SAPPI LTD (SAP) 6-K

COMBINED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED 31 DECEMBER 2007, 2006 AND 2005
(Amounts in thousands of Euros, unless otherwise stated)
2007 2006 2005
Result for period 66,453 (20,205) (226,610)
Adjustments to the results, total
(a) (36,786) 74,342 301,856
Interest received 1,143 1,666 1,569
Interest paid (8,681) (13,479) (12,356)
Dividends received 10 6,970 61
Other financial items, net (4,117) (3,315) 6,389
Income taxes (paid) received (154) 402 414
Corporate overhead costs
funded by Parent 8,600 8,000 7,300
Income taxes funded by Parent 2,154 7,725 4,171
Other Parent funding items - - (1,000)
Changes in working capital (b) 42,523 15,755 (20,269)
Net cash flow arising from
operating activities 71,145 77,861 61,525
Capital expenditure (45,228) (53,742) (38,765)
Proceeds from sale of property,
plant and equipment 159 43 130
Increase in long-term
receivables (3,247) - -
Net cash flow used in investing
activities (48,316) (53,699) (38,635)
Financing with Parent, net (c) (34,891) - (33,075)
Repayment of borrowings with
3rd parties (11,224) (12,611) (13,844)
Net cash flow used in financing
activities (46,115) (12,611) (46,919)
Net change in cash and cash
equivalents (23,286) 11,551 (24,029)
Effect of exchange rate changes
on cash (199) (437) (58)
Increase in cash and cash
equivalents (23,485) 11,114 (24,087)
Cash at beginning of year 51,769 40,655 64,742
Cash at end of year 28,284 51,769 40,655
Notes to the combined statements of cash flow
(a) Adjustments to the results
Depreciation and
amortisation 95,662 59,021 77,617
Impairment charges and
reversal of impairment
charges (151,000) 20,000 251,000
Taxes 10,586 (10,794) (31,960)
Finance costs, net 11,644 8,156 4,337
Provisions (2,164) 285 1,631
Other adjustments (1,514) (2,326) (769)
(36,786) 74,342 301,856
(b) Changes in working capital
Inventories 10,389 18,264 (6,624)
Current receivables 5,376 (8,915) (25,521)
Current non-interest bearing
liabilities 26,758 6,406 11,876
42,523 15,755 (20,269)
Non-cash transactions
(c) In 2007 the Parent converted EUR 166,819 of related party interest-bearing liabilities to invested equity (see note 21).
The accompanying notes are an integral part of the combined financial statements.
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