2008 Annual report - Sappi

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Our reporting strategy As a leading global business, Sappi subscribes to best international practice in its reporting to stakeholders. We aim to provide a comprehensible, balanced, complete and comparable view of our business through various structured reporting mechanisms, to assist stakeholders to take informed decisions about their interactions with the group. For a complete view of Sappi’s business strategy, performance in the year ending September 2008 and longer term prospects, stakeholders are directed to the following sources of company information: • Quarterly results announcements and analyst presentations • Annual Report and accounts, which are prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB) • Form 20-F, prepared in accordance with the US Securities and Exchange Commission (SEC) regulations • Sustainable Development Report, which will be published on the group website (www.sappi.com) at the same time as the Annual Report is released, with a printed version to be available thereafter (on request from the Group Head Corporate Affairs – contact details on page 195) • Group website – www.sappi.com Sappi Limited is listed on the following stock exchanges and is subject to their listing requirements: • JSE Limited, South Africa (1) • New York Stock Exchange, USA (2) • London Stock Exchange, UK (2) (1) Primary listing. (2) Secondary listings. Exchange rates 2008 2007 2006 Year Closing Year Closing Year Closing average rate average rate average rate Rand (ZAR)/ US Dollar (US$) 7.4294 8.0751 7.1741 6.8713 6.6039 7.7738 US Dollar (US$)/ Euro (EUR)(3) 1.5064 1.4615 1.3336 1.4272 1.2315 1.2672 US Dollar (US$)/ Pound (GBP)(£) 1.9804 1.8448 1.9715 2.0471 1.7985 1.8723 Annual report printed on: Magno Satin 250g/m 2 (cover), Magno Satin 150g/m 2 (pages 1 to 72) and Triple Green Print Silk 115g/m 2 (pages 73 to 200), produced by Sappi.
sappi Our report in overview In producing this report we have been mindful of the information needs of different stakeholders, from repeat readers with specific requirements such as easy comparability and navigation, to new readers requiring broader context to Sappi’s business and strategy. 02 03 04 06 Our business Provides a quick overview of the business, including a high-level description, and key facts (including non-financial details). Our performance Gives a comprehensive overview of our performance against the prior year, including key ratios and highlights for the year. Our performance against targets Provides five-year trends in key financials and sets out the group’s performance against its stated financial targets. Our sustainability performance Sets out our stated commitment to sustainable development and gives details of our non-financial performance in each area of our sustainable development charter. 10 12 16 Our operations and business structure Indicates the global footprint of our operations and our business structure, including divisional and geographic breakdowns of assets, sales and ownership. Our products Describes the wide range of end uses and lists our brands within each of our main product categories. Our strategy Outlines management’s new strategic emphasis and indicates the progress made in 2008 against our strategic objectives, and sets out our objectives for the year ahead. 18 Our leadership Provides biographies for the non-executive and executive members of our board of directors, as well as senior management in each of our operating divisions. 22 Letter to shareholders From the chairman and chief executive officer; reviews the group’s performance and strategic developments in the year, and provides prospects for the year ahead. 26 28 Interview with Ralph Boëttger The chief executive officer’s views on relevant issues including plans for the European business, the M-real transaction, cost pressures and current management priorities. Review of operations Sappi Fine Paper 34 Review of operations Sappi Forest Products 32 Acquisition of M-real Provides additional information on the transaction, including mills and brands to be acquired, customers, distribution agreements and rationale for the transaction. 39 Value added statement 40 Risk management 43 Chief financial officer’s report 58 60 Five-year review Sets out key financials from the income statement, balance sheet and cash flow statement, as well as profitability, efficiency and liquidity ratios, and exchange rates, over a five-year period. Share statistics Provides relevant statistics including number of shareholders, number of shares in issue, number and value of shares traded, price per share, earnings and dividend yields, PE ratio and total market capitalisation. 62 Corporate governance 70 Compensation report 72 188 191 Annual financial statements Glossary Notice to shareholders 197 Proxy form for annual general meeting // 2008 Annual report 1
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Five year review Not restated for I
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Share statistics at September 2008
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Corporate governance We are committ
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Compensation report Compensation co
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Annual financial statements for the
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Directors’ approval The directors
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Group income statement for the year
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Condensed Sappi Limited company inc
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Notes to the condensed Sappi Limite
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Glossary General definitions bleach
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Glossary // continued Non-GAAP fina
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Notice to shareholders // continued
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Notice to shareholders // continued
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Shareholder’s diary Annual genera
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Notes to proxy The form of proxy mu
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Notes 1. To be effective, this form
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Notes 1. To be effective, this form
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www.sappi.com
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2008 Annual report - Sappi

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