SAPPI LTD (SAP) 6-K

INTERIM CONDENSED COMBINED CASH FLOW STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE, 2008 and 2007
(Amounts in thousands of Euros, unless otherwise stated)
2008 2007
Result for period (37,841) (10,777)
Adjustments to results, total (a) 39,007 27,923
Interest received 426 543
Interest paid (3,771) (4,811)
Dividends received 31 10
Other financial items, net (2,312) 226
Income taxes paid/received (55) (563)
Corporate overhead costs funded by Parent 4,000 4,800
Income taxes funded by Parent 215 339
Changes in working capital (b) (26,191) 12,300
Net cash flow (used in) / arising from operating activities (26,491) 29,990
Capital expenditure (14,623) (11,882)
Increase in long-term receivables (35)
Net cash flow used in investing activities (14,658) (11,882)
Financing with Parent, net (c) 20,793 (43,910)
Repayment of interest bearing liabilities (5,311) (5,486)
Net cash flow arising from / (used in) financing activities 15,482 (49,396)
Net change in cash and cash equivalents (25,667) (31,288)
Effect of exchange rate changes on cash 429 (200)
Decrease in cash and cash equivalents (25,238) (31,488)
Cash at beginning of year 28,284 51,769
Cash at end of year 3,046 20,281
Notes to the combined statements of cash flow
(a) Adjustments to the results
Depreciation and amortisation 37,811 27,299
Taxes (6,050) (2,952)
Finance costs, net 5,626 4,032
Provisions (209) 1,994
Other adjustments 1,829 (2,450)
39,007 27,923
(b) Changes in working capital
Inventories (6,579) 920
Current receivables (7,189) 1,305
Current non-interest bearing liabilities (12,423) 10,075
(26,191) 12,300
Non-cash transactions
(c) In 2007 the Parent converted EUR 166,819 of related party interest-bearing liabilities to invested equity.
The accompanying notes are an integral part of the interim condensed combined financial information.
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