, plant
and equipment 634 531 892 747
Information
technology related
intangibles 2 2 3 3
Brand names - 18 - 25
Inventories 118 115 166 162
Trade receivables 200 193 281 272
Prepayments and
other debit balances 15 18 21 25
Cash and cash
equivalents 5 5 7 7
Trade payables (85) (85) (120) (120)
Pension liabilities (37) (40) (52) (56)
Borrowings (46) (42) (65) (59)
Provisions (4) (4) (6) (6)
Other payables
and accruals (60) (65) (84) (91)
Net deferred tax
(liabilities) assets (11) 1 (15) 1
Net identifiable
assets acquired 731 647 1,028 910
Outflow of cash to acquire business, net of cash acquired:
EURO US$
Cash consideration 400 563
Direct costs relating to acquisition 23 32
Cash and cash equivalents in subsidiary acquired (5) (7)
Net cash outflow on acquisition 418 588
The provisional values determined as at March 2009 have been adjusted as
follows to arrive at the provisional values as at June 2009
EURO US$
Provisional fair values **
March 2009 June 2009 March 2009 June 2009
Property, plant and
equipment 494 531 695 747
Information
technology related
intangibles 2 2 3 3
Brand names 18 18 25 25
Inventories 116 115 163 162
Trade receivables 200 193 281 272
Prepayments and other
debit balances 21 18 30 25
Cash and cash
equivalents 5 5 7 7
Trade payables (86) (85) (121) (120)
Pension liabilities (40) (40) (56) (56)
Borrowings (47) (42) (66) (59)
Provisions (4) (4) (6) (6)
Other payables and
accruals (64) (65) (89) (91)
Net deferred tax
(liabilities) assets 13 1 18 1
Net identifiable
assets acquired 628 647 884 910
EURO US$
Provisional goodwill
at March 2009 ** 27 38
Increase in fair
values of net
identifiable assets (19) (26)
Change in adjustments
to working capital (10) (14)
Increase in direct
costs relating to
acquisition 2 2
Provisional goodwill
at June 2009 ** 0 0
* 11,159,702 Sappi shares were issued to M-real as partial payment of the
acquisition price. The fair value of US$45 million (EUR32 million) was
determined using Sappi`s published market price at the date of exchange.
** The initial accounting for the business combination has been determined
provisionally as at the end of the third quarter ended June 2009 because the
group is still in the process of finalising the fair values of the identifiable
assets and liabilites of the acquired business of M-real. The changes in
provisional values from March 2009 to June 2009 are due to the group having
access to more information that enabled us to update our initial determination
of fair values and the purchase consideration.
Notes to the group results
Reviewed Reviewed
Quarter Quarter
ended ended
June 2009 June 2008 %
US$ million US$ million change
10. Regional information
Sales
Fine Paper -
North America 291 424 (31)
Europe 729 705 3
Southern Africa 78 95 (18)
Total 1,098 1,224 (10)
Forest Products -
Pulp and paper
operations 204 249 (18)
Forestry operations 14 21 (33)
Total 1,316 1,494 (12)
Operating profit
Fine Paper -
North America 24 25 (4)
Europe - 10 (100)
Southern Africa (5) 1 -
Total 19 36 (47)
Forest Products (26) (60) -
Corporate and other - 1 (100)
Total (7) (23) -
Net operating assets
Fine Paper -
North America 1,035 1,064 (3)
Europe 2,475 2,098 18
Southern Africa 205 124 65
Total 3,715 3,286 13
Forest Products 1,790 1,714 4
Corporate and other 72 27 167
Total 5,577 5,027 11
Reviewed Reviewed
Nine months Nine months
ended ended
June 2009 June 2008 %
US$ million US$ million change
10. Regional information
Sales
Fine Paper -
North America 955 1,231 (22)
Europe 2,027 2,040 (1)
Southern Africa 226 271 (17)
Total 3,208 3,542 (9)
Forest Products -
Pulp and paper
operations 567 747 (24)
Forestry operations 41 55 (25)
Total 3,816 4,344 (12)
Operating profit
Fine Paper -
North America (7) 62 -
Europe (8) 47 -
Southern Africa (1) 5 -
Total (16) 114 -
Forest Products 71 167 (57)
Corporate and other 1 8 100
Total 56 289 (81)
Net operating assets
Fine Paper -
North America 1,035 1,064 (3)
Europe 2,475 2,098 18
Southern Africa 205 124 65
Total 3,715 3,286 13
Forest Products 1,790 1,714 4
Corporate and other 72 27 167
Total 5,577 5,027 11
Supplemental Information (this information has not been reviewed)
general definitions
Average - averages are calculated as the sum of the opening and closing
balances for the relevant period divided by two
Fellings - the amount charged against the income statement representing the
standing value of the plantations harvested
NBSK - Northern Bleached Softwood Kraft pulp. One of the main varieties of
market pulp, mainly produced from spruce trees in Scandinavia, Canada and north
eastern USA. The NBSK is a benchmark widely used in the pulp and paper industry
for comparative purposes
SG&A - selling, general and administrative expenses
Non-GAAP measures
The group believes that it is useful to report certain non-GAAP measures for
the following reasons:
- these measures are used by the group for internal performance analysis;
- the presentation by the group`s reported business segments of these measures
facilitates comparability with other companies in our industry, although the
group`s measures may not be comparable with similarly titled profit measurements
reported by other companies; and
- it is useful in connection with discussion with the investment analyst
community and debt rating agencies.
These non-GAAP measures should not be considered in isolation or construed as a
substitute for GAAP measures in accordance with IFRS
Acquisition - the acquisition of M-real`s coated graphic paper business on 31
December 2008
Adjustment factor - This is calculated using the pre-announcement share price
divided by the theoretical ex-rights price (TERP). TERP is the ((Number of new
shares multiplied by the Subscription price) plus the (Number of shares held
multiplied by the Ex-dividend share price)) all divided by the (Number of new
shares plus the number of shares held prior to the rights offer)
Capital employed - shareholders` equity plus net debt
EBITDA excluding special items - earnings before interest (net finance costs),
taxation, depreciation, amortisation and special items
Headline earnings - as defined in circular 8/2007 issued by the South African
Institute of Chartered Accountants, separates from earnings all separately
identifiable re-measurements. It is not necessarily a measure of sustainable
earnings. It is a listing requirement of the JSE Limited to disclose headline
earnings per share
Net debt - current and non-current interest-bearing borrowings, and bank
overdraft (net of cash, cash equivalents and short-term deposits)
Net debt to total capitalisation - net debt divided by capital employed
Net operating assets - total assets (excluding deferred taxation and cash and
cash equivalents) less current liabilities (excluding interest-bearing
borrowings and bank overdraft)
Net assets - total assets less total liabilities
Net asset value per share - net assets divided by the number of shares in issue
at balance sheet date
ROCE - return on average capital employed. Operating profit excluding special
items divided by average capital employed
ROE - return on average equity. Profit for the period divided by average
shareholders` equity
RONOA - return on average net operating assets. Operating profit excluding
special items divided by average net operating assets
Special items - special items cover those items which management believe are
material by nature or amount to the operating results and require separate
disclosure. Such items would generally include profit or loss on disposal of
property, investments and businesses, asset impairments, restructuring charges,
non-recurring integration costs related to acquisitions, financial impacts of
natural disasters, non-cash gains or losses on the price fair value adjustment
of plantations and alternative fuel tax credits receivable in cash
The above financial measures are presented to assist our shareholders and the
investment community in interpreting our financial results.
These financial measures are regularly used and compared between companies in
our industry
Supplemental Information (this information has not been reviewed)
EBITDA excluding special items
Quarter Quarter
ended ended
June 2009 June 2008
US$ million US$ million
Reconciliation of (loss) profit for the period
to
EBITDA excluding special items (1)
(Loss) profit for the period (62) (63)
Net finance costs 70 45
Taxation (15) (5)
Special items - (gains) losses (6) 111
Operating (loss) profit excluding special items (13) 88
Depreciation and amortisation 106 94
EBITDA excluding special items (1) 93 182
Net debt (US$ million) (2)
Net debt to total capitalisation (%) (2)
Net asset value per share (US$) (2)
Nine months Nine months
ended ended
June 2009 June 2008
US$ million US$ million
Reconciliation of (loss) profit for the period
to
EBITDA excluding special items (1)
(Loss) profit for the period (74) 134
Net finance costs 131 100
Taxation (1) 55
Special items - (gains) losses (61) (12)
Operating (loss) profit excluding special items (5) 277
Depreciation and amortisation 286 283
EBITDA excluding special items (1) 281 560
June 2009 Sept 2008
US$ million US$ million
Net debt (US$ million) (2) 2,770 2,405
Net debt to total capitalisation (%) (2) 57.5 60.0
Net asset value per share (US$) (2) 3.97 7.00
(1) In connection with the U.S. Securities Exchange Commission ("SEC") rules
relating to "Conditions for Use of Non-GAAP Financial Measures", we have
reconciled EBITDA excluding special items to net profit rather than operating
profit. As a result our definition retains minority interest as part of EBITDA
excluding special items.
Operating profit excluding special items represents earnings before interest
(net finance costs), taxation and special items. Net finance costs includes:
gross interest paid; interest received; interest capitalised; net foreign
exchange gains; and net fair value adjustments on interest rate financial
instruments. See the group income statement for an explanation of the
computation of net finance costs. Special items cover those items which
management believe are material by nature or amount to the operating results
and require separate disclosure. Such items would generally include profit and
loss on disposal of property, investments and businesses, asset impairments,
restructuring charges, non-recurring integration costs related to acquisitions,
financial impacts of natural disasters, non-cash gains or losses on the price
fair value adjustment of plantations and alternative fuel tax credits
receivable in cash.
EBITDA excluding special items represents operating profit before depreciation,
amortisation and special items.
We use both operating profit excluding special items and EBITDA excluding
special items as internal measures of performance to benchmark and compare
performance, both between our own operations and as against other companies.
Operating profit excluding special items and EBITDA excluding special items are
measures used by the group, together with measures of performance under IFRS,
to compare the relative performance of operations in planning, budgeting and
reviewing the performances of various businesses. We believe they are useful
and commonly used measures of financial performance in addition to net profit,
operating profit and other profitability measures under IFRS because they
facilitate operating performance comparisons from period to period and company
to company. By eliminating potential differences in results of operations
between periods or companies caused by factors such as depreciation and
amortisation methods, historic cost and age of assets, financing and capital
structures and taxation positions or regimes, we believe both operating profit
excluding special items and EBITDA excluding special items can provide a useful
additional basis for comparing the current performance of the operations being
evaluated. For these reasons, we believe operating profit excluding special
items and EBITDA excluding special items and similar measures are regularly
used by the investment community as a means of comparison of companies in our
industry. Different companies and analysts may calculate operating profit
excluding special items and EBITDA excluding special items differently, so
making comparisons among companies on this basis should be done very carefully.
Operating profit excluding special items and EBITDA excluding special items are
not measures of performance under IFRS and should not be considered in
isolation or construed as a substitute for operating profit or net profit as
indicators of the company`s operations in accordance with IFRS.
(2) Refer to Supplemental Information for the definition of the
term.
Supplemental Information (this information has not been reviewed)
summary rand convenience translation
Quarter Quarter
ended ended %
June 2009 June 2008 change
Key figures: (ZAR million)
Sales 11,344 11,711 (3)
Operating (loss) profit (60) (180) -
Special items - (gains) losses * (52) 870 -
Operating (loss) profit excluding
special items (112) 690 -
EBITDA excluding special items * 802 1,427 (44)
Basic (loss) earnings per
share (SA cents) (103) (133) -
Net debt * 21,880 21,108 4
Key ratios: (%)
Operating (loss) profit to sales (0.5) (1.5)
Operating (loss) profit excluding
special items to sales (1.0) 5.9
Operating (loss) profit excluding
special items to Capital
Employed (ROCE) * (1.1) 7.9
EBITDA excluding special items
to sales 7.1 12.2
Return on average equity (ROE) (12.5) (14.7)
Net debt to total capitalisation * 57.5 61.5
Nine months Nine months
ended ended %
June 2009 June 2008 change
Key figures: (ZAR million)
Sales 35,949 31,814 13
Operating (loss) profit 528 2,117 (75)
Special items - (gains) losses * (575) (88) -
Operating (loss) profit excluding
special items (47) 2,029 -
EBITDA excluding special items * 2,647 4,101 (35)
Basic (loss) earnings per
share (SA cents) (151) 271 -
Net debt * 21,880 21,108 4
Key ratios: (%)
Operating (loss) profit to sales 1.5 6.7
Operating (loss) profit excluding
special items to sales (0.1) 6.4
Operating (loss) profit excluding
special items to Capital
Employed (ROCE) * (0.2) 8.7
EBITDA excluding special items
to sales 7.4 12.9
Return on average equity (ROE) (6.4) 10.2
Net debt to total capitalisation * 57.5 61.5
* Refer to Supplemental Information for the definition of the term.
The above financial results have been translated into ZAR from US Dollars as
follows:
- Assets and liabilities at rates of exchange ruling at period end; and
- Income, expenditure and cash flow items at average exchange rates.
exchange rates
June Mar Dec
2009 2009 2008
Exchange rates:
Period end rate: US$1 = ZAR 7.8990 9.5849 9.7148
Average rate for the Quarter: US$1 = ZAR 8.6197 9.8979 9.8584
Average rate for the YTD: US$1 = ZAR 9.4205 9.9015 9.8584
Period end rate: EUR 1 = US$ 1.4054 1.3301 1.4064
Average rate for the Quarter: EUR 1 = US$ 1.3651 1.3300 1.3471
Average rate for the YTD: EUR 1 = US$ 1.3432 1.3288 1.3471
Sept June
2008 2008
Exchange rates:
Period end rate: US$1 = ZAR 8.0751 7.9145
Average rate for the Quarter: US$1 = ZAR 7.8150 7.8385
Average rate for the YTD: US$1 = ZAR 7.4294 7.3236
Period end rate: EUR 1 = US$ 1.4615 1.5795
Average rate for the Quarter: EUR 1 = US$ 1.5228 1.5747
Average rate for the YTD: EUR 1 = US$ 1.5064 1.5071
The financial results of entities with reporting currencies other than the US
Dollar are translated into US Dollars as follows:
- Assets and liabilities at rates of exchange ruling at period end; and
- Income, expenditure and cash flow items at average exchange rates.
Other interested parties can obtain printed copies of this report from:
South Africa:
Computershare Investor
Services (Proprietary) Limited
70 Marshall Street
Johannesburg 2001
PO Box 61051
Marshalltown 2107
Tel +27 (0)11 370 5000
United States:
ADR Depositary:
The Bank of New York Mellon
Investor Relations
PO Box 11258
Church Street Station
New York, NY 10286-1258
Tel +1 610 382 7836
Channel Islands:
Capita Registrars
(Jersey) Limited
12 Castle Street
St Helier
Jersey
JE2 3RT
Tel +44 (0)208 639 3399
this report is available on the Sappi website www.sappi.com
www.sappi.com
Date: 30/07/2009 08:55:02 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
