2007 Annual Report - Sappi

More documents

Recommendations

Info

Notes to the group annual financial statements continued for the year ended September 2007 US$ million 2007 2006 28. Post-employment benefits – pensions continued The discount and salary increase rates can have a significant effect on the amounts reported. To illustrate, increasing the discount rate by 1% would decrease the projected benefit obligation by US$175 million and increasing the salary increase rate by 1% would increase the projected benefit obligation by US$35 million. Decreasing the discount rate by 1% would increase the projected benefit obligation by US$213 million and decreasing the salary increase rate by 1% would decrease the projected benefit obligation by US$43 million. Pension plan liability is presented on the balance sheet as follows: Pension liability (refer note 22) 144 246 Pension asset (refer note 15) (118) (18) Pension liability (included in other payables) 35 39 61 267 In determining the expected long term return assumption on plan assets, Sappi considers the relative weighting of plan assets to various asset classes, the historical performance of total plan assets and individual asset classes and economic and other indicators of future performance. Peer data and historical returns are reviewed to check for reasonableness and appropriateness. In addition, Sappi may consult with and consider the opinions of financial and other professionals in developing appropriate return benchmarks. Plan fiduciaries set investment policies and strategies for the local trusts. Long-term strategic investment objectives include preserving the funded status of the trust and balancing risk and return while keeping in mind the regulatory environment in each region. The plan fiduciaries oversee the investment allocation process, which includes selecting investment managers, setting long-term strategic targets and rebalancing assets periodically. Target versus actual weighted average allocations (by region) are shown below: 2007 2006 Southern Europe North Southern Europe North Africa (incl UK) America Africa (incl UK) America Target asset allocation by region % % % % % % Equity 40.0 20.0-25.0 48.0 40-55 20.0-35.0 48.0 Debt Securities 44.0 50.0-70.0 22.0 15-30 60.0-75.0 22.0 Real Estate – 0.0-5.0 – – 0.0-5.0 – Other 16.0 10.0-20.0 30.0 5-20 0.0-5.0 30.0 Actual asset allocation by region Equity 55.0 22.8-24.0 38.2 49.0 19.0-35.0 47.6 Debt Securities 30.0 49.0-67.7 23.2 33.0 59.0-77.0 23.5 Real Estate – 0.0-7.0 – – 0.0-6.0 – Other 15.0 9.5-20.0 38.6 18.0 0.0-4.0 28.9 132 sappi limited | 07 | annual report
Europe US$ million Southern Africa (incl UK) United States Total 28. Post-employment benefits – pensions continued The expected company contributions for 2008 are US$73 million. Expected benefit payments for pension benefits are as follows: Payable in the year ending September: 2008 11 43 22 76 2009 11 43 22 76 2010 11 45 22 78 2011 12 45 23 80 2012 12 46 24 82 Years 2013 – 2017 69 253 141 463 Aggregate total of present value of the defined benefit obligation, fair value of assets and the surplus or deficit in the defined benefit plans for the current annual period and for the previous four annual periods: The deficit ignores any unrecognised adjustments. US$ million 2007 2006 2005 2004 2003 Defined benefit obligations 1,607 1,513 1,589 1,420 1,274 Fair value of assets 1,545 1,285 1,222 1,081 941 Deficit (62) (228) (367) (339) (333) Aggregate experience adjustments arising on plan liabilities and plan assets, shown in amounts US$ million 2007 2006 2005 2004 2003 Plan liabilities gains (losses) 60 73 (141) (35) (77) Plan assets gains (losses) 44 27 82 26 (20) Net gains (losses) 104 100 (59) (9) (97) sappi limited | 07 | annual report 133
Page 1 and 2:
annual report 2007
Page 3 and 4:
Our business Sappi is a global pape
Page 5 and 6:
Our top risks These risks are furth
Page 7 and 8:
Financial targets and performance*
Page 9 and 10:
Our Charter commitments Examples of
Page 11 and 12:
Business structure Johannesburg Asi
Page 13 and 14:
Our brands and products Coated pape
Page 15 and 16:
Non-executive directors continued D
Page 17 and 18:
Divisional and corporate management
Page 19 and 20:
In Europe we face major challenges.
Page 21 and 22:
We expect to continue our improving
Page 23 and 24:
Q: How will you improve delivery on
Page 25 and 26:
Overview Description The main produ
Page 27 and 28:
A major feature of the year has bee
Page 29 and 30:
In the year ahead, we will continue
Page 31 and 32:
Overview The Forest Products busine
Page 33 and 34:
Value added statement for the year
Page 35 and 36:
Sappi has a global insurance struct
Page 37 and 38:
Sales Sales volume (in metric tons)
Page 39 and 40:
Divisional contributions to operati
Page 41 and 42:
The impact of these changes on oper
Page 43 and 44:
Cash flow analysis In the table bel
Page 45 and 46:
project and again aim to fund this,
Page 47 and 48:
In 2006, both Standard & Poor’s (
Page 49 and 50:
y certain of the individual direct
Page 51 and 52:
Not restated for IFRS* September Se
Page 53 and 54:
September September September Septe
Page 55 and 56:
Element/Best practice Sappi applica
Page 57 and 58:
The board of directors The basis fo
Page 59 and 60:
Our compensation philosophy is base
Page 61 and 62:
stakeholders with whom they interac
Page 63 and 64:
Auditor’s report Independent audi
Page 65 and 66:
Directors’ report for the year en
Page 67 and 68:
Directors and secretaries The names
Page 69 and 70:
Group balance sheet at September 20
Page 71 and 72:
Group statement of recognised incom
Page 73 and 74:
Group balance sheet in Rands conven
Page 75 and 76:
Notes to the group annual financial
Page 77 and 78:
Fair value hedge A hedge of the exp
Page 79 and 80:
(ii) Associates The results and ass
Page 81 and 82:
• it transfers (or it assumes an
Page 83 and 84: 2.3.8 Inventories Inventories are a
Page 85 and 86: 2.3.13 Plantations Plantations are
Page 87 and 88: the year that are declared after th
Page 89 and 90: Owner-occupied investment propertie
Page 91 and 92: into account, unadjusted current ma
Page 93 and 94: The group is required to record pro
Page 95 and 96: second where a share-based payment
Page 97 and 98: 3. Segment information continued Sa
Page 99 and 100: US$ million 2007 2006 4.1 Operating
Page 101 and 102: US$ million 2007 2006 6. Taxation c
Page 103 and 104: 7. Earnings per share and headline
Page 105 and 106: US$ million 2007 2006 10. Property,
Page 107 and 108: 2007 2006 US$ million Assets Liabil
Page 109 and 110: US$ million 2007 2006 12. Deferred
Page 111 and 112: 14. Joint ventures and associates c
Page 113 and 114: US$ million 2007 2006 17. Trade and
Page 115 and 116: 17. Trade and other receivables con
Page 117 and 118: 19. Reconciliation of changes in eq
Page 119 and 120: US$ million 2007 2006 21. Interest-
Page 121 and 122: 21. Interest-bearing borrowings con
Page 127 and 128: 23. Provisions continued September
Page 129 and 130: US$ million 2007 2006 24. Notes to
Page 131 and 132: US$ million 2007 2006 27. Contingen
Page 133: 28. Post-employment benefits - pens
Page 137 and 138: 29. Post-employment benefits other
Page 139 and 140: 30. Share-based payment The Sappi L
Page 141 and 142: 30. Share-based payment continued T
Page 143 and 144: 30. Share-based payment continued T
Page 145 and 146: 31. Financial Instruments The group
Page 147 and 148: 31. Financial Instruments continued
Page 161 and 162: 33. Events after Balance Sheet date
Page 163 and 164: 35. Summary of differences between
Page 171 and 172: 36. New United States accounting st
Page 173 and 174: 37. Directors’ remuneration conti
Page 175 and 176: 38. Directors’ interests The foll
Page 177 and 178: M R Thompson (1) E van As Total 200
Page 179 and 180: M R Thompson (1) E van As Total 200
Page 181 and 182: Company auditor’s report Independ
Page 183 and 184: Condensed company balance sheet at
Page 185 and 186:
Notes to the condensed company fina
Page 187 and 188:
Investments at September 2007 Share
Page 189 and 190:
Non-GAAP financial definitions The
Page 191 and 192:
- the general authority shall only
Page 193 and 194:
corporate governance requirements.
Page 195 and 196:
Franklin Abraham Sonn (68) BA Hons,
Page 197 and 198:
Proxy form for annual general meeti
Page 199 and 200:
Forward looking statements Certain
show all

2007 Annual Report - Sappi

Create successful ePaper yourself

Delete template?

Save as template?