2007 Annual Report - Sappi

Notes to the group annual financial statements continued
for the year ended September 2007
32. Related party transactions
Transactions between Sappi Limited company and its subsidiaries, which are related parties of the company, have been
eliminated on consolidation and are not disclosed in this note. Details of transactions between the group and other related
parties are disclosed below:
Sale of goods Purchases of goods Amounts owed Amounts owed
by related parties to related parties
US$ million 2007 2006 2007 2006 2007 2006 2007 2006
Joint Venture – Jiangxi Chenming
Paper Company Limited 3.8 2.3 2.2 9.0 – – 8.3 10.5
– Sapin SA – – 28.2 19.9 – – 2.1 0.9
– VOF Warmtekracht 41.4 35.7 30.5 26.1 – – – 0.1
– Umkomaas Lignin (Pty) Ltd 0.9 0.6 – – 1.6 0.9 – –
– Papierholz Austria – – 90.4 55.7 – – 3.8 3.6
46.1 38.6 151.3 110.7 1.6 0.9 14.2 15.1
Joint venture Timber IV: A full description of the transaction concerning Timber IV is discussed in the Equity Note 14.
Sales of goods and purchases to and from related parties were made on an arm’s length basis. The amounts outstanding
at balance sheet date are unsecured and will be settled in cash. Guarantees given by the group are disclosed in note 27. No
expense has been recognised in the period for bad or doubtful debts in respect of the amounts owed by related parties.
Shareholders
The company’s shares are widely held by shareholders across the world. The principal shareholders of the company are
disclosed in this annual report on page 50.
Directors
Details relating to executive and non-executive directors’ emoluments, interests and participation in the Sappi Limited Share
Incentive Trust are disclosed in notes 37 to 39.
Interest of directors in contracts
None of the directors have a material interest in any transaction with the company or any of its subsidiaries, other than those
on a normal employment basis.
Key management personnel
Compensation for key management was as follows:
Total Total Total Total
excluding excluding including including
directors directors directors directors
US$ million 2007 2006 2007 2006
Short term benefits 2.5 2.0 4.1 7.2
Post-employment benefits 0.3 0.6 0.8 3.3
Other long term benefits – – – –
Share- based payments 0.2 0.1 0.2 0.5
3.0 2.7 5.1 11.0
The number of key management personnel included above for 2007 was twelve (2006: nine).
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