Our performance in 2009 - Sappi

2009 annual report
US$ million 2009 2008 2007
4.1 Operating profit continued
Fair value adjustment on plantations (1)
Changes in volumes
Fellings 69 80 70
Growth (73) (70) (76)
(4) 10 (6)
Plantation price fair value adjustment 67 (120) (54)
63 (110) (60)
Silviculture costs (included within cost of sales) 50 50 41
Leasing charges for premises 16 16 16
Leasing charges for plant and equipment 15 32 43
Remuneration paid other than to employees of the company
in respect of: 27 33 31
– technical services 11 15 15
– administration services 16 18 16
Auditors’ remuneration: 8 10 7
– audit and related services 6 6 5
– tax planning and tax advice 1 1 2
– acquisition and refinancing related services* 1 3 –
Government grants towards environmental expenditure (2) (1) –
Research and development costs 31 34 34
Amortisation 2 – 1
Cost on derecognition of loans and receivables** 16 22 15
Directors’ remuneration
– executive directors – salaries and benefits 2 2 3
– non-executive directors – fees 1 1 1
4.2 Employment costs
Wages and salaries 936 921 816
Defined-contribution plan expense (refer to note 27) 33 23 18
Pension costs (refer to note 27) 21 9 20
Post-employment benefits other than pensions expense (refer to note 28) 10 14 13
Share-based payment expense 9 10 5
Other 37 40 53
4.3 Other operating expenses (income)
Included in other operating expenses are the following:
1,046 1,017 925
Asset impairments (refer to note 9) 79 119 2
Profit on sale and write-off of property, plant and equipment (1) (5) (24)
Restructuring provisions raised (released) and closure costs 34 41 (11)
Fuel tax credit (87) – –
* These costs have been capitalised.
** The cost on derecognition of trade receivables relates to the derecognition of trade receivables related to the securitisation programme in South Africa and to
the sale of letters of credit in Hong Kong.
121
financials